SF 2171

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; making changes to health and human services
programs; modifying health policy; changing licensing provisions; altering
provisions for mental and chemical health; modifying child care provisions;
amending children and family services provisions; changing continuing
care provisions; amending MinnesotaCare; adjusting child care assistance
eligibility; establishing family stabilization services; enacting federal compliance
requirements; expanding medical assistance coverage; providing rate increases
for certain providers; modifying fees; appropriating money for human services,
health, veterans nursing homes boards, the Emergency Medical Services
Regulatory Board; health care boards, the Council on Disability, the ombudsman
for mental health and developmental disabilities, and the ombudsman for
families; requiring reports; amending Minnesota Statutes 2006, sections
16A.724, subdivision 2, by adding subdivisions; 47.58, subdivision 8; 62E.02,
subdivision 7; 62J.07, subdivisions 1, 3; 62J.495; 62J.692, subdivisions 1, 4, 5, 8;
62J.82; 62L.02, subdivision 11; 62Q.165, subdivisions 1, 2; 62Q.80, subdivisions
3, 4, 13, 14, by adding a subdivision; 69.021, subdivision 11; 103I.101,
subdivision 6; 103I.208, subdivisions 1, 2; 103I.235, subdivision 1; 119B.011,
by adding a subdivision; 119B.035, subdivision 1; 119B.05, subdivision 1;
119B.09, subdivision 1; 119B.12, by adding a subdivision; 119B.13, subdivisions
1, 7; 144.123; 144.125, subdivisions 1, 2; 144.3345; 144D.03, subdivision
1; 148.5194, by adding a subdivision; 148.6445, subdivisions 1, 2; 148C.11,
subdivision 1; 149A.52, subdivision 3; 149A.97, subdivision 7; 153A.14,
subdivision 4a; 153A.17; 169A.70, subdivision 4; 245.465, by adding a
subdivision; 245.4874; 245.771, by adding a subdivision; 245.98, subdivision
2; 245A.035; 245A.10, subdivision 2; 245A.16, subdivisions 1, 3; 245C.02, by
adding a subdivision; 245C.04, subdivision 1; 245C.05, subdivisions 1, 4, 5,
7, by adding a subdivision; 245C.08, subdivisions 1, 2; 245C.10, by adding
a subdivision; 245C.11, subdivisions 1, 2; 245C.12; 245C.16, subdivision 1;
245C.17, by adding a subdivision; 245C.21, by adding a subdivision; 245C.23,
subdivision 2; 246.54, subdivisions 1, 2; 252.27, subdivision 2a; 252.32,
subdivision 3; 253B.185, by adding a subdivision; 254B.02, subdivision 3;
256.01, subdivision 2b, by adding subdivisions; 256.482, subdivisions 1, 8;
256.969, subdivisions 3a, 9, 27, by adding a subdivision; 256.975, subdivision 7;
256B.056, subdivision 10; 256B.0621, subdivision 11; 256B.0622, subdivision
2; 256B.0623, subdivision 5; 256B.0625, subdivisions 17, 18a, 20, 30, by adding
subdivisions; 256B.0631, subdivisions 1, 3; 256B.0911, subdivisions 1a, 3a,
3b, by adding a subdivision; 256B.0913, by adding a subdivision; 256B.0915,
by adding a subdivision; 256B.0943, subdivision 8; 256B.0945, subdivision
4; 256B.095; 256B.0951, subdivision 1; 256B.15, by adding a subdivision;
256B.199; 256B.431, subdivisions 2e, 41; 256B.434, by adding a subdivision;
256B.437, by adding a subdivision; 256B.441, subdivisions 1, 2, 5, 6, 10, 11,
13, 14, 17, 20, 24, 30, 31, 34, 38, 46, by adding subdivisions; 256B.5012, by
adding a subdivision; 256B.69, subdivisions 2, 4, 5g, 5h; 256B.75; 256B.76;
256B.763; 256D.03, subdivisions 3, 4; 256I.04, subdivision 3; 256I.05, by
adding subdivisions; 256J.01, by adding a subdivision; 256J.02, by adding a
subdivision; 256J.021; 256J.08, subdivision 65; 256J.20, subdivision 3; 256J.32,
subdivision 6; 256J.425, subdivisions 3, 4; 256J.49, subdivision 13; 256J.521,
subdivisions 1, 2; 256J.53, subdivision 2; 256J.55, subdivision 1; 256J.626,
subdivisions 1, 2, 3, 4, 5, 6; 256L.01, subdivisions 1, 4; 256L.03, subdivisions
1, 3, 5; 256L.035; 256L.04, subdivisions 1a, 7, 10; 256L.05, subdivisions 1,
1b, 2, 3a; 256L.07, subdivisions 1, 2, 3, 6; 256L.09, subdivision 4; 256L.11,
subdivision 7; 256L.12, subdivision 9a; 256L.15, subdivisions 1, 2, 4; 256L.17,
subdivisions 2, 3, 7; 259.20, subdivision 2; 259.29, subdivision 1; 259.41;
259.53, subdivision 2; 259.57, subdivision 2; 259.67, subdivision 4; 260C.209;
260C.212, subdivision 2; 462A.05, by adding a subdivision; 518A.56, by adding
a subdivision; 609.115, subdivisions 8, 9; Laws 2005, chapter 98, article 3,
section 25; Laws 2005, First Special Session chapter 4, article 9, section 3,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapters
16C; 144; 145; 149A; 245; 245C; 252; 254A; 256; 256B; 256C; 256J; 256L;
repealing Minnesota Statutes 2006, sections 62A.301; 62J.692, subdivision
10; 256B.0631, subdivision 4; 256B.441, subdivisions 12, 16, 21, 26, 28, 42,
45; 256J.24, subdivision 6; 256J.29; 256J.37, subdivisions 3a, 3b; 256J.626,
subdivisions 7, 9; 256L.035; 256L.07, subdivision 2a; Laws 2004, chapter 288,
article 6, section 22; Minnesota Rules, parts 4610.2800; 9585.0030.

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

ARTICLE 1

CHILD CARE

Section 1.

Minnesota Statutes 2006, section 119B.035, subdivision 1, is amended to
read:

Subdivision 1.

Establishment.

A family in which a parent provides care for the
family's infant child may receive a subsidy in lieu of assistance if the family is eligible for
or is receiving assistance under the basic sliding fee program. An eligible family must
meet the eligibility factors under section 119B.09, except as provided in subdivision 4,
and the requirements of this section. Subject to federal match and maintenance of effort
requirements for the child care and development fund, new text begin and up to available appropriations,
new text end the commissioner shall deleted text begin establish a pool of up to three percent of the annual state
appropriation for the basic sliding fee program to deleted text end provide assistance under the at-home
infant child care program and for administrative costs associated with the program. At
the end of a fiscal year, the commissioner may carry forward any unspent funds under
this section to the next fiscal year within the same biennium for assistance under the
basic sliding fee program.

Sec. 2.

Minnesota Statutes 2006, section 119B.09, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin General deleted text end Eligibility requirements for deleted text begin all applicants for deleted text end child
care assistance.

(a) Child care services must be available to families who need child
care to find or keep employment or to obtain the training or education necessary to find
employment and who:

(1) have household income less than or equal to 250 percent of the federal poverty
guidelines, adjusted for family size, and meet the requirements of section 119B.05;
deleted text begin receive MFIP assistance; and are participating in employment and training services under
chapter 256J or 256K; or
deleted text end

(2) have household income less than or equal to 175 percent of the federal poverty
guidelines, adjusted for family size, at program entry and less than 250 percent of the
federal poverty guidelines, adjusted for family size, at program exit deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) have household income less than or equal to 250 percent of the federal poverty
guidelines, adjusted for family size, and were a family whose child care assistance was
terminated due to insufficient funds under Minnesota Rules, part 3400.0183.
new text end

(b) Child care services must be made available as in-kind services.

(c) All applicants for child care assistance and families currently receiving child care
assistance must be assisted and required to cooperate in establishment of paternity and
enforcement of child support obligations for all children in the family as a condition
of program eligibility. For purposes of this section, a family is considered to meet the
requirement for cooperation when the family complies with the requirements of section
256.741.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 119B.12, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Co-payment fee for families with annual incomes that exceed the
federal poverty level. new text end

new text begin The monthly family co-payment fee for families with annual
incomes greater than the federal poverty level, adjusted for family size, is determined
as follows.
new text end

new text begin (a) The family's annual gross income is converted into a percentage of state median
income (SMI) for a family of four, adjusted for family size, by dividing the family's annual
gross income by 100 percent of the SMI for a family of four, adjusted for family size. The
percentage must be carried out to the nearest 100th of a percent.
new text end

new text begin (b) If the family's annual gross income is less than or equal to 75 percent of the
SMI for a family of four, adjusted for family size, the family's monthly co-payment fee
is the fixed percentage established for the family's income range in clauses (1) to (60),
multiplied by the highest possible income within that income range, divided by 12, and
rounded to the nearest whole dollar.
new text end

new text begin (1) less than 35.01 percent of SMI is 2.20%;
new text end

new text begin (2) 35.01 to 42.00 percent of SMI is 2.70%;
new text end

new text begin (3) 42.01 to 43.00 percent of SMI is 3.75%;
new text end

new text begin (4) 43.01 to 44.00 percent of SMI is 4.00%;
new text end

new text begin (5) 44.01 to 45.00 percent of SMI is 4.25%;
new text end

new text begin (6) 45.01 to 46.00 percent of SMI is 4.50%;
new text end

new text begin (7) 46.01 to 47.00 percent of SMI is 4.75%;
new text end

new text begin (8) 47.01 to 48.00 percent of SMI is 5.00%;
new text end

new text begin (9) 48.01 to 49.00 percent of SMI is 5.25%;
new text end

new text begin (10) 49.01 to 50.00 percent of SMI is 5.50%;
new text end

new text begin (11) 50.01 to 50.50 percent of SMI is 5.75%;
new text end

new text begin (12) 50.51 to 51.00 percent of SMI is 6.00%;
new text end

new text begin (13) 51.01 to 51.50 percent of SMI is 6.25%;
new text end

new text begin (14) 51.51 to 52.00 percent of SMI is 6.50%;
new text end

new text begin (15) 52.01 to 52.50 percent of SMI is 6.75%;
new text end

new text begin (16) 52.51 to 53.00 percent of SMI is 7.00%;
new text end

new text begin (17) 53.01 to 53.50 percent of SMI is 7.25%;
new text end

new text begin (18) 53.51 to 54.00 percent of SMI is 7.50%;
new text end

new text begin (19) 54.01 to 54.50 percent of SMI is 7.75%;
new text end

new text begin (20) 54.51 to 55.00 percent of SMI is 8.00%;
new text end

new text begin (21) 55.01 to 55.50 percent of SMI is 8.30%;
new text end

new text begin (22) 55.51 to 56.00 percent of SMI is 8.60%;
new text end

new text begin (23) 56.01 to 56.50 percent of SMI is 8.90%;
new text end

new text begin (24) 56.51 to 57.00 percent of SMI is 9.20%;
new text end

new text begin (25) 57.01 to 57.50 percent of SMI is 9.50%;
new text end

new text begin (26) 57.51 to 58.00 percent of SMI is 9.80%;
new text end

new text begin (27) 58.01 to 58.50 percent of SMI is 10.10%;
new text end

new text begin (28) 58.51 to 59.00 percent of SMI is 10.40%;
new text end

new text begin (29) 59.01 to 59.50 percent of SMI is 10.70%;
new text end

new text begin (30) 59.51 to 60.00 percent of SMI is 11.00%;
new text end

new text begin (31) 60.01 to 60.50 percent of SMI is 11.30%;
new text end

new text begin (32) 60.51 to 61.00 percent of SMI is 11.60%;
new text end

new text begin (33) 61.01 to 61.50 percent of SMI is 11.90%;
new text end

new text begin (34) 61.51 to 62.00 percent of SMI is 12.20%;
new text end

new text begin (35) 62.01 to 62.50 percent of SMI is 12.50%;
new text end

new text begin (36) 62.51 to 63.00 percent of SMI is 12.80%;
new text end

new text begin (37) 63.01 to 63.50 percent of SMI is 13.10%;
new text end

new text begin (38) 63.51 to 64.00 percent of SMI is 13.40%;
new text end

new text begin (39) 64.01 to 64.50 percent of SMI is 13.70%;
new text end

new text begin (40) 64.51 to 65.00 percent of SMI is 14.00%;
new text end

new text begin (41) 65.01 to 65.50 percent of SMI is 14.30%;
new text end

new text begin (42) 65.51 to 66.00 percent of SMI is 14.60%;
new text end

new text begin (43) 66.01 to 66.50 percent of SMI is 14.90%;
new text end

new text begin (44) 66.51 to 67.00 percent of SMI is 15.20%;
new text end

new text begin (45) 67.01 to 67.50 percent of SMI is 15.50%;
new text end

new text begin (46) 67.51 to 68.00 percent of SMI is 15.80%;
new text end

new text begin (47) 68.01 to 68.50 percent of SMI is 16.10%;
new text end

new text begin (48) 68.51 to 69.00 percent of SMI is 16.40%;
new text end

new text begin (49) 69.01 to 69.50 percent of SMI is 16.70%;
new text end

new text begin (50) 69.51 to 70.00 percent of SMI is 17.00%;
new text end

new text begin (51) 70.01 to 70.50 percent of SMI is 17.30%;
new text end

new text begin (52) 70.51 to 71.00 percent of SMI is 17.60%;
new text end

new text begin (53) 71.01 to 71.50 percent of SMI is 17.90%;
new text end

new text begin (54) 71.51 to 72.00 percent of SMI is 18.20%;
new text end

new text begin (55) 72.01 to 72.50 percent of SMI is 18.50%;
new text end

new text begin (56) 72.51 to 73.00 percent of SMI is 18.80%;
new text end

new text begin (57) 73.01 to 73.50 percent of SMI is 19.10%;
new text end

new text begin (58) 73.51 to 74.00 percent of SMI is 19.40%;
new text end

new text begin (59) 74.01 to 74.50 percent of SMI is 19.70%; and
new text end

new text begin (60) 74.51 to 75.00 percent of SMI is 20.00%.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 119B.13, subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

(a) Beginning July 1, deleted text begin 2006 deleted text end new text begin 2007 new text end , the
maximum rate paid for child care assistance in any county or multicounty region under the
child care fund shall be the rate for like-care arrangements in the county effective January
1, deleted text begin 2006 deleted text end new text begin 2007 new text end , increased by deleted text begin six deleted text end new text begin three new text end percent.

(b) Rate changes shall be implemented for services provided in September deleted text begin 2006 deleted text end
new text begin 2007 new text end unless a participant eligibility redetermination or a new provider agreement is
completed between July 1, deleted text begin 2006 deleted text end new text begin 2007 new text end , and August 31, deleted text begin 2006 deleted text end new text begin 2007 new text end .

As necessary, appropriate notice of adverse action must be made according to
Minnesota Rules, part 3400.0185, subparts 3 and 4.

New cases approved on or after July 1, deleted text begin 2006 deleted text end new text begin 2007 new text end , shall have the maximum rates
under paragraph (a), implemented immediately.

(c) Not less than once every two years, the commissioner shall survey rates
charged by child care providers in Minnesota to determine the 75th percentile for
like-care arrangements in counties. When the commissioner determines that, using the
commissioner's established protocol, the number of providers responding to the survey is
too small to determine the 75th percentile rate for like-care arrangements in a county or
multicounty region, the commissioner may establish the 75th percentile maximum rate
based on like-care arrangements in a county, region, or category that the commissioner
deems to be similar.

(d) A rate which includes a special needs rate paid under subdivision 3 may be in
excess of the maximum rate allowed under this subdivision.

(e) The department shall monitor the effect of this paragraph on provider rates. The
county shall pay the provider's full charges for every child in care up to the maximum
established. The commissioner shall determine the maximum rate for each type of care on
an hourly, full-day, and weekly basis, including special needs and disability care.

(f) When the provider charge is greater than the maximum provider rate allowed,
the parent is responsible for payment of the difference in the rates in addition to any
family co-payment fee.

Sec. 5.

Minnesota Statutes 2006, section 119B.13, subdivision 7, is amended to read:

Subd. 7.

Absent days.

(a) Child care providers may not be reimbursed for more
than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more
than ten consecutive full-day absent days, unless the child has a documented medical
condition that causes more frequent absences. new text begin Absences due to a documented medical
condition of a parent or sibling who lives in the same residence as the child receiving
child care assistance do not count against the 25-day absent day limit in a fiscal year.
new text end Documentation of medical conditions must be on the forms and submitted according to
the timelines established by the commissioner. new text begin A public health official or school nurse
may verify the illness in lieu of a medical practitioner. If a provider sends a child home
early due to a medical reason, including, but not limited to, fever or contagious illness,
the child care center director or lead teacher may verify the illness in lieu of a medical
practitioner. new text end If a child attends for part of the time authorized to be in care in a day, but is
absent for part of the time authorized to be in care in that same day, the absent time will be
reimbursed but the time will not count toward the ten consecutive or 25 cumulative absent
day limits. new text begin Children in families where at least one parent is under the age of 21, does not
have a high school or general equivalency diploma, and is a student in a school district
or another similar program that provides or arranges for child care, as well as parenting,
social services, career and employment supports, and academic support to achieve high
school graduation, may be exempt from the absent day limits upon request of the program
and approval of the county. new text end If a child attends part of an authorized day, payment to the
provider must be for the full amount of care authorized for that day. Child care providers
may only be reimbursed for absent days if the provider has a written policy for child
absences and charges all other families in care for similar absences.

(b) Child care providers must be reimbursed for up to ten federal or state holidays
or designated holidays per year when the provider charges all families for these days
and the holiday or designated holiday falls on a day when the child is authorized to be
in attendance. Parents may substitute other cultural or religious holidays for the ten
recognized state and federal holidays. Holidays do not count toward the ten consecutive or
25 cumulative absent day limits.

(c) A family or child care provider may not be assessed an overpayment for an
absent day payment unless (1) there was an error in the amount of care authorized for the
family, (2) all of the allowed full-day absent payments for the child have been paid, or (3)
the family or provider did not timely report a change as required under law.

(d) The provider and family must receive notification of the number of absent days
used upon initial provider authorization for a family and when the family has used 15
cumulative absent days. Upon statewide implementation of the Minnesota Electronic
Child Care System, the provider and family authorization for a family and ongoing
notification of the number of absent days used as of the date of the notification.

new text begin (e) A county may pay for more absent days than the statewide absent day policy
established under this subdivision if current market practice in the county justifies payment
for those additional days. County policies for payment of absent days in excess of the
statewide absent day policy and justification for these county policies must be included in
the county's child care fund plan under section 119B.08, subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 6.

Minnesota Statutes 2006, section 245A.10, subdivision 2, is amended to read:

Subd. 2.

County fees for background studies and licensing inspections.

(a) For
purposes of family and group family child care licensing under this chapter, a county
agency may charge a deleted text begin fee to an applicant or license holder to recover the actual cost of
background studies, but in any case not to exceed $100 annually. A county agency may
also charge a deleted text end new text begin license new text end fee to an applicant or license holder deleted text begin to recover the actual cost of
licensing inspections, but in any case deleted text end not to exceed deleted text begin $150 annually deleted text end new text begin $50 for a one-year
license or $100 for a two-year license new text end .

(b) A county agency may charge a fee to a legal nonlicensed child care provider or
applicant for authorization to recover the actual cost of background studies completed
under section 119B.125, but in any case not to exceed $100 annually.

(c) Counties may elect to reduce or waive the fees in paragraph (a) or (b):

(1) in cases of financial hardship;

(2) if the county has a shortage of providers in the county's area;

(3) for new providers; or

(4) for providers who have attained at least 16 hours of training before seeking
initial licensure.

(d) Counties may allow providers to pay the applicant fees in paragraph (a) or (b) on
an installment basis for up to one year. If the provider is receiving child care assistance
payments from the state, the provider may have the fees under paragraph (a) or (b)
deducted from the child care assistance payments for up to one year and the state shall
reimburse the county for the county fees collected in this manner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 7. new text begin TWO-HOUR EARLY CHILDHOOD TRAINING.
new text end

new text begin By January 15, 2008, the commissioner of human services, with input from the
Minnesota Licensed Family Child Care Association and the Minnesota Professional
Development Council, shall identify new training that meets the two-hour early
childhood development training requirement for new child care practitioners under
Minnesota Statutes, section 245A.14, subdivision 9a. For licensed family child care, the
commissioner will also seek the input of labor unions that serve licensed family child
care providers, if the union has been recognized by a county to serve licensed family
child care providers.
new text end

ARTICLE 2

CHILDREN AND FAMILY

Section 1.

Minnesota Statutes 2006, section 119B.011, is amended by adding a
subdivision to read:

new text begin Subd. 13a. new text end

new text begin Family stabilization services. new text end

new text begin "Family stabilization services" means the
services under section 256J.575.
new text end

Sec. 2.

Minnesota Statutes 2006, section 119B.05, subdivision 1, is amended to read:

Subdivision 1.

Eligible participants.

Families eligible for child care assistance
under the MFIP child care program are:

(1) MFIP participants who are employed or in job search and meet the requirements
of section 119B.10;

(2) persons who are members of transition year families under section 119B.011,
subdivision 20, and meet the requirements of section 119B.10;

(3) families who are participating in employment orientation or job search, or
other employment or training activities that are included in an approved employability
development plan under section 256J.95;

(4) MFIP families who are participating in work job search, job support,
employment, or training activities as required in their employment plan, or in appeals,
hearings, assessments, or orientations according to chapter 256J;

(5) MFIP families who are participating in social services activities under chapter
256J as required in their employment plan approved according to chapter 256J;

(6) new text begin families who are participating in services or activities that are included in an
approved family stabilization plan under section 256J.575; new text end

new text begin (7) new text end families who are participating in programs as required in tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2; and

deleted text begin (7) deleted text end new text begin (8) new text end families who are participating in the transition year extension under section
119B.011, subdivision 20a.

Sec. 3.

Minnesota Statutes 2006, section 252.27, subdivision 2a, is amended to read:

Subd. 2a.

Contribution amount.

(a) The natural or adoptive parents of a minor
child, including a child determined eligible for medical assistance without consideration of
parental income, must contribute to the cost of services used by making monthly payments
on a sliding scale based on income, unless the child is married or has been married,
parental rights have been terminated, or the child's adoption is subsidized according to
section 259.67 or through title IV-E of the Social Security Act. new text begin The parental contribution
is a partial or full payment for medical services provided for diagnostic, therapeutic,
curing, treating, mitigating, rehabilitation, maintenance, and personal care services as
defined in United States Code, title 26, section 213, needed by the child with a chronic
illness or disability.
new text end

(b) For households with adjusted gross income equal to or greater than 100 percent
of federal poverty guidelines, the parental contribution shall be computed by applying the
following schedule of rates to the adjusted gross income of the natural or adoptive parents:

(1) if the adjusted gross income is equal to or greater than 100 percent of federal
poverty guidelines and less than 175 percent of federal poverty guidelines, the parental
contribution is $4 per month;

(2) if the adjusted gross income is equal to or greater than 175 percent of federal
poverty guidelines and less than or equal to 545 percent of federal poverty guidelines,
the parental contribution shall be determined using a sliding fee scale established by the
commissioner of human services which begins at one percent of adjusted gross income
at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted
gross income for those with adjusted gross income up to 545 percent of federal poverty
guidelines;

(3) if the adjusted gross income is greater than 545 percent of federal poverty
guidelines and less than 675 percent of federal poverty guidelines, the parental
contribution shall be 7.5 percent of adjusted gross income;

(4) if the adjusted gross income is equal to or greater than 675 percent of federal
poverty guidelines and less than 975 percent of federal poverty guidelines, the parental
contribution shall be determined using a sliding fee scale established by the commissioner
of human services which begins at 7.5 percent of adjusted gross income at 675 percent of
federal poverty guidelines and increases to ten percent of adjusted gross income for those
with adjusted gross income up to 975 percent of federal poverty guidelines; and

(5) if the adjusted gross income is equal to or greater than 975 percent of federal
poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross
income.

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

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

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

(e) The contribution shall be explained in writing to the parents at the time eligibility
for services is being determined. The contribution shall be made on a monthly basis
effective with the first month in which the child receives services. Annually upon
redetermination or at termination of eligibility, if the contribution exceeded the cost of
services provided, the local agency or the state shall reimburse that excess amount to
the parents, either by direct reimbursement if the parent is no longer required to pay
a contribution, or by a reduction in or waiver of parental fees until the excess amount
is exhausted.

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

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

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

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

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

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

(2) the insurer denied insurance;

(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted
a complaint or appeal, in writing, to the commissioner of health or the commissioner of
commerce, or litigated the complaint or appeal; and

(4) as a result of the dispute, the insurer reversed its decision and granted insurance.

For purposes of this section, "insurance" has the meaning given in paragraph (h).

A parent who has requested a reduction in the contribution amount under this
paragraph shall submit proof in the form and manner prescribed by the commissioner or
county agency, including, but not limited to, the insurer's denial of insurance, the written
letter or complaint of the parents, court documents, and the written response of the insurer
approving insurance. The determinations of the commissioner or county agency under this
paragraph are not rules subject to chapter 14.

Sec. 4.

Minnesota Statutes 2006, section 256J.01, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Legislative approval to move programs or activities. new text end

new text begin The commissioner
shall not move programs or activities funded with MFIP or TANF maintenance of effort
funds to other funding sources without legislative approval.
new text end

Sec. 5.

Minnesota Statutes 2006, section 256J.021, is amended to read:

256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.

(a) deleted text begin Until October 1, 2006, the commissioner of human services must treat MFIP
expenditures made to or on behalf of any minor child under section 256J.02, subdivision
2, clause (1), who is a resident of this state under section 256J.12, and who is part of a
two-parent eligible household as expenditures under a separately funded state program
and report those expenditures to the federal Department of Health and Human Services as
separate state program expenditures under Code of Federal Regulations, title 45, section
263.5. deleted text end new text begin Families receiving assistance under this section shall comply with all applicable
requirements in this chapter. new text end

(b) Beginning October 1, 2006, the commissioner of human services must treat
MFIP expenditures made to or on behalf of any minor child under section 256J.02,
subdivision 2, clause (1), deleted text begin who is a resident of this state under section 256J.12, and deleted text end who is
part of a two-parent deleted text begin eligible deleted text end household, as expenditures under a separately funded state
program. deleted text begin These expenditures shall not count toward the state's maintenance of effort
(MOE) requirements under the federal Temporary Assistance to Needy Families (TANF)
program except if counting certain families would allow the commissioner to avoid a
federal penalty. Families receiving assistance under this section must comply with all
applicable requirements in this chapter.
deleted text end

new text begin (c) Beginning July 1, 2007, the commissioner of human services shall treat MFIP
expenditures made to or on behalf of any minor child who is part of a household that meets
criteria in section 256J.575, subdivision 3, as expenditures under a separately funded state
program under section 256J.575, subdivision 8.
new text end

Sec. 6.

Minnesota Statutes 2006, section 256J.08, subdivision 65, is amended to read:

Subd. 65.

Participant.

new text begin (a) new text end "Participant" deleted text begin means deleted text end new text begin includes any of the following:
new text end

new text begin (1) new text end a person who is currently receiving cash assistance or the food portion available
through MFIP deleted text begin . A person who fails to withdraw or access electronically any portion of the
person's cash and food assistance payment by the end of the payment month, who makes a
written request for closure before the first of a payment month and repays cash and food
assistance electronically issued for that payment month within that payment month, or
who returns any uncashed assistance check and food coupons and withdraws from the
program is not a participant. deleted text end new text begin ;
new text end

new text begin (2) new text end a person who withdraws a cash or food assistance payment by electronic transfer
or receives and cashes an MFIP assistance check or food coupons and is subsequently
determined to be ineligible for assistance for that period of time is a participant, regardless
whether that assistance is repaid deleted text begin . The term "participant" includes deleted text end new text begin ;
new text end

new text begin (3) new text end the caregiver relative and the minor child whose needs are included in the
assistance payment deleted text begin . deleted text end new text begin ;
new text end

new text begin (4) new text end a person in an assistance unit who does not receive a cash and food assistance
payment because the case has been suspended from MFIP deleted text begin is a participant. deleted text end new text begin ;
new text end

new text begin (5) new text end a person who receives cash payments under the diversionary work program
under section 256J.95 is a participant deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) a person who receives cash payments under the family stabilization services
under section 256J.575.
new text end

new text begin (b) "Participant" does not include a person who fails to withdraw or access
electronically any portion of the person's cash and food assistance payment by the end of
the payment month, who makes a written request for closure before the first of a payment
month and repays cash and food assistance electronically issued for that payment month
within that payment month, or who returns any uncashed assistance check and food
coupons and withdraws from the program. new text end

Sec. 7.

Minnesota Statutes 2006, section 256J.20, subdivision 3, is amended to read:

Subd. 3.

Other property limitations.

To be eligible for MFIP, the equity value of
all nonexcluded real and personal property of the assistance unit must not exceed $2,000
for applicants and $5,000 for ongoing participants. The value of assets in clauses (1) to
(19) must be excluded when determining the equity value of real and personal property:

(1) a licensed vehicle deleted text begin up to a loan value of less than or equal to $7,500. The county
agency shall apply any excess loan value as if it were equity value to the asset limit
described in this section deleted text end . If the assistance unit owns more than one licensed vehicle, deleted text begin the
county agency shall deleted text end determine deleted text begin the vehicle with the highest loan value and count only the
loan value over $7,500, deleted text end new text begin the loan value of all additional vehicles and exclude the combined
loan value of less than or equal to $7,500. The county agency shall apply any excess loan
value as if it were equity value to the asset limit described in this section, new text end excluding: (i)
the value of one vehicle per physically disabled person when the vehicle is needed to
transport the disabled unit member; this exclusion does not apply to mentally disabled
people; (ii) the value of special equipment for a disabled member of the assistance unit;
and (iii) any vehicle used for long-distance travel, other than daily commuting, for the
employment of a unit member.

deleted text begin The county agency shall count the deleted text end deleted text begin loan deleted text end deleted text begin value of all other vehicles and apply this
deleted text end deleted text begin amount deleted text end deleted text begin as if it were equity value deleted text end deleted text begin to the asset limit described in this section. deleted text end To establish the
loan value of vehicles, a county agency must use the N.A.D.A. Official Used Car Guide,
Midwest Edition, for newer model cars. When a vehicle is not listed in the guidebook,
or when the applicant or participant disputes the loan value listed in the guidebook as
unreasonable given the condition of the particular vehicle, the county agency may require
the applicant or participant document the loan value by securing a written statement from
a motor vehicle dealer licensed under section 168.27, stating the amount that the dealer
would pay to purchase the vehicle. The county agency shall reimburse the applicant or
participant for the cost of a written statement that documents a lower loan value;

(2) the value of life insurance policies for members of the assistance unit;

(3) one burial plot per member of an assistance unit;

(4) the value of personal property needed to produce earned income, including
tools, implements, farm animals, inventory, business loans, business checking and
savings accounts used at least annually and used exclusively for the operation of a
self-employment business, and any motor vehicles if at least 50 percent of the vehicle's use
is to produce income and if the vehicles are essential for the self-employment business;

(5) the value of personal property not otherwise specified which is commonly
used by household members in day-to-day living such as clothing, necessary household
furniture, equipment, and other basic maintenance items essential for daily living;

(6) the value of real and personal property owned by a recipient of Supplemental
Security Income or Minnesota supplemental aid;

(7) the value of corrective payments, but only for the month in which the payment
is received and for the following month;

(8) a mobile home or other vehicle used by an applicant or participant as the
applicant's or participant's home;

(9) money in a separate escrow account that is needed to pay real estate taxes or
insurance and that is used for this purpose;

(10) money held in escrow to cover employee FICA, employee tax withholding,
sales tax withholding, employee worker compensation, business insurance, property rental,
property taxes, and other costs that are paid at least annually, but less often than monthly;

(11) monthly assistance payments for the current month's or short-term emergency
needs under section 256J.626, subdivision 2;

(12) the value of school loans, grants, or scholarships for the period they are
intended to cover;

(13) payments listed in section 256J.21, subdivision 2, clause (9), which are held
in escrow for a period not to exceed three months to replace or repair personal or real
property;

(14) income received in a budget month through the end of the payment month;

(15) savings from earned income of a minor child or a minor parent that are set aside
in a separate account designated specifically for future education or employment costs;

(16) the federal earned income credit, Minnesota working family credit, state and
federal income tax refunds, state homeowners and renters credits under chapter 290A,
property tax rebates and other federal or state tax rebates in the month received and the
following month;

(17) payments excluded under federal law as long as those payments are held in a
separate account from any nonexcluded funds;

(18) the assets of children ineligible to receive MFIP benefits because foster care or
adoption assistance payments are made on their behalf; and

(19) the assets of persons whose income is excluded under section 256J.21,
subdivision 2, clause (43).

Sec. 8.

Minnesota Statutes 2006, section 256J.32, subdivision 6, is amended to read:

Subd. 6.

Recertification.

The county agency shall recertify eligibility in an annual
face-to-face interview with the participant and verify the following:

(1) presence of the minor child in the home, if questionable;

(2) income, unless excluded, including self-employment expenses used as a
deduction or deposits or withdrawals from business accounts;

(3) assets when the value is within $200 of the asset limit;

(4) information to establish an exception under section 256J.24, subdivision 9,
if questionable; deleted text begin and deleted text end

(5) inconsistent information, if related to eligibility new text begin ; and
new text end

new text begin (6) whether a single caregiver household meets requirements in section 256J.575,
subdivision 3 new text end new text begin new text end .

Sec. 9.

Minnesota Statutes 2006, section 256J.425, subdivision 3, is amended to read:

Subd. 3.

Hard-to-employ participants.

An assistance unit subject to the time
limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under
a hardship extension if the participant who reached the time limit belongs to any of the
following groups:

(1) a person who is diagnosed by a licensed physician, psychological practitioner,
or other qualified professional, as developmentally disabled or mentally ill, and that
condition prevents the person from obtaining or retaining unsubsidized employment;

(2) a person who:

(i) has been assessed by a vocational specialist or the county agency to be
unemployable for purposes of this subdivision; or

(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county
agency to be employable, but not at a level that makes the participant eligible for an
extension under subdivision 4. The determination of IQ level must be made by a qualified
professional. In the case of a non-English-speaking person: (A) the determination must
be made by a qualified professional with experience conducting culturally appropriate
assessments, whenever possible; (B) the county may accept reports that identify an
IQ range as opposed to a specific score; (C) these reports must include a statement of
confidence in the results;

(3) a person who is determined by a qualified professional to be learning disabled,
and the disability severely limits the person's ability to obtain, perform, or maintain
suitable employment. For purposes of the initial approval of a learning disability
extension, the determination must have been made or confirmed within the previous 12
months. In the case of a non-English-speaking person: (i) the determination must be made
by a qualified professional with experience conducting culturally appropriate assessments,
whenever possible; and (ii) these reports must include a statement of confidence in the
results. If a rehabilitation plan for a participant extended as learning disabled is developed
or approved by the county agency, the plan must be incorporated into the employment
plan. However, a rehabilitation plan does not replace the requirement to develop and
comply with an employment plan under section 256J.521; deleted text begin or deleted text end

(4) a person who has been granted a family violence waiver, and who is complying
with an employment plan under section 256J.521, subdivision 3 new text begin ; or
new text end

new text begin (5) a participant who falls under section 256J.561, subdivision 2, paragraph
(d), and who is complying with an employment plan tailored to recognize the special
circumstances of the caregivers and family, including limitations due to illness or
disability, and caregiving needs new text end .

Sec. 10.

Minnesota Statutes 2006, section 256J.425, subdivision 4, is amended to read:

Subd. 4.

Employed participants.

(a) An assistance unit subject to the time limit
under section 256J.42, subdivision 1, is eligible to receive assistance under a hardship
extension if the participant who reached the time limit belongs to:

(1) a one-parent assistance unit in which the participant is participating in work
activities for at least 30 hours per week deleted text begin , of which an average of at least 25 hours per week
every month are spent participating in employment deleted text end ;

(2) a two-parent assistance unit in which the participants are participating in work
activities for at least 55 hours per week deleted text begin , of which an average of at least 45 hours per week
every month are spent participating in employment deleted text end ; or

(3) an assistance unit in which a participant is participating in employment for fewer
hours than those specified in clause (1) new text begin or (2) new text end , and the participant submits verification from
a qualified professional, in a form acceptable to the commissioner, stating that the number
of hours the participant may work is limited due to illness or disability, as long as the
participant is participating in employment for at least the number of hours specified by the
qualified professional. The participant must be following the treatment recommendations
of the qualified professional providing the verification. The commissioner shall develop a
form to be completed and signed by the qualified professional, documenting the diagnosis
and any additional information necessary to document the functional limitations of the
participant that limit work hours. If the participant is part of a two-parent assistance unit,
the other parent must be treated as a one-parent assistance unit for purposes of meeting the
work requirements under this subdivision.

(b) deleted text begin For purposes of this section, employment means:
deleted text end

deleted text begin (1) unsubsidized employment under section deleted text begin 256J.49, subdivision 13 deleted text end , clause (1);
deleted text end

deleted text begin (2) subsidized employment under section deleted text begin 256J.49, subdivision 13 deleted text end , clause (2);
deleted text end

deleted text begin (3) on-the-job training under section deleted text begin 256J.49, subdivision 13 deleted text end , clause (2);
deleted text end

deleted text begin (4) an apprenticeship under section deleted text begin 256J.49, subdivision 13 deleted text end , clause (1);
deleted text end

deleted text begin (5) supported work under section deleted text begin 256J.49, subdivision 13 deleted text end , clause (2);
deleted text end

deleted text begin (6) a combination of clauses (1) to (5); or
deleted text end

deleted text begin (7) child care under section deleted text begin 256J.49, subdivision 13 deleted text end , clause (7), if it is in combination
with paid employment.
deleted text end

deleted text begin (c) deleted text end If a participant is complying with a child protection plan under chapter 260C,
the number of hours required under the child protection plan count toward the number
of hours required under this subdivision.

deleted text begin (d) deleted text end new text begin (c) new text end The county shall provide the opportunity for subsidized employment to
participants needing that type of employment within available appropriations.

deleted text begin (e) deleted text end new text begin (d) new text end To be eligible for a hardship extension for employed participants under this
subdivision, a participant must be in compliance for at least ten out of the 12 months
the participant received MFIP immediately preceding the participant's 61st month on
assistance. If ten or fewer months of eligibility for TANF assistance remain at the time the
participant from another state applies for assistance, the participant must be in compliance
every month.

deleted text begin (f) deleted text end new text begin (e) new text end The employment plan developed under section 256J.521, subdivision 2, for
participants under this subdivision must contain at least the minimum number of hours
specified in paragraph (a) for the purpose of meeting the requirements for an extension
under this subdivision. The job counselor and the participant must sign the employment
plan to indicate agreement between the job counselor and the participant on the contents
of the plan.

deleted text begin (g) deleted text end new text begin (f) new text end Participants who fail to meet the requirements in paragraph (a), without
good cause under section 256J.57, shall be sanctioned or permanently disqualified under
subdivision 6. Good cause may only be granted for that portion of the month for which
the good cause reason applies. Participants must meet all remaining requirements in the
approved employment plan or be subject to sanction or permanent disqualification.

deleted text begin (h) deleted text end new text begin (g) new text end If the noncompliance with an employment plan is due to the involuntary loss
of employment, the participant is exempt from the hourly employment requirement under
this subdivision for one month. Participants must meet all remaining requirements in the
approved employment plan or be subject to sanction or permanent disqualification. This
exemption is available to each participant two times in a 12-month period.

Sec. 11.

Minnesota Statutes 2006, section 256J.49, subdivision 13, is amended to read:

Subd. 13.

Work activity.

"Work activity" means any activity in a participant's
approved employment plan that leads to employment. For purposes of the MFIP program,
this includes activities that meet the definition of work activity under the participation
requirements of TANF. Work activity includes:

(1) unsubsidized employment, including work study and paid apprenticeships or
internships;

(2) subsidized private sector or public sector employment, including grant diversion
as specified in section 256J.69, on-the-job training as specified in section 256J.66,
the self-employment investment demonstration program (SEID) as specified in section
256J.65, paid work experience, and supported work when a wage subsidy is provided;

(3) unpaid work experience, including community service, volunteer work,
the community work experience program as specified in section 256J.67, unpaid
apprenticeships or internships, and supported work when a wage subsidy is not provided new text begin .
Unpaid work performed in return for cash assistance is prohibited and does not count
as a work activity, unless the participant voluntarily agrees, in writing, to engage in
unpaid work in return for cash assistance. The participant may terminate the unpaid
work arrangement, in writing, at any time new text end ;

(4) job search including job readiness assistance, job clubs, job placement,
job-related counseling, and job retention services;

(5) job readiness education, including English as a second language (ESL) or
functional work literacy classes as limited by the provisions of section 256J.531,
subdivision 2, general educational development (GED) course work, high school
completion, and adult basic education as limited by the provisions of section 256J.531,
subdivision 1;

(6) job skills training directly related to employment, including education and
training that can reasonably be expected to lead to employment, as limited by the
provisions of section 256J.53;

(7) providing child care services to a participant who is working in a community
service program;

(8) activities included in the employment plan that is developed under section
256J.521, subdivision 3; and

(9) preemployment activities including chemical and mental health assessments,
treatment, and services; learning disabilities services; child protective services; family
stabilization services; or other programs designed to enhance employability.

Sec. 12.

Minnesota Statutes 2006, section 256J.521, subdivision 1, is amended to read:

Subdivision 1.

Assessments.

(a) For purposes of MFIP employment services,
assessment is a continuing process of gathering information related to employability
for the purpose of identifying both participant's strengths and strategies for coping with
issues that interfere with employment. The job counselor must use information from the
assessment process to develop and update the employment plan under subdivision 2 or 3,
as appropriate, deleted text begin and deleted text end to determine whether the participant qualifies for a family violence
waiver including an employment plan under subdivision 3 new text begin , and to determine whether the
participant should be referred to the family stabilization services under section 256J.575 new text end .

(b) The scope of assessment must cover at least the following areas:

(1) basic information about the participant's ability to obtain and retain employment,
including: a review of the participant's education level; interests, skills, and abilities; prior
employment or work experience; transferable work skills; child care and transportation
needs;

(2) identification of personal and family circumstances that impact the participant's
ability to obtain and retain employment, including: any special needs of the children, the
level of English proficiency, family violence issues, and any involvement with social
services or the legal system;

(3) the results of a mental and chemical health screening tool designed by the
commissioner and results of the brief screening tool for special learning needs. Screening
tools for mental and chemical health and special learning needs must be approved by the
commissioner and may only be administered by job counselors or county staff trained in
using such screening tools. The commissioner shall work with county agencies to develop
protocols for referrals and follow-up actions after screens are administered to participants,
including guidance on how employment plans may be modified based upon outcomes
of certain screens. Participants must be told of the purpose of the screens and how the
information will be used to assist the participant in identifying and overcoming barriers to
employment. Screening for mental and chemical health and special learning needs must
be completed by participants who are unable to find suitable employment after six weeks
of job search under subdivision 2, paragraph (b), and participants who are determined to
have barriers to employment under subdivision 2, paragraph (d). Failure to complete the
screens will result in sanction under section 256J.46; and

(4) a comprehensive review of participation and progress for participants who have
received MFIP assistance and have not worked in unsubsidized employment during the
past 12 months. The purpose of the review is to determine the need for additional services
and supports, including placement in subsidized employment or unpaid work experience
under section 256J.49, subdivision 13 new text begin , or referral to the family stabilization services
under section 256J.575 new text end .

(c) Information gathered during a caregiver's participation in the diversionary work
program under section 256J.95 must be incorporated into the assessment process.

(d) The job counselor may require the participant to complete a professional chemical
use assessment to be performed according to the rules adopted under section 254A.03,
subdivision 3, including provisions in the administrative rules which recognize the cultural
background of the participant, or a professional psychological assessment as a component
of the assessment process, when the job counselor has a reasonable belief, based on
objective evidence, that a participant's ability to obtain and retain suitable employment
is impaired by a medical condition. The job counselor may assist the participant with
arranging services, including child care assistance and transportation, necessary to meet
needs identified by the assessment. Data gathered as part of a professional assessment
must be classified and disclosed according to the provisions in section 13.46.

Sec. 13.

Minnesota Statutes 2006, section 256J.521, subdivision 2, is amended to read:

Subd. 2.

Employment plan; contents.

(a) Based on the assessment under
subdivision 1, the job counselor and the participant must develop an employment plan
that includes participation in activities and hours that meet the requirements of section
256J.55, subdivision 1. The purpose of the employment plan is to identify for each
participant the most direct path to unsubsidized employment and any subsequent steps that
support long-term economic stability. The employment plan should be developed using
the highest level of activity appropriate for the participant. Activities must be chosen from
clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of
preference for activities, priority must be given for activities related to a family violence
waiver when developing the employment plan. The employment plan must also list the
specific steps the participant will take to obtain employment, including steps necessary
for the participant to progress from one level of activity to another, and a timetable for
completion of each step. Levels of activity include:

(1) unsubsidized employment;

(2) job search;

(3) subsidized employment or unpaid work experience;

(4) unsubsidized employment and job readiness education or job skills training;

(5) unsubsidized employment or unpaid work experience and activities related to
a family violence waiver or preemployment needs; and

(6) activities related to a family violence waiver or preemployment needs.

(b) Participants who are determined to possess sufficient skills such that the
participant is likely to succeed in obtaining unsubsidized employment must job search at
least 30 hours per week for up to six weeks and accept any offer of suitable employment.
The remaining hours necessary to meet the requirements of section 256J.55, subdivision
1, may be met through participation in other work activities under section 256J.49,
subdivision 13. The participant's employment plan must specify, at a minimum: (1)
whether the job search is supervised or unsupervised; (2) support services that will
be provided; and (3) how frequently the participant must report to the job counselor.
Participants who are unable to find suitable employment after six weeks must meet
with the job counselor to determine whether other activities in paragraph (a) should be
incorporated into the employment plan. Job search activities which are continued after six
weeks must be structured and supervised.

(c) Beginning July 1, 2004, activities and hourly requirements in the employment
plan may be adjusted as necessary to accommodate the personal and family circumstances
of participants identified under section 256J.561, subdivision 2, paragraph (d). Participants
who no longer meet the provisions of section 256J.561, subdivision 2, paragraph (d),
must meet with the job counselor within ten days of the determination to revise the
employment plan.

(d) Participants who are determined to have barriers to obtaining or retaining
employment that will not be overcome during six weeks of job search under paragraph (b)
must work with the job counselor to develop an employment plan that addresses those
barriers by incorporating appropriate activities from paragraph (a), clauses (1) to (6).
The employment plan must include enough hours to meet the participation requirements
in section 256J.55, subdivision 1, unless a compelling reason to require fewer hours
is noted in the participant's file.

(e) The job counselor and the participant must sign the employment plan to indicate
agreement on the contents. Failure to develop or comply with activities in the plan, or
voluntarily quitting suitable employment without good cause, will result in the imposition
of a sanction under section 256J.46.

(f) Employment plans must be reviewed at least every three months to determine
whether activities and hourly requirements should be revised. new text begin The job counselor is
encouraged to allow participants who are participating in at least 20 hours of work
activities to also participate in education and training activities in order to meet the federal
hourly participation rates.
new text end

Sec. 14.

Minnesota Statutes 2006, section 256J.53, subdivision 2, is amended to read:

Subd. 2.

Approval of postsecondary education or training.

(a) deleted text begin In order for a
postsecondary education or training program to be an approved activity in an employment
plan, the participant must be working in unsubsidized employment at least 20 hours per
week.
deleted text end

deleted text begin (b) deleted text end Participants seeking approval of a postsecondary education or training plan
must provide documentation that:

(1) the employment goal can only be met with the additional education or training;

(2) there are suitable employment opportunities that require the specific education or
training in the area in which the participant resides or is willing to reside;

(3) the education or training will result in significantly higher wages for the
participant than the participant could earn without the education or training;

(4) the participant can meet the requirements for admission into the program; and

(5) there is a reasonable expectation that the participant will complete the training
program based on such factors as the participant's MFIP assessment, previous education,
training, and work history; current motivation; and changes in previous circumstances.

deleted text begin (c) The hourly unsubsidized employment requirement does not apply for intensive
education or training programs lasting 12 weeks or less when full-time attendance is
required.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end Participants with an approved employment plan in place on July 1, 2003,
which includes more than 12 months of postsecondary education or training shall be
allowed to complete that plan provided that hourly requirements in section 256J.55,
subdivision 1, and conditions specified in paragraph deleted text begin (b) deleted text end new text begin (a) new text end , and subdivisions 3 and 5 are
met. A participant whose case is subsequently closed for three months or less for reasons
other than noncompliance with program requirements and who returns to MFIP shall
be allowed to complete that plan provided that hourly requirements in section 256J.55,
subdivision 1, and conditions specified in paragraph deleted text begin (b) deleted text end new text begin (a), new text end and subdivisions 3 and 5 are
met.

Sec. 15.

Minnesota Statutes 2006, section 256J.55, subdivision 1, is amended to read:

Subdivision 1.

Participation requirements.

(a) All caregivers must participate
in employment services under sections 256J.515 to 256J.57 concurrent with receipt of
MFIP assistance.

(b) Until July 1, 2004, participants who meet the requirements of section 256J.56 are
exempt from participation requirements.

(c) Participants under paragraph (a) must develop and comply with an employment
plan under section 256J.521 or section 256J.54 in the case of a participant under the age of
20 who has not obtained a high school diploma or its equivalent.

(d) With the exception of participants under the age of 20 who must meet the
education requirements of section 256J.54, all participants must meet the hourly
participation requirements of TANF or the hourly requirements listed in clauses (1) to
(3), whichever is higher.

(1) In single-parent families with no children under six years of age, the job
counselor and the caregiver must develop an employment plan that includes deleted text begin 30 deleted text end deleted text begin to 35 deleted text end deleted text begin deleted text end deleted text begin hours
per week of work activities deleted text end new text begin 130 hours per month of work activities new text end .

(2) In single-parent families with a child under six years of age, the job counselor
and the caregiver must develop an employment plan that includes deleted text begin 20 deleted text end deleted text begin to 35 deleted text end deleted text begin hours per deleted text end deleted text begin week
of work activities deleted text end new text begin 87 hours per month of work activities new text end .

(3) In two-parent families, the job counselor and the caregivers must develop
employment plans which result in a combined total of at least 55 hours per week of work
activities.

(e) Failure to participate in employment services, including the requirement to
develop and comply with an employment plan, including hourly requirements, without
good cause under section 256J.57, shall result in the imposition of a sanction under section
256J.46.

Sec. 16.

new text begin [256J.575] FAMILY STABILIZATION SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin (a) The family stabilization services serve families who are
not making significant progress within the Minnesota family investment program (MFIP)
due to a variety of barriers to employment.
new text end

new text begin (b) The goal of the services is to stabilize and improve the lives of families at risk
of long-term welfare dependency or family instability due to employment barriers such
as physical disability, mental disability, age, or providing care for a disabled household
member. These services promote and support families to achieve the greatest possible
degree of self-sufficiency.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin The terms used in this section have the meanings given them
in paragraphs (a) to (d).
new text end

new text begin (a) "Family stabilization services" means the services established under this section.
new text end

new text begin (b) "Case management" means the services provided by or through the county
agency or through the job counseling agency to participating families, including
assessment, information, referrals, and assistance in the preparation and implementation
of a family stabilization plan under subdivision 5.
new text end

new text begin (c) "Family stabilization plan" means a plan developed by a case manager and
the participant, which identifies the participant's most appropriate path to unsubsidized
employment, family stability, and barrier reduction, taking into account the family's
circumstances.
new text end

new text begin (d) "Family stabilization services" means programs, activities, and services in this
section that provide participants and their family members with assistance regarding,
but not limited to:
new text end

new text begin (1) obtaining and retaining unsubsidized employment;
new text end

new text begin (2) family stability;
new text end

new text begin (3) economic stability; and
new text end

new text begin (4) barrier reduction.
new text end

new text begin The goal of the services is to achieve the greatest degree of economic self-sufficiency
and family well-being possible for the family under the circumstances.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin (a) The following MFIP or diversionary work program (DWP)
participants are eligible for the services under this section:
new text end

new text begin (1) a participant identified under section 256J.561, subdivision 2, paragraph (d), who
has or is eligible for an employment plan developed under section 256J.521, subdivision
2, paragraph (c);
new text end

new text begin (2) a participant identified under section 256J.95, subdivision 12, paragraph (b), as
unlikely to benefit from the diversionary work program;
new text end

new text begin (3) a participant who meets the requirements for or has been granted a hardship
extension under section 256J.425, subdivision 2 or 3;
new text end

new text begin (4) a participant who is applying for supplemental security income or Social Security
disability insurance;
new text end

new text begin (5) a participant who is a noncitizen who has been in the United States for 12 or
fewer months; and
new text end

new text begin (6) a new MFIP participant, for the first 30 days the participant receives assistance or
when the participant's employment plan is completed, whichever is sooner.
new text end

new text begin (b) Families must meet all other eligibility requirements for MFIP established in
this chapter. Families are eligible for financial assistance to the same extent as if they
were participating in MFIP.
new text end

new text begin (c) A participant under paragraph (a), clause (5), must be provided with English as a
second language opportunities and skills training for up to 12 months. After 12 months,
the case manager and participant must determine whether the participant should continue
with English as a second language classes or skills training, or both, or if the participant
should become an MFIP participant.
new text end

new text begin Subd. 4. new text end

new text begin Universal participation. new text end

new text begin All caregivers must participate in family
stabilization services as defined in subdivision 2.
new text end

new text begin Subd. 5. new text end

new text begin Case management; family stabilization plans; coordinated services. new text end

new text begin (a)
The county agency shall provide family stabilization services to families through a case
management model. A case manager shall be assigned to each participating family within
30 days after the family begins to receive financial assistance as a participant of the family
stabilization services. The case manager, with the full involvement of the participant, shall
recommend, and the county agency shall establish and modify as necessary, a family
stabilization plan for each participating family. If a participant is already assigned to a
county case manager or a county-designated case manager in social services, disability
services, or housing services that case manager already assigned may be the case manager
for purposes of these services.
new text end

new text begin (b) The family stabilization plan must include:
new text end

new text begin (1) each participant's plan for long-term self-sufficiency, including an employment
goal where applicable;
new text end

new text begin (2) an assessment of each participant's strengths and barriers, and any special
circumstances of the participant's family that impact, or are likely to impact, the
participant's progress towards the goals in the plan; and
new text end

new text begin (3) an identification of the services, supports, education, training, and
accommodations needed to reduce or overcome any barriers to enable the family to
achieve self-sufficiency and to fulfill each caregiver's personal and family responsibilities.
new text end

new text begin (c) The case manager and the participant shall meet within 30 days of the family's
referral to the case manager. The initial family stabilization plan must be completed within
30 days of the first meeting with the case manager. The case manager shall establish a
schedule for periodic review of the family stabilization plan that includes personal contact
with the participant at least once per month. In addition, the case manager shall review
and, if necessary, modify the plan under the following circumstances:
new text end

new text begin (1) there is a lack of satisfactory progress in achieving the goals of the plan;
new text end

new text begin (2) the participant has lost unsubsidized or subsidized employment;
new text end

new text begin (3) a family member has failed or is unable to comply with a family stabilization
plan requirement;
new text end

new text begin (4) services, supports, or other activities required by the plan are unavailable;
new text end

new text begin (5) changes to the plan are needed to promote the well-being of the children; or
new text end

new text begin (6) the participant and case manager determine that the plan is no longer appropriate
for any other reason.
new text end

new text begin Subd. 6. new text end

new text begin Cooperation with services requirements. new text end

new text begin (a) To be eligible, a participant
shall comply with paragraphs (b) to (e).
new text end

new text begin (b) Participants shall engage in family stabilization plan services for the appropriate
number of hours per week that the activities are scheduled and available, unless good
cause exists for not doing so, as defined in section 256J.57, subdivision 1. The appropriate
number of hours must be based on the participant's plan.
new text end

new text begin (c) The case manager shall review the participant's progress toward the goals in the
family stabilization plan every six months to determine whether conditions have changed,
including whether revisions to the plan are needed.
new text end

new text begin (d) When the participant has increased participation in work-related activities
sufficient to meet the federal participation requirements of TANF, the county agency shall
refer the participant to the MFIP program and assign the participant to a job counselor.
The participant and the job counselor shall meet within 15 days of referral to the MFIP
program to develop an employment plan under section 256J.521. No reapplication is
necessary and financial assistance continues without interruption.
new text end

new text begin (e) A participant's requirement to comply with any or all family stabilization plan
requirements under this subdivision is excused when the case management services,
training and educational services, and family support services identified in the participant's
family stabilization plan are unavailable for reasons beyond the control of the participant,
including when money appropriated is not sufficient to provide the services.
new text end

new text begin Subd. 7. new text end

new text begin Sanctions. new text end

new text begin (a) The financial assistance grant of a participating family is
reduced according to section 256J.46, if a participating adult fails without good cause to
comply or continue to comply with the family stabilization plan requirements in this
subdivision, unless compliance has been excused under subdivision 6, paragraph (e).
new text end

new text begin (b) Given the purpose of the family stabilization services in this section and the
nature of the underlying family circumstances that act as barriers to both employment and
full compliance with program requirements, sanctions are appropriate only when it is clear
that there is both the ability to comply and willful noncompliance by the participant, as
confirmed by a behavioral health or medical professional.
new text end

new text begin (c) Prior to the imposition of a sanction, the county agency shall review the
participant's case to determine if the family stabilization plan is still appropriate and
meet with the participant face-to-face. The participant may bring an advocate to the
face-to-face meeting.
new text end

new text begin During the face-to-face meeting, the county agency shall:
new text end

new text begin (1) determine whether the continued noncompliance can be explained and mitigated
by providing a needed family stabilization service, as defined in subdivision 2, paragraph
(d);
new text end

new text begin (2) determine whether the participant qualifies for a good cause exception under
section 256J.57, or if the sanction is for noncooperation with child support requirements,
determine if the participant qualifies for a good cause exemption under section 256.741,
subdivision 10;
new text end

new text begin (3) determine whether activities in the family stabilization plan are appropriate
based on the family's circumstances;
new text end

new text begin (4) explain the consequences of continuing noncompliance;
new text end

new text begin (5) identify other resources that may be available to the participant to meet the
needs of the family; and
new text end

new text begin (6) inform the participant of the right to appeal under section 256J.40.
new text end

new text begin If the lack of an identified activity or service can explain the noncompliance, the
county shall work with the participant to provide the identified activity.
new text end

new text begin (d) If the participant fails to come to the face-to-face meeting, the case manager or a
designee shall attempt at least one home visit. If a face-to-face meeting is not conducted,
the county agency shall send the participant a written notice that includes the information
under paragraph (c).
new text end

new text begin (e) After the requirements of paragraphs (c) and (d) are met and prior to imposition
of a sanction, the county agency shall provide a notice of intent to sanction under section
256J.57, subdivision 2, and, when applicable, a notice of adverse action under section
256J.31.
new text end

new text begin (f) Section 256J.57 applies to this section except to the extent that it is modified
by this subdivision.
new text end

new text begin Subd. 8. new text end

new text begin Funding. new text end

new text begin (a) The commissioner of human services shall treat MFIP
expenditures made to or on behalf of any minor child under this section, who is part of a
household that meets criteria in subdivision 3, as expenditures under a separately funded
state program. These expenditures shall not count toward the state's maintenance of effort
requirements under the federal TANF program.
new text end

new text begin (b) A family is no longer part of a separately funded program under this section if
the caregiver no longer meets the criteria for family stabilization services in subdivision
3, or if it is determined at recertification that the caregiver is meeting the federal work
participation rate, whichever occurs sooner.
new text end

Sec. 17.

new text begin [256J.621] WORK PARTICIPATION BONUS.
new text end

new text begin (a) Upon exiting the diversionary work program (DWP) or upon terminating
MFIP cash assistance with earnings, a participant who is employed may be eligible for
transitional assistance of $100 per month to assist in meeting the family's basic needs as
the participant continues to move toward self-sufficiency.
new text end

new text begin (b) To be eligible for a transitional assistance payment, the participant shall not
receive MFIP cash assistance or diversionary work program assistance during the month
and the participant or participants must meet the following work requirements:
new text end

new text begin (1) if the participant is a single caregiver and has a child under six years of age, the
participant must be employed at least 87 hours per month;
new text end

new text begin (2) if the participant is a single caregiver and does not have a child under six years of
age, the participant must be employed at least 130 hours per month; or
new text end

new text begin (3) if the household is a two-parent family, at least one of the parents must be
employed an average of at least 130 hours per month.
new text end

new text begin Whenever a participant exits the diversionary work program or is terminated from
MFIP and meets the other criteria in this section, transitional assistance is available for up
to 24 consecutive months.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 1, 2009.
new text end

Sec. 18.

Minnesota Statutes 2006, section 256J.626, subdivision 1, is amended to read:

Subdivision 1.

Consolidated fund.

The consolidated fund is established to support
counties and tribes in meeting their duties under this chapter. Counties and tribes must use
funds from the consolidated fund to develop programs and services that are designed to
improve participant outcomes as measured in section 256J.751, subdivision 2. Counties
may use the funds for any allowable expenditures under subdivision 2 new text begin , and to provide
case management services to participants of the family stabilization services new text end . Tribes
may use the funds for any allowable expenditures under subdivision 2, except those in
clauses (1) and (6).

Sec. 19.

Minnesota Statutes 2006, section 256J.626, subdivision 2, is amended to read:

Subd. 2.

Allowable expenditures.

(a) The commissioner must restrict expenditures
under the consolidated fund to benefits and services allowed under title IV-A of the federal
Social Security Act. Allowable expenditures under the consolidated fund may include, but
are not limited to:

(1) short-term, nonrecurring shelter and utility needs that are excluded from the
definition of assistance under Code of Federal Regulations, title 45, section 260.31, for
families who meet the residency requirement in section 256J.12, subdivisions 1 and 1a.
Payments under this subdivision are not considered TANF cash assistance and are not
counted towards the 60-month time limit;

(2) transportation needed to obtain or retain employment or to participate in other
approved work activities new text begin or activities under a family stabilization plan new text end ;

(3) direct and administrative costs of staff to deliver employment services for MFIP
deleted text begin or deleted text end new text begin , new text end the diversionary work program, new text begin or the family stabilization services; new text end to administer
financial assistance deleted text begin , deleted text end new text begin ; new text end and to provide specialized services intended to assist hard-to-employ
participants to transition to work new text begin or transition from the family stabilization services to
MFIP new text end ;

(4) costs of education and training including functional work literacy and English as
a second language;

(5) cost of work supports including tools, clothing, boots, new text begin telephone service, new text end and
other work-related expenses;

(6) county administrative expenses as defined in Code of Federal Regulations, title
45, section 260(b);

(7) services to parenting and pregnant teens;

(8) supported work;

(9) wage subsidies;

(10) child care needed for MFIP deleted text begin or deleted text end new text begin , the new text end diversionary work program new text begin , or the family
stabilization services new text end participants to participate in social services;

(11) child care to ensure that families leaving MFIP or diversionary work program
will continue to receive child care assistance from the time the family no longer qualifies
for transition year child care until an opening occurs under the basic sliding fee child
care program; deleted text begin and
deleted text end

(12) services to help noncustodial parents who live in Minnesota and have minor
children receiving MFIP or DWP assistance, but do not live in the same household as the
child, obtain or retain employment new text begin ; and
new text end

new text begin (13) services to help families participating in the family stabilization services
achieve the greatest possible degree of self-sufficiency new text end .

