1.1 	A bill for an act
1.2 	relating to state government; making supplemental appropriations for human 
1.3 	services, health, health licensing boards, and the ombudsman for mental health 
1.4 	and developmental disabilities; making forecast adjustments; modifying 
1.5 	provisions governing health care, children and family services, continuing care, 
1.6 	mental health services, operations, direct care and treatment, Department of 
1.7 	Health programs, and health-related licensing boards; making technical changes; 
1.8 	modifying fees; requiring reports; making changes to medical assistance, 
1.9 	MinnesotaCare, child care assistance, and home and community-based waiver 
1.10 	services programs; creating the Department of Human Services Office of Special 
1.11 	Investigations Law Enforcement Division; making changes to electronic health 
1.12 	information technology; allowing health care practitioners access to patient 
1.13 	registry information under certain conditions; providing criminal penalties for 
1.14 	improper access to patient registry information; requiring a cost/benefit analysis 
1.15 	of health care system proposals; changing certain public health priority points 
1.16 	for health risk limits and contaminated private wells;amending Minnesota 
1.17 	Statutes 2014, sections 13.3806, subdivision 22; 62J.495, subdivision 4; 
1.18 	62J.496, subdivision 1; 119B.011, subdivisions 6, 19, 20, 20a, by adding 
1.19 	subdivisions; 119B.02, subdivisions 1, 5, by adding a subdivision; 119B.025, 
1.20 	by adding subdivisions; 119B.03, subdivisions 3, 9; 119B.09, subdivisions 1, 6, 
1.21 	7, 9a; 119B.10; 119B.11, subdivision 2a; 119B.12, subdivision 2; 119B.125, 
1.22 	subdivision 1b, by adding subdivisions; 119B.13, subdivisions 1, 1a, 4; 152.27, 
1.23 	subdivision 2, by adding a subdivision; 152.33, by adding a subdivision; 214.075, 
1.24 	subdivision 3; 245.99, subdivision 2; 245A.02, by adding subdivisions; 245A.03, 
1.25 	subdivision 7; 245A.04, subdivision 4; 245A.09, subdivision 7; 245A.10, 
1.26 	subdivisions 2, 4, 8; 245A.14, by adding a subdivision; 245A.151; 245A.16, 
1.27 	by adding a subdivision; 245A.40, subdivisions 1, 7; 245A.50, subdivision 9; 
1.28 	245A.66, subdivision 2; 245C.03, by adding a subdivision; 245C.04, subdivision 
1.29 	1; 245C.05, subdivisions 2b, 4, 7; 245C.08, subdivisions 2, 4; 245C.11, 
1.30 	subdivision 3; 245C.17, subdivision 6; 245C.23, subdivision 2; 246.54, as 
1.31 	amended; 246B.01, subdivision 2b; 246B.035; 246B.10; 253B.18, subdivision 
1.32 	4b; 253D.27, subdivision 2; 253D.28, as amended; 253D.29, subdivisions 
1.33 	2, 3; 253D.30, subdivisions 3, 4, 5, 6; 253D.31; 254B.01, subdivision 4a; 
1.34 	256.01, by adding a subdivision; 256.98, subdivision 8; 256B.04, subdivision 
1.35 	14; 256B.059, subdivisions 1, 2, 3, by adding a subdivision; 256B.0622, 
1.36 	by adding a subdivision; 256B.0625, by adding a subdivision; 256B.0915, 
1.37 	subdivision 3b; 256B.092, subdivision 13; 256B.4912, by adding a subdivision; 
1.38 	256B.4914, subdivision 11; 256B.493, subdivisions 3, 4; 256B.76, by adding a 
1.39 	subdivision; 256B.761; 256D.051; 256J.24, subdivision 5; 256L.01, subdivision 
2.1 	1a; 256L.04, subdivisions 1a, 2, 10; 256L.07, subdivision 1; 260C.451, by 
2.2 	adding a subdivision; 626.05, subdivision 2; 626.556, subdivisions 3e, 10f; 
2.3 	626.84, subdivision 1; Minnesota Statutes 2015 Supplement, sections 16A.724, 
2.4 	subdivision 2; 119B.025, subdivision 1; 119B.09, subdivision 4; 119B.13, 
2.5 	subdivision 6; 245.4889, subdivision 1; 245.735, subdivisions 3, 4; 245A.16, 
2.6 	subdivision 1; 245A.40, subdivisions 3, 4; 245D.03, subdivision 1; 254B.05, 
2.7 	subdivision 5; 256.478; 256B.059, subdivision 5; 256B.0625, subdivisions 31, 58; 
2.8 	256B.441, subdivision 30; 256B.49, subdivision 24; 256B.4914, subdivisions 10, 
2.9 	14, 15; 256L.01, subdivision 5; 256L.04, subdivision 7b; 256L.05, subdivision 
2.10 	3a; 256L.06, subdivision 3; 256L.15, subdivision 1; 256M.41, subdivision 
2.11 	3; 256P.05, subdivision 1; 256P.06, subdivision 3; 256P.07, subdivisions 3, 6; 
2.12 	260C.203; 260C.212, subdivisions 1, 14; 260C.215, subdivision 4; 260C.451, 
2.13 	subdivision 6; 260C.521, subdivision 1; 626.556, subdivisions 2, 3c, 10b; Laws 
2.14 	2013, chapter 108, article 14, section 2, subdivision 1, as amended; Laws 2015, 
2.15 	chapter 71, article 14, sections 2, subdivision 1; 4, subdivision 3; proposing 
2.16 	coding for new law in Minnesota Statutes, chapters 119B; 245A; 246; 256B; 
2.17 	260C; 260D; repealing Minnesota Statutes 2014, sections 119B.07; 119B.125, 
2.18 	subdivision 5; 253D.27, subdivisions 3, 4; 256B.059, subdivision 1a; 256B.493, 
2.19 	subdivisions 1, 2; 256L.04, subdivisions 2a, 8; 256L.22; 256L.24; 256L.26; 
2.20 	256L.28; Minnesota Statutes 2015 Supplement, section 119B.125, subdivision 8; 
2.21 	Minnesota Rules, parts 3400.0040, subparts 6a, 6b; 3400.0110, subparts 2a, 10; 
2.22 	3400.0170, subparts 7, 8; 9502.0405, subpart 4, item C; 9502.0425, subpart 18; 
2.23 	9503.0100; 9503.0140, subpart 5; 9503.0145, subpart 6; 9503.0155, subpart 11.
2.24 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.25 	ARTICLE 1
2.26 	HEALTH CARE

2.27 	Section 1. Minnesota Statutes 2015 Supplement, section 16A.724, subdivision 2, 
2.28 	is amended to read:
2.29 		Subd. 2.Transfers. (a) Notwithstanding section 295.581, to the extent available 
2.30 	resources in the health care access fund exceed expenditures in that fund, effective for 
2.31 	the biennium beginning July 1, 2007, the commissioner of management and budget shall 
2.32 	transfer the excess funds from the health care access fund to the general fund on June 30 
2.33 	of each year, provided that the amount transferred in any fiscal biennium shall not exceed 
2.34 	$96,000,000 $244,000,000. The purpose of this transfer is to meet the rate increase required 
2.35 	under Laws 2003, First Special Session chapter 14, article 13C, section 2, subdivision 6.
2.36 	(b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and, 
2.37 	if necessary, the commissioner shall reduce these transfers from the health care access 
2.38 	fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary, 
2.39 	transfer sufficient funds from the general fund to the health care access fund to meet 
2.40 	annual MinnesotaCare expenditures.

2.41 	Sec. 2. Minnesota Statutes 2014, section 256.01, is amended by adding a subdivision 
2.42 	to read:
3.1 		Subd. 41.Federal waiver request. (a) The commissioner shall seek necessary 
3.2 	federal waiver authority from the United States Department of Health and Human 
3.3 	Services to design and operate a seamless and sustainable health coverage continuum that 
3.4 	reduces barriers to care and eases the transition across insurance affordability programs 
3.5 	for consumers. 
3.6 	(b) The waiver proposal must incorporate, at a minimum, the following:
3.7 	(1) an expansion of MinnesotaCare for persons with incomes up to 275 percent of 
3.8 	federal poverty guidelines;
3.9 	(2) a standardized sliding fee scale for premiums and cost sharing for persons with 
3.10 	incomes up to 275 percent of federal poverty guidelines;
3.11 	(3) alignment of eligibility, benefits, and enrollment requirements across insurance 
3.12 	affordability programs, including, at a minimum, a common income methodology, 
3.13 	consistent household composition rules, and a common definition of "American Indian";
3.14 	(4) multipayer alignment across insurance affordability programs that promote health 
3.15 	equity, including consistent payment methodologies across payers and products and similar 
3.16 	coverage and contracting requirements across insurance affordability programs; and
3.17 	(5) innovative reforms to promote cost-neutrality and sustainability of the program, 
3.18 	including prospective and outcome-based payment for collaborative organizations and 
3.19 	primary care providers.
3.20 	(c) As part of the waiver request, the commissioner shall seek necessary federal 
3.21 	authority to secure all federal funding available to meet the goals described under 
3.22 	paragraph (a). This includes available Medicaid funding and all premium tax credits and 
3.23 	cost-sharing subsidies available under United States Code, title 26, section 36B, and 
3.24 	United States Code, title 42, section 18071, for a person with income at or below 275 
3.25 	percent of the federal poverty guidelines who would otherwise be eligible to enroll in 
3.26 	a qualified health plan through MNsure.
3.27 	(d) In developing the request, the commissioner shall consult with appropriate state 
3.28 	agencies, stakeholder groups, and consumers.
3.29 	(e) On March 1, 2017, the commissioner shall report to the chairs and ranking 
3.30 	minority members of the legislative committees with jurisdiction over health and human 
3.31 	services on the progress of receiving a federal waiver, including the results of actuarial 
3.32 	analyses on the broader impact to the health insurance market required for waiver 
3.33 	submission and recommendations on necessary legislative changes, including the expected 
3.34 	fiscal impact to the state.
3.35 	(f) Implementation of the waiver shall be contingent on necessary federal approval, 
3.36 	state legislative changes, and state financial contributions.

4.1 	Sec. 3. Minnesota Statutes 2014, section 256B.04, subdivision 14, is amended to read:
4.2 		Subd. 14.Competitive bidding. (a) When determined to be effective, economical, 
4.3 	and feasible, the commissioner may utilize volume purchase through competitive bidding 
4.4 	and negotiation under the provisions of chapter 16C, to provide items under the medical 
4.5 	assistance program including but not limited to the following:
4.6 	(1) eyeglasses;
4.7 	(2) oxygen. The commissioner shall provide for oxygen needed in an emergency 
4.8 	situation on a short-term basis, until the vendor can obtain the necessary supply from 
4.9 	the contract dealer;
4.10 	(3) hearing aids and supplies; and
4.11 	(4) durable medical equipment, including but not limited to:
4.12 	(i) hospital beds;
4.13 	(ii) commodes;
4.14 	(iii) glide-about chairs;
4.15 	(iv) patient lift apparatus;
4.16 	(v) wheelchairs and accessories;
4.17 	(vi) oxygen administration equipment;
4.18 	(vii) respiratory therapy equipment;
4.19 	(viii) electronic diagnostic, therapeutic and life-support systems; and
4.20 	(ix) allergen-reducing products as described in section 256B.0625, subdivision 65, 
4.21 	paragraph (c), clause (3);
4.22 	(5) nonemergency medical transportation level of need determinations, disbursement 
4.23 	of public transportation passes and tokens, and volunteer and recipient mileage and 
4.24 	parking reimbursements; and
4.25 	(6) drugs.
4.26 	(b) Rate changes and recipient cost-sharing under this chapter and chapters 256D and 
4.27 	256L do not affect contract payments under this subdivision unless specifically identified.
4.28 	(c) The commissioner may not utilize volume purchase through competitive bidding 
4.29 	and negotiation for special transportation services under the provisions of chapter 16C.

4.30 	Sec. 4. Minnesota Statutes 2014, section 256B.059, subdivision 1, is amended to read:
4.31 		Subdivision 1.Definitions. (a) For purposes of this section and sections 256B.058
4.32 	and 256B.0595, the terms defined in this subdivision have the meanings given them.
4.33 	(b) "Community spouse" means the spouse of an institutionalized spouse.
5.1 	(c) "Spousal share" means one-half of the total value of all assets, to the extent that 
5.2 	either the institutionalized spouse or the community spouse had an ownership interest at 
5.3 	the time of the first continuous period of institutionalization.
5.4 	(d) (c) "Assets otherwise available to the community spouse" means assets 
5.5 	individually or jointly owned by the community spouse, other than assets excluded by 
5.6 	subdivision 5, paragraph (c).
5.7 	(e) (d) "Community spouse asset allowance" is the value of assets that can be 
5.8 	transferred under subdivision 3.
5.9 	(f) (e) "Institutionalized spouse" means a person who is:
5.10 	(1) in a hospital, nursing facility, or intermediate care facility for persons with 
5.11 	developmental disabilities, or receiving home and community-based services under 
5.12 	section 256B.0915, and is expected to remain in the facility or institution or receive the 
5.13 	home and community-based services for at least 30 consecutive days; and
5.14 	(2) married to a person who is not in a hospital, nursing facility, or intermediate 
5.15 	care facility for persons with developmental disabilities, and is not receiving home and 
5.16 	community-based services under section 256B.0915, 256B.092, or 256B.49.
5.17 	(g) (f) "For the sole benefit of" means no other individual or entity can benefit in any 
5.18 	way from the assets or income at the time of a transfer or at any time in the future.
5.19 	(h) (g) "Continuous period of institutionalization" means a 30-consecutive-day 
5.20 	period of time in which a person is expected to stay in a medical or long-term care facility, 
5.21 	or receive home and community-based services that would qualify for coverage under 
5.22 	the elderly waiver (EW) or alternative care (AC) programs. For a stay in a facility, the 
5.23 	30-consecutive-day period begins on the date of entry into a medical or long-term care 
5.24 	facility. For receipt of home and community-based services, the 30-consecutive-day 
5.25 	period begins on the date that the following conditions are met:
5.26 	(1) the person is receiving services that meet the nursing facility level of care 
5.27 	determined by a long-term care consultation;
5.28 	(2) the person has received the long-term care consultation within the past 60 days;
5.29 	(3) the services are paid by the EW program under section 256B.0915 or the AC 
5.30 	program under section 256B.0913 or would qualify for payment under the EW or AC 
5.31 	programs if the person were otherwise eligible for either program, and but for the receipt 
5.32 	of such services the person would have resided in a nursing facility; and
5.33 	(4) the services are provided by a licensed provider qualified to provide home and 
5.34 	community-based services.

5.35 	EFFECTIVE DATE. This section is effective June 1, 2016.

6.1 	Sec. 5. Minnesota Statutes 2014, section 256B.059, subdivision 2, is amended to read:
6.2 		Subd. 2.Assessment of spousal share. At the beginning of the first continuous 
6.3 	period of institutionalization of a person beginning on or after October 1, 1989, at 
6.4 	the request of either the institutionalized spouse or the community spouse, or Upon 
6.5 	application for medical assistance benefits for payment of long-term care services, the 
6.6 	total value of assets in which either the institutionalized spouse or the community spouse 
6.7 	had have an interest at the time of the first period of institutionalization of 30 days or more
6.8 	shall be assessed and documented and the spousal share shall be assessed and documented
6.9 	the community spouse asset allowance calculated as required in subdivision 3.

6.10 	EFFECTIVE DATE. This section is effective June 1, 2016.

6.11 	Sec. 6. Minnesota Statutes 2014, section 256B.059, subdivision 3, is amended to read:
6.12 		Subd. 3.Community spouse asset allowance. An institutionalized spouse may 
6.13 	transfer assets to the community spouse for the sole benefit of the community spouse. 
6.14 	Except for increased amounts allowable under subdivision 4, the maximum amount of 
6.15 	assets allowed to be transferred is the amount which, when added to the assets otherwise 
6.16 	available to the community spouse, is as follows the greater of:
6.17 	(1) prior to July 1, 1994, the greater of:
6.18 	(i) $14,148;
6.19 	(ii) the lesser of the spousal share or $70,740; or
6.20 	(iii) the amount required by court order to be paid to the community spouse; and
6.21 	(2) for persons whose date of initial determination of eligibility for medical 
6.22 	assistance following their first continuous period of institutionalization occurs on or after 
6.23 	July 1, 1994, the greater of:
6.24 	(i) $20,000;
6.25 	(ii) the lesser of the spousal share or $70,740; or
6.26 	(iii) the amount required by court order to be paid to the community spouse.
6.27 	(1) $119,220 subject to an annual adjustment equal to the percentage increase in the 
6.28 	Consumer Price Index for All Urban Consumers (all items; United States city average) 
6.29 	between the two previous Septembers; or
6.30 	(2) the amount required by court order to be paid to the community spouse.
6.31 	If the assets available to the community spouse are already at the limit permissible 
6.32 	under this section, or the higher limit attributable to increases under subdivision 4, no assets 
6.33 	may be transferred from the institutionalized spouse to the community spouse. The transfer 
6.34 	must be made as soon as practicable after the date the institutionalized spouse is determined 
6.35 	eligible for medical assistance, or within the amount of time needed for any court order 
7.1 	required for the transfer. On January 1, 1994, and every January 1 thereafter, the limits in 
7.2 	this subdivision shall be adjusted by the same percentage change in the Consumer Price 
7.3 	Index for All Urban Consumers (all items; United States city average) between the two 
7.4 	previous Septembers. These adjustments shall also be applied to the limits in subdivision 5.

7.5 	EFFECTIVE DATE. This section is effective June 1, 2016.

7.6 	Sec. 7. Minnesota Statutes 2015 Supplement, section 256B.059, subdivision 5, is 
7.7 	amended to read:
7.8 		Subd. 5.Asset availability. (a) At the time of initial determination of eligibility for 
7.9 	medical assistance benefits following the first continuous period of institutionalization 
7.10 	on or after October 1, 1989 for payment of long-term care services, assets considered 
7.11 	available to the institutionalized spouse shall be the total value of all assets in which either 
7.12 	spouse has an ownership interest, reduced by the following amount for the community 
7.13 	spouse: available to the community spouse under subdivision 3.
7.14 	(1) prior to July 1, 1994, the greater of:
7.15 	(i) $14,148;
7.16 	(ii) the lesser of the spousal share or $70,740; or
7.17 	(iii) the amount required by court order to be paid to the community spouse;
7.18 	(2) for persons whose date of initial determination of eligibility for medical 
7.19 	assistance following their first continuous period of institutionalization occurs on or after 
7.20 	July 1, 1994, the greater of:
7.21 	(i) $20,000;
7.22 	(ii) the lesser of the spousal share or $70,740; or
7.23 	(iii) the amount required by court order to be paid to the community spouse.
7.24 	The value of assets transferred for the sole benefit of the community spouse under section 
7.25 	256B.0595, subdivision 4, in combination with other assets available to the community 
7.26 	spouse under this section, cannot exceed the limit for the community spouse asset 
7.27 	allowance determined under subdivision 3 or 4. Assets that exceed this allowance shall 
7.28 	be considered available to the institutionalized spouse. If the community spouse asset 
7.29 	allowance has been increased under subdivision 4, then the assets considered available to 
7.30 	the institutionalized spouse under this subdivision shall be further reduced by the value of 
7.31 	additional amounts allowed under subdivision 4.
7.32 	(b) An institutionalized spouse may be found eligible for medical assistance even 
7.33 	though assets in excess of the allowable amount are found to be available under paragraph 
7.34 	(a) if the assets are owned jointly or individually by the community spouse, and the 
8.1 	institutionalized spouse cannot use those assets to pay for the cost of care without the 
8.2 	consent of the community spouse, and if: (i) the institutionalized spouse assigns to the 
8.3 	commissioner the right to support from the community spouse under section 256B.14, 
8.4 	subdivision 3; (ii) the institutionalized spouse lacks the ability to execute an assignment 
8.5 	due to a physical or mental impairment; or (iii) the denial of eligibility would cause an 
8.6 	imminent threat to the institutionalized spouse's health and well-being.
8.7 	(c) After the month in which the institutionalized spouse is determined eligible for 
8.8 	medical assistance, during the continuous period of institutionalization, no assets of the 
8.9 	community spouse are considered available to the institutionalized spouse, unless the 
8.10 	institutionalized spouse has been found eligible under paragraph (b).
8.11 	(d) Assets determined to be available to the institutionalized spouse under this 
8.12 	section must be used for the health care or personal needs of the institutionalized spouse.
8.13 	(e) For purposes of this section, assets do not include assets excluded under the 
8.14 	Supplemental Security Income program.

8.15 	EFFECTIVE DATE. This section is effective June 1, 2016.

8.16 	Sec. 8. Minnesota Statutes 2014, section 256B.059, is amended by adding a 
8.17 	subdivision to read:
8.18 		Subd. 6.Temporary application. (a) During the period in which rules against 
8.19 	spousal impoverishment are temporarily applied according to section 2404 of the Patient 
8.20 	Protection Affordable Care Act, Public Law 111-148, as amended by the Health Care and 
8.21 	Education Reconciliation Act of 2010, Public Law 111-152, this section applies to an 
8.22 	institutionalized spouse:
8.23 	(1) applying for home and community-based waivers under sections 256B.092, 
8.24 	256B.093, and 256B.49 on or after June 1, 2016;
8.25 	(2) enrolled in home and community-based waivers under sections 256B.092, 
8.26 	256B.093, and 256B.49 before June 1, 2016; or
8.27 	(3) applying for services under section 256B.85 upon the effective date of that section.
8.28 	(b) During the applicable period of paragraph (a), the definition of "institutionalized 
8.29 	spouse" in subdivision 1, paragraph (f), also includes an institutionalized spouse 
8.30 	referenced in paragraph (a).

8.31 	EFFECTIVE DATE. This section is effective June 1, 2016.

8.32 	Sec. 9. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 31, 
8.33 	is amended to read:
9.1 		Subd. 31.Medical supplies and equipment. (a) Medical assistance covers medical 
9.2 	supplies and equipment. Separate payment outside of the facility's payment rate shall 
9.3 	be made for wheelchairs and wheelchair accessories for recipients who are residents 
9.4 	of intermediate care facilities for the developmentally disabled. Reimbursement for 
9.5 	wheelchairs and wheelchair accessories for ICF/DD recipients shall be subject to the same 
9.6 	conditions and limitations as coverage for recipients who do not reside in institutions. A 
9.7 	wheelchair purchased outside of the facility's payment rate is the property of the recipient.
9.8 	(b) Vendors of durable medical equipment, prosthetics, orthotics, or medical supplies 
9.9 	must enroll as a Medicare provider.
9.10 	(c) When necessary to ensure access to durable medical equipment, prosthetics, 
9.11 	orthotics, or medical supplies, the commissioner may exempt a vendor from the Medicare 
9.12 	enrollment requirement if:
9.13 	(1) the vendor supplies only one type of durable medical equipment, prosthetic, 
9.14 	orthotic, or medical supply;
9.15 	(2) the vendor serves ten or fewer medical assistance recipients per year;
9.16 	(3) the commissioner finds that other vendors are not available to provide same or 
9.17 	similar durable medical equipment, prosthetics, orthotics, or medical supplies; and
9.18 	(4) the vendor complies with all screening requirements in this chapter and Code of 
9.19 	Federal Regulations, title 42, part 455. The commissioner may also exempt a vendor from 
9.20 	the Medicare enrollment requirement if the vendor is accredited by a Centers for Medicare 
9.21 	and Medicaid Services approved national accreditation organization as complying with 
9.22 	the Medicare program's supplier and quality standards and the vendor serves primarily 
9.23 	pediatric patients.
9.24 	(d) Durable medical equipment means a device or equipment that:
9.25 	(1) can withstand repeated use;
9.26 	(2) is generally not useful in the absence of an illness, injury, or disability; and
9.27 	(3) is provided to correct or accommodate a physiological disorder or physical 
9.28 	condition or is generally used primarily for a medical purpose.
9.29 	(e) Electronic tablets may be considered durable medical equipment if the electronic 
9.30 	tablet will be used as an augmentative and alternative communication system as defined 
9.31 	under subdivision 31a, paragraph (a). To be covered by medical assistance, the device 
9.32 	must be locked in order to prevent use not related to communication.
9.33 	(f) Notwithstanding the requirement in paragraph (e) that an electronic tablet must 
9.34 	be locked to prevent use not as an augmentative communication device, a recipient of 
9.35 	waiver services may use an electronic tablet for a use not related to communication when 
9.36 	the recipient has been authorized under the waiver to receive one or more additional 
10.1 	applications that can be loaded onto the electronic tablet, such that allowing the additional 
10.2 	use prevents the purchase of a separate electronic tablet with waiver funds.
10.3 	(g) Allergen-reducing products provided according to subdivision 65, paragraph (c), 
10.4 	clause (3), shall be considered durable medical equipment.

10.5 	EFFECTIVE DATE. This section is effective upon federal approval, but not before 
10.6 	January 1, 2017. The commissioner of human services shall notify the revisor of statutes 
10.7 	when federal approval is obtained.