(b) Administrative costs that are not matched with county funds as provided in
subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation
under this section. The commissioner shall define administrative costs for purposes of
this subdivision.

(c) The commissioner may waive the cap on administrative costs for a county or tribe
that elects to provide an approved supported employment, unpaid work, or community
work experience program for a major segment of the county's or tribe's MFIP population.
The county or tribe must apply for the waiver on forms provided by the commissioner. In
no case shall total administrative costs exceed the TANF limits.

Sec. 20.

Minnesota Statutes 2006, section 256J.626, subdivision 3, is amended to read:

Subd. 3.

Eligibility for services.

Families with a minor child, a pregnant woman,
or a noncustodial parent of a minor child receiving assistance, with incomes below 200
percent of the federal poverty guideline for a family of the applicable size, are eligible
for services funded under the consolidated fund. Counties and tribes must give priority
to families currently receiving MFIP deleted text begin or deleted text end new text begin , the new text end diversionary work program, new text begin or the family
stabilization services, new text end and families at risk of receiving MFIP or diversionary work program.

Sec. 21.

Minnesota Statutes 2006, section 256J.626, subdivision 4, is amended to read:

Subd. 4.

County and tribal biennial service agreements.

(a) Effective January 1,
2004, and each two-year period thereafter, each county and tribe must have in place an
approved biennial service agreement related to the services and programs in this chapter.
In counties with a city of the first class with a population over 300,000, the county must
consider a service agreement that includes a jointly developed plan for the delivery of
employment services with the city. Counties may collaborate to develop multicounty,
multitribal, or regional service agreements.

(b) The service agreements will be completed in a form prescribed by the
commissioner. The agreement must include:

(1) a statement of the needs of the service population and strengths and resources
in the community;

(2) numerical goals for participant outcomes measures to be accomplished during
the biennial period. The commissioner may identify outcomes from section 256J.751,
subdivision 2, as core outcomes for all counties and tribes;

(3) strategies the county or tribe will pursue to achieve the outcome targets.
Strategies must include specification of how funds under this section will be used and may
include community partnerships that will be established or strengthened; deleted text begin and
deleted text end

(4) new text begin strategies the county or tribe will pursue under the family stabilization services;
and
new text end

new text begin (5) new text end other items prescribed by the commissioner in consultation with counties and
tribes.

(c) The commissioner shall provide each county and tribe with information needed
to complete an agreement, including: (1) information on MFIP cases in the county or
tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome
measures; and (4) promising program practices.

(d) The service agreement must be submitted to the commissioner by October 15,
2003, and October 15 of each second year thereafter. The county or tribe must allow
a period of not less than 30 days prior to the submission of the agreement to solicit
comments from the public on the contents of the agreement.

(e) The commissioner must, within 60 days of receiving each county or tribal service
agreement, inform the county or tribe if the service agreement is approved. If the service
agreement is not approved, the commissioner must inform the county or tribe of any
revisions needed prior to approval.

(f) The service agreement in this subdivision supersedes the plan requirements
of section 116L.88.

Sec. 22.

Minnesota Statutes 2006, section 256J.626, subdivision 5, is amended to read:

Subd. 5.

Innovation projects.

Beginning January 1, 2005, no more than $3,000,000
of the funds annually appropriated to the commissioner for use in the consolidated fund
shall be available to the commissioner for projects testing innovative approaches to
improving outcomes for MFIP participants, new text begin family stabilization services participants,
new text end and persons at risk of receiving MFIP as detailed in subdivision 3 new text begin , and for providing
incentives to counties and tribes that exceed performance new text end . Projects shall be targeted to
geographic areas with poor outcomes as specified in section 256J.751, subdivision 5, or to
subgroups within the MFIP case load who are experiencing poor outcomes. new text begin For purposes
of an incentive, a county or tribe exceeds performance if the county or tribe is above the
top of the county or tribe's annualized range of expected performance on the three-year
self-support index under section 256J.751, subdivision 2, clause (7), and achieves a 50
percent MFIP participation rate under section 256J.751, subdivision 2, clause (8), as
averaged across the four quarterly measurements for the most recent year for which the
measurements are available. new text end

Sec. 23.

Minnesota Statutes 2006, section 256J.626, subdivision 6, is amended to read:

Subd. 6.

Base allocation to counties and tribes; definitions.

(a) For purposes of
this section, the following terms have the meanings given.

(1) "2002 historic spending base" means the commissioner's determination of
the sum of the reimbursement related to fiscal year 2002 of county or tribal agency
expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings
related to calendar year 2002 in the base program listed in clause (6), item (v), and the
amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi),
issued to or on behalf of persons residing in the county or tribal service delivery area.

(2) "Adjusted caseload factor" means a factor weighted:

(i) 47 percent on the MFIP cases in each county at four points in time in the most
recent 12-month period for which data is available multiplied by the county's caseload
difficulty factor; and

(ii) 53 percent on the count of adults on MFIP in each county and tribe at four points
in time in the most recent 12-month period for which data is available multiplied by the
county or tribe's caseload difficulty factor.

(3) "Caseload difficulty factor" means a factor determined by the commissioner for
each county and tribe based upon the self-support index described in section 256J.751,
subdivision 2, clause (7).

(4) "Initial allocation" means the amount potentially available to each county or tribe
based on the formula in paragraphs (b) through (h).

(5) "Final allocation" means the amount available to each county or tribe based on
the formula in paragraphs (b) through (h) deleted text begin , after adjustment by subdivision 7 deleted text end .

(6) "Base programs" means the:

(i) MFIP employment and training services under Minnesota Statutes 2002, section
256J.62, subdivision 1, in effect June 30, 2002;

(ii) bilingual employment and training services to refugees under Minnesota Statutes
2002, section 256J.62, subdivision 6, in effect June 30, 2002;

(iii) work literacy language programs under Minnesota Statutes 2002, section
256J.62, subdivision 7, in effect June 30, 2002;

(iv) supported work program authorized in Laws 2001, First Special Session chapter
9, article 17, section 2, in effect June 30, 2002;

(v) administrative aid program under section 256J.76 in effect December 31, 2002;
and

(vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48,
in effect June 30, 2002.

(b) The commissioner shall:

(1) beginning July 1, 2003, determine the initial allocation of funds available under
this section according to clause (2);

(2) allocate all of the funds available for the period beginning July 1, 2003, and
ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's
share of the statewide 2002 historic spending base;

(3) determine for calendar year 2005 the initial allocation of funds to be made
available under this section in proportion to the county or tribe's initial allocation for the
period of July 1, 2003, to December 31, 2004;

(4) determine for calendar year 2006 the initial allocation of funds to be made
available under this section based 90 percent on the proportion of the county or tribe's
share of the statewide 2002 historic spending base and ten percent on the proportion of
the county or tribe's share of the adjusted caseload factor;

(5) determine for calendar year 2007 the initial allocation of funds to be made
available under this section based 70 percent on the proportion of the county or tribe's
share of the statewide 2002 historic spending base and 30 percent on the proportion of the
county or tribe's share of the adjusted caseload factor; and

(6) determine for calendar year 2008 and subsequent years the initial allocation of
funds to be made available under this section based 50 percent on the proportion of the
county or tribe's share of the statewide 2002 historic spending base and 50 percent on the
proportion of the county or tribe's share of the adjusted caseload factor.

(c) With the commencement of a new or expanded tribal TANF program or an
agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of
the responsibilities of particular counties under this section are transferred to a tribe,
the commissioner shall:

(1) in the case where all responsibilities under this section are transferred to a tribal
program, determine the percentage of the county's current caseload that is transferring to a
tribal program and adjust the affected county's allocation accordingly; and

(2) in the case where a portion of the responsibilities under this section are
transferred to a tribal program, the commissioner shall consult with the affected county or
counties to determine an appropriate adjustment to the allocation.

deleted text begin (d) Effective January 1, 2005, counties and tribes will have their final allocations
adjusted based on the performance provisions of subdivision 7.
deleted text end

Sec. 24.

Minnesota Statutes 2006, section 259.67, subdivision 4, is amended to read:

Subd. 4.

Eligibility conditions.

(a) The placing agency shall use the AFDC
requirements as specified in federal law as of July 16, 1996, when determining the child's
eligibility for adoption assistance under title IV-E of the Social Security Act. If the child
does not qualify, the placing agency shall certify a child as eligible for state funded
adoption assistance only if the following criteria are met:

(1) Due to the child's characteristics or circumstances it would be difficult to provide
the child an adoptive home without adoption assistance.

(2)(i) A placement agency has made reasonable efforts to place the child for adoption
without adoption assistance, but has been unsuccessful; or

(ii) the child's licensed foster parents desire to adopt the child and it is determined by
the placing agency that the adoption is in the best interest of the child.

(3) The child has been a ward of the commissioner, a Minnesota-licensed
child-placing agency, or a tribal social service agency of Minnesota recognized by the
Secretary of the Interior. The placing agency shall not certify a child who remains
under the jurisdiction of the sending agency pursuant to section 260.851, article 5, for
state-funded adoption assistance when Minnesota is the receiving state.

(b) For purposes of this subdivision, the characteristics or circumstances that may
be considered in determining whether a child is a child with special needs under United
States Code, title 42, chapter 7, subchapter IV, part E, or meets the requirements of
paragraph (a), clause (1), are the following:

(1) The child is a member of a sibling group to be placed as one unit in which at
least one sibling is older than 15 months of age or is described in clause (2) or (3).

(2) The child has documented physical, mental, emotional, or behavioral disabilities.

(3) The child has a high risk of developing physical, mental, emotional, or behavioral
disabilities.

(4) The child is adopted according to tribal law without a termination of parental
rights or relinquishment, provided that the tribe has documented the valid reason why the
child cannot or should not be returned to the home of the child's parent.

new text begin (5) The child is five years of age or older.
new text end

(c) When a child's eligibility for adoption assistance is based upon the high risk of
developing physical, mental, emotional, or behavioral disabilities, payments shall not be
made under the adoption assistance agreement unless and until the potential disability
manifests itself as documented by an appropriate health care professional.

Sec. 25. new text begin NOT ASSESSING TANF PENALTIES AGAINST COUNTIES.
new text end

new text begin From October 2006 through October 2007, if the state does not meet the federal
work participation requirements, and the state is penalized by a reduction in the TANF
grant, the state shall not assess penalties against the counties.
new text end

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

new text begin Minnesota Statutes 2006, sections 256J.24, subdivision 6; 256J.29; 256J.37,
subdivisions 3a and 3b; and 256J.626, subdivisions 7 and 9, new text end new text begin are repealed.
new text end

ARTICLE 3

LICENSING

Section 1.

Minnesota Statutes 2006, section 245A.035, is amended to read:

245A.035 deleted text begin RELATIVE FOSTER CARE; deleted text end new text begin UNLICENSED new text end EMERGENCY
deleted text begin LICENSE deleted text end new text begin RELATIVE PLACEMENT new text end .

Subdivision 1.

deleted text begin Grant of deleted text end Emergency deleted text begin license deleted text end new text begin placement new text end .

Notwithstanding section
245A.03, subdivision 2a, or 245C.13, subdivision 2, a county agency may place a child
deleted text begin for foster care deleted text end with a relative who is not licensed to provide foster care, provided the
requirements of deleted text begin subdivision 2 deleted text end new text begin this section new text end are met. As used in this section, the term
"relative" has the meaning given it under section 260C.007, subdivision 27.

Subd. 2.

Cooperation with emergency deleted text begin licensing deleted text end new text begin placement new text end process.

(a) A county
agency that places a child with a relative who is not licensed to provide foster care must
deleted text begin begin the process of securing an emergency license for the relative as soon as possible
and must deleted text end conduct the initial inspection required by subdivision 3, clause (1), whenever
possible, prior to placing the child in the relative's home, but no later than three working
days after placing the child in the home. A child placed in the home of a relative who is
not licensed to provide foster care must be removed from that home if the relative fails
to cooperate with the county agency deleted text begin in securing an emergency foster care license. The
commissioner may issue an emergency foster care license to a relative with whom the
county agency wishes to place or has placed a child for foster care, or to a relative with
whom a child has been placed by court order deleted text end .

(b) If a child is to be placed in the home of a relative not licensed to provide foster
care, either the placing agency or the county agency in the county in which the relative
lives shall conduct the emergency deleted text begin licensing deleted text end new text begin placement new text end process as required in this section.

Subd. 3.

Requirements for emergency deleted text begin license deleted text end new text begin placement new text end .

Before an emergency
deleted text begin license deleted text end new text begin placement new text end may be deleted text begin issued deleted text end new text begin made new text end , the following requirements must be met:

(1) the county agency must conduct an initial inspection of the premises where
the deleted text begin foster care deleted text end new text begin placement new text end is to be deleted text begin provided deleted text end new text begin made new text end to ensure the health and safety of any
child placed in the home. The county agency shall conduct the inspection using a form
developed by the commissioner;

(2) at the time of the inspection or placement, whichever is earlier, new text begin the county
agency must provide new text end the relative being considered for an emergency deleted text begin license shall receive deleted text end new text begin
placement new text end an application form for a child foster care license;

(3) whenever possible, prior to placing the child in the relative's home, the relative
being considered for an emergency deleted text begin license deleted text end new text begin placement new text end shall provide the information
required by section 245C.05; and

(4) if the county determines, prior to the deleted text begin issuance of an deleted text end emergency deleted text begin license deleted text end new text begin
placement new text end , that anyone requiring a background study deleted text begin may be deleted text end new text begin prior to licensure of the
home is new text end disqualified under deleted text begin section 245C.14 and deleted text end chapter 245C, and the disqualification
is one which the commissioner cannot set aside, an emergency deleted text begin license shall deleted text end new text begin placement
must new text end not be deleted text begin issued deleted text end new text begin made new text end .

Subd. 4.

Applicant study.

When the county agency has received the information
required by section 245C.05, the county agency shall deleted text begin begin an applicant study according to
the procedures in chapter 245C. The commissioner may issue an emergency license upon
recommendation of the county agency once the initial inspection has been successfully
completed and the information necessary to begin the applicant background study has been
provided. If the county agency does not recommend that the emergency license be granted,
the agency shall notify the relative in writing that the agency is recommending denial to the
commissioner; shall remove any child who has been placed in the home prior to licensure;
and shall inform the relative in writing of the procedure to request review pursuant to
subdivision 6. An emergency license shall be effective until a child foster care license is
granted or denied, but shall in no case remain in effect more than 120 days from the date
of placement deleted text end new text begin submit the information to the commissioner according to section 245C.05 new text end .

Subd. 5.

Child foster care license application.

(a) The new text begin relatives with whom the new text end
emergency deleted text begin license holder deleted text end new text begin placement has been made new text end shall complete the child foster care
license application and necessary paperwork within ten days of the placement. The county
agency shall assist the deleted text begin emergency license holder deleted text end new text begin applicant new text end to complete the application.
The granting of a child foster care license to a relative shall be under the procedures in this
chapter and according to the standards deleted text begin set forth by foster care rule deleted text end new text begin in Minnesota Rules,
chapter 2960 new text end . In licensing a relative, the commissioner shall consider the importance of
maintaining the child's relationship with relatives as an additional significant factor in
determining whether deleted text begin to deleted text end new text begin a background study disqualification should be new text end set aside deleted text begin a licensing
disqualifier deleted text end under section 245C.22, or deleted text begin to grant deleted text end a variance deleted text begin of licensing requirements deleted text end new text begin should
be granted new text end under deleted text begin sections 245C.21 to 245C.27 deleted text end new text begin section 245C.30 new text end .

(b) When the county or private child-placing agency is processing an application
for child foster care licensure of a relative as defined in section 260B.007, subdivision
12, or 260C.007, subdivision 27, the county agency or child-placing agency must explain
the licensing process to the prospective licensee, including the background study process
and the procedure for reconsideration of an initial disqualification for licensure. The
county or private child-placing agency must also provide the prospective relative licensee
with information regarding appropriate options for legal representation in the pertinent
geographic area. If a relative is initially disqualified under section 245C.14, the deleted text begin county
or child-placing agency deleted text end new text begin commissioner new text end must provide written notice of the reasons for the
disqualification and the right to request a reconsideration by the commissioner as required
under section 245C.17.

(c) The commissioner shall maintain licensing data so that activities related to
applications and licensing actions for relative foster care providers may be distinguished
from other child foster care settings.

deleted text begin Subd. 6. deleted text end

deleted text begin Denial of emergency license. deleted text end

deleted text begin If the commissioner denies an application
for an emergency foster care license under this section, that denial must be in writing and
must include reasons for the denial. Denial of an emergency license is not subject to
appeal under chapter 14. The relative may request a review of the denial by submitting
to the commissioner a written statement of the reasons an emergency license should be
granted. The commissioner shall evaluate the request for review and determine whether
to grant the emergency license. The commissioner's review shall be based on a review
of the records submitted by the county agency and the relative. Within 15 working
days of the receipt of the request for review, the commissioner shall notify the relative
requesting review in written form whether the emergency license will be granted. The
commissioner's review shall be based on a review of the records submitted by the county
agency and the relative. A child shall not be placed or remain placed in the relative's home
while the request for review is pending. Denial of an emergency license shall not preclude
an individual from reapplying for an emergency license or from applying for a child foster
care license. The decision of the commissioner is the final administrative agency action.
deleted text end

Sec. 2.

Minnesota Statutes 2006, section 245A.16, subdivision 1, is amended to read:

Subdivision 1.

Delegation of authority to agencies.

(a) County agencies and
private agencies that have been designated or licensed by the commissioner to perform
licensing functions and activities under section 245A.04 deleted text begin and deleted text end new text begin ; background studies for adult
foster care, family adult day services, and until December 31, 2007, family child care
under new text end chapter 245C deleted text begin , deleted text end new text begin ; new text end to recommend denial of applicants under section 245A.05 deleted text begin , deleted text end new text begin ; new text end to issue
correction orders, to issue variances, and recommend a conditional license under section
245A.06 deleted text begin , deleted text end new text begin ; new text end or to recommend suspending or revoking a license or issuing a fine under
section 245A.07, shall comply with rules and directives of the commissioner governing
those functions and with this section. The following variances are excluded from the
delegation of variance authority and may be issued only by the commissioner:

(1) dual licensure of family child care and child foster care, dual licensure of child
and adult foster care, and adult foster care and family child care;

(2) adult foster care maximum capacity;

(3) adult foster care minimum age requirement;

(4) child foster care maximum age requirement;

(5) variances regarding disqualified individuals except that county agencies may
issue variances under section 245C.30 regarding disqualified individuals when the county
is responsible for conducting a consolidated reconsideration according to sections 245C.25
and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination
and a disqualification based on serious or recurring maltreatment; and

(6) the required presence of a caregiver in the adult foster care residence during
normal sleeping hours.

(b) County agencies must report deleted text begin :
deleted text end

deleted text begin (1) deleted text end information about disqualification reconsiderations under sections 245C.25 and
245C.27, subdivision 2, deleted text begin clauses deleted text end new text begin paragraphs new text end (a) and (b), and variances granted under
paragraph (a), clause (5), to the commissioner at least monthly in a format prescribed by
the commissioner deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) for relative child foster care applicants and license holders, the number of
relatives, as defined in section deleted text begin 260C.007, subdivision 27 deleted text end , and household members of
relatives who are disqualified under section ; the disqualifying characteristics
under section ; the number of these individuals who requested reconsideration
under section ; the number of set-asides under section ; and variances
under section issued. This information shall be reported to the commissioner
annually by January 15 of each year in a format prescribed by the commissioner.
deleted text end

(c) For family day care programs, the commissioner may authorize licensing reviews
every two years after a licensee has had at least one annual review.

(d) For family adult day services programs, the commissioner may authorize
licensing reviews every two years after a licensee has had at least one annual review.

(e) A license issued under this section may be issued for up to two years.

Sec. 3.

Minnesota Statutes 2006, section 245A.16, subdivision 3, is amended to read:

Subd. 3.

Recommendations to the commissioner.

The county or private agency
shall not make recommendations to the commissioner regarding licensure without
first conducting an inspection, new text begin and for adult foster care, family adult day services, and
until December 31, 2007, family child care, a background new text end study of the applicant deleted text begin , and
evaluation pursuant to deleted text end new text begin under new text end chapter 245C. The county or private agency must forward its
recommendation to the commissioner regarding the appropriate licensing action within 20
working days of receipt of a completed application.

Sec. 4.

Minnesota Statutes 2006, section 245C.02, is amended by adding a subdivision
to read:

new text begin Subd. 14a. new text end

new text begin Private agency. new text end

new text begin "Private agency" has the meaning given in section
245A.02, subdivision 12.
new text end

Sec. 5.

Minnesota Statutes 2006, section 245C.04, subdivision 1, is amended to read:

Subdivision 1.

Licensed programs.

(a) The commissioner shall conduct a
background study of an individual required to be studied under section 245C.03,
subdivision 1, at least upon application for initial license for all license types.

(b) The commissioner shall conduct a background study of an individual required
to be studied under section 245C.03, subdivision 1, at reapplication for a license for
deleted text begin family child care, deleted text end deleted text begin child foster care, and deleted text end adult foster care new text begin , family adult day services, and
until January 1, 2008, family child care new text end .

(c) The commissioner is not required to conduct a study of an individual at the time
of reapplication for a license if the individual's background study was completed by the
commissioner of human services for an adult foster care license holder that is also:

(1) registered under chapter 144D; or

(2) licensed to provide home and community-based services to people with
disabilities at the foster care location and the license holder does not reside in the foster
care residence; and

(3) the following conditions are met:

(i) a study of the individual was conducted either at the time of initial licensure or
when the individual became affiliated with the license holder;

(ii) the individual has been continuously affiliated with the license holder since
the last study was conducted; and

(iii) the last study of the individual was conducted on or after October 1, 1995.

(d) new text begin From July 1, 2007, to June 30, 2009, the commissioner of human services
shall conduct a study of an individual required to be studied under section 245C.03, at
the time of reapplication for a child foster care license. The county or private agency
shall collect and forward to the commissioner the information required under section
245C.05, subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The
background study conducted by the commissioner of human services under this paragraph
must include a review of the information required under section 245C.08, subdivisions
1, paragraph (a), clauses (1) to (4), and 3.
new text end

new text begin (e) From January 1, 2008, to December 31, 2009, the commissioner shall conduct
a study of an individual required to be studied under section 245C.03, at the time of
reapplication for a family child care license. The county shall collect and forward to the
commissioner the information required under section 245C.05, subdivisions 1, paragraphs
(a) and (b), and 5, paragraphs (a) and (b). The background study conducted by the
commissioner under this paragraph must include a review of the information required
under section 245C.08, subdivisions 1, paragraph (a), clauses (1) to (4), and 3.
new text end

new text begin (f) The commissioner of human services shall conduct a background study of an
individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6),
who is newly affiliated with a child foster care license holder, and beginning January 1,
2008, a family child care license. The county or private agency shall collect and forward
to the commissioner the information required under section 245C.05, subdivisions 1 and
5. The background study conducted by the commissioner of human services under this
paragraph must include a review of the information required under section 245C.08,
subdivisions 1, paragraph (a), clauses (1) to (4), and 3.
new text end

new text begin (g) new text end Applicants for licensure, license holders, and other entities as provided in this
chapter must submit completed background study forms to the commissioner before
individuals specified in section 245C.03, subdivision 1, begin positions allowing direct
contact in any licensed program.

deleted text begin (e) deleted text end new text begin (h) new text end For purposes of this section, a physician licensed under chapter 147 is
considered to be continuously affiliated upon the license holder's receipt from the
commissioner of health or human services of the physician's background study results.

Sec. 6.

Minnesota Statutes 2006, section 245C.05, subdivision 1, is amended to read:

Subdivision 1.

Individual studied.

(a) The individual who is the subject of the
background study must provide the applicant, license holder, or other entity under section
245C.04 with sufficient information to ensure an accurate study, including:

(1) the individual's first, middle, and last name and all other names by which the
individual has been known;

(2) home address, city, and state of residence;

(3) zip code;

(4) sex;

(5) date of birth; and

(6) Minnesota driver's license number or state identification number.

(b) Every subject of a background study conducted new text begin or initiated new text end by counties or private
agencies under this chapter must also provide the home address, city, county, and state of
residence for the past five years.

new text begin (c) Every subject of a background study related to child foster care licensed through
a private agency shall also provide the commissioner a signed consent for the release of
any information received from national crime information databases to the private agency
that initiated the background study.
new text end

new text begin (d) The subject of a background study shall provide fingerprints as required in
subdivision 5, paragraph (c).
new text end

Sec. 7.

Minnesota Statutes 2006, section 245C.05, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin County or private agency. new text end

new text begin For background studies related to child
foster care, and beginning January 1, 2008, for studies related to family child care, county
and private agencies must collect the information under subdivision 1 and forward it to
the commissioner.
new text end

Sec. 8.

Minnesota Statutes 2006, section 245C.05, subdivision 4, is amended to read:

Subd. 4.

Electronic transmission.

For background studies conducted by the
Department of Human Services, the commissioner shall implement a system for the
electronic transmission of:

(1) background study information to the commissioner; deleted text begin and
deleted text end

(2) background study results to the license holder deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) background study results to county and private agencies for background studies
conducted by the commissioner for child foster care, and beginning January 1, 2008,
also for family child care.
new text end

Sec. 9.

Minnesota Statutes 2006, section 245C.05, subdivision 5, is amended to read:

Subd. 5.

Fingerprints.

(a) new text begin Except as provided in paragraph (c), new text end for any background
study completed under this chapter, when the commissioner has reasonable cause to
believe that further pertinent information may exist on the subject of the background
study, the subject shall provide the commissioner with a set of classifiable fingerprints
obtained from an authorized deleted text begin law enforcement deleted text end agency.

(b) For purposes of requiring fingerprints, the commissioner has reasonable cause
when, but not limited to, the:

(1) information from the Bureau of Criminal Apprehension indicates that the subject
is a multistate offender;

(2) information from the Bureau of Criminal Apprehension indicates that multistate
offender status is undetermined; or

(3) commissioner has received a report from the subject or a third party indicating
that the subject has a criminal history in a jurisdiction other than Minnesota.

new text begin (c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for
background studies conducted by the commissioner for child foster care, the subject of the
background study shall provide the commissioner with a set of classifiable fingerprints
obtained from an authorized agency.
new text end

Sec. 10.

Minnesota Statutes 2006, section 245C.05, subdivision 7, is amended to read:

Subd. 7.

Probation officer and corrections agent.

(a) A probation officer or
corrections agent shall notify the commissioner of an individual's conviction if the
individual is:

(1) affiliated with a program or facility regulated by the Department of Human
Services or Department of Health, a facility serving children or youth licensed by the
Department of Corrections, or any type of home care agency or provider of personal care
assistance services; and

(2) convicted of a crime constituting a disqualification under section 245C.14.

(b) For the purpose of this subdivision, "conviction" has the meaning given it
in section 609.02, subdivision 5.

(c) The commissioner, in consultation with the commissioner of corrections, shall
develop forms and information necessary to implement this subdivision and shall provide
the forms and information to the commissioner of corrections for distribution to local
probation officers and corrections agents.

(d) The commissioner shall inform individuals subject to a background study that
criminal convictions for disqualifying crimes will be reported to the commissioner by the
corrections system.

(e) A probation officer, corrections agent, or corrections agency is not civilly or
criminally liable for disclosing or failing to disclose the information required by this
subdivision.

(f) Upon receipt of disqualifying information, the commissioner shall provide the
notice required under section 245C.17, as appropriate, to agencies on record as having
initiated a background study or making a request for documentation of the background
study status of the individual.

(g) This subdivision does not apply to family child care deleted text begin and child foster care deleted text end
programs new text begin until January 1, 2008 new text end .

Sec. 11.

Minnesota Statutes 2006, section 245C.08, subdivision 1, is amended to read:

Subdivision 1.

Background studies conducted by commissioner of human
services.

(a) For a background study conducted by the commissioner, the commissioner
shall review:

(1) information related to names of substantiated perpetrators of maltreatment of
vulnerable adults that has been received by the commissioner as required under section
626.557, subdivision 9c, paragraph (i);

(2) the commissioner's records relating to the maltreatment of minors in licensed
programs, and from deleted text begin county agency deleted text end findings of maltreatment of minors as indicated
through the social service information system;

(3) information from juvenile courts as required in subdivision 4 for individuals
listed in section 245C.03, subdivision 1, clauses (2), (5), and (6); deleted text begin and
deleted text end

(4) information from the Bureau of Criminal Apprehension deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) for a background study related to a child foster care application for licensure, the
commissioner shall also review:
new text end

new text begin (i) information from the child abuse and neglect registry for any state in which the
background study subject has resided in for the past five years; and
new text end

new text begin (ii) information from national crime information databases.
new text end

(b) Notwithstanding expungement by a court, the commissioner may consider
information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
received notice of the petition for expungement and the court order for expungement is
directed specifically to the commissioner.

Sec. 12.

Minnesota Statutes 2006, section 245C.08, subdivision 2, is amended to read:

Subd. 2.

Background studies conducted by a county deleted text begin or private deleted text end agency.

(a) For
a background study conducted by a county deleted text begin or private deleted text end agency for deleted text begin child foster care, deleted text end adult
foster care, deleted text begin and family child care homes deleted text end new text begin family adult day services, and until January 1,
2008, family child care services new text end , the commissioner shall review:

(1) information from the county agency's record of substantiated maltreatment
of adults and the maltreatment of minors;

(2) information from juvenile courts as required in subdivision 4 for individuals
listed in section 245C.03, subdivision 1, clauses (2), (5), and (6);

(3) information from the Bureau of Criminal Apprehension; and

(4) arrest and investigative records maintained by the Bureau of Criminal
Apprehension, county attorneys, county sheriffs, courts, county agencies, local police, the
National Criminal Records Repository, and criminal records from other states.

(b) If the individual has resided in the county for less than five years, the study shall
include the records specified under paragraph (a) for the previous county or counties of
residence for the past five years.

(c) Notwithstanding expungement by a court, the county deleted text begin or private deleted text end agency may
consider information obtained under paragraph (a), clauses (3) and (4), unless the
commissioner received notice of the petition for expungement and the court order for
expungement is directed specifically to the commissioner.

Sec. 13.

Minnesota Statutes 2006, section 245C.10, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Temporary personnel agencies, educational programs, and professional
services agencies. new text end

new text begin The commissioner shall recover the cost of the background studies
initiated by temporary personnel agencies, educational programs, and professional
services agencies that initiate background studies under section 245C.03, subdivision 4,
through a fee of no more than $20 per study charged to the agency. The fees collected
under this subdivision are appropriated to the commissioner for the purpose of conducting
background studies.
new text end

Sec. 14.

Minnesota Statutes 2006, section 245C.11, subdivision 1, is amended to read:

Subdivision 1.

new text begin Adult new text end foster care; criminal conviction data.

For individuals who
are required to have background studies under section 245C.03, subdivisions 1 and 2, and
who have been continuously affiliated with deleted text begin a deleted text end new text begin an adult new text end foster care provider that is licensed
in more than one county, criminal conviction data may be shared among those counties in
which the new text begin adult new text end foster care programs are licensed. A county agency's receipt of criminal
conviction data from another county agency shall meet the criminal data background
study requirements of this chapter.

Sec. 15.

Minnesota Statutes 2006, section 245C.11, subdivision 2, is amended to read:

Subd. 2.

Jointly licensed programs.

A county agency may accept a background
study completed by the commissioner under this chapter in place of the background study
required under section 245A.16, subdivision 3, in programs with joint licensure as home
and community-based services and adult foster care for people with developmental
disabilities when the license holder does not reside in the new text begin adult new text end foster care residence and
the subject of the study has been continuously affiliated with the license holder since the
date of the commissioner's study.

Sec. 16.

Minnesota Statutes 2006, section 245C.12, is amended to read:

245C.12 BACKGROUND STUDY; TRIBAL ORGANIZATIONS.

new text begin (a) new text end For the purposes of background studies completed by tribal organizations
performing licensing activities otherwise required of the commissioner under this chapter,
after obtaining consent from the background study subject, tribal licensing agencies shall
have access to criminal history data in the same manner as county licensing agencies and
private licensing agencies under this chapter.

new text begin (b) Tribal organizations may contract with the commissioner to obtain background
study data on individuals under tribal jurisdiction related to adoptions according to
section 245C.34. Tribal organizations may also contract with the commissioner to obtain
background study data on individuals under tribal jurisdiction related to child foster care
according to section 245C.34.
new text end

Sec. 17.

Minnesota Statutes 2006, section 245C.16, subdivision 1, is amended to read:

Subdivision 1.

Determining immediate risk of harm.

(a) If the commissioner
determines that the individual studied has a disqualifying characteristic, the commissioner
shall review the information immediately available and make a determination as to the
subject's immediate risk of harm to persons served by the program where the individual
studied will have direct contact.

(b) The commissioner shall consider all relevant information available, including the
following factors in determining the immediate risk of harm:

(1) the recency of the disqualifying characteristic;

(2) the recency of discharge from probation for the crimes;

(3) the number of disqualifying characteristics;

(4) the intrusiveness or violence of the disqualifying characteristic;

(5) the vulnerability of the victim involved in the disqualifying characteristic;

(6) the similarity of the victim to the persons served by the program where the
individual studied will have direct contact; and

(7) whether the individual has a disqualification from a previous background study
that has not been set aside.

(c) This section does not apply when the subject of a background study is regulated
by a health-related licensing board as defined in chapter 214, and the subject is determined
to be responsible for substantiated maltreatment under section 626.556 or 626.557.

(d) new text begin This section does not apply to a background study related to an initial application
for a child foster care license.
new text end

new text begin (e) new text end If the commissioner has reason to believe, based on arrest information or an
active maltreatment investigation, that an individual poses an imminent risk of harm to
persons receiving services, the commissioner may order that the person be continuously
supervised or immediately removed pending the conclusion of the maltreatment
investigation or criminal proceedings.

Sec. 18.

Minnesota Statutes 2006, section 245C.17, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Notice to county or private agency. new text end

new text begin For studies on individuals related
to a license to provide child foster care, and beginning January 1, 2008, for family child
care, the commissioner shall also provide a notice of the background study results to the
county or private agency that initiated the background study.
new text end

Sec. 19.

Minnesota Statutes 2006, section 245C.21, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Submission of reconsideration request to county or private agency.
new text end

new text begin (a) For disqualifications related to studies conducted by county agencies, and for
disqualifications related to studies conducted by the commissioner for child foster care,
and beginning January 1, 2008, for family child care, the individual shall submit the
request for reconsideration to the county or private agency that conducted or initiated the
background study.
new text end

new text begin (b) A reconsideration request shall be submitted within the time frames specified in
subdivision 2.
new text end

new text begin (c) The county or private agency shall forward the individual's request for
reconsideration and provide the commissioner with a recommendation whether to set aside
the individual's disqualification.
new text end

Sec. 20.

Minnesota Statutes 2006, section 245C.23, subdivision 2, is amended to read:

Subd. 2.

Commissioner's notice of disqualification that is not set aside.

(a) The
commissioner shall notify the license holder of the disqualification and order the license
holder to immediately remove the individual from any position allowing direct contact
with persons receiving services from the license holder if:

(1) the individual studied does not submit a timely request for reconsideration
under section 245C.21;

(2) the individual submits a timely request for reconsideration, but the commissioner
does not set aside the disqualification for that license holder under section 245C.22;

(3) an individual who has a right to request a hearing under sections 245C.27 and
256.045, or 245C.28 and chapter 14 for a disqualification that has not been set aside, does
not request a hearing within the specified time; or

(4) an individual submitted a timely request for a hearing under sections 245C.27
and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the
disqualification under section 245A.08, subdivision 5, or 256.045.

(b) If the commissioner does not set aside the disqualification under section 245C.22,
and the license holder was previously ordered under section 245C.17 to immediately
remove the disqualified individual from direct contact with persons receiving services or
to ensure that the individual is under continuous, direct supervision when providing direct
contact services, the order remains in effect pending the outcome of a hearing under
sections 245C.27 and 256.045, or 245C.28 and chapter 14.

new text begin (c) For background studies related to child foster care, and beginning January
1, 2008, for family child care, the commissioner shall also notify the county or private
agency that initiated the study of the results of the reconsideration.
new text end

Sec. 21.

new text begin [245C.33] ADOPTION BACKGROUND STUDY REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Background studies conducted by commissioner. new text end

new text begin Before
placement of a child for purposes of adoption, the commissioner shall conduct a
background study on individuals listed in section 259.41, subdivision 3, for county
agencies and private agencies licensed to place children for adoption.
new text end

new text begin Subd. 2. new text end

new text begin Information and data provided to county or private agency. new text end

new text begin The
subject of the background study shall provide the following information to the county
or private agency:
new text end

new text begin (1) the information specified in section 245C.05;
new text end

new text begin (2) a set of classifiable fingerprints obtained from an authorized agency; and
new text end

new text begin (3) for studies initiated by a private agency, a signed consent for the release of
information received from national crime information databases to the private agency.
new text end

new text begin Subd. 3. new text end

new text begin Information and data provided to commissioner. new text end

new text begin The county or private
agency shall forward the data collected under subdivision 2 to the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Information commissioner reviews. new text end

new text begin (a) The commissioner shall review
the following information regarding the background study subject:
new text end

new text begin (1) the information under section 245C.08, subdivisions 1, 3, and 4;
new text end

new text begin (2) information from the child abuse and neglect registry for any state in which the
subject has resided for the past five years; and
new text end

new text begin (3) information from national crime information databases.
new text end

new text begin (b) The commissioner shall provide any information collected under this subdivision
to the county or private agency that initiated the background study. The commissioner
shall indicate if the information collected shows that the subject of the background study
has a conviction listed in United States Code, title 42, section 671(a)(20)(A).
new text end

Sec. 22.

new text begin [245C.34] ADOPTION AND CHILD FOSTER CARE BACKGROUND
STUDIES; TRIBAL ORGANIZATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Background studies may be conducted by commissioner. new text end

new text begin (a)
Tribal organizations may contract with the commissioner under section 245C.12 to obtain
background study data on individuals under tribal jurisdiction related to adoptions.
new text end

new text begin (b) Tribal organizations may contract with the commissioner under section 245C.12
to obtain background study data on individuals under tribal jurisdiction related to child
foster care.
new text end

new text begin (c) Background studies initiated by tribal organizations under paragraphs (a) and (b)
must be conducted as provided in subdivisions 2 and 3.
new text end

new text begin Subd. 2. new text end

new text begin Information and data provided to tribal organization. new text end

new text begin The background
study subject must provide the following information to the tribal organization:
new text end

new text begin (1) for background studies related to adoptions, the information under section
245C.05;
new text end

new text begin (2) for background studies related to child foster care, the information under section
245C.05;
new text end

new text begin (3) a set of classifiable fingerprints obtained from an authorized agency; and
new text end

new text begin (4) a signed consent for the release of information received from national crime
information databases to the tribal organization.
new text end

new text begin Subd. 3. new text end

new text begin Information and data provided to commissioner. new text end

new text begin The tribal organization
shall forward the data collected under subdivision 2 to the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Information commissioner reviews. new text end

new text begin (a) The commissioner shall review
the following information regarding the background study subject:
new text end

new text begin (1) the information under section 245C.08, subdivisions 1, 3, and 4;
new text end

new text begin (2) information from the child abuse and neglect registry for any state in which the
subject has resided for the past five years; and
new text end

new text begin (3) information from national crime information databases.
new text end

new text begin (b) The commissioner shall provide any information collected under this subdivision
to the tribal organization that initiated the background study. The commissioner shall
indicate if the information collected shows that the subject of the background study has a
conviction listed in United States Code, title 42, section 671(a)(20)(A).
new text end

Sec. 23.

Minnesota Statutes 2006, section 259.20, subdivision 2, is amended to read:

Subd. 2.

Other applicable law.

new text begin (a) new text end Portions of chapters 245A, 245C, 257, 260, and
317A may also affect the adoption of a particular child.

new text begin (b) new text end Provisions of the Indian Child Welfare Act, United States Code, title 25, chapter
21, sections 1901-1923, may also apply in the adoption of an Indian child, and may
preempt specific provisions of this chapter.

new text begin (c) Consistent with chapters 245A and 245C and Public Law 109-248, a completed
background study is required before the approval of any foster or adoptive placement in
a related or an unrelated home.
new text end

Sec. 24.

Minnesota Statutes 2006, section 259.29, subdivision 1, is amended to read:

Subdivision 1.

Best interests of the child.

(a) The policy of the state of Minnesota
is to ensure that the best interests of the child are met by requiring individualized
determination of the needs of the child and of how the adoptive placement will serve the
needs of the child.

(b) Among the factors the agency shall consider in determining the needs of the child
are those specified under section 260C.193, subdivision 3, paragraph (b).

new text begin (c) Except for emergency placements provided for in section 245A.03, a completed
background study is required under section 245C.33 before the approval of an adoptive
placement in a home.
new text end

Sec. 25.

Minnesota Statutes 2006, section 259.41, is amended to read:

259.41 ADOPTION STUDY.

Subdivision 1.

Study required before placement; certain relatives excepted.

(a)
An new text begin approved new text end adoption study new text begin ; completed background study, as required under section
245C.33; new text end and written report must be completed before the child is placed in a prospective
adoptive home under this chapter, except as allowed by section 259.47, subdivision 6.
In an agency placement, the report must be filed with the court at the time the adoption
petition is filed. In a direct adoptive placement, the report must be filed with the court in
support of a motion for temporary preadoptive custody under section 259.47, subdivision
3, or, if the study and report are complete, in support of an emergency order under section
259.47, subdivision 6. The study and report shall be completed by a licensed child-placing
agency and must be thorough and comprehensive. The study and report shall be paid for
by the prospective adoptive parent, except as otherwise required under section 259.67
or 259.73.

(b) A placement for adoption with an individual who is related to the child, as
defined by section 245A.02, subdivision 13, is not subject to this section except as required
by deleted text begin section deleted text end new text begin sections 245C.33 and new text end 259.53, subdivision 2, paragraph (c).

(c) In the case of a licensed foster parent seeking to adopt a child who is in the foster
parent's care, any portions of the foster care licensing process that duplicate requirements
of the home study may be submitted in satisfaction of the relevant requirements of this
section.

Subd. 2.

Form of study.

(a) The adoption study must include at least one in-home
visit with the prospective adoptive parent. At a minimum, the study must deleted text begin include deleted text end new text begin
document new text end the following new text begin information new text end about the prospective adoptive parent:

(1) a background deleted text begin check deleted text end new text begin study new text end as required by subdivision 3 new text begin and section 245C.33 new text end ,
deleted text begin and deleted text end new text begin including:
new text end

new text begin (i) new text end an deleted text begin evaluation deleted text end new text begin assessment of the data and information provided by section
245C.33, subdivision 4, to determine if the prospective adoptive parent and any other
person over the age of 13 living in the home has a felony conviction consistent with
subdivision 3 and section 471(a)(2) of the Social Security Act; and
new text end

new text begin (ii) an assessment new text end of the effect of deleted text begin a deleted text end new text begin any new text end conviction or finding of substantiated
maltreatment on the deleted text begin ability to deleted text end new text begin capacity of the prospective adoptive parent to safely new text end care
for new text begin and parent new text end a child;

(2) a medical and social history and assessment of current health;

(3) an assessment of potential parenting skills;

(4) an assessment of ability to provide adequate financial support for a child; and

(5) an assessment of the level of knowledge and awareness of adoption issues
including, where appropriate, matters relating to interracial, cross-cultural, and special
needs adoptions.

(b) The adoption study is the basis for completion of a written report. The report
must be in a format specified by the commissioner and must contain recommendations
regarding the suitability of the subject of the study to be an adoptive parent.

Subd. 3.

Background deleted text begin check; affidavit of history deleted text end new text begin study new text end .

(a) At the time an adoption
study is commenced, each prospective adoptive parent must:

(1) authorize access by the agency to any private data needed to complete the study;

(2) provide all addresses at which the prospective adoptive parent and anyone in the
household over the age of 13 has resided in the previous five years; and

(3) disclose any names used previously other than the name used at the time of
the study.

(b) When the requirements of paragraph (a) have been met, the agency shall
immediately deleted text begin begin deleted text end new text begin initiate new text end a background deleted text begin check, deleted text end new text begin study under section 245C.33 to be
completed by the commissioner new text end on each person over the age of 13 living in the home deleted text begin ,
consisting, at a minimum, of the following: deleted text end new text begin . As required under section 245C.33 and Public
Law 109-248, a completed background study is required before the approval of any foster
or adoptive placement in a related or an unrelated home. The required background study
must be completed as part of the home study.
new text end

deleted text begin (1) a check of criminal conviction data with the Bureau of Criminal Apprehension
and local law enforcement authorities;
deleted text end

deleted text begin (2) a check for data on substantiated maltreatment of a child or vulnerable adult
and domestic violence data with local law enforcement and social services agencies and
district courts; and
deleted text end

deleted text begin (3) for those persons under the age of 25, a check of juvenile court records.
deleted text end

deleted text begin Notwithstanding the provisions of section or , the Bureau of
Criminal Apprehension, local law enforcement and social services agencies, district courts,
and juvenile courts shall release the requested information to the agency completing
the adoption study.
deleted text end

deleted text begin (c) When paragraph (b) requires checking the data or records of local law
enforcement and social services agencies and district and juvenile courts, the agency
shall check with the law enforcement and social services agencies and courts whose
jurisdictions cover the addresses under paragraph (a), clause (2). In the event that the
agency is unable to complete any of the record checks required by paragraph (b), the
agency shall document the fact and the agency's efforts to obtain the information.
deleted text end

deleted text begin (d) For a study completed under this section, when the agency has reasonable
cause to believe that further information may exist on the prospective adoptive parent or
household member over the age of 13 that may relate to the health, safety, or welfare of
the child, the prospective adoptive parent or household member over the age of 13 shall
provide the agency with a set of classifiable fingerprints obtained from an authorized law
enforcement agency and the agency may obtain criminal history data from the National
Criminal Records Repository by submitting fingerprints to the Bureau of Criminal
Apprehension. The agency has reasonable cause when, but not limited to, the:
deleted text end

deleted text begin (1) information from the Bureau of Criminal Apprehension indicates that the
prospective adoptive parent or household member over the age of 13 is a multistate
offender;
deleted text end

deleted text begin (2) information from the Bureau of Criminal Apprehension indicates that multistate
offender status is undetermined;
deleted text end

deleted text begin (3) the agency has received a report from the prospective adoptive parent or
household member over the age of 13 or a third party indicating that the prospective
adoptive parent or household member over the age of 13 has a criminal history in a
jurisdiction other than Minnesota; or
deleted text end

deleted text begin (4) the prospective adoptive parent or household member over the age of 13 is or has
been a resident of a state other than Minnesota in the prior five years.
deleted text end

deleted text begin (e) At any time prior to completion of the background check required under
paragraph (b), a prospective adoptive parent may submit to the agency conducting the
study a sworn affidavit stating whether they or any person residing in the household have
been convicted of a crime. The affidavit shall also state whether the adoptive parent or any
other person residing in the household is the subject of an open investigation of, or have
been the subject of a substantiated allegation of, child or vulnerable-adult maltreatment
within the past ten years. A complete description of the crime, open investigation, or
substantiated abuse, and a complete description of any sentence, treatment, or disposition
must be included. The affidavit must contain an acknowledgment that if, at any time
before the adoption is final, a court receives evidence leading to a conclusion that a
prospective adoptive parent knowingly gave false information in the affidavit, it shall be
determined that the adoption of the child by the prospective adoptive parent is not in the
best interests of the child.
deleted text end

deleted text begin (f) For the purposes of subdivision 1 and section deleted text begin 259.47, subdivisions 3 and 6 deleted text end , an
adoption study is complete for placement, even though the background checks required by
paragraph (b) have not been completed, if each prospective adoptive parent has completed
the affidavit allowed by paragraph (e) and the other requirements of this section have been
met. The background checks required by paragraph (b) must be completed before an
adoption petition is filed. If an adoption study has been submitted to the court under section
deleted text begin 259.47, subdivision 3 deleted text end or 6, before the background checks required by paragraph (b) were
complete, an updated adoption study report which includes the results of the background
check must be filed with the adoption petition. In the event that an agency is unable to
complete any of the records checks required by paragraph (b), the agency shall submit with
the petition to adopt an affidavit documenting the agency's efforts to complete the checks.
deleted text end

new text begin (c) A home study under paragraph (b) used to consider placement of any child
on whose behalf Title IV-E adoption assistance payments are to be made must not be
approved if a background study reveals a felony conviction at any time for:
new text end

new text begin (1) child abuse or neglect;
new text end

new text begin (2) spousal abuse;
new text end

new text begin (3) a crime against children, including child pornography; or
new text end

new text begin (4) a crime involving violence, including rape, sexual assault, or homicide, but not
including other physical assault or battery.
new text end

new text begin (d) A home study under paragraph (b) used to consider placement of any child
on whose behalf Title IV-E adoption assistance payments are to be made must not be
approved if a background study reveals a felony conviction within the past five years for:
new text end

new text begin (1) physical assault or battery; or
new text end

new text begin (2) a drug-related offense.
new text end

Subd. 4.

Updates to adoption study; period of validity.

An agency may update
an adoption study and report as needed, regardless of when the original study and report
or most recent update was completed. An update must be in a format specified by the
commissioner and must verify the continuing accuracy of the elements of the original
report and document any changes to elements of the original report. An update to a study
and report not originally completed under this section must ensure that the study and
report, as updated, meet the requirements of this section. An adoption study is valid if the
report has been completed or updated within the previous 12 months.

Sec. 26.

Minnesota Statutes 2006, section 259.53, subdivision 2, is amended to read:

Subd. 2.

Adoption agencies; postplacement assessment and report.

(a) The
agency to which the petition has been referred under subdivision 1 shall conduct a
postplacement assessment and file a report with the court within 90 days of receipt
of a copy of the adoption petition. The agency shall send a copy of the report to the
commissioner at the time it files the report with the court. The assessment and report
must evaluate the environment and antecedents of the child to be adopted, the home of
the petitioners, whether placement with the petitioners meets the needs of the child as
described in section 259.57, subdivision 2. The report must include a recommendation to
the court as to whether the petition should or should not be granted.

In making evaluations and recommendations, the postplacement assessment and
report must, at a minimum, address the following:

(1) the level of adaptation by the prospective adoptive parents to parenting the child;

(2) the health and well-being of the child in the prospective adoptive parents' home;

(3) the level of incorporation by the child into the prospective adoptive parents'
home, extended family, and community; and

(4) the level of inclusion of the child's previous history into the prospective adoptive
home, such as cultural or ethnic practices, or contact with former foster parents or
biological relatives.

(b) A postplacement adoption report is valid for 12 months following its date
of completion.

deleted text begin (c) If the petitioner is an individual who is related to the child, as defined by section
deleted text begin 245A.02, subdivision 13 deleted text end , the agency, as part of its postplacement assessment and report
under paragraph (a), shall conduct a background check meeting the requirements of
section deleted text begin 259.41, subdivision 3 deleted text end , paragraph (b). The prospective adoptive parent shall
cooperate in the completion of the background check by supplying the information and
authorizations described in section deleted text begin 259.41, subdivision 3 deleted text end , paragraph (a).
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end If the report recommends that the court not grant the petition to adopt the
child, the provisions of this paragraph apply. Unless the assessment and report were
completed by the local social services agency, the agency completing the report, at the
time it files the report with the court under paragraph (a), must provide a copy of the report
to the local social services agency in the county where the prospective adoptive parent
lives. The agency or local social services agency may recommend that the court dismiss
the petition. If the local social services agency determines that continued placement in the
home endangers the child's physical or emotional health, the agency shall seek a court
order to remove the child from the home.

deleted text begin (e) deleted text end new text begin (d) new text end If, through no fault of the petitioner, the agency to whom the petition was
referred under subdivision 1, paragraph (b), fails to complete the assessment and file the
report within 90 days of the date it received a copy of the adoption petition, the court may
hear the petition upon giving the agency and the local social services agency, if different,
five days' notice by mail of the time and place of the hearing.

Sec. 27.

Minnesota Statutes 2006, section 259.57, subdivision 2, is amended to read:

Subd. 2.

Protection of child's best interests.

(a) The policy of the state of
Minnesota is to ensure that the best interests of children are met by requiring an
individualized determination of the needs of the child and how the adoptive placement
will serve the needs of the child.

(b) Among the factors the court shall consider in determining the needs of the child
are those specified under section 260C.193, subdivision 3, paragraph (b). new text begin Consistent with
section 245C.33 and Public Law 109-248, a completed background study is required
before the approval of an adoptive placement in a home. new text end

(c) In reviewing adoptive placement and in determining appropriate adoption,
the court shall consider placement, consistent with the child's best interests and in the
following order, with (1) a relative or relatives of the child, or (2) an important friend with
whom the child has resided or had significant contact. Placement of a child cannot be
delayed or denied based on race, color, or national origin of the adoptive parent or the
child. Whenever possible, siblings should be placed together unless it is determined
not to be in the best interests of a sibling.

(d) If the child's birth parent or parents explicitly request that relatives and important
friends not be considered, the court shall honor that request consistent with the best
interests of the child.

If the child's birth parent or parents express a preference for placing the child in an
adoptive home of the same or a similar religious background to that of the birth parent
or parents, the court shall place the child with a family that also meets the birth parent's
religious preference. Only if no family is available as described in clause (a) or (b)
may the court give preference to a family described in clause (c) that meets the parent's
religious preference.

(e) This subdivision does not affect the Indian Child Welfare Act, United States
Code, title 25, sections 1901 to 1923, and the Minnesota Indian Family Preservation
Act, sections 260.751 to 260.835.

Sec. 28.

Minnesota Statutes 2006, section 260C.209, is amended to read:

260C.209 BACKGROUND CHECKS.

Subdivision 1.

Subjects.

The responsible social services agency must deleted text begin conduct deleted text end new text begin
initiate new text end a background deleted text begin check deleted text end new text begin study to be completed by the commissioner new text end under deleted text begin this section
of deleted text end new text begin chapter 245C on new text end the following new text begin individuals new text end :

(1) a noncustodial parent or nonadjudicated parent who is being assessed for
purposes of providing day-to-day care of a child temporarily or permanently under section
260C.212, subdivision 4, and any member of the parent's household who is over the age of
13 when there is a reasonable cause to believe that the parent or household member over
age 13 has a criminal history or a history of maltreatment of a child or vulnerable adult
which would endanger the child's health, safety, or welfare;

(2) an individual whose suitability for relative placement under section 260C.212,
subdivision 5, is being determined and any member of the relative's household who is
over the age of 13 when:

(i) the relative must be licensed for foster care; or

(ii) the deleted text begin agency must conduct a deleted text end background study new text begin is required new text end under section 259.53,
subdivision 2; or

(iii) the agency new text begin or the commissioner new text end has reasonable cause to believe the relative
or household member over the age of 13 has a criminal history which would not make
transfer of permanent legal and physical custody to the relative under section 260C.201,
subdivision 11, in the child's best interest; and

(3) a parent, following an out-of-home placement, when the responsible social
services agency has reasonable cause to believe that the parent has been convicted of a
crime directly related to the parent's capacity to maintain the child's health, safety, or
welfare or the parent is the subject of an open investigation of, or has been the subject
of a substantiated allegation of, child or vulnerable-adult maltreatment within the past
ten years.

"Reasonable cause" means that the agency has received information or a report from the
subject or a third person that creates an articulable suspicion that the individual has a
history that may pose a risk to the health, safety, or welfare of the child. The information
or report must be specific to the potential subject of the background check and shall not
be based on the race, religion, ethnic background, age, class, or lifestyle of the potential
subject.

Subd. 2.

General procedures.

(a) When deleted text begin conducting deleted text end new text begin initiating new text end a background check
under subdivision 1, the agency deleted text begin may deleted text end new text begin shall new text end require the individual being assessed to provide
sufficient information to ensure an accurate assessment under this section, including:

(1) the individual's first, middle, and last name and all other names by which the
individual has been known;

(2) home address, zip code, city, county, and state of residence for the past deleted text begin ten deleted text end new text begin five new text end
years;

(3) sex;

(4) date of birth; and

(5) driver's license number or state identification number.

(b) When notified by the new text begin commissioner or the new text end responsible social services agency that
it is conducting an assessment under this section, the Bureau of Criminal Apprehension,
commissioners of health and human services, law enforcement, and county agencies must
provide the new text begin commissioner or the new text end responsible social services agency or county attorney
with the following information on the individual being assessed: criminal history data,
reports about the maltreatment of adults substantiated under section 626.557, and reports
of maltreatment of minors substantiated under section 626.556.

Subd. 3.

Multistate information.

deleted text begin (a) deleted text end For deleted text begin any assessment deleted text end new text begin every background study new text end
completed under this section, deleted text begin if the responsible social services agency has reasonable
cause to believe that the individual is a multistate offender, the individual must deleted text end new text begin the subject
of the background study shall new text end provide the responsible social services agency deleted text begin or the
county attorney deleted text end with a set of classifiable fingerprints obtained from an authorized deleted text begin law
enforcement deleted text end agency. The responsible social services agency deleted text begin or county attorney may deleted text end new text begin shall
provide the fingerprints to the commissioner, and the commissioner shall new text end obtain criminal
history data from the National Criminal Records Repository by submitting the fingerprints
to the Bureau of Criminal Apprehension.

deleted text begin (b) For purposes of this subdivision, the responsible social services agency has
reasonable cause when, but not limited to:
deleted text end

deleted text begin (1) information from the Bureau of Criminal Apprehension indicates that the
individual is a multistate offender;
deleted text end

deleted text begin (2) information from the Bureau of Criminal Apprehension indicates that multistate
offender status is undetermined;
deleted text end

deleted text begin (3) the social services agency has received a report from the individual or a third
party indicating that the individual has a criminal history in a jurisdiction other than
Minnesota; or
deleted text end

deleted text begin (4) the individual is or has been a resident of a state other than Minnesota at any
time during the prior ten years.
deleted text end

Subd. 4.

Notice upon receipt.

The deleted text begin responsible social services agency deleted text end new text begin commissioner new text end
must provide the subject of the background study with the results of the study new text begin as required new text end
under deleted text begin this section within 15 business days of receipt or at least 15 days prior to the hearing
at which the results will be presented, whichever comes first. The subject may provide
written information to the agency that the results are incorrect and may provide additional
or clarifying information to the agency and to the court through a party to the proceeding.
This provision does not apply to any background study conducted under chapters 245A
and deleted text end new text begin chapter new text end 245C.

Sec. 29.

Minnesota Statutes 2006, section 260C.212, subdivision 2, is amended to read:

Subd. 2.

Placement decisions based on best interest of the child.

(a) The policy
of the state of Minnesota is to ensure that the child's best interests are met by requiring an
individualized determination of the needs of the child and of how the selected placement
will serve the needs of the child being placed. The authorized child-placing agency shall
place a child, released by court order or by voluntary release by the parent or parents, in
a family foster home selected by considering placement with relatives and important
friends in the following order:

(1) with an individual who is related to the child by blood, marriage, or adoption; or

(2) with an individual who is an important friend with whom the child has resided or
had significant contact.

(b) Among the factors the agency shall consider in determining the needs of the
child are the following:

(1) the child's current functioning and behaviors;

(2) the medical, educational, and developmental needs of the child;

(3) the child's history and past experience;

(4) the child's religious and cultural needs;

(5) the child's connection with a community, school, and church;

(6) the child's interests and talents;

(7) the child's relationship to current caretakers, parents, siblings, and relatives; and

(8) the reasonable preference of the child, if the court, or the child-placing agency
in the case of a voluntary placement, deems the child to be of sufficient age to express
preferences.

(c) Placement of a child cannot be delayed or denied based on race, color, or national
origin of the foster parent or the child.

(d) Siblings should be placed together for foster care and adoption at the earliest
possible time unless it is determined not to be in the best interests of a sibling or unless it
is not possible after appropriate efforts by the responsible social services agency.

new text begin (e) Except for emergency placements as provided for in section 245A.035, a
completed background study is required under section 245C.08 before the approval of a
foster placement in a related or an unrelated home.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Changes made to sections in this article related to family
child care are effective January 1, 2008.
new text end

ARTICLE 4

DEPARTMENT OF HUMAN SERVICES - HEALTH CARE

Section 1.

Minnesota Statutes 2006, section 16A.724, subdivision 2, is amended to
read:

Subd. 2.

Transfers.

(a) Notwithstanding section 295.581, to the extent available
resources in the health care access fund exceed expenditures in that fund, effective deleted text begin with deleted text end
new text begin for new text end the biennium beginning July 1, 2007, the commissioner of finance shall transfer the
excess funds from the health care access fund to the general fund on June 30 of each year,
provided that the amount transferred in any fiscal biennium shall not exceed $96,000,000. new text begin
The purpose of this transfer is to meet the rate increase required under Laws 2003, First
Special Session chapter 14, article 13C, section 2, subdivision 6.
new text end

(b) For fiscal years 2006 to deleted text begin 2009 deleted text end new text begin 2011 new text end , MinnesotaCare shall be a forecasted
program, and, if necessary, the commissioner shall reduce these transfers from the health
care access fund to the general fund to meet annual MinnesotaCare expenditures or, if
necessary, transfer sufficient funds from the general fund to the health care access fund to
meet annual MinnesotaCare expenditures.

Sec. 2.

new text begin [254A.171] INTERVENTION AND ADVOCACY PROGRAM.
new text end

new text begin Within the limit of money available, the commissioner shall fund voluntary outreach
programs targeted at women who deliver children affected by prenatal alcohol or drug use.
The programs shall help women obtain treatment, stay in recovery, and plan any future
pregnancies. An advocate shall be assigned to each woman in the program to provide
guidance and advice with respect to treatment programs, child safety and parenting,
housing, family planning, and any other personal issues that are barriers to remaining free
of chemical dependency.
new text end

Sec. 3.

Minnesota Statutes 2006, section 256.01, subdivision 2b, is amended to read:

Subd. 2b.

Performance payments.

new text begin (a) new text end The commissioner shall develop and
implement a pay-for-performance system to provide performance payments to medical
groups that demonstrate optimum care in serving individuals with chronic diseases who
are enrolled in health care programs administered by the commissioner under chapters
256B, 256D, and 256L.

new text begin (b) The commissioner shall also develop and implement a patient incentive health
program to provide incentives and rewards to patients who are enrolled in health care
programs administered by the commissioner under chapters 256B, 256D, and 256L, and
who have agreed to and have met personal health goals established with the patients'
primary care providers to manage a chronic disease or condition, including but not limited
to diabetes, high blood pressure, and coronary artery disease.
new text end

Sec. 4.

new text begin [256.962] MINNESOTA HEALTH CARE PROGRAMS OUTREACH.
new text end

new text begin Subdivision 1. new text end

new text begin Public awareness and education. new text end

new text begin The commissioner shall design
and implement a statewide campaign to raise public awareness on the availability
of health coverage through medical assistance, general assistance medical care, and
MinnesotaCare and to educate the public on the importance of obtaining and maintaining
health care coverage. The campaign shall include multimedia messages directed to the
general population.
new text end

new text begin Subd. 2. new text end

new text begin Outreach grants. new text end

new text begin (a) The commissioner shall award grants to public
and private organizations or regional collaboratives for outreach activities, including,
but not limited to:
new text end

new text begin (1) providing information, applications, and assistance in obtaining coverage
through Minnesota public health care programs;
new text end

new text begin (2) collaborating with public and private entities such as hospitals, providers, health
plans, legal aid offices, pharmacies, insurance agencies, and faith-based organizations to
develop outreach activities and partnerships to ensure the distribution of information
and applications and provide assistance in obtaining coverage through Minnesota health
care programs; and
new text end

new text begin (3) providing or collaborating with public and private entities to provide multilingual
and culturally specific information and assistance to applicants in areas of high
uninsurance in the state or populations with high rates of uninsurance.
new text end

new text begin (b) The commissioner shall ensure that all outreach materials are available in
languages other than English.
new text end

new text begin (c) The commissioner shall establish an outreach trainer program to provide
training to designated individuals from the community and public and private entities on
application assistance in order for these individuals to provide training to others in the
community on an as-needed basis.
new text end

new text begin Subd. 3. new text end

new text begin Application and assistance. new text end

new text begin (a) The Minnesota health care programs
application must be made available at provider offices, local human services agencies,
school districts, public and private elementary schools in which 25 percent or more of
the students receive free or reduced price lunches, community health offices, Women,
Infants and Children (WIC) program sites, Head Start program sites, public housing
councils, child care centers, early childhood education and preschool program sites, legal
aid offices, and libraries. The commissioner shall ensure that applications are available
in languages other than English.
new text end

new text begin (b) Local human service agencies, hospitals, and health care community clinics
receiving state funds must provide direct assistance in completing the application
form, including the free use of a copy machine and a drop box for applications. These
locations must ensure that the drop box is checked at least weekly and any applications
are submitted to the commissioner. The commissioner shall provide these entities with
an identification number to stamp on each application to identify the entity that provided
assistance. Other locations where applications are required to be available shall either
provide direct assistance in completing the application form or provide information on
where an applicant can receive application assistance.
new text end

new text begin (c) Counties must offer applications and application assistance when providing
child support collection services.
new text end

new text begin (d) Local public health agencies and counties that provide immunization clinics must
offer applications and application assistance during these clinics.
new text end

new text begin (e) The commissioner shall coordinate with the commissioner of health to ensure
that maternal and child health outreach efforts include information on Minnesota health
care programs and application assistance, when needed.
new text end

new text begin Subd. 4. new text end

new text begin Statewide toll-free telephone number. new text end

new text begin The commissioner shall provide
funds for a statewide toll-free telephone number to provide information on public and
private health coverage options and sources of free and low-cost health care. The
statewide telephone number must provide the option of obtaining this information in
languages other than English.
new text end

new text begin Subd. 5. new text end

new text begin Incentive program. new text end

new text begin The commissioner shall establish an incentive
program for organizations that directly identify and assist potential enrollees in filling
out and submitting an application. For each applicant who is successfully enrolled in
MinnesotaCare, medical assistance, or general assistance medical care, the commissioner
shall pay the organization a $25 application assistance bonus. The organization may
provide an applicant a gift certificate or other incentive upon enrollment.
new text end

new text begin Subd. 6. new text end

new text begin School districts. new text end

new text begin (a) At the beginning of each school year, a school district
shall provide information to each student on the availability of health care coverage
through the Minnesota health care programs.
new text end

new text begin (b) For each child who is determined to be eligible for a free or reduced priced lunch,
the district shall provide the child's family with an application for the Minnesota health
care programs and information on how to obtain application assistance.
new text end

new text begin (c) A district shall also ensure that applications and information on application
assistance are available at early childhood education sites and public schools located
within the district's jurisdiction.
new text end

new text begin (d) Each district shall designate an enrollment specialist to provide application
assistance and follow-up services with families who are eligible for the reduced or free
lunch program or who have indicated an interest in receiving information or an application
for the Minnesota health care program.
new text end

new text begin (e) Each school district shall provide on their Web site a link to information on how
to obtain an application and application assistance.
new text end

new text begin Subd. 7. new text end

new text begin Renewal notice. new text end

new text begin (a) The commissioner shall mail a renewal notice to
enrollees notifying the enrollees that the enrollees eligibility must be renewed. A notice
shall be sent at least 90 days prior to the renewal date and at least 60 days prior to the
renewal date.
new text end

new text begin (b) For enrollees who are receiving services through managed care plans, the
managed care plan must provide a follow-up renewal call at least 60 days prior to the
enrollees' renewal dates.
new text end

new text begin (c) The commissioner shall include the end of coverage dates on the monthly rosters
of enrollees provided to managed care organizations.
new text end

new text begin Subd. 8. new text end

new text begin MinnesotaCare small employer buy-in option. new text end

new text begin The commissioner shall
provide information on the small employer buy-in option for MinnesotaCare to insurance
agents and local chambers of commerce.
new text end

Sec. 5.

new text begin [256.963] PRIMARY CARE ACCESS INITIATIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner shall award a grant to
implement in Hennepin and Ramsey Counties a Web-based primary care access pilot
project designed as a collaboration between private and public sectors to connect, where
appropriate, a patient with a primary care medical home, and schedule patients into
available community-based appointments as an alternative to nonemergency use of the
hospital emergency room. The grantee must establish a program that diverts patients
presenting at an emergency room for nonemergency care to more appropriate outpatient
settings. The program must refer the patient to an appropriate health care professional
based on the patient's health care needs and situation. The program must provide the
patient with a scheduled appointment that is timely, with an appropriate provider who is
conveniently located. If the patient is uninsured and potentially eligible for a Minnesota
health care program, the program must connect the patient to a primary care provider,
community clinic, or agency that can assist the patient with the application process. The
program must also ensure that discharged patients are connected with a community-based
primary care provider and assist in scheduling any necessary follow-up visits before
the patient is discharged.
new text end

new text begin (b) The program must not require a provider to pay a fee for accepting charity care
patients or patients enrolled in a Minnesota public health care program.
new text end

new text begin Subd. 2. new text end

new text begin Evaluation. new text end

new text begin (a) The grantee must report to the commissioner on a quarterly
basis the following information:
new text end

new text begin (1) the total number of appointments available for scheduling by specialty;
new text end

new text begin (2) the average length of time between scheduling and actual appointment; and
new text end

new text begin (3) the total number of patients referred and whether the patient was insured or
uninsured.
new text end

new text begin (b) The commissioner, in consultation with the Minnesota Hospital Association,
shall conduct an evaluation of the emergency room diversion pilot project and submit the
results to the legislature by January 15, 2009. The evaluation shall compare the number of
nonemergency visits and repeat visits to hospital emergency rooms for the period before
the commencement of the project and one year after the commencement, and an estimate
of the costs saved from any documented reductions.
new text end

Sec. 6.

Minnesota Statutes 2006, section 256.969, subdivision 3a, is amended to read:

Subd. 3a.

Payments.

(a) Acute care hospital billings under the medical
assistance program must not be submitted until the recipient is discharged. However,
the commissioner shall establish monthly interim payments for inpatient hospitals that
have individual patient lengths of stay over 30 days regardless of diagnostic category.
Except as provided in section 256.9693, medical assistance reimbursement for treatment
of mental illness shall be reimbursed based on diagnostic classifications. Individual
hospital payments established under this section and sections 256.9685, 256.9686, and
256.9695, in addition to third party and recipient liability, for discharges occurring during
the rate year shall not exceed, in aggregate, the charges for the medical assistance covered
inpatient services paid for the same period of time to the hospital. This payment limitation
shall be calculated separately for medical assistance and general assistance medical
care services. The limitation on general assistance medical care shall be effective for
admissions occurring on or after July 1, 1991. Services that have rates established under
subdivision 11 or 12, must be limited separately from other services. After consulting with
the affected hospitals, the commissioner may consider related hospitals one entity and
may merge the payment rates while maintaining separate provider numbers. The operating
and property base rates per admission or per day shall be derived from the best Medicare
and claims data available when rates are established. The commissioner shall determine
the best Medicare and claims data, taking into consideration variables of recency of the
data, audit disposition, settlement status, and the ability to set rates in a timely manner.
The commissioner shall notify hospitals of payment rates by December 1 of the year
preceding the rate year. The rate setting data must reflect the admissions data used to
establish relative values. Base year changes from 1981 to the base year established for the
rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited
to the limits ending June 30, 1987, on the maximum rate of increase under subdivision
1. The commissioner may adjust base year cost, relative value, and case mix index data
to exclude the costs of services that have been discontinued by the October 1 of the year
preceding the rate year or that are paid separately from inpatient services. Inpatient stays
that encompass portions of two or more rate years shall have payments established based
on payment rates in effect at the time of admission unless the date of admission preceded
the rate year in effect by six months or more. In this case, operating payment rates for
services rendered during the rate year in effect and established based on the date of
admission shall be adjusted to the rate year in effect by the hospital cost index.

(b) For fee-for-service admissions occurring on or after July 1, 2002, the total
payment, before third-party liability and spenddown, made to hospitals for inpatient
services is reduced by .5 percent from the current statutory rates.

(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service
admissions occurring on or after July 1, 2003, made to hospitals for inpatient services
before third-party liability and spenddown, is reduced five percent from the current
statutory rates. Mental health services within diagnosis related groups 424 to 432, deleted text begin and deleted text end
facilities defined under subdivision 16 new text begin , and, effective for admissions occurring on or after
July 1, 2007, a long-term hospital as designated by the Medicare program that is located in
a city of the first class as defined in section 410.01 new text end are excluded from this paragraph.

(d) In addition to the reduction in paragraphs (b) and (c), the total payment for
fee-for-service admissions occurring on or after July 1, 2005, made to hospitals for
inpatient services before third-party liability and spenddown, is reduced 6.0 percent from
the current statutory rates. Mental health services within diagnosis related groups 424 to
432 deleted text begin and deleted text end new text begin , new text end facilities defined under subdivision 16 new text begin , and, effective for admissions occurring
on or after July 1, 2007, a long-term hospital as designated by the Medicare program
that is located in a city of the first class as defined in section 410.01 new text end are excluded from
this paragraph. Notwithstanding section 256.9686, subdivision 7, for purposes of this
paragraph, medical assistance does not include general assistance medical care. Payments
made to managed care plans shall be reduced for services provided on or after January
1, 2006, to reflect this reduction.

Sec. 7.

Minnesota Statutes 2006, section 256.969, subdivision 9, is amended to read:

Subd. 9.

Disproportionate numbers of low-income patients served.

(a) For
admissions occurring on or after October 1, 1992, through December 31, 1992, the
medical assistance disproportionate population adjustment shall comply with federal law
and shall be paid to a hospital, excluding regional treatment centers and facilities of the
federal Indian Health Service, with a medical assistance inpatient utilization rate in excess
of the arithmetic mean. The adjustment must be determined as follows:

(1) for a hospital with a medical assistance inpatient utilization rate above the
arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
federal Indian Health Service but less than or equal to one standard deviation above the
mean, the adjustment must be determined by multiplying the total of the operating and
property payment rates by the difference between the hospital's actual medical assistance
inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
treatment centers and facilities of the federal Indian Health Service; and

(2) for a hospital with a medical assistance inpatient utilization rate above one
standard deviation above the mean, the adjustment must be determined by multiplying
the adjustment that would be determined under clause (1) for that hospital by 1.1. If
federal matching funds are not available for all adjustments under this subdivision, the
commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for
federal match. The commissioner may establish a separate disproportionate population
operating payment rate adjustment under the general assistance medical care program.
For purposes of this subdivision medical assistance does not include general assistance
medical care. The commissioner shall report annually on the number of hospitals likely to
receive the adjustment authorized by this paragraph. The commissioner shall specifically
report on the adjustments received by public hospitals and public hospital corporations
located in cities of the first class.

(b) For admissions occurring on or after July 1, 1993, the medical assistance
disproportionate population adjustment shall comply with federal law and shall be paid to
a hospital, excluding regional treatment centers and facilities of the federal Indian Health
Service, with a medical assistance inpatient utilization rate in excess of the arithmetic
mean. The adjustment must be determined as follows:

(1) for a hospital with a medical assistance inpatient utilization rate above the
arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
federal Indian Health Service but less than or equal to one standard deviation above the
mean, the adjustment must be determined by multiplying the total of the operating and
property payment rates by the difference between the hospital's actual medical assistance
inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
treatment centers and facilities of the federal Indian Health Service;

(2) for a hospital with a medical assistance inpatient utilization rate above one
standard deviation above the mean, the adjustment must be determined by multiplying
the adjustment that would be determined under clause (1) for that hospital by 1.1. The
commissioner may establish a separate disproportionate population operating payment
rate adjustment under the general assistance medical care program. For purposes of this
subdivision, medical assistance does not include general assistance medical care. The
commissioner shall report annually on the number of hospitals likely to receive the
adjustment authorized by this paragraph. The commissioner shall specifically report on
the adjustments received by public hospitals and public hospital corporations located
in cities of the first class;

(3) for a hospital that had medical assistance fee-for-service payment volume during
calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service
payment volume, a medical assistance disproportionate population adjustment shall be
paid in addition to any other disproportionate payment due under this subdivision as
follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995.
For a hospital that had medical assistance fee-for-service payment volume during calendar
year 1991 in excess of eight percent of total medical assistance fee-for-service payment
volume and was the primary hospital affiliated with the University of Minnesota, a
medical assistance disproportionate population adjustment shall be paid in addition to any
other disproportionate payment due under this subdivision as follows: $505,000 due on
the 15th of each month after noon, beginning July 15, 1995; and

(4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be
reduced to zero.

(c) The commissioner shall adjust rates paid to a health maintenance organization
under contract with the commissioner to reflect rate increases provided in paragraph (b),
clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those
rates to reflect payments provided in clause (3).

(d) If federal matching funds are not available for all adjustments under paragraph
(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a
pro rata basis so that all adjustments under paragraph (b) qualify for federal match.

(e) For purposes of this subdivision, medical assistance does not include general
assistance medical care.

(f) For hospital services occurring on or after July 1, 2005, to June 30, 2007 deleted text begin , deleted text end new text begin :
new text end

new text begin (1) new text end general assistance medical care expenditures new text begin for fee-for-service inpatient
and outpatient hospital payments new text end made by the department deleted text begin and by prepaid health
plans participating in general assistance medical care deleted text end shall be considered Medicaid
disproportionate share hospital payments, except as limited below:

deleted text begin (1) deleted text end new text begin (i) new text end only the portion of Minnesota's disproportionate share hospital allotment
under section 1923(f) of the Social Security Act that is not spent on the disproportionate
population adjustments in paragraph (b), clauses (1) and (2), may be used for general
assistance medical care expenditures;

deleted text begin (2) deleted text end new text begin (ii) new text end only those general assistance medical care expenditures made to hospitals that
qualify for disproportionate share payments under section 1923 of the Social Security Act
and the Medicaid state plan may be considered disproportionate share hospital payments;

deleted text begin (3) deleted text end new text begin (iii) new text end only those general assistance medical care expenditures made to an
individual hospital that would not cause the hospital to exceed its individual hospital limits
under section 1923 of the Social Security Act may be considered; and

deleted text begin (4) deleted text end new text begin (iv) new text end general assistance medical care expenditures may be considered only to the
extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.

All hospitals and prepaid health plans participating in general assistance medical care
must provide any necessary expenditure, cost, and revenue information required by the
commissioner as necessary for purposes of obtaining federal Medicaid matching funds for
general assistance medical care expenditures new text begin ; and
new text end

new text begin (2) certified public expenditures made by Hennepin County Medical Center shall
be considered Medicaid disproportionate share hospital payments. Hennepin County
and Hennepin County Medical Center shall report by June 15, 2007, on payments made
beginning July 1, 2005, or another date specified by the commissioner, that may qualify
for reimbursement under federal law. Based on these reports, the commissioner shall
apply for federal matching funds new text end .

(g) Upon federal approval of the related state plan amendment, paragraph (f) is
effective retroactively from July 1, 2005, or the earliest effective date approved by the
Centers for Medicare and Medicaid Services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2005.
new text end

Sec. 8.

Minnesota Statutes 2006, section 256.969, subdivision 27, is amended to read:

Subd. 27.

Quarterly payment adjustment.

(a) In addition to any other payment
under this section, the commissioner shall make the following payments effective July
1, 2007:

(1) for a hospital located in Minnesota and not eligible for payments under
subdivision 20, with a medical assistance inpatient utilization rate greater than 17.8
percent of total patient days as of the base year in effect on July 1, 2005, a payment equal
to 13 percent of the total of the operating and property payment rates;

(2) for a hospital located in Minnesota in a specified urban area outside of the
seven-county metropolitan area and not eligible for payments under subdivision 20, with
a medical assistance inpatient utilization rate less than or equal to 17.8 percent of total
patient days as of the base year in effect on July 1, 2005, a payment equal to ten percent
of the total of the operating and property payment rates. For purposes of this clause, the
following cities are specified urban areas: Detroit Lakes, Rochester, Willmar, Alexandria,
Austin, Cambridge, Brainerd, Hibbing, Mankato, Duluth, St. Cloud, Grand Rapids,
Wyoming, Fergus Falls, Albert Lea, Winona, Virginia, Thief River Falls, and Wadena; and

(3) for a hospital located in Minnesota but not located in a specified urban area under
clause (2), with a medical assistance inpatient utilization rate less than or equal to 17.8
percent of total patient days as of the base year in effect on July 1, 2005, a payment equal to
four percent of the total of the operating and property payment rates. A hospital located in
Woodbury and not in existence during the base year shall be reimbursed under this clause.

(b) The state share of payments under paragraph (a) shall be equal to federal
reimbursements to the commissioner to reimburse deleted text begin nonstate deleted text end expenditures reported under
section 256B.199. The commissioner shall ratably reduce or increase payments under this
subdivision in order to ensure that these payments equal the amount of reimbursement
received by the commissioner under section 256B.199, except that payments shall be
ratably reduced by an amount equivalent to the state share of a four percent reduction in
MinnesotaCare and medical assistance payments for inpatient hospital services.

(c) The payments under paragraph (a) shall be paid quarterly beginning on July
15, 2007, or upon federal approval of federal reimbursements under section 256B.199,
whichever occurs later.

(d) The commissioner shall not adjust rates paid to a prepaid health plan under
contract with the commissioner to reflect payments provided in paragraph (a).

(e) The commissioner shall maximize the use of available federal money for
disproportionate share hospital payments and shall maximize payments to qualifying
hospitals. In order to accomplish these purposes, the commissioner may, in consultation
with the nonstate entities identified in section 256B.199, adjust, on a pro rata basis
if feasible, the amounts reported by nonstate entities under section 256B.199 when
application for reimbursement is made to the federal government, and otherwise adjust
the provisions of this subdivision.

(f) By January 15 of each year, beginning January 15, 2006, the commissioner
shall report to the chairs of the house and senate finance committees and divisions with
jurisdiction over funding for the Department of Human Services the following estimates
for the current and upcoming federal and state fiscal years:

(1) the difference between the Medicare upper payment limit and actual or
anticipated medical assistance payments for hospital services;

(2) the amount of federal disproportionate share hospital funding available to
Minnesota and the amount expected to be claimed by the state; and

(3) the methodology used to calculate the results reported for clauses (1) and (2).

(g) For purposes of this subdivision, medical assistance does not include general
assistance medical care.

(h) This section sunsets on June 30, 2009. The commissioner shall report to
the legislature by December 15, 2008, with recommendations for maximizing federal
disproportionate share hospital payments after June 30, 2009.

Sec. 9.

Minnesota Statutes 2006, section 256.969, is amended by adding a subdivision
to read:

new text begin Subd. 28. new text end

new text begin Long-term hospital payment adjustment. new text end

new text begin For admissions occurring on
or after July 1, 2007, the commissioner shall increase the medical assistance payments
to a long-term hospital with a medical assistance inpatient utilization rate of 17.95
percent of total patient days as of the base year in effect on July 1, 2005, by an amount
equal to 13 percent of the total of the operating and property payment rates. Payments
made to managed care plans shall not reflect this payment increase. For purposes of
this subdivision, medical assistance does not include general assistance medical care.
Payments to a hospital under this subdivision shall be reduced by the amount of any
payments made under subdivision 27.
new text end

Sec. 10.

Minnesota Statutes 2006, section 256B.056, subdivision 10, is amended to
read:

Subd. 10.

Eligibility verification.

(a) The commissioner shall require women who
are applying for the continuation of medical assistance coverage following the end of the
60-day postpartum period to update their income and asset information and to submit
any required income or asset verification.

(b) The commissioner shall determine the eligibility of private-sector health care
coverage for infants less than one year of age eligible under section 256B.055, subdivision
10, or 256B.057, subdivision 1, paragraph (d), and shall pay for private-sector coverage
if this is determined to be cost-effective.

deleted text begin (c) The commissioner shall modify the application for Minnesota health care
programs to require more detailed information related to verification of assets and income,
and shall verify assets and income for all applicants, and for all recipients upon renewal.
deleted text end

deleted text begin (d) The commissioner shall require Minnesota health care program recipients to
report new or an increase in earned income within ten days of the change, and to verify new
or an increase in earned income that affects eligibility within ten days of notification by
the agency that the new or increased earned income affects eligibility. Recipients who fail
to verify new or an increase in earned income that affects eligibility shall be disenrolled.
deleted text end

Sec. 11.

Minnesota Statutes 2006, section 256B.0625, is amended by adding a
subdivision to read:

new text begin Subd. 13i. new text end

new text begin Medicare Part D co-payments. new text end

new text begin For medical assistance recipients who
are enrolled in a Medicare Part D prescription drug plan or Medicare Advantage plan,
medical assistance covers the co-payments that the recipient is responsible for under the
Medicare Part D prescription drug plan or Medicare Advantage plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 12.

Minnesota Statutes 2006, section 256B.0625, subdivision 17, is amended to
read:

Subd. 17.

Transportation costs.

(a) Medical assistance covers transportation costs
incurred solely for obtaining emergency medical care or transportation costs incurred
by eligible persons in obtaining emergency or nonemergency medical care when paid
directly to an ambulance company, common carrier, or other recognized providers of
transportation services.

(b) Medical assistance covers special transportation, as defined in Minnesota Rules,
part 9505.0315, subpart 1, item F, if the recipient has a physical or mental impairment that
would prohibit the recipient from safely accessing and using a bus, taxi, other commercial
transportation, or private automobile.

The commissioner may use an order by the recipient's attending physician to certify that
the recipient requires special transportation services. Special transportation includes
driver-assisted service to eligible individuals. Driver-assisted service includes passenger
pickup at and return to the individual's residence or place of business, assistance with
admittance of the individual to the medical facility, and assistance in passenger securement
or in securing of wheelchairs or stretchers in the vehicle. Special transportation providers
must obtain written documentation from the health care service provider who is serving
the recipient being transported, identifying the time that the recipient arrived. Special
transportation providers may not bill for separate base rates for the continuation of a trip
beyond the original destination. Special transportation providers must take recipients
to the nearest appropriate health care provider, using the deleted text begin most direct deleted text end new text begin quickest new text end route
available new text begin as determined by a commercially available mileage software program approved
by the commissioner new text end . The maximum medical assistance reimbursement rates for special
transportation services are:

(1) $17 for the base rate and deleted text begin $1.35 deleted text end new text begin $1.43 new text end per mile for services to eligible persons
who need a wheelchair-accessible van;

(2) $11.50 for the base rate and $1.30 per mile for services to eligible persons who
do not need a wheelchair-accessible van; and

(3) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip, for
services to eligible persons who need a stretcher-accessible vehicle.

Sec. 13.

Minnesota Statutes 2006, section 256B.0625, subdivision 30, is amended to
read:

Subd. 30.

Other clinic services.

(a) Medical assistance covers rural health clinic
services, federally qualified health center services, nonprofit community health clinic
services, public health clinic services, and the services of a clinic meeting the criteria
established in rule by the commissioner. Rural health clinic services and federally
qualified health center services mean services defined in United States Code, title 42,
section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified
health center services shall be made according to applicable federal law and regulation.

(b) A federally qualified health center that is beginning initial operation shall submit
an estimate of budgeted costs and visits for the initial reporting period in the form and
detail required by the commissioner. A federally qualified health center that is already in
operation shall submit an initial report using actual costs and visits for the initial reporting
period. Within 90 days of the end of its reporting period, a federally qualified health
center shall submit, in the form and detail required by the commissioner, a report of
its operations, including allowable costs actually incurred for the period and the actual
number of visits for services furnished during the period, and other information required
by the commissioner. Federally qualified health centers that file Medicare cost reports
shall provide the commissioner with a copy of the most recent Medicare cost report filed
with the Medicare program intermediary for the reporting year which support the costs
claimed on their cost report to the state.

(c) deleted text begin In order to continue cost-based payment under the medical assistance program
according to paragraphs (a) and (b), a federally qualified health center or rural health clinic
must apply for designation as an essential community provider within six months of final
adoption of rules by the Department of Health according to section 62Q.19, subdivision
7. For those federally qualified health centers and rural health clinics that have applied
for essential community provider status within the six-month time prescribed, medical
assistance payments will continue to be made according to paragraphs (a) and (b) for the
first three years after application. For federally qualified health centers and rural health
clinics that either do not apply within the time specified above or who have had essential
community provider status for three years, medical assistance payments for health services
provided by these entities shall be according to the same rates and conditions applicable
to the same service provided by health care providers that are not federally qualified
health centers or rural health clinics. deleted text end

deleted text begin (d) deleted text end deleted text begin Effective July 1, 1999, the provisions of paragraph (c) requiring a federally
qualified health center or a rural health clinic to make application for an essential
community provider designation in order to have cost-based payments made according
to paragraphs (a) and (b) no longer apply.
deleted text end

deleted text begin (e) deleted text end Effective January 1, 2000, payments made according to paragraphs (a) and (b)
shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.

deleted text begin (f) deleted text end new text begin (d) new text end Effective January 1, 2001, each federally qualified health center and
rural health clinic may elect to be paid either under the prospective payment system
established in United States Code, title 42, section 1396a(aa), or under an alternative
payment methodology consistent with the requirements of United States Code, title 42,
section 1396a(aa), and approved by the Centers for Medicare and Medicaid Services.
The alternative payment methodology shall be 100 percent of deleted text begin cost deleted text end new text begin costs new text end as determined
deleted text begin according to deleted text end new text begin by generally accepted accounting principles and annual new text end Medicare cost
deleted text begin principles deleted text end new text begin reports, including Medicaid-eligible cost add-ons new text end .

Sec. 14.

Minnesota Statutes 2006, section 256B.0625, is amended by adding a
subdivision to read:

new text begin Subd. 49. new text end

new text begin Community health worker. new text end

new text begin (a) Medical assistance covers the care
coordination and patient education services provided by a community health worker if
the community health worker has:
new text end

new text begin (1) received a certificate from the Minnesota State Colleges and Universities system
approved community health worker curriculum; or
new text end

new text begin (2) at least five years of supervised experience.
new text end

new text begin Community health workers eligible for payment under clause (2) must complete the
certification program by January 1, 2010, to continue to be eligible for payment.
new text end

new text begin (b) Community health workers must work under the supervision of a medical
assistance enrolled provider.
new text end

Sec. 15.

Minnesota Statutes 2006, section 256B.0625, is amended by adding a
subdivision to read:

new text begin Subd. 50. new text end

new text begin Physician-directed care coordination services. new text end

new text begin The commissioner
shall develop and implement a physician-directed care coordination program for medical
assistance recipients who are not enrolled in the prepaid medical assistance program and
who are receiving services on a fee-for-service basis. This program provides payment
to primary care clinics for care coordination for people who have complex and chronic
medical conditions. Clinics must meet certain criteria such as the capacity to develop care
plans, and have a dedicated care coordinator, an adequate number of fee-for-service clients,
evaluation mechanisms, and quality improvement processes to qualify for reimbursement.
new text end

Sec. 16.

Minnesota Statutes 2006, section 256B.0631, subdivision 1, is amended to
read:

Subdivision 1.

Co-payments.

(a) Except as provided in subdivision 2, the medical
assistance benefit plan shall include the following co-payments for all recipients, effective
for services provided on or after October 1, 2003 new text begin , and before January 1, 2008 new text end :

(1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an
episode of service which is required because of a recipient's symptoms, diagnosis, or
established illness, and which is delivered in an ambulatory setting by a physician or
physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
audiologist, optician, or optometrist;

(2) $3 for eyeglasses;

(3) $6 for nonemergency visits to a hospital-based emergency room; and

(4) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness.

(b) new text begin Except as provided in subdivision 2, the medical assistance benefit plan shall
include the following co-payments for all recipients, effective for services provided on
or after January 1, 2008, and before December 31, 2008:
new text end

new text begin (1) $6 for nonemergency visits to a hospital-based emergency room; and
new text end

new text begin (2) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness.
new text end

new text begin (c) Except as provided in subdivision 2, the medical assistance benefit plan shall
include a $6 co-payment for nonemergency visits to a hospital-based emergency room for
all recipients effective for services provided on or after January 1, 2009.
new text end

new text begin (d) new text end Recipients of medical assistance are responsible for all co-payments in this
subdivision.

Sec. 17.

Minnesota Statutes 2006, section 256B.0631, subdivision 3, is amended to
read:

Subd. 3.

Collection.

new text begin (a) new text end The medical assistance reimbursement to the provider shall
be reduced by the amount of the co-payment, except that reimbursement for prescription
drugs shall not be reduced once a recipient has reached the $12 per month maximum for
prescription drug co-payments.

new text begin (b) new text end The provider collects the co-payment from the recipient. Providers may not
deny services to recipients who are unable to pay the co-payment deleted text begin , except as provided in
subdivision 4 deleted text end .

new text begin (c) Medical assistance reimbursement to providers and payments to managed care
plans shall not be increased as a result of the removal of the co-payments effective January
1, 2008. Effective January 1, 2009, reimbursement for prescription drugs shall be restored
to the extent that reimbursement was reduced due to the implementation of co-payments.
new text end

Sec. 18.

Minnesota Statutes 2006, section 256B.095, is amended to read:

256B.095 QUALITY ASSURANCE SYSTEM ESTABLISHED.

(a) Effective July 1, 1998, a quality assurance system for persons with developmental
disabilities, which includes an alternative quality assurance licensing system for programs,
is established in Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Olmsted, Rice,
Steele, Wabasha, and Winona Counties for the purpose of improving the quality of
services provided to persons with developmental disabilities. A county, at its option, may
choose to have all programs for persons with developmental disabilities located within
the county licensed under chapter 245A using standards determined under the alternative
quality assurance licensing system or may continue regulation of these programs under
the licensing system operated by the commissioner. The project expires on June 30,
deleted text begin 2009 deleted text end new text begin 2014 new text end .

(b) Effective July 1, 2003, a county not listed in paragraph (a) may apply to
participate in the quality assurance system established under paragraph (a). The
commission established under section 256B.0951 may, at its option, allow additional
counties to participate in the system.

(c) Effective July 1, 2003, any county or group of counties not listed in paragraph (a)
may establish a quality assurance system under this section. A new system established
under this section shall have the same rights and duties as the system established
under paragraph (a). A new system shall be governed by a commission under section
256B.0951. The commissioner shall appoint the initial commission members based
on recommendations from advocates, families, service providers, and counties in the
geographic area included in the new system. Counties that choose to participate in a
new system shall have the duties assigned under section 256B.0952. The new system
shall establish a quality assurance process under section 256B.0953. The provisions of
section 256B.0954 shall apply to a new system established under this paragraph. The
commissioner shall delegate authority to a new system established under this paragraph
according to section 256B.0955.

new text begin (d) Effective July 1, 2007, the quality assurance system may be expanded to include
programs for persons with disabilities and older adults.
new text end

Sec. 19.

Minnesota Statutes 2006, section 256B.0951, subdivision 1, is amended to
read:

Subdivision 1.

Membership.

The Quality Assurance Commission is established.
The commission consists of at least 14 but not more than 21 members as follows: at
least three but not more than five members representing advocacy organizations; at
least three but not more than five members representing consumers, families, and their
legal representatives; at least three but not more than five members representing service
providers; at least three but not more than five members representing counties; and the
commissioner of human services or the commissioner's designee. The first commission
shall establish membership guidelines for the transition and recruitment of membership for
the commission's ongoing existence. Members of the commission who do not receive a
salary or wages from an employer for time spent on commission duties may receive a per
diem payment when performing commission duties and functions. All members may be
reimbursed for expenses related to commission activities. Notwithstanding the provisions
of section 15.059, subdivision 5, the commission expires on June 30, deleted text begin 2009 deleted text end new text begin 2014 new text end .

Sec. 20.

new text begin [256B.096] QUALITY MANAGEMENT, ASSURANCE, AND
IMPROVEMENT SYSTEM FOR MINNESOTANS RECEIVING DISABILITY
SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin In order to improve the quality of services provided to
Minnesotans with disabilities and to meet the requirements of the federally approved home
and community-based waivers under section 1915c of the Social Security Act, a statewide
quality assurance and improvement system for Minnesotans receiving disability services
shall be developed. The disability services included are the home and community-based
services waiver programs for persons with developmental disabilities under section
256B.092, subdivision 4, and for persons with disabilities under section 256B.49.
new text end

new text begin Subd. 2. new text end

new text begin Stakeholder group. new text end

new text begin The commissioner shall consult with a stakeholder
group on the development and implementation of the state quality management, assurance,
and improvement system, including representatives of disability service recipients,
disability service providers, disability advocacy groups, county human service agencies,
and state agency staff from the Departments of Human Services and Health, and the
ombudsman for mental health and developmental disabilities on the development of
a statewide quality assurance and improvement system.
new text end

new text begin Subd. 3. new text end

new text begin Annual survey of service recipients. new text end

new text begin The commissioner, in consultation
with the stakeholder advisory group, shall develop and conduct an annual independent
random statewide survey of between five and ten percent of service recipients to determine
the effectiveness and quality of disability services. The survey shall be consistent with
the system performance expectations of the Centers for Medicare and Medicaid Services
quality management requirements and framework. The survey shall analyze whether
desired outcomes have been achieved for persons with different demographic, diagnostic,
health, and functional needs receiving different types of services in different settings
with different costs. The survey shall be field tested during 2008 and implemented by
February 1, 2009. Annual statewide and regional reports of the results shall be published
for use by regions, counties, and providers to plan and measure the impact of quality
improvement activities.
new text end

new text begin Subd. 4. new text end

new text begin Improvements for incident reporting, investigation, analysis, and
follow-up. new text end

new text begin In consultation with the stakeholder group, the commissioner shall identify
the information, data sources, and technology needed to improve the system of incident
reporting, including:
new text end

new text begin (1) reports made under the Maltreatment of Minors and Vulnerable Adults Acts; and
new text end

new text begin (2) investigation, analysis, and follow-up for disability services.
new text end

new text begin The commissioner must ensure that the federal home and community-based waiver
requirements are met and that incidents that may have jeopardized safety and health or
violated service-related assurances, civil and human rights, and other protections designed
to prevent abuse, neglect, and exploitation, are reviewed, investigated, and acted upon
in a timely manner.
new text end

new text begin Subd. 5. new text end

new text begin Biennial report. new text end

new text begin The commissioner shall provide a biennial report to the
chairs of the legislative committees with jurisdiction over health and human services
policy and funding beginning January 15, 2009, on the development and activities of the
quality management, assurance, and improvement system designed to meet the federal
requirements under the home and community-based services waiver programs for persons
with disabilities. By January 15, 2008, the commissioner shall provide a preliminary
report on priorities for meeting the federal requirements, progress on the annual survey,
recommendations for improvements in the incident reporting system, and a plan for
incorporating quality assurance efforts under section 256B.095 and other regional efforts
into the statewide system.
new text end

Sec. 21.

Minnesota Statutes 2006, section 256B.199, is amended to read:

256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.

(a) new text begin Effective July 1, 2007, the commissioner shall apply for federal matching funds
for the expenditures in paragraphs (b) and (c).
new text end

new text begin (b) The commissioner shall apply for federal matching funds for certified public
expenditures as follows:
new text end

new text begin (1) new text end Hennepin County, Hennepin County Medical Center, Ramsey County, Regions
Hospital, the University of Minnesota, and Fairview-University Medical Center shall
report quarterly to the commissioner beginning June 1, 2007, payments made during the
second previous quarter that may qualify for reimbursement under federal law deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (b) deleted text end new text begin (2) new text end based on these reports, the commissioner shall apply for federal matching
funds. These funds are appropriated to the commissioner for the payments under section
256.969, subdivision 27 deleted text begin . deleted text end new text begin ; and
new text end

deleted text begin (c) deleted text end new text begin (3) new text end by May 1 of each year, beginning May 1, 2007, the commissioner shall inform
the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share
hospital payment money expected to be available in the current federal fiscal year.

new text begin (c) The commissioner shall apply for federal matching funds for general assistance
medical care expenditures as follows:
new text end

new text begin (1) for hospital services occurring on or after July 1, 2007, and before June 30, 2009,
general assistance medical care expenditures for fee-for-service inpatient and outpatient
hospital payments made by the department shall be used to apply for federal matching
funds, except as limited below:
new text end

new text begin (i) only those general assistance medical care expenditures made to an individual
hospital that would not cause the hospital to exceed its individual hospital limits under
section 1923 of the Social Security Act may be considered; and
new text end

new text begin (ii) general assistance medical care expenditures may be considered only to the extent
of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
new text end

new text begin (2) all hospitals must provide any necessary expenditure, cost, and revenue
information required by the commissioner as necessary for purposes of obtaining federal
Medicaid matching funds for general assistance medical care expenditures.
new text end

(d) This section sunsets on June 30, 2009. The commissioner shall report to
the legislature by December 15, 2008, with recommendations for maximizing federal
disproportionate share hospital payments after June 30, 2009.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2006, section 256B.69, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purposes of this section, the following terms have
the meanings given.

(a) "Commissioner" means the commissioner of human services. For the
remainder of this section, the commissioner's responsibilities for methods and policies
for implementing the project will be proposed by the project advisory committees and
approved by the commissioner.

(b) "Demonstration provider" means a health maintenance organization, community
integrated service network, or accountable provider network authorized and operating
under chapter 62D, 62N, or 62T that participates in the demonstration project according
to criteria, standards, methods, and other requirements established for the project and
approved by the commissioner. For purposes of this section, a county board, or group of
county boards operating under a joint powers agreement, is considered a demonstration
provider if the county or group of county boards meets the requirements of section
256B.692. Notwithstanding the above, Itasca County may continue to participate as a
demonstration provider until July 1, 2004.

(c) "Eligible individuals" means those persons eligible for medical assistance
benefits as defined in sections 256B.055, 256B.056, and 256B.06. new text begin Notwithstanding
sections 256B.055, 256B.056, and 256B.06, an individual who becomes ineligible for the
program because of failure to submit income reports or recertification forms in a timely
manner shall remain enrolled in the prepaid health plan and shall remain eligible to receive
medical assistance coverage through the last day of the month following the month in
which the enrollee became ineligible for the medical assistance program.
new text end

(d) "Limitation of choice" means suspending freedom of choice while allowing
eligible individuals to choose among the demonstration providers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, or upon federal
approval, whichever is later. The commissioner of human services shall notify the Office
of the Revisor of Statutes when federal approval is obtained.
new text end

Sec. 23.

Minnesota Statutes 2006, section 256B.75, is amended to read:

256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.

(a) For outpatient hospital facility fee payments for services rendered on or after
October 1, 1992, the commissioner of human services shall pay the lower of (1) submitted
charge, or (2) 32 percent above the rate in effect on June 30, 1992, except for those
services for which there is a federal maximum allowable payment. Effective for services
rendered on or after January 1, 2000, payment rates for nonsurgical outpatient hospital
facility fees and emergency room facility fees shall be increased by eight percent over the
rates in effect on December 31, 1999, except for those services for which there is a federal
maximum allowable payment. Services for which there is a federal maximum allowable
payment shall be paid at the lower of (1) submitted charge, or (2) the federal maximum
allowable payment. Total aggregate payment for outpatient hospital facility fee services
shall not exceed the Medicare upper limit. If it is determined that a provision of this
section conflicts with existing or future requirements of the United States government with
respect to federal financial participation in medical assistance, the federal requirements
prevail. The commissioner may, in the aggregate, prospectively reduce payment rates to
avoid reduced federal financial participation resulting from rates that are in excess of
the Medicare upper limitations.

(b) Notwithstanding paragraph (a), payment for outpatient, emergency, and
ambulatory surgery hospital facility fee services for critical access hospitals designated
under section 144.1483, clause (10), shall be paid on a cost-based payment system that is
based on the cost-finding methods and allowable costs of the Medicare program. new text begin Effective
for services provided on or after July 1, 2007, a children's hospital that was formerly
a state hospital must be paid for the services in this paragraph using the methodology
established for critical access hospitals at a rate equal to fee-for-service rates plus 49
percent, as limited by allowable costs.
new text end

(c) Effective for services provided on or after July 1, 2003, rates that are based
on the Medicare outpatient prospective payment system shall be replaced by a budget
neutral prospective payment system that is derived using medical assistance data. The
commissioner shall provide a proposal to the 2003 legislature to define and implement
this provision.

(d) For fee-for-service services provided on or after July 1, 2002, the total payment,
before third-party liability and spenddown, made to hospitals for outpatient hospital
facility services is reduced by .5 percent from the current statutory rate.

(e) In addition to the reduction in paragraph (d), the total payment for fee-for-service
services provided on or after July 1, 2003, made to hospitals for outpatient hospital
facility services before third-party liability and spenddown, is reduced five percent from
the current statutory rates. Facilities defined under section 256.969, subdivision 16, are
excluded from this paragraph.

Sec. 24.

Minnesota Statutes 2006, section 256B.76, is amended to read:

256B.76 PHYSICIAN AND DENTAL REIMBURSEMENT.

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

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

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

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

(4) effective for services rendered on or after January 1, 2000, payment rates for
physician and professional services shall be increased by three percent over the rates in
effect on December 31, 1999, except for home health agency and family planning agency
services; and

(5) the increases in clause (4) shall be implemented January 1, 2000, for managed
care.

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

(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25
percent above the rate in effect on June 30, 1992;

(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th
percentile of 1989, less the percent in aggregate necessary to equal the above increases;

(3) effective for services rendered on or after January 1, 2000, payment rates for
dental services shall be increased by three percent over the rates in effect on December
31, 1999;

(4) the commissioner shall award grants to community clinics or other nonprofit
community organizations, political subdivisions, professional associations, or other
organizations that demonstrate the ability to provide dental services effectively to public
program recipients. Grants may be used to fund the costs related to coordinating access for
recipients, developing and implementing patient care criteria, upgrading or establishing
new facilities, acquiring furnishings or equipment, recruiting new providers, or other
development costs that will improve access to dental care in a region. In awarding grants,
the commissioner shall give priority to applicants that plan to serve areas of the state in
which the number of dental providers is not currently sufficient to meet the needs of
recipients of public programs or uninsured individuals. The commissioner shall consider
the following in awarding the grants:

(i) potential to successfully increase access to an underserved population;

(ii) the ability to raise matching funds;

(iii) the long-term viability of the project to improve access beyond the period
of initial funding;

(iv) the efficiency in the use of the funding; and

(v) the experience of the proposers in providing services to the target population.

The commissioner shall monitor the grants and may terminate a grant if the grantee
does not increase dental access for public program recipients. The commissioner shall
consider grants for the following:

(i) implementation of new programs or continued expansion of current access
programs that have demonstrated success in providing dental services in underserved
areas;

(ii) a pilot program for utilizing hygienists outside of a traditional dental office to
provide dental hygiene services; and

(iii) a program that organizes a network of volunteer dentists, establishes a system to
refer eligible individuals to volunteer dentists, and through that network provides donated
dental care services to public program recipients or uninsured individuals;

(5) beginning October 1, 1999, the payment for tooth sealants and fluoride treatments
shall be the lower of (i) submitted charge, or (ii) 80 percent of median 1997 charges;

(6) the increases listed in clauses (3) and (5) shall be implemented January 1, 2000,
for managed care; and

(7) effective for services provided on or after January 1, 2002, payment for
diagnostic examinations and dental x-rays provided to children under age 21 shall be the
lower of (i) the submitted charge, or (ii) 85 percent of median 1999 charges.

(c) Effective for dental services rendered on or after January 1, 2002, the
commissioner deleted text begin may, within the limits of available appropriation, deleted text end new text begin shall new text end increase
reimbursements to dentists and dental clinics deemed by the commissioner to be critical
access dental providers. deleted text begin Reimbursement to a critical access dental provider may be
deleted text end deleted text begin increased by not more than 50 percent above the reimbursement rate that would deleted text end deleted text begin otherwise
be paid to the provider. Payments to health plan companies shall be adjusted to deleted text end new text begin For dental
services rendered on or after July 1, 2007, the commissioner shall increase reimbursement
by 33 percent above the reimbursement rate that would otherwise be paid to the critical
access dental provider. The commissioner shall pay the health plan companies in amounts
sufficient to new text end reflect increased reimbursements to critical access dental providers as
approved by the commissioner. In determining which dentists and dental clinics shall be
deemed critical access dental providers, the commissioner shall review:

(1) the utilization rate in the service area in which the dentist or dental clinic operates
for dental services to patients covered by medical assistance, general assistance medical
care, or MinnesotaCare as their primary source of coverage;

(2) the level of services provided by the dentist or dental clinic to patients covered
by medical assistance, general assistance medical care, or MinnesotaCare as their primary
source of coverage; and

(3) whether the level of services provided by the dentist or dental clinic is critical to
maintaining adequate levels of patient access within the service area.

In the absence of a critical access dental provider in a service area, the commissioner may
designate a dentist or dental clinic as a critical access dental provider if the dentist or
dental clinic is willing to provide care to patients covered by medical assistance, general
assistance medical care, or MinnesotaCare at a level which significantly increases access
to dental care in the service area.

deleted text begin The commissioner shall annually establish a reimbursement schedule for critical
deleted text end deleted text begin access dental providers and provider-specific limits on total reimbursement received
deleted text end deleted text begin under the reimbursement schedule, and shall notify each critical access dental provider
deleted text end deleted text begin of the schedule and limit.
deleted text end

(d) An entity that operates both a Medicare certified comprehensive outpatient
rehabilitation facility and a facility which was certified prior to January 1, 1993, that is
licensed under Minnesota Rules, parts 9570.2000 to 9570.3600, and for whom at least 33
percent of the clients receiving rehabilitation services in the most recent calendar year are
medical assistance recipients, shall be reimbursed by the commissioner for rehabilitation
services at rates that are 38 percent greater than the maximum reimbursement rate
allowed under paragraph (a), clause (2), when those services are (1) provided within the
comprehensive outpatient rehabilitation facility and (2) provided to residents of nursing
facilities owned by the entity.

(e) Effective for services rendered on or after January 1, 2007, the commissioner
shall make payments for physician and professional services based on the Medicare
relative value units (RVU's). This change shall be budget neutral and the cost of
implementing RVU's will be incorporated in the established conversion factor.

Sec. 25.

new text begin [256B.764] REIMBURSEMENT FOR FAMILY PLANNING SERVICES.
new text end

new text begin Effective for services rendered on or after July 1, 2007, payment rates for family
planning services shall be increased by 25 percent over the rates in effect June 30, 2007,
when these services are provided by a community clinic as defined in section 145.9268,
subdivision 1.
new text end

Sec. 26.

Minnesota Statutes 2006, section 256D.03, subdivision 3, is amended to read:

Subd. 3.

General assistance medical care; eligibility.

(a) General assistance
medical care may be paid for any person who is not eligible for medical assistance under
chapter 256B, including eligibility for medical assistance based on a spenddown of excess
income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in
paragraph (b), except as provided in paragraph (c), and:

(1) who is receiving assistance under section 256D.05, except for families with
children who are eligible under Minnesota family investment program (MFIP), or who is
having a payment made on the person's behalf under sections 256I.01 to 256I.06; or

(2) who is a resident of Minnesota; and

(i) who has gross countable income not in excess of 75 percent of the federal poverty
guidelines for the family size, using a six-month budget period and whose equity in assets
is not in excess of $1,000 per assistance unit. General assistance medical care is not
available for applicants or enrollees who are otherwise eligible for medical assistance but
fail to verify their assets. Enrollees who become eligible for medical assistance shall be
terminated and transferred to medical assistance. Exempt assets, the reduction of excess
assets, and the waiver of excess assets must conform to the medical assistance program in
section 256B.056, subdivision 3, with the following exception: the maximum amount of
undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by
the trustee, assuming the full exercise of the trustee's discretion under the terms of the
trust, must be applied toward the asset maximum;

(ii) who has gross countable income above 75 percent of the federal poverty
guidelines but not in excess of 175 percent of the federal poverty guidelines for the
family size, using a six-month budget period, whose equity in assets is not in excess
of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient
hospitalization; or

(iii) the commissioner shall adjust the income standards under this section each July
1 by the annual update of the federal poverty guidelines following publication by the
United States Department of Health and Human Services.

(b) Effective for applications and renewals processed on or after September 1, 2006,
general assistance medical care may not be paid for applicants or recipients who are adults
with dependent children under 21 whose gross family income is equal to or less than 275
percent of the federal poverty guidelines who are not described in paragraph (e).

(c) Effective for applications and renewals processed on or after September 1,
2006, general assistance medical care may be paid for applicants and recipients who
meet all eligibility requirements of paragraph (a), clause (2), item (i), for a temporary
period beginning the date of application. Immediately following approval of general
assistance medical care, enrollees shall be new text begin deemed eligible for MinnesotaCare based on
approval of general assistance medical care and new text end enrolled in MinnesotaCare under section
256L.04, subdivision 7, with covered services as provided in section 256L.03 for the rest
of the deleted text begin six-month deleted text end new text begin initial new text end eligibility period, until their deleted text begin six-month deleted text end new text begin annual new text end renewal. new text begin Prior to
the enrollees' annual renewal, enrollees must notify the commissioner of an increase in
income or having access to employer-subsidized health coverage that meets the definition
under section 256L.07, subdivision 2.
new text end

(d) To be eligible for general assistance medical care following enrollment in
MinnesotaCare as required by paragraph (c), an individual must complete a new
application.

(e) Applicants and recipients eligible under paragraph (a), clause (1); who have
applied for and are awaiting a determination of blindness or disability by the state medical
review team or a determination of eligibility for Supplemental Security Income or Social
Security Disability Insurance by the Social Security Administration; who fail to meet the
requirements of section 256L.09, subdivision 2; new text begin who are homeless as defined by United
States Code, title 42, section 11301, et seq.; new text end who are classified as end-stage renal disease
beneficiaries in the Medicare program; who are enrolled in private health care coverage as
defined in section 256B.02, subdivision 9; who are eligible under paragraph (j); or who
receive treatment funded pursuant to section 254B.02 are exempt from the MinnesotaCare
enrollment requirements of this subdivision.

(f) For applications received on or after October 1, 2003, eligibility may begin no
earlier than the date of application. For individuals eligible under paragraph (a), clause
(2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are
eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but
may reapply if there is a subsequent period of inpatient hospitalization.

(g) Beginning September 1, 2006, Minnesota health care program applications and
renewals completed by recipients and applicants who are persons described in paragraph
(c) and submitted to the county agency shall be determined for MinnesotaCare eligibility
by the county agency. If all other eligibility requirements of this subdivision are met,
eligibility for general assistance medical care shall be available in any month during which
MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare,
notice of termination for eligibility for general assistance medical care shall be sent to
an applicant or recipient. If all other eligibility requirements of this subdivision are
met, eligibility for general assistance medical care shall be available until enrollment in
MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).

(h) The date of an initial Minnesota health care program application necessary to
begin a determination of eligibility shall be the date the applicant has provided a name,
address, and Social Security number, signed and dated, to the county agency or the
Department of Human Services. If the applicant is unable to provide a name, address,
Social Security number, and signature when health care is delivered due to a medical
condition or disability, a health care provider may act on an applicant's behalf to establish
the date of an initial Minnesota health care program application by providing the county
agency or Department of Human Services with provider identification and a temporary
unique identifier for the applicant. The applicant must complete the remainder of the
application and provide necessary verification before eligibility can be determined. The
county agency must assist the applicant in obtaining verification if necessary.

(i) County agencies are authorized to use all automated databases containing
information regarding recipients' or applicants' income in order to determine eligibility for
general assistance medical care or MinnesotaCare. Such use shall be considered sufficient
in order to determine eligibility and premium payments by the county agency.

(j) General assistance medical care is not available for a person in a correctional
facility unless the person is detained by law for less than one year in a county correctional
or detention facility as a person accused or convicted of a crime, or admitted as an
inpatient to a hospital on a criminal hold order, and the person is a recipient of general
assistance medical care at the time the person is detained by law or admitted on a criminal
hold order and as long as the person continues to meet other eligibility requirements
of this subdivision.

(k) General assistance medical care is not available for applicants or recipients who
do not cooperate with the county agency to meet the requirements of medical assistance.

(l) In determining the amount of assets of an individual eligible under paragraph
(a), clause (2), item (i), there shall be included any asset or interest in an asset, including
an asset excluded under paragraph (a), that was given away, sold, or disposed of for
less than fair market value within the 60 months preceding application for general
assistance medical care or during the period of eligibility. Any transfer described in this
paragraph shall be presumed to have been for the purpose of establishing eligibility for
general assistance medical care, unless the individual furnishes convincing evidence to
establish that the transaction was exclusively for another purpose. For purposes of this
paragraph, the value of the asset or interest shall be the fair market value at the time it
was given away, sold, or disposed of, less the amount of compensation received. For any
uncompensated transfer, the number of months of ineligibility, including partial months,
shall be calculated by dividing the uncompensated transfer amount by the average monthly
per person payment made by the medical assistance program to skilled nursing facilities
for the previous calendar year. The individual shall remain ineligible until this fixed period
has expired. The period of ineligibility may exceed 30 months, and a reapplication for
benefits after 30 months from the date of the transfer shall not result in eligibility unless
and until the period of ineligibility has expired. The period of ineligibility begins in the
month the transfer was reported to the county agency, or if the transfer was not reported,
the month in which the county agency discovered the transfer, whichever comes first. For
applicants, the period of ineligibility begins on the date of the first approved application.

(m) When determining eligibility for any state benefits under this subdivision,
the income and resources of all noncitizens shall be deemed to include their sponsor's
income and resources as defined in the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and
subsequently set out in federal rules.

(n) Undocumented noncitizens and nonimmigrants are ineligible for general
assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual
in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and
an undocumented noncitizen is an individual who resides in the United States without the
approval or acquiescence of the Immigration and Naturalization Service.

(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for
medical assistance due to the deeming of a sponsor's income and resources, is ineligible
for general assistance medical care.

(p) Effective July 1, 2003, general assistance medical care emergency services end.

Sec. 27.

Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:

Subd. 4.

General assistance medical care; services.

(a)(i) For a person who is
eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical
care covers, except as provided in paragraph (c):

(1) inpatient hospital services;

(2) outpatient hospital services;

(3) services provided by Medicare certified rehabilitation agencies;

(4) prescription drugs and other products recommended through the process
established in section 256B.0625, subdivision 13;

(5) equipment necessary to administer insulin and diagnostic supplies and equipment
for diabetics to monitor blood sugar level;

(6) eyeglasses and eye examinations provided by a physician or optometrist;

(7) hearing aids;

(8) prosthetic devices;

(9) laboratory and X-ray services;

(10) physician's services;

(11) medical transportation except special transportation;

(12) chiropractic services as covered under the medical assistance program;

(13) podiatric services;

(14) dental services as covered under the medical assistance program;

(15) outpatient services provided by a mental health center or clinic that is under
contract with the county board and is established under section 245.62;

(16) day treatment services for mental illness provided under contract with the
county board;

(17) prescribed medications for persons who have been diagnosed as mentally ill as
necessary to prevent more restrictive institutionalization;

(18) psychological services, medical supplies and equipment, and Medicare
premiums, coinsurance and deductible payments;

(19) medical equipment not specifically listed in this paragraph when the use of
the equipment will prevent the need for costlier services that are reimbursable under
this subdivision;

(20) services performed by a certified pediatric nurse practitioner, a certified family
nurse practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological
nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse
practitioner in independent practice, if (1) the service is otherwise covered under this
chapter as a physician service, (2) the service provided on an inpatient basis is not included
as part of the cost for inpatient services included in the operating payment rate, and (3) the
service is within the scope of practice of the nurse practitioner's license as a registered
nurse, as defined in section 148.171;

(21) services of a certified public health nurse or a registered nurse practicing in
a public health nursing clinic that is a department of, or that operates under the direct
authority of, a unit of government, if the service is within the scope of practice of the
public health nurse's license as a registered nurse, as defined in section 148.171;

(22) telemedicine consultations, to the extent they are covered under section
256B.0625, subdivision 3b; deleted text begin and
deleted text end

(23) mental health telemedicine and psychiatric consultation as covered under
section 256B.0625, subdivisions 46 and 48 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (24) care coordination and patient education services provided by a community
health worker according to section 256B.0625, subdivision 49.
new text end

(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3,
paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited
to inpatient hospital services, including physician services provided during the inpatient
hospital stay. A $1,000 deductible is required for each inpatient hospitalization.

(b) Effective August 1, 2005, sex reassignment surgery is not covered under this
subdivision.

(c) In order to contain costs, the commissioner of human services shall select
vendors of medical care who can provide the most economical care consistent with high
medical standards and shall where possible contract with organizations on a prepaid
capitation basis to provide these services. The commissioner shall consider proposals by
counties and vendors for prepaid health plans, competitive bidding programs, block grants,
or other vendor payment mechanisms designed to provide services in an economical
manner or to control utilization, with safeguards to ensure that necessary services are
provided. Before implementing prepaid programs in counties with a county operated or
affiliated public teaching hospital or a hospital or clinic operated by the University of
Minnesota, the commissioner shall consider the risks the prepaid program creates for the
hospital and allow the county or hospital the opportunity to participate in the program in a
manner that reflects the risk of adverse selection and the nature of the patients served by
the hospital, provided the terms of participation in the program are competitive with the
terms of other participants considering the nature of the population served. Payment for
services provided pursuant to this subdivision shall be as provided to medical assistance
vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For
payments made during fiscal year 1990 and later years, the commissioner shall consult
with an independent actuary in establishing prepayment rates, but shall retain final control
over the rate methodology.

(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following
co-payments for services provided on or after October 1, 2003 new text begin , and before January 1, 2008 new text end :

(1) $25 for eyeglasses;

(2) $25 for nonemergency visits to a hospital-based emergency room;

(3) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness; and

(4) 50 percent coinsurance on restorative dental services.

(e) new text begin Recipients eligible under subdivision 3, paragraph (a), shall include the following
co-payments for services provided on or after January 1, 2008, and before December
31, 2008:
new text end

new text begin (1) $25 for nonemergency visits to a hospital-based emergency room; and
new text end

new text begin (2) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness.
new text end

new text begin (f) Recipients eligible under subdivision 3, paragraph (a), shall include a $25
co-payment for nonemergency visits to a hospital-based emergency room for services
provided on or after January 1, 2009.
new text end

new text begin (g) new text end Co-payments shall be limited to one per day per provider for nonpreventive
visits, eyeglasses, and nonemergency visits to a hospital-based emergency room.
Recipients of general assistance medical care are responsible for all co-payments in this
subdivision. The general assistance medical care reimbursement to the provider shall be
reduced by the amount of the co-payment, except that reimbursement for prescription
drugs shall not be reduced once a recipient has reached the $12 per month maximum for
prescription drug co-payments. The provider collects the co-payment from the recipient.
Providers may not deny services to recipients who are unable to pay the co-payment deleted text begin ,
except as provided in paragraph (f) deleted text end .

deleted text begin (f) If it is the routine business practice of a provider to refuse service to an individual
with uncollected debt, the provider may include uncollected co-payments under this
section. A provider must give advance notice to a recipient with uncollected debt before
services can be denied.
deleted text end

new text begin (h) General assistance medical care reimbursement to providers and payments to
managed care plans shall not be increased as a result of the removal of the co-payments
effective January 1, 2008. Effective January 1, 2009, reimbursement for prescription drugs
shall be restored to the extent that reimbursement was reduced due to the implementation
of co-payments.
new text end

deleted text begin (g) deleted text end new text begin (i) new text end Any county may, from its own resources, provide medical payments for
which state payments are not made.

deleted text begin (h) deleted text end new text begin (j) new text end Chemical dependency services that are reimbursed under chapter 254B must
not be reimbursed under general assistance medical care.

deleted text begin (i) deleted text end new text begin (k) new text end The maximum payment for new vendors enrolled in the general assistance
medical care program after the base year shall be determined from the average usual and
customary charge of the same vendor type enrolled in the base year.

deleted text begin (j) deleted text end new text begin (l) new text end The conditions of payment for services under this subdivision are the same
as the conditions specified in rules adopted under chapter 256B governing the medical
assistance program, unless otherwise provided by statute or rule.

deleted text begin (k) deleted text end new text begin (m) new text end Inpatient and outpatient payments shall be reduced by five percent, effective
July 1, 2003. This reduction is in addition to the five percent reduction effective July 1,
2003, and incorporated by reference in paragraph deleted text begin (i) deleted text end new text begin (k) new text end .

deleted text begin (l) deleted text end new text begin (n) new text end Payments for all other health services except inpatient, outpatient, and
pharmacy services shall be reduced by five percent, effective July 1, 2003.

deleted text begin (m) deleted text end new text begin (o) new text end Payments to managed care plans shall be reduced by five percent for services
provided on or after October 1, 2003.

deleted text begin (n) deleted text end new text begin (p) new text end A hospital receiving a reduced payment as a result of this section may apply
the unpaid balance toward satisfaction of the hospital's bad debts.

deleted text begin (o) deleted text end new text begin (q) new text end Fee-for-service payments for nonpreventive visits shall be reduced by $3
for services provided on or after January 1, 2006. For purposes of this subdivision, a
visit means an episode of service which is required because of a recipient's symptoms,
diagnosis, or established illness, and which is delivered in an ambulatory setting by
a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse,
audiologist, optician, or optometrist.

deleted text begin (p) deleted text end new text begin (r) new text end Payments to managed care plans shall not be increased as a result of the
removal of the $3 nonpreventive visit co-payment effective January 1, 2006.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 28.

Minnesota Statutes 2006, section 256L.01, subdivision 1, is amended to read:

Subdivision 1.

Scope.

For purposes of deleted text begin sections 256L.01 to 256L.18 deleted text end new text begin this chapter new text end ,
the following terms shall have the meanings given them.

Sec. 29.

Minnesota Statutes 2006, section 256L.01, subdivision 4, is amended to read:

Subd. 4.

Gross individual or gross family income.

(a) "Gross individual or gross
family income" for nonfarm self-employed means income calculated for the deleted text begin six-month deleted text end
new text begin 12-month new text end period of eligibility using the net profit or loss reported on the applicant's
federal income tax form for the previous year and using the medical assistance families
with children methodology for determining allowable and nonallowable self-employment
expenses and countable income.

(b) "Gross individual or gross family income" for farm self-employed means income
calculated for the deleted text begin six-month deleted text end new text begin 12-month new text end period of eligibility using as the baseline the
adjusted gross income reported on the applicant's federal income tax form for the previous
year deleted text begin and adding back in reported depreciation amounts that apply to the business in which
the family is currently engaged deleted text end .

(c) "Gross individual or gross family income" means the total income for all family
members, calculated for the deleted text begin six-month deleted text end new text begin 12-month new text end period of eligibility.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 30.

Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:

Subdivision 1.

Covered health services.

deleted text begin For individuals under section 256L.04,
subdivision 7, with income no greater than 75 percent of the federal poverty guidelines
or for families with children under section 256L.04, subdivision 1, all subdivisions of
this section apply. deleted text end "Covered health services" means the health services reimbursed
under chapter 256B, with the exception of inpatient hospital services, special education
services, private duty nursing services, adult dental care services other than services
covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency
medical transportation services, personal care assistant and case management services,
nursing home or intermediate care facilities services, inpatient mental health services,
and chemical dependency services. Outpatient mental health services covered under the
MinnesotaCare program are limited to diagnostic assessments, psychological testing,
explanation of findings, mental health telemedicine, psychiatric consultation, medication
management by a physician, day treatment, partial hospitalization, and individual, family,
and group psychotherapy.