10.8 	Sec. 10. Minnesota Statutes 2015 Supplement, section 256B.0625, subdivision 58, 
10.9 	is amended to read:
10.10 		Subd. 58.Early and periodic screening, diagnosis, and treatment services.
 10.11 	Medical assistance covers early and periodic screening, diagnosis, and treatment services 
10.12 	(EPSDT). The payment amount for a complete EPSDT screening shall not include charges 
10.13 	for health care services and products that are available at no cost to the provider and shall 
10.14 	not exceed the rate established per Minnesota Rules, part 9505.0445, item M, effective 
10.15 	October 1, 2010. Payment for a complete EPSDT screening rendered on or after July 
10.16 	1, 2016, shall be increased by five percent when provided by a physician, advanced 
10.17 	practice registered nurse, or physician assistant unless otherwise limited by state or 
10.18 	federal regulations.

10.19 	Sec. 11. Minnesota Statutes 2014, section 256B.0625, is amended by adding a 
10.20 	subdivision to read:
10.21 		Subd. 65.Enhanced asthma care services. (a) Medical assistance covers enhanced 
10.22 	asthma care services and related products for children with poorly controlled asthma 
10.23 	according to paragraph (b), to be provided in the children's homes.
10.24 	(b) To be eligible for services and products under this subdivision, a child must:
10.25 	(1) be under 21 years of age;
10.26 	(2) have poorly controlled asthma;
10.27 	(3) have, at least one time in the past year, received health care for the child's asthma 
10.28 	from a hospital emergency department or been hospitalized for the treatment of asthma; and
10.29 	(4) receive a referral for asthma care services and products covered under this 
10.30 	subdivision from a treating health care provider.
10.31 	(c) Covered asthma care services and products include:
10.32 	(1) a home assessment for asthma triggers provided by an enrolled healthy homes 
10.33 	specialist currently credentialed by the National Environmental Health Association;
11.1 	(2) targeted asthma education services in the child's home by an enrolled asthma 
11.2 	educator certified by the National Asthma Educator Certification Board. Asthma 
11.3 	education services provided under this clause include education on self-management, 
11.4 	avoiding asthma triggers, identifying worsening asthma symptoms, and medication uses 
11.5 	and techniques; and
11.6 	(3) allergen-reducing products recommended for the child by the healthy homes 
11.7 	specialist or the certified asthma educator based on the documented allergies for that child 
11.8 	and proven to reduce asthma triggers identified in the child's home assessment, including:
11.9 	(i) encasements for mattresses, box springs, and pillows;
11.10 	(ii) a HEPA vacuum cleaner, filters, and bags;
11.11 	(iii) a dehumidifier and filters;
11.12 	(iv) single-room air cleaners and filters;
11.13 	(v) nontoxic pest control systems, including traps and starter packages of food 
11.14 	storage containers;
11.15 	(vi) a damp mopping system;
11.16 	(vii) if the child does not have access to a bed, a waterproof hospital-grade mattress; 
11.17 	and
11.18 	(viii) furnace filters, for homeowners only.
11.19 	(d)(1) A child is limited to one home assessment and one visit by a certified asthma 
11.20 	educator to provide education on the use and maintenance of the products listed in 
11.21 	paragraph (c), clause (3).
11.22 	(2) A child may receive an additional home assessment if the child moves to a new 
11.23 	home; develops a new asthma trigger, including tobacco smoke; or the child's health 
11.24 	care provider documents a new allergy for the child, including an allergy to mold, pests, 
11.25 	pets, or dust mites.
11.26 	(3) The commissioner shall determine the frequency that a child may receive a product 
11.27 	listed in paragraph (c), clause (3), based on the reasonable expected lifetime of the product.

11.28 	EFFECTIVE DATE. This section is effective upon federal approval, but not before 
11.29 	January 1, 2017. The commissioner of human services shall notify the revisor of statutes 
11.30 	when federal approval is obtained.

11.31 	Sec. 12. Minnesota Statutes 2014, section 256B.76, is amended by adding a 
11.32 	subdivision to read:
11.33 		Subd. 8.Payment for certain preventive medical visits. (a) Payment for certain 
11.34 	preventive medical visits rendered on or after July 1, 2016, shall be increased by five 
11.35 	percent, unless otherwise limited by state or federal regulations.
12.1 	(b) For purposes of paragraph (a), preventive medical visits shall be limited to 
12.2 	preventive medicine visits when provided by a physician, advanced practice registered 
12.3 	nurse, or physician assistant.

12.4 	Sec. 13. Minnesota Statutes 2014, section 256B.761, is amended to read:
12.5 	256B.761 REIMBURSEMENT FOR MENTAL HEALTH SERVICES.
12.6 	(a) Effective for services rendered on or after July 1, 2001, payment for medication 
12.7 	management provided to psychiatric patients, outpatient mental health services, day 
12.8 	treatment services, home-based mental health services, and family community support 
12.9 	services shall be paid at the lower of (1) submitted charges, or (2) 75.6 percent of the 
12.10 	50th percentile of 1999 charges.
12.11 	(b) Effective July 1, 2001, the medical assistance rates for outpatient mental health 
12.12 	services provided by an entity that operates: (1) a Medicare-certified comprehensive 
12.13 	outpatient rehabilitation facility; and (2) a facility that was certified prior to January 1, 
12.14 	1993, with at least 33 percent of the clients receiving rehabilitation services in the most 
12.15 	recent calendar year who are medical assistance recipients, will be increased by 38 percent, 
12.16 	when those services are provided within the comprehensive outpatient rehabilitation 
12.17 	facility and provided to residents of nursing facilities owned by the entity.
12.18 	(c) The commissioner shall establish three levels of payment for mental health 
12.19 	diagnostic assessment, based on three levels of complexity. The aggregate payment under 
12.20 	the tiered rates must not exceed the projected aggregate payments for mental health 
12.21 	diagnostic assessment under the previous single rate. The new rate structure is effective 
12.22 	January 1, 2011, or upon federal approval, whichever is later.
12.23 	(d) In addition to rate increases otherwise provided, the commissioner may 
12.24 	restructure coverage policy and rates to improve access to adult rehabilitative mental 
12.25 	health services under section 256B.0623 and related mental health support services under 
12.26 	section 256B.021, subdivision 4, paragraph (f), clause (2). For state fiscal years 2015 and 
12.27 	2016, the projected state share of increased costs due to this paragraph is transferred 
12.28 	from adult mental health grants under sections 245.4661 and 256E.12. The transfer for 
12.29 	fiscal year 2016 is a permanent base adjustment for subsequent fiscal years. Payments 
12.30 	made to managed care plans and county-based purchasing plans under sections 256B.69, 
12.31 	256B.692, and 256L.12 shall reflect the rate changes described in this paragraph.
12.32 	(e) Effective for services provided on or after July 1, 2016, payments for outpatient 
12.33 	mental health services shall be increased by five percent. This increase is not applicable 
12.34 	to federally qualified health centers, rural health centers, Indian health services, other 
13.1 	cost-based rates, rates that are negotiated with the county, or rates that are established by 
13.2 	the federal government.

13.3 	Sec. 14. [256B.7625] REIMBURSEMENT FOR EVIDENCE-BASED PUBLIC 
13.4 	HEALTH NURSE HOME VISITS.
13.5 	Effective for services provided on or after January 1, 2017, prenatal and postpartum 
13.6 	follow-up home visits provided by public health nurses using evidence-based models 
13.7 	shall be paid $140 per visit. Evidence-based postpartum follow-up home visits must 
13.8 	be administered by home visiting programs that meet the United States Department 
13.9 	of Health and Human Services criteria for evidence-based models and identified by 
13.10 	the commissioner of health as eligible services under the Maternal, Infant, and Early 
13.11 	Childhood Home Visiting program. Home visits shall be targeted toward pregnant women 
13.12 	and mothers with children up to three years of age.

13.13 	Sec. 15. Minnesota Statutes 2014, section 256L.01, subdivision 1a, is amended to read:
13.14 		Subd. 1a.Child. "Child" means an individual under 21 years of age, including the 
13.15 	unborn child of a pregnant woman, an emancipated minor, and an emancipated minor's 
13.16 	spouse.

13.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

13.18 	Sec. 16. Minnesota Statutes 2015 Supplement, section 256L.01, subdivision 5, is 
13.19 	amended to read:
13.20 		Subd. 5.Income.  "Income" has the meaning given for modified adjusted gross 
13.21 	income, as defined in Code of Federal Regulations, title 26, section 1.36B-1, and means 
13.22 	a household's projected annual income for the applicable tax year current income, or if 
13.23 	income fluctuates month to month, the income for the 12-month eligibility period.

13.24 	EFFECTIVE DATE. This section is effective July 1, 2017.

13.25 	Sec. 17. Minnesota Statutes 2014, section 256L.04, subdivision 1a, is amended to read:
13.26 		Subd. 1a.Social Security number required. (a) Individuals and families applying 
13.27 	for MinnesotaCare coverage must provide a Social Security number if required by Code 
13.28 	of Federal Regulations, title 45, section 155.310(a)(3).
13.29 	(b) The commissioner shall not deny eligibility to an otherwise eligible applicant 
13.30 	who has applied for a Social Security number and is awaiting issuance of that Social 
13.31 	Security number.
14.1 	(c) Newborns enrolled under section 256L.05, subdivision 3, are exempt from the 
14.2 	requirements of this subdivision.
14.3 	(d) Individuals who refuse to provide a Social Security number because of 
14.4 	well-established religious objections are exempt from the requirements of this subdivision. 
14.5 	The term "well-established religious objections" has the meaning given in Code of Federal 
14.6 	Regulations, title 42, section 435.910.

14.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

14.8 	Sec. 18. Minnesota Statutes 2014, section 256L.04, subdivision 2, is amended to read:
14.9 		Subd. 2.Third-party liability, paternity, and other medical support. (a) To be 
14.10 	eligible for MinnesotaCare, Individuals and families must may cooperate with the state 
14.11 	agency to identify potentially liable third-party payers and assist the state in obtaining 
14.12 	third-party payments. "Cooperation" includes, but is not limited to, complying with 
14.13 	the notice requirements in section 256B.056, subdivision 9, identifying any third party 
14.14 	who may be liable for care and services provided under MinnesotaCare to the enrollee, 
14.15 	providing relevant information to assist the state in pursuing a potentially liable third 
14.16 	party, and completing forms necessary to recover third-party payments.
14.17 	(b) A parent, guardian, relative caretaker, or child enrolled in the MinnesotaCare 
14.18 	program must cooperate with the Department of Human Services and the local agency in 
14.19 	establishing the paternity of an enrolled child and in obtaining medical care support and 
14.20 	payments for the child and any other person for whom the person can legally assign rights, 
14.21 	in accordance with applicable laws and rules governing the medical assistance program. A 
14.22 	child shall not be ineligible for or disenrolled from the MinnesotaCare program solely 
14.23 	because the child's parent, relative caretaker, or guardian fails to cooperate in establishing 
14.24 	paternity or obtaining medical support.

14.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

14.26 	Sec. 19. Minnesota Statutes 2015 Supplement, section 256L.04, subdivision 7b, 
14.27 	is amended to read:
14.28 		Subd. 7b.Annual income limits adjustment. The commissioner shall adjust the 
14.29 	income limits under this section annually on January each July 1 as provided described in 
14.30 	Code of Federal Regulations, title 26, section 1.36B-1(h) section 256B.056, subdivision 1c.

14.31 	EFFECTIVE DATE. This section is effective July 1, 2017.

14.32 	Sec. 20. Minnesota Statutes 2014, section 256L.04, subdivision 10, is amended to read:
15.1 		Subd. 10.Citizenship requirements. (a) Eligibility for MinnesotaCare is limited 
15.2 	to citizens or nationals of the United States and lawfully present noncitizens as defined 
15.3 	in Code of Federal Regulations, title 8 45, section 103.12 152.2. Undocumented 
15.4 	noncitizens are ineligible for MinnesotaCare. For purposes of this subdivision, an 
15.5 	undocumented noncitizen is an individual who resides in the United States without the 
15.6 	approval or acquiescence of the United States Citizenship and Immigration Services. 
15.7 	Families with children who are citizens or nationals of the United States must cooperate in 
15.8 	obtaining satisfactory documentary evidence of citizenship or nationality according to the 
15.9 	requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171.
15.10 	(b) Notwithstanding subdivisions 1 and 7, eligible persons include families and 
15.11 	individuals who are lawfully present and ineligible for medical assistance by reason of 
15.12 	immigration status and who have incomes equal to or less than 200 percent of federal 
15.13 	poverty guidelines.

15.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

15.15 	Sec. 21. Minnesota Statutes 2015 Supplement, section 256L.05, subdivision 3a, 
15.16 	is amended to read:
15.17 		Subd. 3a.Redetermination of eligibility. (a) An enrollee's eligibility must be 
15.18 	redetermined on an annual basis, in accordance with Code of Federal Regulations, title 
15.19 	42, section 435.916(a). The period of eligibility is the entire calendar year following the 
15.20 	year in which eligibility is redetermined. Beginning in calendar year 2015, eligibility 
15.21 	redeterminations shall occur during the open enrollment period for qualified health plans as 
15.22 	specified in Code of Federal Regulations, title 45, section 155.410. The 12-month eligibility 
15.23 	period begins the month of application. Beginning July 1, 2017, the commissioner shall 
15.24 	adjust the eligibility period for enrollees to implement renewals throughout the year 
15.25 	according to guidance from the Centers for Medicare and Medicaid Services.
15.26 	(b) Each new period of eligibility must take into account any changes in 
15.27 	circumstances that impact eligibility and premium amount. Coverage begins as provided 
15.28 	in section 256L.06.

15.29 	EFFECTIVE DATE. This section is effective July 1, 2017.

15.30 	Sec. 22. Minnesota Statutes 2015 Supplement, section 256L.06, subdivision 3, is 
15.31 	amended to read:
15.32 		Subd. 3.Commissioner's duties and payment. (a) Premiums are dedicated to the 
15.33 	commissioner for MinnesotaCare.
16.1 	(b) The commissioner shall develop and implement procedures to: (1) require 
16.2 	enrollees to report changes in income; (2) adjust sliding scale premium payments, based 
16.3 	upon both increases and decreases in enrollee income, at the time the change in income 
16.4 	is reported; and (3) disenroll enrollees from MinnesotaCare for failure to pay required 
16.5 	premiums. Failure to pay includes payment with a dishonored check, a returned automatic 
16.6 	bank withdrawal, or a refused credit card or debit card payment. The commissioner may 
16.7 	demand a guaranteed form of payment, including a cashier's check or a money order, as 
16.8 	the only means to replace a dishonored, returned, or refused payment.
16.9 	(c) Premiums are calculated on a calendar month basis and may be paid on a 
16.10 	monthly, quarterly, or semiannual basis, with the first payment due upon notice from the 
16.11 	commissioner of the premium amount required. The commissioner shall inform applicants 
16.12 	and enrollees of these premium payment options. Premium payment is required before 
16.13 	enrollment is complete and to maintain eligibility in MinnesotaCare. Premium payments 
16.14 	received before noon are credited the same day. Premium payments received after noon 
16.15 	are credited on the next working day.
16.16 	(d) Nonpayment of the premium will result in disenrollment from the plan effective 
16.17 	for the calendar month following the month for which the premium was due. Persons 
16.18 	disenrolled for nonpayment may not reenroll prior to the first day of the month following 
16.19 	the payment of an amount equal to two months' premiums.
16.20 	(e) The commissioner shall forgive the past-due premium for persons disenrolled 
16.21 	under paragraph (d) prior to issuing a premium invoice for the fourth month following 
16.22 	disenrollment.

16.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.24 	Sec. 23. Minnesota Statutes 2014, section 256L.07, subdivision 1, is amended to read:
16.25 		Subdivision 1.General requirements. Individuals enrolled in MinnesotaCare 
16.26 	under section 256L.04, subdivision 1, and individuals enrolled in MinnesotaCare under 
16.27 	section 256L.04, subdivision 7, whose income increases above 200 percent of the federal 
16.28 	poverty guidelines, are no longer eligible for the program and shall be disenrolled 
16.29 	by the commissioner. For persons disenrolled under this subdivision, MinnesotaCare 
16.30 	coverage terminates the last day of the calendar month following the month in which the 
16.31 	commissioner determines that sends advance notice in accordance with Code of Federal 
16.32 	Regulations, title 42, section 431.211, that indicates the income of a family or individual 
16.33 	exceeds program income limits.

16.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

17.1 	Sec. 24. Minnesota Statutes 2015 Supplement, section 256L.15, subdivision 1, is 
17.2 	amended to read:
17.3 		Subdivision 1.Premium determination for MinnesotaCare. (a) Families with 
17.4 	children and individuals shall pay a premium determined according to subdivision 2.
17.5 	(b) Members of the military and their families who meet the eligibility criteria 
17.6 	for MinnesotaCare upon eligibility approval made within 24 months following the end 
17.7 	of the member's tour of active duty shall have their premiums paid by the commissioner. 
17.8 	The effective date of coverage for an individual or family who meets the criteria of this 
17.9 	paragraph shall be the first day of the month following the month in which eligibility is 
17.10 	approved. This exemption applies for 12 months.
17.11 	(c) Beginning July 1, 2009, American Indians enrolled in MinnesotaCare and their 
17.12 	families shall have their premiums waived by the commissioner in accordance with section 
17.13 	5006 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5. An 
17.14 	individual must document indicate status as an American Indian, as defined under Code of 
17.15 	Federal Regulations, title 42, section 447.50, to qualify for the waiver of premiums. The 
17.16 	commissioner shall accept attestation of an individual's status as an American Indian as 
17.17 	verification until the United States Department of Health and Human Services approves 
17.18 	an electronic data source for this purpose.
17.19 	(d) For premiums effective August 1, 2015, and after, the commissioner, after 
17.20 	consulting with the chairs and ranking minority members of the legislative committees 
17.21 	with jurisdiction over human services, shall increase premiums under subdivision 2 
17.22 	for recipients based on June 2015 program enrollment. Premium increases shall be 
17.23 	sufficient to increase projected revenue to the fund described in section 16A.724 by at 
17.24 	least $27,800,000 for the biennium ending June 30, 2017. The commissioner shall publish 
17.25 	the revised premium scale on the Department of Human Services Web site and in the State 
17.26 	Register no later than June 15, 2015. The revised premium scale applies to all premiums 
17.27 	on or after August 1, 2015, in place of the scale under subdivision 2.
17.28 	(e) By July 1, 2015, the commissioner shall provide the chairs and ranking minority 
17.29 	members of the legislative committees with jurisdiction over human services the revised 
17.30 	premium scale effective August 1, 2015, and statutory language to codify the revised 
17.31 	premium schedule.
17.32 	(f) Premium changes authorized under paragraph (d) must only apply to enrollees 
17.33 	not otherwise excluded from paying premiums under state or federal law. Premium 
17.34 	changes authorized under paragraph (d) must satisfy the requirements for premiums for 
17.35 	the Basic Health Program under title 42 of Code of Federal Regulations, section 600.505.

17.36 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.1 	Sec. 25.  REPEALER.
 18.2 	(a) Minnesota Statutes 2014, section 256B.059, subdivision 1a, is repealed.
18.3 	(b) Minnesota Statutes 2014, sections 256L.04, subdivisions 2a and 8; 256L.22; 
18.4 	256L.24; 256L.26; and 256L.28, are repealed.

18.5 	EFFECTIVE DATE. Paragraph (a) is effective June 1, 2016. Paragraph (b) is 
18.6 	effective the day following final enactment.

18.7 	ARTICLE 2
18.8 	CHILDREN AND FAMILIES

18.9 	Section 1. Minnesota Statutes 2014, section 119B.011, subdivision 6, is amended to 
18.10 	read:
18.11 		Subd. 6.Child care fund. "Child care fund" means a program under this chapter 
18.12 	providing:
18.13 	(1) financial assistance for child care to support: (i) parents engaged in employment, 
18.14 	job search, or education and training leading to employment, or an at-home infant child 
18.15 	care subsidy;, and (ii) the development and school readiness of children; and
18.16 	(2) grants to develop, expand, and improve the access and availability of child 
18.17 	care services statewide.

18.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.19 	Sec. 2. Minnesota Statutes 2014, section 119B.011, is amended by adding a subdivision 
18.20 	to read:
18.21 		Subd. 13b.Homeless. "Homeless" means a self-declared housing status as defined 
18.22 	in the McKinney-Vento Homeless Assistance Act, United States Code, title 42, section 
18.23 	11302 (section 725 of subtitle VII-B).

18.24 	EFFECTIVE DATE. This section is effective March 13, 2017.

18.25 	Sec. 3. Minnesota Statutes 2014, section 119B.011, is amended by adding a subdivision 
18.26 	to read:
18.27 		Subd. 16a.Legal nonlicensed related provider. "Legal nonlicensed related 
18.28 	provider" means a legal nonlicensed child care provider under subdivision 16 who only 
18.29 	cares for children related to the provider.

18.30 	EFFECTIVE DATE. This section is effective December 5, 2016.

19.1 	Sec. 4. Minnesota Statutes 2014, section 119B.011, is amended by adding a subdivision 
19.2 	to read:
19.3 		Subd. 16b.Legal nonlicensed unrelated provider. "Legal nonlicensed unrelated 
19.4 	provider" means a legal nonlicensed child care provider under subdivision 16 who cares 
19.5 	for children from a single unrelated family or both related children and children from a 
19.6 	single unrelated family.

19.7 	EFFECTIVE DATE. This section is effective December 5, 2016.

19.8 	Sec. 5. Minnesota Statutes 2014, section 119B.011, subdivision 19, is amended to read:
19.9 		Subd. 19.Provider. (a) "Provider" means: 
19.10 	(1) an individual or child care center or facility, either licensed under chapter 245A 
19.11 	or unlicensed certified under section 119B.127, providing legal child care services as 
19.12 	defined under section 245A.03; or
19.13 	(2) an individual or child care center or facility holding a valid child care license 
19.14 	issued by another state or a tribe and providing child care services in the licensing state 
19.15 	or in the area under the licensing tribe's jurisdiction.; or 
19.16 	(3) a legal nonlicensed child care provider as defined under subdivisions 16, 16a, 
19.17 	and 16b providing legal child care services.
19.18 	(b) A legally unlicensed family legal nonlicensed child care provider must be at least 
19.19 	18 years of age, and not a member of the MFIP assistance unit or a member of the family 
19.20 	receiving child care assistance to be authorized under this chapter.

19.21 	EFFECTIVE DATE. This section is effective December 5, 2016.

19.22 	Sec. 6. Minnesota Statutes 2014, section 119B.011, subdivision 20, is amended to read:
19.23 		Subd. 20.Transition year families. "Transition year families" means families who 
19.24 	have received MFIP assistance, or who were eligible to receive MFIP assistance after 
19.25 	choosing to discontinue receipt of the cash portion of MFIP assistance under section 
19.26 	256J.31, subdivision 12, or families who have received DWP assistance under section 
19.27 	256J.95 for at least three one of the last six months before losing eligibility for MFIP or 
19.28 	DWP. Notwithstanding Minnesota Rules, parts 3400.0040, subpart 10, and 3400.0090, 
19.29 	subpart 2, transition year child care may be used to support approved employment, 
19.30 	education or training programs, or a job search. Transition year child care is not available 
19.31 	to families who have been disqualified from MFIP or DWP due to fraud.

19.32 	EFFECTIVE DATE. This section is effective January 2, 2017.

20.1 	Sec. 7. Minnesota Statutes 2014, section 119B.011, subdivision 20a, is amended to read:
20.2 		Subd. 20a.Transition year extension families. "Transition year extension 
20.3 	families" means families who have completed their transition year of child care assistance 
20.4 	under this subdivision and who are eligible for, but on a waiting list for, services under 
20.5 	section 119B.03. For purposes of sections 119B.03, subdivision 3, and 119B.05, 
20.6 	subdivision 1, clause (2), families participating in extended transition year shall not be 
20.7 	considered transition year families. Notwithstanding Minnesota Rules, parts 3400.0040, 
20.8 	subpart 10, and 3400.0090, subpart 2, transition year extension child care may be used to 
20.9 	support approved employment, education or training programs, or a job search that meets 
20.10 	the requirements of section 119B.10 for the length of time necessary for families to be 
20.11 	moved from the basic sliding fee waiting list into the basic sliding fee program.