No public funds shall be used for coverage of abortion under MinnesotaCare
except where the life of the female would be endangered or substantial and irreversible
impairment of a major bodily function would result if the fetus were carried to term; or
where the pregnancy is the result of rape or incest.

Covered health services shall be expanded as provided in this section.

Sec. 31.

Minnesota Statutes 2006, section 256L.03, subdivision 3, is amended to read:

Subd. 3.

Inpatient hospital services.

(a) Covered health services shall include
inpatient hospital services, including inpatient hospital mental health services and inpatient
hospital and residential chemical dependency treatment, subject to those limitations
necessary to coordinate the provision of these services with eligibility under the medical
assistance spenddown. deleted text begin Prior to July 1, 1997, the inpatient hospital benefit for adult
enrollees is subject to an annual benefit limit of $10,000. deleted text end The inpatient hospital benefit
for adult enrollees who qualify under section 256L.04, subdivision 7, or who qualify
under section 256L.04, subdivisions 1 and 2, with family gross income that exceeds
deleted text begin 175 deleted text end new text begin 200 new text end percent of the federal poverty guidelines new text begin or 215 percent of the federal poverty
guidelines on or after July 1, 2009, new text end and who are not pregnant, is subject to an annual
limit of deleted text begin $10,000 deleted text end new text begin $20,000 new text end .

(b) Admissions for inpatient hospital services paid for under section 256L.11,
subdivision 3, must be certified as medically necessary in accordance with Minnesota
Rules, parts 9505.0500 to 9505.0540, except as provided in clauses (1) and (2):

(1) all admissions must be certified, except those authorized under rules established
under section 254A.03, subdivision 3, or approved under Medicare; and

(2) payment under section 256L.11, subdivision 3, shall be reduced by five percent
for admissions for which certification is requested more than 30 days after the day of
admission. The hospital may not seek payment from the enrollee for the amount of the
payment reduction under this clause.

Sec. 32.

Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:

Subd. 5.

Co-payments and coinsurance.

(a) Except as provided in paragraphs (b)
and (c), the MinnesotaCare benefit plan shall include the following co-payments and
coinsurance requirements for all enrollees:

(1) ten percent of the paid charges for inpatient hospital services for adult enrollees,
subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and
$3,000 per family;

(2) $3 per prescription for adult enrollees;

(3) $25 for eyeglasses for adult enrollees;

(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an
episode of service which is required because of a recipient's symptoms, diagnosis, or
established illness, and which is delivered in an ambulatory setting by a physician or
physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
audiologist, optician, or optometrist; and

(5) $6 for nonemergency visits to a hospital-based emergency room.

(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of
children under the age of 21 deleted text begin in households with family income equal to or less than 175
percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to
parents and relative caretakers of children under the age of 21 in households with family
income greater than 175 percent of the federal poverty guidelines for inpatient hospital
admissions occurring on or after January 1, 2001 deleted text end .

(c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children
under the age of 21.

(d) Adult enrollees with family gross income that exceeds deleted text begin 175 deleted text end new text begin 200 new text end percent of the
federal poverty guidelines new text begin or 215 percent of the federal poverty guidelines on or after July
1, 2009, new text end and who are not pregnant shall be financially responsible for the coinsurance
amount, if applicable, and amounts which exceed the deleted text begin $10,000 deleted text end new text begin $20,000 new text end inpatient hospital
benefit limit.

(e) When a MinnesotaCare enrollee becomes a member of a prepaid health
plan, or changes from one prepaid health plan to another during a calendar year, any
charges submitted towards the deleted text begin $10,000 deleted text end new text begin $20,000 new text end annual inpatient benefit limit, and any
out-of-pocket expenses incurred by the enrollee for inpatient services, that were submitted
or incurred prior to enrollment, or prior to the change in health plans, shall be disregarded.

Sec. 33.

Minnesota Statutes 2006, section 256L.04, subdivision 1a, is amended to read:

Subd. 1a.

Social Security number required.

(a) Individuals and families applying
for MinnesotaCare coverage must provide a Social Security number. new text begin This requirement
does not apply to an undocumented noncitizen or nonimmigrant who is eligible for
MinnesotaCare.
new text end

(b) The commissioner shall not deny eligibility to an otherwise eligible applicant
who has applied for a Social Security number and is awaiting issuance of that Social
Security number.

(c) Newborns enrolled under section 256L.05, subdivision 3, are exempt from the
requirements of this subdivision.

(d) Individuals who refuse to provide a Social Security number because of
well-established religious objections are exempt from the requirements of this subdivision.
The term "well-established religious objections" has the meaning given in Code of Federal
Regulations, title 42, section 435.910.

Sec. 34.

Minnesota Statutes 2006, section 256L.04, subdivision 7, is amended to read:

Subd. 7.

Single adults and households with no children.

The definition of eligible
persons includes all individuals and households with no children who have gross family
incomes that are equal to or less than deleted text begin 175 deleted text end new text begin 200 new text end percent of the federal poverty guidelines. new text begin
Effective July 1, 2009, the definition of eligible persons includes all individuals and
households with no children who have gross family incomes that are equal to or less than
215 percent of the federal poverty guidelines.
new text end

Sec. 35.

Minnesota Statutes 2006, section 256L.04, subdivision 10, is amended to read:

Subd. 10.

Citizenship requirements.

new text begin (a) new text end Eligibility for MinnesotaCare is limited
to citizens or nationals of the United States, qualified noncitizens, and other persons
residing lawfully in the United States as described in section 256B.06, subdivision 4,
paragraphs (a) to (e) and (j). Undocumented noncitizens and nonimmigrants are ineligible
for MinnesotaCare. new text begin This paragraph does not apply to children. new text end

new text begin (b) new text end For purposes of this subdivision, a nonimmigrant is an individual in one or
more of the classes listed in United States Code, title 8, section 1101(a)(15), and an
undocumented noncitizen is an individual who resides in the United States without the
approval or acquiescence of the Immigration and Naturalization Service.

new text begin (c) new text end Families with children who are citizens or nationals of the United States must
cooperate in obtaining satisfactory documentary evidence of citizenship or nationality
according to the requirements of the federal Deficit Reduction Act of 2005, Public Law
109-171. new text begin State and county workers must assist applicants in obtaining satisfactory
documentary evidence of citizenship or nationality.
new text end

Sec. 36.

Minnesota Statutes 2006, section 256L.05, subdivision 1, is amended to read:

Subdivision 1.

Application and information availability.

Applications and deleted text begin other
information deleted text end new text begin application assistance new text end must be made available deleted text begin to deleted text end new text begin at new text end provider offices, local
human services agencies, school districts, public and private elementary schools in which
25 percent or more of the students receive free or reduced price lunches, community health
offices, deleted text begin and deleted text end Women, Infants and Children (WIC) program sites new text begin , Head Start program sites,
public housing councils, crisis nurseries, child care centers, early childhood education
and preschool program sites, legal aid offices, and libraries new text end . These sites may accept
applications and forward the forms to the commissioner new text begin or local county human services
agencies that choose to participate as an enrollment site new text end . Otherwise, applicants may apply
directly to the commissioner new text begin or to participating local county human services agencies new text end .
deleted text begin Beginning January 1, 2000, MinnesotaCare enrollment sites will be expanded to include
local county human services agencies which choose to participate.
deleted text end

Sec. 37.

Minnesota Statutes 2006, section 256L.05, subdivision 1b, is amended to read:

Subd. 1b.

MinnesotaCare enrollment by county agencies.

Beginning September
1, 2006, county agencies shall enroll single adults and households with no children
formerly enrolled in general assistance medical care in MinnesotaCare according to
section 256D.03, subdivision 3. County agencies shall perform all duties necessary
to administer the MinnesotaCare program ongoing for these enrollees, including the
redetermination of MinnesotaCare eligibility at deleted text begin six-month deleted text end renewal.

Sec. 38.

Minnesota Statutes 2006, section 256L.05, subdivision 2, is amended to read:

Subd. 2.

Commissioner's duties.

deleted text begin (a) deleted text end The commissioner or county agency shall
use electronic verification as the primary method of income verification. If there is a
discrepancy between reported income and electronically verified income, an individual
may be required to submit additional verification. In addition, the commissioner shall
perform random audits to verify reported income and eligibility. The commissioner
may execute data sharing arrangements with the Department of Revenue and any other
governmental agency in order to perform income verification related to eligibility and
premium payment under the MinnesotaCare program.

deleted text begin (b) In determining eligibility for MinnesotaCare, the commissioner shall require
applicants and enrollees seeking renewal of eligibility to verify both earned and unearned
income. The commissioner shall also require applicants and enrollees to submit the names
of their employers and a contact name with a telephone number for each employer for
purposes of verifying whether the applicant or enrollee, and any dependents, are eligible
for employer-subsidized coverage. Data collected is nonpublic data as defined in section
deleted text begin 13.02, subdivision 9 deleted text end .
deleted text end

Sec. 39.

Minnesota Statutes 2006, section 256L.05, subdivision 3a, is amended to read:

Subd. 3a.

Renewal of eligibility.

(a) Beginning deleted text begin January 1, 1999 deleted text end new text begin July 1, 2007 new text end , an
enrollee's eligibility must be renewed every 12 months. The 12-month period begins in
the month after the month the application is approved.

(b) deleted text begin Beginning October 1, 2004, an enrollee's eligibility must be renewed every
six months. The first six-month period of eligibility begins the month the application is
received by the commissioner. The effective date of coverage within the first six-month
period of eligibility is as provided in subdivision 3. deleted text end Each new period of eligibility must
take into account any changes in circumstances that impact eligibility and premium
amount. An enrollee must provide all the information needed to redetermine eligibility by
the first day of the month that ends the eligibility period. The premium for the new period
of eligibility must be received as provided in section 256L.06 in order for eligibility to
continue.

(c) For single adults and households with no children formerly enrolled in general
assistance medical care and enrolled in MinnesotaCare according to section 256D.03,
subdivision 3, the first deleted text begin six-month deleted text end period of eligibility begins the month the enrollee
submitted the application or renewal for general assistance medical care.

Sec. 40.

Minnesota Statutes 2006, section 256L.07, subdivision 1, is amended to read:

Subdivision 1.

General requirements.

(a) deleted text begin Children enrolled in the original
children's health plan as of September 30, 1992, children who enrolled in the
MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549,
article 4, section 17, and children who have family gross incomes that are equal to or
less than 150 percent of the federal poverty guidelines are eligible without meeting
the requirements of subdivision 2 and the four-month requirement in subdivision 3, as
long as they maintain continuous coverage in the MinnesotaCare program or medical
assistance. Children who apply for MinnesotaCare on or after the implementation date
of the employer-subsidized health coverage program as described in Laws 1998, chapter
407, article 5, section 45, who have family gross incomes that are equal to or less than 150
percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to
be eligible for MinnesotaCare.
deleted text end

deleted text begin (b) deleted text end Families enrolled in MinnesotaCare under section 256L.04, subdivision 1,
whose income increases above 275 percent of the federal poverty guidelines, are no
longer eligible for the program and shall be disenrolled by the commissioner. Individuals
enrolled in MinnesotaCare under section 256L.04, subdivision 7, whose income increases
above deleted text begin 175 deleted text end new text begin 200 new text end percent of the federal poverty guidelines new text begin or 215 percent of the federal
poverty guidelines on or after July 1, 2009, new text end are no longer eligible for the program and
shall be disenrolled by the commissioner. For persons disenrolled under this subdivision,
MinnesotaCare coverage terminates the last day of the calendar month following the
month in which the commissioner determines that the income of a family or individual
exceeds program income limits.

deleted text begin (c) deleted text end new text begin (b) new text end Notwithstanding paragraph deleted text begin (b) deleted text end new text begin (a) new text end , children may remain enrolled in
MinnesotaCare if ten percent of their gross individual or gross family income as defined
in section 256L.01, subdivision 4, is less than the new text begin annual new text end premium for a deleted text begin six-month deleted text end
policy with a $500 deductible available through the Minnesota Comprehensive Health
Association. Children who are no longer eligible for MinnesotaCare under this clause shall
be given a 12-month notice period from the date that ineligibility is determined before
disenrollment. The premium for children remaining eligible under this clause shall be the
maximum premium determined under section 256L.15, subdivision 2, paragraph (b).

deleted text begin (d) Notwithstanding paragraphs (b) and (c), parents are not eligible for
MinnesotaCare if gross household income exceeds $25,000 for the six-month period
of eligibility.
deleted text end

Sec. 41.

Minnesota Statutes 2006, section 256L.07, subdivision 2, is amended to read:

Subd. 2.

Must not have access to employer-subsidized coverage.

(a) To be
eligible, deleted text begin a family or individual deleted text end new text begin an adult new text end must not have access to subsidized health coverage
through an employer and must not have had access to employer-subsidized coverage
through a current employer for 18 months prior to application or reapplication. deleted text begin A family
or individual deleted text end new text begin An adult new text end whose employer-subsidized coverage is lost due to an employer
terminating health care coverage as an employee benefit during the previous 18 months
is not eligible.

(b) This subdivision does not apply to deleted text begin a family or individual deleted text end new text begin an adult new text end who was
enrolled in MinnesotaCare within six months or less of reapplication and who no longer
has employer-subsidized coverage due to the employer terminating health care coverage
as an employee benefit.

(c) For purposes of this requirement, subsidized health coverage means health
coverage for which the employer pays at least 50 percent of the cost of coverage for
the employee or dependent, or a higher percentage as specified by the commissioner.
deleted text begin Children are eligible for employer-subsidized coverage through either parent, including
the noncustodial parent. deleted text end The commissioner must treat employer contributions to Internal
Revenue Code Section 125 plans and any other employer benefits intended to pay
health care costs as qualified employer subsidies toward the cost of health coverage for
employees for purposes of this subdivision.

new text begin (d) Notwithstanding paragraph (c), if the cost of the employer's health plan coverage
is greater than eight percent of the applicant's family gross income, the applicant shall
not be deemed as having access to employer-subsidized health coverage under this
subdivision. For purposes of determining the cost of the employer's health plan coverage,
the commissioner shall determine the annual premium that the employee is required to pay
for the coverage, plus any deductibles required under the health plan.
new text end

new text begin (e) This subdivision does not apply to children.
new text end

Sec. 42.

Minnesota Statutes 2006, section 256L.07, subdivision 3, is amended to read:

Subd. 3.

Other health coverage.

(a) deleted text begin Families and individuals deleted text end new text begin Adults new text end enrolled in the
MinnesotaCare program must have no health coverage while enrolled or for at least four
months prior to application and renewal. deleted text begin Children enrolled in the original children's health
plan and children in families with income equal to or less than 150 percent of the federal
poverty guidelines, who have other health insurance, are eligible if the coverage:
deleted text end

deleted text begin (1) lacks two or more of the following:
deleted text end

deleted text begin (i) basic hospital insurance;
deleted text end

deleted text begin (ii) medical-surgical insurance;
deleted text end

deleted text begin (iii) prescription drug coverage;
deleted text end

deleted text begin (iv) dental coverage; or
deleted text end

deleted text begin (v) vision coverage;
deleted text end

deleted text begin (2) requires a deductible of $100 or more per person per year; or
deleted text end

deleted text begin (3) lacks coverage because the child has exceeded the maximum coverage for a
particular diagnosis or the policy excludes a particular diagnosis.
deleted text end

The commissioner may change this eligibility criterion for sliding scale premiums in
order to remain within the limits of available appropriations. deleted text begin The requirement of no health
coverage deleted text end new text begin This paragraph new text end does not apply to deleted text begin newborns deleted text end new text begin children new text end .

(b) Medical assistance, general assistance medical care, and the Civilian Health and
Medical Program of the Uniformed Service, CHAMPUS, or other coverage provided under
United States Code, title 10, subtitle A, part II, chapter 55, are not considered insurance or
health coverage for purposes of the four-month requirement described in this subdivision.

(c) For purposes of this subdivision, an applicant or enrollee who is entitled to
Medicare Part A or enrolled in Medicare Part B coverage under title XVIII of the Social
Security Act, United States Code, title 42, sections 1395c to 1395w-152, is considered to
have health coverage. An applicant or enrollee who is entitled to premium-free Medicare
Part A may not refuse to apply for or enroll in Medicare coverage to establish eligibility
for MinnesotaCare.

(d) Applicants who were recipients of medical assistance or general assistance
medical care within one month of application must meet the provisions of this subdivision
and subdivision 2.

(e) Cost-effective health insurance that was paid for by medical assistance is not
considered health coverage for purposes of the four-month requirement under this
section, except if the insurance continued after medical assistance no longer considered it
cost-effective or after medical assistance closed.

Sec. 43.

Minnesota Statutes 2006, section 256L.07, subdivision 6, is amended to read:

Subd. 6.

Exception for certain adults.

Single adults and households with
no children formerly enrolled in general assistance medical care and enrolled in
MinnesotaCare according to section 256D.03, subdivision 3, are eligible without meeting
the requirements of this section until deleted text begin six-month deleted text end renewal.

Sec. 44.

Minnesota Statutes 2006, section 256L.09, subdivision 4, is amended to read:

Subd. 4.

Eligibility as Minnesota resident.

(a) For purposes of this section, a
permanent Minnesota resident is a person who has demonstrated, through persuasive and
objective evidence, that the person is domiciled in the state and intends to live in the
state permanently.

(b) To be eligible as a permanent resident, an applicant must demonstrate the
requisite intent to live in the state permanently by:

(1) showing that the applicant maintains a residence at a verified address deleted text begin other than a
place of public accommodation deleted text end , through the use of evidence of residence described in
section 256D.02, subdivision 12a, new text begin paragraph (b), new text end clause deleted text begin (1) deleted text end new text begin (2) new text end ;

(2) demonstrating that the applicant has been continuously domiciled in the state for
no less than 180 days immediately before the application; and

(3) signing an affidavit declaring that (A) the applicant currently resides in the state
and intends to reside in the state permanently; and (B) the applicant did not come to the
state for the primary purpose of obtaining medical coverage or treatment.

(c) A person who is temporarily absent from the state does not lose eligibility for
MinnesotaCare. "Temporarily absent from the state" means the person is out of the state
for a temporary purpose and intends to return when the purpose of the absence has been
accomplished. A person is not temporarily absent from the state if another state has
determined that the person is a resident for any purpose. If temporarily absent from the
state, the person must follow the requirements of the health plan in which the person is
enrolled to receive services.

Sec. 45.

Minnesota Statutes 2006, section 256L.11, subdivision 7, is amended to read:

Subd. 7.

Critical access dental providers.

Effective for dental services provided
to MinnesotaCare enrollees on or after January 1, 2007, the commissioner shall increase
payment rates to dentists and dental clinics deemed by the commissioner to be critical
access providers under section 256B.76, paragraph (c), by 50 percent above the payment
rate that would otherwise be paid to the provider. The commissioner shall deleted text begin adjust the rates
paid on or after January 1, 2007, deleted text end new text begin pay the new text end deleted text begin to deleted text end prepaid health plans under contract with the
commissioner new text begin amounts sufficient new text end to reflect this rate increase. The prepaid health plan must
pass this rate increase to providers who have been identified by the commissioner as
critical access dental providers under section 256B.76, paragraph (c).

Sec. 46.

Minnesota Statutes 2006, section 256L.15, subdivision 1, is amended to read:

Subdivision 1.

Premium determination.

(a) Families with children and individuals
shall pay a premium determined according to subdivision 2.

(b) Pregnant women and children under age two are exempt from the provisions
of section 256L.06, subdivision 3, paragraph (b), clause (3), requiring disenrollment
for failure to pay premiums. For pregnant women, this exemption continues until the
first day of the month following the 60th day postpartum. Women who remain enrolled
during pregnancy or the postpartum period, despite nonpayment of premiums, shall be
disenrolled on the first of the month following the 60th day postpartum for the penalty
period that otherwise applies under section 256L.06, unless they begin paying premiums.

new text begin (c) Members of the military and their families who meet the eligibility criteria
for MinnesotaCare upon eligibility approval made within 24 months following the end
of the member's tour of active duty shall have their premiums paid by the commissioner.
The effective date of coverage for an individual or family who meets the criteria of this
paragraph shall be the first day of the month following the month in which eligibility is
approved. This exemption applies for 12 months.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, or upon federal
approval, whichever is later. The commissioner of human services shall notify the Office
of the Revisor of Statutes when federal approval is obtained.
new text end

Sec. 47.

Minnesota Statutes 2006, section 256L.15, subdivision 2, is amended to read:

Subd. 2.

Sliding fee scale; monthly gross individual or family income.

(a) The
commissioner shall establish a sliding fee scale to determine the percentage of monthly
gross individual or family income that households at different income levels must pay
to obtain coverage through the MinnesotaCare program. The sliding fee scale must be
based on the enrollee's monthly gross individual or family income. The sliding fee scale
must contain separate tables based on enrollment of one, two, or three or more persons.
The sliding fee scale begins with a premium of 1.5 percent of monthly gross individual or
family income for individuals or families with incomes below the limits for the medical
assistance program for families and children in effect on January 1, 1999, and proceeds
through the following evenly spaced steps: 1.8, 2.3, 3.1, 3.8, 4.8, 5.9, 7.4, and 8.8 percent.
These percentages are matched to evenly spaced income steps ranging from the medical
assistance income limit for families and children in effect on January 1, 1999, to 275
percent of the federal poverty guidelines for the applicable family size, up to a family size
of five. The sliding fee scale for a family of five must be used for families of more than
five. deleted text begin Effective October 1, 2003, the commissioner shall increase each percentage by 0.5
percentage points for enrollees with income greater than 100 percent but not exceeding
200 percent of the federal poverty guidelines and shall increase each percentage by 1.0
percentage points for families and children with incomes greater than 200 percent of
the federal poverty guidelines. deleted text end The sliding fee scale and percentages are not subject to
the provisions of chapter 14. If a family or individual reports increased income after
enrollment, premiums shall be adjusted at the time the change in income is reported.

(b) deleted text begin Children in deleted text end Families whose gross income is above 275 percent of the federal
poverty guidelines shall pay the maximum premium. The maximum premium is defined
as a base charge for one, two, or three or more enrollees so that if all MinnesotaCare
cases paid the maximum premium, the total revenue would equal the total cost of
MinnesotaCare medical coverage and administration. In this calculation, administrative
costs shall be assumed to equal ten percent of the total. The costs of medical coverage
for pregnant women and children under age two and the enrollees in these groups shall
be excluded from the total. The maximum premium for two enrollees shall be twice the
maximum premium for one, and the maximum premium for three or more enrollees shall
be three times the maximum premium for one.

deleted text begin (c) After calculating the percentage of premium each enrollee shall pay under
paragraph (a), eight percent shall be added to the premium.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 48.

Minnesota Statutes 2006, section 256L.15, subdivision 4, is amended to read:

Subd. 4.

Exception for transitioned adults.

County agencies shall pay premiums
for single adults and households with no children formerly enrolled in general assistance
medical care and enrolled in MinnesotaCare according to section 256D.03, subdivision 3,
deleted text begin until six-month renewal deleted text end new text begin for six months new text end . The county agency has the option of continuing to
pay premiums for these enrollees past the first deleted text begin six-month deleted text end new text begin six months until the 12-month
new text end renewal period.

Sec. 49.

Minnesota Statutes 2006, section 256L.17, subdivision 2, is amended to read:

Subd. 2.

Limit on total assets.

(a) Effective July 1, 2002, or upon federal approval,
whichever is later, in order to be eligible for the MinnesotaCare program, a household of
two or more persons must not own more than $20,000 in total net assets, and a household
of one person must not own more than $10,000 in total net assets.

(b) For purposes of this subdivision, assets are determined according to section
256B.056, subdivision 3c new text begin , except that workers' compensation settlements received due to
a work-related injury shall not be considered new text end .

(c) State-funded MinnesotaCare is not available for applicants or enrollees who are
otherwise eligible for medical assistance but fail to verify assets. Enrollees who become
eligible for federally funded medical assistance shall be terminated from state-funded
MinnesotaCare and transferred to medical assistance.

Sec. 50.

Minnesota Statutes 2006, section 256L.17, subdivision 3, is amended to read:

Subd. 3.

Documentation.

(a) The commissioner of human services shall require
individuals and families, at the time of application or renewal, to indicate on a checkoff
form developed by the commissioner whether they satisfy the MinnesotaCare asset
requirement. deleted text begin This form must include the following or similar language: "To be eligible for
MinnesotaCare, individuals and families must not own net assets in excess of $30,000
for a household of two or more persons or $15,000 for a household of one person, not
including a homestead, household goods and personal effects, assets owned by children,
vehicles used for employment, court-ordered settlements up to $10,000, individual
retirement accounts, and capital and operating assets of a trade or business up to $200,000.
Do you and your household own net assets in excess of these limits?"
deleted text end

(b) The commissioner may require individuals and families to provide any
information the commissioner determines necessary to verify compliance with the asset
requirement, if the commissioner determines that there is reason to believe that an
individual or family has assets that exceed the program limit.

Sec. 51.

Minnesota Statutes 2006, section 256L.17, subdivision 7, is amended to read:

Subd. 7.

Exception for certain adults.

Single adults and households with
no children formerly enrolled in general assistance medical care and enrolled in
MinnesotaCare according to section 256D.03, subdivision 3, are exempt from the
requirements of this section until deleted text begin six-month deleted text end renewal.

Sec. 52.

new text begin [256L.20] MINNESOTACARE OPTION FOR SMALL EMPLOYERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Dependent" means an unmarried child who is under the age of 21 and who is
not eligible for employer-subsidized health coverage.
new text end

new text begin (c) "Eligible employee" means an employee who works at least 20 hours per week
for an eligible employer. Eligible employee does not include an employee who works
on a temporary or substitute basis or who does not work more than 26 weeks annually.
Coverage of an eligible employee includes the employee's spouse if the spouse does not
have access to employer-subsidized health coverage.
new text end

new text begin (d) "Eligible employer" means a business that employs at least two, but not more
than 50, eligible employees, the majority of whom are employed in the state, and includes
a municipality that has 50 or fewer employees.
new text end

new text begin (e) "Employer-subsidized health coverage" has the meaning given under section
256L.07, subdivision 2, paragraphs (c) and (d).
new text end

new text begin (f) "Maximum premium" has the meaning given under section 256L.15, subdivision
2, paragraph (b), except that the cost of medical coverage for single adults and households
without children formerly enrolled in general assistance medical care and enrolled in
MinnesotaCare in accordance with section 256D.03, subdivision 3, paragraph (c), are
excluded from the total cost when determining the maximum premium.
new text end

new text begin (g) "Participating employer" means an eligible employer who meets the requirements
in subdivision 3 and applies to the commissioner to enroll its eligible employees and their
dependents in the MinnesotaCare program.
new text end

new text begin (h) "Program" means the MinnesotaCare program.
new text end

new text begin Subd. 2. new text end

new text begin Application and renewal procedures. new text end

new text begin (a) Eligible employees and their
dependents may enroll in MinnesotaCare through their employer if their employer meets
the requirements of subdivision 3. The commissioner shall establish procedures for an
eligible employer to participate in the program. The commissioner shall provide an
employer with applications for each eligible employee. The employee must fill out the
application and submit it to the employer. The employer must submit the completed
applications to the commissioner. The commissioner shall determine eligibility for the
program and determine the premiums owed by the employer for each eligible employee.
The commissioner may require eligible employees to provide income verification to
determine premiums.
new text end

new text begin (b) The effective date of coverage is according to section 256L.05, subdivision 3.
new text end

new text begin (c) An employer's eligibility must be renewed every 12 months. At that time, all
eligible employees enrolled in the program regardless of their enrollment date must
reapply.
new text end

new text begin (d) A participating employer must inform the commissioner of any changes in its
employees and premiums must be adjusted accordingly beginning the first day of the
month following the month in which the change is reported. An employer's premiums
shall not be adjusted due to a change in an employee's income until the next renewal
period. Eligible employees hired after enrollment must fill out an application and submit
the application to the commissioner. Employees who terminate their employment with
the participating employer shall remain enrolled in the program until the last day of the
month in which employment is terminated. A terminating employee may remain in the
MinnesotaCare program if the employee meets the eligibility requirements of enrollment
described in sections 256L.01 to 256L.18.
new text end

new text begin Subd. 3. new text end

new text begin Employer requirements. new text end

new text begin In order to participate, an eligible employer
must meet the following requirements:
new text end

new text begin (1) agree to contribute toward the cost of the premium for the employee, the
employee's spouse, and the employee's dependents according to subdivision 4;
new text end

new text begin (2) certify that each eligible employee was informed of the availability of coverage
through the program and that at least 75 percent of its eligible employees are planning to
or are enrolled in the program; and
new text end

new text begin (3) have not provided employer-subsidized health coverage as an employee benefit
during the previous 12 months, as defined in section 256L.07, subdivision 2, paragraph (c).
new text end

new text begin Subd. 4. new text end

new text begin Premiums. new text end

new text begin (a) The premium for coverage provided under this section is
equal to the maximum premium as defined in subdivision 1 regardless of the income
of the eligible employee.
new text end

new text begin (b) For eligible employees without dependents with a gross family income equal to
or less than 200 percent of the federal poverty guidelines or 215 percent of the federal
poverty guidelines on or after July 1, 2009, and for eligible employees with dependents
whose gross family income is equal to or less than 275 percent of the federal poverty
guidelines, the participating employer shall pay 50 percent of the premium established
under paragraph (a) for the eligible employee, the employee's spouse, and any dependents,
if applicable.
new text end

new text begin (c) For eligible employees without dependents with a gross family income over 200
percent of the federal poverty guidelines or 215 percent of the federal poverty guidelines
on or after July 1, 2009, and for eligible employees with dependents with a gross family
income over 275 percent of the federal poverty guidelines, the participating employer shall
pay the full cost of the premium established under paragraph (a) for the eligible employee,
the employee's spouse, and any dependents, if applicable. The participating employer may
require the employee to pay a portion of the cost of the premium so long as the employer
pays at least 50 percent. If the employer requires the employee to pay a portion of the
premium, the employee shall pay the portion of the cost to the employer.
new text end

new text begin (d) The commissioner shall collect premium payments from participating employers
for eligible employees, spouses, and dependents who are covered by the program as
provided under this section. All premiums collected shall be deposited in the health care
access fund.
new text end

new text begin (e) Nonpayment of premiums by a participating employer will result in the
disenrollment of all eligible employees, spouses, and dependents from the program
effective the end of the month in which the premium was due.
new text end

new text begin Subd. 5. new text end

new text begin Coverage. new text end

new text begin (a) The coverage offered to those enrolled in the program under
this section shall include all health services described under section 256L.03 and all
co-payments and coinsurance requirements under section 256L.03 shall apply except for
as provided under paragraph (b).
new text end

new text begin (b) Notwithstanding paragraph (a), the inpatient hospital benefit annual limit in
section 256L.03, subdivision 3, does not apply to adult enrollees enrolled in the program
under this section.
new text end

new text begin Subd. 6. new text end

new text begin Enrollment. new text end

new text begin For purposes of enrollment under this section, income
eligibility limits established under sections 256L.04 and 256L.07, asset limits established
under section 256L.17, and the barriers established under section 256L.07, subdivision 2
or 3, do not apply to applicants eligible for this program unless specified in this section.
The residency requirement under section 256L.09 applies to this section.
new text end

new text begin Subd. 7. new text end

new text begin Outreach. new text end

new text begin The commissioner shall provide information on the availability
of this buy-in option for small employers and application forms to entities that provide
insurance information to small employers, including, but not limited to, insurance agents
and chambers of commerce. The commissioner shall establish an assistance fee of $25 per
enrolled employee for such entities that assist eligible employers and their employees in
applying to the program.
new text end

new text begin Subd. 8. new text end

new text begin Provider payment. new text end

new text begin (a) Payment to providers under this section shall be
the same rates and conditions under section 256L.12 except that payments for inpatient
hospital services for employees without dependents and for the adult employees with
dependents with gross family incomes greater than 200 percent of the federal poverty
guidelines shall be paid according to paragraph (b).
new text end

new text begin (b) The commissioner shall pay hospitals the medical assistance rate for inpatient
hospital services established under section 256.969 minus the $20,000 annual inpatient
benefit limit and any applicable co-payments or coinsurance requirements.
new text end

Sec. 53. new text begin IMPLEMENTATION.
new text end

new text begin The commissioner of human services shall implement the amendments to Minnesota
Statutes, sections 256.969, subdivision 9; 256.969, subdivision 27; and 256B.199, on the
earliest date for which the Centers for Medicare and Medicaid Services grants approval.
The commissioner may alter the reporting date for Hennepin County and Hennepin
County Medical Center in Minnesota Statutes, section 256.969, subdivision 9, paragraph
(f), clause (2), to reflect the approved effective date.
new text end

Sec. 54. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 256B.0631, subdivision 4; 256L.035; and
256L.07, subdivision 2a, new text end new text begin are repealed.
new text end

ARTICLE 5

CONTINUING CARE

Section 1.

Minnesota Statutes 2006, section 47.58, subdivision 8, is amended to read:

Subd. 8.

Counseling; requirement; penalty.

A lender, mortgage banking company,
or other mortgage lender not related to the mortgagor must keep a certificate on file
documenting that the borrower, prior to entering into the reverse mortgage loan, received
counseling as defined in this subdivision from an organization that meets the requirements
of section 462A.209 and is a housing counseling agency approved by the Department of
Housing and Urban Development. The certificate must be signed by the mortgagor and
the counselor and include the date of the counseling, the name, address, and telephone
number of both the mortgagor and the organization providing counseling. A failure by
the lender to comply with this subdivision results in a $1,000 civil penalty payable to
the mortgagor. For the purposes of this subdivision, "counseling" means the following
services are provided to the borrower:

(1) a review of the advantages and disadvantages of reverse mortgage programs;

(2) an explanation of how the reverse mortgage affects the borrower's estate and
public benefits;

(3) an explanation of the lending process;

(4) a discussion of the borrower's supplemental income needs; deleted text begin and
deleted text end

(5) new text begin an explanation of the provisions of sections 256B.0913, subdivision 17, and
462A.05, subdivision 42; and
new text end

new text begin (6) new text end an opportunity to ask questions of the counselor.

Sec. 2.

new text begin [252.295] LICENSING EXCEPTION.
new text end

new text begin (a) Notwithstanding section 252.294, the commissioner may license two six-bed,
level B intermediate care facilities for persons with developmental disabilities (ICF's/MR)
to replace a 15-bed level A facility in Minneapolis that is not accessible to persons with
disabilities. The new facilities must be accessible to persons with disabilities and must
be located on a different site or sites in Hennepin County. Notwithstanding section
256B.5012, the payment rate at the new facilities is $200.47 plus any rate adjustments for
ICF's/MR effective on or after July 1, 2007.
new text end

new text begin (b) Notwithstanding section 252.294, the commissioner may license one five-bed
level B intermediate care facility for persons with developmental disabilities to replace
a downsized 21-bed facility attached to a day training and habilitation program in
Chisholm. Notwithstanding section 256B.5012, the facility must serve persons who
require substantial nursing care and are able to leave the facility to receive day training
and habilitation services. The payment rate at this facility is $274.50.
new text end

new text begin (c) Notwithstanding section 256B.5012, the payment rate of a six-bed level B
intermediate care facility in Hibbing for persons with developmental disabilities who
require substantial nursing care and are able to leave the facility to receive day training
and habilitation services shall be increased to $250.84 effective July 1, 2007.
new text end

new text begin (d) The payment rates in paragraphs (b) and (c) are effective until state rate-setting
adjustments occur in 2009 or until October 1, 2009, whichever occurs first.
new text end

Sec. 3.

Minnesota Statutes 2006, section 252.32, subdivision 3, is amended to read:

Subd. 3.

Amount of support grant; use.

Support grant amounts shall be
determined by the county social service agency. Services and items purchased with a
support grant must:

(1) be over and above the normal costs of caring for the dependent if the dependent
did not have a disability;

(2) be directly attributable to the dependent's disabling condition; and

(3) enable the family to delay or prevent the out-of-home placement of the dependent.

The design and delivery of services and items purchased under this section must suit
the dependent's chronological age and be provided in the least restrictive environment
possible, consistent with the needs identified in the individual service plan.

Items and services purchased with support grants must be those for which there
are no other public or private funds available to the family. Fees assessed to parents
for health or human services that are funded by federal, state, or county dollars are not
reimbursable through this program.

In approving or denying applications, the county shall consider the following factors:

(1) the extent and areas of the functional limitations of the disabled child;

(2) the degree of need in the home environment for additional support; and

(3) the potential effectiveness of the grant to maintain and support the person in
the family environment.

The maximum monthly grant amount shall be $250 per eligible dependent, or
$3,000 per eligible dependent per state fiscal year, within the limits of available funds new text begin and
as adjusted by any legislatively authorized cost-of-living adjustment new text end . The county social
service agency may consider the dependent's supplemental security income in determining
the amount of the support grant.

Any adjustments to their monthly grant amount must be based on the needs of the
family and funding availability.

Sec. 4.

Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Reverse mortgage information and referral. new text end

new text begin The commissioner, in
cooperation with the commissioner of the Minnesota Housing Finance Agency, shall:
new text end

new text begin (1) establish an information and referral system to inform eligible persons regarding
the availability of reverse mortgages and state incentives available to persons who take
out certain reverse mortgages. The information and referral system shall be established
involving the Senior LinkAge Line, county and tribal agencies, community housing
agencies and organizations, Minnesota-certified reverse mortgage counselors, reverse
mortgage lenders, senior and elder community organizations, and other relevant entities;
and
new text end

new text begin (2) coordinate necessary training for Senior LinkAge Line employees, mortgage
counselors, and lenders regarding the provisions of sections 256B.0913, subdivision
17, and 462A.05, subdivision 42.
new text end

Sec. 5.

Minnesota Statutes 2006, section 256.482, subdivision 1, is amended to read:

Subdivision 1.

Establishment; members.

There is hereby established the Council
on Disability which shall consist of 21 members appointed by the governor. Members
shall be appointed from the general public and from organizations which provide services
for persons who have a disability. A majority of council members shall be persons with a
disability or parents or guardians of persons with a disability. There shall be at least
one member of the council appointed from each of the state development regions. The
commissioners of the Departments of Education, Human Services, Health, and Human
Rights and the directors of the Rehabilitation Services and State Services for the Blind in
the Department of Employment and Economic Development or their designees shall serve
as ex officio members of the council without vote. In addition, the council may appoint ex
officio members from other bureaus, divisions, or sections of state departments which are
directly concerned with the provision of services to persons with a disability.

Notwithstanding the provisions of section 15.059, each member of the council
appointed by the governor shall serve a three-year term and until a successor is appointed
and qualified. The compensation and removal of all members shall be as provided in
section 15.059. new text begin The council performs functions that are not purely advisory, therefore the
expiration dates provided in section 15.059 do not apply. new text end The governor shall appoint a
chair of the council from among the members appointed from the general public or who
are persons with a disability or their parents or guardians. Vacancies shall be filled by the
authority for the remainder of the unexpired term.

Sec. 6.

Minnesota Statutes 2006, section 256.482, subdivision 8, is amended to read:

deleted text begin Subd. 8. deleted text end

deleted text begin Sunset. deleted text end

deleted text begin Notwithstanding section deleted text begin 15.059, subdivision 5 deleted text end , the Council on
Disability shall not sunset until June 30, 2007.
deleted text end

Sec. 7.

Minnesota Statutes 2006, section 256.975, subdivision 7, is amended to read:

Subd. 7.

Consumer information and assistance; senior linkage.

(a) The
Minnesota Board on Aging shall operate a statewide information and assistance service
to aid older Minnesotans and their families in making informed choices about long-term
care options and health care benefits. Language services to persons with limited English
language skills may be made available. The service, known as Senior LinkAge Line, must
be available during business hours through a statewide toll-free number and must also
be available through the Internet.

(b) The service must assist older adults, caregivers, and providers in accessing
information about choices in long-term care services that are purchased through private
providers or available through public options. The service must:

(1) develop a comprehensive database that includes detailed listings in both
consumer- and provider-oriented formats;

(2) make the database accessible on the Internet and through other telecommunication
and media-related tools;

(3) link callers to interactive long-term care screening tools and make these tools
available through the Internet by integrating the tools with the database;

(4) develop community education materials with a focus on planning for long-term
care and evaluating independent living, housing, and service options;

(5) conduct an outreach campaign to assist older adults and their caregivers in
finding information on the Internet and through other means of communication;

(6) implement a messaging system for overflow callers and respond to these callers
by the next business day;

(7) link callers with county human services and other providers to receive more
in-depth assistance and consultation related to long-term care options; deleted text begin and
deleted text end

(8) link callers with quality profiles for nursing facilities and other providers
developed by the commissioner of health deleted text begin . deleted text end new text begin ;
new text end

new text begin (9) provide information and assistance to inform older adults about reverse
mortgages, including the provisions of sections 47.58, 256B.0913, subdivision 17, and
462A.05, subdivision 42; and
new text end

new text begin (10) incorporate information about housing with services and consumer rights
within the MinnesotaHelp.info network long-term care database to facilitate consumer
comparison of services and costs among housing with services establishments and with
other in-home services and to support financial self-sufficiency as long as possible.
Housing with services establishments and their arranged home care providers shall provide
information to the commissioner of human services including delineation of charges for
housing, meals, supportive services, adapted daily living services, and health-related
services. The commissioner of human services and the commissioner of health shall
align data elements required by section 144G.06, the Uniform Consumer Information
Guide, and this section, to the extent possible. The commissioner of human services shall
provide the data to the Minnesota Board on Aging for inclusion in the MinnesotaHelp.info
network long-term care database.
new text end

(c) The Minnesota Board on Aging shall conduct an evaluation of the effectiveness
of the statewide information and assistance, and submit this evaluation to the legislature
by December 1, 2002. The evaluation must include an analysis of funding adequacy, gaps
in service delivery, continuity in information between the service and identified linkages,
and potential use of private funding to enhance the service.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2006, section 256B.0621, subdivision 11, is amended to
read:

Subd. 11.

Data use agreement; notice of relocation assistance.

The commissioner
shall deleted text begin execute a data use agreement with the Centers for Medicare and Medicaid Services
to obtain the long-term care minimum data set data to assist residents of nursing facilities
who have deleted text end new text begin establish a process with the Centers for Independent Living that allows a person
residing in a Minnesota nursing facility to receive needed information, consultation, and
assistance from one of the centers about the available community support options that may
enable the person to relocate to the community, if the person: (1) is under the age of 65,
(2) has new text end indicated a desire to live in the community deleted text begin . The commissioner shall in turn enter
into agreements with the Centers for Independent Living to provide information about
assistance for persons who want to move to the community. The commissioner shall work
with the Centers for Independent Living on both the content of the information to be
provided and privacy protections for the individual residents deleted text end new text begin , and (3) has signed a release
of information authorized by the person or the person's appointed legal representative.
The process established under this subdivision shall be coordinated with the long-term
care consultation service activities established in section 256B.0911 new text end .

Sec. 9.

Minnesota Statutes 2006, section 256B.0625, subdivision 18a, is amended to
read:

Subd. 18a.

Access to medical services.

(a) Medical assistance reimbursement for
meals for persons traveling to receive medical care may not exceed $5.50 for breakfast,
$6.50 for lunch, or $8 for dinner.

(b) Medical assistance reimbursement for lodging for persons traveling to receive
medical care may not exceed $50 per day unless prior authorized by the local agency.

(c) Medical assistance direct mileage reimbursement to the eligible person or the
eligible person's driver may not exceed 20 cents per mile.

(d) new text begin Regardless of the number of employees that an enrolled health care provider
may have, new text end medical assistance covers new text begin sign and new text end oral language interpreter services when
provided by an enrolled health care provider during the course of providing a direct,
person-to-person covered health care service to an enrolled recipient with limited English
proficiency new text begin or who has a hearing loss and uses interpreting services new text end .

Sec. 10.

Minnesota Statutes 2006, section 256B.0911, subdivision 1a, is amended to
read:

Subd. 1a.

Definitions.

For purposes of this section, the following definitions apply:

(a) "Long-term care consultation services" means:

(1) providing information and education to the general public regarding availability
of the services authorized under this section;

(2) an intake process that provides access to the services described in this section;

(3) assessment of the health, psychological, and social needs of referred individuals;

(4) assistance in identifying services needed to maintain an individual in the least
restrictive environment;

(5) providing recommendations on cost-effective community services that are
available to the individual;

(6) development of an individual's community support plan new text begin , which may include the
use of reverse mortgage payments to pay for services needed to maintain the individual in
the person's home new text end ;

(7) providing information regarding eligibility for Minnesota health care programs;

(8) preadmission screening to determine the need for a nursing facility level of care;

(9) preliminary determination of Minnesota health care programs eligibility for
individuals who need a nursing facility level of care, with appropriate referrals for final
determination;

(10) providing recommendations for nursing facility placement when there are no
cost-effective community services available; and

(11) assistance to transition people back to community settings after facility
admission.

(b) "Minnesota health care programs" means the medical assistance program under
chapter 256B and the alternative care program under section 256B.0913.

Sec. 11.

Minnesota Statutes 2006, section 256B.0911, subdivision 3a, is amended to
read:

Subd. 3a.

Assessment and support planning.

(a) Persons requesting assessment,
services planning, or other assistance intended to support community-based living must be
visited by a long-term care consultation team within ten working days after the date on
which an assessment was requested or recommended. Assessments must be conducted
according to paragraphs (b) to (g).

(b) The county may utilize a team of either the social worker or public health nurse,
or both, to conduct the assessment in a face-to-face interview. The consultation team
members must confer regarding the most appropriate care for each individual screened or
assessed.

(c) The long-term care consultation team must assess the health and social needs of
the person, using an assessment form provided by the commissioner.

(d) The team must conduct the assessment in a face-to-face interview with the
person being assessed and the person's legal representative, if applicable.

(e) The team must provide the person, or the person's legal representative, with
written recommendations for facility- or community-based services. The team must
document that the most cost-effective alternatives available were offered to the individual.
For purposes of this requirement, "cost-effective alternatives" means community services
and living arrangements that cost the same as or less than nursing facility care.

(f) If the person chooses to use community-based services, the team must provide
the person or the person's legal representative with a written community support plan,
regardless of whether the individual is eligible for Minnesota health care programs.
The person may request assistance in developing a community support plan without
participating in a complete assessment. new text begin If the person chooses to obtain a reverse mortgage
under section 47.58 as part of the community support plan, the plan must include a
spending plan for the reverse mortgage payments.
new text end

(g) The team must give the person receiving assessment or support planning, or
the person's legal representative, materials supplied by the commissioner containing
the following information:

(1) the purpose of preadmission screening and assessment;

(2) information about Minnesota health care programs new text begin and about reverse mortgages,
including the provisions of sections 47.58; 256B.0913, subdivision 17; and 462A.05,
subdivision 42 new text end ;

(3) the person's freedom to accept or reject the recommendations of the team;

(4) the person's right to confidentiality under the Minnesota Government Data
Practices Act, chapter 13; and

(5) the person's right to appeal the decision regarding the need for nursing facility
level of care or the county's final decisions regarding public programs eligibility according
to section 256.045, subdivision 3.

Sec. 12.

Minnesota Statutes 2006, section 256B.0911, subdivision 3b, is amended to
read:

Subd. 3b.

Transition assistance.

(a) A long-term care consultation team shall
provide assistance to persons residing in a nursing facility, hospital, regional treatment
center, or intermediate care facility for persons with developmental disabilities who
request or are referred for assistance. Transition assistance must include assessment,
community support plan development, referrals to Minnesota health care programs,
and referrals to programs that provide assistance with housing. new text begin Transition assistance
must also include information about the Centers for Independent Living and about other
organizations that can provide assistance with relocation efforts, and information about
contacting these organizations to obtain their assistance and support.
new text end

(b) The county shall develop transition processes with institutional social workers
and discharge planners to ensure that:

(1) persons admitted to facilities receive information about transition assistance
that is available;

(2) the assessment is completed for persons within ten working days of the date of
request or recommendation for assessment; and

(3) there is a plan for transition and follow-up for the individual's return to the
community. The plan must require notification of other local agencies when a person
who may require assistance is screened by one county for admission to a facility located
in another county.

(c) If a person who is eligible for a Minnesota health care program is admitted to a
nursing facility, the nursing facility must include a consultation team member or the case
manager in the discharge planning process.

Sec. 13.

Minnesota Statutes 2006, section 256B.0911, is amended by adding a
subdivision to read:

new text begin Subd. 3c. new text end

new text begin Transition to housing with services. new text end

new text begin (a) Transitional consultation is
required of all prospective residents 65 years of age or older regardless of income, assets,
or funding sources before housing with services establishments offering or providing
assisted living execute a lease or contract with the prospective resident. The purpose of
transitional long-term care consultation is to support persons with current or anticipated
long-term care needs in making informed choices among options that include the most
cost-effective and least restrictive settings, and to delay spenddown to eligibility for
publicly funded programs by connecting people to alternative services in their homes
before transition to housing with services.
new text end

new text begin (b) Transitional consultation services are provided as determined by the
commissioner of human services in partnership with county long-term care consultation
units, and the Area Agencies on Aging, and are a combination of telephone-based and
in-person assistance provided under models developed by the commissioner. Transitional
consultation must be provided within five working days of the request of the prospective
resident as follows:
new text end

new text begin (1) the consultation must be provided by a qualified professional as determined by
the commissioner;
new text end

new text begin (2) the consultation must include a review of the prospective resident's reasons for
considering assisted living, the prospective resident's personal goals, a discussion of the
prospective resident's immediate and projected long-term care needs, and alternative
community services or assisted living settings that may meet the prospective resident's
needs; and
new text end

new text begin (3) the prospective resident shall be informed of the availability of long-term care
consultation services described in subdivision 3a that are available at no charge to the
prospective resident to assist the prospective resident in assessment and planning to meet
the prospective resident's long-term care needs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2008.
new text end

Sec. 14.

Minnesota Statutes 2006, section 256B.0913, is amended by adding a
subdivision to read:

new text begin Subd. 17. new text end

new text begin Services for persons using reverse mortgages. new text end

new text begin (a) Alternative care
services are available to a person if:
new text end

new text begin (1) the person qualifies for the reverse mortgage incentive program under section
462A.05, subdivision 42, and has received the final payment on a qualifying reverse
mortgage, or the person satisfies the criteria in section 462A.05, subdivision 42, paragraph
(b), clauses (1) to (5), and has otherwise obtained a reverse mortgage and payments from
the reverse mortgage for a period of at least 24 months or in an amount of at least $15,000
are used for services and supports, including basic shelter needs, home maintenance, and
modifications or adaptations, necessary to allow the person to remain in the home as an
alternative to a nursing facility placement; and
new text end

new text begin (2) the person satisfies the eligibility criteria under this section, other than age,
income, and assets, and verifies that reverse mortgage expenditures were made according
to the spending plan established under section 256B.0911, if one has been established.
new text end

new text begin (b) In addition to the other services provided under this section, a person who
qualifies under this subdivision shall not be assessed a monthly participation fee under
subdivision 12 nor be subject to an estate claim under section 256B.15 for services
received under this section.
new text end

new text begin (c) The commissioner shall require a certification of loan satisfaction or other
documentation that the person qualifies under this subdivision.
new text end

Sec. 15.

Minnesota Statutes 2006, section 256B.0915, is amended by adding a
subdivision to read:

new text begin Subd. 3h. new text end

new text begin Service rate limits; 24-hour customized living services. new text end

new text begin The payment
rates for 24-hour customized living services is a monthly rate negotiated and authorized by
the lead agency within the parameters established by the commissioner of human services.
The payment agreement must delineate the services that have been customized for each
recipient and specify the amount of each service to be provided. The lead agency shall
ensure that there is a documented need for all services authorized. The lead agency shall
not authorize 24-hour customized living services unless there is a documented need for
24-hour supervision. For purposes of this section, "24-hour supervision" means that the
recipient requires assistance due to needs related to one or more of the following:
new text end

new text begin (1) intermittent assistance with toileting or transferring;
new text end

new text begin (2) cognitive or behavioral issues;
new text end

new text begin (3) a medical condition that requires clinical monitoring; or
new text end

new text begin (4) other conditions or needs as defined by the commissioner of human services.
The lead agency shall ensure that the frequency and mode of supervision of the recipient
and the qualifications of staff providing supervision are described and meet the needs
of the recipient. Customized living services must not include rent or raw food costs.
The negotiated payment rate for 24-hour customized living services must be based on
services to be provided. Negotiated rates must not exceed payment rates for comparable
elderly waiver or medical assistance services and must reflect economies of scale. The
individually negotiated 24-hour customized living payments, in combination with the
payment for other elderly waiver services, including case management, must not exceed
the recipient's community budget cap specified in subdivision 3a.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2006, section 256B.15, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Recovery of alternative care and certain reverse mortgages. new text end

new text begin The state
and a county agency shall not recover alternative care paid for a person under section
256B.0913, subdivision 17, under this section.
new text end

Sec. 17.

Minnesota Statutes 2006, section 256B.431, subdivision 2e, is amended to
read:

Subd. 2e.

Contracts for services for ventilator-dependent persons.

new text begin (a)
new text end The commissioner may negotiate with a nursing facility eligible to receive medical
assistance payments to provide services to a ventilator-dependent person identified by the
commissioner according to criteria developed by the commissioner, including:

(1) nursing facility care has been recommended for the person by a preadmission
screening team;

(2) the person has been hospitalized and no longer requires inpatient acute care
hospital services; and

(3) the commissioner has determined that necessary services for the person cannot
be provided under existing nursing facility rates.

new text begin (b) new text end The commissioner may negotiate an adjustment to the operating cost payment
rate for a nursing facility with a resident who is ventilator-dependent, for that resident.
The negotiated adjustment must reflect only the actual additional cost of meeting the
specialized care needs of a ventilator-dependent person identified by the commissioner
for whom necessary services cannot be provided under existing nursing facility rates and
which are not otherwise covered under Minnesota Rules, parts 9549.0010 to 9549.0080 or
9505.0170 to 9505.0475. For persons who are initially admitted to a nursing facility before
July 1, 2001, and have their payment rate under this subdivision negotiated after July 1,
2001, the negotiated payment rate must not exceed 200 percent of the highest multiple
bedroom payment rate for the facility, as initially established by the commissioner for the
rate year for case mix classification K; or, upon implementation of the RUG's-based case
mix system, 200 percent of the highest RUG's rate. For persons initially admitted to a
nursing facility on or after July 1, 2001, the negotiated payment rate must not exceed 300
percent of the facility's multiple bedroom payment rate for case mix classification K; or,
upon implementation of the RUG's-based case mix system, 300 percent of the highest
RUG's rate. The negotiated adjustment shall not affect the payment rate charged to private
paying residents under the provisions of section 256B.48, subdivision 1.

new text begin (c) Effective July 1, 2007, the operating payment rate for residents determined
eligible under paragraph (a) in a unit of at least ten beds dedicated to the care of
ventilator-dependent persons in partnership with Mayo Health Systems at a nursing
facility in Waseca County that was licensed for 70 beds on February 7, 2007, or in a unit
of at least four beds dedicated to the care of ventilator-dependent persons at a nursing
facility in Blue Earth County that was licensed for 100 beds on February 7, 2007, and
reimbursed under this section or section 256B.434, or section 256B.441, shall be 300
percent of the facility's highest RUG's rate. The rate in this paragraph shall take effect
upon the opening of the unit.
new text end

Sec. 18.

Minnesota Statutes 2006, section 256B.431, subdivision 41, is amended to
read:

Subd. 41.

Rate increases for October 1, 2005, and October 1, 2006.

(a) For the
rate period beginning October 1, 2005, the commissioner shall make available to each
nursing facility reimbursed under this section or section 256B.434 an adjustment equal to
2.2553 percent of the total operating payment rate, and for the rate year beginning October
1, 2006, the commissioner shall make available to each nursing facility reimbursed
under this section or section 256B.434 an adjustment equal to 1.2553 percent of the total
operating payment rate.

(b) 75 percent of the money resulting from the rate adjustment under paragraph (a)
must be used to increase wages and benefits and pay associated costs for all employees,
except management fees, the administrator, and central office staff. Except as provided
in paragraph (c), 75 percent of the money received by a facility as a result of the rate
adjustment provided in paragraph (a) must be used only for wage, benefit, and staff
increases implemented on or after the effective date of the rate increase each year, and
must not be used for increases implemented prior to that date.

(c) With respect only to the October 1, 2005, rate increase, a nursing facility that
incurred costs for salary and employee benefit increases first provided after July 1, 2003,
may count those costs towards the amount required to be spent on salaries and benefits
under paragraph (b). These costs must be reported to the commissioner in the form and
manner specified by the commissioner.

(d) Nursing facilities may apply for the portion of the rate adjustment under
paragraph (a) for employee wages and benefits and associated costs. The application
must be made to the commissioner and contain a plan by which the nursing facility
will distribute the funds according to paragraph (b). For nursing facilities in which the
employees are represented by an exclusive bargaining representative, an agreement
negotiated and agreed to by the employer and the exclusive bargaining representative
constitutes the plan. A negotiated agreement may constitute the plan only if the agreement
is finalized after the date of enactment of all increases for the rate year and signed by both
parties prior to submission to the commissioner. The commissioner shall review the
plan to ensure that the rate adjustments are used as provided in paragraph (b). To be
eligible, a facility must submit its distribution plan by March 31, 2006, and March 31,
2007, respectively. The commissioner may approve distribution plans on or before June
30, 2006, and June 30, 2007, respectively. new text begin The commissioner may waive the deadlines in
this paragraph under extraordinary circumstances, either retroactively or prospectively, to
be determined at the sole discretion of the commissioner. new text end If a facility's distribution plan is
effective after the first day of the applicable rate period that the funds are available, the
rate adjustments are effective the same date as the facility's plan.

(e) A copy of the approved distribution plan must be made available to all employees
by giving each employee a copy or by posting a copy in an area of the nursing facility
to which all employees have access. If an employee does not receive the wage and
benefit adjustment described in the facility's approved plan and is unable to resolve the
problem with the facility's management or through the employee's union representative,
the employee may contact the commissioner at an address or telephone number provided
by the commissioner and included in the approved plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon enactment and is retroactive
from October 1, 2005.
new text end

Sec. 19.

Minnesota Statutes 2006, section 256B.434, is amended by adding a
subdivision to read:

new text begin Subd. 19. new text end

new text begin Nursing facility rate increases beginning October 1, 2007. new text end

new text begin (a) For the
rate year beginning October 1, 2007, the commissioner shall make available to each
nursing facility reimbursed under this section operating payment rate adjustments equal
to 2.70 percent of the operating payment rates in effect on September 30, 2007. This
subdivision shall not apply to a facility reimbursed under section 256B.431, subdivision
43.
new text end

new text begin (b) Seventy-five percent of the money resulting from the rate adjustment under
paragraph (a) must be used for increases in compensation-related costs for employees
directly employed by the nursing facility on or after the effective date of the rate
adjustment, except:
new text end

new text begin (1) the administrator;
new text end

new text begin (2) persons employed in the central office of a corporation that has an ownership
interest in the nursing facility or exercises control over the nursing facility; and
new text end

new text begin (3) persons paid by the nursing facility under a management contract.
new text end

new text begin (c) Sixty-seven percent of the money available under paragraph (b) must be used for
wage increases for all employees directly employed by the nursing facility on or after the
effective date of the rate adjustment, except those listed in paragraph (b), clauses (1) to
(3). The wage adjustment that employees receive under this paragraph must be paid as an
equal hourly wage increase for all eligible employees. This paragraph shall not apply to:
new text end

new text begin (1) employees eligible for a Taft-Hartley insurance plan established under United
States Code, title 29, section 186(c)(5); or
new text end

new text begin (2) public employees.
new text end

new text begin (d) The commissioner shall allow as compensation-related costs all costs for:
new text end

new text begin (1) wages and salaries;
new text end

new text begin (2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers'
compensation;
new text end

new text begin (3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, and pensions; and
new text end

new text begin (4) other benefits provided, subject to the approval of the commissioner.
new text end

new text begin (e) The portion of the rate adjustment under paragraph (a) that is not subject to the
requirements in paragraphs (b) and (c) shall be provided to nursing facilities effective
October 1, 2007.
new text end

new text begin (f) Nursing facilities may apply for the portion of the rate adjustment under
paragraph (a) that is subject to the requirements in paragraphs (b) and (c). The application
must be submitted to the commissioner within six months of the effective date of the
rate adjustment, and the nursing facility must provide additional information required
by the commissioner within nine months of the effective date of the rate adjustment.
The commissioner must respond to all applications within three weeks of receipt.
The commissioner may waive the deadlines in this paragraph under extraordinary
circumstances, to be determined at the sole discretion of the commissioner. The
application must contain:
new text end

new text begin (1) an estimate of the amounts of money that must be used as specified in paragraphs
(b) and (c);
new text end

new text begin (2) a detailed distribution plan specifying the allowable compensation-related and
wage increases the nursing facility will implement to use the funds available in clause (1);
new text end

new text begin (3) a description of how the nursing facility will notify eligible employees of
the contents of the approved application, which must provide for giving each eligible
employee a copy of the approved application, excluding the information required in clause
(1), or posting a copy of the approved application, excluding the information required in
clause (1), for a period of at least six weeks in an area of the nursing facility to which all
eligible employees have access; and
new text end

new text begin (4) instructions for employees who believe they have not received the
compensation-related or wage increases specified in clause (2), as approved by the
commissioner, and which must include a mailing address, e-mail address, and the
telephone number that may be used by the employee to contact the commissioner or the
commissioner's representative.
new text end

new text begin (g) The commissioner shall ensure that cost increases in distribution plans under
paragraph (f), clause (2), that may be included in approved applications, comply with the
following requirements:
new text end

new text begin (1) costs to be incurred during the applicable rate year resulting from wage and
salary increases implemented prior to the first day of the nursing facility's payroll period
that includes October 1, 2007, shall be allowed if they were not used in a prior year's
application;
new text end

new text begin (2) a portion of the costs resulting from tenure-related wage or salary increases
may be considered to be allowable wage increases, according to formulas that the
commissioner shall provide, where employee retention is above the average statewide
rate of retention of direct care employees;
new text end

new text begin (3) the annualized amount of increases in costs for the employer's share of health
and dental insurance, life insurance, disability insurance, and workers' compensation
shall be allowable compensation-related increases if they are effective on or after April
1, 2007, and prior to April 1, 2008; and
new text end

new text begin (4) for nursing facilities in which employees are represented by an exclusive
bargaining representative, the commissioner shall approve the application only upon
receipt of a letter of acceptance of the distribution plan, in regard to members of the
bargaining unit, signed by the exclusive bargaining agent and dated after enactment of
this subdivision. Upon receipt of the letter of acceptance, the commissioner shall deem
all requirements of this section as having been met in regard to the members of the
bargaining unit.
new text end

new text begin (h) The commissioner shall review applications received under paragraph (f) and
shall provide the portion of the rate adjustment under paragraphs (b) and (c) if the
requirements of this subdivision have been met. The rate adjustment shall be effective
October 1 of each year. Notwithstanding paragraph (a), if the approved application
distributes less money than is available, the amount of the rate adjustment shall be reduced
so that the amount of money made available is equal to the amount to be distributed.
new text end

Sec. 20.

Minnesota Statutes 2006, section 256B.437, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Big Stone County rate adjustment. new text end

new text begin Notwithstanding the requirements
of this section, the commissioner may approve a planned closure rate adjustment in Big
Stone County for an eight-bed facility in Clinton for reassignment to a 50-bed facility in
Graceville. The adjustment shall be calculated according to subdivisions 3 and 6.
new text end

Sec. 21.

Minnesota Statutes 2006, section 256B.441, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Rate determination deleted text end new text begin Rebasing of nursing facility operating cost
payment rates new text end .

(a) deleted text begin The commissioner shall establish a value-based nursing facility
reimbursement system which will provide facility-specific, prospective rates for nursing
facilities participating in the medical assistance program. The rates shall be determined
using an annual statistical and cost report filed by each nursing facility. The total payment
rate shall be composed of four rate components: direct care services, support services,
external fixed, and property-related rate components. The payment rate shall be derived
from statistical measures of actual costs incurred in facility operation of nursing facilities.
From this cost basis, the components of the total payment rate shall be adjusted for quality
of services provided, recognition of staffing levels, geographic variation in labor costs, and
resident acuity. deleted text end new text begin The commissioner shall rebase nursing facility operating cost payment
rates to align payments to facilities with the cost of providing care. The rebased operating
cost payment rates shall be calculated using the statistical and cost report filed by each
nursing facility for the report period ending one year prior to the rate year.
new text end

(b) deleted text begin Rates shall be rebased annually. deleted text end new text begin The new operating cost payment rates based on
this section shall take effect beginning with the rate year beginning October 1, 2008, and
shall be phased in over four rate years through October 1, 2011.
new text end

new text begin (c) Operating cost payment rates shall be rebased on October 1, 2012, and every
two years after that date. new text end

new text begin (d) new text end Each cost reporting year shall begin on October 1 and end on the following
September 30. Beginning in 2006, a statistical and cost report shall be filed by each
nursing facility by January 15. Notice of rates shall be distributed by August 15 and the
rates shall go into effect on October 1 for one year.

deleted text begin (c) The commissioner shall begin to phase in the new reimbursement system
beginning October 1, 2007. Full phase-in shall be completed by October 1, 2011.
deleted text end

Sec. 22.

Minnesota Statutes 2006, section 256B.441, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section, the terms in subdivisions 3 to
deleted text begin 42 deleted text end new text begin 42a new text end have the meanings given unless otherwise provided for in this section.

Sec. 23.

Minnesota Statutes 2006, section 256B.441, subdivision 5, is amended to read:

Subd. 5.

Administrative costs.

"Administrative costs" means the direct costs for
administering the overall activities of the nursing home. These costs include salaries and
wages of the administrator, assistant administrator, business office employees, security
guards, and associated fringe benefits and payroll taxes, fees, contracts, or purchases
related to business office functions, licenses, and permits except as provided in the
external fixed costs category, employee recognition, travel including meals and lodging,
training, voice and data communication or transmission, office supplies, liability insurance
and other forms of insurance not designated to other areas, personnel recruitment, legal
services, accounting services, management or business consultants, data processing,
new text begin information technology, Web site, new text end central or home office costs, business meetings and
seminars, postage, fees for professional organizations, subscriptions, security services,
advertising, board of director's fees, working capital interest expense, and bad debts and
bad debt collection fees.

Sec. 24.

Minnesota Statutes 2006, section 256B.441, subdivision 6, is amended to read:

Subd. 6.

Allowed costs.

"Allowed costs" means the amounts reported by the facility
which are necessary for the operation of the facility and the care of residents and which
are reviewed by the department for accuracy deleted text begin , reasonableness, deleted text end and compliance with this
section and generally accepted accounting principles. new text begin All references to costs in this section
shall be assumed to refer to allowed costs.
new text end

Sec. 25.

Minnesota Statutes 2006, section 256B.441, subdivision 10, is amended to
read:

Subd. 10.

Dietary costs.

"Dietary costs" means the costs for the salaries and wages
of the dietary supervisor, dietitians, chefs, cooks, dishwashers, and other employees
assigned to the kitchen and dining room, and associated fringe benefits and payroll
taxes. Dietary costs also includes the salaries or fees of dietary consultants, deleted text begin direct costs
of raw food (both normal and special diet food), deleted text end dietary supplies, and food preparation
and serving. deleted text begin Also included are special dietary supplements used for tube feeding or oral
feeding, such as elemental high nitrogen diet, even if written as a prescription item by a
physician.
deleted text end

Sec. 26.

Minnesota Statutes 2006, section 256B.441, subdivision 11, is amended to
read:

Subd. 11.

Direct care costs deleted text begin category deleted text end .

deleted text begin "Direct care costs category" deleted text end new text begin "Direct care
costs" new text end means costs for deleted text begin nursing services, activities, and social services deleted text end new text begin the wages of nursing
administration, staff education, direct care registered nurses, licensed practical nurses,
certified nursing assistants, trained medication aides, and associated fringe benefits and
payroll taxes; services from a supplemental nursing services agency; supplies that are
stocked at nursing stations or on the floor and distributed or used individually, including,
but not limited to: alcohol, applicators, cotton balls, incontinence pads, disposable ice
bags, dressings, bandages, water pitchers, tongue depressors, disposable gloves, enemas,
enema equipment, soap, medication cups, diapers, plastic waste bags, sanitary products,
thermometers, hypodermic needles and syringes, clinical reagents or similar diagnostic
agents, drugs that are not paid on a separate fee schedule by the medical assistance
program or any other payer, and technology related to the provision of nursing care to
residents, such as electronic charting systems new text end .

Sec. 27.

Minnesota Statutes 2006, section 256B.441, subdivision 13, is amended to
read:

Subd. 13.

External fixed costs deleted text begin category deleted text end .

deleted text begin "External fixed costs category" deleted text end new text begin "External
fixed costs" new text end means costs related to the nursing home surcharge under section 256.9657,
subdivision 1; licensure fees under section 144.122; long-term care consultation fees
under section 256B.0911, subdivision 6; family advisory council fee under section
144A.33; scholarships under section 256B.431, subdivision 36; planned closure rate
adjustments under section new text begin 256B.436 or new text end 256B.437; new text begin or single-bed room incentives under
section 256B.431, subdivision 42; new text end property taxes and property insurance; and PERA.

Sec. 28.

Minnesota Statutes 2006, section 256B.441, subdivision 14, is amended to
read:

Subd. 14.

Facility average case mix index.

"Facility average case mix index" or
"CMI" means a numerical value score that describes the relative resource use for all
residents within the groups under the resource utilization group (RUG-III) classification
system prescribed by the commissioner based on an assessment of each resident. The
facility average CMI shall be computed as the standardized days divided by total days for
all residents in the facility. new text begin The RUG's weights used in this section shall be as follows
for each RUG's class: SE3 1.605; SE2 1.247; SE1 1.081; RAD 1.509; RAC 1.259; RAB
1.109; RAA 0.957; SSC 1.453; SSB 1.254; SSA 1.047; CC2 1.292; CC1 1.200; CB2
1.086; CB1 1.017; CA2 0.908; CA1 0.834; IB2 0.877; IB1 0.817; IA2 0.720; IA1 0.676;
BB2 0.956; BB1 0.885; BA2 0.716; BA1 0.673; PE2 1.199; PE1 1.104; PD2 1.023;
PD1 0.948; PC2 0.926; PC1 0.860; PB2 0.786; PB1 0.734; PA2 0.691; PA1 0.651; BC1
0.651; and DDF 1.000.
new text end

Sec. 29.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 14a. new text end

new text begin Facility type groups. new text end

new text begin Facilities shall be classified into two groups,
called "facility type groups," which shall consist of:
new text end

new text begin (1) C&NC/R80: facilities that are hospital-attached, or are licensed under Minnesota
Rules, parts 9570.2000 to 9570.3400; and
new text end

new text begin (2) freestanding: all other facilities.
new text end

Sec. 30.

Minnesota Statutes 2006, section 256B.441, subdivision 17, is amended to
read:

Subd. 17.

Fringe benefit costs.

"Fringe benefit costs" means the costs for group
life, health, dental, workers' compensation, and other employee insurances and pension,
profit-sharing, and retirement plans for which the employer pays all or a portion of the
costs deleted text begin and that are available to at least all employees who work at least 20 hours per week deleted text end .

Sec. 31.

Minnesota Statutes 2006, section 256B.441, subdivision 20, is amended to
read:

Subd. 20.

Housekeeping costs.

"Housekeeping costs" means the costs for the
salaries and wages of the housekeeping supervisor, housekeepers, and other cleaning
employees and associated fringe benefits and payroll taxes. It also includes the cost of
housekeeping supplies, including new text begin , but not limited to, new text end cleaning and lavatory supplies and
contract services.

Sec. 32.

Minnesota Statutes 2006, section 256B.441, subdivision 24, is amended to
read:

Subd. 24.

Maintenance and plant operations costs.

"Maintenance and plant
operations costs" means the costs for the salaries and wages of the maintenance supervisor,
engineers, heating-plant employees, and other maintenance employees and associated
fringe benefits and payroll taxes. It also includes direct costs for maintenance and
operation of the building and grounds, including new text begin , but not limited to, new text end fuel, electricity,
medical waste and garbage removal, water, sewer, supplies, tools, and repairs.

Sec. 33.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 28a. new text end

new text begin Other direct care costs. new text end

new text begin "Other direct care costs" means the costs
for the salaries and wages and associated fringe benefits and payroll taxes of mental
health workers, religious personnel, and other direct care employees not specified in
the definition of direct care costs.
new text end

Sec. 34.

Minnesota Statutes 2006, section 256B.441, subdivision 30, is amended to
read:

Subd. 30.

Peer groups.

Facilities shall be classified into three groups deleted text begin , called "peer
groups," which deleted text end new text begin by county. The groups new text end shall consist of:

(1) deleted text begin C&NC/Short Stay/R80 - facilities that have three or more admissions per bed
per year, are hospital-attached, or are licensed under Minnesota Rules, parts 9570.2000
to 9570.3600 deleted text end new text begin group one: facilities in Anoka, Benton, Carlton, Carver, Chisago, Dakota,
Dodge, Goodhue, Hennepin, Isanti, Mille Lacs, Morrison, Olmsted, Ramsey, Rice, Scott,
Sherburne, St. Louis, Stearns, Steele, Wabasha, Washington, Winona, or Wright County new text end ;

(2) deleted text begin boarding care homes - facilities that have more than 50 percent of their beds
licensed as boarding care homes deleted text end new text begin group two: facilities in Aitkin, Beltrami, Blue Earth,
Brown, Cass, Clay, Cook, Crow Wing, Faribault, Fillmore, Freeborn, Houston, Hubbard,
Itasca, Kanabec, Koochiching, Lake, Lake of the Woods, Le Sueur, Martin, McLeod,
Meeker, Mower, Nicollet, Norman, Pine, Roseau, Sibley, Todd, Wadena, Waseca,
Watonwan, or Wilkin County new text end ; and

(3) deleted text begin standard - all other facilities deleted text end new text begin group three: facilities in all other counties new text end .

Sec. 35.

Minnesota Statutes 2006, section 256B.441, subdivision 31, is amended to
read:

Subd. 31.

Prior deleted text begin rate-setting method deleted text end new text begin system operating cost payment rate new text end .

deleted text begin "Prior
rate-setting method" deleted text end new text begin "Prior system operating cost payment rate" new text end means the new text begin operating cost
payment new text end rate deleted text begin determination process deleted text end in effect deleted text begin prior to October 1, 2006 deleted text end new text begin on September 30,
2008 new text end , under Minnesota Rules and Minnesota Statutes new text begin , not including planned closure rate
adjustments under section 256B.436 or 256B.437, or single bed room incentives under
section 256B.431, subdivision 42 new text end .

Sec. 36.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 33a. new text end

new text begin Raw food costs. new text end

new text begin "Raw food costs" means the cost of food provided to
nursing facility residents. Also included are special dietary supplements used for tube
feeding or oral feeding, such as elemental high nitrogen diet.
new text end

Sec. 37.

Minnesota Statutes 2006, section 256B.441, subdivision 34, is amended to
read:

Subd. 34.

Related organization.

"Related organization" means a person that
furnishes goods or services to a nursing facility and that is a close relative of a nursing
facility, an affiliate of a nursing facility, a close relative of an affiliate of a nursing facility,
or an affiliate of a close relative of an affiliate of a nursing facility. As used in this
subdivision, paragraphs (a) to (d) apply:

(a) "Affiliate" means a person that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with another
person.

(b) "Person" means an individual, a corporation, a partnership, an association, a
trust, an unincorporated organization, or a government or political subdivision.

(c) "Close relative of an affiliate of a nursing facility" means an individual whose
relationship by blood, marriage, or adoption to an individual who is an affiliate of a
nursing facility is no more remote than first cousin.

(d) "Control" including the terms "controlling," "controlled by," and "under common
control with" means the possession, direct or indirect, of the power to direct or cause the
direction of the management, operations, or policies of a person, whether through the
ownership of voting securities, by contract, or otherwise deleted text begin , or to influence in any manner
other than through an arms length, legal transaction deleted text end .

Sec. 38.

Minnesota Statutes 2006, section 256B.441, subdivision 38, is amended to
read:

Subd. 38.

Social services costs.

"Social services costs" means the costs for the
salaries and wages of the supervisor and other social work employees, associated fringe
benefits and payroll taxes, supplies, services, and consultants. new text begin This category includes the
cost of those employees who manage and process admission to the nursing facility.
new text end

Sec. 39.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 42a. new text end

new text begin Therapy costs. new text end

new text begin "Therapy costs" means any costs related to medical
assistance therapy services provided to residents that are not billed separately from the
daily operating rate.
new text end

Sec. 40.

Minnesota Statutes 2006, section 256B.441, subdivision 46, is amended to
read:

Subd. 46.

Calculation of quality add-on.

The payment rate for the quality add-on
shall be a variable amount based on each facility's quality score.

(a) For the rate year beginning October 1, 2006, the maximum quality add-on percent
shall be 2.4 percent and this add-on shall not be subject to a phase-in. The determination
of the quality score to be used in calculating the quality add-on for October 1, 2006,
shall be based on a report which must be filed with the commissioner, according to the
requirements in subdivision 43, for a six-month period ending January 31, 2006. This
report shall be filed with the commissioner by February 28, 2006. The commissioner shall
prorate the six months of data to a full year. When new quality measures are incorporated
into the quality score methodology and when existing quality measures are updated or
improved, the commissioner may increase the maximum quality add-on percent.

(b) For each facility, determine the operating payment rate.

(c) For each facility determine a ratio of the quality score of the facility determined
in subdivision 44, less 40 and then divided by 60. If this value is less than zero, use
the value zero.

(d) For each facility, the quality add-on shall be the value determined in paragraph
(b) times the value determined in paragraph (c) times the maximum quality add-on percent.

new text begin (e) For rate years beginning on or after October 1, 2009, the maximum quality
add-on percent shall be four percent. The commissioner shall determine the quality add-on
using the methodology described in paragraphs (b) to (d).
new text end

Sec. 41.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 46a. new text end

new text begin Calculation of quality add-on for October 1, 2007. new text end

new text begin (a) The payment
rate for the rate year beginning October 1, 2007, for the quality add-on, is a variable
amount based on each facility's quality score. For the rate year, the maximum quality
add-on is .3 percent of the operating payment rate in effect on September 30, 2007. The
commissioner shall determine the quality add-on for each facility according to paragraphs
(b) to (d).
new text end

new text begin (b) For each facility, the commissioner shall determine the operating payment rate
in effect on September 30, 2007.
new text end

new text begin (c) For each facility, the commissioner shall determine a ratio of the quality score of
the facility determined in subdivision 44, subtract 40, and then divide by 60. If this value
is less than zero, the commissioner shall use the value zero.
new text end

new text begin (d) For each facility, the quality add-on is the value determined in paragraph (b),
multiplied by the value determined in paragraph (c), multiplied by .3 percent.
new text end

Sec. 42.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 48. new text end

new text begin Calculation of operating per diems. new text end

new text begin The direct care per diem for
each facility shall be the facility's direct care costs divided by its standardized days.
The other care-related per diem shall be the sum of the facility's activities costs, other
direct care costs, raw food costs, therapy costs, and social services costs, divided by the
facility's resident days. The other operating per diem shall be the sum of the facility's
administrative costs, dietary costs, housekeeping costs, laundry costs, and maintenance
and plant operations costs divided by the facility's resident days.
new text end

Sec. 43.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 49. new text end

new text begin Determination of total care-related per diem. new text end

new text begin The total care-related
per diem for each facility shall be the sum of the direct care per diem and the other
care-related per diem.
new text end

Sec. 44.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 50. new text end

new text begin Determination of total care-related limit. new text end

new text begin The limit on the total
care-related per diem shall be determined for each peer group and facility type group
combination. A facility's total care-related per diems shall be limited to 120 percent of the
median for the facility's peer and facility type group. The facility-specific direct care costs
used in making this comparison and in the calculation of the median shall be based on a
RUG's weight of 1.00. A facility that is above that limit shall have its total care-related per
diem reduced to the limit. If a reduction of the total care-related per diem is necessary
because of this limit, the reduction shall be made proportionally to both the direct care per
diem and the other care-related per diem.
new text end

Sec. 45.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 51. new text end

new text begin Determination of other operating limit. new text end

new text begin The limit on the other operating
per diem shall be determined for each peer group. A facility's other operating per diem
shall be limited to 105 percent of the median for its peer group. A facility that is above
that limit shall have its other operating per diem reduced to the limit.
new text end

Sec. 46.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 52. new text end

new text begin Determination of efficiency incentive. new text end

new text begin Each facility shall be eligible
for an efficiency incentive based on its other operating per diem. A facility with an other
operating per diem that exceeds the limit in subdivision 51 shall receive no efficiency
incentive. All other facilities shall receive an incentive calculated as 50 percent times the
difference between the facility's other operating per diem and its other operating per diem
limit, up to a maximum incentive of $3.
new text end

Sec. 47.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 53. new text end

new text begin Calculation of payment rate for external fixed costs. new text end

new text begin The commissioner
shall calculate a payment rate for external fixed costs.
new text end

new text begin (a) For a facility licensed as a nursing home, the portion related to section 256.9657
shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care
home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the
result of its number of nursing home beds divided by its total number of licensed beds.
new text end

new text begin (b) The portion related to the licensure fee under section 144.122, paragraph (d),
shall be the amount of the fee divided by actual resident days.
new text end

new text begin (c) The portion related to scholarships shall be determined under section 256B.431,
subdivision 36.
new text end

new text begin (d) The portion related to long-term care consultation shall be determined according
to section 256B.0911, subdivision 6.
new text end

new text begin (e) The portion related to development and education of resident and family advisory
councils under section 144A.33 shall be $5 divided by 365.
new text end

new text begin (f) The portion related to planned closure rate adjustments shall be as determined
under sections 256B.436 and 256B.437, subdivision 6.
new text end

new text begin (g) The portions related to property insurance, real estate taxes, special assessments,
and payments made in lieu of real estate taxes directly identified or allocated to the nursing
facility shall be the actual amounts divided by actual resident days.
new text end

new text begin (h) The portion related to the Public Employees Retirement Association shall be
actual costs divided by resident days.
new text end

new text begin (i) The single bed room incentives shall be as determined under section 256B.431,
subdivision 42.
new text end

new text begin (j) The payment rate for external fixed costs shall be the sum of the amounts in
paragraphs (a) to (i).
new text end

Sec. 48.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 54. new text end

new text begin Determination of total payment rates. new text end

new text begin In rate years when rates are
rebased, the total payment rate for a RUG's weight of 1.00 shall be the sum of the total
care-related payment rate, other operating payment rate, efficiency incentive, external
fixed cost rate, and the property rate determined under section 256B.434. To determine
a total payment rate for each RUG's level, the total care-related payment rate shall be
divided into the direct care payment rate and the other care-related payment rate, and the
direct care payment rate multiplied by the RUG's weight for each RUG's level using the
weights in subdivision 14.
new text end

Sec. 49.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 55. new text end

new text begin Phase-in of rebased operating cost payment rates. new text end

new text begin For the rate years
beginning October 1, 2008, October 1, 2009, October 1, 2010, and October 1, 2011, the
operating cost payment rate calculated under this section shall be phased in by blending
the operating cost rate with the operating cost payment rate determined under section
256B.434. For the rate year beginning October 1, 2008, the operating cost payment rate
for each facility shall be 23.5 percent of the operating cost payment rate from this section,
and 76.5 percent of the operating cost payment rate from section 256B.434. For the rate
year beginning October 1, 2009, the operating cost payment rate for each facility shall
be 61.9 percent of the operating cost payment rate from this section, and 38.1 percent
of the operating cost payment rate from section 256B.434. For the rate year beginning
October 1, 2010, the operating cost payment rate for each facility shall be 80 percent of
the operating cost payment rate from this section, and 20 percent of the operating cost
payment rate from section 256B.434. For the rate year beginning October 1, 2011, the
operating cost payment rate for each facility shall be the operating cost payment rate
determined under this section. The blending of operating cost payment rates under this
section shall be performed separately for each RUG's class.
new text end

Sec. 50.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 56. new text end

new text begin Hold harmless. new text end

new text begin For the rate years beginning October 1, 2008, October 1,
2009, October 1, 2010, and October 1, 2011, no nursing facility shall receive an operating
cost payment rate less than the nursing facility's operating cost payment rate under section
256B.434. The comparison of operating cost payment rates under this section shall be
made for each of the RUG's classes separately.
new text end

Sec. 51.

Minnesota Statutes 2006, section 256B.441, is amended by adding a
subdivision to read:

new text begin Subd. 57. new text end

new text begin Appeals. new text end

new text begin Nursing facilities may appeal, as described under section
256B.50, the determination of a payment rate established under this chapter.
new text end

Sec. 52.

Minnesota Statutes 2006, section 256B.5012, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin ICF/MR rate increases effective October 1, 2007, and October 1, 2008.
new text end

new text begin (a) For the rate year beginning October 1, 2007, the commissioner shall make available
to each facility reimbursed under this section operating payment rate adjustments equal
to 2.83 percent of the operating payment rates in effect on September 30, 2007. For the
rate year beginning October 1, 2008, the commissioner shall make available to each
facility reimbursed under this section operating payment rate adjustments equal to 2.83
percent of the operating payment rates in effect on September 30, 2008. For each facility,
the commissioner shall make available an adjustment, based on occupied beds, using the
percentage specified in this paragraph multiplied by the total payment rate, including the
variable rate but excluding the property-related payment rate, in effect on the preceding
day. The total payment rate shall include the adjustment provided in section 256B.501,
subdivision 12. A facility whose payment rates are governed by closure agreements,
receivership agreements, or Minnesota Rules, part 9553.0075, is not eligible for an
adjustment otherwise granted under this subdivision.
new text end

new text begin (b) Seventy-five percent of the money resulting from the rate adjustments under
paragraph (a) must be used for increases in compensation-related costs for employees
directly employed by the facility on or after the effective date of the rate adjustments,
except:
new text end

new text begin (1) the administrator;
new text end

new text begin (2) persons employed in the central office of a corporation that has an ownership
interest in the facility or exercises control over the facility; and
new text end

new text begin (3) persons paid by the facility under a management contract.
new text end

new text begin (c) Sixty-seven percent of the money available under paragraph (b) must be used for
wage increases for all employees directly employed by the facility on or after the effective
date of the rate adjustments, except those listed in paragraph (b), clauses (1) to (3). The
wage adjustment that employees receive under this paragraph must be paid as an equal
hourly wage increase for all eligible employees. This paragraph shall not apply to:
new text end

new text begin (1) employees eligible for a Taft-Hartley insurance plan established under United
States Code, title 29, section 186(c)(5); or
new text end

new text begin (2) public employees.
new text end

new text begin (d) The commissioner shall allow as compensation-related costs all costs for:
new text end

new text begin (1) wages and salaries;
new text end

new text begin (2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers'
compensation;
new text end

new text begin (3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, and pensions; and
new text end

new text begin (4) other benefits provided, subject to the approval of the commissioner.
new text end

new text begin (e) The portion of the rate adjustments under paragraph (a) that is not subject to the
requirements in paragraphs (b) and (c) shall be provided to facilities effective October
1 of each year.
new text end

new text begin (f) Facilities may apply for the portion of the rate adjustments under paragraph
(a) that is subject to the requirements in paragraphs (b) and (c). The application
must be submitted to the commissioner within six months of the effective date of the
rate adjustments, and the facility must provide additional information required by
the commissioner within nine months of the effective date of the rate adjustments.
The commissioner must respond to all applications within three weeks of receipt.
The commissioner may waive the deadlines in this paragraph under extraordinary
circumstances, to be determined at the sole discretion of the commissioner. The
application must contain:
new text end

new text begin (1) an estimate of the amounts of money that must be used as specified in paragraphs
(b) and (c);
new text end

new text begin (2) a detailed distribution plan specifying the allowable compensation-related and
wage increases the facility will implement to use the funds available in clause (1);
new text end

new text begin (3) a description of how the facility will notify eligible employees of the contents of
the approved application, which must provide for giving each eligible employee a copy of
the approved application, excluding the information required in clause (1), or posting a
copy of the approved application, excluding the information required in clause (1), for
a period of at least six weeks in an area of the facility to which all eligible employees
have access; and
new text end

new text begin (4) instructions for employees who believe they have not received the
compensation-related or wage increases specified in clause (2), as approved by the
commissioner, and which must include a mailing address, e-mail address, and the
telephone number that may be used by the employee to contact the commissioner or the
commissioner's representative.
new text end

new text begin (g) The commissioner shall ensure that cost increases in distribution plans under
paragraph (f), clause (2), that may be included in approved applications, comply with
requirements in clauses (1) to (4):
new text end

new text begin (1) costs to be incurred during the applicable rate year resulting from wage and salary
increases implemented prior to the first day of the facility's payroll period that includes
October 1 of each year shall be allowed if they were not used in a prior year's application;
new text end

new text begin (2) a portion of the costs resulting from tenure-related wage or salary increases
may be considered to be allowable wage increases, according to formulas that the
commissioner shall provide, where employee retention is above the average statewide
rate of retention of direct care employees;
new text end

new text begin (3) the annualized amount of increases in costs for the employer's share of health
and dental insurance, life insurance, disability insurance, and workers' compensation shall
be allowable compensation-related increases if they are effective on or after April 1 of
the year in which the rate adjustments are effective and prior to April 1 of the following
year; and
new text end

new text begin (4) for facilities in which employees are represented by an exclusive bargaining
representative, the commissioner shall approve the application only upon receipt of a letter
of acceptance of the distribution plan, as regards members of the bargaining unit, signed
by the exclusive bargaining agent and dated after enactment of this subdivision. Upon
receipt of the letter of acceptance, the commissioner shall deem all requirements of this
section as having been met in regard to the members of the bargaining unit.
new text end

new text begin (h) The commissioner shall review applications received under paragraph (f) and
shall provide the portion of the rate adjustments under paragraphs (b) and (c) if the
requirements of this subdivision have been met. The rate adjustments shall be effective
October 1 of each year. Notwithstanding paragraph (a), if the approved application
distributes less money than is available, the amount of the rate adjustment shall be reduced
so that the amount of money made available is equal to the amount to be distributed.
new text end

Sec. 53.

new text begin [256C.261] SERVICES FOR DEAF-BLIND PERSONS.
new text end

new text begin (a) The commissioner of human services shall combine the existing biennial base
level funding for deaf-blind services into a single grant program. At least 35 percent
of the total funding is awarded for services and other supports to deaf-blind children
and their families and at least 25 percent is awarded for services and other supports to
deaf-blind adults.
new text end

new text begin The commissioner shall award grants for the purposes of:
new text end

new text begin (1) providing services and supports to individuals who are deaf-blind; and
new text end

new text begin (2) developing and providing training to counties and the network of senior citizen
service providers. The purpose of the training grants is to teach counties how to use
existing programs that capture federal financial participation to meet the needs of eligible
deaf-blind persons and to build capacity of senior service programs to meet the needs of
seniors with a dual sensory hearing and vision loss.
new text end

new text begin (b) The commissioner may make grants:
new text end

new text begin (1) for services and training provided by organizations; and
new text end

new text begin (2) to develop and administer consumer-directed services.
new text end

new text begin (c) Any entity that is able to satisfy the grant criteria is eligible to receive a grant
under paragraph (a).
new text end

new text begin (d) Deaf-blind service providers may, but are not required to provide intervenor
services as part of the service package provided with grant funds under this section.
new text end

Sec. 54.

Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:

Subd. 4.

General assistance medical care; services.

(a)(i) For a person who is
eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical
care covers, except as provided in paragraph (c):

(1) inpatient hospital services;

(2) outpatient hospital services;

(3) services provided by Medicare certified rehabilitation agencies;

(4) prescription drugs and other products recommended through the process
established in section 256B.0625, subdivision 13;

(5) equipment necessary to administer insulin and diagnostic supplies and equipment
for diabetics to monitor blood sugar level;

(6) eyeglasses and eye examinations provided by a physician or optometrist;

(7) hearing aids;

(8) prosthetic devices;

(9) laboratory and X-ray services;

(10) physician's services;

(11) medical transportation except special transportation;

(12) chiropractic services as covered under the medical assistance program;

(13) podiatric services;

(14) dental services as covered under the medical assistance program;

(15) outpatient services provided by a mental health center or clinic that is under
contract with the county board and is established under section 245.62;

(16) day treatment services for mental illness provided under contract with the
county board;

(17) prescribed medications for persons who have been diagnosed as mentally ill as
necessary to prevent more restrictive institutionalization;

(18) psychological services, medical supplies and equipment, and Medicare
premiums, coinsurance and deductible payments;

(19) medical equipment not specifically listed in this paragraph when the use of
the equipment will prevent the need for costlier services that are reimbursable under
this subdivision;

(20) services performed by a certified pediatric nurse practitioner, a certified family
nurse practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological
nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse
practitioner in independent practice, if (1) the service is otherwise covered under this
chapter as a physician service, (2) the service provided on an inpatient basis is not included
as part of the cost for inpatient services included in the operating payment rate, and (3) the
service is within the scope of practice of the nurse practitioner's license as a registered
nurse, as defined in section 148.171;

(21) services of a certified public health nurse or a registered nurse practicing in
a public health nursing clinic that is a department of, or that operates under the direct
authority of, a unit of government, if the service is within the scope of practice of the
public health nurse's license as a registered nurse, as defined in section 148.171;

(22) telemedicine consultations, to the extent they are covered under section
256B.0625, subdivision 3b; deleted text begin and
deleted text end

(23) mental health telemedicine and psychiatric consultation as covered under
section 256B.0625, subdivisions 46 and 48 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (24) regardless of the number of employees that an enrolled health care provider
may have, sign language interpreter services when provided by an enrolled health care
provider during the course of providing a direct, person-to-person covered health care
service to an enrolled recipient who has a hearing loss and uses interpreting services.
new text end

(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3,
paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited
to inpatient hospital services, including physician services provided during the inpatient
hospital stay. A $1,000 deductible is required for each inpatient hospitalization.

(b) Effective August 1, 2005, sex reassignment surgery is not covered under this
subdivision.

(c) In order to contain costs, the commissioner of human services shall select
vendors of medical care who can provide the most economical care consistent with high
medical standards and shall where possible contract with organizations on a prepaid
capitation basis to provide these services. The commissioner shall consider proposals by
counties and vendors for prepaid health plans, competitive bidding programs, block grants,
or other vendor payment mechanisms designed to provide services in an economical
manner or to control utilization, with safeguards to ensure that necessary services are
provided. Before implementing prepaid programs in counties with a county operated or
affiliated public teaching hospital or a hospital or clinic operated by the University of
Minnesota, the commissioner shall consider the risks the prepaid program creates for the
hospital and allow the county or hospital the opportunity to participate in the program in a
manner that reflects the risk of adverse selection and the nature of the patients served by
the hospital, provided the terms of participation in the program are competitive with the
terms of other participants considering the nature of the population served. Payment for
services provided pursuant to this subdivision shall be as provided to medical assistance
vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For
payments made during fiscal year 1990 and later years, the commissioner shall consult
with an independent actuary in establishing prepayment rates, but shall retain final control
over the rate methodology.

(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following
co-payments for services provided on or after October 1, 2003:

(1) $25 for eyeglasses;

(2) $25 for nonemergency visits to a hospital-based emergency room;

(3) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness; and

(4) 50 percent coinsurance on restorative dental services.

(e) Co-payments shall be limited to one per day per provider for nonpreventive visits,
eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of
general assistance medical care are responsible for all co-payments in this subdivision.
The general assistance medical care reimbursement to the provider shall be reduced by
the amount of the co-payment, except that reimbursement for prescription drugs shall not
be reduced once a recipient has reached the $12 per month maximum for prescription
drug co-payments. The provider collects the co-payment from the recipient. Providers
may not deny services to recipients who are unable to pay the co-payment, except as
provided in paragraph (f).

(f) If it is the routine business practice of a provider to refuse service to an individual
with uncollected debt, the provider may include uncollected co-payments under this
section. A provider must give advance notice to a recipient with uncollected debt before
services can be denied.

(g) Any county may, from its own resources, provide medical payments for which
state payments are not made.

(h) Chemical dependency services that are reimbursed under chapter 254B must not
be reimbursed under general assistance medical care.

(i) The maximum payment for new vendors enrolled in the general assistance
medical care program after the base year shall be determined from the average usual and
customary charge of the same vendor type enrolled in the base year.

(j) The conditions of payment for services under this subdivision are the same as the
conditions specified in rules adopted under chapter 256B governing the medical assistance
program, unless otherwise provided by statute or rule.

(k) Inpatient and outpatient payments shall be reduced by five percent, effective July
1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003,
and incorporated by reference in paragraph (i).

(l) Payments for all other health services except inpatient, outpatient, and pharmacy
services shall be reduced by five percent, effective July 1, 2003.

(m) Payments to managed care plans shall be reduced by five percent for services
provided on or after October 1, 2003.

(n) A hospital receiving a reduced payment as a result of this section may apply the
unpaid balance toward satisfaction of the hospital's bad debts.

(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3
for services provided on or after January 1, 2006. For purposes of this subdivision, a
visit means an episode of service which is required because of a recipient's symptoms,
diagnosis, or established illness, and which is delivered in an ambulatory setting by
a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse,
audiologist, optician, or optometrist.

(p) Payments to managed care plans shall not be increased as a result of the removal
of the $3 nonpreventive visit co-payment effective January 1, 2006.

Sec. 55.

Minnesota Statutes 2006, section 462A.05, is amended by adding a
subdivision to read:

new text begin Subd. 42. new text end

new text begin Reverse mortgage incentive program. new text end

new text begin (a) The agency shall, within the
limits of appropriations made available for this purpose, establish, in cooperation with
the commissioner of human services, a program to encourage eligible persons to obtain
reverse mortgages to pay for eligible costs of maintaining the person in the home as an
alternative to a nursing facility placement.
new text end

new text begin (b) The incentive program shall be made available to a person who has been
determined by the commissioner of human services or the commissioner's designated
agent to meet all of the following criteria:
new text end

new text begin (1) is age 62 or older;
new text end

new text begin (2) would be eligible for medical assistance within 365 days of admission to a
nursing home;
new text end

new text begin (3) is not a medical assistance recipient, is not eligible for medical assistance without
a spenddown or waiver obligation, is not ineligible for the medical assistance program due
to an asset transfer penalty, and does not have income greater than the maintenance needs
allowance under section 256B.0915, subdivision 1d, but equal to or less than 120 percent
of the federal poverty guidelines effective July 1 in the year for which program eligibility
is established, who would be eligible for the elderly waiver with a waiver obligation;
new text end

new text begin (4) needs services that are not funded through other state or federal funding for
which the person qualifies;
new text end

new text begin (5) obtains a reverse mortgage loan under section 47.58 on a home with an estimated
market value not to exceed $156,000. This limit shall be adjusted annually on April 1
by the percentage change for the previous calendar year in the housing component of the
United States Consumer Price Index - all urban consumers; and
new text end

new text begin (6) agrees to make expenditures of reverse mortgage payments according to a
spending plan established under section 256B.0911, subdivision 3a, in which payments,
services, and supports meet the following standards:
new text end

new text begin (i) payments received under the loan for a period of at least 24 months or in an
amount of at least $15,000 are used for services and supports, including basic shelter
needs, home maintenance, and modifications or adaptations, necessary to allow the person
to remain in the home as an alternative to a nursing facility placement;
new text end

new text begin (ii) reimbursements for services, supplies, and equipment shall not exceed the
market rate; and
new text end

new text begin (iii) if the person's spouse qualifies under section 256B.0913, subdivisions 1 to 14,
the reverse mortgage payments may be used to pay client fees under that section.
new text end

new text begin (c) The incentives available under this program shall include:
new text end

new text begin (1) payment of the initial mortgage insurance premium for a reverse mortgage.
The maximum payment under this clause shall be limited to $1,560. This limit shall be
adjusted annually on April 1 by the percentage change for the previous calendar year in
the housing component of the United States Consumer Price Index - all urban consumers;
new text end

new text begin (2) with federal approval, payments to reduce service fee set-asides, through an
advance payment to the lender, an agreement to guarantee fee payments after 60 months
if the set-aside is limited to 60 months, or through other mechanisms approved by the
commissioner; and
new text end

new text begin (3) other incentives approved by the commissioner.
new text end

new text begin (d) After calculating the adjusted maximum payment limits under paragraphs (b)
and (c), the commissioner shall annually notify the Office of the Revisor of Statutes in
writing, on or before May 1, of the adjusted limits. The revisor shall annually publish in
the Minnesota Statutes the adjusted maximum payment limits under paragraph (b).
new text end

Sec. 56. new text begin LICENSURE; SERVICES FOR YOUTH WITH DISABILITIES.
new text end

new text begin (a) Notwithstanding the requirements of Minnesota Statutes, chapter 245A, upon
the recommendation of a county agency, the commissioner of human services shall
grant a license with any necessary variances to a nonresidential program for youth
that provides services to youth with disabilities under age 21 during nonschool hours
established to ensure health and safety, prevent out-of-home placement, and increase
community inclusion of youth with disabilities. The nonresidential youth program is
subject to the conditions of any variances granted and to consumer rights standards under
Minnesota Statutes, section 245B.04; consumer protection standards under Minnesota
Statutes, section 245B.05; service standards under Minnesota Statutes, section 245B.06;
management standards under Minnesota Statutes, section 245B.07; and fire marshal
inspections under Minnesota Statutes, section 245A.151, until the commissioner develops
other licensure requirements for this type of program.
new text end

new text begin (b) By February 1, 2008, the commissioner shall recommend amendments to
licensure requirements in Minnesota Statutes, chapter 245A, to allow licensure of
appropriate services for school-age youth with disabilities under age 21 who need
supervision and services to develop skills necessary to maintain personal safety and
increase their independence, productivity, and participation in their communities during
nonschool hours. As part of developing the recommendations, the commissioner shall
survey county agencies to determine how the needs of youth with disabilities under age 21
who require supervision and support services are being met and the funding sources used.
The recommendations must be provided to the house and senate chairs of the committees
with jurisdiction over licensing of programs for youth with disabilities.
new text end

Sec. 57. new text begin HOUSING WITH SERVICES AND HOME CARE PROVIDERS
STUDY; REPORT.
new text end

new text begin The commissioner of human services shall conduct a study of housing with
services establishments and their arranged home care providers to assess the impact that
residents' spending down to eligibility for public programs has on public expenditures.
The preliminary results of this study shall be reported to the house and senate committees
with jurisdiction over health and human services policy and finance issues by February
15, 2008, with a final report completed by December 15, 2008. Housing with services
establishments and home care providers shall provide information upon request of the
commissioner in order to achieve study outcomes, including:
new text end

new text begin (1) length of stay of residents in the housing with services establishment;
new text end

new text begin (2) housing and services provided and related charges, payments, and payment
sources;
new text end

new text begin (3) housing and services included in base rates charged to all residents;
new text end

new text begin (4) reasons for termination of services;
new text end

new text begin (5) reasons for termination of leases;
new text end

new text begin (6) copies of contracts, agreements, and leases;
new text end

new text begin (7) resident demographics; and
new text end

new text begin (8) other information as requested by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 58. new text begin PROVIDER RATE INCREASES.
new text end

new text begin (a) The commissioner of human services shall increase reimbursement rates or rate
limits, as applicable, by 2.83 percent beginning October 1, 2007, and by 2.83 percent
beginning October 1, 2008, effective for services rendered on or after those dates. County
contracts for services specified in this section must be amended to pass through these rate
adjustments within 60 days of the effective date of the increase and must be retroactive
from the effective date of the rate adjustment.
new text end

new text begin (b) The annual rate increases described in this section must be provided to:
new text end

new text begin (1) home and community-based waivered services for persons with developmental
disabilities or related conditions, including consumer-directed community supports, under
Minnesota Statutes, section 256B.501;
new text end

new text begin (2) home and community-based waivered services for the elderly, including
consumer-directed community supports, under Minnesota Statutes, section 256B.0915;
new text end

new text begin (3) waivered services under community alternatives for disabled individuals,
including consumer-directed community supports, under Minnesota Statutes, section
256B.49;
new text end

new text begin (4) community alternative care waivered services, including consumer-directed
community supports, under Minnesota Statutes, section 256B.49;
new text end

new text begin (5) traumatic brain injury waivered services, including consumer-directed
community supports, under Minnesota Statutes, section 256B.49;
new text end

new text begin (6) nursing services and home health services under Minnesota Statutes, section
256B.0625, subdivision 6a;
new text end

new text begin (7) personal care services and qualified professional supervision of personal care
services under Minnesota Statutes, section 256B.0625, subdivision 19a;
new text end

new text begin (8) private duty nursing services under Minnesota Statutes, section 256B.0625,
subdivision 7;
new text end

new text begin (9) day training and habilitation services for adults with developmental disabilities
or related conditions under Minnesota Statutes, sections 252.40 to 252.46;
new text end

new text begin (10) alternative care services under Minnesota Statutes, section 256B.0913;
new text end

new text begin (11) adult residential program grants under Minnesota Statutes, section 245.73;
new text end

new text begin (12) children's community-based mental health services grants and adult community
support and case management services grants under Minnesota Rules, parts 9535.1700
to 9535.1760;
new text end

new text begin (13) the group residential housing supplementary service rate under Minnesota
Statutes, section 256I.05, subdivision 1a;
new text end

new text begin (14) adult mental health integrated fund grants under Minnesota Statutes, section
245.4661;
new text end

new text begin (15) semi-independent living services (SILS) under Minnesota Statutes, section
252.275, including SILS funding under county social services grants formerly funded
under Minnesota Statutes, chapter 256I;
new text end

new text begin (16) community support services for deaf and hard-of-hearing adults with mental
illness who use or wish to use sign language as their primary means of communication
under Minnesota Statutes, section 256.01, subdivision 2; and deaf and hard-of-hearing
grants under Minnesota Statutes, sections 256C.225 and 256C.233; Laws 1985, chapter 9,
article 1; and Laws 1997, First Special Session chapter 5, section 20;
new text end

new text begin (17) living skills training programs for persons with intractable epilepsy who need
assistance in the transition to independent living under Laws 1988, chapter 689;
new text end

new text begin (18) physical therapy services under sections 256B.0625, subdivision 8, and
256D.03, subdivision 4;
new text end

new text begin (19) occupational therapy services under sections 256B.0625, subdivision 8a, and
256D.03, subdivision 4;
new text end

new text begin (20) speech-language therapy services under section 256D.03, subdivision 4, and
Minnesota Rules, part 9505.0390;
new text end

new text begin (21) respiratory therapy services under section 256D.03, subdivision 4, and
Minnesota Rules, part 9505.0295;
new text end

new text begin (22) adult rehabilitative mental health services under section 256B.0623;
new text end

new text begin (23) children's therapeutic services and support services under section 256B.0943;
new text end

new text begin (24) tier I chemical health services under Minnesota Statutes, chapter 254B;
new text end

new text begin (25) consumer support grants under Minnesota Statutes, section 256.476;
new text end

new text begin (26) family support grants under Minnesota Statutes, section 252.32;
new text end

new text begin (27) grants for case management services to persons with HIV or AIDS under
Minnesota Statutes, section 256.01, subdivision 19; and
new text end

new text begin (28) aging grants under Minnesota Statutes, sections 256.975 to 256.977, 256B.0917,
and 256B.0928.
new text end

new text begin (c) For services funded through Minnesota disability health options, the rate
increases under this section apply to all medical assistance payments, including former
group residential housing supplementary rates under Minnesota Statutes, chapter 256I.
new text end

new text begin (d) The commissioner may recoup payments made under this section from a provider
that does not comply with paragraphs (f) and (g).
new text end

new text begin (e) A managed care plan receiving state payments for the services in this section
must include these increases in their payments to providers on a prospective basis,
effective on January 1 following the effective date of the rate increase.
new text end

new text begin (f) Providers that receive a rate increase under this section shall use 75 percent of
the additional revenue to increase compensation-related costs for employees directly
employed by the program on or after the effective date of the rate adjustments, except:
new text end

new text begin (1) the administrator;
new text end

new text begin (2) persons employed in the central office of a corporation or entity that has an
ownership interest in the provider or exercises control over the provider; and
new text end

new text begin (3) persons paid by the provider under a management contract.
new text end

new text begin Compensation-related costs include: wages and salaries; FICA taxes, Medicare taxes,
state and federal unemployment taxes, and workers' compensation; and the employer's
share of health and dental insurance, life insurance, disability insurance, long-term care
insurance, uniform allowance, and pensions.
new text end

new text begin (g) Sixty-seven percent of the money available under paragraph (f) must be used
for wage increases for all employees directly employed by the provider on or after the
effective date of the rate adjustments, except those listed in paragraph (f), clauses (1) to
(3). The wage adjustment that employees receive under this paragraph must be paid as an
equal hourly wage increase for all eligible employees. This paragraph shall not apply to:
new text end

new text begin (1) employees eligible for a Taft-Hartley insurance plan established under United
States Code, title 29, section 186(c)(5); or
new text end

new text begin (2) public employees.
new text end

new text begin (h) For public employees, the increase for wages and benefits for certain staff is
available and pay rates must be increased only to the extent that they comply with laws
governing public employees collective bargaining. Money received by a provider for pay
increases under this section may be used only for increases implemented on or after the
first day of the rate period in which the increase is available and must not be used for
increases implemented prior to that date.
new text end

new text begin (i) The commissioner shall amend state grant contracts that include direct
personnel-related grant expenditures to include the rate adjustment for the portion of the
contract that is employee compensation related. Grant contracts for compensation-related
services must be amended to pass through these adjustments within 60 days of the effective
date of the increase and must be retroactive to the effective date of the rate adjustment.
new text end

new text begin (j) The Board on Aging and its Area Agencies on Aging shall amend their
grants that include direct personnel-related grant expenditures to include the rate
adjustment for the portion of the grant that is employee compensation related. Grants
for compensation-related services must be amended to pass through these adjustments
within 60 days of the effective date of the increase and must be retroactive to the effective
date of the rate adjustment.
new text end

new text begin (k) The calendar year 2008 rate for vendors reimbursed under Minnesota Statutes,
chapter 254B, shall be 2.83 percent above the rate in effect on January 1, 2007. The
calendar year 2009 rate shall be 2.83 percent above the rate in effect on January 1, 2008.
new text end

new text begin (l) Providers that receive a rate adjustment under paragraph (a) that is subject to
paragraphs (f) and (g) shall provide to the commissioner, and those counties with whom
they have a contract, within six months after the effective date of each rate adjustment, a
letter, in a format specified by the commissioner, that provides assurances that the provider
has developed and implemented a compensation plan and complied with paragraphs (f)
and (g). The provider shall keep on file, and produce for the commissioner or county
upon request, its plan, which must specify:
new text end

new text begin (1) an estimate of the amounts of money that must be used as specified in paragraphs
(f) and (g); and
new text end

new text begin (2) a detailed distribution plan specifying the allowable compensation-related and
wage increases the provider will implement to use the funds available in clause (1).
new text end

new text begin (m) Within six months after the effective date of each rate adjustment, the provider
shall post this plan, excluding the information required in paragraph (l), clause (1), for
a period of at least six weeks in an area of the provider's operation to which all eligible
employees have access and provide instructions for employees who believe they have
not received the wage and other compensation-related increases specified in paragraph
(l), clause (2). Instructions must include a mailing address, e-mail address, and the
telephone number that may be used by the employee to contact the commissioner or the
commissioner's representative. Providers shall also make assurances to the commissioner
and counties with whom they have a contract that they have complied with the requirement
in this paragraph.
new text end

Sec. 59. new text begin PROVIDER RATE INCREASE.
new text end

new text begin A day training and habilitation provider in St. Louis County providing services for
up to 80 individuals shall have a reimbursement rate that equals 94 percent of 125 percent
of the statewide median per diem.
new text end

Sec. 60. new text begin REINVESTMENT FOR COUNTY-BASED HEALTH CARE
PROGRAMS.
new text end

new text begin Any county that realizes savings from electing to provide health care services
through a county-based purchasing plan under Minnesota Statutes, section 256B.692,
must reinvest the savings into health care services or programs.
new text end

Sec. 61. new text begin CERVICAL CANCER PREVENTION AND HUMAN PAPILLOMA
VIRUS VACCINE STUDY.
new text end

new text begin The commissioner of health shall continue the cervical cancer elimination study
required under Laws 2005, First Special Session chapter 4, article 6, section 52, to conduct
a study, in collaboration with the Minnesota Immunization Practices Advisory Committee,
on the human papilloma virus vaccine, including, but not limited to, the following:
new text end

new text begin (1) the risks and benefits of the human papilloma virus vaccine;
new text end

new text begin (2) the availability and effectiveness of the vaccine;
new text end

new text begin (3) the extent to which health plan companies cover the cost of this vaccination; and
new text end

new text begin (4) ways to cover the cost of vaccination for persons without coverage.
new text end

new text begin The commissioner shall submit a report to the legislature by February 1, 2008, on
the findings of the study and recommendations as to whether the human papilloma virus
vaccine should be made mandatory statewide.
new text end

Sec. 62. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 256B.441, subdivisions 12, 16, 21, 26, 28, 42,
and 45, new text end new text begin are repealed.
new text end

ARTICLE 6

MENTAL AND CHEMICAL HEALTH

Section 1.

new text begin [16C.155] JANITORIAL CONTRACTS FOR REHABILITATION
PROGRAMS AND EXTENDED EMPLOYMENT PROVIDERS.
new text end

new text begin The commissioner of administration shall ensure that a portion of all janitorial
services contracts be awarded by the state to rehabilitation programs and extended
employment providers listed under section 16C.15. The total value of the contracts under
this section must exceed 19 percent of the total value of janitorial services contracts
entered into in the previous fiscal year. The amount of each contract awarded under this
section may exceed the estimated fair market price for the same goods and services by
up to five percent.
new text end

Sec. 2.

Minnesota Statutes 2006, section 148C.11, subdivision 1, is amended to read:

Subdivision 1.

Other professionals.

(a) Nothing in this chapter prevents members
of other professions or occupations from performing functions for which they are qualified
or licensed. This exception includes, but is not limited to: licensed physicians; registered
nurses; licensed practical nurses; licensed psychological practitioners; members of
the clergy; American Indian medicine men and women; licensed attorneys; probation
officers; licensed marriage and family therapists; licensed social workers; social workers
employed by city, county, or state agencies; licensed professional counselors; licensed
school counselors; registered occupational therapists or occupational therapy assistants;
city, county, or state employees when providing assessments or case management under
Minnesota Rules, chapter 9530; and until July 1, deleted text begin 2007 deleted text end new text begin 2009 new text end , individuals providing
integrated dual-diagnosis treatment in adult mental health rehabilitative programs certified
by the Department of Human Services under section 256B.0622 or 256B.0623.

(b) Nothing in this chapter prohibits technicians and resident managers in programs
licensed by the Department of Human Services from discharging their duties as provided
in Minnesota Rules, chapter 9530.

(c) Any person who is exempt under this subdivision but who elects to obtain a
license under this chapter is subject to this chapter to the same extent as other licensees.
The board shall issue a license without examination to an applicant who is licensed or
registered in a profession identified in paragraph (a) if the applicant:

(1) shows evidence of current licensure or registration; and

(2) has submitted to the board a plan for supervision during the first 2,000 hours of
professional practice or has submitted proof of supervised professional practice that is
acceptable to the board.

(d) Any person who is exempt from licensure under this section must not use a
title incorporating the words "alcohol and drug counselor" or "licensed alcohol and drug
counselor" or otherwise hold themselves out to the public by any title or description
stating or implying that they are engaged in the practice of alcohol and drug counseling,
or that they are licensed to engage in the practice of alcohol and drug counseling unless
that person is also licensed as an alcohol and drug counselor. Persons engaged in the
practice of alcohol and drug counseling are not exempt from the board's jurisdiction
solely by the use of one of the above titles.

Sec. 3.

Minnesota Statutes 2006, section 169A.70, subdivision 4, is amended to read:

Subd. 4.

Assessor standards; rules; assessment time limits.

A chemical use
assessment required by this section must be conducted by an assessor appointed by the
court. The assessor must meet the training and qualification requirements of rules adopted
by the commissioner of human services under section 254A.03, subdivision 3 (chemical
dependency treatment rules). Notwithstanding section 13.82 (law enforcement data), the
assessor shall have access to any police reports, laboratory test results, and other law
enforcement data relating to the current offense or previous offenses that are necessary
to complete the evaluation. An assessor providing an assessment under this section may
not have any direct or shared financial interest or referral relationship resulting in shared
financial gain with a treatment provider new text begin , except as authorized under section 254A.20,
subdivision 3 new text end . If an independent assessor is not available, the court may use the services
of an assessor authorized to perform assessments for the county social services agency
under a variance granted under rules adopted by the commissioner of human services
under section 254A.03, subdivision 3. An appointment for the defendant to undergo the
assessment must be made by the court, a court services probation officer, or the court
administrator as soon as possible but in no case more than one week after the defendant's
court appearance. The assessment must be completed no later than three weeks after the
defendant's court appearance. If the assessment is not performed within this time limit, the
county where the defendant is to be sentenced shall perform the assessment. The county
of financial responsibility must be determined under chapter 256G.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2006, section 245.465, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Responsibility not duplicated. new text end

new text begin For individuals who have health care
coverage, the county board is not responsible for providing mental health services which
are within the limits of the individual's health care coverage.
new text end

Sec. 5.

new text begin [245.4682] MENTAL HEALTH SERVICE DELIVERY AND FINANCE
REFORM.
new text end

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin The commissioner of human services shall undertake a series
of reforms to address the underlying structural, financial, and organizational problems in
Minnesota's mental health system with the goal of improving the availability, quality, and
accountability of mental health care within the state.
new text end

new text begin Subd. 2. new text end

new text begin General provisions. new text end

new text begin (a) In the design and implementation of reforms to
the mental health system, the commissioner shall:
new text end

new text begin (1) consult with consumers, families, counties, tribes, advocates, providers, and
other stakeholders;
new text end

new text begin (2) bring to the legislature, and the State Advisory Council on Mental Health, by
January 15, 2008, recommendations for legislation to update the role of counties and to
clarify the case management roles and functions of health plans and counties;
new text end

new text begin (3) ensure continuity of care for persons affected by these reforms including
ensuring client choice of provider by requiring broad provider networks and developing
mechanisms to facilitate a smooth transition of service responsibilities;
new text end

new text begin (4) provide accountability for the efficient and effective use of public and private
resources in achieving positive outcomes for consumers;
new text end

new text begin (5) ensure client access to applicable protections and appeals; and
new text end

new text begin (6) make budget transfers necessary to implement the reallocation of services and
client responsibilities between counties and health care programs that do not increase the
state and county costs and efficiently allocate state funds.
new text end

new text begin (b) When making transfers under paragraph (a) necessary to implement movement
of responsibility for clients and services between counties and health care programs,
the commissioner, in consultation with counties, shall ensure that any transfer of state
grants to health care programs, including the value of case management transfer grants
under section 256B.0625, subdivision 20, does not exceed the value of the services being
transferred for the latest 12-month period for which data is available. The commissioner
shall make quarterly adjustments based on the availability of additional data during the
first eight quarters after the transfers first occur. If case management transfer grants under
section 256B.0625, subdivision 20, are repealed and the value, based on the last year prior
to repeal, exceeds the value of the services being transferred, the difference becomes an
ongoing part of each county's adult and children's mental health grants under sections
245.4661, 245.4889, and 256E.12.
new text end

new text begin Subd. 3. new text end

new text begin Projects for coordination of care. new text end

new text begin (a) Consistent with section 256B.69
and chapters 256D and 256L, the commissioner is authorized to solicit, approve, and
implement projects to demonstrate the integration of physical and mental health services
within prepaid health plans and their coordination with social services. The commissioner
shall require that each project be based on locally defined partnerships that include at
least one health maintenance organization, community integrated service network, or
accountable provider network authorized and operating under chapter 62D, 62N, or 62T, or
county-based purchasing entity under section 256B.692 that is eligible to contract with the
commissioner as a prepaid health plan, and the county or counties within the service area.
new text end

new text begin (b) The commissioner, in consultation with consumers, families, and their
representatives, shall:
new text end

new text begin (1) determine criteria for approving the projects and use those criteria to solicit
proposals for preferred integrated networks. The commissioner must develop criteria to
evaluate the partnership proposed by the county and prepaid health plan to coordinate
access and delivery of services. The proposal must at a minimum address how the
partnership will coordinate the provision of:
new text end

new text begin (i) client outreach and identification of health and social service needs paired with
expedited access to appropriate resources;
new text end

new text begin (ii) activities to maintain continuity of health care coverage;
new text end

new text begin (iii) children's residential mental health treatment and treatment foster care;
new text end

new text begin (iv) court-ordered assessments and treatments;
new text end

new text begin (v) prepetition screening and commitments under chapter 253B;
new text end

new text begin (vi) assessment and treatment of children identified through mental health screening
of child welfare and juvenile corrections cases;
new text end

new text begin (vii) home and community-based waiver services;
new text end

new text begin (viii) assistance with finding and maintaining employment;
new text end

new text begin (ix) housing; and
new text end

new text begin (x) transportation;
new text end

new text begin (2) determine specifications for contracts with prepaid health plans to improve the
plan's ability to serve persons with mental health conditions, including specifications
addressing:
new text end

new text begin (i) early identification and intervention of physical and behavioral health problems;
new text end

new text begin (ii) communication between the enrollee and the health plan;
new text end

new text begin (iii) facilitation of enrollment for persons who are also eligible for a Medicare
special needs plan offered by the health plan;
new text end

new text begin (iv) risk screening procedures;
new text end

new text begin (v) health care coordination;
new text end

new text begin (vi) member services and access to applicable protections and appeal processes;
new text end

new text begin (vii) specialty provider networks;
new text end

new text begin (viii) transportation services;
new text end

new text begin (ix) treatment planning; and
new text end

new text begin (x) administrative simplification for providers;
new text end

new text begin (3) begin implementation of the projects no earlier than January 1, 2009, with not
more than 40 percent of the statewide population included during calendar year 2009 and
additional counties included in subsequent years;
new text end

new text begin (4) waive any administrative rule not consistent with the implementation of the
projects; and
new text end

new text begin (5) allow potential bidders at least 90 days to respond to the request for proposals.
new text end

new text begin (c) Notwithstanding any statute or administrative rule to the contrary, the
commissioner may enroll all persons eligible for medical assistance with serious mental
illness or emotional disturbance in the prepaid plan of their choice within the project
service area unless:
new text end

new text begin (1) the individual is eligible for home and community-based services for persons
with developmental disabilities and related conditions under section 256B.092; or
new text end

new text begin (2) the individual has a basis for exclusion from the prepaid plan under section
256B.69, subdivision 4, other than disability, mental illness, or emotional disturbance.
new text end

new text begin (d) If the person described in paragraph (c) does not elect to remain in fee-for-service
medical assistance, or declines to choose a plan, the commissioner may preferentially
assign that person to the prepaid plan participating in the preferred integrated network.
The commissioner shall implement the enrollment changes within a project's service area
on the timeline specified in that project's approved application.
new text end

new text begin (e) A person enrolled in a prepaid health plan under paragraphs (c) and (d) may
disenroll from the plan at any time.
new text end

new text begin (f) The commissioner, in consultation with consumers, families, and their
representatives, shall evaluate the projects begun in 2009, and shall refine the design of the
service integration projects before expanding the projects.
new text end

new text begin (g) The commissioner shall apply for any federal waivers necessary to implement
these changes.
new text end

new text begin (h) Payment for Medicaid service providers under this subdivision for the months of
May and June will be made no earlier than July 1 of the same calendar year.
new text end

Sec. 6.

Minnesota Statutes 2006, section 245.4874, is amended to read:

245.4874 DUTIES OF COUNTY BOARD.

new text begin Subdivision 1. new text end

new text begin Duties of the county board. new text end

(a) The county board must:

(1) develop a system of affordable and locally available children's mental health
services according to sections 245.487 to 245.4887;

(2) establish a mechanism providing for interagency coordination as specified in
section 245.4875, subdivision 6;

(3) consider the assessment of unmet needs in the county as reported by the local
children's mental health advisory council under section 245.4875, subdivision 5, paragraph
(b), clause (3). The county shall provide, upon request of the local children's mental health
advisory council, readily available data to assist in the determination of unmet needs;

(4) assure that parents and providers in the county receive information about how to
gain access to services provided according to sections 245.487 to 245.4887;

(5) coordinate the delivery of children's mental health services with services
provided by social services, education, corrections, health, and vocational agencies to
improve the availability of mental health services to children and the cost-effectiveness of
their delivery;

(6) assure that mental health services delivered according to sections 245.487
to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic
assessment and individual treatment plan;

(7) provide the community with information about predictors and symptoms of
emotional disturbances and how to access children's mental health services according to
sections 245.4877 and 245.4878;

(8) provide for case management services to each child with severe emotional
disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881,
subdivisions 1, 3, and 5;

(9) provide for screening of each child under section 245.4885 upon admission
to a residential treatment facility, acute care hospital inpatient treatment, or informal
admission to a regional treatment center;

(10) prudently administer grants and purchase-of-service contracts that the county
board determines are necessary to fulfill its responsibilities under sections 245.487 to
245.4887;

(11) assure that mental health professionals, mental health practitioners, and case
managers employed by or under contract to the county to provide mental health services
are qualified under section 245.4871;

(12) assure that children's mental health services are coordinated with adult mental
health services specified in sections 245.461 to 245.486 so that a continuum of mental
health services is available to serve persons with mental illness, regardless of the person's
age;

(13) assure that culturally deleted text begin informed deleted text end new text begin competent new text end mental health consultants are used as
necessary to assist the county board in assessing and providing appropriate treatment for
children of cultural or racial minority heritage; and

(14) consistent with section 245.486, arrange for or provide a children's mental
health screening to a child receiving child protective services or a child in out-of-home
placement, a child for whom parental rights have been terminated, a child found to be
delinquent, and a child found to have committed a juvenile petty offense for the third or
subsequent time, unless a screening has been performed within the previous 180 days, or
the child is currently under the care of a mental health professional. The court or county
agency must notify a parent or guardian whose parental rights have not been terminated of
the potential mental health screening and the option to prevent the screening by notifying
the court or county agency in writing. The screening shall be conducted with a screening
instrument approved by the commissioner of human services according to criteria that
are updated and issued annually to ensure that approved screening instruments are valid
and useful for child welfare and juvenile justice populations, and shall be conducted
by a mental health practitioner as defined in section 245.4871, subdivision 26, or a
probation officer or local social services agency staff person who is trained in the use of
the screening instrument. Training in the use of the instrument shall include training in the
administration of the instrument, the interpretation of its validity given the child's current
circumstances, the state and federal data practices laws and confidentiality standards, the
parental consent requirement, and providing respect for families and cultural values.
If the screen indicates a need for assessment, the child's family, or if the family lacks
mental health insurance, the local social services agency, in consultation with the child's
family, shall have conducted a diagnostic assessment, including a functional assessment,
as defined in section 245.4871. The administration of the screening shall safeguard the
privacy of children receiving the screening and their families and shall comply with the
Minnesota Government Data Practices Act, chapter 13, and the federal Health Insurance
Portability and Accountability Act of 1996, Public Law 104-191. Screening results shall be
considered private data and the commissioner shall not collect individual screening results.