20.12 	EFFECTIVE DATE. This section is effective January 2, 2017.

20.13 	Sec. 8. Minnesota Statutes 2014, section 119B.02, subdivision 1, is amended to read:
20.14 		Subdivision 1.Child care services. The commissioner shall develop standards for 
20.15 	county and human services boards to provide child care services to enable eligible families 
20.16 	to participate in employment, training, or education programs. Within the limits of 
20.17 	available appropriations, the commissioner shall distribute money to counties to reduce the 
20.18 	costs of child care for eligible families. The commissioner shall adopt rules to govern the 
20.19 	program in accordance with this section. The rules must establish a sliding schedule of fees 
20.20 	for parents receiving child care services. The rules shall provide that funds received as a 
20.21 	lump-sum payment of child support arrearages shall not be counted as income to a family in 
20.22 	the month received but shall be prorated over the 12 months following receipt and added to 
20.23 	the family income during those months. The commissioner may establish how frequently 
20.24 	expedited application processing timelines are used for an applicant who declares they 
20.25 	are homeless. The commissioner shall maximize the use of federal money under title I 
20.26 	and title IV of Public Law 104-193, the Personal Responsibility and Work Opportunity 
20.27 	Reconciliation Act of 1996, and other programs that provide federal or state reimbursement 
20.28 	for child care services for low-income families who are in education, training, job search, 
20.29 	or other activities allowed under those programs. Money appropriated under this section 
20.30 	must be coordinated with the programs that provide federal reimbursement for child care 
20.31 	services to accomplish this purpose. Federal reimbursement obtained must be allocated to 
20.32 	the county that spent money for child care that is federally reimbursable under programs 
20.33 	that provide federal reimbursement for child care services. The counties shall use the 
20.34 	federal money to expand child care services. The commissioner may adopt rules under 
20.35 	chapter 14 to implement and coordinate federal program requirements.

21.1 	EFFECTIVE DATE. This section is effective March 13, 2017.

21.2 	Sec. 9. Minnesota Statutes 2014, section 119B.02, subdivision 5, is amended to read:
21.3 		Subd. 5.Program integrity. For child care assistance programs under this 
21.4 	chapter, the commissioner shall enforce the requirements for program integrity and fraud 
21.5 	prevention investigations under chapter 245E and sections 256.046, 256.98, and 256.983.

21.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.7 	Sec. 10. Minnesota Statutes 2014, section 119B.02, is amended by adding a subdivision 
21.8 	to read:
21.9 		Subd. 8.Contracts with child care providers. The commissioner may enter 
21.10 	into contractual agreements with child care providers as defined in section 119B.011, 
21.11 	subdivision 19, to waive policies in this chapter for eligible applicants or providers, 
21.12 	subject to applicable federal regulations and requirements.

21.13 	EFFECTIVE DATE. This section is effective January 1, 2018.

21.14 	Sec. 11. Minnesota Statutes 2015 Supplement, section 119B.025, subdivision 1, 
21.15 	is amended to read:
21.16 		Subdivision 1.Factors which must be verified Applications. (a) The county shall 
21.17 	verify the following at all initial child care applications using the universal application:
21.18 	(1) identity of adults;
21.19 	(2) presence of the minor child in the home, if questionable;
21.20 	(3) relationship of minor child to the parent, stepparent, legal guardian, eligible 
21.21 	relative caretaker, or the spouses of any of the foregoing;
21.22 	(4) age;
21.23 	(5) immigration status, if related to eligibility;
21.24 	(6) Social Security number, if given;
21.25 	(7) income;
21.26 	(8) spousal support and child support payments made to persons outside the 
21.27 	household;
21.28 	(9) residence; and
21.29 	(10) inconsistent information, if related to eligibility.
21.30 	(b) If a family did not use the universal application or child care addendum to apply 
21.31 	for child care assistance, the family must complete the universal application or child care 
21.32 	addendum at its next eligibility redetermination and the county must verify the factors 
22.1 	listed in paragraph (a) as part of that redetermination. Once a family has completed a 
22.2 	universal application or child care addendum, the county shall use the redetermination 
22.3 	form described in paragraph (c) for that family's subsequent redeterminations. Eligibility 
22.4 	must be redetermined at least every six months. A family is considered to have met the 
22.5 	eligibility redetermination requirement if a complete redetermination form and all required 
22.6 	verifications are received within 30 days after the date the form was due. When the 30th 
22.7 	day after the date the form was due falls on a Saturday, Sunday, or legal holiday, the 30-day 
22.8 	time period is extended to include the next succeeding day that is not a Saturday, Sunday, 
22.9 	or legal holiday. Assistance shall be payable retroactively from the redetermination due 
22.10 	date. For a family where at least one parent is under the age of 21, does not have a high 
22.11 	school or general equivalency diploma, and is a student in a school district or another 
22.12 	similar program that provides or arranges for child care, as well as parenting, social 
22.13 	services, career and employment supports, and academic support to achieve high school 
22.14 	graduation, the redetermination of eligibility shall be deferred beyond six months, but not 
22.15 	to exceed 12 months, to the end of the student's school year. If a family reports a change 
22.16 	in an eligibility factor before the family's next regularly scheduled redetermination, the 
22.17 	county must recalculate eligibility without requiring verification of any eligibility factor 
22.18 	that did not change. Changes must be reported as required by section 256P.07. A change 
22.19 	in income occurs on the day the participant received the first payment reflecting the 
22.20 	change in income. The county must mail a notice of approval or denial of assistance to the 
22.21 	applicant within 30 calendar days after receiving the application. The county may extend 
22.22 	the response time by 15 calendar days if the applicant is informed of the extension.
22.23 	(c) The commissioner shall develop a redetermination form to redetermine eligibility 
22.24 	and a change report form to report changes that minimize paperwork for the county and 
22.25 	the participant. The county must provide a notice of approval or denial of assistance to 
22.26 	the applicant who declares that the applicant is homeless and who meets the definition 
22.27 	of homeless under this chapter within five working days after receiving the application. 
22.28 	Verifications required by paragraph (a) are not due prior to issuing the notice of approval 
22.29 	or denial. Proof of eligibility must be submitted within three months of the date the 
22.30 	application was received. If proof of eligibility is not submitted within three months, 
22.31 	eligibility ends. A 15-day adverse action notice is required to end eligibility.

22.32 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective January 2, 2017. 
22.33 	Paragraph (c) is effective March 13, 2017.

22.34 	Sec. 12. Minnesota Statutes 2014, section 119B.025, is amended by adding a 
22.35 	subdivision to read:
23.1 		Subd. 3.Redeterminations. (a) Notwithstanding Minnesota Rules, part 3400.0180, 
23.2 	item A, the county shall redetermine eligibility according to paragraphs (b) to (f).
23.3 	(b) If a family did not use the universal application or child care addendum to apply 
23.4 	for child care assistance, the family must complete the universal application or child care 
23.5 	addendum at the family's next eligibility redetermination and the county must verify the 
23.6 	factors listed in subdivision 1, paragraph (a), as part of that redetermination.
23.7 	(c) Once a family has completed a universal application or child care addendum, the 
23.8 	county shall use the redetermination form for the family's subsequent redeterminations. 
23.9 	(d) Eligibility must be redetermined no more frequently than every 12 months. 
23.10 	The following apply:
23.11 	(1) a county must receive a family's complete redetermination form and required 
23.12 	verifications within 30 days after the date the form was due. When the 30th day after the 
23.13 	date the form was due falls on a Saturday, Sunday, or legal holiday, the 30-day time period is 
23.14 	extended to include the next succeeding day that is not a Saturday, Sunday, or legal holiday. 
23.15 	Assistance shall be payable retroactively from the redetermination due date. If the county 
23.16 	does not timely receive the completed redetermination form and required verifications, the 
23.17 	family is not eligible for child care assistance. Eligibility ends on the day the form was due;
23.18 	(2) for a family where at least one parent is under 21 years of age and who does not 
23.19 	have a high school or general equivalency diploma and is a student in a school district 
23.20 	or another similar program that provides or arranges for child care, parenting, social 
23.21 	services, career and employment supports, and academic support to achieve high school 
23.22 	graduation, eligibility redetermination may be deferred beyond 12 months, to the end 
23.23 	of the student's school year; and
23.24 	(3) a family and the family's providers must be notified that the family's 
23.25 	redetermination is due at least 45 days before the end of the family's 12-month eligibility 
23.26 	period.
23.27 	(e) At redetermination, if a family's income is greater than 67 percent and less 
23.28 	than or equal to 85 percent of the state median income, adjusted for family size, the 
23.29 	family remains eligible for child care assistance for 12 additional months. The family's 
23.30 	co-payment fee after redetermination is the largest co-payment fee for their family size.
23.31 	(f) At redetermination, if a family's income is greater than 85 percent of the state 
23.32 	median income, adjusted for family size, the family is not eligible for child care assistance.  
23.33 	Eligibility ends following the 15-day adverse action notice requirements.

23.34 	EFFECTIVE DATE. This section is effective January 2, 2017.

24.1 	Sec. 13. Minnesota Statutes 2014, section 119B.025, is amended by adding a 
24.2 	subdivision to read:
24.3 		Subd. 4.Changes. (a) The county shall process changes to eligibility factors 
24.4 	according to the following standards:
24.5 	(1) changes must be reported according to section 256P.07;
24.6 	(2) if a family reports a change or change is known to the agency before the family's 
24.7 	next scheduled redetermination, the county must determine whether the change affects the 
24.8 	family's eligibility or benefits and whether changes need to be verified;
24.9 	(3) a change in income occurs on the day the participant received the first payment 
24.10 	reflecting the income change;
24.11 	(4) during a family's 12-month eligibility period, if the family's income remains at 
24.12 	or below 85 percent of the state median income, adjusted for family size, the family's 
24.13 	eligibility does not change. Verification of the change shall not be requested. A family's 
24.14 	co-payment fee shall not increase during the remaining portion of the 12-month eligibility 
24.15 	period; and
24.16 	(5) during a family's 12-month eligibility period, if the family's income exceeds 85 
24.17 	percent of the state median income, adjusted for family size, the family is not eligible for 
24.18 	child care assistance. The family must be given 15 calendar days to provide verification 
24.19 	of the change before action is taken regarding the family's eligibility. If the required 
24.20 	verification is not returned or confirms ineligibility, the family's eligibility ends following 
24.21 	the 15-day adverse action notice requirements.
24.22 	(b) Notwithstanding Minnesota Rules, parts 3400.0040, subpart 3, and 3400.0170, 
24.23 	subpart 1, when an applicant or participant reports their employment ended, the agency may 
24.24 	accept a signed statement from the individual as verification that their employment ended.

24.25 	EFFECTIVE DATE. Paragraph (a), clauses (1) to (3), are effective retroactively 
24.26 	from August 1, 2016. Paragraphs (a), clauses (4) and (5), and (b), are effective January 
24.27 	2, 2017.

24.28 	Sec. 14. Minnesota Statutes 2014, section 119B.025, is amended by adding a 
24.29 	subdivision to read:
24.30 		Subd. 5.Forms. The commissioner shall develop a form to redetermine eligibility 
24.31 	and a form to report changes to minimize paperwork for the county and the participant.

24.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

24.33 	Sec. 15. Minnesota Statutes 2014, section 119B.03, subdivision 3, is amended to read:
25.1 		Subd. 3.Eligible participants. Families that meet the eligibility requirements 
25.2 	under sections 119B.07,119B.09, and 119B.10, except MFIP participants, diversionary 
25.3 	work program, and transition year families, are eligible for child care assistance under 
25.4 	the basic sliding fee program. Families enrolled in the basic sliding fee program shall be 
25.5 	continued until they are no longer eligible. Child care assistance provided through the 
25.6 	child care fund is considered assistance to the parent.

25.7 	Sec. 16. Minnesota Statutes 2014, section 119B.03, subdivision 9, is amended to read:
25.8 		Subd. 9.Portability pool. (a) The commissioner shall establish a pool of up to five 
25.9 	percent of the annual appropriation for the basic sliding fee program to provide continuous 
25.10 	child care assistance for eligible families who move between Minnesota counties. At the 
25.11 	end of each allocation period, any unspent funds in the portability pool must be used for 
25.12 	assistance under the basic sliding fee program. If expenditures from the portability pool 
25.13 	exceed the amount of money available, the reallocation pool must be reduced to cover 
25.14 	these shortages.
25.15 	(b) To be eligible for portable basic sliding fee assistance, a family that has moved 
25.16 	from a county in which it was receiving basic sliding fee assistance to a county with a 
25.17 	waiting list for the basic sliding fee program must:
25.18 	(1) meet the income and eligibility guidelines for the basic sliding fee program; and
25.19 	(2) notify the new county of residence within 60 days of moving and submit 
25.20 	information to the new county of residence to verify eligibility for the basic sliding fee 
25.21 	program.
25.22 	(c) The receiving county must:
25.23 	(1) accept administrative responsibility for applicants for portable basic sliding fee 
25.24 	assistance at the end of the two months of assistance under the Unitary Residency Act;
25.25 	(2) continue portability pool basic sliding fee assistance for the lesser of six months 
25.26 	or until the family is able to receive assistance under the county's regular basic sliding 
25.27 	program; and
25.28 	(3) notify the commissioner through the quarterly reporting process of any family 
25.29 	that meets the criteria of the portable basic sliding fee assistance pool.

25.30 	EFFECTIVE DATE. This section is effective January 2, 2017.

25.31 	Sec. 17. Minnesota Statutes 2014, section 119B.09, subdivision 1, is amended to read:
25.32 		Subdivision 1.General eligibility requirements for all applicants for child 
25.33 	care assistance. (a) Child care services must be available to families who need child 
26.1 	care to find or keep employment or to obtain the training or education necessary to find 
26.2 	employment and who:
26.3 	(1) have household income less than or equal to 67 percent of the state median 
26.4 	income, adjusted for family size, at application and redetermination, and meet the 
26.5 	requirements of section 119B.05; receive MFIP assistance; and are participating in 
26.6 	employment and training services under chapter 256J; or
26.7 	(2) have household income less than or equal to 47 percent of the state median income, 
26.8 	adjusted for family size, at program entry application and less than or equal to 67 percent 
26.9 	of the state median income, adjusted for family size, at program exit redetermination.
26.10 	(b) Child care services must be made available as in-kind services.
26.11 	(c) All applicants for child care assistance and families currently receiving child care 
26.12 	assistance must be assisted and required to cooperate in establishment of paternity and 
26.13 	enforcement of child support obligations for all children in the family as a condition 
26.14 	of program eligibility. For purposes of this section, a family is considered to meet the 
26.15 	requirement for cooperation when the family complies with the requirements of section 
26.16 	256.741.
26.17 	(d) At application and redetermination, a family must self-certify that the family's 
26.18 	assets are less than or equal to $1,000,000.

26.19 	EFFECTIVE DATE. Paragraph (a) is effective January 2, 2017. Paragraph (d) is 
26.20 	effective March 13, 2017.

26.21 	Sec. 18. Minnesota Statutes 2015 Supplement, section 119B.09, subdivision 4, is 
26.22 	amended to read:
26.23 		Subd. 4.Eligibility; annual income; calculation. Annual income of the applicant 
26.24 	family is the current monthly income of the family multiplied by 12 or the income for 
26.25 	the 12-month period immediately preceding the date of application, or income calculated 
26.26 	by the method which provides the most accurate assessment of income available to the 
26.27 	family. Self-employment income must be calculated based on gross receipts less operating 
26.28 	expenses. Income must be recalculated when the family's income changes, but no less 
26.29 	often than every six months. For a family where at least one parent is under the age of 
26.30 	21, does not have a high school or general equivalency diploma, and is a student in a 
26.31 	school district or another similar program that provides or arranges for child care, as well 
26.32 	as parenting, social services, career and employment supports, and academic support to 
26.33 	achieve high school graduation, income must be recalculated when the family's income 
26.34 	changes, but otherwise shall be deferred beyond six months, but not to exceed 12 months, 
26.35 	to the end of the student's school year section 256P.05. Income changes are processed 
27.1 	under section 119B.025, subdivision 4. Included lump sums counted as income under 
27.2 	section 256P.06, subdivision 3, must be annualized over 12 months. Income must be 
27.3 	verified with documentary evidence. If the applicant does not have sufficient evidence of 
27.4 	income, verification must be obtained from the source of the income.

27.5 	EFFECTIVE DATE. This section is effective January 2, 2017.

27.6 	Sec. 19. Minnesota Statutes 2014, section 119B.09, subdivision 6, is amended to read:
27.7 		Subd. 6.Maximum child care assistance. (a) The maximum amount of child care 
27.8 	assistance a local agency may pay for in a two-week period is 120 hours per child.
27.9 	(b) Parents may choose one primary provider and one secondary provider paid per 
27.10 	child by child care assistance. The amount of care authorized for and paid to a child's 
27.11 	secondary provider is limited under sections 119B.10, subdivision 7, and 119B.13, 
27.12 	subdivisions 1 and 1a. The commissioner shall develop guidelines to allow for a change 
27.13 	of providers during a service period.

27.14 	EFFECTIVE DATE. This section is effective June 5, 2017.

27.15 	Sec. 20. Minnesota Statutes 2014, section 119B.09, subdivision 7, is amended to read:
27.16 		Subd. 7.Date of eligibility for assistance. (a) The date of eligibility for child care 
27.17 	assistance under this chapter is the later of the date the application was received by the 
27.18 	county; the beginning date of employment, education, or training; the date the infant is 
27.19 	born for applicants to the at-home infant care program; or the date a determination has 
27.20 	been made that the applicant is a participant in employment and training services under 
27.21 	Minnesota Rules, part 3400.0080, or chapter 256J.
27.22 	(b) Payment ceases for a family under the at-home infant child care program when a 
27.23 	family has used a total of 12 months of assistance as specified under section 119B.035. 
27.24 	Payment of child care assistance for employed persons on MFIP is effective the date of 
27.25 	employment or the date of MFIP eligibility, whichever is later. Payment of child care 
27.26 	assistance for MFIP or DWP participants in employment and training services is effective 
27.27 	the date of commencement of the services or the date of MFIP or DWP eligibility, 
27.28 	whichever is later. Payment of child care assistance for transition year child care must be 
27.29 	made retroactive to the date of eligibility for transition year child care.
27.30 	(c) Notwithstanding paragraph (b), payment of child care assistance for participants 
27.31 	eligible under section 119B.05 may only be made retroactive for a maximum of six three
27.32 	months from the date of application for child care assistance.

27.33 	EFFECTIVE DATE. This section is effective May 22, 2017.

28.1 	Sec. 21. Minnesota Statutes 2014, section 119B.09, subdivision 9a, is amended to read:
28.2 		Subd. 9a.Child care centers; assistance. (a) For the purposes of this subdivision, 
28.3 	"qualifying child" means a child who is not a child or dependent of an employee of the 
28.4 	child care provider. A licensed and license-exempt child care center owner or employee is 
28.5 	not eligible to receive child care subsidies under this chapter for a child in their family at a 
28.6 	child care center where they are an employee or a controlling individual under section 
28.7 	245A.02, subdivision 5a. Child care center owners and center employees are eligible to 
28.8 	receive child care assistance subsidies for a child in their family when the child attends a 
28.9 	provider where they are not an employee or a controlling individual.
28.10 	(b) Funds distributed under this chapter must not be paid for child care services that 
28.11 	are provided for a child or dependent of an employee under paragraph (a) unless at all 
28.12 	times at least 50 percent of the children for whom the child care provider is providing care 
28.13 	are qualifying children under paragraph (a).
28.14 	(c) If a child care provider satisfies the requirements for payment under paragraph 
28.15 	(b), but the percentage of qualifying children under paragraph (a) for whom the provider 
28.16 	is providing care falls below 50 percent, the provider shall have four weeks to raise the 
28.17 	percentage of qualifying children for whom the provider is providing care to at least 50 
28.18 	percent before payments to the provider are discontinued for child care services provided 
28.19 	for a child who is not a qualifying child.
28.20 	(d) This subdivision shall be implemented as follows:
28.21 	(1) no later than August 1, 2014, the commissioner shall issue a notice to providers 
28.22 	who have been identified as ineligible for funds distributed under this chapter as described 
28.23 	in paragraph (b); and
28.24 	(2) no later than January 5, 2015, payments to providers who do not comply with 
28.25 	paragraph (c) will be discontinued for child care services provided for children who are 
28.26 	not qualifying children.
28.27 	(e) If a child's authorization for child care assistance is terminated under this 
28.28 	subdivision, the county shall send a notice of adverse action to the provider and to the 
28.29 	child's parent or guardian, including information on the right to appeal, under Minnesota 
28.30 	Rules, part 3400.0185.
28.31 	(f) Funds paid to providers during the period of time between the issuance of a 
28.32 	notice under paragraph (d), clause (1), and discontinuation of payments under paragraph 
28.33 	(d), clause (2), must not be treated as overpayments under section 119B.11, subdivision 
28.34 	2a, due to noncompliance with this subdivision.
29.1 	(g) Nothing in this subdivision precludes the commissioner from conducting 
29.2 	fraud investigations relating to child care assistance, imposing sanctions, and obtaining 
29.3 	monetary recovery as otherwise provided by law.