(b) When the county board refers clients to providers of children's therapeutic
services and supports under section 256B.0943, the county board must clearly identify
the desired services components not covered under section 256B.0943 and identify the
reimbursement source for those requested services, the method of payment, and the
payment rate to the provider.

new text begin Subd. 2. new text end

new text begin Responsibility not duplicated. new text end

new text begin For individuals who have health care
coverage, the county board is not responsible for providing mental health services which
are within the limits of the individual's health care coverage.
new text end

Sec. 7.

new text begin [245.4889] CHILDREN'S MENTAL HEALTH GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment and authority. new text end

new text begin (a) The commissioner is authorized
to make grants from available appropriations to assist:
new text end

new text begin (1) counties;
new text end

new text begin (2) Indian tribes;
new text end

new text begin (3) children's collaboratives under section 124D.23 or 245.493; or
new text end

new text begin (4) mental health service providers
new text end

new text begin for providing services to children with emotional disturbances as defined in section
245.4871, subdivision 15, and their families. The commissioner may also authorize
grants to young adults meeting the criteria for transition services in section 245.4875,
subdivision 8, and their families.
new text end

new text begin (b) Services under paragraph (a) must be designed to help each child to function and
remain with the child's family in the community and delivered consistent with the child's
treatment plan. Transition services to eligible young adults under paragraph (a) must be
designed to foster independent living in the community.
new text end

new text begin Subd. 2. new text end

new text begin Grant application and reporting requirements. new text end

new text begin To apply for a grant,
an applicant organization shall submit an application and budget for the use of the
money in the form specified by the commissioner. The commissioner shall make grants
only to entities whose applications and budgets are approved by the commissioner. In
awarding grants, the commissioner shall give priority to applications that indicate plans
to collaborate in the development, funding, and delivery of services with other agencies
in the local system of care. The commissioner shall specify requirements for reports,
including quarterly fiscal reports under section 256.01, subdivision 2, paragraph (q). The
commissioner shall require collection of data and periodic reports that the commissioner
deems necessary to demonstrate the effectiveness of each service.
new text end

Sec. 8.

Minnesota Statutes 2006, section 245.98, subdivision 2, is amended to read:

Subd. 2.

Program.

The commissioner of human services shall establish a program
for the treatment of compulsive gamblers. The commissioner may contract with an
entity with expertise regarding the treatment of compulsive gambling to operate the
program. The program may include the establishment of a statewide toll-free number,
resource library, public education programs; regional in-service training programs and
conferences for health care professionals, educators, treatment providers, employee
assistance programs, and criminal justice representatives; and the establishment of
certification standards for programs and service providers. The commissioner may enter
into agreements with other entities and may employ or contract with consultants to
facilitate the provision of these services or the training of individuals to qualify them to
provide these services. The program may also include inpatient and outpatient treatment
and rehabilitation services deleted text begin and deleted text end new text begin for residents in different settings, including a temporary or
permanent residential setting for mental health or chemical dependency, and individuals
in jails or correctional facilities. The program may also include new text end research studies. The
research studies must include baseline and prevalence studies for adolescents and adults to
identify those at the highest risk. The program must be approved by the commissioner
before it is established.

Sec. 9.

Minnesota Statutes 2006, section 246.54, subdivision 1, is amended to read:

Subdivision 1.

County portion for cost of care.

new text begin (a) new text end Except for chemical
dependency services provided under sections 254B.01 to 254B.09, the client's county
shall pay to the state of Minnesota a portion of the cost of care provided in a regional
treatment center or a state nursing facility to a client legally settled in that county. A
county's payment shall be made from the county's own sources of revenue and payments
shall deleted text begin be paid as follows: payments to the state from the county shall deleted text end equal deleted text begin 20 percent deleted text end new text begin a
percentage new text end of the cost of care, as determined by the commissioner, for each day, or the
portion thereof, that the client spends at a regional treatment center or a state nursing
facility deleted text begin . deleted text end new text begin according to the following schedule:
new text end

new text begin (1) zero percent for the first 30 days;
new text end

new text begin (2) 20 percent for days 31 to 60; and
new text end

new text begin (3) 50 percent for any days over 60.
new text end

new text begin (b) The increase in the county portion for cost of care under paragraph (a), clause
(3), shall be imposed when the treatment facility has determined that it is clinically
appropriate for the client to be discharged.
new text end

new text begin (c) new text end If payments received by the state under sections 246.50 to 246.53 exceed 80
percent of the cost of care new text begin for days 31 to 60, or 50 percent for days over 60 new text end , the county
shall be responsible for paying the state only the remaining amount. The county shall
not be entitled to reimbursement from the client, the client's estate, or from the client's
relatives, except as provided in section 246.53. deleted text begin No such payments shall be made for any
client who was last committed prior to July 1, 1947. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 246.54, subdivision 2, is amended to read:

Subd. 2.

Exceptions.

new text begin (a) new text end Subdivision 1 does not apply to services provided at the
Minnesota Security Hospital, the Minnesota sex offender program, or the Minnesota
extended treatment options program. For services at these facilities, a county's payment
shall be made from the county's own sources of revenue and payments shall be paid as
follows: payments to the state from the county shall equal ten percent of the cost of care,
as determined by the commissioner, for each day, or the portion thereof, that the client
spends at the facility. If payments received by the state under sections 246.50 to 246.53
exceed 90 percent of the cost of care, the county shall be responsible for paying the state
only the remaining amount. The county shall not be entitled to reimbursement from the
client, the client's estate, or from the client's relatives, except as provided in section 246.53.

new text begin (b) Regardless of the facility to which the client is committed, subdivision 1 does not
apply to the following individuals:
new text end

new text begin (1) clients who are committed as mentally ill and dangerous under section 253B.02,
subdivision 17;
new text end

new text begin (2) clients who are committed as sexual psychopathic personalities under section
253B.02, subdivision 18b; and
new text end

new text begin (3) clients who are committed as sexually dangerous persons under section 253B.02,
subdivision 18c.
new text end

new text begin For each of the individuals in clauses (1) to (3), the payment by the county to the state
shall equal ten percent of the cost of care for each day as determined by the commissioner.
new text end

Sec. 11.

Minnesota Statutes 2006, section 253B.185, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Petition and report required. new text end

new text begin (a) Within 120 days of receipt of a
preliminary determination from a court under section 609.1351, subdivision 1, a
prepetition screening report under section 253B.185, or a referral from the attorney
general or commissioner of corrections as a part of the release planning, a county attorney,
or, upon referral from the county attorney, the attorney general, shall determine whether
good cause exists to file a petition under section 253B.185, and if good cause exists, the
county attorney or attorney general shall file the petition with the court.
new text end

new text begin (b) Failure to meet the requirements of paragraph (a) does not bar filing a petition
under section 253B.185 any time good cause for such a petition exists.
new text end

new text begin (c) By February 1 of each year, the commissioner of human services shall annually
report to the respective chairs of the divisions or committees of the senate and house
of representatives that oversee human services finance regarding compliance with this
subdivision.
new text end

Sec. 12.

new text begin [254A.20] CHEMICAL USE ASSESSMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Persons arrested outside of home county. new text end

new text begin When a chemical use
assessment is required under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person
who is arrested and taken into custody by a peace officer outside of the person's county
of residence, the assessment must be completed by the person's county of residence no
later than three weeks after the assessment is initially requested. If the assessment is
not performed within this time limit, the county where the person is to be sentenced
shall perform the assessment. The county of financial responsibility is determined under
chapter 256G.
new text end

new text begin Subd. 2. new text end

new text begin Probation officer as contact. new text end

new text begin When a chemical use assessment is required
under Minnesota Rules, parts 9530.6600 to 9530.6655, for a person who is on probation
or under other correctional supervision, the assessor, either orally or in writing, shall
contact the person's probation officer to verify or supplement the information provided
by the person.
new text end

new text begin Subd. 3. new text end

new text begin Financial conflicts of interest. new text end

new text begin (a) Except as provided in paragraph (b), an
assessor conducting a chemical use assessment under Minnesota Rules, parts 9530.6600
to 9530.6655, may not have any direct or shared financial interest or referral relationship
resulting in shared financial gain with a treatment provider.
new text end

new text begin (b) A county may contract with an assessor having a conflict described in paragraph
(a) if the county documents that:
new text end

new text begin (1) the assessor is employed by a culturally specific service provider or a service
provider with a program designed to treat individuals of a specific age, sex, or sexual
preference;
new text end

new text begin (2) the county does not employ a sufficient number of qualified assessors and the
only qualified assessors available in the county have a direct or shared financial interest or
a referral relationship resulting in shared financial gain with a treatment provider; or
new text end

new text begin (3) the county social service agency has an existing contract with an assessor and
enters into a contract with that assessor to also provide treatment under circumstances
specified in the contract, provided the county retains responsibility for making the
placement decision.
new text end

new text begin An assessor under this paragraph may not place clients in treatment. The assessor
shall gather required information and provide it to the county along with any required
documentation. The county shall make all placement decisions for clients assessed by
assessors under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, except for subdivision
3, which is effective the day following final enactment.
new text end

Sec. 13.

new text begin [254A.25] DUTIES OF COMMISSIONER RELATED TO CHEMICAL
HEALTH.
new text end

new text begin The commissioner shall:
new text end

new text begin (1) annually distribute information to chemical health assessors on best practices in
assessments, including model instruments for adults and adolescents;
new text end

new text begin (2) monitor the compliance of local agencies with assessment and referral rules;
new text end

new text begin (3) develop a directory that identifies key characteristics of each licensed chemical
dependency treatment program;
new text end

new text begin (4) work with the commissioner of health to develop guidelines and training
materials for health care organizations on the use of brief interventions for alcohol and
chemical substance abuse;
new text end

new text begin (5) provide local agencies with examples of best practices for addressing needs of
persons being considered for repeat placements into publicly funded treatment;
new text end

new text begin (6) identify best practices to help local agencies monitor the progress of clients
placed in treatment;
new text end

new text begin (7) periodically provide local agencies with statewide information on treatment
outcomes; and
new text end

new text begin (8) post copies of state licensing reviews at an online location where they may be
reviewed by agencies that make client placements.
new text end

Sec. 14.

Minnesota Statutes 2006, section 254B.02, subdivision 3, is amended to read:

Subd. 3.

Reserve account.

The commissioner shall allocate money from the
reserve account to counties that, during the current fiscal year, have met or exceeded the
base level of expenditures for eligible chemical dependency services from local money.
The commissioner shall establish the base level for fiscal year 1988 as the amount of local
money used for eligible services in calendar year 1986. In later years, the base level
must be increased in the same proportion as state appropriations to implement Laws
1986, chapter 394, sections 8 to 20, are increased new text begin , except the county expenditure under
subdivision 2 shall not exceed 55 percent of the total allocation for fiscal year 2008; 50
percent in fiscal year 2009; 45 percent in fiscal year 2010; and 40 percent in fiscal year
2011. Thereafter the expenditure shall decrease by five percent each fiscal year until the
maximum county match is 15 percent new text end . The base level must be decreased if the fund balance
from which allocations are made under section 254B.02, subdivision 1, is decreased in
later years. The local match rate for the reserve account is the same rate as applied to the
initial allocation. Reserve account payments must not be included when calculating the
county adjustments made according to subdivision 2. For counties providing medical
assistance or general assistance medical care through managed care plans on January 1,
1996, the base year is fiscal year 1995. For counties beginning provision of managed
care after January 1, 1996, the base year is the most recent fiscal year before enrollment
in managed care begins. For counties providing managed care, the base level will be
increased or decreased in proportion to changes in the fund balance from which allocations
are made under subdivision 2, but will be additionally increased or decreased in proportion
to the change in county adjusted population made in subdivision 1, paragraphs (b) and (c).
Effective July 1, 2001, at the end of each biennium, any funds deposited in the reserve
account funds in excess of those needed to meet obligations incurred under this section
and sections 254B.06 and 254B.09 shall cancel to the general fund.

Sec. 15.

new text begin [256B.0615] MENTAL HEALTH CERTIFIED PEER SPECIALIST.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin Medical assistance covers mental health certified peers
specialists services, as established in subdivision 2, subject to federal approval, if provided
to recipients who are eligible for services under sections 256B.0622 and 256B.0623,
and are provided by a certified peer specialist who has completed the training under
subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner of human services shall establish a
certified peer specialists program model, which:
new text end

new text begin (1) provides nonclinical peer support counseling by certified peer specialists;
new text end

new text begin (2) provides a part of a wraparound continuum of services in conjunction with
other community mental health services;
new text end

new text begin (3) is individualized to the consumer; and
new text end

new text begin (4) promotes socialization, recovery, self-sufficiency, self-advocacy, development of
natural supports, and maintenance of skills learned in other support services.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin Peer support services may be made available to consumers
of the intensive rehabilitative mental health services under section 256B.0622 and adult
rehabilitative mental health services under section 256B.0623.
new text end

new text begin Subd. 4. new text end

new text begin Peer support specialist program providers. new text end

new text begin The commissioner shall
develop a process to certify peer support specialist programs, in accordance with the
federal guidelines, in order for the program to bill for reimbursable services. Peer support
programs may be freestanding or within existing mental health community provider
centers.
new text end

new text begin Subd. 5. new text end

new text begin Certified peer specialist training and certification. new text end

new text begin The commissioner
of human services shall develop a training and certification process for certified peer
specialists, who must be at least 21 years of age and have a high school diploma or its
equivalent. The candidates must have had a primary diagnosis of mental illness, be a
current or former consumer of mental health services, and must demonstrate leadership
and advocacy skills and a strong dedication to recovery. The training curriculum must
teach participating consumers specific skills relevant to providing peer support to other
consumers. In addition to initial training and certification, the commissioner shall develop
ongoing continuing educational workshops on pertinent issues related to peer support
counseling.
new text end

Sec. 16.

Minnesota Statutes 2006, section 256B.0622, subdivision 2, is amended to
read:

Subd. 2.

Definitions.

For purposes of this section, the following terms have the
meanings given them.

(a) "Intensive nonresidential rehabilitative mental health services" means adult
rehabilitative mental health services as defined in section 256B.0623, subdivision 2,
paragraph (a), except that these services are provided by a multidisciplinary staff using
a total team approach consistent with assertive community treatment, the Fairweather
Lodge treatment model, as defined by the standards established by the National Coalition
for Community Living, and other evidence-based practices, and directed to recipients with
a serious mental illness who require intensive services.

(b) "Intensive residential rehabilitative mental health services" means short-term,
time-limited services provided in a residential setting to recipients who are in need of
more restrictive settings and are at risk of significant functional deterioration if they do
not receive these services. Services are designed to develop and enhance psychiatric
stability, personal and emotional adjustment, self-sufficiency, and skills to live in a more
independent setting. Services must be directed toward a targeted discharge date with
specified client outcomes and must be consistent with the Fairweather Lodge treatment
model as defined in paragraph (a), and other evidence-based practices.

(c) "Evidence-based practices" are nationally recognized mental health services that
are proven by substantial research to be effective in helping individuals with serious
mental illness obtain specific treatment goals.

(d) "Overnight staff" means a member of the intensive residential rehabilitative
mental health treatment team who is responsible during hours when recipients are
typically asleep.

(e) "Treatment team" means all staff who provide services under this section
to recipients. At a minimum, this includes the clinical supervisor, mental health
professionals deleted text begin , deleted text end new text begin as defined in section 245.462, subdivision 18, clauses (1) to (5); new text end mental
health practitioners deleted text begin , and deleted text end new text begin as defined in section 245.462, subdivision 17; new text end mental health
rehabilitation workers new text begin under section 256B.0623, subdivision 5, clause (3); and certified
peer specialists under section 256B.0615 new text end .

Sec. 17.

Minnesota Statutes 2006, section 256B.0623, subdivision 5, is amended to
read:

Subd. 5.

Qualifications of provider staff.

Adult rehabilitative mental health
services must be provided by qualified individual provider staff of a certified provider
entity. Individual provider staff must be qualified under one of the following criteria:

(1) a mental health professional as defined in section 245.462, subdivision 18,
clauses (1) to (5). If the recipient has a current diagnostic assessment by a licensed
mental health professional as defined in section 245.462, subdivision 18, clauses (1) to
(5), recommending receipt of adult mental health rehabilitative services, the definition of
mental health professional for purposes of this section includes a person who is qualified
under section 245.462, subdivision 18, clause (6), and who holds a current and valid
national certification as a certified rehabilitation counselor or certified psychosocial
rehabilitation practitioner;

(2) a mental health practitioner as defined in section 245.462, subdivision 17. The
mental health practitioner must work under the clinical supervision of a mental health
professional; deleted text begin or deleted text end

new text begin (3) a certified peer specialist under section 256B.0615. The certified peer specialist
must work under the clinical supervision of a mental health professional; or
new text end

deleted text begin (3) deleted text end new text begin (4) new text end a mental health rehabilitation worker. A mental health rehabilitation worker
means a staff person working under the direction of a mental health practitioner or mental
health professional and under the clinical supervision of a mental health professional in
the implementation of rehabilitative mental health services as identified in the recipient's
individual treatment plan who:

(i) is at least 21 years of age;

(ii) has a high school diploma or equivalent;

(iii) has successfully completed 30 hours of training during the past two years in all
of the following areas: recipient rights, recipient-centered individual treatment planning,
behavioral terminology, mental illness, co-occurring mental illness and substance abuse,
psychotropic medications and side effects, functional assessment, local community
resources, adult vulnerability, recipient confidentiality; and

(iv) meets the qualifications in subitem (A) or (B):

(A) has an associate of arts degree in one of the behavioral sciences or human
services, or is a registered nurse without a bachelor's degree, or who within the previous
ten years has:

(1) three years of personal life experience with serious and persistent mental illness;

(2) three years of life experience as a primary caregiver to an adult with a serious
mental illness or traumatic brain injury; or

(3) 4,000 hours of supervised paid work experience in the delivery of mental health
services to adults with a serious mental illness or traumatic brain injury; or

(B)(1) is fluent in the non-English language or competent in the culture of the
ethnic group to which at least 20 percent of the mental health rehabilitation worker's
clients belong;

(2) receives during the first 2,000 hours of work, monthly documented individual
clinical supervision by a mental health professional;

(3) has 18 hours of documented field supervision by a mental health professional
or practitioner during the first 160 hours of contact work with recipients, and at least six
hours of field supervision quarterly during the following year;

(4) has review and cosignature of charting of recipient contacts during field
supervision by a mental health professional or practitioner; and

(5) has 40 hours of additional continuing education on mental health topics during
the first year of employment.

Sec. 18.

Minnesota Statutes 2006, section 256B.0625, is amended by adding a
subdivision to read:

new text begin Subd. 5l. new text end

new text begin Intensive mental health outpatient treatment. new text end

new text begin Medical assistance
covers intensive mental health outpatient treatment for dialectical behavioral therapy for
adults. The commissioner shall establish:
new text end

new text begin (1) certification procedures to ensure that providers of these services are qualified;
and
new text end

new text begin (2) treatment protocols including required service components and criteria for
admission, continued treatment, and discharge.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008, and subject to federal
approval. The commissioner shall notify the revisor of statutes when federal approval is
obtained.
new text end

Sec. 19.

Minnesota Statutes 2006, section 256B.0625, subdivision 20, is amended to
read:

Subd. 20.

Mental health case management.

(a) To the extent authorized by rule
of the state agency, medical assistance covers case management services to persons with
serious and persistent mental illness and children with severe emotional disturbance.
Services provided under this section must meet the relevant standards in sections 245.461
to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota
Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10.

(b) Entities meeting program standards set out in rules governing family community
support services as defined in section 245.4871, subdivision 17, are eligible for medical
assistance reimbursement for case management services for children with severe
emotional disturbance when these services meet the program standards in Minnesota
Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.

(c) Medical assistance and MinnesotaCare payment for mental health case
management shall be made on a monthly basis. In order to receive payment for an eligible
child, the provider must document at least a face-to-face contact with the child, the child's
parents, or the child's legal representative. To receive payment for an eligible adult, the
provider must document:

(1) at least a face-to-face contact with the adult or the adult's legal representative; or

(2) at least a telephone contact with the adult or the adult's legal representative and
document a face-to-face contact with the adult or the adult's legal representative within
the preceding two months.

(d) Payment for mental health case management provided by county or state staff
shall be based on the monthly rate methodology under section 256B.094, subdivision 6,
paragraph (b), with separate rates calculated for child welfare and mental health, and
within mental health, separate rates for children and adults.

(e) Payment for mental health case management provided by Indian health services
or by agencies operated by Indian tribes may be made according to this section or other
relevant federally approved rate setting methodology.

(f) Payment for mental health case management provided by vendors who contract
with a county or Indian tribe shall be based on a monthly rate negotiated by the host county
or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same
service to other payers. If the service is provided by a team of contracted vendors, the
county or tribe may negotiate a team rate with a vendor who is a member of the team. The
team shall determine how to distribute the rate among its members. No reimbursement
received by contracted vendors shall be returned to the county or tribe, except to reimburse
the county or tribe for advance funding provided by the county or tribe to the vendor.

(g) If the service is provided by a team which includes contracted vendors, tribal
staff, and county or state staff, the costs for county or state staff participation in the team
shall be included in the rate for county-provided services. In this case, the contracted
vendor, the tribal agency, and the county may each receive separate payment for services
provided by each entity in the same month. In order to prevent duplication of services,
each entity must document, in the recipient's file, the need for team case management and
a description of the roles of the team members.

deleted text begin (h) The commissioner shall calculate the nonfederal share of actual medical
assistance and general assistance medical care payments for each county, based on the
higher of calendar year 1995 or 1996, by service date, project that amount forward to 1999,
and transfer one-half of the result from medical assistance and general assistance medical
care to each county's mental health grants under section for calendar year 1999.
The annualized minimum amount added to each county's mental health grant shall be
$3,000 per year for children and $5,000 per year for adults. The commissioner may reduce
the statewide growth factor in order to fund these minimums. The annualized total amount
transferred shall become part of the base for future mental health grants for each county.
deleted text end

deleted text begin (i) deleted text end new text begin (h) new text end Notwithstanding section 256B.19, subdivision 1, the nonfederal share of
costs for mental health case management shall be provided by the recipient's county of
responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal
funds or funds used to match other federal funds. If the service is provided by a tribal
agency, the nonfederal share, if any, shall be provided by the recipient's tribe. new text begin When this
service is paid by the state without a federal share through fee-for-service, 50 percent of
the cost shall be provided by the recipient's county of responsibility.
new text end

new text begin (i) Notwithstanding any administrative rule to the contrary, prepaid medical
assistance, general assistance medical care, and MinnesotaCare include mental health case
management. When the service is provided through prepaid capitation, the nonfederal
share is paid by the state and the county pays no share.
new text end

(j) The commissioner may suspend, reduce, or terminate the reimbursement to a
provider that does not meet the reporting or other requirements of this section. The county
of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal
agency, is responsible for any federal disallowances. The county or tribe may share this
responsibility with its contracted vendors.

(k) The commissioner shall set aside a portion of the federal funds earned new text begin for county
expenditures new text end under this section to repay the special revenue maximization account under
section 256.01, subdivision 2, clause (15). The repayment is limited to:

(1) the costs of developing and implementing this section; and

(2) programming the information systems.

(l) Payments to counties and tribal agencies for case management expenditures
under this section shall only be made from federal earnings from services provided
under this section. new text begin When this service is paid by the state without a federal share through
fee-for-service, 50 percent of the cost shall be provided by the state. new text end Payments to
county-contracted vendors shall include deleted text begin both deleted text end the federal earnings new text begin , the state share, new text end and the
county share.

deleted text begin (m) Notwithstanding section , county payments for the cost of mental
health case management services provided by county or state staff shall not be made
to the commissioner of finance. For the purposes of mental health case management
services provided by county or state staff under this section, the centralized disbursement
of payments to counties under section consists only of federal earnings from
services provided under this section.
deleted text end

deleted text begin (n) deleted text end new text begin (m) new text end Case management services under this subdivision do not include therapy,
treatment, legal, or outreach services.

deleted text begin (o) deleted text end new text begin (n) new text end If the recipient is a resident of a nursing facility, intermediate care facility,
or hospital, and the recipient's institutional care is paid by medical assistance, payment
for case management services under this subdivision is limited to the last 180 days of
the recipient's residency in that facility and may not exceed more than six months in a
calendar year.

deleted text begin (p) deleted text end new text begin (o) new text end Payment for case management services under this subdivision shall not
duplicate payments made under other program authorities for the same purpose.

deleted text begin (q) By July 1, 2000, the commissioner shall evaluate the effectiveness of the changes
required by this section, including changes in number of persons receiving mental health
case management, changes in hours of service per person, and changes in caseload size.
deleted text end

deleted text begin (r) For each calendar year beginning with the calendar year 2001, the annualized
amount of state funds for each county determined under paragraph (h) shall be adjusted by
the county's percentage change in the average number of clients per month who received
case management under this section during the fiscal year that ended six months prior to
the calendar year in question, in comparison to the prior fiscal year.
deleted text end

deleted text begin (s) For counties receiving the minimum allocation of $3,000 or $5,000 described
in paragraph (h), the adjustment in paragraph (s) shall be determined so that the county
receives the higher of the following amounts:
deleted text end

deleted text begin (1) a continuation of the minimum allocation in paragraph (h); or
deleted text end

deleted text begin (2) an amount based on that county's average number of clients per month who
received case management under this section during the fiscal year that ended six months
prior to the calendar year in question, times the average statewide grant per person per
month for counties not receiving the minimum allocation.
deleted text end

deleted text begin (t) The adjustments in paragraphs (s) and (t) shall be calculated separately for
children and adults.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009, except the
amendments to paragraphs (h), (r), (s), and (t) are effective January 1, 2008.
new text end

Sec. 20.

Minnesota Statutes 2006, section 256B.0943, subdivision 8, is amended to
read:

Subd. 8.

Required preservice and continuing education.

(a) A provider entity
shall establish a plan to provide preservice and continuing education for staff. The plan
must clearly describe the type of training necessary to maintain current skills and obtain
new skills and that relates to the provider entity's goals and objectives for services offered.

(b) A provider that employs a mental health behavioral aide under this section must
require the mental health behavioral aide to complete 30 hours of preservice training. The
preservice training must include topics specified in Minnesota Rules, part 9535.4068,
subparts 1 and 2, and parent team training. The preservice training must include 15 hours
of in-person training of a mental health behavioral aide in mental health services delivery
and eight hours of parent team training. new text begin Curricula for parent team training must be
approved in advance by the commissioner. new text end Components of parent team training include:

(1) partnering with parents;

(2) fundamentals of family support;

(3) fundamentals of policy and decision making;

(4) defining equal partnership;

(5) complexities of the parent and service provider partnership in multiple service
delivery systems due to system strengths and weaknesses;

(6) sibling impacts;

(7) support networks; and

(8) community resources.

(c) A provider entity that employs a mental health practitioner and a mental health
behavioral aide to provide children's therapeutic services and supports under this section
must require the mental health practitioner and mental health behavioral aide to complete
20 hours of continuing education every two calendar years. The continuing education
must be related to serving the needs of a child with emotional disturbance in the child's
home environment and the child's family. The topics covered in orientation and training
must conform to Minnesota Rules, part 9535.4068.

(d) The provider entity must document the mental health practitioner's or mental
health behavioral aide's annual completion of the required continuing education. The
documentation must include the date, subject, and number of hours of the continuing
education, and attendance records, as verified by the staff member's signature, job
title, and the instructor's name. The provider entity must keep documentation for each
employee, including records of attendance at professional workshops and conferences,
at a central location and in the employee's personnel file.

Sec. 21.

Minnesota Statutes 2006, section 256B.0945, subdivision 4, is amended to
read:

Subd. 4.

Payment rates.

(a) Notwithstanding sections 256B.19 and 256B.041,
payments to counties for residential services provided by a residential facility shall only
be made of federal earnings for services provided under this section, and the nonfederal
share of costs for services provided under this section shall be paid by the county from
sources other than federal funds or funds used to match other federal funds. Payment to
counties for services provided according to this section shall be a proportion of the per
day contract rate that relates to rehabilitative mental health services and shall not include
payment for costs or services that are billed to the IV-E program as room and board.

(b) new text begin Per diem rates paid to providers under this section by prepaid plans shall be the
proportion of the per-day contract rate that relates to rehabilitative mental health services
and shall not include payment for group foster care costs or services that are billed to the
county of financial responsibility.
new text end

new text begin (c) new text end The commissioner shall set aside a portion not to exceed five percent of the
federal funds earned new text begin for county expenditures new text end under this section to cover the state costs of
administering this section. Any unexpended funds from the set-aside shall be distributed
to the counties in proportion to their earnings under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 22.

Minnesota Statutes 2006, section 256B.69, subdivision 4, is amended to read:

Subd. 4.

Limitation of choice.

(a) The commissioner shall develop criteria to
determine when limitation of choice may be implemented in the experimental counties.
The criteria shall ensure that all eligible individuals in the county have continuing access
to the full range of medical assistance services as specified in subdivision 6.

(b) The commissioner shall exempt the following persons from participation in the
project, in addition to those who do not meet the criteria for limitation of choice:

(1) persons eligible for medical assistance according to section 256B.055,
subdivision 1;

(2) persons eligible for medical assistance due to blindness or disability as
determined by the Social Security Administration or the state medical review team, unless:

(i) they are 65 years of age or older; or

(ii) they reside in Itasca County or they reside in a county in which the commissioner
conducts a pilot project under a waiver granted pursuant to section 1115 of the Social
Security Act;

(3) recipients who currently have private coverage through a health maintenance
organization;

(4) recipients who are eligible for medical assistance by spending down excess
income for medical expenses other than the nursing facility per diem expense;

(5) recipients who receive benefits under the Refugee Assistance Program,
established under United States Code, title 8, section 1522(e);

(6) children who are both determined to be severely emotionally disturbed and
receiving case management services according to section 256B.0625, subdivision 20 new text begin ,
except children who are eligible for and who decline enrollment in an approved preferred
integrated network under section 245.4682 new text end ;

(7) adults who are both determined to be seriously and persistently mentally ill and
received case management services according to section 256B.0625, subdivision 20;

(8) persons eligible for medical assistance according to section 256B.057,
subdivision 10; and

(9) persons with access to cost-effective employer-sponsored private health
insurance or persons enrolled in a non-Medicare individual health plan determined to be
cost-effective according to section 256B.0625, subdivision 15.

Children under age 21 who are in foster placement may enroll in the project on an elective
basis. Individuals excluded under clauses (1), (6), and (7) may choose to enroll on an
elective basis. The commissioner may enroll recipients in the prepaid medical assistance
program for seniors who are (1) age 65 and over, and (2) eligible for medical assistance by
spending down excess income.

(c) The commissioner may allow persons with a one-month spenddown who are
otherwise eligible to enroll to voluntarily enroll or remain enrolled, if they elect to prepay
their monthly spenddown to the state.

(d) The commissioner may require those individuals to enroll in the prepaid medical
assistance program who otherwise would have been excluded under paragraph (b), clauses
(1), (3), and (8), and under Minnesota Rules, part 9500.1452, subpart 2, items H, K, and L.

(e) Before limitation of choice is implemented, eligible individuals shall be notified
and after notification, shall be allowed to choose only among demonstration providers.
The commissioner may assign an individual with private coverage through a health
maintenance organization, to the same health maintenance organization for medical
assistance coverage, if the health maintenance organization is under contract for medical
assistance in the individual's county of residence. After initially choosing a provider,
the recipient is allowed to change that choice only at specified times as allowed by the
commissioner. If a demonstration provider ends participation in the project for any reason,
a recipient enrolled with that provider must select a new provider but may change providers
without cause once more within the first 60 days after enrollment with the second provider.

(f) An infant born to a woman who is eligible for and receiving medical assistance
and who is enrolled in the prepaid medical assistance program shall be retroactively
enrolled to the month of birth in the same managed care plan as the mother once the
child is enrolled in medical assistance unless the child is determined to be excluded from
enrollment in a prepaid plan under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 23.

Minnesota Statutes 2006, section 256B.69, subdivision 5g, is amended to read:

Subd. 5g.

Payment for covered services.

For services rendered on or after January
1, 2003, the total payment made to managed care plans for providing covered services
under the medical assistance and general assistance medical care programs is reduced by
.5 percent from their current statutory rates. This provision excludes payments for nursing
home services, home and community-based waivers, deleted text begin and deleted text end payments to demonstration
projects for persons with disabilities new text begin , and mental health services added as covered benefits
after December 31, 2007 new text end .

Sec. 24.

Minnesota Statutes 2006, section 256B.69, subdivision 5h, is amended to read:

Subd. 5h.

Payment reduction.

In addition to the reduction in subdivision 5g,
the total payment made to managed care plans under the medical assistance program is
reduced 1.0 percent for services provided on or after October 1, 2003, and an additional
1.0 percent for services provided on or after January 1, 2004. This provision excludes
payments for nursing home services, home and community-based waivers, deleted text begin and deleted text end payments
to demonstration projects for persons with disabilities new text begin , and mental health services added as
covered benefits after December 31, 2007 new text end .

Sec. 25.

Minnesota Statutes 2006, section 256B.763, is amended to read:

256B.763 CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.

(a) For services defined in paragraph (b) and rendered on or after July 1, 2007,
payment rates shall be increased by 23.7 percent over the rates in effect on January 1,
2006, for:

(1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;

(2) community mental health centers under section 256B.0625, subdivision 5; and

(3) mental health clinics and centers certified under Minnesota Rules, parts
9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated
as essential community providers under section 62Q.19.

(b) This increase applies to group skills training when provided as a component of
children's therapeutic services and support, psychotherapy, medication management,
evaluation and management, diagnostic assessment, explanation of findings, psychological
testing, neuropsychological services, direction of behavioral aides, and inpatient
consultation.

(c) This increase does not apply to rates that are governed by section 256B.0625,
subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are
negotiated with the county, rates that are established by the federal government, or rates
that increased between January 1, 2004, and January 1, 2005.

(d) The commissioner shall adjust rates paid to prepaid health plans under contract
with the commissioner to reflect the rate increases provided in deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) new text begin ,
(e), and (f) new text end . The prepaid health plan must pass this rate increase to the providers identified
in deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) new text begin , (e), (f), and (g) new text end .

new text begin (e) Payment rates shall be increased by 23.7 percent over the rates in effect on
January 1, 2006, for:
new text end

new text begin (1) medication education services provided on or after January 1, 2008, by adult
rehabilitative mental health services providers certified under section 256B.0623; and
new text end

new text begin (2) mental health behavioral aide services provided on or after January 1, 2008, by
children's therapeutic services and support providers certified under section 256B.0943.
new text end

new text begin (f) For services defined in paragraph (b) and rendered on or after January 1, 2008, by
children's therapeutic services and support providers certified under section 256B.0943
and not already included in paragraph (a), payment rates shall be increased by 23.7 percent
over the rates in effect on January 1, 2006.
new text end

new text begin (g) Payment rates shall be increased by 2.3 percent over the rates in effect on
December 31, 2007, for individual and family skills training provided on or after January
1, 2008, by children's therapeutic services and support providers certified under section
256B.0943.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 26.

Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:

Subd. 4.

General assistance medical care; services.

(a)(i) For a person who is
eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical
care covers, except as provided in paragraph (c):

(1) inpatient hospital services;

(2) outpatient hospital services;

(3) services provided by Medicare certified rehabilitation agencies;

(4) prescription drugs and other products recommended through the process
established in section 256B.0625, subdivision 13;

(5) equipment necessary to administer insulin and diagnostic supplies and equipment
for diabetics to monitor blood sugar level;

(6) eyeglasses and eye examinations provided by a physician or optometrist;

(7) hearing aids;

(8) prosthetic devices;

(9) laboratory and X-ray services;

(10) physician's services;

(11) medical transportation except special transportation;

(12) chiropractic services as covered under the medical assistance program;

(13) podiatric services;

(14) dental services as covered under the medical assistance program;

(15) deleted text begin outpatient services provided by a mental health center or clinic that is under
contract with the county board and is established under section 245.62 deleted text end new text begin mental health
services covered under chapter 256B new text end ;

deleted text begin (16) day treatment services for mental illness provided under contract with the
county board;
deleted text end

deleted text begin (17) deleted text end new text begin (16) new text end prescribed medications for persons who have been diagnosed as mentally
ill as necessary to prevent more restrictive institutionalization;

deleted text begin (18) psychological services, deleted text end new text begin (17) new text end medical supplies and equipment, and Medicare
premiums, coinsurance and deductible payments;

deleted text begin (19) deleted text end new text begin (18) new text end medical equipment not specifically listed in this paragraph when the use
of the equipment will prevent the need for costlier services that are reimbursable under
this subdivision;

deleted text begin (20) deleted text end new text begin (19) new text end services performed by a certified pediatric nurse practitioner, a
certified family nurse practitioner, a certified adult nurse practitioner, a certified
obstetric/gynecological nurse practitioner, a certified neonatal nurse practitioner, or a
certified geriatric nurse practitioner in independent practice, if (1) the service is otherwise
covered under this chapter as a physician service, (2) the service provided on an inpatient
basis is not included as part of the cost for inpatient services included in the operating
payment rate, and (3) the service is within the scope of practice of the nurse practitioner's
license as a registered nurse, as defined in section 148.171;

deleted text begin (21) deleted text end new text begin (20) new text end services of a certified public health nurse or a registered nurse practicing
in a public health nursing clinic that is a department of, or that operates under the direct
authority of, a unit of government, if the service is within the scope of practice of the
public health nurse's license as a registered nurse, as defined in section 148.171; new text begin and
new text end

deleted text begin (22) deleted text end new text begin (21) new text end telemedicine consultations, to the extent they are covered under section
256B.0625, subdivision 3b deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (23) mental health telemedicine and psychiatric consultation as covered under
section deleted text begin 256B.0625, subdivisions 46 and 48 deleted text end .
deleted text end

(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3,
paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited
to inpatient hospital services, including physician services provided during the inpatient
hospital stay. A $1,000 deductible is required for each inpatient hospitalization.

(b) Effective August 1, 2005, sex reassignment surgery is not covered under this
subdivision.

(c) In order to contain costs, the commissioner of human services shall select
vendors of medical care who can provide the most economical care consistent with high
medical standards and shall where possible contract with organizations on a prepaid
capitation basis to provide these services. The commissioner shall consider proposals by
counties and vendors for prepaid health plans, competitive bidding programs, block grants,
or other vendor payment mechanisms designed to provide services in an economical
manner or to control utilization, with safeguards to ensure that necessary services are
provided. Before implementing prepaid programs in counties with a county operated or
affiliated public teaching hospital or a hospital or clinic operated by the University of
Minnesota, the commissioner shall consider the risks the prepaid program creates for the
hospital and allow the county or hospital the opportunity to participate in the program in a
manner that reflects the risk of adverse selection and the nature of the patients served by
the hospital, provided the terms of participation in the program are competitive with the
terms of other participants considering the nature of the population served. Payment for
services provided pursuant to this subdivision shall be as provided to medical assistance
vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For
payments made during fiscal year 1990 and later years, the commissioner shall consult
with an independent actuary in establishing prepayment rates, but shall retain final control
over the rate methodology.

(d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following
co-payments for services provided on or after October 1, 2003:

(1) $25 for eyeglasses;

(2) $25 for nonemergency visits to a hospital-based emergency room;

(3) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness; and

(4) 50 percent coinsurance on restorative dental services.

(e) Co-payments shall be limited to one per day per provider for nonpreventive visits,
eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of
general assistance medical care are responsible for all co-payments in this subdivision.
The general assistance medical care reimbursement to the provider shall be reduced by
the amount of the co-payment, except that reimbursement for prescription drugs shall not
be reduced once a recipient has reached the $12 per month maximum for prescription
drug co-payments. The provider collects the co-payment from the recipient. Providers
may not deny services to recipients who are unable to pay the co-payment, except as
provided in paragraph (f).

(f) If it is the routine business practice of a provider to refuse service to an individual
with uncollected debt, the provider may include uncollected co-payments under this
section. A provider must give advance notice to a recipient with uncollected debt before
services can be denied.

(g) Any county may, from its own resources, provide medical payments for which
state payments are not made.

(h) Chemical dependency services that are reimbursed under chapter 254B must not
be reimbursed under general assistance medical care.

(i) The maximum payment for new vendors enrolled in the general assistance
medical care program after the base year shall be determined from the average usual and
customary charge of the same vendor type enrolled in the base year.

(j) The conditions of payment for services under this subdivision are the same as the
conditions specified in rules adopted under chapter 256B governing the medical assistance
program, unless otherwise provided by statute or rule.

(k) Inpatient and outpatient payments shall be reduced by five percent, effective July
1, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003,
and incorporated by reference in paragraph (i).

(l) Payments for all other health services except inpatient, outpatient, and pharmacy
services shall be reduced by five percent, effective July 1, 2003.

(m) Payments to managed care plans shall be reduced by five percent for services
provided on or after October 1, 2003.

(n) A hospital receiving a reduced payment as a result of this section may apply the
unpaid balance toward satisfaction of the hospital's bad debts.

(o) Fee-for-service payments for nonpreventive visits shall be reduced by $3
for services provided on or after January 1, 2006. For purposes of this subdivision, a
visit means an episode of service which is required because of a recipient's symptoms,
diagnosis, or established illness, and which is delivered in an ambulatory setting by
a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse,
audiologist, optician, or optometrist.

(p) Payments to managed care plans shall not be increased as a result of the removal
of the $3 nonpreventive visit co-payment effective January 1, 2006.

new text begin (q) Payments for mental health services added as covered benefits after December
31, 2007, are not subject to the reductions in paragraphs (i), (k), (l), and (m).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008, except mental health
case management under paragraph (a), clause (i), item (15), is effective January 1, 2009.
new text end

Sec. 27.

Minnesota Statutes 2006, section 256I.04, subdivision 3, is amended to read:

Subd. 3.

Moratorium on the development of group residential housing beds.

(a)
County agencies shall not enter into agreements for new group residential housing beds
with total rates in excess of the MSA equivalent rate except: (1) for group residential
housing establishments licensed under Minnesota Rules, parts 9525.0215 to 9525.0355,
provided the facility is needed to meet the census reduction targets for persons with
developmental disabilities at regional treatment centers; (2) to ensure compliance with
the federal Omnibus Budget Reconciliation Act alternative disposition plan requirements
for inappropriately placed persons with developmental disabilities or mental illness;
(3) up to 80 beds in a single, specialized facility located in Hennepin County that will
provide housing for chronic inebriates who are repetitive users of detoxification centers
and are refused placement in emergency shelters because of their state of intoxication,
and planning for the specialized facility must have been initiated before July 1, 1991, in
anticipation of receiving a grant from the Housing Finance Agency under section 462A.05,
subdivision 20a, paragraph (b); (4) notwithstanding the provisions of subdivision 2a, for
up to 190 supportive housing units in Anoka, Dakota, Hennepin, or Ramsey County
for homeless adults with a mental illness, a history of substance abuse, or human
immunodeficiency virus or acquired immunodeficiency syndrome. For purposes of this
section, "homeless adult" means a person who is living on the street or in a shelter or
discharged from a regional treatment center, community hospital, or residential treatment
program and has no appropriate housing available and lacks the resources and support
necessary to access appropriate housing. At least 70 percent of the supportive housing
units must serve homeless adults with mental illness, substance abuse problems, or human
immunodeficiency virus or acquired immunodeficiency syndrome who are about to be
or, within the previous six months, has been discharged from a regional treatment center,
or a state-contracted psychiatric bed in a community hospital, or a residential mental
health or chemical dependency treatment program. If a person meets the requirements of
subdivision 1, paragraph (a), and receives a federal or state housing subsidy, the group
residential housing rate for that person is limited to the supplementary rate under section
256I.05, subdivision 1a, and is determined by subtracting the amount of the person's
countable income that exceeds the MSA equivalent rate from the group residential housing
supplementary rate. A resident in a demonstration project site who no longer participates
in the demonstration program shall retain eligibility for a group residential housing
payment in an amount determined under section 256I.06, subdivision 8, using the MSA
equivalent rate. Service funding under section 256I.05, subdivision 1a, will end June 30,
1997, if federal matching funds are available and the services can be provided through a
managed care entity. If federal matching funds are not available, then service funding will
continue under section 256I.05, subdivision 1a; deleted text begin or (6) deleted text end new text begin (5) new text end for group residential housing
beds in settings meeting the requirements of subdivision 2a, clauses (1) and (3), which
are used exclusively for recipients receiving home and community-based waiver services
under sections 256B.0915, 256B.092, subdivision 5, 256B.093, and 256B.49, and who
resided in a nursing facility for the six months immediately prior to the month of entry
into the group residential housing setting. The group residential housing rate for these
beds must be set so that the monthly group residential housing payment for an individual
occupying the bed when combined with the nonfederal share of services delivered under
the waiver for that person does not exceed the nonfederal share of the monthly medical
assistance payment made for the person to the nursing facility in which the person resided
prior to entry into the group residential housing establishment. The rate may not exceed
the MSA equivalent rate plus $426.37 for any case new text begin ; (6) for a new 65-bed facility in Crow
Wing County that will serve chemically dependent persons, operated by a group residential
housing provider that currently operates a 304-bed facility in Minneapolis, and a 44-bed
facility in Duluth; (7) for two ten-bed group residential housing facilities in Ramsey
County and Hennepin County, which were established as part of a pilot project under
Laws 2006, chapter 282, section 16, which provide community support to individuals who
have been living homeless for at least one year; provide 24-hour supervision; and provide
on-site mental health services, which focus on the mental health needs of individuals who
have lived unsheltered; or (8) for an additional two beds, resulting in a total of 32 beds, for
a facility located in Hennepin County providing services for recovering and chemically
dependent men that has had a group residential housing contract with the county and has
been licensed as a board and lodge facility with special services since 1980 new text end .

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 28.

Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision
to read:

new text begin Subd. 1h. new text end

new text begin Supplementary rate for certain facilities; Crow Wing County.
new text end

new text begin Notwithstanding the provisions of this section, beginning July 1, 2007, a county agency
shall negotiate a supplementary rate in addition to the rate specified in subdivision 1, not
to exceed $700 per month, including any legislatively authorized inflationary adjustments,
for a new 65-bed facility in Crow Wing County that will serve chemically dependent
persons operated by a group residential housing provider that currently operates a 304-bed
facility in Minneapolis and a 44-bed facility in Duluth which opened in January of 2006.
new text end

Sec. 29.

Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision
to read:

new text begin Subd. 1i. new text end

new text begin Supplemental rate for certain facilities; Hennepin and Ramsey
Counties. new text end

new text begin (a) Notwithstanding the provisions of this section, beginning July 1, 2007, a
county agency shall negotiate a supplemental service rate in addition to the rate specified
in subdivision 1, not to exceed $700 per month or the existing monthly rate, whichever
is higher, including any legislatively authorized inflationary adjustments, for a group
residential housing provider that operates two ten-bed facilities, one located in Hennepin
County and one located in Ramsey County, which provide community support and serve
the mental health needs of individuals who have chronically lived unsheltered, providing
24-hour per day supervision.
new text end

new text begin (b) An individual who has lived in one of the facilities under paragraph (a), who
is being transitioned to independent living as part of the program plan continues to be
eligible for group residential housing and the supplemental service rate negotiated with
the county under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 30.

Minnesota Statutes 2006, section 256I.05, is amended by adding a subdivision
to read:

new text begin Subd. 1j. new text end

new text begin Supplementary rate for certain facilities serving chemically dependent
males. new text end

new text begin Notwithstanding the provisions of this section, beginning July 1, 2007, a county
agency shall negotiate a supplementary rate in addition to the rate specified in subdivision
1, not to exceed $740 per month, including any legislatively authorized inflationary
adjustments, for a group residential housing provider that:
new text end

new text begin (1) is located in Ramsey County and has had a group residential housing contract
with the county since 1982 and has been licensed as a board and lodge facility with special
services since 1979; and
new text end

new text begin (2) serves recovering and chemically dependent males, providing 24-hour-a-day
supervision.
new text end

Sec. 31.

Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:

Subdivision 1.

Covered health services.

For individuals under section 256L.04,
subdivision 7, with income no greater than 75 percent of the federal poverty guidelines
or for families with children under section 256L.04, subdivision 1, all subdivisions of
this section apply. "Covered health services" means the health services reimbursed
under chapter 256B, with the exception of inpatient hospital services, special education
services, private duty nursing services, adult dental care services other than services
covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency
medical transportation services, personal care assistant and case management services,
nursing home or intermediate care facilities services, inpatient mental health services,
and chemical dependency services. deleted text begin Outpatient mental health services covered under the
MinnesotaCare program are limited to diagnostic assessments, psychological testing,
explanation of findings, mental health telemedicine, psychiatric consultation, medication
management by a physician, day treatment, partial hospitalization, and individual, family,
and group psychotherapy.
deleted text end

No public funds shall be used for coverage of abortion under MinnesotaCare
except where the life of the female would be endangered or substantial and irreversible
impairment of a major bodily function would result if the fetus were carried to term; or
where the pregnancy is the result of rape or incest.

Covered health services shall be expanded as provided in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008, except coverage for
mental health case management under subdivision 1 is effective January 1, 2009.
new text end

Sec. 32.

Minnesota Statutes 2006, section 256L.035, is amended to read:

256L.035 LIMITED BENEFITS COVERAGE FOR CERTAIN SINGLE
ADULTS AND HOUSEHOLDS WITHOUT CHILDREN.

(a) "Covered health services" for individuals under section 256L.04, subdivision
7, with income above 75 percent, but not exceeding 175 percent, of the federal poverty
guideline means:

(1) inpatient hospitalization benefits with a ten percent co-payment up to $1,000 and
subject to an annual limitation of $10,000;

(2) physician services provided during an inpatient stay; and

(3) physician services not provided during an inpatient stay; outpatient hospital
services; freestanding ambulatory surgical center services; chiropractic services; lab and
diagnostic services; diabetic supplies and equipment; new text begin mental health services as covered
under chapter 256B; new text end and prescription drugs; subject to the following co-payments:

(i) $50 co-pay per emergency room visit;

(ii) $3 co-pay per prescription drug; and

(iii) $5 co-pay per nonpreventive visit.

The services covered under this section may be provided by a physician, physician
ancillary, chiropractor, psychologist, deleted text begin or deleted text end licensed independent clinical social worker new text begin , or
other mental health providers covered under chapter 256B new text end if the services are within the
scope of practice of that health care professional.

For purposes of this section, "a visit" means an episode of service which is required
because of a recipient's symptoms, diagnosis, or established illness, and which is delivered
in an ambulatory setting by any health care provider identified in this paragraph.

Enrollees are responsible for all co-payments in this section.

(b) Reimbursement to the providers shall be reduced by the amount of the
co-payment, except that reimbursement for prescription drugs shall not be reduced once a
recipient has reached the $20 per month maximum for prescription drug co-payments.
The provider collects the co-payment from the recipient. Providers may not deny services
to recipients who are unable to pay the co-payment, except as provided in paragraph (c).

(c) If it is the routine business practice of a provider to refuse service to an individual
with uncollected debt, the provider may include uncollected co-payments under this
section. A provider must give advance notice to a recipient with uncollected debt before
services can be denied.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008, except coverage
for mental health case management under paragraph (a), clause (3), is effective January
1, 2009.
new text end

Sec. 33.

Minnesota Statutes 2006, section 256L.12, subdivision 9a, is amended to read:

Subd. 9a.

Rate setting; ratable reduction.

For services rendered on or after
October 1, 2003, the total payment made to managed care plans under the MinnesotaCare
program is reduced 1.0 percent. new text begin This provision excludes payments for mental health
services added as covered benefits after December 31, 2007.
new text end

Sec. 34.

Minnesota Statutes 2006, section 609.115, subdivision 8, is amended to read:

Subd. 8.

Chemical use assessment required.

(a) If a person is convicted of a
felony, the probation officer shall determine in the report prepared under subdivision 1
whether or not alcohol or drug use was a contributing factor to the commission of the
offense. If so, the report shall contain the results of a chemical use assessment conducted
in accordance with this subdivision. The probation officer shall make an appointment for
the defendant to undergo the chemical use assessment if so indicated.

(b) The chemical use assessment report must include a recommended level of
care for the defendant in accordance with the criteria contained in rules adopted by the
commissioner of human services under section 254A.03, subdivision 3. The assessment
must be conducted by an assessor qualified under rules adopted by the commissioner of
human services under section 254A.03, subdivision 3. An assessor providing a chemical
use assessment may not have any direct or shared financial interest or referral relationship
resulting in shared financial gain with a treatment provider new text begin , except as authorized under
section 254A.20, subdivision 3 new text end . If an independent assessor is not available, the probation
officer may use the services of an assessor authorized to perform assessments for the
county social services agency under a variance granted under rules adopted by the
commissioner of human services under section 254A.03, subdivision 3.

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2006, section 609.115, subdivision 9, is amended to read:

Subd. 9.

Compulsive gambling assessment required.

(a) If a person is convicted
of theft under section 609.52, embezzlement of public funds under section 609.54, or
forgery under section 609.625, 609.63, or 609.631, the probation officer shall determine in
the report prepared under subdivision 1 whether or not compulsive gambling contributed
to the commission of the offense. If so, the report shall contain the results of a compulsive
gambling assessment conducted in accordance with this subdivision. The probation officer
shall make an appointment for the offender to undergo the assessment if so indicated.

(b) The compulsive gambling assessment report must include a recommended level
of treatment for the offender if the assessor concludes that the offender is in need of
compulsive gambling treatment. The assessment must be conducted by an assessor
qualified new text begin either new text end under deleted text begin section 245.98, subdivision 2a deleted text end new text begin Minnesota Rules, part 9585.0040,
subpart 1, item C, or qualifications determined to be equivalent by the commissioner new text end , to
perform these assessments or to provide compulsive gambling treatment. An assessor
providing a compulsive gambling assessment may not have any direct or shared financial
interest or referral relationship resulting in shared financial gain with a treatment provider.
If an independent assessor is not available, the probation officer may use the services of an
assessor with a financial interest or referral relationship as authorized under rules adopted
by the commissioner of human services under section 245.98, subdivision 2a.

(c) The commissioner of human services shall reimburse the assessor for deleted text begin the
costs associated with a deleted text end new text begin each new text end compulsive gambling assessment at a rate established
by the commissioner deleted text begin up to a maximum of $100 for each assessment deleted text end . new text begin To the extent
practicable, the commissioner shall standardize reimbursement rates for assessments. new text end The
commissioner shall reimburse deleted text begin these costs deleted text end new text begin the assessor new text end after receiving written verification
from the probation officer that the assessment was performed and found acceptable.

Sec. 36.

Laws 2005, chapter 98, article 3, section 25, is amended to read:

Sec. 25. REPEALER.

Minnesota Statutes 2004, sections 245.713, deleted text begin subdivisions 2 and deleted text end new text begin subdivision new text end 4;
245.716; and 626.5551, subdivision 4, are repealed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from August 1, 2005.
new text end

Sec. 37. new text begin RECOMMENDATIONS ON CHANGING CONSOLIDATED
CHEMICAL DEPENDENCY TREATMENT FUND.
new text end

new text begin The commissioner of human services shall report to the legislature by January
15, 2008, on recommendations which analyze the merits of changing the statutory
maintenance of effort provisions in the chemical dependency treatment fund and the
feasibility of posting treatment program peer reviews at an online location where they can
be viewed by agencies that make client placements.
new text end

Sec. 38. new text begin PLAN FOR IMPROVING COMMUNITY-BASED SUBSTANCE
ABUSE TREATMENT.
new text end

new text begin The commissioner of human services shall present a plan to the legislature by
January 15, 2008, for improving the availability of community-based substance abuse
treatment.
new text end

Sec. 39. new text begin SOCIAL AND ECONOMIC COSTS OF GAMBLING.
new text end

new text begin Subdivision 1. new text end

new text begin Report. new text end

new text begin The commissioner of human services, in consultation with
the state affiliate of the National Council on Problem Gambling, stakeholders, and licensed
vendors, shall prepare a report that provides a process and funding mechanism to study the
issues in subdivisions 2 and 3. The commissioner, in consultation with the state affiliate
of the National Council on Problem Gambling, stakeholders, and licensed vendors, shall
include in the report potential financial commitments made by stakeholders and others, in
order to fund the study. The report is due to the legislative committees having jurisdiction
over compulsive gambling issues by December 1, 2007.
new text end

new text begin Subd. 2. new text end

new text begin Issues to be addressed. new text end

new text begin The study must address:
new text end

new text begin (1) state, local, and tribal government policies and practices in Minnesota to legalize
or prohibit gambling;
new text end

new text begin (2) the relationship between gambling and crime in Minnesota, including: (i) the
relationship between gambling and overall crime rates; (ii) the relationship between
gambling and crime rates for specific crimes, such as forgery, domestic abuse, child
neglect and abuse, alcohol and drug offenses, and youth crime; and (iii) enforcement
and regulation practices that are intended to address the relationship between gambling
and levels of crime;
new text end

new text begin (3) the relationship between expanded gambling and increased rates of problem
gambling in Minnesota, including the impact of pathological or problem gambling on
individuals, families, businesses, social institutions, and the economy;
new text end

new text begin (4) the social impact of gambling on individuals, families, businesses, and social
institutions in Minnesota, including an analysis of the relationship between gambling and
depression, abuse, divorce, homelessness, suicide, and bankruptcy;
new text end

new text begin (5) the economic impact of gambling on state, local, and tribal economies in
Minnesota; and
new text end

new text begin (6) any other issues deemed necessary in assessing the social and economic impact
of gambling in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Quantification of social and economic impact. new text end

new text begin The study shall quantify
the social and economic impact on both (1) state, local, and tribal governments in
Minnesota, and (2) Minnesota's communities and social institutions, including individuals,
families, and businesses within those communities and institutions.
new text end

Sec. 40. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall change the references to sections "245.487 to
245.4887" wherever it appears in statutes or rules to sections "245.487 to 245.4889."
new text end

new text begin (b) The revisor of statutes shall correct all internal references that are necessary
from the relettering in section 18.
new text end

Sec. 41. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 9585.0030, new text end new text begin is repealed.
new text end

ARTICLE 7

DEPARTMENT OF HEALTH

Section 1.

Minnesota Statutes 2006, section 62J.692, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the following definitions
apply:

(a) "Accredited clinical training" means the clinical training provided by a
medical education program that is accredited through an organization recognized by the
Department of Education, the Centers for Medicare and Medicaid Services, or another
national body who reviews the accrediting organizations for multiple disciplines and
whose standards for recognizing accrediting organizations are reviewed and approved by
the commissioner of health in consultation with the Medical Education and Research
Advisory Committee.

(b) "Commissioner" means the commissioner of health.

(c) "Clinical medical education program" means the accredited clinical training of
physicians (medical students and residents), doctor of pharmacy practitioners, doctors
of chiropractic, dentists, advanced practice nurses (clinical nurse specialists, certified
registered nurse anesthetists, nurse practitioners, and certified nurse midwives), and
physician assistants.

(d) "Sponsoring institution" means a hospital, school, or consortium located in
Minnesota that sponsors and maintains primary organizational and financial responsibility
for a clinical medical education program in Minnesota and which is accountable to the
accrediting body.

(e) "Teaching institution" means a hospital, medical center, clinic, or other
organization that conducts a clinical medical education program in Minnesota.

(f) "Trainee" means a student or resident involved in a clinical medical education
program.

(g) "Eligible trainee deleted text begin FTEs deleted text end new text begin FTE's new text end " means the number of trainees, as measured by
full-time equivalent counts, that are at training sites located in Minnesota with deleted text begin a deleted text end new text begin currently
active new text end medical assistance deleted text begin provider number deleted text end new text begin enrollment status and a National Provider
Identification (NPI) number new text end where training occurs in either an inpatient or ambulatory
patient care setting and where the training is funded, in part, by patient care revenues. new text begin
Training that occurs in nursing facility settings is not eligible for funding under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 62J.692, subdivision 4, is amended to read:

Subd. 4.

Distribution of funds.

(a) new text begin Following the distribution described under
paragraph (b), new text end the commissioner shall annually distribute deleted text begin 90 percent of deleted text end new text begin the new text end available
medical education funds to all qualifying applicants based on a distribution formula that
reflects a summation of two factors:

(1) deleted text begin an education factor, which is determined by the total number of eligible trainee
FTEs and the total statewide average costs per trainee, by type of trainee, in each clinical
medical education program; and
deleted text end

deleted text begin (2) deleted text end a public program volume factor, which is determined by the total volume of
public program revenue received by each training site as a percentage of all public
program revenue received by all training sites in the fund pool new text begin ; and
new text end

new text begin (2) a supplemental public program volume factor, which is determined by providing
a supplemental payment of 20 percent of each training site's grant to training sites whose
public program revenue accounted for at least 0.98 percent of the total public program
revenue received by all eligible training sites. Grants to training sites whose public
program revenue accounted for less than 0.98 percent of the total public program revenue
received by all eligible training sites shall be reduced by an amount equal to the total
value of the supplemental payment new text end .

deleted text begin In this formula, the education factor is weighted at 67 percent and the public program
volume factor is weighted at 33 percent.
deleted text end

Public program revenue for the distribution formula includes revenue from medical
assistance, prepaid medical assistance, general assistance medical care, and prepaid
general assistance medical care. Training sites that receive no public program revenue
are ineligible for funds available under this deleted text begin paragraph deleted text end new text begin subdivision new text end . new text begin For purposes of
determining training-site level grants to be distributed under paragraph (a), new text end total statewide
average costs per trainee for medical residents is based on audited clinical training costs
per trainee in primary care clinical medical education programs for medical residents.
Total statewide average costs per trainee for dental residents is based on audited clinical
training costs per trainee in clinical medical education programs for dental students. Total
statewide average costs per trainee for pharmacy residents is based on audited clinical
training costs per trainee in clinical medical education programs for pharmacy students.

(b) deleted text begin The commissioner shall annually distribute ten percent of total available medical
education funds to all qualifying applicants based on the percentage received by each
applicant under paragraph (a). These funds are to be used to offset clinical education
costs at eligible clinical training sites based on criteria developed by the clinical medical
education program. Applicants may choose to distribute funds allocated under this
paragraph based on the distribution formula described in paragraph (a) deleted text end new text begin $3,550,000 of the
available medical education funds shall be distributed as follows:
new text end

new text begin (1) $1,475,000 to the University of Minnesota Medical Center-Fairview; and
new text end

new text begin (2) $2,075,000 to the University of Minnesota School of Dentistry new text end .

(c) Funds distributed shall not be used to displace current funding appropriations
from federal or state sources.

(d) Funds shall be distributed to the sponsoring institutions indicating the amount
to be distributed to each of the sponsor's clinical medical education programs based on
the criteria in this subdivision and in accordance with the commissioner's approval letter.
Each clinical medical education program must distribute funds allocated under paragraph
(a) to the training sites as specified in the commissioner's approval letter. Sponsoring
institutions, which are accredited through an organization recognized by the Department
of Education or the Centers for Medicare and Medicaid Services, may contract directly
with training sites to provide clinical training. To ensure the quality of clinical training,
those accredited sponsoring institutions must:

(1) develop contracts specifying the terms, expectations, and outcomes of the clinical
training conducted at sites; and

(2) take necessary action if the contract requirements are not met. Action may
include the withholding of payments under this section or the removal of students from
the site.

(e) Any funds not distributed in accordance with the commissioner's approval letter
must be returned to the medical education and research fund within 30 days of receiving
notice from the commissioner. The commissioner shall distribute returned funds to the
appropriate training sites in accordance with the commissioner's approval letter.

(f) deleted text begin The commissioner shall distribute by June 30 of each year an amount equal to
the funds transferred under subdivision 10, plus five percent interest to the University of
Minnesota Board of Regents for the instructional costs of health professional programs
at the Academic Health Center and for interdisciplinary academic initiatives within the
Academic Health Center.
deleted text end

deleted text begin (g) deleted text end A maximum of $150,000 of the funds dedicated to the commissioner under
section 297F.10, subdivision 1, deleted text begin paragraph (b), deleted text end clause (2), may be used by the commissioner
for administrative expenses associated with implementing this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 62J.692, subdivision 5, is amended to read:

Subd. 5.

Report.

(a) Sponsoring institutions receiving funds under this section
must sign and submit a medical education grant verification report (GVR) to verify that
the correct grant amount was forwarded to each eligible training site. If the sponsoring
institution fails to submit the GVR by the stated deadline, or to request and meet
the deadline for an extension, the sponsoring institution is required to return the full
amount of funds received to the commissioner within 30 days of receiving notice from
the commissioner. The commissioner shall distribute returned funds to the appropriate
training sites in accordance with the commissioner's approval letter.

(b) The reports must provide verification of the distribution of the funds and must
include:

(1) the total number of eligible trainee FTEs in each clinical medical education
program;

(2) the name of each funded program and, for each program, the dollar amount
distributed to each training site;

(3) documentation of any discrepancies between the initial grant distribution notice
included in the commissioner's approval letter and the actual distribution;

(4) deleted text begin a statement by the sponsoring institution describing the distribution of funds
allocated under subdivision 4, paragraph (b), including information on which clinical
training sites received funding and the rationale used for determining funding priorities;
deleted text end

deleted text begin (5) deleted text end a statement by the sponsoring institution stating that the completed grant
verification report is valid and accurate; and

deleted text begin (6) deleted text end new text begin (5) new text end other information the commissioner, with advice from the advisory
committee, deems appropriate to evaluate the effectiveness of the use of funds for medical
education.

(c) By February 15 of each year, the commissioner, with advice from the
advisory committee, shall provide an annual summary report to the legislature on the
implementation of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 4.

Minnesota Statutes 2006, section 62J.692, subdivision 8, is amended to read:

Subd. 8.

Federal financial participation.

deleted text begin (a) deleted text end The commissioner of human
services shall seek to maximize federal financial participation in payments for medical
education and research costs. deleted text begin If the commissioner of human services determines that
federal financial participation is available for the medical education and research, the
commissioner of health shall transfer to the commissioner of human services the amount
of state funds necessary to maximize the federal funds available. The amount transferred
to the commissioner of human services, plus the amount of federal financial participation,
shall be distributed to medical assistance providers in accordance with the distribution
methodology described in subdivision 4.
deleted text end

deleted text begin (b) For the purposes of paragraph (a), deleted text end The commissioner shall use physician clinic
rates where possible to maximize federal financial participation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 5.

Minnesota Statutes 2006, section 62Q.80, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Demonstration project. new text end

new text begin The commissioner of health shall award a
demonstration project grant to a community-based health care initiative to develop and
operate a community-based health care coverage program to operate within Carlton, Cook,
Lake, and St. Louis County. The demonstration project shall extend for five years and
must comply with the requirements of this section.
new text end

Sec. 6.

Minnesota Statutes 2006, section 62Q.80, subdivision 3, is amended to read:

Subd. 3.

Approval.

(a) Prior to the operation of a community-based health care
coverage program, a community-based health initiative shall submit to the commissioner
of health for approval the community-based health care coverage program developed by
the initiative. deleted text begin The commissioner shall only approve a program that has been awarded
a community access program grant from the United States Department of Health and
Human Services. deleted text end The commissioner shall ensure that the program meets deleted text begin the federal grant deleted text end
deleted text begin requirements and deleted text end any requirements described in this section and is actuarially sound based
on a review of appropriate records and methods utilized by the community-based health
initiative in establishing premium rates for the community-based health care coverage
program.

(b) Prior to approval, the commissioner shall also ensure that:

(1) the benefits offered comply with subdivision 8 and that there are adequate
numbers of health care providers participating in the community-based health network to
deliver the benefits offered under the program;

(2) the activities of the program are limited to activities that are exempt under this
section or otherwise from regulation by the commissioner of commerce;

(3) the complaint resolution process meets the requirements of subdivision 10; and

(4) the data privacy policies and procedures comply with state and federal law.

Sec. 7.

Minnesota Statutes 2006, section 62Q.80, subdivision 4, is amended to read:

Subd. 4.

Establishment.

deleted text begin (a) deleted text end The initiative shall establish and operate upon approval
by the commissioner of health a community-based health care coverage program. The
operational structure established by the initiative shall include, but is not limited to:

(1) establishing a process for enrolling eligible individuals and their dependents;

(2) collecting and coordinating premiums from enrollees and employers of enrollees;

(3) providing payment to participating providers;

(4) establishing a benefit set according to subdivision 8 and establishing premium
rates and cost-sharing requirements;

(5) creating incentives to encourage primary care and wellness services; and

(6) initiating disease management services, as appropriate.

deleted text begin (b) The payments collected under paragraph (a), clause (2), may be used to capture
available federal funds.
deleted text end

Sec. 8.

Minnesota Statutes 2006, section 62Q.80, subdivision 13, is amended to read:

Subd. 13.

Report.

(a) The initiative shall submit quarterly status reports to the
commissioner of health on January 15, April 15, July 15, and October 15 of each year,
with the first report due January 15, deleted text begin 2007 deleted text end new text begin 2008 new text end . The status report shall include:

(1) the financial status of the program, including the premium rates, cost per member
per month, claims paid out, premiums received, and administrative expenses;

(2) a description of the health care benefits offered and the services utilized;

(3) the number of employers participating, the number of employees and dependents
covered under the program, and the number of health care providers participating;

(4) a description of the health outcomes to be achieved by the program and a status
report on the performance measurements to be used and collected; and

(5) any other information requested by the commissioner of health or commerce or
the legislature.

(b) The initiative shall contract with an independent entity to conduct an evaluation
of the program to be submitted to the commissioners of health and commerce and the
legislature by January 15, deleted text begin 2009 deleted text end new text begin 2010 new text end . The evaluation shall include:

(1) an analysis of the health outcomes established by the initiative and the
performance measurements to determine whether the outcomes are being achieved;

(2) an analysis of the financial status of the program, including the claims to
premiums loss ratio and utilization and cost experience;

(3) the demographics of the enrollees, including their age, gender, family income,
and the number of dependents;

(4) the number of employers and employees who have been denied access to the
program and the basis for the denial;

(5) specific analysis on enrollees who have aggregate medical claims totaling over
$5,000 per year, including data on the enrollee's main diagnosis and whether all the
medical claims were covered by the program;

(6) number of enrollees referred to state public assistance programs;

(7) a comparison of employer-subsidized health coverage provided in a comparable
geographic area to the designated community-based geographic area served by the
program, including, to the extent available:

(i) the difference in the number of employers with 50 or fewer employees offering
employer-subsidized health coverage;

(ii) the difference in uncompensated care being provided in each area; and

(iii) a comparison of health care outcomes and measurements established by the
initiative; and

(8) any other information requested by the commissioner of health or commerce.

Sec. 9.

Minnesota Statutes 2006, section 62Q.80, subdivision 14, is amended to read:

Subd. 14.

Sunset.

This section expires December 31, deleted text begin 2011 deleted text end new text begin 2012 new text end .

Sec. 10.

Minnesota Statutes 2006, section 103I.101, subdivision 6, is amended to read:

Subd. 6.

Fees for variances.

The commissioner shall charge a nonrefundable
application fee of deleted text begin $175 deleted text end new text begin $215 new text end to cover the administrative cost of processing a request for a
variance or modification of rules adopted by the commissioner under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 11.

Minnesota Statutes 2006, section 103I.208, subdivision 1, is amended to read:

Subdivision 1.

Well notification fee.

The well notification fee to be paid by a
property owner is:

(1) for a new water supply well, deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state core function
fee;

(2) for a well sealing, deleted text begin $35 deleted text end new text begin $50 new text end for each well, which includes the state core function
fee, except that for monitoring wells constructed on a single property, having depths
within a 25 foot range, and sealed within 48 hours of start of construction, a single fee of
deleted text begin $35 deleted text end new text begin $50 new text end ; and

(3) for construction of a dewatering well, deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state core
function fee, for each dewatering well except a dewatering project comprising five or
more dewatering wells shall be assessed a single fee of deleted text begin $875 deleted text end new text begin $1,075 new text end for the dewatering
wells recorded on the notification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 12.

Minnesota Statutes 2006, section 103I.208, subdivision 2, is amended to read:

Subd. 2.

Permit fee.

The permit fee to be paid by a property owner is:

(1) for a water supply well that is not in use under a maintenance permit, deleted text begin $150 deleted text end new text begin $175 new text end
annually;

(2) for construction of a monitoring well, deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state
core function fee;

(3) for a monitoring well that is unsealed under a maintenance permit, deleted text begin $150 deleted text end new text begin $175 new text end
annually;

(4) for monitoring wells used as a leak detection device at a single motor fuel retail
outlet, a single petroleum bulk storage site excluding tank farms, or a single agricultural
chemical facility site, the construction permit fee is deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state
core function fee, per site regardless of the number of wells constructed on the site, and
the annual fee for a maintenance permit for unsealed monitoring wells is deleted text begin $150 deleted text end new text begin $175 new text end per
site regardless of the number of monitoring wells located on site;

(5) for a groundwater thermal exchange device, in addition to the notification fee for
water supply wells, deleted text begin $175 deleted text end new text begin $215 new text end , which includes the state core function fee;

(6) for a vertical heat exchanger, deleted text begin $175 deleted text end new text begin $215 new text end ;

(7) for a dewatering well that is unsealed under a maintenance permit, deleted text begin $150 deleted text end new text begin $175 new text end
annually for each dewatering well, except a dewatering project comprising more than five
dewatering wells shall be issued a single permit for deleted text begin $750 deleted text end new text begin $875 new text end annually for dewatering
wells recorded on the permit; and

(8) for an elevator boring, deleted text begin $175 deleted text end new text begin $215 new text end for each boring.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 13.

Minnesota Statutes 2006, section 103I.235, subdivision 1, is amended to read:

Subdivision 1.

Disclosure of wells to buyer.

(a) Before signing an agreement to
sell or transfer real property, the seller must disclose in writing to the buyer information
about the status and location of all known wells on the property, by delivering to the buyer
either a statement by the seller that the seller does not know of any wells on the property,
or a disclosure statement indicating the legal description and county, and a map drawn
from available information showing the location of each well to the extent practicable.
In the disclosure statement, the seller must indicate, for each well, whether the well is in
use, not in use, or sealed.

(b) At the time of closing of the sale, the disclosure statement information, name and
mailing address of the buyer, and the quartile, section, township, and range in which each
well is located must be provided on a well disclosure certificate signed by the seller or a
person authorized to act on behalf of the seller.

(c) A well disclosure certificate need not be provided if the seller does not know
of any wells on the property and the deed or other instrument of conveyance contains
the statement: "The Seller certifies that the Seller does not know of any wells on the
described real property."

(d) If a deed is given pursuant to a contract for deed, the well disclosure certificate
required by this subdivision shall be signed by the buyer or a person authorized to act on
behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure
certificate is not required if the following statement appears on the deed followed by the
signature of the grantee or, if there is more than one grantee, the signature of at least one
of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the
described real property." The statement and signature of the grantee may be on the front
or back of the deed or on an attached sheet and an acknowledgment of the statement by
the grantee is not required for the deed to be recordable.

(e) This subdivision does not apply to the sale, exchange, or transfer of real property:

(1) that consists solely of a sale or transfer of severed mineral interests; or

(2) that consists of an individual condominium unit as described in chapters 515
and 515B.

(f) For an area owned in common under chapter 515 or 515B the association or other
responsible person must report to the commissioner by July 1, 1992, the location and
status of all wells in the common area. The association or other responsible person must
notify the commissioner within 30 days of any change in the reported status of wells.

(g) For real property sold by the state under section 92.67, the lessee at the time of
the sale is responsible for compliance with this subdivision.

(h) If the seller fails to provide a required well disclosure certificate, the buyer, or
a person authorized to act on behalf of the buyer, may sign a well disclosure certificate
based on the information provided on the disclosure statement required by this section
or based on other available information.

(i) A county recorder or registrar of titles may not record a deed or other instrument
of conveyance dated after October 31, 1990, for which a certificate of value is required
under section 272.115, or any deed or other instrument of conveyance dated after October
31, 1990, from a governmental body exempt from the payment of state deed tax, unless
the deed or other instrument of conveyance contains the statement made in accordance
with paragraph (c) or (d) or is accompanied by the well disclosure certificate containing all
the information required by paragraph (b) or (d). The county recorder or registrar of titles
must not accept a certificate unless it contains all the required information. The county
recorder or registrar of titles shall note on each deed or other instrument of conveyance
accompanied by a well disclosure certificate that the well disclosure certificate was
received. The notation must include the statement "No wells on property" if the disclosure
certificate states there are no wells on the property. The well disclosure certificate shall not
be filed or recorded in the records maintained by the county recorder or registrar of titles.
After noting "No wells on property" on the deed or other instrument of conveyance, the
county recorder or registrar of titles shall destroy or return to the buyer the well disclosure
certificate. The county recorder or registrar of titles shall collect from the buyer or the
person seeking to record a deed or other instrument of conveyance, a fee of deleted text begin $40 deleted text end new text begin $45 new text end
for receipt of a completed well disclosure certificate. By the tenth day of each month,
the county recorder or registrar of titles shall transmit the well disclosure certificates
to the commissioner of health. By the tenth day after the end of each calendar quarter,
the county recorder or registrar of titles shall transmit to the commissioner of health
deleted text begin $32.50 deleted text end new text begin $37.50 new text end of the fee for each well disclosure certificate received during the quarter.
The commissioner shall maintain the well disclosure certificate for at least six years. The
commissioner may store the certificate as an electronic image. A copy of that image
shall be as valid as the original.

(j) No new well disclosure certificate is required under this subdivision if the buyer
or seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed
or other instrument of conveyance that the status and number of wells on the property
have not changed since the last previously filed well disclosure certificate. The following
statement, if followed by the signature of the person making the statement, is sufficient
to comply with the certification requirement of this paragraph: "I am familiar with the
property described in this instrument and I certify that the status and number of wells on
the described real property have not changed since the last previously filed well disclosure
certificate." The certification and signature may be on the front or back of the deed or on
an attached sheet and an acknowledgment of the statement is not required for the deed or
other instrument of conveyance to be recordable.

(k) The commissioner in consultation with county recorders shall prescribe the form
for a well disclosure certificate and provide well disclosure certificate forms to county
recorders and registrars of titles and other interested persons.

(l) Failure to comply with a requirement of this subdivision does not impair:

(1) the validity of a deed or other instrument of conveyance as between the parties
to the deed or instrument or as to any other person who otherwise would be bound by
the deed or instrument; or

(2) the record, as notice, of any deed or other instrument of conveyance accepted for
filing or recording contrary to the provisions of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 14.

Minnesota Statutes 2006, section 144.123, is amended to read:

144.123 FEES FOR DIAGNOSTIC LABORATORY SERVICES;
EXCEPTIONS.

Subdivision 1.

Who must pay.

Except for the limitation contained in this section,
the commissioner of health shall charge a handling fee for each specimen submitted to
the Department of Health for analysis for diagnostic purposes by any hospital, private
laboratory, private clinic, or physician. No fee shall be charged to any entity which
receives direct or indirect financial assistance from state or federal funds administered by
the Department of Health, including any public health department, nonprofit community
clinic, deleted text begin venereal deleted text end new text begin sexually transmitted new text end disease clinic, deleted text begin family planning clinic, deleted text end or similar
entity. new text begin No fee shall be charged for any biological materials submitted to the Department
of Health as a requirement of Minnesota Rules, part 4605.7040, or for those biological
materials requested by the department to gather information for disease prevention or
control purposes. new text end The commissioner of health may establish deleted text begin by rule deleted text end other exceptions to
the handling fee as may be necessary to deleted text begin gather information for epidemiologic purposes deleted text end new text begin
protect the public's health new text end . All fees collected pursuant to this section shall be deposited in
the state treasury and credited to the state government special revenue fund.

Subd. 2.

deleted text begin Rules for deleted text end Fee amounts.

The commissioner of health shall deleted text begin promulgate
rules, in accordance with chapter 14, which shall specify the amount of the deleted text end new text begin charge a new text end
handling fee prescribed in subdivision 1. The fee shall approximate the costs to the
department of handling specimens including reporting, postage, specimen kit preparation,
and overhead costs. The fee prescribed in subdivision 1 shall be deleted text begin $15 deleted text end new text begin $25 new text end per specimen
deleted text begin until the commissioner promulgates rules pursuant to this subdivision deleted text end .

Sec. 15.

Minnesota Statutes 2006, section 144.125, subdivision 1, is amended to read:

Subdivision 1.

Duty to perform testing.

It is the duty of (1) the administrative
officer or other person in charge of each institution caring for infants 28 days or less
of age, (2) the person required in pursuance of the provisions of section 144.215,
to register the birth of a child, or (3) the nurse midwife or midwife in attendance at
the birth, to arrange to have administered to every infant or child in its care tests for
heritable and congenital disorders according to subdivision 2 and rules prescribed by
the state commissioner of health. Testing and the recording and reporting of test results
shall be performed at the times and in the manner prescribed by the commissioner of
health. The commissioner shall charge deleted text begin laboratory service fees deleted text end new text begin a fee new text end so that the total of
fees collected will approximate the costs of conducting the tests and implementing and
maintaining a system to follow-up infants with heritable or congenital disorders. The
deleted text begin laboratory service deleted text end fee is deleted text begin $61 deleted text end new text begin $81 new text end per specimen. Costs associated with capital expenditures
and the development of new procedures may be prorated over a three-year period when
calculating the amount of the fees.

Sec. 16.

Minnesota Statutes 2006, section 144.125, subdivision 2, is amended to read:

Subd. 2.

Determination of tests to be administered.

The commissioner shall
periodically revise the list of tests to be administered for determining the presence of a
heritable or congenital disorder. Revisions to the list shall reflect advances in medical
science, new and improved testing methods, or other factors that will improve the public
health. In determining whether a test must be administered, the commissioner shall take
into consideration the adequacy of deleted text begin laboratory deleted text end new text begin analytical new text end methods to detect the heritable
or congenital disorder, the ability to treat or prevent medical conditions caused by the
heritable or congenital disorder, and the severity of the medical conditions caused by the
heritable or congenital disorder. The list of tests to be performed may be revised if the
changes are recommended by the advisory committee established under section 144.1255,
approved by the commissioner, and published in the State Register. The revision is
exempt from the rulemaking requirements in chapter 14, and sections 14.385 and 14.386
do not apply.

Sec. 17.

Minnesota Statutes 2006, section 144.3345, is amended to read:

144.3345 INTERCONNECTED ELECTRONIC HEALTH RECORD
GRANTS.

Subdivision 1.

Definitions.

The following definitions are used for the purposes
of this section.

(a) "Eligible community e-health collaborative" means an existing or newly
established collaborative to support the adoption and use of interoperable electronic
health records. A collaborative must consist of at least deleted text begin three deleted text end new text begin two new text end or more eligible health
care entities in at least two of the categories listed in paragraph (b) and have a focus on
interconnecting the members of the collaborative for secure and interoperable exchange of
health care information.

(b) "Eligible health care entity" means one of the following:

(1) community clinics, as defined under section 145.9268;

(2) hospitals eligible for rural hospital capital improvement grants, as defined
in section 144.148;

(3) physician clinics located in a community with a population of less than 50,000
according to United States Census Bureau statistics and outside the seven-county
metropolitan area;

(4) nursing facilities licensed under sections 144A.01 to 144A.27;

(5) community health boards new text begin or boards of health new text end as established under chapter 145A;

(6) nonprofit entities with a purpose to provide health information exchange
coordination governed by a representative, multi-stakeholder board of directors; and

(7) other providers of health or health care services approved by the commissioner
for which interoperable electronic health record capability would improve quality of
care, patient safety, or community health.

Subd. 2.

Grants authorized.

The commissioner of health shall award grants to new text begin :
new text end

new text begin (a) new text end eligible community e-health collaborative projects to improve the implementation
and use of interoperable electronic health records including but not limited to the
following projects:

(1) collaborative efforts to host and support fully functional interoperable electronic
health records in multiple care settings;

(2) electronic medication history and electronic patient deleted text begin registration deleted text end new text begin medical history new text end
information;

(3) electronic personal health records for persons with chronic diseases and for
prevention services;

(4) rural and underserved community models for electronic prescribing; deleted text begin and
deleted text end

(5) deleted text begin enabling deleted text end new text begin modernize new text end local public health new text begin information new text end systems to rapidly and
electronically exchange information needed to participate in community e-health
collaboratives or for public health emergency preparedness and response deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) implement regional or community-based health information exchange
organizations;
new text end

new text begin (b) community clinics, as defined under section 145.9268, to implement and use
interoperable electronic health records, including but not limited to the following projects:
new text end

new text begin (1) efforts to plan for and implement fully functional, standards-based interoperable
electronic health records; and
new text end

new text begin (2) purchases and implementation of computer hardware, software, and technology
to fully implement interoperable electronic health records;
new text end

new text begin (c) regional or community-based health information exchange organizations to
connect and facilitate the exchange of health information between eligible health care
entities, including but not limited to the development, testing, and implementation of:
new text end

new text begin (1) data exchange standards, including data, vocabulary, and messaging standards,
for the exchange of health information, provided that the standards are consistent with
state and national standards;
new text end

new text begin (2) security standards necessary to ensure the confidentiality and integrity of health
records;
new text end

new text begin (3) computer interfaces and mechanisms for standardizing health information
exchanged between eligible health care entities;
new text end

new text begin (4) a record locator service for identifying the location of patient health records; or
new text end

new text begin (5) interfaces and mechanisms for implementing patient consent requirements; and
new text end

new text begin (d) community health boards and boards of health as established under chapter
145A to modernize local public health information systems to be standards-based and
interoperable with other electronic health records and information systems, or for
enhanced public health emergency preparedness and response.
new text end

Grant funds may not be used for construction of health care or other buildings or
facilities.

Subd. 3.

Allocation of grants.

(a) To receive a grant under this section, an eligible
community e-health collaborative new text begin , community clinic, regional or community-based health
information exchange, or community health boards and boards of health new text end must submit an
application to the commissioner of health by the deadline established by the commissioner.
A grant may be awarded upon the signing of a grant contract. In awarding grants, the
commissioner shall give preference to projects benefiting providers located in rural and
underserved areas of Minnesota which the commissioner has determined have an unmet
need for the development and funding of electronic health records. Applicants may apply
for and the commissioner may award grants for one-year, two-year, or three-year periods.

(b) An application must be on a form and contain information as specified by the
commissioner but at a minimum must contain:

(1) a description of the purpose or project for which grant funds will be used;

(2) a description of the problem or problems the grant funds will be used to address,
including an assessment new text begin of the new text end likelihood of the project occurring absent grant funding;

(3) a description of achievable objectives, a workplan, budget, budget narrative, a
project communications plan, a timeline for implementation and completion of processes
or projects enabled by the grant, and an assessment of privacy and security issues and a
proposed approach to address these issues;

(4) a description of the health care entities and other groups participating in the
project, including identification of the lead entity responsible for applying for and
receiving grant funds;

(5) a plan for how patients and consumers will be involved in development of
policies and procedures related to the access to and interchange of information;

(6) evidence of consensus and commitment among the health care entities and others
who developed the proposal and are responsible for its implementation; deleted text begin and
deleted text end

(7) a plan for documenting and evaluating results of the grant deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) a plan for use of data exchange standards, including data and vocabulary.
new text end

(c) The commissioner shall review each application to determine whether the
application is complete and whether the applicant and the project are eligible for a
grant. In evaluating applications, the commissioner shall take into consideration factors,
including but not limited to, the following:

(1) the degree to which the proposal interconnects deleted text begin the various providers of care deleted text end new text begin with
other health care entities new text end in the applicant's geographic community;

(2) the degree to which the project provides for the interoperability of electronic
health records or related health information technology deleted text begin between the members of the
collaborative, and presence and scope of a description of how the project intends to
interconnect with other providers not part of the project into the future deleted text end ;

(3) the degree to which the project addresses current unmet needs pertaining
to interoperable electronic health records in a geographic area of Minnesota and the
likelihood that the needs would not be met absent grant funds;

(4) the applicant's thoroughness and clarity in describing the project, how the project
will improve patient safety, quality of care, and consumer empowerment, and the role of
the various collaborative members;

(5) the recommendations of the Health Information and Technology Infrastructure
Advisory Committee; and

(6) other factors that the commissioner deems relevant.

(d) Grant funds shall be awarded on a three-to-one match basis. Applicants shall
be required to provide $1 in the form of cash or in-kind staff or services for each $3
provided under the grant program.

(e) Grants shall not exceed $900,000 per grant. The commissioner has discretion
over the size and number of grants awarded.

Subd. 4.

Evaluation and report.

The commissioner of health shall evaluate the
overall effectiveness of the grant program. The commissioner shall collect progress
and expenditure reports to evaluate the grant program from the eligible community
collaboratives receiving grants.

Sec. 18.

new text begin [144.966] EARLY HEARING DETECTION AND INTERVENTION
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Child" means a person 18 years of age or younger.
new text end

new text begin (b) "False positive rate" means the proportion of infants identified as having a
significant hearing loss by the screening process who are ultimately found to not have a
significant hearing loss.
new text end

new text begin (c) "False negative rate" means the proportion of infants not identified as having
a significant hearing loss by the screening process who are ultimately found to have a
significant hearing loss.
new text end

new text begin (d) "Hearing screening test" means automated auditory brain stem response,
otoacoustic emissions, or another appropriate screening test approved by the Department
of Health.
new text end

new text begin (e) "Hospital" means a birthing health care facility or birthing center licensed in
this state that provides obstetrical services.
new text end

new text begin (f) "Infant" means a child who is not a newborn and has not attained the age of
one year.
new text end

new text begin (g) "Newborn" means an infant 28 days of age or younger.
new text end

new text begin (h) "Parent" means a natural parent, stepparent, adoptive parent, guardian, or
custodian of a newborn or infant.
new text end

new text begin Subd. 2. new text end

new text begin Newborn Hearing Screening Advisory Committee. new text end

new text begin (a) The
commissioner of health shall establish a Newborn Hearing Screening Advisory Committee
to advise and assist the Department of Health and the Department of Education in:
new text end

new text begin (1) developing protocols and timelines for screening, rescreening, and diagnostic
audiological assessment and early medical, audiological, and educational intervention
services for children who are deaf or hard-of-hearing;
new text end

new text begin (2) designing protocols for tracking children from birth through age three that may
have passed newborn screening but are at risk for delayed or late onset of permanent
hearing loss;
new text end

new text begin (3) designing a technical assistance program to support facilities implementing the
screening program and facilities conducting rescreening and diagnostic audiological
assessment;
new text end

new text begin (4) designing implementation and evaluation of a system of follow-up and tracking;
and
new text end

new text begin (5) evaluating program outcomes to increase effectiveness and efficiency and ensure
culturally appropriate services for children with a confirmed hearing loss and their families.
new text end

new text begin (b) The commissioner of health shall appoint at least one member from each of the
following groups with no less than two of the members being deaf or hard-of-hearing:
new text end

new text begin (1) a representative from a consumer organization representing culturally deaf
persons;
new text end

new text begin (2) a parent with a child with hearing loss representing a parent organization;
new text end

new text begin (3) a consumer from an organization representing oral communication options;
new text end

new text begin (4) a consumer from an organization representing cued speech communication
options;
new text end

new text begin (5) an audiologist who has experience in evaluation and intervention of infants
and young children;
new text end

new text begin (6) a speech-language pathologist who has experience in evaluation and intervention
of infants and young children;
new text end

new text begin (7) two primary care providers who have experience in the care of infants and young
children, one of which shall be a pediatrician;
new text end

new text begin (8) a representative from the early hearing detection intervention teams;
new text end

new text begin (9) a representative from the Department of Education resource center for the deaf
and hard-of-hearing or the representative's designee;
new text end

new text begin (10) a representative of the Minnesota Commission Serving Deaf and Hard of
Hearing People;
new text end

new text begin (11) a representative from the Department of Human Services Deaf and Hard of
Hearing Services Division;
new text end

new text begin (12) one or more of the Part C coordinators from the Department of Education,
the Department of Health, or the Department of Human Services or the department's
designees;
new text end

new text begin (13) the Department of Health early hearing detection and intervention coordinator;
new text end

new text begin (14) two birth hospital representatives from one rural and one urban hospital;
new text end

new text begin (15) a pediatric geneticist;
new text end

new text begin (16) an otolaryngologist;
new text end

new text begin (17) a representative from the Newborn Screening Advisory Committee under
this subdivision; and
new text end

new text begin (18) a representative of the Department of Education regional low-incidence
facilitators.
new text end

new text begin The commissioner must complete the appointments required under this subdivision by
September 1, 2007.
new text end

new text begin (c) The Department of Health member shall chair the first meeting of the committee.
At the first meeting, the committee shall elect a chair from its membership. The committee
shall meet at the call of the chair, at least four times a year. The committee shall adopt
written bylaws to govern its activities. The Department of Health shall provide technical
and administrative support services as required by the committee. These services shall
include technical support from individuals qualified to administer infant hearing screening,
rescreening, and diagnostic audiological assessments.
new text end

new text begin Members of the committee shall receive no compensation for their service, but
shall be reimbursed as provided in section 15.059 for expenses incurred as a result of
their duties as members of the committee.
new text end

new text begin (d) This subdivision expires June 30, 2013.
new text end

new text begin Subd. 3. new text end

new text begin Early hearing detection and intervention programs. new text end

new text begin All hospitals
shall establish an early hearing detection and intervention (EHDI) program. Each EHDI
program shall:
new text end

new text begin (1) in advance of any hearing screening testing, provide to the newborn's or infant's
parents or parent information concerning the nature of the screening procedure, applicable
costs of the screening procedure, the potential risks and effects of hearing loss, and the
benefits of early detection and intervention;
new text end

new text begin (2) comply with parental consent under section 144.125, subdivision 3;
new text end

new text begin (3) develop policies and procedures for screening and rescreening based on
Department of Health recommendations;
new text end

new text begin (4) provide appropriate training and monitoring of individuals responsible for
performing hearing screening tests as recommended by the Department of Health;
new text end

new text begin (5) test the newborn's hearing prior to discharge, or, if the newborn is expected to
remain in the hospital for a prolonged period, testing shall be performed prior to three
months of age or when medically feasible;
new text end

new text begin (6) develop and implement procedures for documenting the results of all hearing
screening tests;
new text end

new text begin (7) inform the newborn's or infant's parents or parent, primary care physician, and
the Department of Health according to recommendations of the Department of Health of
the results of the hearing screening test or rescreening if conducted, or if the newborn or
infant was not successfully tested. The hospital that discharges the newborn or infant to
home is responsible for the screening; and
new text end

new text begin (8) collect performance data specified by the Department of Health.
new text end

new text begin Subd. 4. new text end

new text begin Notification and information. new text end

new text begin (a) Notification to the parents or parent,
primary care provider, and the Department of Health shall occur prior to discharge or no
later than ten days following the date of testing. Notification shall include information
recommended by the Department of Health.
new text end

new text begin (b) A physician, nurse, midwife, or other health professional attending a birth outside
a hospital or institution shall provide information, orally and in writing, as established by
the Department of Health, to parents regarding places where the parents may have their
infant's hearing screened and the importance of the screening.
new text end

new text begin (c) The professional conducting the diagnostic procedure to confirm the hearing loss
must report the results to the parents, primary care provider, and Department of Health
according to the Department of Health recommendations.
new text end

new text begin Subd. 5. new text end

new text begin Oversight responsibility. new text end

new text begin The Department of Health shall exercise
oversight responsibility for EHDI programs, including establishing a performance data set
and reviewing performance data collected by each hospital.
new text end

new text begin Subd. 6. new text end

new text begin Civil and criminal immunity and penalties. new text end

new text begin (a) No physician or hospital
shall be civilly or criminally liable for failure to conduct hearing screening testing.
new text end

new text begin (b) No physician, midwife, nurse, other health professional, or hospital acting in
compliance with this section shall be civilly or criminally liable for any acts conforming
with this section, including furnishing information required according to this section.
new text end

new text begin Subd. 7. new text end

new text begin Laboratory service fees. new text end

new text begin The commissioner shall charge laboratory
service fees so that the total of fees collected will approximate the costs of implementing
and maintaining a system to follow up on infants and provide technical assistance, a
tracking system, data management, and evaluation. The laboratory service fee is $21 per
screening. This fee is in addition to the fee charged under section 144.125.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2006, section 144D.03, subdivision 1, is amended to read:

Subdivision 1.

Registration procedures.

The commissioner shall establish forms
and procedures for annual registration of housing with services establishments. The
commissioner shall charge an annual registration fee of deleted text begin $35 deleted text end new text begin $155 new text end . No fee shall be
refunded. A registered establishment shall notify the commissioner within 30 days of the
date it is no longer required to be registered under this chapter or of any change in the
business name or address of the establishment, the name or mailing address of the owner
or owners, or the name or mailing address of the managing agent. There shall be no
fee for submission of the notice.

Sec. 20.

new text begin [145.9269] FEDERALLY QUALIFIED HEALTH CENTERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, "federally qualified health
center" means an entity that is receiving a grant under United States Code, title 42,
section 254B, or, based on the recommendation of the Health Resources and Services
Administration within the Public Health Service, is determined by the secretary to meet
the requirements for receiving such a grant.
new text end

new text begin Subd. 2. new text end

new text begin Allocation of subsidies. new text end

new text begin The commissioner of health shall distribute
subsidies to federally qualified health centers operating in Minnesota to continue, expand,
and improve federally qualified health center services to low-income populations. The
commissioner shall distribute the funds appropriated under this section to federally
qualified health centers operating in Minnesota as of January 1, 2007. The amount of
each subsidy shall be in proportion to each federally qualified health center's amount of
discounts granted to patients during calendar year 2006 as reported on the federal Uniform
Data System report in conformance with the Bureau of Primary Health Care Program
Expectations Policy Information Notice 98-23, except that each eligible federally qualified
health center shall receive at least two percent but no more than 30 percent of the total
amount of money available under this section.
new text end

Sec. 21.

Minnesota Statutes 2006, section 148.5194, is amended by adding a
subdivision to read:

new text begin Subd. 7a. new text end

new text begin Audiologist hearing instrument dispensing examination fee. new text end

new text begin For
persons meeting the requirements of section 148.515, subdivision 2, the fee for the
practical portion of the hearing instrument dispensing examination is $250 each time it
is taken.
new text end

Sec. 22.

Minnesota Statutes 2006, section 148.6445, subdivision 1, is amended to read:

Subdivision 1.

Initial licensure fee.

The initial licensure fee for occupational
therapists is deleted text begin $180 deleted text end new text begin $145 new text end . The initial licensure fee for occupational therapy assistants is
deleted text begin $100 deleted text end new text begin $80 new text end . The commissioner shall prorate fees based on the number of quarters remaining
in the biennial licensure period.

Sec. 23.

Minnesota Statutes 2006, section 148.6445, subdivision 2, is amended to read:

Subd. 2.

Licensure renewal fee.

The biennial licensure renewal fee for
occupational therapists is deleted text begin $180 deleted text end new text begin $145 new text end . The biennial licensure renewal fee for occupational
therapy assistants is deleted text begin $100 deleted text end new text begin $80 new text end .

Sec. 24.

Minnesota Statutes 2006, section 149A.52, subdivision 3, is amended to read:

Subd. 3.

Application procedure; documentation; initial inspection.

An applicant
for a license to operate a crematory shall submit to the commissioner a completed
application. A completed application includes:

(1) a completed application form, as provided by the commissioner;

(2) proof of business form and ownership; and

(3) proof of liability insurance coverage or other financial documentation, as
determined by the commissioner, that demonstrates the applicant's ability to respond in
damages for liability arising from the ownership, maintenance, management, or operation
of a crematory.

Upon receipt of the application new text begin and appropriate fee new text end , the commissioner shall review
and verify all information. Upon completion of the verification process and resolution
of any deficiencies in the application information, the commissioner shall conduct an
initial inspection of the premises to be licensed. After the inspection and resolution of
any deficiencies found and any reinspections as may be necessary, the commissioner shall
make a determination, based on all the information available, to grant or deny licensure. If
the commissioner's determination is to grant the license, the applicant shall be notified and
the license shall issue and remain valid for a period prescribed on the license, but not to
exceed one calendar year from the date of issuance of the license. If the commissioner's
determination is to deny the license, the commissioner must notify the applicant, in
writing, of the denial and provide the specific reason for denial.

Sec. 25.

new text begin [149A.65] FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin This section establishes the fees for registrations,
examinations, initial and renewal licenses, and late fees authorized under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Mortuary science fees. new text end

new text begin Fees for mortuary science are:
new text end

new text begin (1) $50 for the initial and renewal registration of a mortuary science intern;
new text end

new text begin (2) $100 for the mortuary science examination;
new text end

new text begin (3) $125 for issuance of initial and renewal mortuary science licenses;
new text end

new text begin (4) $25 late fee charge for a license renewal; and
new text end

new text begin (5) $200 for issuing a mortuary science license by endorsement.
new text end

new text begin Subd. 3. new text end

new text begin Funeral directors. new text end

new text begin The license renewal fee for funeral directors is $125.
The late fee charge for a license renewal is $25.
new text end

new text begin Subd. 4. new text end

new text begin Funeral establishments. new text end

new text begin The initial and renewal fee for funeral
establishments is $300. The late fee charge for a license renewal is $25.
new text end

new text begin Subd. 5. new text end

new text begin Crematories. new text end

new text begin The initial and renewal fee for a crematory is $300. The
late fee charge for a license renewal is $25.
new text end

Sec. 26.

Minnesota Statutes 2006, section 149A.97, subdivision 7, is amended to read:

Subd. 7.

Reports to commissioner.

Every funeral provider lawfully doing business
in Minnesota that accepts funds under subdivision 2 must make a complete annual report
to the commissioner. The reports may be on forms provided by the commissioner or
substantially similar forms containing, at least, identification and the state of each trust
account, including all transactions involving principal and accrued interest, and must be
filed by March 31 of the calendar year following the reporting year along with a filing
fee of deleted text begin $15 deleted text end new text begin $25 new text end for each report. Fees shall be paid to the commissioner of finance, state of
Minnesota, for deposit in the state government special revenue fund in the state treasury.
Reports must be signed by an authorized representative of the funeral provider and
notarized under oath. All reports to the commissioner shall be reviewed for account
inaccuracies or possible violations of this section. If the commissioner has a reasonable
belief to suspect that there are account irregularities or possible violations of this section,
the commissioner shall report that belief, in a timely manner, to the state auditor. The
commissioner shall also file an annual letter with the state auditor disclosing whether or
not any irregularities or possible violations were detected in review of the annual trust
fund reports filed by the funeral providers. This letter shall be filed with the state auditor
by May 31 of the calendar year following the reporting year.

Sec. 27.

Minnesota Statutes 2006, section 153A.14, subdivision 4a, is amended to read:

Subd. 4a.

Trainees.

(a) A person who is not certified under this section may dispense
hearing instruments as a trainee for a period not to exceed 12 months if the person:

(1) submits an application on forms provided by the commissioner;

(2) is under the supervision of a certified dispenser meeting the requirements of this
subdivision new text begin or a licensed audiologist meeting the requirements of sections 148.511 to
148.5198 new text end ; and

(3) meets all requirements for certification except passage of the examination
required by this section.

(b) A certified hearing instrument dispenser may not supervise more than two
trainees at the same time and may not directly supervise more than one trainee at a time.
The certified dispenser is responsible for all actions or omissions of a trainee in connection
with the dispensing of hearing instruments. A certified dispenser may not supervise a
trainee if there are any commissioner, court, or other orders, currently in effect or issued
within the last five years, that were issued with respect to an action or omission of a
certified dispenser or a trainee under the certified dispenser's supervision.

Until taking and passing the practical examination testing the techniques described
in subdivision 2h, paragraph (a), clause (2), trainees must be directly supervised in all
areas described in subdivision 4b, and the activities tested by the practical examination.
Thereafter, trainees may dispense hearing instruments under indirect supervision until
expiration of the trainee period. Under indirect supervision, the trainee must complete two
monitored activities a week. Monitored activities may be executed by correspondence,
telephone, or other telephonic devices, and include, but are not limited to, evaluation
of audiograms, written reports, and contracts. The time spent in supervision must be
recorded and the record retained by the supervisor.

Sec. 28.

Minnesota Statutes 2006, section 153A.17, is amended to read:

153A.17 EXPENSES; FEES.

The expenses for administering the certification requirements including the
complaint handling system for hearing aid dispensers in sections 153A.14 and 153A.15
and the Consumer Information Center under section 153A.18 must be paid from initial
application and examination fees, renewal fees, penalties, and fines. All fees are
nonrefundable. The new text begin initial and annual renewal new text end certificate application fee is deleted text begin $350 deleted text end new text begin $1,000 new text end ,
the examination fee is deleted text begin $250 deleted text end new text begin $700 new text end for the written portion and deleted text begin $250 deleted text end new text begin $700 new text end for the practical
portion each time one or the other is taken, and the trainee application fee is $200.
new text begin Effective July 1, 2007, a surcharge of $200 shall be paid at the time of certification
application or renewal until June 30, 2011, to recover the commissioner's accumulated
direct expenditures for administering the requirements of this chapter. new text end The penalty fee for
late submission of a renewal application is $200. The fee for verification of certification
to other jurisdictions or entities is $25. All fees, penalties, and fines received must be
deposited in the state government special revenue fund. The commissioner may prorate
the certification fee for new applicants based on the number of quarters remaining in
the annual certification period.

Sec. 29.

Laws 2005, First Special Session chapter 4, article 9, section 3, subdivision 2,
is amended to read:

Subd. 2. Community and Family Health Improvement

Summary by Fund
General	40,413,000	40,382,000
State Government Special Revenue	141,000	128,000
Health Care Access	3,510,000	3,516,000
Federal TANF	6,000,000	6,000,000

deleted text begin FAMILY PLANNING BASE
REDUCTION. Base level funding for
the family planning special projects grant
program is reduced by $1,877,000 each
year of the biennium beginning July 1,
2007, provided that this reduction shall
only take place upon full implementation of
the family planning project section of the
1115 waiver. Notwithstanding Minnesota
Statutes, section , the commissioner
shall give priority to community health care
clinics providing family planning services
that either serve a high number of women
who do not qualify for medical assistance
or are unable to participate in the medical
assistance program as a medical assistance
provider when allocating the remaining
appropriations. Notwithstanding section 15,
this paragraph shall not expire.
deleted text end

SHAKEN BABY VIDEO. Of the
state government special revenue fund
appropriation, $13,000 in 2006 is
appropriated to the commissioner of health
to provide a video to hospitals on shaken
baby syndrome. The commissioner of health
shall assess a fee to hospitals to cover the
cost of the approved shaken baby video and
the revenue received is to be deposited in the
state government special revenue fund.

Sec. 30. new text begin COMMUNITY INITIATIVES TO COVER THE UNINSURED AND
UNDERINSURED.
new text end

new text begin Subdivision 1. new text end

new text begin Community partnerships. new text end

new text begin The commissioner of health shall
provide planning grants to up to three community partnerships that satisfy the requirements
in this section. A community partnership is eligible for a grant if the community
partnership includes:
new text end

new text begin (1) at least one county;
new text end

new text begin (2) at least one local hospital;
new text end

new text begin (3) at least one local employer who collectively provides at least 300 jobs in the
community;
new text end

new text begin (4) at least one school system;
new text end

new text begin (5) at least one of the following:
new text end

new text begin (i) one or more integrated health care clinics or physician groups. For purposes of
this section, "integrated health care" means integrated mental health and primary care; or
new text end

new text begin (ii) one or more health care clinics or physician groups and one or more mental
health clinics; and
new text end

new text begin (6) a third-party payer, which may include a county-based purchasing plan, an
employer, or a health plan company.
new text end

new text begin Subd. 2 new text end

new text begin Proposal requirements. new text end

new text begin The planning grants shall be used by community
partnerships to develop a comprehensive proposal to provide affordable health care
services to uninsured and underinsured individuals with chronic health conditions through
an integrated community partnership system. A community partnership requesting a
planning grant must submit to the commissioner a planning proposal that includes:
new text end

new text begin (1) methods for identifying potential uninsured or underinsured individuals and
patients who have or who are at risk of developing a chronic health condition;
new text end

new text begin (2) methods to integrate and coordinate medical, mental health, and chemical health
services with services provided through county social services, corrections, public health,
school districts, and health care providers;
new text end

new text begin (3) providing early intervention and prevention activities; and
new text end

new text begin (4) methods to identify and support accountability across public and private systems,
including means to measure outcomes and economic savings from providing services
through an integrated system.
new text end

new text begin Subd. 3. new text end

new text begin Planning grant criteria. new text end

new text begin (a) Proposals for planning grants shall be
submitted to the commissioner. Preference shall be given to planning proposals that:
new text end

new text begin (1) have broad community support from local business, providers, counties, and
other public and private organizations;
new text end

new text begin (2) propose to provide services to uninsured or underinsured individuals of every
age who have or are at risk of developing multiple, co-occuring chronic conditions;
new text end

new text begin (3) integrate or coordinate resources from multiple sources; and
new text end

new text begin (4) demonstrate how administrative costs for health plan companies and providers
can be reduced through greater simplification, coordination, consolidation, standardization,
reducing billing errors, or other methods.
new text end

new text begin (b) Community partnerships receiving a planning grant under this section shall
submit their proposed initiatives to the commissioner by December 15, 2007.
new text end

new text begin (c) The commissioner shall submit a report to the legislature by February 15, 2008,
that:
new text end

new text begin (1) identifies the community partnerships that received a planning grant under this
section; and
new text end

new text begin (2) summarizes the planned initiatives submitted to the commissioner based on
the requirements in this section.
new text end

Sec. 31. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, section 62J.692, subdivision 10, new text end new text begin is repealed effective
January 1, 2008.
new text end

new text begin (b) new text end new text begin Minnesota Rules, part 4610.2800, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Laws 2004, chapter 288, article 6, section 22, new text end new text begin is repealed.
new text end

ARTICLE 8

HEALTH CARE - MISCELLANEOUS

Section 1.

Minnesota Statutes 2006, section 62E.02, subdivision 7, is amended to read:

Subd. 7.

Dependent.

"Dependent" means a spouse or unmarried child deleted text begin under the
age of 19 years, a dependent child who is a student deleted text end under the age of 25, or a dependent
child of any age who is disabled.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008, and applies to
coverage offered, sold, issued, or renewed on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2006, section 62J.07, subdivision 1, is amended to read:

Subdivision 1.

Legislative oversight.

The Legislative Commission on Health
Care Access deleted text begin reviews the activities of the commissioner of health, the Health Technology
Advisory Committee, and all other state agencies involved in the implementation and
administration of this chapter, including efforts to obtain federal approval through waivers
and other means deleted text end new text begin shall make recommendations to the legislature on how to achieve the
goal of universal health coverage as described in section 62Q.165. The recommendations
shall include a timetable in which measurable progress must be achieved toward this goal.
The commission shall submit to the legislature by January 15, 2008, the recommendations
and corresponding timetable new text end .

Sec. 3.

Minnesota Statutes 2006, section 62J.07, subdivision 3, is amended to read:

Subd. 3.

Reports to the commission.

The deleted text begin commissioner deleted text end new text begin commissioners new text end of
health new text begin , human services, commerce, new text end and deleted text begin the Health Technology Advisory Committee shall
report on their activities annually and at other times at the request of the Legislative
Commission on Health Care Access. The commissioners of health, commerce, and human
services shall provide periodic reports to the legislative commission on the progress of
rulemaking that is authorized or required under this chapter and shall notify members
of the commission when a draft of a proposed rule has been completed and scheduled
for publication in the State Register. At the request of a member of the commission,
a commissioner shall provide a description and a copy of a proposed rule deleted text end new text begin other state
agencies shall provide assistance and technical support to the commission at the request
of the commission. The commission may convene subcommittees to provide additional
assistance and advice to the commission new text end .

Sec. 4.

Minnesota Statutes 2006, section 62J.495, is amended to read:

62J.495 HEALTH INFORMATION TECHNOLOGY AND
INFRASTRUCTURE deleted text begin ADVISORY COMMITTEE deleted text end .

Subdivision 1.

deleted text begin Establishment; members; duties deleted text end new text begin Implementation new text end .

new text begin By January
1, 2015, all hospitals and health care providers must have in place an interoperable
electronic health records system within their hospital system or clinical practice setting.
The commissioner of health, in consultation with the Health Information Technology and
Infrastructure Advisory Committee, shall develop a statewide plan to meet this goal,
including uniform standards to be used for the interoperable system for sharing and
synchronizing patient data across systems. The standards must be compatible with federal
efforts. The uniform standards must be developed by January 1, 2009, with a status report
on the development of these standards submitted to the legislature by January 15, 2008.
new text end

new text begin Subd. 2. new text end

new text begin Health Information Technology and Infrastructure Advisory
Committee. new text end

(a) The commissioner shall establish a Health Information Technology
and Infrastructure Advisory Committee governed by section 15.059 to advise the
commissioner on the following matters:

(1) assessment of the use of health information technology by the state, licensed
health care providers and facilities, and local public health agencies;

(2) recommendations for implementing a statewide interoperable health information
infrastructure, to include estimates of necessary resources, and for determining standards
for administrative data exchange, clinical support programs, patient privacy requirements,
and maintenance of the security and confidentiality of individual patient data; and

(3) other related issues as requested by the commissioner.

(b) The members of the Health Information Technology and Infrastructure Advisory
Committee shall include the commissioners, or commissioners' designees, of health,
human services, administration, and commerce and additional members to be appointed
by the commissioner to include persons representing Minnesota's local public health
agencies, licensed hospitals and other licensed facilities and providers, private purchasers,
the medical and nursing professions, health insurers and health plans, the state quality
improvement organization, academic and research institutions, consumer advisory
organizations with an interest and expertise in health information technology, and other
stakeholders as identified by the Health Information Technology and Infrastructure
Advisory Committee.

deleted text begin Subd. 2. deleted text end

deleted text begin Annual report. deleted text end

new text begin (c) new text end The commissioner shall prepare and issue an annual
report not later than January 30 of each year outlining progress to date in implementing a
statewide health information infrastructure and recommending future projects.

deleted text begin Subd. 3. deleted text end

deleted text begin Expiration. deleted text end

new text begin (d) new text end Notwithstanding section 15.059, this deleted text begin section deleted text end new text begin subdivision
new text end expires June 30, deleted text begin 2009 deleted text end new text begin 2015 new text end .

Sec. 5.

Minnesota Statutes 2006, section 62J.82, is amended to read:

62J.82 HOSPITAL deleted text begin CHARGE deleted text end new text begin INFORMATION REPORTING new text end DISCLOSURE.

new text begin Subdivision 1. new text end

new text begin Required information. new text end

The Minnesota Hospital Association shall
develop a Web-based system, available to the public free of charge, for reporting deleted text begin charge
information deleted text end new text begin the following new text end , for Minnesota residents deleted text begin , deleted text end new text begin :
new text end

new text begin (1) hospital-specific performance on the measures of care developed under section
256B.072 for acute myocardial infarction, heart failure, and pneumonia;
new text end

new text begin (2) by January 1, 2009, hospital-specific performance on the public reporting
measures for hospital-acquired infections as published by the National Quality Forum
and collected by the Minnesota Hospital Association and Stratis Health in collaboration
with infection control practitioners; and
new text end

new text begin (3) charge information, new text end including, but not limited to, number of discharges, average
length of stay, average charge, average charge per day, and median charge, for each of the
50 most common inpatient diagnosis-related groups and the 25 most common outpatient
surgical procedures as specified by the Minnesota Hospital Association.

new text begin Subd. 2. new text end

new text begin Web site. new text end

The Web site must provide information that compares
hospital-specific data to hospital statewide data. The Web site must be deleted text begin established by
October 1, 2006, and must be deleted text end updated annually. new text begin The commissioner shall provide a link to
this reporting information on the department's Web site.
new text end

new text begin Subd. 3. new text end

new text begin Enforcement. new text end

new text begin The commissioner shall provide a link to this information
on the department's Web site. new text end If a hospital does not provide this information to the
Minnesota Hospital Association, the commissioner new text begin of health new text end may require the hospital to
do so new text begin according to section 144.55, subdivision 6 new text end . deleted text begin The commissioner shall provide a link to
this information on the department's Web site.
deleted text end

Sec. 6.

Minnesota Statutes 2006, section 62L.02, subdivision 11, is amended to read:

Subd. 11.

Dependent.

"Dependent" means an eligible employee's spouse,
unmarried child who is deleted text begin under the age of 19 years, unmarried child deleted text end under the age of 25
years deleted text begin who is a full-time student as defined in section 62A.301 deleted text end , dependent child of any age
who is disabled and who meets the eligibility criteria in section 62A.14, subdivision 2,
or any other person whom state or federal law requires to be treated as a dependent for
purposes of health plans. For the purpose of this definition, a child includes a child for
whom the employee or the employee's spouse has been appointed legal guardian and an
adoptive child as provided in section 62A.27.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008, and applies to
coverage offered, sold, issued, and renewed on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2006, section 62Q.165, subdivision 1, is amended to read:

Subdivision 1.

Definition.

It is the commitment of the state to achieve universal
health coverage for all Minnesotans new text begin by the year 2010 new text end . Universal coverage is achieved
when:

(1) every Minnesotan has access to a full range of quality health care services;

(2) every Minnesotan is able to obtain affordable health coverage which pays for the
full range of services, including preventive and primary care; and

(3) every Minnesotan pays into the health care system according to that person's
ability.

Sec. 8.

Minnesota Statutes 2006, section 62Q.165, subdivision 2, is amended to read:

Subd. 2.

Goal.

It is the goal of the state to make continuous progress toward
reducing the number of Minnesotans who do not have health coverage so that by January
1, deleted text begin 2000 deleted text end new text begin 2010 new text end , deleted text begin fewer than four percent of the state's population will be without health
coverage deleted text end new text begin all Minnesota residents have access to affordable health care new text end . deleted text begin The goal will be deleted text end
deleted text begin achieved by deleted text end new text begin In achieving this goal, a number of options shall be considered, including
new text end improving access to private health coverage through insurance reforms and market
reforms, deleted text begin by deleted text end making health coverage more affordable for low-income Minnesotans through
purchasing pools and state subsidies, and deleted text begin by deleted text end reducing the cost of health coverage through
cost containment programs and methods of ensuring that all Minnesotans are paying
into the system according to their ability.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 9. new text begin HEALTH PLAN PURCHASING POOL STUDY GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; membership. new text end

new text begin (a) A health plan purchasing pool study
group is created to study and make recommendations regarding the creation of a voluntary,
statewide health plan purchasing pool that would contract directly with providers to
provide affordable health coverage to eligible Minnesota residents. The study group is
composed of:
new text end

new text begin (1) three members of the senate, two from the majority party appointed by the
majority leader of the senate and one from the minority party appointed by the minority
leader of the senate;
new text end

new text begin (2) three members of the house of representatives, two from the majority party
appointed by the speaker of the house of representatives, and one from the minority party
appointed by the minority leader of the house of representatives;
new text end

new text begin (3) the attorney general or the attorney general's designated representative;
new text end

new text begin (4) three representatives of health care providers appointed as follows:
new text end

new text begin (i) one member appointed by the governor;
new text end

new text begin (ii) one member appointed by the speaker of the house; and
new text end

new text begin (iii) one member appointed by the Subcommittee on Committees of the senate
Committee on Rules and Administration;
new text end

new text begin (5) one member selected by the American Federation of State, County, and
Municipal employees;
new text end

new text begin (6) one member selected by the Minnesota Association of Professional Employees;
new text end

new text begin (7) one member selected by Education Minnesota;
new text end

new text begin (8) one member selected by the Minnesota Business Partnership; and
new text end

new text begin (9) one member selected by the Metropolitan Interdependent Business Organization.
new text end

new text begin All appointments made under this subdivision must be made within 30 days of the
effective date of this act.
new text end

new text begin (b) The attorney general or the attorney general's designee shall convene the first
meeting of the study group. The study group shall select its chair at the first meeting.
new text end

new text begin Subd. 2. new text end

new text begin Study; report. new text end

new text begin The study group shall study and make recommendations
on the following issues related to the creation, maintenance, and funding of a voluntary,
statewide health plan purchasing pool to provide comprehensive, cost-effective, and
medically appropriate health coverage to all public and private employees in Minnesota
and all Minnesota residents:
new text end

new text begin (1) the creation of an independent public entity to administer the pool;
new text end

new text begin (2) eligibility and participation requirements for existing public and private health
care purchasing pools, public and private employers, and residents of this state;
new text end

new text begin (3) how to contract directly with providers to provide comprehensive coverage for
preventive, mental health, dental and other medical services, and comprehensive drug
benefits to enrollees and maximize the cost savings and other efficiencies that a large
purchasing pool would be expected to generate without the need for a public subsidy;
new text end

new text begin (4) provisions that allow the pool to contract directly with health care providers
to provide coverage to enrollees;
new text end

new text begin (5) incentives designed to attract and retain the maximum number of enrollees;
new text end

new text begin (6) recommendations for the administration of the pool and the plans that will be
available to enrollees including, but not limited to, recommendations to keep the pool
solvent and profitable so that public subsidies are not necessary; and
new text end

new text begin (7) other elements the study group concludes are necessary or desirable for the
pool to possess.
new text end

new text begin The study group shall submit its report and the draft legislation necessary to
implement its recommendations to the chairs of the legislative committees and divisions
with jurisdiction over health care policy and finance and the governor by February 1, 2008.
new text end

new text begin Subd. 3. new text end

new text begin Staffing. new text end

new text begin State agencies shall assist the study group with any requests for
information the study group considers necessary to complete the study and report under
subdivision 2.
new text end

new text begin Subd. 4. new text end

new text begin Removal; vacancies; expenses. new text end

new text begin Removal of members, vacancies, and
expenses for members shall be as provided in Minnesota Statutes, section 15.059.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires after the submission of the report as
required in subdivision 2.
new text end

Sec. 10. new text begin ADMINISTRATIVE SIMPLIFICATION.
new text end

new text begin All health care providers and health plans that contract with the state of Minnesota
to provide health care services either through the health care programs administered
under Minnesota Statutes, chapters 256B, 256D, and 256L, or through the state employee
group insurance program administered under Minnesota Statutes, chapter 43A, must
use and accept the uniform billing forms and coding requirements established by the
Administrative Uniformity Committee by January 1, 2009.
new text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 62A.301, new text end new text begin is repealed.
new text end

ARTICLE 9

HUMAN SERVICES APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 4,704,029,000 new text end	new text begin $ new text end	new text begin 5,108,412,000 new text end	new text begin $ new text end	new text begin 9,812,441,000 new text end
new text begin State Government Special Revenue new text end		new text begin 59,736,000 new text end		new text begin 59,149,000 new text end		new text begin 118,885,000 new text end
new text begin Health Care Access new text end		new text begin 455,980,000 new text end		new text begin 539,034,000 new text end		new text begin 995,014,000 new text end
new text begin Federal TANF new text end		new text begin 263,973,000 new text end		new text begin 277,817,000 new text end		new text begin 541,790,000 new text end
new text begin Lottery Prize Fund new text end		new text begin 2,186,000 new text end		new text begin 1,791,000 new text end		new text begin 3,977,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 5,486,107,000 new text end	new text begin $ new text end	new text begin 5,986,300,000 new text end	new text begin $ new text end	new text begin 11,472,407,000 new text end

Sec. 2. new text begin HEALTH AND HUMAN SERVICES APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2008" and "2009" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2008, or
June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
year ending June 30, 2007, are effective the day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2008 new text end		new text begin 2009 new text end

Sec. 3. new text begin HUMAN SERVICES new text end

new text begin 5,271,550,000 new text end

new text begin 5,776,015,000 new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 5,271,550,000 new text end

new text begin $ new text end

new text begin 5,776,015,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 4,580,953,000 new text end	new text begin 4,988,115,000 new text end
new text begin State Government Special Revenue new text end	new text begin 550,000 new text end	new text begin 567,000 new text end
new text begin Health Care Access new text end	new text begin 429,888,000 new text end	new text begin 4,988,115,000 new text end
new text begin Federal TANF new text end	new text begin 257,973,000 new text end	new text begin 271,817,000 new text end
new text begin Lottery Prize Fund new text end	new text begin 2,186,000 new text end	new text begin 2,091,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Pay for Performance. (a) Of this
appropriation, $272,000 each year shall
be deposited in a health improvement
account by the commissioner of finance and
shall be available to the commissioner of
human services only under the following
circumstances:
new text end

new text begin (1) $272,000 shall be made available by
the commissioner of finance on January 1,
2009, if the average processing time for
MinnesotaCare applications is 30 days or
less during the period October 1, 2007, to
September 30, 2008; and
new text end

new text begin (2) $272,000 shall be made available by
the commissioner of finance on January 1,
2009, if the commissioner has initiated a
separate treatment program for persons in the
Minnesota sex offenders program who are
between the ages of 18 and 25 by January
1, 2008.
new text end

new text begin (b) Money remaining in the health
improvement account on June 30, 2009, shall
not cancel but shall remain in the account
until appropriated by law.
new text end