29.4 	EFFECTIVE DATE. This section is effective June 5, 2017.

29.5 	Sec. 22. Minnesota Statutes 2014, section 119B.10, is amended to read:
29.6 	119B.10 EMPLOYMENT, EDUCATION, OR TRAINING ELIGIBILITY.
29.7 		Subdivision 1.Assistance for persons seeking and retaining employment. (a) 
29.8 	Applicants who are job searching and eligible for child care assistance under this chapter 
29.9 	are eligible for 60 hours of child care assistance per service period for three months from 
29.10 	the date of eligibility. Job searching at initial application is allowed one time per 12-month 
29.11 	period. The parent must meet employment requirements under paragraph (c), or education 
29.12 	requirements under subdivision 3, or have an MFIP or DWP employment plan to continue 
29.13 	receiving child care assistance after the initial three months.
29.14 	Persons who are seeking employment (b) Participants who meet the employment 
29.15 	requirements of paragraph (c) or who are attending an approved education or training 
29.16 	program  and who are eligible for receiving child care assistance under this section chapter
29.17 	are eligible to receive up to 240 an additional ten hours of child care assistance per 
29.18 	calendar year service period for job searching.
29.19 	(b) (c) At application and redetermination, employed persons who work at least an 
29.20 	average of 20 hours and full-time students who work at least an average of ten hours a week 
29.21 	and receive at least a minimum wage for all hours worked are eligible for continued child 
29.22 	care assistance for employment. For purposes of this section, work-study programs must be 
29.23 	counted as employment. Employed persons with an MFIP or DWP employment plan shall 
29.24 	receive child care assistance as specified in their employment plan. Child care assistance 
29.25 	during employment must be authorized as provided in paragraphs (c) and (d) to (i).
29.26 	(c) (d) When the person works for an hourly wage and the hourly wage is equal to or 
29.27 	greater than the applicable minimum wage, child care assistance shall be provided for the 
29.28 	actual hours of employment, break, and mealtime during the employment and travel time 
29.29 	up to two hours per day.
29.30 	(d) (e) When the person does not work for an hourly wage, child care assistance 
29.31 	must be provided for the lesser of:
29.32 	(1) the amount of child care determined by dividing gross earned income or for a 
29.33 	self-employed person the self-employment income determined under section 256P.05, 
30.1 	subdivision 2, by the applicable minimum wage, up to one hour every eight hours for 
30.2 	meals and break time, plus up to two hours per day for travel time; or
30.3 	(2) the amount of child care equal to the actual amount of child care used during 
30.4 	employment, including break and mealtime during employment, and travel time up to 
30.5 	two hours per day.
30.6 	(f) When authorizing the amount of care, the county agency must consider the 
30.7 	amount of time the parent reports on the application or redetermination form that the 
30.8 	child attends preschool, a Head Start program, or school while the parent is participating 
30.9 	in an authorized activity.
30.10 	(g) Care must be authorized and scheduled with a provider based on the applicant's 
30.11 	or participant's verified activity schedule when:
30.12 	(1) the family requests care from more than one provider per child; or
30.13 	(2) the family requests a legal nonlicensed provider.
30.14 	(h) When the conditions in paragraph (g) do not apply, the applicant's or participant's 
30.15 	activity schedule does not need to be verified and the amount of child care assistance 
30.16 	authorized can be used at times determined by the family.
30.17 	(i) If the family remains eligible at redetermination, a new authorization with fewer 
30.18 	hours, the same hours, or increased hours may be determined.
30.19 		Subd. 2.Financial eligibility required. Persons participating in employment 
30.20 	programs, training programs, or education programs are eligible for continued assistance 
30.21 	from the child care fund, if they are financially eligible under the sliding fee scale set 
30.22 	by the commissioner in section 119B.12.
30.23 		Subd. 3.Assistance for persons attending an approved education or training 
30.24 	program. (a) Money for eligible persons according to sections 119B.03, subdivision 
30.25 	3, and 119B.05, subdivision 1, shall be used to reduce child care costs for students, 
30.26 	including child care costs for students who are employed if also enrolled in an eligible 
30.27 	education program and making satisfactory progress toward completion of the program. 
30.28 	Counties shall not limit the duration of child care subsidies for a person in an employment 
30.29 	or educational program unless the person is ineligible for child care funds. Any other 
30.30 	limitation must be based on county policies included in the approved child care plan.
30.31 	(b) To be eligible, the student must be in good standing and making satisfactory 
30.32 	progress toward the degree. The maximum length of time a student is eligible for child 
30.33 	care assistance under the child care fund for education and training is no more than the 
30.34 	time necessary to complete the credit requirements for an associate or baccalaureate degree 
30.35 	as determined by the educational institution. Time limitations for child care assistance do 
30.36 	not apply to basic or remedial educational programs needed for postsecondary education 
31.1 	or employment. These programs include high school, general equivalency diploma, 
31.2 	and English as a second language. Programs exempt from this time limit must not run 
31.3 	concurrently with a postsecondary program.
31.4 	(c) If a student meets the conditions of paragraphs (a) and (b), child care assistance 
31.5 	must be authorized for all hours of class time and credit hours, including independent 
31.6 	study and internships, and up to two hours of travel time per day. Postsecondary students 
31.7 	shall receive four hours of child care assistance per credit hour for study time and 
31.8 	academic appointments per service period.
31.9 	(d) For an MFIP or DWP participant, child care assistance must be authorized 
31.10 	according to the person's employment plan. If an MFIP or DWP participant receiving 
31.11 	MFIP or DWP child care assistance under this chapter moves to another county, continues 
31.12 	to participate in authorized educational or training programs, and remains eligible for 
31.13 	MFIP or DWP child care assistance, the participant must receive continued child care 
31.14 	assistance from the county responsible for the participant's current employment plan 
31.15 	under section 256G.07.
31.16 	(e) When authorizing the amount of care, the county agency must consider the 
31.17 	amount of time the parent reports on the application or redetermination form that the 
31.18 	child attends preschool, a Head Start program, or school while the parent is participating 
31.19 	in an authorized activity.
31.20 	(f) Care must be authorized and scheduled with a provider based on the applicant's 
31.21 	or participant's verified activity schedule when the family requests:
31.22 	(1) care from more than one provider per child; or
31.23 	(2) a legal nonlicensed provider.
31.24 	(g) When the conditions in paragraph (f) do not apply, the applicant's or participant's 
31.25 	activity schedule does not need to be verified and the amount of child care assistance 
31.26 	authorized may be used at times determined by the family.
31.27 	(h) If the family remains eligible at redetermination, a new authorization with fewer 
31.28 	hours, the same hours, or increased hours may be determined.
31.29 		Subd. 4.Assistance for persons who are homeless. Applicants who are homeless 
31.30 	and eligible for child care assistance under this chapter are eligible for 60 hours of child 
31.31 	care assistance per service period for three months from the date the application is 
31.32 	received. Additional hours may be authorized as needed based on the parent's participation 
31.33 	in employment, education, or MFIP or DWP employment plan. To continue receiving 
31.34 	child care assistance after the initial three months, the parent must meet eligibility 
31.35 	requirements of this chapter.
32.1 		Subd. 5.Maintain steady child care authorizations. (a) Notwithstanding 
32.2 	Minnesota Rules, chapter 3400, the amount of child care authorized for employment 
32.3 	under subdivision 1, paragraph (c), education under subdivision 3, or an MFIP or DWP 
32.4 	employment plan, shall continue at a constant level until redetermination.
32.5 	(b) If the other parent moves in and is employed and has an approved education 
32.6 	or MFIP or DWP employment plan, the amount of care authorized shall continue at a 
32.7 	constant level until redetermination.
32.8 	(c) The amount of child care authorized shall not decrease when a participant's work 
32.9 	hours are reduced or a participant temporarily stops working or attending an approved 
32.10 	education program. Temporary changes include, but are not limited to, a medical leave, 
32.11 	seasonal employment fluctuations, or a school break between semesters. Families subject 
32.12 	to subdivisions 1, paragraph (g), and 3, paragraph (f), are exempt from this paragraph.
32.13 	(d) The amount of child care authorized can increase at any time if the participant 
32.14 	verifies the need for increased hours for authorized activities.
32.15 	(e) The amount of child care authorized can be reduced if a parent requests a 
32.16 	reduction or due to a change in:
32.17 	(1) the child's school schedule;
32.18 	(2) the custody schedule; or
32.19 	(3) the provider's availability.
32.20 	(f) The amount of child care authorized for families subject to subdivisions 1, 
32.21 	paragraph (g), and 3, paragraph (f), must change when the participant's activity schedule 
32.22 	changes.
32.23 	(g) When a child becomes 13 years of age or a child with a disability becomes 15 
32.24 	years of age, the amount of child care authorized shall continue at a constant level until 
32.25 	redetermination.
32.26 	(h) If the family remains eligible at redetermination, the amount of child care 
32.27 	authorized is based on subdivisions 1 and 3.
32.28 		Subd. 6.Extended eligibility. (a) A participant whose employment or education 
32.29 	program ends permanently, and who meets all other eligibility requirements under this 
32.30 	chapter, shall be eligible for child care assistance authorized at a constant level for up to 
32.31 	three months until the participant begins another authorized activity or redetermination, 
32.32 	whichever occurs first. When the other parent moves in and does not participate in an 
32.33 	authorized activity, and the family meets all other eligibility requirements under this 
32.34 	chapter, the family shall be eligible for child care assistance authorized at a constant 
32.35 	level for up to three months until the other parent begins an authorized activity or 
32.36 	redetermination, whichever occurs first.
33.1 	(b) If the family received three months of extended eligibility and redetermination is 
33.2 	not due, to continue receiving child care assistance the participant must be employed or 
33.3 	have an approved education or MFIP or DWP employment plan. If child care assistance 
33.4 	continues, the amount of child care authorized shall continue at a constant level until 
33.5 	redetermination unless a condition in subdivision 5, paragraph (e), applies. If the 
33.6 	participant's new activity requires more child care hours be authorized, the increased hours 
33.7 	of activity participation must be verified. Families subject to subdivision 1, paragraph 
33.8 	(g), or 3, paragraph (f), shall have child care assistance authorized based on a verified 
33.9 	activity schedule.
33.10 	(c) If the family's redetermination is before the end of the three-month extended 
33.11 	eligibility period to continue receiving child care assistance, the participant must meet 
33.12 	all eligibility requirements of this chapter. If child care assistance continues, the amount 
33.13 	of child care authorized is based on subdivision 1 or 3, or the approved MFIP or DWP 
33.14 	employment plan. Families subject to subdivision 1, paragraph (g), or 3, paragraph (f), 
33.15 	shall have child care authorized based on a verified activity schedule.
33.16 		Subd. 7.Authorization with a secondary provider. Care authorized with a 
33.17 	secondary provider shall not exceed 20 hours per service period per child. The total 
33.18 	amount of care authorized with both a primary and a secondary provider shall not exceed 
33.19 	the amount of care a child is eligible to receive.

33.20 	EFFECTIVE DATE. (a) Subdivision 1, paragraph (e), clause (1), is effective 
33.21 	January 2, 2017. 
33.22 	(b) Subdivisions 1, paragraphs (a) to (d) and (f) to (i); 3; 5, paragraphs (a) to (f) 
33.23 	and (h); and 6, are effective May 22, 2017.
33.24 	(c) Subdivision 4 is effective March 13, 2017.
33.25 	(d) Subdivision 5, paragraph (g), is effective October 10, 2016.
33.26 	(e) Subdivision 7 is effective June 5, 2017.

33.27 	Sec. 23. Minnesota Statutes 2014, section 119B.11, subdivision 2a, is amended to read:
33.28 		Subd. 2a.Recovery of overpayments. (a) An amount of child care assistance 
33.29 	paid to a recipient in excess of the payment due is recoverable by the county agency 
33.30 	under paragraphs (b) and (c), even when the overpayment was caused by agency error or 
33.31 	circumstances outside the responsibility and control of the family or provider.
33.32 	(b)(1) An overpayment must be recouped or recovered from the family if the 
33.33 	overpayment benefited the family by causing the family to pay less for child care expenses 
33.34 	than the family otherwise would have been required to pay under child care assistance 
34.1 	program requirements. Family overpayments must be established and recovered according 
34.2 	to clauses (1) to (4). The overpayment must not be established or collected when:
34.3 	(i) the overpayment is estimated to be less than $500;
34.4 	(ii) the overpayment occurred more than one year before the date of the overpayment 
34.5 	determination;
34.6 	(iii) the first three months of an overpayment occurred because of a failure to report 
34.7 	the permanent end to the parent's activity; or
34.8 	(iv) the overpayment is designated solely as agency error.
34.9 	(2) If the family remains eligible for child care assistance and an overpayment is 
34.10 	established, the overpayment must be recovered through recoupment as identified in 
34.11 	Minnesota Rules, part 3400.0187, except that the overpayments must be calculated and 
34.12 	collected on a service period basis. If the family no longer remains eligible for child 
34.13 	care assistance, the county may choose to initiate efforts to recover overpayments from 
34.14 	the family for overpayment less than $50. 
34.15 	If the overpayment is greater than or equal to $50 (3) If the family is no longer 
34.16 	eligible for child care assistance and an overpayment is established, the county shall seek 
34.17 	voluntary repayment of the overpayment from the family. 
34.18 	(4) If the county is unable to recoup the overpayment through voluntary repayment, 
34.19 	the county shall initiate civil court proceedings to recover the overpayment unless the 
34.20 	county's costs to recover the overpayment will exceed the amount of the overpayment. 
34.21 	(5) A family with an outstanding debt under this subdivision is not eligible for 
34.22 	child care assistance until: 
34.23 	(1) (i) the debt is paid in full; or 
34.24 	(2) (ii) satisfactory arrangements are made with the county to retire the debt 
34.25 	consistent with the requirements of this chapter and Minnesota Rules, chapter 3400, and 
34.26 	the family is in compliance with the arrangements.
34.27 	(c) The county must recover an overpayment from a provider if the overpayment did 
34.28 	not benefit the family by causing it to receive more child care assistance or to pay less 
34.29 	for child care expenses than the family otherwise would have been eligible to receive 
34.30 	or required to pay under child care assistance program requirements, and benefited the 
34.31 	provider by causing the provider to receive more child care assistance than otherwise 
34.32 	would have been paid on the family's behalf under child care assistance program 
34.33 	requirements. If the provider continues to care for children receiving child care assistance, 
34.34 	the overpayment must be recovered through reductions in child care assistance payments 
34.35 	for services as described in an agreement with the county. The provider may not charge 
34.36 	families using that provider more to cover the cost of recouping the overpayment. If the 
35.1 	provider no longer cares for children receiving child care assistance, the county may 
35.2 	choose to initiate efforts to recover overpayments of less than $50 from the provider. If the 
35.3 	overpayment is greater than or equal to $50, the county shall seek voluntary repayment of 
35.4 	the overpayment from the provider. If the county is unable to recoup the overpayment 
35.5 	through voluntary repayment, the county shall initiate civil court proceedings to recover 
35.6 	the overpayment unless the county's costs to recover the overpayment will exceed the 
35.7 	amount of the overpayment. A provider with an outstanding debt under this subdivision is 
35.8 	not eligible to care for children receiving child care assistance until:
35.9 	(1) the debt is paid in full; or
35.10 	(2) satisfactory arrangements are made with the county to retire the debt consistent 
35.11 	with the requirements of this chapter and Minnesota Rules, chapter 3400, and the provider 
35.12 	is in compliance with the arrangements.
35.13 	(d) When both the family and the provider acted together to intentionally cause the 
35.14 	overpayment, both the family and the provider are jointly liable for the overpayment 
35.15 	regardless of who benefited from the overpayment. The county must recover the 
35.16 	overpayment as provided in paragraphs (b) and (c). When the family or the provider is in 
35.17 	compliance with a repayment agreement, the party in compliance is eligible to receive 
35.18 	child care assistance or to care for children receiving child care assistance despite the 
35.19 	other party's noncompliance with repayment arrangements.
35.20 	(e) A provider overpayment designated as an agency error because of the application 
35.21 	of an incorrect maximum rate must not be established or collected. All other provider 
35.22 	overpayments designated as agency error must be established and collected.
35.23 	(f) Notwithstanding any provision to the contrary in this subdivision, an overpayment 
35.24 	must be collected if the overpayment was caused in any part by wrongfully obtaining 
35.25 	assistance under section 256.98 or by benefits paid while an action is pending appeal 
35.26 	under section 119B.16, when on appeal the commissioner finds that the appellant was not 
35.27 	eligible for the amount of child care assistance paid.

35.28 	EFFECTIVE DATE. This section is effective January 2, 2017.

35.29 	Sec. 24. Minnesota Statutes 2014, section 119B.12, subdivision 2, is amended to read:
35.30 		Subd. 2.Parent fee. A family must be assessed a parent fee for each service period. 
35.31 	A family's parent fee must be a fixed percentage of its annual gross income. Parent fees 
35.32 	must apply to families eligible for child care assistance under sections 119B.03 and 
35.33 	119B.05. Income must be as defined in section 119B.011, subdivision 15. The fixed 
35.34 	percent is based on the relationship of the family's annual gross income to 100 percent of 
35.35 	the annual state median income. Parent fees must begin at 75 percent of the poverty level. 
36.1 	The minimum parent fees for families between 75 percent and 100 percent of poverty level 
36.2 	must be $2 per biweekly period. Parent fees must provide for graduated movement to full 
36.3 	payment. At initial application, the parent fee is established for the family's 12-month 
36.4 	eligibility period. At redetermination, if the family remains eligible, the parent fee is 
36.5 	recalculated and is established for the next 12-month eligibility period. Parent fees shall 
36.6 	not increase during the 12-month eligibility period. Payment of part or all of a family's 
36.7 	parent fee directly to the family's child care provider on behalf of the family by a source 
36.8 	other than the family shall not affect the family's eligibility for child care assistance, and 
36.9 	the amount paid shall be excluded from the family's income. Child care providers who 
36.10 	accept third-party payments must maintain family specific documentation of payment 
36.11 	source, amount, and time period covered by the payment.

36.12 	EFFECTIVE DATE. This section is effective January 2, 2017.

36.13 	Sec. 25. Minnesota Statutes 2014, section 119B.125, subdivision 1b, is amended to read:
36.14 		Subd. 1b.Training required. (a) Effective November 1, 2011, Prior to initial 
36.15 	authorization as required in subdivision 1, a legal nonlicensed family child care provider 
36.16 	must:
36.17 	(1) complete first aid and CPR training and provide the verification of first aid and 
36.18 	CPR training to the county. provided by an individual approved to administer first aid and 
36.19 	CPR instruction, including CPR techniques for infants and children; and
36.20 	The (2) provide and maintain training documentation must have with valid effective 
36.21 	dates as of the date the registration request is submitted to the county. 
36.22 	The training must have been provided by an individual approved to provide first aid 
36.23 	and CPR instruction and have included CPR techniques for infants and children.
36.24 	(b) Legal nonlicensed family child care related  providers with an authorization 
36.25 	effective before November 1, 2011, must be notified of the requirements before October 
36.26 	1, 2011, or at authorization, and must meet the requirements upon renewal of an 
36.27 	authorization that occurs on or after January 1, 2012. must:
36.28 	(1) if caring for a child through four years of age, complete training on abusive head 
36.29 	trauma within 90 days after initial authorization;
36.30 	(2) if caring for a child less than 12 months old, complete training on reducing the 
36.31 	risk of sudden unexpected infant death within 90 days after initial authorization; and
36.32 	(3) if authorized to care for children before December 5, 2016, meet the training 
36.33 	requirements prior to renewing an authorization on or after February 1, 2017.
36.34 	(c) Legal nonlicensed unrelated providers must:
37.1 	(1) complete a provider orientation class within 90 days after initial authorization. 
37.2 	The commissioner must develop the provider orientation class that includes training on 
37.3 	maintaining health, safety, and fire standards. The training must include the following 
37.4 	components:
37.5 	(i) prevention and control of infectious disease;
37.6 	(ii) reducing the risk of sudden unexpected infant death;
37.7 	(iii) abusive head trauma;
37.8 	(iv) administration of medication;
37.9 	(v) prevention and response to emergencies due to food and allergic reactions;
37.10 	(vi) building and physical premises safety;
37.11 	(vii) emergency preparedness;
37.12 	(viii) handling and storage of hazardous material and appropriate disposal of 
37.13 	biocontaminant;
37.14 	(ix) precautions in transporting children;
37.15 	(x) recognition and reporting of child abuse and neglect; and
37.16 	(xi) developmental needs of a child; and
37.17 	(2) if authorized to care for children before December 5, 2016, complete a provider 
37.18 	orientation class before renewing an authorization on or after February 1, 2017.
37.19 	(d) Upon each reauthorization after the authorization period when the initial first aid 
37.20 	and CPR training requirements are met, a legal nonlicensed family child care unrelated 
37.21 	provider must provide verification of at least eight hours of additional training listed in 
37.22 	the Minnesota Center for Professional Development Registry complete training on the 
37.23 	topics in paragraph (c), clause (1).
37.24 	(d) This subdivision only applies to legal nonlicensed family child care providers.
37.25 	(e) Legal nonlicensed providers with an authorization effective before September 1, 
37.26 	2016, must be notified of the training requirements before November 1, 2016.

37.27 	EFFECTIVE DATE. Subdivision 1b, paragraphs (a) to (d), are effective December 
37.28 	5, 2016.

37.29 	Sec. 26. Minnesota Statutes 2014, section 119B.125, is amended by adding a 
37.30 	subdivision to read:
37.31 		Subd. 10.Reporting required for child safety. A legal nonlicensed provider must 
37.32 	report to the county agency a death, serious injury, or instance of substantiated child 
37.33 	maltreatment that occurred while a child was in the provider's care. A county agency shall 
37.34 	report to the commissioner, in a manner prescribed by the commissioner, the number of 
38.1 	deaths, serious injuries, and instances of substantiated child maltreatment that occurred 
38.2 	in legal nonlicensed providers.

38.3 	EFFECTIVE DATE. This section is effective December 5, 2016.

38.4 	Sec. 27. Minnesota Statutes 2014, section 119B.125, is amended by adding a 
38.5 	subdivision to read:
38.6 		Subd. 11.Emergency preparedness plan. A legal nonlicensed provider must 
38.7 	have a written emergency preparedness plan. The commissioner shall develop a form for 
38.8 	providers to create a written emergency plan.

38.9 	EFFECTIVE DATE. This section is effective December 5, 2016.

38.10 	Sec. 28. Minnesota Statutes 2014, section 119B.125, is amended by adding a 
38.11 	subdivision to read:
38.12 		Subd. 12.Compliance with health and safety requirements. (a) The county 
38.13 	agency must inspect at least once annually each legal nonlicensed unrelated provider. 
38.14 	The results of the inspections shall be available to the public. The county agency shall 
38.15 	notify a provider of this policy when a provider requests to be an authorized provider. 
38.16 	The commissioner must establish health, safety, and fire standards specific to a legal 
38.17 	nonlicensed unrelated provider. The commissioner must develop a tool for the county 
38.18 	agency to conduct inspections of a legal nonlicensed unrelated provider.
38.19 	(b) The county agency must be given access to the physical facility and grounds 
38.20 	where care is provided and to persons cared for by the legal nonlicensed unrelated 
38.21 	provider. The county agency must be given access without prior notice and as often 
38.22 	as the county agency considers necessary if the county agency is investigating alleged 
38.23 	maltreatment, a violation of laws or rules, or conducting an inspection. Failure to give 
38.24 	access to the county agency may result in revocation of the legal nonlicensed unrelated 
38.25 	provider's authorization to receive payment under this chapter.
38.26 	(c) The commissioner must develop a process for a legal nonlicensed unrelated 
38.27 	provider to correct violations of the health, safety, and fire standards.
38.28 	(d) The commissioner must develop a process to revoke a legal nonlicensed 
38.29 	unrelated provider's authorization to receive payment under this chapter when the provider 
38.30 	fails to correct violations of the health, safety, and fire standards.

38.31 	EFFECTIVE DATE. This section is effective December 5, 2016.

39.1 	Sec. 29. [119B.127] CERTIFICATION OF LICENSE-EXEMPT CHILD CARE 
39.2 	CENTERS TO REGISTER FOR CHILD CARE ASSISTANCE PAYMENTS.
39.3 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
39.4 	subdivision have the meanings given them.
39.5 	(b) "Certified license-exempt child care center" means the commissioner's written 
39.6 	authorization for a child care center excluded from licensure under section 245A.03, 
39.7 	subdivision 2, paragraph (a), clause (5), (6), (11) to (13), (15), (18), or (26), to be 
39.8 	authorized to register to receive child care assistance payments (CCAP) under this chapter.
39.9 	(c) "Center operator" or "program operator" means the person or organization 
39.10 	exercising supervision or control over the program operations, planning, and functioning.
39.11 		Subd. 2.Application for certification as a certified license-exempt child 
39.12 	care center. (a) The certification of license-exempt programs shall be implemented 
39.13 	by November 1, 2017. Certification applications shall be received and processed on a 
39.14 	phased-in schedule as determined by the commissioner.
39.15 	(b) The certification application must be submitted in a manner prescribed by the 
39.16 	commissioner. The commissioner shall provide application instructions and information 
39.17 	about the rules and requirements of other state agencies that affect the applicant. The 
39.18 	commissioner shall respond to the applicant within 90 days of receiving a completed 
39.19 	application. An application is not complete until the commissioner receives all of the 
39.20 	information required under section 245C.05.
39.21 	(c) When the commissioner receives an application for initial certification that is 
39.22 	incomplete because the applicant failed to submit required documents or is deficient 
39.23 	because the documents submitted do not meet certification requirements, the commissioner 
39.24 	shall provide the applicant written notice that the application is incomplete or deficient. 
39.25 	In the written notice, the commissioner shall identify documents that are missing or 
39.26 	deficient and give the applicant 45 days to resubmit a second application that is complete. 
39.27 	An applicant's failure to submit a complete application after receiving notice from the 
39.28 	commissioner is basis for certification denial.
39.29 		Subd. 2a.Exemptions. Programs that are exempt from licensure under section 
39.30 	245A.03, subdivision 2, clauses (5), (6), (11) to (13), (15), (18), and (26), must be certified 
39.31 	as certified license-exempt child care centers according to this section to receive child 
39.32 	care assistance payments under this chapter.
39.33 		Subd. 3.Commissioner's right of access. (a) When the commissioner is 
39.34 	exercising the powers conferred by this chapter, whenever the program is in operation 
39.35 	and the information is relevant to the commissioner's inspection or investigation, the 
39.36 	commissioner must be given access to:
40.1 	(1) the physical facility and grounds where the program is provided;
40.2 	(2) documentation and records, including records maintained in electronic format;
40.3 	(3) children served by the program; and
40.4 	(4) staff and personnel records of current staff.
40.5 	(b) The commissioner must be given access without prior notice and as often 
40.6 	as the commissioner considers necessary if the commissioner is investigating alleged 
40.7 	maltreatment, or a violation of laws or rules, or conducting an inspection. When 
40.8 	conducting inspections, the commissioner may request and shall receive assistance from 
40.9 	other state, county, and municipal governmental agencies and departments. The applicant 
40.10 	or certification holder shall allow the commissioner to photocopy, photograph, and make 
40.11 	audio and video recordings during an inspection at the commissioner's expense.
40.12 		Subd. 4.Monitoring and inspections. (a) The commissioner must conduct an 
40.13 	on-site inspection of a certified license-exempt child care center at least annually to 
40.14 	determine compliance with the health, safety, and fire standards specific to certified 
40.15 	license-exempt child care centers.
40.16 	(b) No later than November 1, 2017, the commissioner shall make publicly available 
40.17 	on the department's Web site the results of inspection reports for all certified centers 
40.18 	including the number of deaths, serious injuries, and instances of substantiated child 
40.19 	maltreatment that occurred in certified centers each year.
40.20 		Subd. 5.Correction order. (a) If the applicant or certification holder failed to 
40.21 	comply with a law or rule, the commissioner may issue a correction order. The correction 
40.22 	order must state the:
40.23 	(1) condition that constitutes a violation of the law or rule;
40.24 	(2) specific law or rule violated; and
40.25 	(3) time allowed to correct each violation.
40.26 	(b) If the applicant or certification holder believes that the commissioner's correction 
40.27 	order is erroneous, the applicant or certification holder may ask the commissioner to 
40.28 	reconsider the part of the correction order that is allegedly erroneous. A request for 
40.29 	reconsideration must be made in writing, postmarked and sent to the commissioner within 
40.30 	20 calendar days after the applicant or certification holder received the correction order, 
40.31 	and:
40.32 	(1) specify the part of the correction order that is allegedly erroneous;
40.33 	(2) explain why the specified part is erroneous; and
40.34 	(3) include documentation to support the allegation of error.
41.1 	(c) A request for reconsideration does not stay any provision or requirement of 
41.2 	the correction order. The commissioner's disposition of a request for reconsideration is 
41.3 	final and not subject to appeal.
41.4 	(d) If the commissioner finds that the applicant or certification holder failed to 
41.5 	correct the violation specified in the correction order, the commissioner may revoke the 
41.6 	certification pursuant to subdivision 6.
41.7 	(e) Nothing in this section prohibits the commissioner from decertifying a center 
41.8 	according to subdivision 6, paragraph (a).
41.9 		Subd. 6.Decertification. (a) The commissioner may decertify a center if a 
41.10 	certification holder:
41.11 	(1) fails to comply with an applicable law or rule; or
41.12 	(2) knowingly withheld relevant information from or gave false or misleading 
41.13 	information to the commissioner for a certification application or the background study 
41.14 	status of an individual.
41.15 	(b) When considering decertification, the commissioner shall consider the nature, 
41.16 	chronicity, or severity of the violation of law or rule.
41.17 	(c) When a center is decertified, the center is ineligible to receive CCAP.
41.18 		Subd. 7.Staffing requirements. During hours of operation, a certified center must 
41.19 	have a director or designee on site who is responsible for overseeing written policies 
41.20 	relating to the management and control of the daily activities of the program, ensuring the 
41.21 	health and safety of program participants, and supervising staff and volunteers.
41.22 		Subd. 8.Ratios and group size. (a) The minimally acceptable staff-to-child 
41.23 	ratios are:

41.24	33 months old through prekindergarten
	1:10
	
41.25	kindergarten through grade 6
	1:15
	
41.26	grades 7 through 12
	1:20
	
41.27 	(b) For mixed groups, the ratio for the age group of the youngest child applies.
41.28 	(c) For children 33 months old through prekindergarten, a maximum group size 
41.29 	shall be no more than 20 children.
41.30 	(d) For children in kindergarten through grade 6, a maximum group size shall be 
41.31 	no more than 30 children.
41.32 	(e) The maximum group size applies at all times except during meals, outdoor 
41.33 	activities, field trips, naps and rest, and special activities such as films, guest speakers, and 
41.34 	holiday programs.
41.35 		Subd. 9.Background study. (a) The applicant or certification holder must submit 
41.36 	and maintain documentation of a successfully completed background study for:
42.1 	(1) each person applying for the certification;
42.2 	(2) current or prospective employees or contractors of the program who shall have 
42.3 	direct contact with a child served by the program;
42.4 	(3) volunteers who shall have direct contact with a child served by the program if the 
42.5 	contact is not under the continuous, direct supervision by an individual listed in clause 
42.6 	(1) or (2); and
42.7 	(4) a program director and all managerial staff with oversight and supervision of a 
42.8 	certified center.
42.9 	(b) To be accepted for certification, a background study on an individual in paragraph 
42.10 	(a) must be completed under chapter 245C and result in a not disqualified determination 
42.11 	under section 245C.14 or a disqualification that was set aside under section 245C.22.
42.12 		Subd. 10.Reporting. (a) The certification holder must comply with the reporting 
42.13 	requirements for abuse and neglect specified in section 626.556.
42.14 	(b) The certification holder must inform the commissioner within 24 hours of:
42.15 	(1) the death of a child in the program; and
42.16 	(2) any injury to a child in the program that required treatment by a physician.
42.17 		Subd. 11.Fees. The commissioner shall consult with stakeholders to gather input 
42.18 	to develop an administrative fee to implement this section. By February 15, 2017, 
42.19 	the commissioner shall provide recommendations to the legislative committees with 
42.20 	jurisdiction over health and human services policy and finance.
42.21 		Subd. 12.Health and safety requirements. (a) A certified center must document 
42.22 	and follow a health and safety plan. The certification holder must ensure staff are trained 
42.23 	on the policies and procedures in the health and safety plan at orientation and annually 
42.24 	thereafter. The certification holder must provide staff with an orientation class within 90 
42.25 	days of the staff member beginning employment. Before the completion of orientation 
42.26 	class, the staff member must be supervised while providing direct care to a child. The 
42.27 	certification holder must document when the training was completed in the personnel 
42.28 	file for each person.
42.29 	(b) The plan must include policies:
42.30 	(1) for exclusion of sick children and infectious disease outbreak control, requiring 
42.31 	a program to:
42.32 	(i) supervise and isolate a child from other children in the program when a child 
42.33 	becomes sick and immediately notify the isolated child's parent or legal guardian; and
42.34 	(ii) post or give notice to the parent or legal guardian of an exposed child the 
42.35 	same day the program is notified of a child's contagious reportable disease specified in 
42.36 	Minnesota Rules, part 4605.7040, or lice, scabies, impetigo, ringworm, or chicken pox;
43.1 	(2) to record current immunizations or applicable exemption for each child. By a 
43.2 	child's date of enrollment, certified license-exempt child care centers must maintain or have 
43.3 	access to a record detailing the child's current immunizations or applicable exemption;
43.4 	(3) to provide staff training on reducing the risk of sudden, unexpected infant death 
43.5 	and abusive head trauma and document the date of the training in the personnel record 
43.6 	for staff, requiring:
43.7 	(i) centers that care for an infant, as defined as a child who is at least six weeks old 
43.8 	but less than 16 months old, to document that staff and volunteers received training, in 
43.9 	compliance with section 245A.1435, on reducing the risk of sudden, unexpected infant 
43.10 	death before assisting in the care of an infant; or
43.11 	(ii) a center that cares for a child through four years of age to document that staff 
43.12 	and volunteers received training on abusive head trauma from shaking infants and young 
43.13 	children before assisting in the care of a child through four years of age;
43.14 	(4) for a certification holder who chooses to administer medicine to:
43.15 	(i) obtain written permission from the child's parent or legal guardian before 
43.16 	administering prescription medicine, diapering product, sunscreen lotion, and insect 
43.17 	repellent;
43.18 	(ii) administer nonprescription medicine, diapering product, sunscreen lotion, and 
43.19 	insect repellent according to the manufacturer's instructions unless there are written 
43.20 	instructions for their use by a licensed health professional;
43.21 	(iii) obtain and follow written instructions, such as medicine with the child's first and 
43.22 	last name and current prescription information on the label, from the prescribing health 
43.23 	professional before administering prescription medicine; and
43.24 	(iv) ensure all medicine:
43.25 	(A) be kept in its original container with a legible label stating the child's first and 
43.26 	last name;
43.27 	(B) be given only to the child whose name is on the label;
43.28 	(C) not be given after an expiration date on the label;
43.29 	(D) that is unused be returned to the child's parent or legal guardian or be destroyed;
43.30 	(E) administration is recorded with the child's first and last name; the name of the 
43.31 	medication or prescription number; the date, time, and dosage; and the name and signature 
43.32 	of the person who dispensed the medicine; and
43.33 	(F) administration records are maintained in the child's record and available to 
43.34 	the child's parent or legal guardian; and
43.35 	(v) store medicines, insect repellents, and diaper rash control products according to 
43.36 	directions on the original container;
44.1 	(5) to prevent and respond to allergic reactions, requiring the certification holder to:
44.2 	(i) train staff on the program's policy, at least annually;
44.3 	(ii) obtain, prior to admitting a child for care, documentation of the child's allergies 
44.4 	from the child's parent or legal guardian, including but not limited to:
44.5 	(A) a description of the allergy, specific triggers, avoidance techniques, and 
44.6 	symptoms of an allergic reaction; and
44.7 	(B) procedures for responding to an allergic reaction, including medication, dosages, 
44.8 	and a doctor's contact information;
44.9 	(iii) maintain current information of a child's allergy in the child's record;
44.10 	(iv) train staff and volunteers, at least annually or when changes are made to 
44.11 	allergy-related information in a child's record;
44.12 	(v) document the date of all training in this subdivision in the personnel record 
44.13 	for each staff person; and
44.14 	(vi) make information about a child's food allergies readily available to staff in the 
44.15 	area where food is prepared and served to a child with food allergies;
44.16 	(6) to ensure building and physical premises safety, requiring a certification holder to:
44.17 	(i) document compliance with applicable State Fire Code by providing 
44.18 	documentation of a fire marshal inspection completed within the previous three years by a 
44.19 	state fire marshal or a local fire code inspector trained by the state fire marshal;
44.20 	(ii) document the process by which the center addresses physical premise 
44.21 	maintenance and general repairs in a timely manner;
44.22 	(iii) designate indoor and outdoor space used for child care on a facility site plan and 
44.23 	include the primary and secondary areas used for child care by the center;
44.24 	(iv) make a current health and safety plan available on site; and
44.25 	(v) ensure the facility is clean with structurally sound and functional furniture and 
44.26 	equipment that is appropriate to the age and size of a child who uses them;
44.27 	(7) for a safe environment free of hazards including, but not limited to:
44.28 	(i) items such as sharp objects, medicines, plastic bags, cleaning supplies, poisonous 
44.29 	plants, and chemicals must be stored out of reach of children; and
44.30 	(ii) safe handling and disposing of bodily fluids and other potentially infectious 
44.31 	fluids that requires, at a minimum, the use of gloves, disinfection of appropriate surfaces, 
44.32 	and fluid disposal in a securely sealed plastic bag;
44.33 	(8) for transporting a child, requiring:
44.34 	(i) compliance with all seat belt and child passenger restraint system requirements 
44.35 	under sections 169.685 and 169.686; and
45.1 	(ii) the driver of the vehicle holds a valid driver's license, appropriate to the vehicle 
45.2 	driven;
45.3 	(9) requiring first aid and cardiopulmonary resuscitation training for program staff 
45.4 	with direct supervision of a child, including at least one staff person who completed 
45.5 	first aid training and cardiopulmonary resuscitation training be present at all times at the 
45.6 	program, during field trips, and when transporting a child; and
45.7 	(10) for reporting suspected child maltreatment according to section 626.556 and for 
45.8 	reporting complaints about the operation of a child care program.
45.9 		Subd. 13.Emergency preparedness plan. (a) A certified center must have a 
45.10 	written emergency preparedness plan for emergencies that require evacuation, sheltering, 
45.11 	or other protection of children, such as in the event of fire, natural disaster, intruder, or 
45.12 	other threatening situations that may pose a health or safety hazard to children. The plan 
45.13 	must be written on a form developed by the commissioner and updated at least annually. 
45.14 	The plan must include:
45.15 	(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;
45.16 	(2) a designated relocation site and evacuation route;
45.17 	(3) procedures for notifying a child's parent or legal guardian of the relocation 
45.18 	and reunification with families;
45.19 	(4) accommodations for a child with disabilities or a chronic medical condition;
45.20 	(5) procedures for storing a child's medically necessary medicine that facilitates easy 
45.21 	removal during an evacuation or relocation;
45.22 	(6) procedures for continuing operations in the period during and after a crisis;
45.23 	(7) procedures for communicating with local emergency management officials, law 
45.24 	enforcement officials, or other appropriate state or local authorities; and
45.25 	(8) procedures for staff and volunteer emergency preparedness training and practice 
45.26 	drills.
45.27 	(b) The certification holder must train staff at orientation and annually on the 
45.28 	emergency preparedness plan and document training attendance in all personnel files. The 
45.29 	certified center must conduct at least quarterly one evacuation drill and one shelter-in-place 
45.30 	drill. The drills' date and time must be documented.
45.31 	(c) The certification holder must have an emergency preparedness plan available for 
45.32 	review upon request by the child's parent or legal guardian.
45.33 		Subd. 14.Personnel record. The certification holder must maintain a personnel 
45.34 	record for each staff person at the program that must contain:
45.35 	(1) the staff person's name, home address, telephone number, and date of birth;
46.1 	(2) documentation that the staff person completed required orientation and annual 
46.2 	trainings; and
46.3 	(3) documentation related to background studies required under subdivision 9.
46.4 		Subd. 15.School-age care program guidelines. The commissioner shall consult 
46.5 	with stakeholders, at least every five years, for input related to school-age care program 
46.6 	guidelines.
46.7 		Subd. 16.Certification standards. The commissioner shall regularly consult with 
46.8 	stakeholders for input related to implementing the standards in this section.
46.9 		Subd. 17.Parental access. An enrolled child's parent or legal guardian may visit 
46.10 	the certified center any time during the hours of operation.

46.11 	Sec. 30. Minnesota Statutes 2014, section 119B.13, subdivision 1, is amended to read:
46.12 		Subdivision 1.Subsidy restrictions. (a) Beginning February 3, 2014 March 13, 
46.13 	2017, the maximum rate paid for child care assistance in any county or county price 
46.14 	cluster under the child care fund shall be the greater of the 25th the 50th percentile of the 
46.15 	2011 most recent biennial child care provider rate survey or the maximum rate effective 
46.16 	November 28, 2011 under section 119B.02, subdivision 7. The commissioner may: (1) 
46.17 	assign a county with no reported provider prices to a similar price cluster; and (2) consider 
46.18 	county level access when determining final price clusters.
46.19 	(b) A rate which includes a special needs rate paid under subdivision 3 may be in 
46.20 	excess of the maximum rate allowed under this subdivision.
46.21 	(c) The department shall monitor the effect of this paragraph on provider rates. The 
46.22 	county shall pay the provider's full charges for every child in care up to the maximum 
46.23 	established. The commissioner shall determine the maximum rate for each type of care 
46.24 	on an hourly, full-day, and weekly basis, including special needs and disability care. The 
46.25 	maximum payment to a provider for one day of care must not exceed the daily rate. The 
46.26 	maximum payment to a provider for one week of care must not exceed the weekly rate.
46.27 	(d) The maximum payment to a licensed provider or license-exempt child care 
46.28 	center must not exceed:
46.29 	(1) the daily rate for one day of care;
46.30 	(2) the weekly rate for one week of care by a child's primary provider; or
46.31 	(3) two daily rates during two weeks of care by a child's secondary provider.
46.32 	(d) (e) Child care providers receiving reimbursement under this chapter must not 
46.33 	be paid activity fees or an additional amount above the maximum rates for care provided 
46.34 	during nonstandard hours for families receiving assistance.
47.1 	(e) (f) When the provider charge is greater than the maximum provider rate allowed, 
47.2 	the parent is responsible for payment of the difference in the rates in addition to any 
47.3 	family co-payment fee.
47.4 	(f) (g) All maximum provider rates changes shall be implemented on the Monday 
47.5 	following the effective date of the maximum provider rate.
47.6 	(g) (h) Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum 
47.7 	registration fees in effect on January 1, 2013, shall remain in effect.

47.8 	EFFECTIVE DATE. Paragraph (a) is effective March 13, 2017. Paragraphs (c) to 
47.9 	(e), (g), and (h) are effective June 5, 2017. Paragraph (f) is effective the day following 
47.10 	enactment and expires March 13, 2017.

47.11 	Sec. 31. Minnesota Statutes 2014, section 119B.13, subdivision 1a, is amended to read:
47.12 		Subd. 1a.Legal nonlicensed family child care provider rates. (a) Legal 
47.13 	nonlicensed family child care providers receiving reimbursement under this chapter must 
47.14 	be paid on an hourly basis for care provided to families receiving assistance.
47.15 	(b) The maximum rate paid to legal nonlicensed family child care providers must be 
47.16 	68 percent of the county maximum hourly rate for licensed family child care providers. In 
47.17 	counties or county price clusters where the maximum hourly rate for licensed family child 
47.18 	care providers is higher than the maximum weekly rate for those providers divided by 50, 
47.19 	the maximum hourly rate that may be paid to legal nonlicensed family child care providers 
47.20 	is the rate equal to the maximum weekly rate for licensed family child care providers 
47.21 	divided by 50 and then multiplied by 0.68. The maximum payment to a provider for one 
47.22 	day of care must not exceed the maximum hourly rate times ten. The maximum payment 
47.23 	to a provider for one week of care must not exceed the maximum hourly rate times 50.
47.24 	(c) The maximum payment to a legal nonlicensed family provider must not exceed:
47.25 	(1) the maximum hourly rate times ten for one day of care;
47.26 	(2) the maximum hourly rate for one week of care by a child's primary provider 
47.27 	times 50; or
47.28 	(3) the maximum hourly rate during two weeks of care by a child's secondary 
47.29 	provider times 20.
47.30 	(c) (d) A rate which includes a special needs rate paid under subdivision 3 may be in 
47.31 	excess of the maximum rate allowed under this subdivision.
47.32 	(d) (e) Legal nonlicensed family child care providers receiving reimbursement under 
47.33 	this chapter may not be paid registration fees for families receiving assistance.

47.34 	EFFECTIVE DATE. This section is effective June 5, 2017.

48.1 	Sec. 32. Minnesota Statutes 2014, section 119B.13, subdivision 4, is amended to read:
48.2 		Subd. 4.Rates charged to publicly subsidized families. (a) Child care providers 
48.3 	receiving reimbursement under this chapter may not charge a rate to clients receiving 
48.4 	assistance under this chapter that is higher than the private, full-paying client rate.
48.5 	(b) A provider shall not charge a family receiving child care assistance the difference 
48.6 	between the provider's rate and the payment received for child care assistance under 
48.7 	this chapter.

48.8 	EFFECTIVE DATE. This section is effective March 13, 2017.

48.9 	Sec. 33. Minnesota Statutes 2015 Supplement, section 119B.13, subdivision 6, is 
48.10 	amended to read:
48.11 		Subd. 6.Provider payments. (a) The provider shall bill for services provided 
48.12 	within ten days of the end of the service period. If bills are submitted within ten days of 
48.13 	the end of the service period, Payments under the child care fund shall be made within 30 
48.14 	21 days of receiving a complete bill from the provider. Counties or the state may establish 
48.15 	policies that make payments on a more frequent basis.
48.16 	(b) If a provider has received an authorization of care and been issued a billing form 
48.17 	for an eligible family, the bill must be submitted within 60 days of the last date of service on 
48.18 	the bill. A bill submitted more than 60 days after the last date of service must be paid if the 
48.19 	county determines that the provider has shown good cause why the bill was not submitted 
48.20 	within 60 days. Good cause must be defined in the county's child care fund plan under 
48.21 	section 119B.08, subdivision 3, and the definition of good cause must include county error. 
48.22 	Any bill submitted more than a year after the last date of service on the bill must not be paid.
48.23 	(c) If a provider provided care for a time period without receiving an authorization 
48.24 	of care and a billing form for an eligible family, payment of child care assistance may only 
48.25 	be made retroactively for a maximum of six months from the date the provider is issued 
48.26 	an authorization of care and billing form.
48.27 	(d) A county or the commissioner may refuse to issue a child care authorization 
48.28 	to a licensed or legal nonlicensed provider, revoke an existing child care authorization 
48.29 	to a licensed or legal nonlicensed provider, stop payment issued to a licensed or legal 
48.30 	nonlicensed provider, or refuse to pay a bill submitted by a licensed or legal nonlicensed 
48.31 	provider if:
48.32 	(1) the provider admits to intentionally giving the county materially false information 
48.33 	on the provider's billing forms;
49.1 	(2) a county or the commissioner finds by a preponderance of the evidence that the 
49.2 	provider intentionally gave the county materially false information on the provider's 
49.3 	billing forms, or provided false attendance records to a county or the commissioner;
49.4 	(3) the provider is in violation of child care assistance program rules, until the 
49.5 	agency determines those violations have been corrected;
49.6 	(4) the provider is operating after:
49.7 	(i) an order of suspension of the provider's license issued by the commissioner;
49.8 	(ii) an order of revocation of the provider's license; or
49.9 	(iii) a final order of conditional license issued by the commissioner for as long as the 
49.10 	conditional license is in effect;
49.11 	(5) the provider submits false attendance reports or refuses to provide documentation 
49.12 	of the child's attendance upon request; or
49.13 	(6) the provider gives false child care price information.
49.14 	(e) For purposes of paragraph (d), clauses (3), (5), and (6), the county or the 
49.15 	commissioner may withhold the provider's authorization or payment for a period of time 
49.16 	not to exceed three months beyond the time the condition has been corrected.
49.17 	(f) A county's payment policies must be included in the county's child care plan 
49.18 	under section 119B.08, subdivision 3. If payments are made by the state, in addition to 
49.19 	being in compliance with this subdivision, the payments must be made in compliance 
49.20 	with section 16A.124.

49.21 	EFFECTIVE DATE. This section is effective January 2, 2017.

49.22 	Sec. 34. Minnesota Statutes 2014, section 245A.04, subdivision 4, is amended to read:
49.23 		Subd. 4.Inspections; waiver. (a) Before issuing an initial license, the commissioner 
49.24 	shall conduct an inspection of the program. The inspection must include but is not limited 
49.25 	to:
49.26 	(1) an inspection of the physical plant;
49.27 	(2) an inspection of records and documents;
49.28 	(3) an evaluation of the program by consumers of the program; and
49.29 	(4) observation of the program in operation.; and
49.30 	(5) an inspection for the health, safety, and fire standards for a child care license 
49.31 	holder.
49.32 	For the purposes of this subdivision, "consumer" means a person who receives the 
49.33 	services of a licensed program, the person's legal guardian, or the parent or individual 
49.34 	having legal custody of a child who receives the services of a licensed program.
50.1 	(b) The evaluation required in paragraph (a), clause (3) or the observation in 
50.2 	paragraph (a), clause (4) is not required prior to issuing an initial license under subdivision 
50.3 	7. If the commissioner issues an initial license under subdivision 7, these requirements 
50.4 	must be completed within one year after the issuance of an initial license.
50.5 	(c) Beginning January 1, 2017, a child care provider licensed under this chapter 
50.6 	and Minnesota Rules, chapter 9502 or 9503, shall be inspected at least annually by the 
50.7 	commissioner or the county for compliance with applicable licensing standards.
50.8 	(d) No later than November 1, 2017, the commissioner shall make publicly available 
50.9 	on the department's Web site, the results of inspection reports for all providers licensed 
50.10 	under this chapter and Minnesota Rules, chapters 9502 and 9503, including the number of 
50.11 	deaths, serious injuries, and instances of substantiated child maltreatment that occurred 
50.12 	in licensed child care settings each year.

50.13 	Sec. 35. Minnesota Statutes 2014, section 245A.09, subdivision 7, is amended to read:
50.14 		Subd. 7.Regulatory methods. (a) Where appropriate and feasible the commissioner 
50.15 	shall identify and implement alternative methods of regulation and enforcement to the 
50.16 	extent authorized in this subdivision. These methods shall include:
50.17 	(1) expansion of the types and categories of licenses that may be granted;
50.18 	(2) when the standards of another state or federal governmental agency or an 
50.19 	independent accreditation body have been shown to require the same standards, methods, 
50.20 	or alternative methods to achieve substantially the same intended outcomes as the 
50.21 	licensing standards, the commissioner shall consider compliance with the governmental 
50.22 	or accreditation standards to be equivalent to partial compliance with the licensing 
50.23 	standards; and
50.24 	(3) use of an abbreviated inspection that employs key standards that have been 
50.25 	shown to predict full compliance with the rules.
50.26 	(b) If the commissioner accepts accreditation as documentation of compliance with a 
50.27 	licensing standard under paragraph (a), the commissioner shall continue to investigate 
50.28 	complaints related to noncompliance with all licensing standards. The commissioner 
50.29 	may take a licensing action for noncompliance under this chapter and shall recognize all 
50.30 	existing appeal rights regarding any licensing actions taken under this chapter.
50.31 	(c) The commissioner shall work with the commissioners of health, public 
50.32 	safety, administration, and education in consolidating duplicative licensing and 
50.33 	certification rules and standards if the commissioner determines that consolidation is 
50.34 	administratively feasible, would significantly reduce the cost of licensing, and would 
50.35 	not reduce the protection given to persons receiving services in licensed programs. 
51.1 	Where administratively feasible and appropriate, the commissioner shall work with the 
51.2 	commissioners of health, public safety, administration, and education in conducting joint 
51.3 	agency inspections of programs.
51.4 	(d) The commissioner shall work with the commissioners of health, public safety, 
51.5 	administration, and education in establishing a single point of application for applicants 
51.6 	who are required to obtain concurrent licensure from more than one of the commissioners 
51.7 	listed in this clause.
51.8 	(e) Unless otherwise specified in statute, the commissioner may conduct routine 
51.9 	inspections biennially.
51.10 	(f) For a licensed child care center, the commissioner shall conduct at least one 
51.11 	unannounced licensing inspection annually.

51.12 	Sec. 36. Minnesota Statutes 2014, section 245A.10, subdivision 2, is amended to read:
51.13 		Subd. 2.County fees for background studies and licensing inspections. (a) 
51.14 	Before the implementation of NETStudy 2.0, for purposes of family and group family 
51.15 	child care licensing under this chapter, a county agency may charge a fee to an applicant 
51.16 	or license holder to recover the actual cost of background studies, but in any case not to 
51.17 	exceed $100 annually. A county agency may also charge a license fee to an applicant or 
51.18 	license holder not to exceed $50 for a one-year license or $100 for a two-year license.
51.19 	(b) Before the implementation of NETStudy 2.0, a county agency may charge a fee 
51.20 	to a legal nonlicensed child care provider or applicant for authorization to recover the 
51.21 	actual cost of background studies completed under section 119B.125, but in any case not 
51.22 	to exceed $100 annually.
51.23 	(c) Counties may elect to reduce or waive the fees in paragraph (a) or (b):
51.24 	(1) in cases of financial hardship;
51.25 	(2) if the county has a shortage of providers in the county's area;
51.26 	(3) for new providers; or
51.27 	(4) for providers who have attained at least 16 hours of training before seeking 
51.28 	initial licensure.
51.29 	(d) Counties may allow providers to pay the applicant fees in paragraph (a) or (b) on 
51.30 	an installment basis for up to one year. If the provider is receiving child care assistance 
51.31 	payments from the state, the provider may have the fees under paragraph (a) or (b) 
51.32 	deducted from the child care assistance payments for up to one year and the state shall 
51.33 	reimburse the county for the county fees collected in this manner.
51.34 	(e) For purposes of adult foster care and child foster care licensing, and licensing 
51.35 	the physical plant of a community residential setting, under this chapter, a county agency 
52.1 	may charge a fee to a corporate applicant or corporate license holder to recover the actual 
52.2 	cost of licensing inspections, not to exceed $500 annually.
52.3 	(f) Counties may elect to reduce or waive the fees in paragraph (e) under the 
52.4 	following circumstances:
52.5 	(1) in cases of financial hardship;
52.6 	(2) if the county has a shortage of providers in the county's area; or
52.7 	(3) for new providers.

52.8 	Sec. 37. Minnesota Statutes 2014, section 245A.14, is amended by adding a 
52.9 	subdivision to read:
52.10 		Subd. 15.Parental access in child care programs. An enrolled child's parent or 
52.11 	legal guardian must be allowed to visit the program any time during the hours of operation.

52.12 	Sec. 38. [245A.1492] CHILD CARE EMERGENCY PLANNING AND 
52.13 	RESPONSE.
52.14 	No later than September 30, 2016, the commissioner shall develop and implement a 
52.15 	statewide child care disaster plan that addresses emergency preparedness, response, and 
52.16 	recovery efforts specific to child care services and programs licensed under this chapter 
52.17 	and registered under chapter 119B. The plan shall be published on the department's Web 
52.18 	site. The plan shall:
52.19 	(1) provide specific action the commissioner may take in emergency situations;
52.20 	(2) provide for the continuity of county and state CCAP operations during and 
52.21 	after a disaster;
52.22 	(3) administer temporary child care services during and after a disaster;
52.23 	(4) implement temporary operating, health, safety, and licensing standards for a child 
52.24 	care provider during and after a disaster;
52.25 	(5) coordinate with emergency management agencies and key partners; and
52.26 	(6) provide emergency and disaster preparedness training and technical assistance to 
52.27 	a child care license holder.

52.28 	Sec. 39. Minnesota Statutes 2014, section 245A.151, is amended to read:
52.29 	245A.151 FIRE MARSHAL INSPECTION.
52.30 	When licensure under this chapter requires an inspection by a fire marshal to 
52.31 	determine compliance with the State Fire Code under section 299F.011, a local fire code 
52.32 	inspector approved trained by the state fire marshal may conduct the inspection. If a 
52.33 	community does not have a local fire code inspector or if the local fire code inspector does 
53.1 	not perform the inspection, the state fire marshal must conduct the inspection. A local fire 
53.2 	code inspector or the state fire marshal may recover the cost of these inspections through a 
53.3 	fee of no more than $50 per inspection charged to the applicant or license holder. The fees 
53.4 	collected by the state fire marshal under this section are appropriated to the commissioner 
53.5 	of public safety for the purpose of conducting the inspections.

53.6 	Sec. 40. Minnesota Statutes 2015 Supplement, section 245A.16, subdivision 1, is 
53.7 	amended to read:
53.8 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and 
53.9 	private agencies that have been designated or licensed by the commissioner to perform 
53.10 	licensing functions and activities under section 245A.04 and background studies for family 
53.11 	child care under chapter 245C; to recommend denial of applicants under section 245A.05; 
53.12 	to issue correction orders, to issue variances, and recommend a conditional license under 
53.13 	section 245A.06; or to recommend suspending or revoking a license or issuing a fine under 
53.14 	section 245A.07, shall comply with rules and directives of the commissioner governing 
53.15 	those functions and with this section. The following variances are excluded from the 
53.16 	delegation of variance authority and may be issued only by the commissioner:
53.17 	(1) dual licensure of family child care and child foster care, dual licensure of child 
53.18 	and adult foster care, and adult foster care and family child care;
53.19 	(2) adult foster care maximum capacity;
53.20 	(3) adult foster care minimum age requirement;
53.21 	(4) child foster care maximum age requirement;
53.22 	(5) variances regarding disqualified individuals except that county agencies may 
53.23 	issue variances under section 245C.30 regarding disqualified individuals when the county 
53.24 	is responsible for conducting a consolidated reconsideration according to sections 245C.25 
53.25 	and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination 
53.26 	and a disqualification based on serious or recurring maltreatment;
53.27 	(6) the required presence of a caregiver in the adult foster care residence during 
53.28 	normal sleeping hours; and
53.29 	(7) variances to requirements relating to chemical use problems of a license holder 
53.30 	or a household member of a license holder.
53.31 	Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency 
53.32 	must not grant a license holder a variance to exceed the maximum allowable family child 
53.33 	care license capacity of 14 children.
53.34 	(b) County agencies must report information about disqualification reconsiderations 
53.35 	under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances 
54.1 	granted under paragraph (a), clause (5), to the commissioner at least monthly in a format 
54.2 	prescribed by the commissioner.
54.3 	(c) For family day child care programs, the commissioner may authorize shall 
54.4 	require a county agency to conduct at least one unannounced licensing reviews every two 
54.5 	years after a licensee has had at least one annual review inspection annually.
54.6 	(d) For family adult day services programs, the commissioner may authorize 
54.7 	licensing reviews every two years after a licensee has had at least one annual review.
54.8 	(e) A license issued under this section may be issued for up to two years.
54.9 	(f) During implementation of chapter 245D, the commissioner shall consider:
54.10 	(1) the role of counties in quality assurance;
54.11 	(2) the duties of county licensing staff; and
54.12 	(3) the possible use of joint powers agreements, according to section 471.59, with 
54.13 	counties through which some licensing duties under chapter 245D may be delegated by 
54.14 	the commissioner to the counties.
54.15 	Any consideration related to this paragraph must meet all of the requirements of the 
54.16 	corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.
54.17 	(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
54.18 	successor provisions; and section 245D.061 or successor provisions, for family child 
54.19 	foster care programs providing out-of-home respite, as identified in section 245D.03, 
54.20 	subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority 
54.21 	to county and private agencies.
54.22 	(h) A county agency shall report to the commissioner, in a manner prescribed by 
54.23 	the commissioner, the following information at least monthly for a licensed family child 
54.24 	care program:
54.25 	(1) the results of licensing inspections completed, including the date of the inspection 
54.26 	and any licensing correction order issued; and
54.27 	(2) the number of deaths, serious injuries, and instances of substantiated child 
54.28 	maltreatment.

54.29 	Sec. 41. Minnesota Statutes 2014, section 245A.16, is amended by adding a 
54.30 	subdivision to read:
54.31 		Subd. 8.Family child care licensing oversight. (a) Only county staff trained by the 
54.32 	commissioner on the family child care licensing standards in this chapter and Minnesota 
54.33 	Rules, chapter 9502, shall conduct licensing inspections to fulfill the requirements of 
54.34 	subdivision 1, paragraph (c). Training must occur within 90 days of beginning employment.
55.1 	(b) The commissioner shall consult with county representatives to develop a formula 
55.2 	to allocate county family child care licensing administrative aids.
55.3 	(c) If a county fails to comply with the child care components of this section, 
55.4 	the commissioner shall reduce or delay the state's county family child care licensing 
55.5 	administrative aid payment by up to 50 percent.

55.6 	Sec. 42. Minnesota Statutes 2014, section 245A.40, subdivision 1, is amended to read:
55.7 		Subdivision 1.Orientation. The child care center license holder must ensure that 
55.8 	every staff person and volunteer is given orientation training and successfully completes 
55.9 	the training before starting assigned duties. The orientation training in this subdivision 
55.10 	applies to volunteers who willshall have direct contact with or access to children and 
55.11 	who are not under the direct supervision of a staff person. Completion of the orientation 
55.12 	must be documented in the individual's personnel record. The orientation training must 
55.13 	include information about:
55.14 	(1) the center's philosophy, child care program, and procedures for maintaining the 
55.15 	health and, safety, and fire standards and handling emergencies and accidents;
55.16 	(2) specific job responsibilities;
55.17 	(3) the behavior guidance standards in Minnesota Rules, part 9503.0055; and
55.18 	(4) the reporting responsibilities in section 626.556, and Minnesota Rules, part 
55.19 	9503.0130.

55.20 	Sec. 43. Minnesota Statutes 2015 Supplement, section 245A.40, subdivision 3, is 
55.21 	amended to read:
55.22 		Subd. 3.First aid. (a) All teachers and assistant teachers in a child care center 
55.23 	governed by Minnesota Rules, parts 9503.0005 to 9503.0170, and at least one staff person 
55.24 	during field trips and when transporting children in care, must satisfactorily complete first 
55.25 	aid training within 90 days of the start of work, unless the training has been completed 
55.26 	within the previous three two years.
55.27 	(b) Notwithstanding paragraph (a), which allows 90 days to complete training, at 
55.28 	least one staff person who has satisfactorily completed first aid training must be present at 
55.29 	all times in the center, during field trips, and when transporting children in care.
55.30 	(c) The first aid training must be repeated at least every three two years, documented 
55.31 	in the person's personnel record and indicated on the center's staffing chart, and provided by 
55.32 	an individual approved as a first aid instructor. This training may be less than eight hours.

56.1 	Sec. 44. Minnesota Statutes 2015 Supplement, section 245A.40, subdivision 4, is 
56.2 	amended to read:
56.3 		Subd. 4.Cardiopulmonary resuscitation. (a) All teachers and assistant teachers 
56.4 	in a child care center governed by Minnesota Rules, parts 9503.0005 to 9503.0170, and 
56.5 	at least one staff person during field trips and when transporting children in care, must 
56.6 	satisfactorily complete training in cardiopulmonary resuscitation (CPR) that includes CPR 
56.7 	techniques for infants and children and in the treatment of obstructed airways. The CPR 
56.8 	training must be completed within 90 days of the start of work, unless the training has 
56.9 	been completed within the previous three two years. The CPR training must have been 
56.10 	provided by an individual approved to provide CPR instruction, must be repeated at least 
56.11 	once every three two years, and must be documented in the staff person's records.
56.12 	(b) Notwithstanding paragraph (a), which allows 90 days to complete training, at 
56.13 	least one staff person who has satisfactorily completed cardiopulmonary resuscitation 
56.14 	training must be present at all times in the center, during field trips, and when transporting 
56.15 	children in care.
56.16 	(c) CPR training may be provided for less than four hours.
56.17 	(d) Persons providing CPR training must use CPR training that has been developed:
56.18 	(1) by the American Heart Association or the American Red Cross and incorporates 
56.19 	psychomotor skills to support the instruction; or
56.20 	(2) using nationally recognized, evidence-based guidelines for CPR and incorporates 
56.21 	psychomotor skills to support the instruction.

56.22 	Sec. 45. Minnesota Statutes 2014, section 245A.40, subdivision 7, is amended to read:
56.23 		Subd. 7.In-service. (a) A license holder must ensure that an annual in-service 
56.24 	training plan is developed and carried out and that it meets the requirements in clauses (1) 
56.25 	to (7). The in-service training plan must: the center director and all staff who have direct 
56.26 	contact with a child complete annual in-service training.
56.27 	(1) be consistent with the center's child care program plan;
56.28 	(2) meet the training needs of individual staff persons as specified in each staff 
56.29 	person's annual evaluation report;
56.30 	(3) provide training, at least one-fourth of which is by a resource not affiliated 
56.31 	with the license holder;
56.32 	(4) include Minnesota Rules, parts 9503.0005 to 9503.0170, relevant to the staff 
56.33 	person's position and must occur within two weeks of initial employment;
56.34 	(5) provide that at least one-half of the annual in-service training completed by a staff 
56.35 	person each year pertains to the age of children for which the person is providing care;
57.1 	(6) provide that no more than four hours of each annual in-service training 
57.2 	requirement relate to administration, finances, and records training for a teacher, assistant 
57.3 	teacher, or aide; and
57.4 	(7) provide that the remainder of The in-service training requirement must be met 
57.5 	by participation in training in child growth and development; learning environment and 
57.6 	curriculum; assessment and planning for individual needs; interactions with children; 
57.7 	families and communities; health, safety, and nutrition; and program planning and 
57.8 	evaluation.
57.9 	(b) For purposes of this subdivision, the following terms have the meanings given 
57.10 	them.
57.11 	(1) "Child growth and development training" has the meaning given it in subdivision 
57.12 	2, paragraph (a).
57.13 	(2) "Learning environment and curriculum" means training in establishing an 
57.14 	environment that provides learning experiences to meet each child's needs, capabilities, 
57.15 	and interests, including early childhood education methods or theory, recreation, sports, 
57.16 	promoting creativity in the arts, arts and crafts methods or theory, and early childhood 
57.17 	special education methods or theory.
57.18 	(3) "Assessment and planning for individual needs" means training in observing and 
57.19 	assessing what children know and can do in order to provide curriculum and instruction that 
57.20 	addresses their developmental and learning needs, including children with special needs.
57.21 	(4) "Interactions with children" means training in establishing supportive 
57.22 	relationships with children and guiding them as individuals and as part of a group, 
57.23 	including child study techniques and behavior guidance.
57.24 	(5) "Families and communities" means training in working collaboratively with 
57.25 	families, agencies, and organizations to meet children's needs and to encourage the 
57.26 	community's involvement, including family studies and parent involvement.
57.27 	(6) "Health, safety, and nutrition" means training in establishing and maintaining an 
57.28 	environment that ensures children's health, safety, and nourishment, including first aid, 
57.29 	cardiopulmonary resuscitation, child nutrition, and child abuse and neglect prevention.
57.30 	(7) "Program planning and evaluation" means training in establishing, implementing, 
57.31 	evaluating, and enhancing program operations.
57.32 	(c) The director and all program staff persons must annually complete a number of 
57.33 	hours of in-service training equal to at least two percent of the hours for which the director 
57.34 	or program staff person is annually paid, unless one of the following is applicable.
57.35 	(1) A teacher at a child care center must complete one percent of working hours of 
57.36 	in-service training annually if the teacher:
58.1 	(i) possesses a baccalaureate or master's degree in early childhood education or 
58.2 	school-age care;
58.3 	(ii) is licensed in Minnesota as a prekindergarten teacher, an early childhood educator, 
58.4 	a kindergarten to sixth grade teacher with a prekindergarten specialty, an early childhood 
58.5 	special education teacher, or an elementary teacher with a kindergarten endorsement; or
58.6 	(iii) possesses a baccalaureate degree with a Montessori certificate.
58.7 	(2) A teacher or assistant teacher at a child care center must complete one and 
58.8 	one-half percent of working hours of in-service training annually if the individual is:
58.9 	(i) a registered nurse or licensed practical nurse with experience working with infants;
58.10 	(ii) possesses a Montessori certificate, a technical college certificate in early 
58.11 	childhood development, or a child development associate certificate; or
58.12 	(iii) possesses an associate of arts degree in early childhood education, a 
58.13 	baccalaureate degree in child development, or a technical college diploma in early 
58.14 	childhood development.
58.15 	(d) The number of required training hours may be prorated for individuals not 
58.16 	employed full time or for an entire year.
58.17 	(e) The annual in-service training must be completed within the calendar year for 
58.18 	which it was required. In-service training completed by staff persons is transferable upon 
58.19 	a staff person's change in employment to another child care program.
58.20 	(f) The license holder must ensure that, when a staff person completes in-service 
58.21 	training, the training is documented in the staff person's personnel record. The 
58.22 	documentation must include the date training was completed, the goal of the training and 
58.23 	topics covered, trainer's name and organizational affiliation, trainer's signed statement that 
58.24 	training was successfully completed, and the director's approval of the training.

58.25 	Sec. 46. [245A.41] CHILD CARE CENTER HEALTH AND SAFETY 
58.26 	REQUIREMENTS.
58.27 		Subdivision 1.Immunization records maintained. By a child's date of enrollment, 
58.28 	a licensed child care center must establish and maintain a record detailing current 
58.29 	immunizations or applicable exemption for each child according to section 121A.15.
58.30 		Subd. 2.Allergy prevention and response plan. (a) A licensed child care center 
58.31 	must develop written policies and procedures for preventing and responding to allergic 
58.32 	reactions. The license holder must train staff on the program's policy at orientation and at 
58.33 	least annually. 
58.34 	(b) Prior to admitting a child for care, the license holder must obtain documentation 
58.35 	of the child's allergy, if any, from the child's parent or legal guardian. The license holder 
59.1 	must maintain current information of a child's allergy in the child's record. The allergy 
59.2 	information must include but not be limited to a description of the allergy, specific triggers, 
59.3 	avoidance techniques, symptoms of an allergic reaction, and procedures for responding to 
59.4 	an allergic reaction, including medication, dosages, and a doctor's contact information. 
59.5 	At least annually or when changes are made to allergy-related information in the child's 
59.6 	record, the license holder must train staff and volunteers on the allergy prevention and 
59.7 	response information. The license holder must document the date of the training in the 
59.8 	personnel record for each staff member.
59.9 	(c) The child's food allergy information must be readily available to staff in the area 
59.10 	where food is prepared and served to the child.
59.11 		Subd. 3.Child care center emergency preparedness plan. (a) No later than 
59.12 	September 30, 2016, a licensed child care center must have a written emergency 
59.13 	preparedness plan for emergencies that require evacuation, sheltering, or other protection 
59.14 	of children, such as in the event of fire, natural disaster, intruder, or other threatening 
59.15 	situations that may pose a health or safety hazard to the children. The plan must be 
59.16 	written on a form developed by the commissioner and must be updated at least annually. 
59.17 	The plan must include:
59.18 	(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;
59.19 	(2) a designated relocation site and evacuation route;
59.20 	(3) procedures for notifying a child's parent or legal guardian of the relocation 
59.21 	and reunification with families;
59.22 	(4) accommodations for a child with disabilities or a chronic medical condition;
59.23 	(5) procedures for storing a child's medically necessary medicine that facilitates easy 
59.24 	removal during an evacuation or relocation;
59.25 	(6) procedures for continuing operations in the period during and after a crisis;
59.26 	(7) procedures for communicating with local emergency management officials, law 
59.27 	enforcement officials, or other appropriate state or local authorities; and
59.28 	(8) procedures for staff and volunteer emergency preparedness training and practice 
59.29 	drills.
59.30 	(b) The license holder must train staff at orientation and at least annually on the 
59.31 	emergency preparedness plan and document training attendance in all personnel files. The 
59.32 	license holder must conduct drills according to the requirements in Minnesota Rules, part 
59.33 	9503.0110, subpart 3. The drills' date and time must be documented.
59.34 	(c) The license holder must have an emergency preparedness plan available for 
59.35 	review upon request and posted in each room used for child care. The license holder must 
59.36 	provide a copy of the plan to the child's parent or legal guardian upon enrollment.

60.1 	Sec. 47. Minnesota Statutes 2014, section 245A.50, subdivision 9, is amended to read:
60.2 		Subd. 9.Supervising for safety; training requirement. Effective July 1, 2014, 
60.3 	all family child care license holders and each adult caregiver who provides care in the 
60.4 	licensed family child care home for more than 30 days in any 12-month period shall 
60.5 	complete and document at least six hours of approved training on supervising for safety 
60.6 	prior to initial licensure, and before caring for children. At least two hours of training 
60.7 	on supervising for safety must be repeated annually. For purposes of this subdivision, 
60.8 	"supervising for safety" includes supervision basics,; supervision outdoors, equipment and 
60.9 	materials, illness, injuries, and disaster; building and physical premise safety; prevention 
60.10 	and control of infectious disease, including immunization; administration of medication; 
60.11 	prevention and response to food allergies; emergency  preparedness and response planning; 
60.12 	storage of hazardous material and biocontaminant; and procedures for maintaining health 
60.13 	and safety. The commissioner shall develop the supervising for safety curriculum by 
60.14 	January 1, 2014 2017.

60.15 	Sec. 48. [245A.51] FAMILY CHILD CARE HEALTH AND SAFETY 
60.16 	REQUIREMENTS.
60.17 		Subdivision 1.Immunization records maintained. A licensed family child care 
60.18 	provider shall obtain, update, and maintain the dates of immunizations or applicable 
60.19 	exemption, provided in section 121A.15, for a child in regular attendance as follows:
60.20 	(1) for an infant, every six months;
60.21 	(2) for a toddler, annually;
60.22 	(3) for a child of preschool age, every 18 months; and
60.23 	(4) for a child of school age, every three years.
60.24 		Subd. 2.Allergy prevention and response plan. (a) The licensed family child care 
60.25 	provider must develop written policies and procedures for preventing and responding to 
60.26 	an allergic reaction. The license holder must train caregivers on the program's policies and 
60.27 	procedures at orientation and at least annually.
60.28 	(b) Before admitting a child for care, the license holder must obtain documentation 
60.29 	of the child's allergy, if any, from the child's parent or legal guardian. The license holder 
60.30 	must maintain current information of a child's allergy in the child's record. The allergy 
60.31 	information must include but not be limited to a description of the allergy, specific triggers, 
60.32 	avoidance techniques, symptoms of an allergic reaction, and procedures for responding to 
60.33 	an allergic reaction, including medication, dosages, and a doctor's contact information. 
60.34 	At least annually or when changes are made to the child's allergy information, the 
60.35 	license holder must train all staff and volunteers on the allergy prevention and response 
61.1 	information. The license holder must document the date of training in the personnel 
61.2 	record of each staff member. 
61.3 	(c) The child's food allergy information must be readily available to staff in the area 
61.4 	where food is prepared and served to the child.
61.5 		Subd. 3.Handling and disposal of biocontaminants. The licensed family child 
61.6 	care provider must develop written policies and procedures for safely handling and 
61.7 	disposing of bodily fluids.
61.8 		Subd. 4.Family child care emergency preparedness plan. (a) No later than 
61.9 	September 30, 2016, a licensed family child care provider must have a written emergency 
61.10 	preparedness plan for emergencies that require evacuation, sheltering or other protection 
61.11 	of children, such as in the event of fire, natural disaster, intruder, or other threatening 
61.12 	situations that may pose a health or safety hazard to children. The plan must be written on a 
61.13 	form developed by the commissioner and updated at least annually. The plan must include:
61.14 	(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;
61.15 	(2) a designated relocation site and evacuation route;
61.16 	(3) procedures for notifying a child's parent or legal guardian of the relocation 
61.17 	and reunification with families;
61.18 	(4) accommodations for a child with disabilities or a chronic medical condition;
61.19 	(5) procedures for storing a child's medically necessary medicine that facilitate easy 
61.20 	removal during an evacuation or relocation;
61.21 	(6) procedures for continuing operations in the period during and after a crisis;
61.22 	(7) procedures for communicating with local emergency management officials, law 
61.23 	enforcement officials, or other appropriate state or local authorities; and
61.24 	(8) procedures for staff and volunteer emergency preparedness training and practice 
61.25 	drills.
61.26 	(b) The license holder must train caregivers at orientation and at least annually 
61.27 	on the emergency preparedness plan and document completion of this training. The 
61.28 	license holder must conduct drills according to the requirements in Minnesota Rules, part 
61.29 	9502.0435, subpart 8. The drills' date and time must be documented.
61.30 	(c) The license holder must have an emergency preparedness plan available for 
61.31 	review and posted in a prominent location. The license holder must provide a copy of the 
61.32 	plan to the child's parent or legal guardian upon enrollment.

61.33 	Sec. 49. Minnesota Statutes 2014, section 245A.66, subdivision 2, is amended to read:
61.34 		Subd. 2.Child care centers; risk reduction plan. (a) Child care centers licensed 
61.35 	under this chapter and Minnesota Rules, chapter 9503, must develop a risk reduction plan 
62.1 	that identifies the general risks to children served by the child care center. The license 
62.2 	holder must establish procedures to minimize identified risks, train staff on the procedures, 
62.3 	and annually review the procedures.
62.4 	(b) The risk reduction plan must include an assessment of risk to children the 
62.5 	center serves or intends to serve and identify specific risks based on the outcome of the 
62.6 	assessment. The assessment of risk must be based on the following:
62.7 	(1) an assessment of the risks presented by the physical plant where the licensed 
62.8 	services are provided, including an evaluation of the following factors: the condition and 
62.9 	design of the facility and its outdoor space, bathrooms, storage areas, and accessibility 
62.10 	of medications and cleaning products that are harmful to children when children are not 
62.11 	supervised and the existence of areas that are difficult to supervise; and
62.12 	(2) an assessment of the risks presented by the environment for each facility and 
62.13 	for each site, including an evaluation of the following factors: the type of grounds and 
62.14 	terrain surrounding the building and the proximity to hazards, busy roads, and publicly 
62.15 	accessed businesses.
62.16 	(c) The risk reduction plan must include a statement of measures that willshall be 
62.17 	taken to minimize the risk of harm presented to children for each risk identified in the 
62.18 	assessment required under paragraph (b) related to the physical plant and environment. 
62.19 	At a minimum, the stated measures must include the development and implementation 
62.20 	of specific policies and procedures or reference to existing policies and procedures that 
62.21 	minimize the risks identified.
62.22 	(d) In addition to any program-specific risks identified in paragraph (b), the plan 
62.23 	must include development and implementation of specific policies and procedures or refer 
62.24 	to existing policies and procedures that minimize the risk of harm or injury to children, 
62.25 	including:
62.26 	(1) closing children's fingers in doors, including cabinet doors;
62.27 	(2) leaving children in the community without supervision;
62.28 	(3) children leaving the facility without supervision;
62.29 	(4) caregiver dislocation of children's elbows;
62.30 	(5) burns from hot food or beverages, whether served to children or being consumed 
62.31 	by caregivers, and the devices used to warm food and beverages;
62.32 	(6) injuries from equipment, such as scissors and glue guns;
62.33 	(7) sunburn;
62.34 	(8) feeding children foods to which they are allergic preventing and responding to 
62.35 	allergic reactions;
62.36 	(9) children falling from changing tables; and
63.1 	(10) children accessing dangerous items or chemicals or coming into contact with 
63.2 	residue from harmful cleaning products.
63.3 	(e) The plan shall prohibit the accessibility of hazardous items to children.
63.4 	(f) The plan must include specific procedures and policies for safely handling and 
63.5 	disposing of bodily fluids. The license holder's health consultant must certify that the 
63.6 	procedures and policies are adequate to protect the health of a child.
63.7 	(f) (g) The plan must include specific policies and procedures to ensure adequate 
63.8 	supervision of children at all times as defined under section 245A.02, subdivision 18, with 
63.9 	particular emphasis on:
63.10 	(1) times when children are transitioned from one area within the facility to another;
63.11 	(2) nap-time supervision, including infant crib rooms as specified under section 
63.12 	245A.02, subdivision 18, which requires that when an infant is placed in a crib to sleep, 
63.13 	supervision occurs when a staff person is within sight or hearing of the infant. When 
63.14 	supervision of a crib room is provided by sight or hearing, the center must have a plan to 
63.15 	address the other supervision components;
63.16 	(3) child drop-off and pick-up times;
63.17 	(4) supervision during outdoor play and on community activities, including but not 
63.18 	limited to field trips and neighborhood walks; and
63.19 	(5) supervision of children in hallways.