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

new text begin Receipts for Systems Projects.
Appropriations and federal receipts for
information system projects for MAXIS,
PRISM, MMIS, and SSIS must be deposited
in the state system account authorized in
Minnesota Statutes, section 256.014. Money
appropriated for computer projects approved
by the Minnesota Office of Enterprise
Technology, funded by the legislature, and
approved by the commissioner of finance,
may be transferred from one project to
another and from development to operations
as the commissioner of human services
considers necessary. Any unexpended
balance in the appropriation for these
projects does not cancel but is available for
ongoing development and operations.
new text end

new text begin Nonfederal Share Transfers. The
nonfederal share of activities for which
federal administrative reimbursement is
appropriated to the commissioner may be
transferred to the special revenue fund.
new text end

new text begin TANF Work Participation Requirements.
In the event that Minnesota satisfies federal
work participation requirements during the
biennia beginning July 1, 2007, and July
1, 2009, general fund savings that result
from reduced maintenance of effort (MOE)
requirements shall be deposited in the
TANF fund. Notwithstanding any contrary
provision in this article, this rider expires
June 30, 2011.
new text end

new text begin TANF Maintenance of Effort. (a) In order
to meet the basic MOE requirements of the
TANF block grant specified under Code
of Federal Regulations, title 45, section
263.1, the commissioner may only report
nonfederal money expended for allowable
activities listed in the following clauses as
TANF/MOE expenditures:
new text end

new text begin (1) MFIP cash, diversionary work program,
and food assistance benefits under Minnesota
Statutes, chapter 256J;
new text end

new text begin (2) the child care assistance programs
under Minnesota Statutes, sections 119B.03
and 119B.05, and county child care
administrative costs under Minnesota
Statutes, section 119B.15;
new text end

new text begin (3) state and county MFIP administrative
costs under Minnesota Statutes, chapters
256J and 256K;
new text end

new text begin (4) state, county, and tribal MFIP
employment services under Minnesota
Statutes, chapters 256J and 256K;
new text end

new text begin (5) expenditures made on behalf of
noncitizen MFIP recipients who qualify
for the medical assistance without federal
financial participation program under
Minnesota Statutes, section 256B.06,
subdivision 4, paragraphs (d), (e), and (j);
and
new text end

new text begin (6) qualifying working family credit
expenditures under Minnesota Statutes,
section 290.0671.
new text end

new text begin (b) The commissioner shall ensure that
sufficient qualified nonfederal expenditures
are made each year to meet the state's
TANF/MOE requirements. For the activities
listed in paragraph (a), clauses (2) to
(6), the commissioner may only report
expenditures that are excluded from the
definition of assistance under Code of
Federal Regulations, title 45, section 260.31.
new text end

new text begin (c) The commissioner shall ensure that the
MOE used by the commissioner of finance
for the February and November forecasts
required under Minnesota Statutes, section
16A.103, contains expenditures under
paragraph (a), clause (1), equal to at least 25
percent of the total required under Code of
Federal Regulations, title 45, section 263.1.
new text end

new text begin (d) Minnesota Statutes, section 256.011,
subdivision 3, which requires that federal
grants or aids secured or obtained under that
subdivision be used to reduce any direct
appropriations provided by law, does not
apply if the grants or aids are federal TANF
funds.
new text end

new text begin (e) Notwithstanding any contrary provision
in this article, paragraph (a), clauses (1) to
(6), and paragraphs (b) to (d), expire June
30, 2011.
new text end

new text begin Working Family Credit Expenditures as
TANF/MOE. The commissioner may claim
as TANF/MOE up to $6,707,000 per year
for fiscal year 2008 through fiscal year 2011.
Notwithstanding any contrary provision in
this article, this rider expires June 30, 2011.
new text end

new text begin Additional Working Family Credit
Expenditures to be Claimed for
TANF/MOE. In addition to the amounts
provided in this section, the commissioner
may count the following amounts of working
family credit expenditure as TANF/MOE:
new text end

new text begin (1) fiscal year 2008, $4,269,000; and
new text end

new text begin (2) fiscal year 2009, $4,889,000.
new text end

new text begin Notwithstanding any contrary provision in
this article, this rider expires June 30, 2011.
new text end

new text begin TANF Transfer to Federal Child Care
and Development Fund. The following
TANF fund amounts are appropriated to
the commissioner for the purposes of MFIP
transition year child care under MFIP,
Minnesota Statutes, section 119B.05:
new text end

new text begin (1) fiscal year 2008, $3,871,000;
new text end

new text begin (2) fiscal year 2009, $8,454,000;
new text end

new text begin (3) fiscal year 2010, $14,033,000; and
new text end

new text begin (4) fiscal year 2011, $19,673,000.
new text end

new text begin The commissioner shall authorize transfer
of sufficient TANF funds to the federal
Child Care and Development Fund to meet
this appropriation and shall ensure that all
transferred funds are expended according
to the federal Child Care and Development
Fund regulations.
new text end

new text begin Capitation Rate Increase. Of the health care
access fund appropriations to the University
of Minnesota in the higher education
omnibus appropriation bill, $2,157,000 in
fiscal year 2008 and $2,157,000 in fiscal year
2009 are to be used to increase the capitation
payments under Minnesota Statutes, section
256B.69.
new text end

new text begin Notwithstanding any contrary provision in
this article, this rider expires June 30, 2011.
new text end

new text begin Subd. 2. new text end new text begin Agency Management new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Financial Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 6,471,000 new text end	new text begin 6,975,000 new text end
new text begin Health Care Access new text end	new text begin 800,000 new text end	new text begin 807,000 new text end
new text begin Federal TANF new text end	new text begin 122,000 new text end	new text begin 122,000 new text end

new text begin Base Adjustment. The general fund base
is increased by $454,000 in fiscal year 2010
and $454,000 in fiscal year 2011 for financial
operations.
new text end

new text begin (b) Legal and Regulation Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 12,807,000 new text end	new text begin 12,790,000 new text end
new text begin State Government Special Revenue new text end	new text begin 428,000 new text end	new text begin 442,000 new text end
new text begin Health Care Access new text end	new text begin 902,000 new text end	new text begin 930,000 new text end
new text begin Federal TANF new text end	new text begin 100,000 new text end	new text begin 100,000 new text end

new text begin (c) Management Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,340,000 new text end	new text begin 4,436,000 new text end
new text begin Health Care Access new text end	new text begin 236,000 new text end	new text begin 244,000 new text end

new text begin (d) Information Technology Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 23,966,000 new text end	new text begin 23,956,000 new text end
new text begin Health Care Access new text end	new text begin 6,018,000 new text end	new text begin 5,977,000 new text end

new text begin (e) Health Improvement Account new text end

new text begin General new text end

new text begin 272,000 new text end

new text begin 272,000 new text end

new text begin Subd. 3. new text end new text begin Revenue and Pass-Through Expenditures new text end

new text begin Federal TANF new text end

new text begin 56,671,000 new text end

new text begin 59,216,000 new text end

new text begin Subd. 4. new text end new text begin Children and Economic Assistance Grants new text end

new text begin The amounts that may be spent from this
appropriation for each purpose are as follows:
new text end

new text begin (a) MFIP/DWP Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 62,147,000 new text end	new text begin 63,181,000 new text end
new text begin Federal TANF new text end	new text begin 79,287,000 new text end	new text begin 86,337,000 new text end

new text begin (b) Support Services Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 8,715,000 new text end	new text begin 8,715,000 new text end
new text begin Federal TANF new text end	new text begin 116,748,000 new text end	new text begin 118,571,000 new text end

new text begin new text begin Supported Work. new text end (1) $12,759,000 is
appropriated from the TANF reserve account
to the commissioner for the biennium
beginning July 1, 2007, for supported
work for MFIP participants, to be allocated
to counties based on the criteria under
clauses (2) and (3). Paid transitional work
experience and other supported employment
under this rider provides a continuum of
employment assistance, including outreach
and recruitment, program orientation
and intake, testing and assessment, job
development and marketing, preworksite
training, supported worksite experience, job
coaching, and postplacement follow-up, in
addition to extensive case management and
referral services.
new text end

new text begin (2) A county is eligible to receive an
allocation under this rider if:
new text end

new text begin (i) the county is not meeting the federal work
participation rate;
new text end

new text begin (ii) the county has participants who are
required to perform work activities under
Minnesota Statutes, chapter 256J, but are not
meeting hourly work requirements; and
new text end

new text begin (iii) the county has assessed participants who
have completed six weeks of job search or
are required to perform work activities and
are not meeting the hourly requirements, and
the county has determined that the participant
would benefit from working in a supported
work environment.
new text end

new text begin (3) A county may also be eligible for funds
in order to contract for supplemental hours
of paid work at the participant's child's place
of education, child care location, or the
child's physical or mental health treatment
facility or office. This grant to counties is
specifically for MFIP participants who need
to work up to five hours more per week in
order to meet the hourly work requirement,
and the participant's employer cannot or will
not offer more hours to the participant.
new text end

new text begin Work Study. $1,500,000 is appropriated
from the TANF reserve account to the
commissioner to be transferred to the
Minnesota Office of Higher Education
for the biennium beginning July 1, 2007,
for work study grants under Minnesota
Statutes, section 136A.233, specifically
for low-income individuals who receive
assistance under Minnesota Statutes,
chapter 256J, and for grants to opportunities
industrialization centers.
new text end

new text begin Car Loans and Car Repairs. $3,000,000 is
appropriated from the TANF reserve account
to the commissioner for the biennium
beginning July 1, 2007, for programs
that provide car loans and car repairs to
individuals who receive assistance under
Minnesota Statutes, chapter 256J.
new text end

new text begin Integrated Service Projects. $6,000,000 is
appropriated from the TANF reserve account
to the commissioner effective January 1,
2008, to fund the integrated services project
for MFIP families.
new text end

new text begin TANF Prior Appropriation Cancellation.
Notwithstanding Laws 2001, First Special
Session chapter 9, article 17, section
2, subdivision 11, paragraph (b), any
unexpended TANF funds appropriated to the
commissioner to contract with the Board of
Trustees of Minnesota State Colleges and
Universities, to provide tuition waivers to
employees of health care and human service
providers that are members of qualifying
consortia operating under Minnesota
Statutes, sections 116L.10 to 116L.15, must
cancel at the end of fiscal year 2007.
new text end

new text begin (c) MFIP Child Care Assistance Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 74,236,000 new text end	new text begin 70,700,000 new text end
new text begin TANF new text end	new text begin 3,709,000 new text end	new text begin 6,135,000 new text end

new text begin (d) Basic Sliding Fee Child Care Assistance Grants new text end

new text begin General new text end

new text begin 41,985,000 new text end

new text begin 46,454,000 new text end

new text begin Base Adjustment. The general fund base
is increased by $758,000 in fiscal year 2010
and $712,000 in fiscal year 2011 for basic
sliding fee child care assistance grants.
new text end

new text begin (e) Child Care Development Grants new text end

new text begin General new text end

new text begin 1,615,000 new text end

new text begin 1,615,000 new text end

new text begin new text begin Increased Child Care Provider
Connections. new text end (1) Of the general
fund appropriation, $200,000 is to the
commissioner for the following purposes:
$50,000 each year is for a grant to Hennepin
County, and $50,000 each year is for a grant
to Ramsey County. The two counties shall
each contract with a nonprofit organization
to work with the contracting county
and county-based licensed family child
care providers to facilitate county-based
information regarding family and children's
resources and to make training and peer
support available to licensed family child
care providers consistent with paragraph (b).
These appropriations are available until June
30, 2009, and shall not become part of base
level funding for the biennium beginning
July 1, 2009.
new text end

new text begin (2) Programs to improve child care provider
connections to county services shall be
established in Hennepin and Ramsey
Counties to:
new text end

new text begin (i) improve county contact activities
with county licensed family child care
providers that facilitate utilization of county
educational, social service, public health,
and economic assistance services by eligible
families, parents, and children using licensed
family child care; and
new text end

new text begin (ii) support licensed family child care
providers to qualify as quality-rated child
care providers through peer support and
coaching networks.
new text end

new text begin Hennepin and Ramsey Counties shall
contract with a nonprofit organization under
paragraph (a) that utilizes licensed family
child care providers as contacts for families
using licensed family child care and to
provide peer support to licensed family child
care providers.
new text end

new text begin (iii) Hennepin and Ramsey Counties must
evaluate the effect of increasing contact
with county-based licensed family child
care providers and report their findings to
the appropriate legislative committees by
February 15, 2010.
new text end

new text begin (iv) Notwithstanding any contrary provision
in this article, this rider expires on June 30,
2010.
new text end

new text begin new text begin Base Adjustment. new text end The general fund base is
decreased by $100,000 in fiscal year 2010
and by $100,000 in fiscal year 2011 for child
care development grants.
new text end

new text begin (f) Child Support Enforcement Grants new text end

new text begin General new text end

new text begin 3,705,000 new text end

new text begin 3,705,000 new text end

new text begin (g) Children's Services Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 65,245,000 new text end	new text begin 80,826,000 new text end
new text begin Health Care Access new text end	new text begin 250,000 new text end	new text begin -0- new text end

new text begin Privatized Adoption Grants. Federal
reimbursement for privatized adoption grant
and foster care recruitment grant expenditures
is appropriated to the commissioner for
adoption grants and foster care and adoption
administrative purposes.
new text end

new text begin Adoption Assistance Incentive Grants.
Federal funds available during fiscal year
2008 and fiscal year 2009 for the adoption
incentive grants are appropriated to the
commissioner for these purposes.
new text end

new text begin Adoption Assistance and Relative Custody
Assistance. The commissioner may transfer
unencumbered appropriation balances for
adoption assistance and relative custody
assistance between fiscal years and between
programs.
new text end

new text begin Adoption Assistance and Relative
Custody Assistance Subsidy Payment
Increase. Notwithstanding Minnesota
Rules, part 9560.0083, subparts 5 and 6, the
commissioner shall increase the payment
schedules for basic and supplemental
maintenance needs subsidies by 3.95 percent
effective July 1, 2007. The commissioner
may make cost-neutral adjustments between
schedules and between brackets within
schedules to allow for whole-dollar bracket
levels and account for differential cost
increases in caring for children with special
needs. Counties shall implement the relative
custody assistance payment increases on or
before December 31, 2007, and shall make
payment adjustments retroactive to July 1,
2007.
new text end

new text begin new text begin Fetal Alcohol Syndrome. new text end Of the general
fund appropriation, $75,000 in fiscal year
2008 and $75,000 in fiscal year 2009 are
to the commissioner to transfer as grants
to three programs that provide services
to reduce fetal alcohol syndrome under
Minnesota Statutes, section 145.9266. The
three program grantees are the University
of Minnesota, the Meeker-McLeod-Sibley
Community, and the American Indian Family
Center. This appropriation shall become part
of the base appropriation.
new text end

new text begin Base Adjustment. The general fund base is
decreased by $1,246,000 in fiscal year 2010
and decreased by $1,243,000 in fiscal year
2011 for children services grants.
new text end

new text begin (h) Children and Community Services Grants new text end

new text begin General new text end

new text begin 68,785,000 new text end

new text begin 69,367,000 new text end

new text begin Base Adjustment. The general fund base is
increased by $232,000 in fiscal year 2010 and
by $232,000 in fiscal year 2011 for children
and community service grants.
new text end

new text begin (i) General Assistance Grants new text end

new text begin General new text end

new text begin 37,876,000 new text end

new text begin 38,253,000 new text end

new text begin General Assistance Standard. The
commissioner shall set the monthly standard
of assistance for general assistance units
consisting of an adult recipient who is
childless and unmarried or living apart
from parents or a legal guardian at $203.
The commissioner may reduce this amount
according to Laws 1997, chapter 85, article
3, section 54.
new text end

new text begin Emergency General Assistance. The
amount appropriated for emergency general
assistance funds is limited to no more
than $7,889,812 in fiscal year 2008 and
$7,889,812 in fiscal year 2009. Funds
to counties must be allocated by the
commissioner using the allocation method
specified in Minnesota Statutes, section
256D.06.
new text end

new text begin (j) Minnesota Supplemental Aid Grants new text end

new text begin General new text end

new text begin 30,505,000 new text end

new text begin 30,812,000 new text end

new text begin Emergency Minnesota Supplemental
Aid Funds. The amount appropriated for
emergency Minnesota supplemental aid
funds is limited to no more than $1,100,000
in fiscal year 2008 and $1,100,000 in fiscal
year 2009. Funds to counties must be
allocated by the commissioner using the
allocation method specified in Minnesota
Statutes, section 256D.46.
new text end

new text begin (k) Group Residential Housing Grants new text end

new text begin General new text end

new text begin 90,891,000 new text end

new text begin 98,365,000 new text end

new text begin (l) Other Children and Economic Assistance Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 18,383,000 new text end	new text begin 17,433,000 new text end
new text begin TANF new text end	new text begin 140,000 new text end	new text begin 140,000 new text end

new text begin Grants for Programs Serving Young
Parents. Of the TANF fund appropriation,
$140,000 each year is for a grant to a program
or programs that provide comprehensive
services through a private, nonprofit agency
to young parents in Hennepin County who
have dropped out of school and are receiving
public assistance. The program administrator
shall report annually to the commissioner on
skills development, education, job training,
and job placement outcomes for program
participants.
new text end

new text begin Alcohol and Drug Intervention. Of the
general fund appropriation in fiscal year
2008, $450,000 is to the commissioner for
the purposes of a program in Ramsey County
that provides early intervention efforts
designed to discourage pregnant women
from using alcohol and illegal drugs. The
appropriation shall not become part of base
level funding and is available until spent.
new text end

new text begin Subd. 5. new text end new text begin Children and Economic Assistance Management new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Children and Economic Assistance Administration new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 9,469,000 new text end	new text begin 9,742,000 new text end
new text begin Federal TANF new text end	new text begin 1,196,000 new text end	new text begin 1,196,000 new text end

new text begin Base Adjustment. The general fund base is
decreased by $127,000 in fiscal year 2010
and decreased by $215,000 in fiscal year
2011 for children and economic assistance
administration.
new text end

new text begin (b) Children and Economic Assistance Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 35,628,000 new text end	new text begin 36,376,000 new text end
new text begin Health Care Access new text end	new text begin 351,000 new text end	new text begin 362,000 new text end

new text begin Financial Institution Data Match and
Payment of Fees. The commissioner is
authorized to allocate up to $310,000 in
fiscal year 2008 and $310,000 in fiscal
year 2009 from the PRISM special revenue
account to make payments to financial
institutions in exchange for performing
data matches between account information
held by financial institutions and the public
authority's database of child support obligors
as authorized by Minnesota Statutes, section
13B.06, subdivision 7.
new text end

new text begin Base Adjustment. The general fund base is
decreased by $337,000 in fiscal year 2010
and decreased by $337,000 in fiscal year
2011.
new text end

new text begin Subd. 6. new text end new text begin Basic Health Care Grants new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) MinnesotaCare Grants new text end

new text begin Health Care Access new text end

new text begin 393,204,000 new text end

new text begin 477,552,000 new text end

new text begin HealthMatch Delay. Of this appropriation,
$2,560,000 the first year and $21,735,000
the second year are for the MinnesotaCare
program costs related to a six-month delay in
implementation of the HealthMatch program.
new text end

new text begin (b) MA Basic Health Care - Families and Children new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 742,872,000 new text end	new text begin 843,946,000 new text end
new text begin Health Care Access new text end	new text begin 1,672,000 new text end	new text begin -0- new text end

new text begin (c) MA Basic Health Care - Elderly and Disabled new text end

new text begin General new text end

new text begin 1,001,995,000 new text end

new text begin 1,113,247,000 new text end

new text begin new text begin Physician-Directed Care Coordination. new text end In
addition to medical assistance reimbursement
under Minnesota Statutes, sections
256B.0625 and 256B.76, clinics participating
in physician-directed care coordination under
Minnesota Statutes, section 256B.0625, shall
also receive a monthly payment per client
when the clinic serves an eligible client. The
payments across the program must average
$50 per month per client.
new text end

new text begin (d) General Assistance Medical Care Grants new text end

new text begin General new text end

new text begin 239,090,000 new text end

new text begin 251,664,000 new text end

new text begin (e) Other Health Care Grants new text end

new text begin General new text end

new text begin 1,421,000 new text end

new text begin 921,000 new text end

new text begin Prenatal Alcohol or Drug Use. Of the
general fund appropriation, $75,000 each
year is to award grants beginning July 1,
2007, to programs that provide services
under Minnesota Statutes, section 254A.171,
in Pine, Kanabec, and Carlton Counties. This
appropriation shall become part of the base
appropriation.
new text end

new text begin Oral Health Care Innovations Grants. (1)
Of the general fund appropriation, $500,000
for the fiscal year beginning July 1, 2007,
is to award competitive oral health care
innovations grants to organizations described
in Minnesota Statutes, section 256B.76,
paragraph (b), clause (4), consistent with the
department's oral health care system model.
In awarding grants, the commissioner shall
give priority to proposals that:
new text end

new text begin (i) provide oral health care for children ages
birth to 18 years in St. Louis and Beltrami
Counties and one additional underserved
area of the state;
new text end

new text begin (ii) create a single point of contact linking
patients and providers through a 1-800
telephone number or a Web site;
new text end

new text begin (iii) utilize collaborative practice dental
hygienists to provide assessment, triage, and
referral of children in Head Start centers and
schools to private dentists and community
clinics for necessary dental care;
new text end

new text begin (iv) create an open network of dental
providers to serve children enrolled in public
programs; and
new text end

new text begin (v) establish an electronic record-keeping
system to measure changes in oral health
status and access to care and evaluate Head
Start and school program outcomes.
new text end

new text begin (2) This grant shall not become part of base
level funding.
new text end

new text begin Effects of Changes in State Health Policies.
Of the general fund appropriation for the
first year, $300,000 is to the commissioner
to provide a grant to a research center
associated with a safety net hospital and
county-affiliated health system to develop
the capabilities necessary for evaluating the
effects of changes in state health policies
on low-income and uninsured individuals,
including the impact on state health care
program costs, health outcomes, cost-shifting
to different units and levels of government,
and utilization patterns, including use of
emergency room care and hospitalization
rates. This is a onetime appropriation.
new text end

new text begin Subd. 7. new text end new text begin Health Care Management new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Health Care Administration new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 11,340,000 new text end	new text begin 11,470,000 new text end
new text begin Health Care Access new text end	new text begin 1,989,000 new text end	new text begin 1,994,000 new text end

new text begin Minnesota Senior Health Options
Reimbursement. Federal administrative
reimbursement resulting from the Minnesota
senior health options project is appropriated
to the commissioner for this activity.
new text end

new text begin Utilization Review. Federal administrative
reimbursement resulting from prior
authorization and inpatient admission
certification by a professional review
organization is dedicated to the commissioner
for these purposes. A portion of these funds
must be used for activities to decrease
unnecessary pharmaceutical costs in medical
assistance.
new text end

new text begin Base Adjustment. The health care access
fund base is decreased by $31,000 in fiscal
year 2010 and decreased by $31,000 in fiscal
year 2011 for health care administration.
new text end

new text begin Base Adjustment. The general fund base is
decreased by $128,000 in fiscal year 2010
and decreased by $126,000 in fiscal year
2011 for health care administration.
new text end

new text begin (b) Health Care Operations new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 21,423,000 new text end	new text begin 22,014,000 new text end
new text begin Health Care Access new text end	new text begin 23,423,000 new text end	new text begin 24,809,000 new text end

new text begin Base Adjustment. The health care access
fund base is increased by $1,795,000 in fiscal
year 2010 and $1,480,000 in fiscal year 2011
for health care operations.
new text end

new text begin new text begin Outreach Grants. new text end The following
appropriations are to the commissioner for
the Minnesota health care outreach program
under Minnesota Statutes, section 256.962:
new text end

new text begin (1) $1,000,000 each year from the health
care access fund for a statewide outreach
campaign under Minnesota Statutes, section
256.962, subdivision 1;
new text end

new text begin (2) $700,000 each year from the general
fund and $300,000 each year from the health
care access fund for the incentive program
under Minnesota Statutes, section 256.962,
subdivision 5; and
new text end

new text begin (3) $150,000 each year from the health
care access fund for a grant to a nonprofit
organization to provide a statewide toll-free
number under Minnesota Statutes, section
256.962, subdivision 4.
new text end

new text begin Base Adjustment. The general fund base is
decreased by $36,000 in fiscal year 2010 and
decreased by $36,000 in fiscal year 2011 for
health care operations.
new text end

new text begin Subd. 8. new text end new text begin Continuing Care Grants new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Aging and Adult Services Grant new text end

new text begin General new text end

new text begin 14,288,000 new text end

new text begin 14,712,000 new text end

new text begin new text begin Reverse Mortgage Incentive Program. new text end
Of the general fund appropriation to the
commissioner for the biennium beginning
July 1, 2007, the following amounts are for
the purposes listed:
new text end

new text begin (1) $178,000 the first year and $130,000 the
second year are for costs associated with the
reverse mortgage incentive program; and
new text end

new text begin (2) $9,000 each year is to be transferred
to the commissioner of the Minnesota
Housing Finance Agency for the purposes of
Minnesota Statutes, section 462A.05.
new text end

new text begin Information and Assistance
Reimbursement. Federal administrative
reimbursement obtained from information
and assistance services provided by the
Senior LinkAge Line to people who are
identified as eligible for medical assistance
is appropriated to the commissioner for this
activity.
new text end

new text begin Base Adjustment. The general fund base
is increased by $169,000 in fiscal year 2010
and increased by $169,000 in fiscal year
2011 for aging and adult services grants.
new text end

new text begin (b) Alternative Care Grants new text end

new text begin General new text end

new text begin 50,028,000 new text end

new text begin 52,090,000 new text end

new text begin Alternative Care Transfer. Any money
allocated to the alternative care program that
is not spent for the purposes indicated does
not cancel but is transferred to the medical
assistance account.
new text end

new text begin Base Adjustment. The general fund base is
increased by $808,000 in fiscal year 2010 and
$1,032,000 in fiscal year 2011 for alternative
care grants.
new text end

new text begin (c) Medical Assistance Grants - Long-Term Care Facilities new text end

new text begin General new text end

new text begin 496,601,000 new text end

new text begin 507,996,000 new text end

new text begin New Nursing Facility Reimbursement
System Delay. Notwithstanding Minnesota
Statutes, section 256B.441, subdivision 1,
paragraph (c), the commissioner shall begin
to phase in the new reimbursement system for
nursing facilities on or after October 1, 2009.
Notwithstanding any contrary provision in
this article, this paragraph expires December
31, 2009.
new text end

new text begin Long-Term Care Consultation Funding
Increase. For the rate year beginning
October 1, 2008, the county long-term
care consultation allocations in Minnesota
Statutes, section 256B.0911, subdivision
6, must be increased based on the number
of transitional long-term care consultation
visits projected by the commissioner in
each county. For the rate year beginning
October 1, 2009, final allocations must be
determined based on the average between
the actual number of transitional long-term
care visits that were conducted in the prior
12-month period and the projected number
of consultations that will be provided in
the rate year beginning October 1, 2009.
Notwithstanding any contrary provision in
this article, this paragraph expires June 30,
2010.
new text end

new text begin Nursing Home Moratorium Exceptions.
During fiscal year 2008, the commissioner of
health may approve moratorium exception
projects under Minnesota Statutes, section
144A.073, for which the full annualized
state share of medical assistance costs does
not exceed $3,000,000. During fiscal year
2009, the commissioner of health may
approve moratorium exception projects
under Minnesota Statutes, section 144A.073,
for which the full annualized state share of
medical assistance costs does not exceed
$3,000,000 less the amount approved during
the first year. Priority shall be given to
proposals that entail:
new text end

new text begin (1) complete building replacement in
conjunction with reductions in the number of
beds in a county, with greater weight given
to projects in counties with a greater than
average number of beds per 1,000 elderly;
new text end

new text begin (2) technology improvements;
new text end

new text begin (3) improvements in life safety;
new text end

new text begin (4) construction of nursing facilities that are
part of senior services campuses; and
new text end

new text begin (5) improvements in the work environment.
new text end

new text begin (d) Medical Assistance Grants - Long-Term Care Waivers and Home Care Grants new text end

new text begin General new text end

new text begin 961,658,000 new text end

new text begin 1,082,746,000 new text end

new text begin (e) Mental Health Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 59,105,000 new text end	new text begin 65,617,000 new text end
new text begin Health Care Access new text end	new text begin 750,000 new text end	new text begin 750,000 new text end
new text begin Lottery Prize new text end	new text begin 1,608,000 new text end	new text begin 1,608,000 new text end

new text begin new text begin Transfer of Funds. new text end (a) The commissioner
shall transfer to qualifying counties medical
assistance funds for fiscal year 2007
equal to the difference between the state
allocation for community alternatives for
disabled individuals (CADI) and actual
county spending for persons who have
been receiving personal care assistant
services but were transferred to the CADI
waivered services program according to
Laws 2006, chapter 282, article 20, section
35. The medical assistance funds shall be
transferred from appropriations for personal
care assistant services that went unspent
as a result of the provisions of Laws 2006,
chapter 282, article 20, section 35.
new text end

new text begin (b) Counties that qualify under paragraph (a)
shall provide to the commissioner by June 10,
2007, all necessary information regarding the
funding amount to which they are entitled.
The commissioner shall transfer funds to
qualifying counties by June 25, 2007.
new text end

new text begin (c) The amounts provided to counties under
this section shall become part of each
county's base level state allocation for CADI
for the biennium beginning July 1, 2007.
new text end

new text begin (d) This rider is effective the day following
final enactment.
new text end

new text begin Base Adjustment. The general fund base is
decreased by $2,858,000 in fiscal year 2010
and by $2,858,000 in fiscal year 2011 for
mental health grants.
new text end

new text begin Base Adjustment. The lottery prize fund
base is decreased by $300,000 in fiscal year
2010 and decreased by $300,000 in fiscal
year 2011 for mental health grants.
new text end

new text begin (f) Deaf and Hard-of-Hearing Grants new text end

new text begin General new text end

new text begin 1,891,000 new text end

new text begin 2,323,000 new text end

new text begin Base Adjustment. The general fund base is
increased by $19,000 in fiscal year 2010 and
increased by $19,000 in fiscal year 2011 for
deaf and hard-of-hearing grants.
new text end

new text begin (g) Chemical Dependency Entitlement Grants new text end

new text begin General new text end

new text begin 79,678,000 new text end

new text begin 90,873,000 new text end

new text begin (h) Chemical Dependency Nonentitlement Grants new text end

new text begin General new text end

new text begin 1,055,000 new text end

new text begin 1,055,000 new text end

new text begin (i) Other Continuing Care Grants new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 16,414,000 new text end	new text begin 17,315,000 new text end
new text begin Lottery Prize Fund new text end	new text begin 325,000 new text end	new text begin 225,000 new text end

new text begin new text begin Quality Assurance System Expansion. new text end Of
the general fund appropriation, $200,000
in fiscal year 2008 and $200,000 in fiscal
year 2009 are to develop a statewide quality
assurance and improvement system under
Minnesota Statutes, section 256B.096, for
persons receiving disability services. Any
unspent portion of the appropriation for
the first year shall not cancel but shall be
available for the second year. These are
onetime appropriations.
new text end

new text begin new text begin Home Health Reimbursement Study. new text end (1)
Of the general fund appropriation, $100,000
in fiscal year 2008 is to the commissioner to
contract with a Minnesota-based, nonprofit
quality improvement organization that
collaborates with providers and consumers
in health improvement activities, for the
purpose of conducting an independent
analysis of the reimbursement methodologies
for home health services provided to
enrollees in the Minnesota senior health
options and Minnesota disability health
options programs.
new text end

new text begin (2) The analysis of reimbursement
methodologies shall include, at a minimum,
a review of:
new text end

new text begin (i) any limitations on flexibility in services or
technology for the home health provider;
new text end

new text begin (ii) the Medicare program reimbursement
methodologies, including possible
alternatives, and Medicare benefits;
new text end

new text begin (iii) potential access issues raised by current
reimbursement methodologies; and
new text end

new text begin (iv) incentives, including episodic care
reimbursement methodologies, to promote
best practices and achieve identified clinical
outcomes.
new text end

new text begin (3) The analysis and any supporting
recommendations shall be presented to the
commissioner by December 1, 2007, and
to the chairs of the appropriate legislative
committees by December 15, 2007. In no
event shall the study disclose any specific
reimbursement amount or methodologies
attributable to an individual health carrier.
new text end

new text begin (4) In conducting its analysis, the
organization described in paragraph (a)
shall consult with the commissioner, the
Minnesota Home Care Association, managed
care organizations, and other interested
home health entities and advocates, and
shall convene the parties to discuss pertinent
issues.
new text end

new text begin new text begin Department of Employment and
Economic Development Transfer. new text end For
fiscal year 2008, the commissioner of the
Department of Employment and Economic
Development shall transfer $200,000 from
the methamphetamine abatement loan fund
to the commissioner of human services for
methamphetamine treatment programs.
new text end

new text begin Kinship Navigator Program. Of the
general fund appropriation, $175,000 in
fiscal year 2008 and $175,000 in fiscal year
2009 is to the commissioner for a two-year
demonstration grant, to be transferred to a
nonprofit statewide organization advocating
for, supporting, and providing information
and resources to individuals raising their
grandchildren, other related children, or
children of friends for purposes of providing
support to grandparents or relatives who are
raising kinship children. The demonstration
grant sites must include a central site in the
metropolitan area and another site in the
Bemidji region. The support must provide a
one-stop services program. The services that
may be provided include, but are not limited
to, legal services, education, information,
family activities, support groups, mental
health access, advocacy, mentors, and
information related to foster care licensing.
The funds may also be used for a media
campaign to inform kinship families about
available information and services, support
sites, and other program development.
For the biennium beginning July 1, 2009,
base level funding for these grants shall be
$160,000 each year.
new text end

new text begin Compulsive Gambling. (1) $225,000 in
fiscal year 2007 and $225,000 in fiscal year
2008 are appropriated from the lottery prize
fund to the commissioner for a grant to the
state affiliate recognized by the National
Council on Problem Gambling. The affiliate
must provide services to increase public
awareness of problem gambling, education,
and training for individuals and organizations
providing effective treatment services to
problem gamblers and their families, and
research relating to problem gambling.
These services must be complimentary to
and not duplicative of the services provided
through the problem gambling program
administered by the commissioner. This
grant does not prevent the commissioner
from regular monitoring and oversight of the
grant or the ability to reallocate the funds to
other services within the problem gambling
program for nonperformance of duties by
the grantee. Of this appropriation, $100,000
in fiscal year 2007 and $100,000 in fiscal
year 2008 are contingent on the contribution
of nonstate matching funds. Matching
funds may be either cash or qualifying
in-kind contributions. The commissioner of
finance may disburse the state portion of the
matching funds in increments of $25,000
upon receipt of a commitment for an equal
amount of matching nonstate funds. These
are onetime appropriations.
new text end

new text begin (2) $100,000 in fiscal year 2007 is
appropriated from the lottery prize fund to
the commissioner for a grant or grants to be
awarded competitively to develop programs
and services for problem gambling treatment,
prevention, and education in immigrant
communities. This appropriation is available
until June 30, 2009, at which time the
project must be completed and final products
delivered, unless an earlier completion date
is specified in the work program.
new text end

new text begin (3) $300,000 in fiscal year 2008 and $300,000
in fiscal year 2009 are appropriated from the
lottery prize fund to the commissioner for
purposes of compulsive gambling education,
assessment, and treatment, under Minnesota
Statutes, section 245.98.
new text end

new text begin (4) $100,000 each year is appropriated from
the lottery prize fund to the commissioner to
continue the study currently being done on
compulsive gambling treatment effectiveness
and long-term effects of gambling.
new text end

new text begin Base Adjustment. The general fund base is
decreased by $237,000 in fiscal year 2010
and decreased by $192,000 in fiscal year
2011 for other continuing care grants.
new text end

new text begin Base Adjustment. The lottery prize fund
base is decreased by $125,000 in fiscal year
2010 and by $125,000 in fiscal year 2011 for
other continuing care grants.
new text end

new text begin Subd. 9. new text end new text begin Continuing Care Management new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 18,642,000 new text end	new text begin 18,998,000 new text end
new text begin State Government Special Revenue new text end	new text begin 122,000 new text end	new text begin 125,000 new text end
new text begin Health Care Access new text end	new text begin 293,000 new text end	new text begin -0- new text end
new text begin Lottery Prize new text end	new text begin 253,000 new text end	new text begin 258,000 new text end

new text begin Leech Lake Youth Treatment Center
Proposal. (1) Of the general fund
appropriation, $75,000 in fiscal year 2008
and $75,000 in fiscal year 2009 are to the
commissioner to provide a planning grant to
address the unmet need for local, effective,
culturally relevant alcohol and drug treatment
for American Indian youth and develop
a plan for a family-based youth treatment
center in the Leech Lake area. The planning
grant must be provided to a volunteer board
consisting of at least four members appointed
by the commissioner, to include at least the
following:
new text end

new text begin (i) two members of the Leech Lake Tribal
Council or their designees;
new text end

new text begin (ii) one member appointed by the Cass
County Social Services administrator; and
new text end

new text begin (iii) one member appointed by the Cass
Lake-Bena Public School superintendent.
new text end

new text begin (2) The plan must include:
new text end

new text begin (i) conducting an interest, feasibility, and
suitability of location study;
new text end

new text begin (ii) defining the scope of programs and
services to be offered;
new text end

new text begin (iii) defining site use limitations and
restrictions, including physical and capacity;
new text end

new text begin (iv) defining facilities required for programs
and services offered;
new text end

new text begin (v) identifying partners, partnership roles,
and partner resources;
new text end

new text begin (vi) developing proposed operating and
maintenance budgets;
new text end

new text begin (vii) identifying funding sources;
new text end

new text begin (viii) developing a long-term funding plan;
and
new text end

new text begin (ix) developing a formal steering committee,
structure, and bylaws.
new text end

new text begin (3) The plan is due to the legislative
committees having jurisdiction over
chemical health issues no later than
September 2008 in order to provide the 12
months necessary to complete the plan.
new text end

new text begin Base Adjustment. The general fund base is
decreased by $235,000 in fiscal year 2010
and by $235,000 in fiscal year 2011 for
continuing care management.
new text end

new text begin Base Adjustment. The base of the lottery
prize fund is decreased by $100,000 in fiscal
year 2010 and by $100,000 in fiscal year
2011.
new text end

new text begin new text begin Establishing Certification Method. new text end Of
the general fund appropriation, $100,000 in
fiscal year 2008 is to establish a method to
collect documentation from local agencies
certifying that providers contracted to
provide home and community-based waiver
services meet basic health, safety, and
protection of rights standards for the home
and community-based waiver for persons
with traumatic brain injury, the community
alternatives for disabled individuals waiver,
and the community alternative care waiver.
This is a onetime appropriation.
new text end

new text begin Subd. 10. new text end new text begin State-Operated Services new text end

new text begin Transfer Authority Related to
State-Operated Services. Funds
appropriated to finance state-operated
services programs and administrative
services may be transferred between fiscal
years of the biennium with the approval of
the commissioner of finance.
new text end

new text begin The amounts that may be spent from the
appropriation for each purpose are as follows:
new text end

new text begin (a) Mental Health Services new text end

new text begin General new text end

new text begin 115,970,000 new text end

new text begin 119,795,000 new text end

new text begin Appropriation Limitation. No part of
the appropriation in this article to the
commissioner for mental health treatment
services at the regional treatment centers
shall be used for the Minnesota sex offender
program.
new text end

new text begin (b) Minnesota Sex Offender Services new text end

new text begin General new text end

new text begin 67,719,000 new text end

new text begin 62,787,000 new text end

new text begin (c) Minnesota Security Hospital and METO Services new text end

new text begin General new text end

new text begin 82,656,000 new text end

new text begin 84,836,000 new text end

new text begin new text begin Internet-Based Resource. new text end The
Internet-based resource developed as
part of the evidence-based methamphetamine
treatment program for women at the
Willmar campus shall be transferred to the
commissioner. The commissioner shall
maintain the resource.
new text end

new text begin Minnesota Security Hospital. For the
purposes of enhancing the safety of
the public, improving supervision, and
enhancing community-based mental health
treatment, state-operated services may
establish additional community capacity
for providing treatment and supervision
of clients who have been ordered into
less restrictive alternative care from the
state-operated services transitional services
program consistent with Minnesota Statutes,
section 246.014.
new text end

Sec. 4. new text begin COMMISSIONER OF HEALTH new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 153,739,000 new text end

new text begin $ new text end

new text begin 147,968,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 77,720,000 new text end	new text begin 72,943,000 new text end
new text begin State Government Special Revenue new text end	new text begin 43,927,000 new text end	new text begin 43,416,000 new text end
new text begin Health Care Access new text end	new text begin 26,092,000 new text end	new text begin 25,609,000 new text end
new text begin Federal TANF new text end	new text begin 6,000,000 new text end	new text begin 6,000,000 new text end

new text begin Pay for Performance. (1) For the biennium
beginning July 1, 2009, $91,000 each year
shall be deposited in a health improvement
account by the commissioner of finance and
shall be available to the board, provided that
by January 1, 2011, the state has met the
health disparity elimination goals established
in Minnesota Statutes, section 145.928,
subdivision 1.
new text end

new text begin (2) Money remaining in the health
improvement account on June 30, 2011, shall
not cancel but shall remain in the account
until appropriated by law.
new text end

new text begin (3) Notwithstanding any contrary provision
of this article, this rider shall not expire.
new text end

new text begin Transfer from the State Government
Special Revenue Fund. During the
fiscal year beginning July 1, 2007, the
commissioner shall transfer $7,200,000 from
the state government special revenue fund to
the general fund.
new text end

new text begin Subd. 2. new text end new text begin Community and Family Health Promotion new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 44,760,000 new text end	new text begin 44,928,000 new text end
new text begin State Government Special Revenue new text end	new text begin 870,000 new text end	new text begin 876,000 new text end
new text begin Health Care Access new text end	new text begin 3,553,000 new text end	new text begin 3,591,000 new text end
new text begin Federal TANF new text end	new text begin 3,579,000 new text end	new text begin 3,579,000 new text end

new text begin new text begin TANF Appropriations. new text end $5,817,000 of the
TANF funds in the first year and $8,502,000
in the second year are appropriated to
the commissioner for home visiting and
nutritional services listed under Minnesota
Statutes, section 145.882, subdivision 7,
clauses (6) and (7). Funding shall be
distributed to community health boards based
on Minnesota Statutes, section 145A.131,
subdivision 1.
new text end

new text begin TANF Carryforward. Any unexpended
balance of the TANF appropriation in the
first year of the biennium does not cancel but
is available for the second year.
new text end

new text begin Federally Qualified Health Centers. Of
the health care access fund appropriation,
$5,500,000 each year is to provide subsidies
to federally qualified health centers, under
Minnesota Statutes, section 145.9269.
This appropriation shall become part of
base level funding. Effective July 1, 2011,
this appropriation shall be paid out of the
general fund. Notwithstanding any contrary
provision in this article, this rider shall not
expire.
new text end

new text begin HIV Information and Referral. Of the
general fund appropriation, $160,000 in
fiscal year 2007 and $160,000 in fiscal year
2008 are to the commissioner to fund a
community-based nonprofit organization
with demonstrated capacity to operate a
statewide HIV information and referral
service using telephone, Internet, and other
appropriate technologies. This appropriation
shall become part of base level funding for
the biennium beginning July 1, 2009.
new text end

new text begin Family Planning Grants. Of the general
fund appropriation, $1,156,000 in fiscal year
2007 and $1,156,000 in fiscal year 2008 are
to the commissioner for family planning
grants under Minnesota Statutes, section
145.925.
new text end

new text begin Community-Based Health Care
Demonstration Project. Of the general fund
appropriation, $210,000 in fiscal year 2007
and $210,000 in fiscal year 2008 are to the
commissioner for the demonstration project
grant described in Minnesota Statutes,
section 62Q.80, subdivision 1a. This
appropriation shall remain part of base level
funding until June 30, 2012. Notwithstanding
any contrary provision in this article, this
rider expires July 1, 2012.
new text end

new text begin Birth Defects. Of the general fund
appropriation, $375,000 each year is to
the commissioner to maintain the birth
defects information system established under
Minnesota Statutes, section 144.2215.
new text end

new text begin Family Support and Assistance. Of the
general fund appropriation, $100,000 each
year is to the commissioner to provide
family support and assistance to families
with children who are deaf or have a hearing
loss. The family support provided must
include direct parent-to-parent assistance and
information on communication, educational,
and medical options. The commissioner
may contract with a nonprofit organization
that has the ability to provide these services
throughout the state.
new text end

new text begin Hearing Aid and Instrument Loan Bank.
Of the general fund appropriation, $70,000
each year is to the commissioner for the
purpose of providing a grant to cover
administrative costs for a statewide hearing
aid and instrument loan bank to families with
children newly diagnosed with hearing loss
from birth to the age of ten.
new text end

new text begin Methamphetamine Abuse Grants. Of the
general fund appropriation, $375,000 each
year is for grants to existing programs that
treat methamphetamine abuse, and the abuse
of other substances in Carlton, Faribault,
Martin, Olmsted, and Anoka Counties, that
received grant funds under Laws 2005,
chapter 136, article 1, section 9, subdivision
6. The commissioner shall administer the
grants to programs that the commissioner
deems successful, and may discontinue
grants to programs after an evaluation of
the program and a determination by the
commissioner that the program should no
longer receive funds. This appropriation
shall not become part of base level funding.
new text end

new text begin new text begin Loan Forgiveness. new text end $400,000 in fiscal
year 2010 and $400,000 in fiscal year
2011 from the state government special
revenue fund are to the commissioner
for the loan forgiveness program under
Minnesota Statutes, section 144.1501. This
appropriation shall not become part of base
level funding for the biennium beginning
July 1, 2011. Notwithstanding any contrary
provision in this article, this rider expires
December 31, 2011.
new text end

new text begin Fetal Alcohol Spectrum Disorder. (1)
On July 1 of each fiscal year, the portion
of the general fund appropriation to the
commissioner of health for fetal alcohol
spectrum disorder administration and
grants shall be transferred to a statewide
organization that focuses solely on
prevention of and intervention with fetal
alcohol spectrum disorder as follows:
new text end

new text begin (i) on July 1, 2007, $2,090,000; and
new text end

new text begin (ii) on July 2, 2008, and annually thereafter,
$2,090,000.
new text end

new text begin (2) The money shall be used for prevention
and intervention services and programs,
including, but not limited to, community
grants, professional education, public
awareness, and diagnosis. The organization
may retain $60,000 of the transferred money
for administrative costs. The organization
shall report to the commissioner annually
by January 15 on the services and programs
funded by the appropriation.
new text end

new text begin (3) Notwithstanding any contrary provision
in this article, this rider shall not expire.
new text end

new text begin Base Adjustment. The state government
special revenue fund base is increased by
$400,000 in fiscal year 2010 and by $400,000
in fiscal year 2011 for community and family
health promotion.
new text end

new text begin Subd. 3. new text end new text begin Policy, Quality, and Compliance new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 8,983,000 new text end	new text begin 3,703,000 new text end
new text begin State Government Special Revenue new text end	new text begin 13,052,000 new text end	new text begin 13,210,000 new text end
new text begin Health Care Access new text end	new text begin 22,539,000 new text end	new text begin 22,018,000 new text end

new text begin new text begin Health Care Access Survey. new text end Of the
health care access fund appropriation,
$600,000 in fiscal year 2008 is appropriated
to the commissioner to conduct a health
insurance survey of Minnesota households,
in partnership with the State Health Access
Data Assistance Center at the University
of Minnesota. The commissioner shall
contract with the State Health Access Data
Assistance Center to conduct a survey that
provides information on the characteristics
of the uninsured in Minnesota and the
reasons for changing patterns of insurance
coverage and access to health care services.
This appropriation shall become part of the
agency's base budget for even-numbered
fiscal years.
new text end

new text begin new text begin MERC Federal Compliance. new text end Of the
general fund appropriation for the second
year, $5,000,000 is to the commissioner
to distribute to the Mayo Clinic for the
purpose of providing transition funding while
federal compliance changes are made to the
medical education and research cost funding
distribution formula in Minnesota Statutes,
section 62J.692.
new text end

new text begin new text begin Health Information Technology. new text end Of
the health care access fund appropriation,
$6,750,000 each year is to implement
Minnesota Statutes, section 144.3345. Up
to $350,000 each fiscal year is available for
grant administration and health information
technology technical assistance and
$6,400,000 each year is to be transferred
to the commissioner of finance to establish
and implement a revolving account under
Minnesota Statutes, section 62J.496. This
appropriation shall not be included in the
agency's base budget for the fiscal year
beginning July 1, 2009.
new text end

new text begin Base Adjustment. The health care access
fund base is decreased by $12,900,000 in
fiscal year 2010 and by $13,500,000 in fiscal
year 2011 for policy, quality, and compliance.
new text end

new text begin Subd. 4. new text end new text begin Health Protection new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 10,480,000 new text end	new text begin 10,768,000 new text end
new text begin State Government Special Revenue new text end	new text begin 28,005,000 new text end	new text begin 29,330,000 new text end

new text begin Water Treatment. Of the general fund
appropriation, $40,000 in fiscal year 2008
is to the commissioner to conduct an
evaluation of point of use water treatment
units at removing perfluorooctanoic
acid, perfluorooctane sulfonate, and
perfluorobutanoic acid from known
concentrations of these compounds in
drinking water. The evaluation shall be
completed by December 31, 2007, and the
commissioner may contract for services to
complete the evaluation. This is a onetime
appropriation.
new text end

new text begin new text begin Pandemic Influenza Preparedness. new text end Of the
general fund appropriation, $500,000 in fiscal
year 2008 and $500,000 in fiscal year 2009
are for grants to local public health and tribal
governments for planning, exercises, and
preparedness for pandemic influenza, and
$115,000 in fiscal year 2008 and $115,000 in
fiscal year 2009 are for department activities
of epidemiology, laboratory services,
exercises, and planning. This appropriation
shall not become part of base level funding
for the biennium beginning July 1, 2009.
new text end

new text begin Base Adjustment. The general fund base is
decreased by $615,000 in fiscal year 2010
and by $615,000 in fiscal year 2011 for
health protection.
new text end

new text begin Subd. 5. new text end new text begin Minority and Multicultural Health new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,998,000 new text end	new text begin 5,015,000 new text end
new text begin Federal TANF new text end	new text begin 2,421,000 new text end	new text begin 2,421,000 new text end

new text begin new text begin TANF Appropriations. new text end $2,683,000
of the TANF funds in fiscal year 2008
and $2,998,000 in fiscal year 2009 are
appropriated to the commissioner for home
visiting and nutritional services listed
under Minnesota Statutes, section 145.882,
subdivision 7, clauses (6) and (7). Funding
shall be distributed to tribal governments
based on Minnesota Statutes, section
145A.14, subdivision 2, paragraph (b).
new text end

new text begin new text begin TANF Carryforward. new text end Any unexpended
balance of the TANF appropriation in the
first year of the biennium does not cancel but
is available for the second year.
new text end

new text begin Subd. 6. new text end new text begin Administrative Support Services new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 8,499,000 new text end	new text begin 8,529,000 new text end
new text begin State Government Special Revenue new text end	new text begin 2,000,000 new text end	new text begin -0- new text end

new text begin new text begin Disease Surveillance. new text end Of the state
government special revenue fund
appropriation, $2,000,000 the first year is for
redesigning and implementing coordinated
and modern disease surveillance systems
for the department. This is a onetime
appropriation.
new text end

new text begin Base Adjustment. The general fund base
is reduced by $91,000 in fiscal year 2010
and by $91,000 in fiscal year 2011 for
administrative support services.
new text end

Sec. 5. new text begin VETERANS NURSING HOMES BOARD new text end

new text begin $ new text end

new text begin 40,074,000 new text end

new text begin $ new text end

new text begin 42,244,000 new text end

new text begin Pay for Performance. (1) Of this
appropriation, $50,000 in fiscal year 2008
shall be deposited in a health improvement
account by the commissioner of finance
and shall be available to the board only
provided that during the period October
1, 2007, to September 30, 2008, the
Department of Health has not issued any
penalty assessments under the provisions
of Minnesota Statutes, section 144.653 or
144A.10, or any correction orders under the
provisions of Minnesota Statutes, section
144.653 or 144A.10, that the Department
of Health deems equivalent to findings of
either immediate jeopardy or substandard
quality of care, as defined in Code of Federal
Regulations, title 42, section 488.301.
new text end

new text begin (2) Money remaining in the health
improvement account on June 30, 2009, shall
not cancel but shall remain in the account
until appropriated by law.
new text end

new text begin (3) Notwithstanding any contrary provision
of this article, this rider shall not expire.
new text end

Sec. 6. new text begin HEALTH-RELATED BOARDS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 14,572,000 new text end

new text begin $ new text end

new text begin 14,462,000 new text end

new text begin Subd. 2. new text end new text begin Board of Chiropractic Examiners new text end

new text begin 450,000 new text end

new text begin 447,000 new text end

new text begin Subd. 3. new text end new text begin Board of Dentistry new text end

new text begin 987,000 new text end

new text begin 1,009,000 new text end

new text begin Subd. 4. new text end new text begin Board of Dietetic and Nutrition Practice new text end

new text begin 103,000 new text end

new text begin 119,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation
in fiscal year 2009, $14,000 is a onetime
appropriation.
new text end

new text begin Subd. 5. new text end new text begin Board of Marriage and Family Therapy new text end

new text begin 134,000 new text end

new text begin 154,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation
in fiscal year 2009, $17,000 is a onetime
appropriation.
new text end

new text begin Subd. 6. new text end new text begin Board of Medical Practice new text end

new text begin 4,120,000 new text end

new text begin 3,674,000 new text end

new text begin Subd. 7. new text end new text begin Board of Nursing new text end

new text begin 3,985,000 new text end

new text begin 4,146,000 new text end

new text begin Subd. 8. new text end new text begin Board of Nursing Home Administrators new text end

new text begin 633,000 new text end

new text begin 647,000 new text end

new text begin Administrative Services Unit. new text end new text begin Of this
appropriation, $430,000 in fiscal year
2008 and $439,000 in fiscal year 2009 are
for the administrative services unit. The
administrative services unit may receive
and expend reimbursements for services
performed by other agencies.
new text end

new text begin Subd. 9. new text end new text begin Board of Optometry new text end

new text begin 98,000 new text end

new text begin 114,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation
in fiscal year 2009, $13,000 is a onetime
appropriation.
new text end

new text begin Subd. 10. new text end new text begin Board of Pharmacy new text end

new text begin 1,375,000 new text end

new text begin 1,442,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation
in fiscal year 2009, $29,000 is a onetime
appropriation.
new text end

new text begin Subd. 11. new text end new text begin Board of Physical Therapy new text end

new text begin 224,000 new text end

new text begin 230,000 new text end

new text begin Subd. 12. new text end new text begin Board of Podiatry new text end

new text begin 54,000 new text end

new text begin 63,000 new text end

new text begin Base Adjustment. new text end new text begin Of this appropriation
in fiscal year 2009, $7,000 is a onetime
appropriation.
new text end

new text begin Subd. 13. new text end new text begin Board of Psychology new text end

new text begin 788,000 new text end

new text begin 806,000 new text end

new text begin Subd. 14. new text end new text begin Board of Social Work new text end

new text begin 997,000 new text end

new text begin 1,022,000 new text end

new text begin Subd. 15. new text end new text begin Board of Veterinary Medicine new text end

new text begin 230,000 new text end

new text begin 195,000 new text end

new text begin Subd. 16. new text end new text begin Board of Behavioral Health and Therapy new text end

new text begin 394,000 new text end

new text begin 394,000 new text end

Sec. 7. new text begin EMERGENCY MEDICAL SERVICES BOARD new text end

new text begin $ new text end

new text begin 3,521,000 new text end

new text begin $ new text end

new text begin 3,167,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin 2,834,000 new text end	new text begin 2,463,000 new text end
new text begin State Government Special Revenue new text end	new text begin 687,000 new text end	new text begin 704,000 new text end

new text begin Longevity Award and Incentive Program.
(a) Of the general fund appropriation,
$700,000 in fiscal year 2008 and $700,000
in fiscal year 2009 are to the board for the
ambulance service personnel longevity award
and incentive program, under Minnesota
Statutes, section 144E.40.
new text end

new text begin (b) In the fiscal year beginning July 1,
2007, $400,000 shall be transferred from
the ambulance service personnel longevity
award and incentive trust to the general fund.
new text end

new text begin Regional Grants. Of the general fund
appropriation, $400,000 in fiscal year 2008 is
to the board for regional emergency medical
services programs, to be distributed equally
to the eight emergency medical service
regions. This amount shall not become part
of base level funding. Notwithstanding
Minnesota Statutes, section 144E.50, 100
percent of the appropriation shall be passed
on to the emergency medical service regions.
new text end

new text begin Health Professional Services Program. new text end new text begin
$687,000 in fiscal year 2008 and $704,000 in
fiscal year 2009 from the state government
special revenue fund are for the health
professional services program.
new text end

Sec. 8. new text begin COUNCIL ON DISABILITY new text end
new text begin General new text end			new text begin $ new text end	new text begin 812,000 new text end	new text begin $ new text end	new text begin 524,000 new text end

new text begin Assistive Technology. Of the general
fund appropriation to the Council on
Disability in fiscal year 2008, $100,000
is to provide financial support to the
Minnesota Regional Assistive Technology
Collaborative, and $200,000 is for a transfer
to the commissioner of administration
for the purposes of completing the state's
remaining share of the local match required
to access the federal Technology Related
Assistance Act for Persons with Disabilities,
Title III, Alternative Financing Project 2003
grant award, which provides microloans
to individuals for the purpose of acquiring
assistive technology devices and services.
new text end

Sec. 9. new text begin OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES new text end
new text begin General new text end			new text begin $ new text end	new text begin 1,584,000 new text end	new text begin $ new text end	new text begin 1,655,000 new text end

Sec. 10. new text begin OMBUDSMAN FOR FAMILIES new text end
new text begin General new text end			new text begin $ new text end	new text begin 255,000 new text end	new text begin $ new text end	new text begin 265,000 new text end

Sec. 11.

Minnesota Statutes 2006, section 16A.724, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin MinnesotaCare federal receipts. new text end

new text begin Receipts received as a result of federal
participation pertaining to administrative costs of the Minnesota health care reform waiver
shall be deposited as nondedicated revenue in the health care access fund. Receipts
received as a result of federal participation pertaining to grants shall be deposited in the
federal fund and shall offset health care access funds for payments to providers.
new text end

Sec. 12.

Minnesota Statutes 2006, section 16A.724, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin MinnesotaCare funding. new text end

new text begin The commissioner of human services may
expend money appropriated from the health care access fund for MinnesotaCare in either
year of the biennium.
new text end

Sec. 13.

Minnesota Statutes 2006, section 69.021, subdivision 11, is amended to read:

Subd. 11.

Excess police state-aid holding account.

(a) The excess police state-aid
holding account is established in the general fund. The excess police state-aid holding
account must be administered by the commissioner.

(b) Excess police state aid determined according to subdivision 10, must be
deposited in the excess police state-aid holding account.

(c) From the balance in the excess police state-aid holding account, $900,000
deleted text begin is appropriated to and deleted text end must be deleted text begin transferred deleted text end new text begin canceled new text end annually deleted text begin to the ambulance service
personnel longevity award and incentive suspense account established by section 144E.42,
subdivision 2 deleted text end new text begin to the general fund new text end .

(d) If a police officer stress reduction program is created by law and money is
appropriated for that program, an amount equal to that appropriation must be transferred
to the administrator of that program from the balance in the excess police state-aid holding
account.

(e) On October 1 of each year, one-half of the balance of the excess police
state-aid holding account remaining after the deductions under paragraphs (c) and (d) is
appropriated for additional amortization aid under section 423A.02, subdivision 1b.

(f) Annually, the remaining balance in the excess police state-aid holding account,
after the deductions under paragraphs (c), (d), and (e), cancels to the general fund.

Sec. 14.

Minnesota Statutes 2006, section 245.771, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Food stamp bonus awards. new text end

new text begin In the event that Minnesota qualifies for
the United States Department of Agriculture Food and Nutrition Services Food Stamp
Program performance bonus awards, the funding is appropriated to the commissioner. The
commissioner shall retain 25 percent of the funding and distribute the other 75 percent
among the counties according to a formula that takes into account each county's impact
on state performance in the applicable bonus categories.
new text end

Sec. 15.

Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Nonstate funding for program costs. new text end

new text begin Notwithstanding sections 16A.013
to 16A.016, the commissioner may accept, on behalf of the state, additional funding
from sources other than state funds for the purpose of financing the cost of assistance
program grants or nongrant administration. All additional funding is appropriated to the
commissioner for use as designated by the grantor of funding.
new text end

Sec. 16.

Minnesota Statutes 2006, section 256.01, is amended by adding a subdivision
to read:

new text begin Subd. 24. new text end

new text begin Systems continuity. new text end

new text begin In the event of disruption of technical systems or
computer operations, the commissioner may use available grant appropriations to ensure
continuity of payments for maintaining the health, safety, and well-being of clients served
by programs administered by the Department of Human Services. Grant funds must be
used in a manner consistent with the original intent of the appropriation.
new text end

Sec. 17.

Minnesota Statutes 2006, section 256J.02, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin TANF funds appropriated to other entities. new text end

new text begin Any expenditures from
the TANF block grant shall be expended in accordance with the requirements and
limitations of part A of Title IV of the Social Security Act, as amended, and any other
applicable federal requirement or limitation. Prior to any expenditure of these funds, the
commissioner shall ensure that funds are expended in compliance with the requirements
and limitations of federal law and that any reporting requirements of federal law are
met. It shall be the responsibility of any entity to which these funds are appropriated to
implement a memorandum of understanding with the commissioner that provides the
necessary assurance of compliance prior to any expenditure of funds. The commissioner
shall receipt TANF funds appropriated to other state agencies and coordinate all related
interagency accounting transactions necessary to implement these appropriations.
Unexpended TANF funds appropriated to any state, local, or nonprofit entity cancel at the
end of the state fiscal year unless appropriating or statutory language permits otherwise.
new text end

Sec. 18.

Minnesota Statutes , section 518A.56, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin Child support payment center. new text end

new text begin Payments to the commissioner from
other governmental units, private enterprises, and individuals for services performed by
the child support payment center must be deposited in the state systems account authorized
under section 256.014. These payments are appropriated to the commissioner for the
operation of the child support payment center or system, according to section 256.014.
new text end

Sec. 19. new text begin COMPENSATION INCREASES.
new text end

new text begin The appropriations in this article, and any statutory appropriations from which
state employee compensation is paid from any fund, include an amount sufficient to fund
compensation increases of at least 3.25 percent of the 2007 compensation base for the first
year, compounded at the rate of 3.25 percent for the second year. This amount must be
used for that purpose and no other.
new text end

Sec. 20. new text begin NONGRANT OPERATING CARRYFORWARD.
new text end

new text begin At the end of the second year of the biennium, any remaining nongrant operating
balances in the Department of Human Services, Minnesota Department of Health,
veterans homes, health-related boards, emergency medical services boards, Council on
Disability, the ombudsman for mental health and developmental disabilities, and the
ombudsman for families direct appropriated accounts may be transferred, with the
approval of the commissioner of finance, to a special revenue account. Funds in those
accounts are appropriated for costs associated with onetime technology infrastructure and
systems development projects. Remaining nongrant operating balances in fiscal year
2007 in the Minnesota sex offender program and the Minnesota security hospital shall
not be transferred.
new text end

new text begin (a) Transfers to a special revenue account shall be reported to the chairs and the
ranking members of the senate Health and Human Services Budget Division and the house
of representatives Health Care and Human Services Finance Division.
new text end

new text begin (b) When these balances originate in nongeneral funds, the transfers shall be made
to separate accounts within the same funds and may only be used to support projects
relevant to the original funding source.
new text end

new text begin (c) Uses of these special revenue account funds shall be reported annually by each
agency to the commissioner of finance, and to the chairs and ranking members of the
senate Health and Human Services Budget Division and the house of representatives
Health Care and Human Services Finance Division.
new text end

new text begin (d) Notwithstanding any contrary provision of this article, this section shall not
expire.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 21. new text begin TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin The commissioner of human services, with the approval
of the commissioner of finance and after notifying the chairs of the senate and house of
representatives committees with jurisdiction, may transfer unencumbered appropriation
balances for the biennium ending June 30, 2009, within fiscal years among the MFIP;
general assistance; general assistance medical care; medical assistance; MFIP child
care assistance under Minnesota Statutes, section 119B.05; Minnesota supplemental aid
and group residential housing programs; and the entitlement portion of the chemical
dependency consolidated treatment fund, and between fiscal years of the biennium.
new text end

new text begin Subd. 2. new text end

new text begin Administration. new text end

new text begin Positions, salary money, and nonsalary administrative
money may be transferred within the Departments of Human Services and Health and
within the programs operated by the Veterans Nursing Homes Board as the commissioners
and the board consider necessary, with the advance approval of the commissioner
of finance. The commissioner or the board shall inform the chairs of the house of
representatives and senate committees with jurisdiction quarterly about transfers made
under this provision.
new text end

Sec. 22. new text begin INDIRECT COSTS NOT TO FUND PROGRAMS.
new text end

new text begin The commissioners of health and human services shall not use indirect cost
allocations to pay for the operational costs of any program for which they are responsible.
new text end

Sec. 23. new text begin SUNSET OF UNCODIFIED LANGUAGE.
new text end

new text begin All uncodified language contained in this article expires on June 30, 2009, unless a
different expiration date is explicit.
new text end

Sec. 24. new text begin EFFECTIVE DATE.
new text end

new text begin The provisions in this article are effective July 1, 2007, unless a different effective
date is specified.
new text end