63.20 	Sec. 50. Minnesota Statutes 2014, section 245C.03, is amended by adding a 
63.21 	subdivision to read:
63.22 		Subd. 6a.Nonlicensed child care programs. Beginning October 1, 2017, the 
63.23 	commissioner shall conduct background studies on any individual required under section 
63.24 	119B.125 to have a background study completed under this chapter.

63.25 	Sec. 51. Minnesota Statutes 2014, section 245C.04, subdivision 1, is amended to read:
63.26 		Subdivision 1.Licensed programs. (a) The commissioner shall conduct a 
63.27 	background study of an individual required to be studied under section 245C.03, 
63.28 	subdivision 1, at least upon application for initial license for all license types.
63.29 	(b) Effective October 1, 2017, the commissioner shall conduct a background study 
63.30 	of an individual required to be studiedspecified under section 245C.03, subdivision 1, 
63.31 	who is newly affiliated with the license holder or at the time of reapplication for a license 
63.32 	for a family child care. license.
63.33 	(1) The individual shall provide information required under section 245C.05, 
63.34 	subdivision 1, paragraphs (a), (b), and (d), to the county agency.
64.1 	(2) The county agency shall provide the commissioner with the information received 
64.2 	under clause (1) to complete the background study.
64.3 	(3) The background study conducted by the commissioner under this paragraph must 
64.4 	include a review of the information required under section 245C.08.
64.5 	(c) The commissioner is not required to conduct a study of an individual at the time 
64.6 	of reapplication for a license if the individual's background study was completed by the 
64.7 	commissioner of human services and the following conditions are met:
64.8 	(1) a study of the individual was conducted either at the time of initial licensure or 
64.9 	when the individual became affiliated with the license holder;
64.10 	(2) the individual has been continuously affiliated with the license holder since 
64.11 	the last study was conducted; and
64.12 	(3) the last study of the individual was conducted on or after October 1, 1995.
64.13 	(d) The commissioner of human services shall conduct a background study of an 
64.14 	individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) 
64.15 	to (6), who is newly affiliated with a child foster care license holder. The county or 
64.16 	private agency shall collect and forward to the commissioner the information required 
64.17 	under section 245C.05, subdivisions 1 and 5. The background study conducted by the 
64.18 	commissioner of human services under this paragraph must include a review of the 
64.19 	information required under section 245C.08, subdivisions 1, 3, and 4.
64.20 	(e) The commissioner shall conduct a background study of an individual specified 
64.21 	under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly 
64.22 	affiliated with an adult foster care or family adult day services and effective October 1, 
64.23 	2017, with a family child care license holder or a legal nonlicensed child care provider 
64.24 	authorized under chapter 119B: (1) the county shall collect and forward to the commissioner 
64.25 	the information required under section 245C.05, subdivision 1, paragraphs (a) and (b), and 
64.26 	subdivision 5, paragraphs (a) and, (b), and (d), for background studies conducted by the 
64.27 	commissioner for all family adult day services and, for adult foster care when the adult 
64.28 	foster care license holder resides in the adult foster care residence, and for family child care 
64.29 	and legal nonlicensed child care authorized under chapter 119B; (2) the license holder shall 
64.30 	collect and forward to the commissioner the information required under section 245C.05, 
64.31 	subdivisions 1, paragraphs (a) and (b); and 5, paragraphs (a) and (b), for background 
64.32 	studies conducted by the commissioner for adult foster care when the license holder does 
64.33 	not reside in the adult foster care residence; and (3) the background study conducted by 
64.34 	the commissioner under this paragraph must include a review of the information required 
64.35 	under section 245C.08, subdivision 1, paragraph (a), and subdivisions 3 and 4.
65.1 	(f) Applicants for licensure, license holders, and other entities as provided in this 
65.2 	chapter must submit completed background study requests to the commissioner using the 
65.3 	electronic system known as NETStudy before individuals specified in section 245C.03, 
65.4 	subdivision 1, begin positions allowing direct contact in any licensed program.
65.5 	(g) For an individual who is not on the entity's active roster, the entity must initiate a 
65.6 	new background study through NETStudy when:
65.7 	(1) an individual returns to a position requiring a background study following an 
65.8 	absence of 120 or more consecutive days; or
65.9 	(2) a program that discontinued providing licensed direct contact services for 120 or 
65.10 	more consecutive days begins to provide direct contact licensed services again.
65.11 	The license holder shall maintain a copy of the notification provided to 
65.12 	the commissioner under this paragraph in the program's files. If the individual's 
65.13 	disqualification was previously set aside for the license holder's program and the new 
65.14 	background study results in no new information that indicates the individual may pose a 
65.15 	risk of harm to persons receiving services from the license holder, the previous set-aside 
65.16 	shall remain in effect.
65.17 	(h) For purposes of this section, a physician licensed under chapter 147 is considered 
65.18 	to be continuously affiliated upon the license holder's receipt from the commissioner of 
65.19 	health or human services of the physician's background study results.
65.20 	(i) For purposes of family child care, a substitute caregiver must receive repeat 
65.21 	background studies at the time of each license renewal.
65.22 	(j) A repeat background study at the time of license renewal is not required if the 
65.23 	substitute caregiver's background study was completed by the commissioner on or after 
65.24 	October 1, 2017, and the substitute caregiver is on the license holder's active roster 
65.25 	in NETStudy 2.0.

65.26 	Sec. 52. Minnesota Statutes 2014, section 245C.05, subdivision 2b, is amended to read:
65.27 		Subd. 2b.County agency to collect and forward information to commissioner.
 65.28 	(a) For background studies related to all family adult day services and to adult foster care 
65.29 	when the adult foster care license holder resides in the adult foster care residence, the 
65.30 	county agency must collect the information required under subdivision 1 and forward it to 
65.31 	the commissioner.
65.32 	(b) Effective October 1, 2017, for background studies related to family child care 
65.33 	and legal nonlicensed child care authorized under chapter 119B, the county agency must 
65.34 	collect the information required under subdivision 1 and provide it to the commissioner.

66.1 	Sec. 53. Minnesota Statutes 2014, section 245C.05, subdivision 4, is amended to read:
66.2 		Subd. 4.Electronic transmission. (a) For background studies conducted by the 
66.3 	Department of Human Services, the commissioner shall implement a secure system for the 
66.4 	electronic transmission of:
66.5 	(1) background study information to the commissioner;
66.6 	(2) background study results to the license holder;
66.7 	(3) background study results to county and private agencies for background studies 
66.8 	conducted by the commissioner for child foster care; and
66.9 	(4) background study results to county agencies for background studies conducted by 
66.10 	the commissioner for adult foster care and family adult day services and, effective October 
66.11 	1, 2017, family child care and legal nonlicensed child care authorized under chapter 119B.
66.12 	(b) Unless the commissioner has granted a hardship variance under paragraph (c), 
66.13 	a license holder or an applicant must use the electronic transmission system known 
66.14 	as NETStudy or NETStudy 2.0 to submit all requests for background studies to the 
66.15 	commissioner as required by this chapter.
66.16 	(c) A license holder or applicant whose program is located in an area in which 
66.17 	high-speed Internet is inaccessible may request the commissioner to grant a variance to 
66.18 	the electronic transmission requirement.

66.19 	Sec. 54. Minnesota Statutes 2014, section 245C.05, subdivision 7, is amended to read:
66.20 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or 
66.21 	corrections agent shall notify the commissioner of an individual's conviction if the 
66.22 	individual:
66.23 	(1) has been affiliated with a program or facility regulated by the Department of 
66.24 	Human Services or Department of Health, a facility serving children or youth licensed by 
66.25 	the Department of Corrections, or any type of home care agency or provider of personal 
66.26 	care assistance services within the preceding year; and
66.27 	(2) has been convicted of a crime constituting a disqualification under section 
66.28 	245C.14.
66.29 	(b) For the purpose of this subdivision, "conviction" has the meaning given it 
66.30 	in section 609.02, subdivision 5.
66.31 	(c) The commissioner, in consultation with the commissioner of corrections, shall 
66.32 	develop forms and information necessary to implement this subdivision and shall provide 
66.33 	the forms and information to the commissioner of corrections for distribution to local 
66.34 	probation officers and corrections agents.
67.1 	(d) The commissioner shall inform individuals subject to a background study that 
67.2 	criminal convictions for disqualifying crimes willshall be reported to the commissioner 
67.3 	by the corrections system.
67.4 	(e) A probation officer, corrections agent, or corrections agency is not civilly or 
67.5 	criminally liable for disclosing or failing to disclose the information required by this 
67.6 	subdivision.
67.7 	(f) Upon receipt of disqualifying information, the commissioner shall provide the 
67.8 	notice required under section 245C.17, as appropriate, to agencies on record as having 
67.9 	initiated a background study or making a request for documentation of the background 
67.10 	study status of the individual.
67.11 	(g) This subdivision does not apply to family child care programs for individuals 
67.12 	whose background study was completed in NETStudy 2.0.

67.13 	Sec. 55. Minnesota Statutes 2014, section 245C.08, subdivision 2, is amended to read:
67.14 		Subd. 2.Background studies conducted by a county agency for family child care.
 67.15 	(a) Prior to the implementation of NETStudy 2.0, for a background study studies conducted 
67.16 	by a county agency for family child care services, the commissioner shall review:
67.17 	(1) information from the county agency's record of substantiated maltreatment 
67.18 	of adults and the maltreatment of minors;
67.19 	(2) information from juvenile courts as required in subdivision 4 for:
67.20 	(i) individuals listed in section 245C.03, subdivision 1, paragraph (a), who are ages 
67.21 	13 through 23 living in the household where the licensed services will be provided; and
67.22 	(ii) any other individual listed under section 245C.03, subdivision 1, when there 
67.23 	is reasonable cause; and
67.24 	(3) information from the Bureau of Criminal Apprehension.
67.25 	(b) If the individual has resided in the county for less than five years, the study shall 
67.26 	include the records specified under paragraph (a) for the previous county or counties of 
67.27 	residence for the past five years.
67.28 	(c) Notwithstanding expungement by a court, the county agency may consider 
67.29 	information obtained under paragraph (a), clause (3), unless the commissioner received 
67.30 	notice of the petition for expungement and the court order for expungement is directed 
67.31 	specifically to the commissioner.

67.32 	Sec. 56. Minnesota Statutes 2014, section 245C.08, subdivision 4, is amended to read:
67.33 		Subd. 4.Juvenile court records. (a) For a background study conducted by the 
67.34 	Department of Human Services, the commissioner shall review records from the juvenile 
68.1 	courts for an individual studied under section 245C.03, subdivision 1, paragraph (a), when 
68.2 	the commissioner has reasonable cause.
68.3 	(b) For a background study conducted by a county agency for family child care prior 
68.4 	to the implementation of NETStudy 2.0, the commissioner shall review records from the 
68.5 	juvenile courts for individuals listed in section 245C.03, subdivision 1, who are ages 13 
68.6 	through 23 living in the household where the licensed services will be provided. The 
68.7 	commissioner shall also review records from juvenile courts for any other individual listed 
68.8 	under section 245C.03, subdivision 1, when the commissioner has reasonable cause.
68.9 	(c) The juvenile courts shall help with the study by giving the commissioner existing 
68.10 	juvenile court records relating to delinquency proceedings held on individuals described in 
68.11 	section 245C.03, subdivision 1, paragraph (a), when requested pursuant to this subdivision.
68.12 	(d) For purposes of this chapter, a finding that a delinquency petition is proven in 
68.13 	juvenile court shall be considered a conviction in state district court.
68.14 	(e) Juvenile courts shall provide orders of involuntary and voluntary termination of 
68.15 	parental rights under section 260C.301 to the commissioner upon request for purposes of 
68.16 	conducting a background study under this chapter.

68.17 	Sec. 57. Minnesota Statutes 2014, section 245C.11, subdivision 3, is amended to read:
68.18 		Subd. 3.Criminal history data. County agencies shall have access to the criminal 
68.19 	history data in the same manner as county licensing agencies under this chapter for 
68.20 	purposes of background studies completed prior to the implementation of NETStudy 2.0 
68.21 	by county agencies on legal nonlicensed child care providers to determine eligibility 
68.22 	for child care funds under chapter 119B.

68.23 	Sec. 58. Minnesota Statutes 2014, section 245C.17, subdivision 6, is amended to read:
68.24 		Subd. 6.Notice to county agency. For studies on individuals related to a license to 
68.25 	provide adult foster care and family adult day services and, effective October 1, 2017, 
68.26 	family child care and legal nonlicensed child care authorized under chapter 119B, the 
68.27 	commissioner shall also provide a notice of the background study results to the county 
68.28 	agency that initiated the background study.

68.29 	Sec. 59. Minnesota Statutes 2014, section 245C.23, subdivision 2, is amended to read:
68.30 		Subd. 2.Commissioner's notice of disqualification that is not set aside. (a) The 
68.31 	commissioner shall notify the license holder of the disqualification and order the license 
68.32 	holder to immediately remove the individual from any position allowing direct contact 
68.33 	with persons receiving services from the license holder if:
69.1 	(1) the individual studied does not submit a timely request for reconsideration 
69.2 	under section 245C.21;
69.3 	(2) the individual submits a timely request for reconsideration, but the commissioner 
69.4 	does not set aside the disqualification for that license holder under section 245C.22, unless 
69.5 	the individual has a right to request a hearing under section 245C.27, 245C.28, or 256.045;
69.6 	(3) an individual who has a right to request a hearing under sections 245C.27 and 
69.7 	256.045, or 245C.28 and chapter 14 for a disqualification that has not been set aside, does 
69.8 	not request a hearing within the specified time; or
69.9 	(4) an individual submitted a timely request for a hearing under sections 245C.27 
69.10 	and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the 
69.11 	disqualification under section 245A.08, subdivision 5, or 256.045.
69.12 	(b) If the commissioner does not set aside the disqualification under section 245C.22, 
69.13 	and the license holder was previously ordered under section 245C.17 to immediately 
69.14 	remove the disqualified individual from direct contact with persons receiving services or 
69.15 	to ensure that the individual is under continuous, direct supervision when providing direct 
69.16 	contact services, the order remains in effect pending the outcome of a hearing under 
69.17 	sections 245C.27 and 256.045, or 245C.28 and chapter 14.
69.18 	(c) If the commissioner does not set aside the disqualification under section 245C.22, 
69.19 	and the license holder was not previously ordered under section 245C.17 to immediately 
69.20 	remove the disqualified individual from direct contact with persons receiving services or 
69.21 	to ensure that the individual is under continuous direct supervision when providing direct 
69.22 	contact services, the commissioner shall order the individual to remain under continuous 
69.23 	direct supervision pending the outcome of a hearing under sections 245C.27 and 256.045, 
69.24 	or 245C.28 and chapter 14.
69.25 	(d) For background studies related to child foster care, the commissioner shall 
69.26 	also notify the county or private agency that initiated the study of the results of the 
69.27 	reconsideration.
69.28 	(e) For background studies related to family child care, adult foster care, and family 
69.29 	adult day services, the commissioner shall also notify the county that initiated the study of 
69.30 	the results of the reconsideration.

69.31 	Sec. 60. Minnesota Statutes 2014, section 256.98, subdivision 8, is amended to read:
69.32 		Subd. 8.Disqualification from program. (a) Any person found to be guilty of 
69.33 	wrongfully obtaining assistance by a federal or state court or by an administrative hearing 
69.34 	determination, or waiver thereof, through a disqualification consent agreement, or as part 
69.35 	of any approved diversion plan under section 401.065, or any court-ordered stay which 
70.1 	carries with it any probationary or other conditions, in the Minnesota family investment 
70.2 	program and any affiliated program to include the diversionary work program and the 
70.3 	work participation cash benefit program, the food stamp or food support program, the 
70.4 	general assistance program, the group residential housing program, or the Minnesota 
70.5 	supplemental aid program shall be disqualified from that program. In addition, any person 
70.6 	disqualified from the Minnesota family investment program shall also be disqualified from 
70.7 	the food stamp or food support program. The needs of that individual shall not be taken 
70.8 	into consideration in determining the grant level for that assistance unit:
70.9 	(1) for one year after the first offense;
70.10 	(2) for two years after the second offense; and
70.11 	(3) permanently after the third or subsequent offense.
70.12 	The period of program disqualification shall begin on the date stipulated on the 
70.13 	advance notice of disqualification without possibility of postponement for administrative 
70.14 	stay or administrative hearing and shall continue through completion unless and until the 
70.15 	findings upon which the sanctions were imposed are reversed by a court of competent 
70.16 	jurisdiction. The period for which sanctions are imposed is not subject to review. The 
70.17 	sanctions provided under this subdivision are in addition to, and not in substitution 
70.18 	for, any other sanctions that may be provided for by law for the offense involved. A 
70.19 	disqualification established through hearing or waiver shall result in the disqualification 
70.20 	period beginning immediately unless the person has become otherwise ineligible for 
70.21 	assistance. If the person is ineligible for assistance, the disqualification period begins 
70.22 	when the person again meets the eligibility criteria of the program from which they were 
70.23 	disqualified and makes application for that program.
70.24 	(b) A family receiving assistance through child care assistance programs 
70.25 	under chapter 119B with a family member who is found to be guilty of wrongfully 
70.26 	obtaining child care assistance by a federal court, state court, or an administrative 
70.27 	hearing determination or waiver, through a disqualification consent agreement, as part 
70.28 	of an approved diversion plan under section 401.065, or a court-ordered stay with 
70.29 	probationary or other conditions, is disqualified from child care assistance programs. The 
70.30 	disqualifications must be for periods of one year and two years for the first and second 
70.31 	offenses, respectively. Subsequent violations must result in permanent disqualification. 
70.32 	During the disqualification period, disqualification from any child care program must 
70.33 	extend to all child care programs and must be immediately applied.
70.34 	(c) A provider caring for children receiving assistance through child care assistance 
70.35 	programs under chapter 119B is disqualified from receiving payment for child care 
70.36 	services from the child care assistance program under chapter 119B when the provider is 
71.1 	found to have wrongfully obtained child care assistance by a federal court, state court, 
71.2 	or an administrative hearing determination or waiver under section 256.046, through a 
71.3 	disqualification consent agreement, as part of an approved diversion plan under section 
71.4 	401.065, or a court-ordered stay with probationary or other conditions. The disqualification 
71.5 	must be for a period of one year two years for the first offense and two years for the 
71.6 	second offense. Any subsequent violation must result in permanent disqualification. 
71.7 	The disqualification period must be imposed immediately after a determination is made 
71.8 	under this paragraph. During the disqualification period, the provider is disqualified from 
71.9 	receiving payment from any child care program under chapter 119B.
71.10 	(d) Any person found to be guilty of wrongfully obtaining general assistance 
71.11 	medical care, MinnesotaCare for adults without children, and upon federal approval, all 
71.12 	categories of medical assistance and remaining categories of MinnesotaCare, except 
71.13 	for children through age 18, by a federal or state court or by an administrative hearing 
71.14 	determination, or waiver thereof, through a disqualification consent agreement, or as part 
71.15 	of any approved diversion plan under section 401.065, or any court-ordered stay which 
71.16 	carries with it any probationary or other conditions, is disqualified from that program. The 
71.17 	period of disqualification is one year after the first offense, two years after the second 
71.18 	offense, and permanently after the third or subsequent offense. The period of program 
71.19 	disqualification shall begin on the date stipulated on the advance notice of disqualification 
71.20 	without possibility of postponement for administrative stay or administrative hearing 
71.21 	and shall continue through completion unless and until the findings upon which the 
71.22 	sanctions were imposed are reversed by a court of competent jurisdiction. The period for 
71.23 	which sanctions are imposed is not subject to review. The sanctions provided under this 
71.24 	subdivision are in addition to, and not in substitution for, any other sanctions that may be 
71.25 	provided for by law for the offense involved.

71.26 	EFFECTIVE DATE. This section is effective June 5, 2017.

71.27 	Sec. 61. Minnesota Statutes 2014, section 256D.051, is amended to read:
71.28 	256D.051 FOOD STAMP EMPLOYMENT AND TRAINING PROGRAM.
71.29 		Subdivision 1.Food stamp employment and training program. The 
71.30 	commissioner shall implement a food stamp employment and training program in order to 
71.31 	meet the food stamp employment and training participation requirements of the United 
71.32 	States Department of Agriculture. Unless exempt under subdivision 3a, each adult 
71.33 	recipient in the unit must participate in the food stamp employment and training program 
71.34 	each month that the person is eligible for food stamps. The person's participation in 
72.1 	food stamp employment and training services must begin no later than the first day of 
72.2 	the calendar month following the determination of eligibility for food stamps. With the 
72.3 	county agency's consent, and To the extent of available resources, the person a recipient
72.4 	may voluntarily continue volunteer to participate in food stamp employment and training 
72.5 	services for up to three additional consecutive months immediately following termination 
72.6 	of food stamp benefits in order to complete the provisions of the person's employability 
72.7 	development plan. A recipient who volunteers for employment and training services is 
72.8 	subject to work requirements found in Code of Federal Regulations, title 7, section 273.7.
72.9 		Subd. 1a.Notices and sanctions. (a) At the time the county agency notifies the 
72.10 	household that it is eligible for food stamps, the county agency must inform all mandatory 
72.11 	employment and training services participants as identified in subdivision 1 in the 
72.12 	household that they must comply with all food stamp employment and training program 
72.13 	requirements each month, including the requirement to attend an initial orientation to the 
72.14 	food stamp employment and training program and that food stamp eligibility will end 
72.15 	unless the participants comply with the requirements specified in the notice. adults of the 
72.16 	opportunity to volunteer for and participate in SNAP employment and training activities; 
72.17 	provide plain language material that explains the benefits of voluntary participation and 
72.18 	provide the name and address of the county's designated employment and training service 
72.19 	provider.
72.20 	(b) The county must inform a recipient who is an able-bodied adult without 
72.21 	dependents that their SNAP benefits are limited to three months in a 36-month period 
72.22 	from the first full month of application unless the recipient meets the work requirements 
72.23 	found in Code of Federal Regulations, title 7, section 273.7.
72.24 	(b) A participant who fails without good cause to comply with food stamp 
72.25 	employment and training program requirements of this section, including attendance at 
72.26 	orientation, will lose food stamp eligibility for the following periods:
72.27 	(1) for the first occurrence, for one month or until the person complies with the 
72.28 	requirements not previously complied with, whichever is longer;
72.29 	(2) for the second occurrence, for three months or until the person complies with the 
72.30 	requirements not previously complied with, whichever is longer; or
72.31 	(3) for the third and any subsequent occurrence, for six months or until the person 
72.32 	complies with the requirements not previously complied with, whichever is longer.
72.33 	If the participant is not the food stamp head of household, the person shall be 
72.34 	considered an ineligible household member for food stamp purposes. If the participant is 
72.35 	the food stamp head of household, the entire household is ineligible for food stamps as 
72.36 	provided in Code of Federal Regulations, title 7, section 273.7(g). "Good cause" means 
73.1 	circumstances beyond the control of the participant, such as illness or injury, illness or 
73.2 	injury of another household member requiring the participant's presence, a household 
73.3 	emergency, or the inability to obtain child care for children between the ages of six and 
73.4 	12 or to obtain transportation needed in order for the participant to meet the food stamp 
73.5 	employment and training program participation requirements.
73.6 	(c) The county agency shall mail or hand deliver a notice to the participant not later 
73.7 	than five days after determining that the participant has failed without good cause to 
73.8 	comply with food stamp employment and training program requirements which specifies 
73.9 	the requirements that were not complied with, the factual basis for the determination of 
73.10 	noncompliance, and the right to reinstate eligibility upon a showing of good cause for 
73.11 	failure to meet the requirements. The notice must ask the reason for the noncompliance 
73.12 	and identify the participant's appeal rights. The notice must request that the participant 
73.13 	inform the county agency if the participant believes that good cause existed for the failure 
73.14 	to comply and must state that the county agency intends to terminate eligibility for food 
73.15 	stamp benefits due to failure to comply with food stamp employment and training program 
73.16 	requirements.
73.17 	(d) If the county agency determines that the participant did not comply during the 
73.18 	month with all food stamp employment and training program requirements that were in 
73.19 	effect, and if the county agency determines that good cause was not present, the county 
73.20 	must provide a ten-day notice of termination of food stamp benefits. The amount of 
73.21 	food stamps that are withheld from the household and determination of the impact of 
73.22 	the sanction on other household members is governed by Code of Federal Regulations, 
73.23 	title 7, section 273.7.
73.24 	(e) The participant may appeal the termination of food stamp benefits under the 
73.25 	provisions of section 256.045.
73.26 		Subd. 2.County agency duties. (a) The county agency shall provide to food stamp 
73.27 	recipients a food stamp employment and training program. The program must include:
73.28 	(1) orientation to the food stamp employment and training program;
73.29 	(2) an individualized employability assessment and an individualized employability 
73.30 	development plan that includes assessment of literacy, ability to communicate in the 
73.31 	English language, educational and employment history, and that estimates the length of 
73.32 	time it will take the participant to obtain employment. The employability assessment and 
73.33 	development plan must be completed in consultation with the participant, must assess the 
73.34 	participant's assets, barriers, and strengths, and must identify steps necessary to overcome 
73.35 	barriers to employment. A copy of the employability development plan must be provided 
73.36 	to the registrant;
74.1 	(3) referral to available accredited remedial or skills training or career pathways 
74.2 	programs designed to address participant's barriers to employment;
74.3 	(4) referral to available programs that provide subsidized or unsubsidized 
74.4 	employment as necessary;
74.5 	(5) a job search program, including job seeking skills training; and
74.6 	(6) other activities, to the extent of available resources designed by the county 
74.7 	agency to prepare the participant for permanent employment.
74.8 	In order to allow time for job search, the county agency may not require an individual 
74.9 	to participate in the food stamp employment and training program for more than 32 hours 
74.10 	a week. The county agency shall require an individual to spend at least eight hours a week 
74.11 	in job search or other food stamp employment and training program activities.
74.12 	(b) The county agency shall prepare an annual plan for the operation of its food 
74.13 	stamp employment and training program. The plan must be submitted to and approved by 
74.14 	the commissioner of employment and economic development. The plan must include:
74.15 	(1) a description of the services to be offered by the county agency;
74.16 	(2) a plan to coordinate the activities of all public and private nonprofit entities 
74.17 	providing employment-related services in order to avoid duplication of effort and to 
74.18 	provide a wide range of allowable activities and services more efficiently;
74.19 	(3) a description of the factors that will be taken into account when determining a 
74.20 	client's employability development plan; and
74.21 	(4) provisions to ensure that the county agency's employment and training service 
74.22 	provider provides providers provide each recipient with an orientation, employability 
74.23 	assessment, and employability development plan as specified in paragraph (a), clauses (1) 
74.24 	and (2), within 30 days of the recipient's eligibility for assistance request to participate in 
74.25 	employment and training.
74.26 		Subd. 2a.Duties of commissioner. In addition to any other duties imposed by law, 
74.27 	the commissioner shall:
74.28 	(1) based on this section and section 256D.052 and Code of Federal Regulations, 
74.29 	title 7, section 273.7, supervise the administration of food stamp employment and training 
74.30 	services to county agencies;
74.31 	(2) disburse money appropriated for food stamp employment and training services 
74.32 	to county agencies based upon the county's costs as specified in section 256D.051, 
74.33 	subdivision 6c;
74.34 	(3) accept and supervise the disbursement of any funds that may be provided by the 
74.35 	federal government or from other sources for use in this state for food stamp employment 
74.36 	and training services;
75.1 	(4) cooperate with other agencies including any agency of the United States or of 
75.2 	another state in all matters concerning the powers and duties of the commissioner under 
75.3 	this section and section 256D.052; and
75.4 	(5) in cooperation with the commissioner of employment and economic 
75.5 	development, ensure that each component of an employment and training program carried 
75.6 	out under this section is delivered through a statewide workforce development system, 
75.7 	unless the component is not available locally through such a system.
75.8 		Subd. 3.Participant duties. In order to receive food stamp assistance employment 
75.9 	and training services, a registrant participant who volunteers shall: (1) cooperate with 
75.10 	the county agency in all aspects of the food stamp employment and training program; 
75.11 	and (2) accept any suitable employment, including employment offered through the Job 
75.12 	Training Partnership Act, and other employment and training options; and (3) participate 
75.13 	in food stamp employment and training activities assigned by the county agency. The 
75.14 	county agency may terminate employment and training assistance to a registrant voluntary 
75.15 	participant who fails to cooperate in the food stamp employment and training program, as 
75.16 	provided in subdivision 1a unless good cause is provided.
75.17 		Subd. 3a.Requirement to register work. (a) To the extent required under Code 
75.18 	of Federal Regulations, title 7, section 273.7(a), each applicant for and recipient of 
75.19 	food stamps is required to register for work as a condition of eligibility for food stamp 
75.20 	benefits. Applicants and recipients are registered by signing an application or annual 
75.21 	reapplication for food stamps, and must be informed that they are registering for work 
75.22 	by signing the form.
75.23 	(b) The commissioner shall determine, within federal requirements, persons required 
75.24 	to participate in the food stamp employment and training (FSET) program.
75.25 	(c) The following food stamp recipients are exempt from mandatory participation in 
75.26 	food stamp employment and training services:
75.27 	(1) recipients of benefits under the Minnesota family investment program, Minnesota 
75.28 	supplemental aid program, or the general assistance program;
75.29 	(2) a child;
75.30 	(3) a recipient over age 55;
75.31 	(4) a recipient who has a mental or physical illness, injury, or incapacity which is 
75.32 	expected to continue for at least 30 days and which impairs the recipient's ability to obtain 
75.33 	or retain employment as evidenced by professional certification or the receipt of temporary 
75.34 	or permanent disability benefits issued by a private or government source;
75.35 	(5) a parent or other household member responsible for the care of either a 
75.36 	dependent child in the household who is under age six or a person in the household who is 
76.1 	professionally certified as having a physical or mental illness, injury, or incapacity. Only 
76.2 	one parent or other household member may claim exemption under this provision;
76.3 	(6) a recipient receiving unemployment insurance or who has applied for 
76.4 	unemployment insurance and has been required to register for work with the Department 
76.5 	of Employment and Economic Development as part of the unemployment insurance 
76.6 	application process;
76.7 	(7) a recipient participating each week in a drug addiction or alcohol abuse treatment 
76.8 	and rehabilitation program, provided the operators of the treatment and rehabilitation 
76.9 	program, in consultation with the county agency, recommend that the recipient not 
76.10 	participate in the food stamp employment and training program;
76.11 	(8) a recipient employed or self-employed for 30 or more hours per week at 
76.12 	employment paying at least minimum wage, or who earns wages from employment equal 
76.13 	to or exceeding 30 hours multiplied by the federal minimum wage; or
76.14 	(9) a student enrolled at least half time in any school, training program, or institution 
76.15 	of higher education. When determining if a student meets this criteria, the school's, 
76.16 	program's or institution's criteria for being enrolled half time shall be used.
76.17 		Subd. 3b.Orientation. The county agency or its employment and training service 
76.18 	provider providers must provide an orientation to food stamp employment and training 
76.19 	services to each nonexempt food stamp recipient within 30 days of the date that food 
76.20 	stamp eligibility is determined recipient within 30 days of the date which they agree to 
76.21 	volunteer. The orientation must inform the participant of the requirement to participate
76.22 	benefits of participating in services, the date, time, and address to report to for services, 
76.23 	the name and telephone number of the food stamp employment and training service 
76.24 	provider, the consequences for failure without good cause to comply, the services and 
76.25 	support services available through food stamp employment and training services and other 
76.26 	providers of similar services, and must encourage the participant to view the food stamp 
76.27 	program as a temporary means of supplementing the family's food needs until the family 
76.28 	achieves self-sufficiency through employment. The orientation may be provided through 
76.29 	audio-visual methods, but the participant must have the opportunity for face-to-face 
76.30 	interaction with county agency staff.
76.31 		Subd. 6b.Federal reimbursement. Federal financial participation from the United 
76.32 	States Department of Agriculture for food stamp employment and training expenditures 
76.33 	that are eligible for reimbursement through the food stamp employment and training 
76.34 	program are dedicated funds and are annually appropriated to the commissioner of human 
76.35 	services for the operation of the food stamp employment and training program. Federal 
76.36 	financial participation for the nonstate portion of food stamp employment and training 
77.1 	costs must be paid to the county agency or service provider that incurred the costs at 
77.2 	a rate to be determined by the Departments of Human Services and Employment and 
77.3 	Economic Development.
77.4 		Subd. 6c.Program funding. Within the limits of available resources, the 
77.5 	commissioner shall reimburse the actual costs of county agencies and their employment 
77.6 	and training service providers for the provision of food stamp employment and training 
77.7 	services, including participant support services, direct program services, and program 
77.8 	administrative activities. The cost of services for each county's food stamp employment and 
77.9 	training program shall not exceed the annual allocated amount. No more than 15 percent of 
77.10 	program funds may be used for administrative activities. The county agency may expend 
77.11 	county funds in excess of the limits of this subdivision without state reimbursement.
77.12 	Program funds shall be allocated based on the county's average number of food 
77.13 	stamp cases as compared to the statewide total number of such cases. The average number 
77.14 	of cases shall be based on counts of cases as of March 31, June 30, September 30, and 
77.15 	December 31 of the previous calendar year. The commissioner may reallocate unexpended 
77.16 	money appropriated under this section to those county agencies that demonstrate a need 
77.17 	for additional funds.
77.18 		Subd. 7.Registrant status. A registrant under this section is not an employee for 
77.19 	the purposes of workers' compensation, unemployment benefits, retirement, or civil service 
77.20 	laws, and shall not perform work ordinarily performed by a regular public employee.
77.21 		Subd. 8.Voluntary quit. A person who is required to participate in food stamp 
77.22 	employment and training services is not eligible for food stamps if, without good cause, 
77.23 	the person refuses a legitimate offer of, or quits, suitable employment within 60 30 days 
77.24 	before the date of application. A person who is required to participate in food stamp 
77.25 	employment and training services and, without good cause, voluntarily quits suitable 
77.26 	employment or refuses a legitimate offer of suitable employment while receiving food 
77.27 	stamps shall be terminated from the food stamp program as specified in subdivision 1a.
77.28 		Subd. 9.Subcontractors. A county agency may, at its option, subcontract any or all 
77.29 	of the duties under this section to a public or private entity approved by the commissioner 
77.30 	of employment and economic development.
77.31 		Subd. 18.Work experience Workfare placements. (a) To the extent of available 
77.32 	resources, each county agency must may establish and operate a work experience workfare
77.33 	component in the food stamp employment and training program for recipients who are 
77.34 	subject to a federal limit of three months of food stamp eligibility in any 36-month period. 
77.35 	The purpose of the work experience workfare component is to enhance the participant's 
77.36 	employability, self-sufficiency, and to provide meaningful, productive work activities.
78.1 	(b) The commissioner shall assist counties in the design and implementation of these 
78.2 	components. The commissioner must ensure that job placements under a work experience
78.3 	workfare component comply with section 256J.72. Written or oral concurrence with job 
78.4 	duties of persons placed under the community work experience workfare program shall be 
78.5 	obtained from the appropriate exclusive bargaining representative.
78.6 	(c) Worksites developed under this section are limited to projects that serve a useful 
78.7 	public service such as health, social service, environmental protection, education, urban 
78.8 	and rural development and redevelopment, welfare, recreation, public facilities, public 
78.9 	safety, community service, services to aged or disabled citizens, and child care. To the 
78.10 	extent possible, the prior training, skills, and experience of a recipient must be used in 
78.11 	making appropriate work experience workfare assignments.
78.12 	(d) Structured, supervised volunteer uncompensated work with an agency or 
78.13 	organization that is monitored by the county service provider may, with the approval of 
78.14 	the county agency, be used as a work experience workfare placement.
78.15 	(e) As a condition of placing a person receiving food stamps in a program under this 
78.16 	subdivision, the county agency shall first provide the recipient the opportunity:
78.17 	(1) for placement in suitable subsidized or unsubsidized employment through 
78.18 	participation in job search under section 256D.051; or
78.19 	(2) for placement in suitable employment through participation in on-the-job training
78.20 	a paid work experience, if such employment is available.; or
78.21 	(3) for placement in an educational program designed to increase job skills and 
78.22 	employability.
78.23 	(f) The county agency shall limit the maximum monthly number of hours that any 
78.24 	participant may work in a work experience workfare placement to a number equal to the 
78.25 	amount of the family's monthly food stamp allotment divided by the greater of the federal 
78.26 	minimum wage or the applicable state minimum wage.
78.27 	After a participant has been assigned to a position for nine six months, the participant 
78.28 	may not continue in that assignment unless the maximum number of hours a participant 
78.29 	works is no greater than the amount of the food stamp benefit divided by the rate of pay 
78.30 	for individuals employed in the same or similar occupations by the same employer at 
78.31 	the same site.
78.32 	(g) The participant's employability development plan must include the length of time 
78.33 	needed in the work experience workfare program, the need to continue job seeking activities 
78.34 	while participating in work experience workfare, and the participant's employment goals.
78.35 	(h) After each six months of a recipient's participation in a work experience workfare
78.36 	job placement, and at the conclusion of each work experience workfare assignment under 
79.1 	this section, the county agency shall reassess and revise, as appropriate, the participant's 
79.2 	employability development plan.
79.3 	(i) A participant has good cause for failure to cooperate with a work experience
79.4 	workfare job placement if, in the judgment of the employment and training service 
79.5 	provider, the reason for failure is reasonable and justified. Good cause for purposes of this 
79.6 	section is defined in subdivision 1a, paragraph (b).
79.7 	(j) A recipient who has failed without good cause to participate in or comply with the 
79.8 	work experience workfare job placement shall be terminated from participation in work 
79.9 	experience workfare job activities. If the recipient is not exempt from mandatory food 
79.10 	stamp employment and training program participation under subdivision 3a, the recipient 
79.11 	will be assigned to other mandatory program activities. If the recipient is exempt from 
79.12 	mandatory participation but is participating as a volunteer, the person shall be terminated 
79.13 	from the food stamp employment and training program.

79.14 	Sec. 62. Minnesota Statutes 2014, section 256J.24, subdivision 5, is amended to read:
79.15 		Subd. 5.MFIP transitional standard. (a) The MFIP transitional standard is based 
79.16 	on the number of persons in the assistance unit eligible for both food and cash assistance. 
79.17 	The amount of the transitional standard is published annually by the Department of 
79.18 	Human Services.
79.19 	(b) The commissioner of human services shall increase the cash assistance portion 
79.20 	of the transitional standard under paragraph (a) by $100.

79.21 	EFFECTIVE DATE. This section is effective October 1, 2016.

79.22 	Sec. 63. Minnesota Statutes 2015 Supplement, section 256M.41, subdivision 3, 
79.23 	is amended to read:
79.24 		Subd. 3.Payments based on performance. (a) The commissioner shall make 
79.25 	payments under this section to each county board on a calendar year basis in an amount 
79.26 	determined under paragraph (b).
79.27 	(b) Calendar year allocations under subdivision 1 shall be paid to counties in the 
79.28 	following manner:
79.29 	(1) 80 percent of the allocation as determined in subdivision 1 must be paid to 
79.30 	counties on or before July 10 of each year;
79.31 	(2) ten percent of the allocation shall be withheld until the commissioner determines 
79.32 	if the county has met the performance outcome threshold of 90 percent based on 
79.33 	face-to-face contact with alleged child victims. In order to receive the performance 
79.34 	allocation, the county child protection workers must have a timely face-to-face contact 
80.1 	with at least 90 percent of all alleged child victims of screened-in maltreatment reports. 
80.2 	The standard requires that each initial face-to-face contact occur consistent with timelines 
80.3 	defined in section 626.556, subdivision 10, paragraph (i). The commissioner shall make 
80.4 	threshold determinations in January February of each year and payments to counties 
80.5 	meeting the performance outcome threshold shall occur in February March of each year. 
80.6 	Any withheld funds from this appropriation for counties that do not meet this requirement 
80.7 	shall be reallocated by the commissioner to those counties meeting the requirement; and
80.8 	(3) ten percent of the allocation shall be withheld until the commissioner determines 
80.9 	that the county has met the performance outcome threshold of 90 percent based on 
80.10 	face-to-face visits by the case manager. In order to receive the performance allocation, the 
80.11 	total number of visits made by caseworkers on a monthly basis to children in foster care 
80.12 	and children receiving child protection services while residing in their home must be at 
80.13 	least 90 percent of the total number of such visits that would occur if every child were 
80.14 	visited once per month. The commissioner shall make such determinations in January
80.15 	February of each year and payments to counties meeting the performance outcome 
80.16 	threshold shall occur in February March of each year. Any withheld funds from this 
80.17 	appropriation for counties that do not meet this requirement shall be reallocated by the 
80.18 	commissioner to those counties meeting the requirement. For 2015, the commissioner 
80.19 	shall only apply the standard for monthly foster care visits.
80.20 	(c) The commissioner shall work with stakeholders and the Human Services 
80.21 	Performance Council under section 402A.16 to develop recommendations for specific 
80.22 	outcome measures that counties should meet in order to receive funds withheld under 
80.23 	paragraph (b), and include in those recommendations a determination as to whether 
80.24 	the performance measures under paragraph (b) should be modified or phased out. The 
80.25 	commissioner shall report the recommendations to the legislative committees having 
80.26 	jurisdiction over child protection issues by January 1, 2018.

80.27 	EFFECTIVE DATE. This section is effective July 1, 2016, for allocations made in 
80.28 	state fiscal year 2017 using calendar year 2016 data.

80.29 	Sec. 64. Minnesota Statutes 2015 Supplement, section 256P.05, subdivision 1, is 
80.30 	amended to read:
80.31 		Subdivision 1.Exempted programs. Participants who qualify for child care 
80.32 	assistance programs under chapter 119B, Minnesota supplemental aid under chapter 
80.33 	256D, and group residential housing under chapter 256I on the basis of eligibility for 
80.34 	Supplemental Security Income are exempt from this section. A participant who qualifies 
80.35 	for CCAP under chapter 119B is subject to subdivision 2.

81.1 	EFFECTIVE DATE. This section is effective January 2, 2017.

81.2 	Sec. 65. Minnesota Statutes 2015 Supplement, section 256P.06, subdivision 3, is 
81.3 	amended to read:
81.4 		Subd. 3.Income inclusions. The following must be included in determining the 
81.5 	income of an assistance unit:
81.6 	(1) earned income; and
81.7 	(2) unearned income, which includes:
81.8 	(i) interest and dividends from investments and savings;
81.9 	(ii) capital gains as defined by the Internal Revenue Service from any sale of real 
81.10 	property;
81.11 	(iii) proceeds from rent and contract for deed payments in excess of the principal 
81.12 	and interest portion owed on property;
81.13 	(iv) income from trusts, excluding special needs and supplemental needs trusts;
81.14 	(v) interest income from loans made by the participant or household;
81.15 	(vi) cash prizes and winnings;
81.16 	(vii) unemployment insurance income;
81.17 	(viii) retirement, survivors, and disability insurance payments;
81.18 	(ix) nonrecurring income over $60 per quarter unless earmarked and used for the 
81.19 	purpose for which it is intended. Income and use of this income is subject to verification 
81.20 	requirements under section 256P.04;
81.21 	(x) retirement benefits;
81.22 	(xi) cash assistance benefits, as defined by each program in chapters 119B, 256D, 
81.23 	256I, and 256J;
81.24 	(xii) tribal per capita payments unless excluded by federal and state law;
81.25 	(xiii) income and payments from service and rehabilitation programs that meet 
81.26 	or exceed the state's minimum wage rate;
81.27 	(xiv) income from members of the United States armed forces unless excluded from 
81.28 	income taxes according to federal or state law;
81.29 	(xv) all child support payments for programs under chapters 119B, 256D, and 256I;
81.30 	(xvi) the amount of current child support received that exceeds $100 for assistance 
81.31 	units with one child and $200 for assistance units with two or more children for programs 
81.32 	under chapter 256J; and
81.33 	(xvii) spousal support.

82.1 	Sec. 66. Minnesota Statutes 2015 Supplement, section 256P.07, subdivision 3, is 
82.2 	amended to read:
82.3 		Subd. 3.Changes that must be reported. An assistance unit must report the 
82.4 	changes or anticipated changes specified in clauses (1) to (12) within ten days of the date 
82.5 	they occur, at the time of recertification of eligibility under section 256P.04, subdivisions 
82.6 	8 and 9, or within eight calendar days of a reporting period, whichever occurs first. An 
82.7 	assistance unit must report other changes at the time of recertification of eligibility under 
82.8 	section 256P.04, subdivisions 8 and 9, or at the end of a reporting period, as applicable. 
82.9 	When an agency could have reduced or terminated assistance for one or more payment 
82.10 	months if a delay in reporting a change specified under clauses (1) to (12) had not occurred, 
82.11 	the agency must determine whether a timely notice could have been issued on the day 
82.12 	that the change occurred. When a timely notice could have been issued, each month's 
82.13 	overpayment subsequent to that notice must be considered a client error overpayment 
82.14 	under section 119B.11, subdivision 2a, or 256P.08. Changes in circumstances that must 
82.15 	be reported within ten days must also be reported for the reporting period in which those 
82.16 	changes occurred. Within ten days, an assistance unit must report:
82.17 	(1) a change in earned income of $100 per month or greater, with the exception 
82.18 	of programs under chapter 119B;
82.19 	(2) a change in unearned income of $50 per month or greater, with the exception 
82.20 	of programs under chapter 119B;
82.21 	(3) a change in employment status and hours, with the exception of programs under 
82.22 	chapter 119B;
82.23 	(4) a change in address or residence;
82.24 	(5) a change in household composition, with the exception of programs under 
82.25 	chapter 256I;
82.26 	(6) a receipt of a lump-sum payment, with the exception of programs under chapter 
82.27 	119B;
82.28 	(7) an increase in assets if over $9,000, with the exception of programs under 
82.29 	chapter 119B;
82.30 	(8) a change in citizenship or immigration status;
82.31 	(9) a change in family status, with the exception of programs under chapter 256I;
82.32 	(10) a change in disability status of a unit member, with the exception of programs 
82.33 	under chapter 119B;
82.34 	(11) a new rent subsidy or a change in rent subsidy, with the exception of programs 
82.35 	under chapter 119B; and
83.1 	(12) a sale, purchase, or transfer of real property, with the exception of programs 
83.2 	under chapter 119B.

83.3 	EFFECTIVE DATE. Clauses (1) to (3), (6), (11), and (12) are effective May 22, 
83.4 	2017.

83.5 	Sec. 67. Minnesota Statutes 2015 Supplement, section 256P.07, subdivision 6, is 
83.6 	amended to read:
83.7 		Subd. 6.Child care assistance programs-specific reporting. (a) In addition to 
83.8 	subdivision 3, an assistance unit under chapter 119B, within ten days of the change, must 
83.9 	report:
83.10 	(1) a change in a parentally responsible individual's visitation schedule or custody 
83.11 	arrangement schedule for any child receiving child care assistance program CCAP 
83.12 	benefits; and
83.13 	(2) a change in permanent end in a parentally responsible individual's authorized 
83.14 	activity status.; and
83.15 	(3) when the family's annual included income exceeds 85 percent of the state median 
83.16 	income, adjusted for family size.
83.17 	(b) An assistance unit subject to section 119B.10, subdivisions 1, paragraph (g), and 
83.18 	3, paragraph (f), must report changes in authorized activity status.
83.19 	(c) An assistance unit must notify the county when the assistance unit wants to 
83.20 	reduce the number of authorized hours for a child.

83.21 	EFFECTIVE DATE. Paragraph (a), clause (1), is effective August 1, 2016. 
83.22 	Paragraph (a), clauses (2) and (3), and paragraphs (b) and (c) are effective May 22, 2017.

83.23 	Sec. 68. [260C.125] CASE TRANSFER PROCESS.
83.24 		Subdivision 1.Purpose. This section pertains to the transfer of responsibility for 
83.25 	the placement and care of an Indian child in out-of-home placement from the responsible 
83.26 	social services agency to a tribal title IV-E agency or an Indian tribe in and outside of 
83.27 	Minnesota with a title IV-E agreement.
83.28 		Subd. 2.Establishment of transfer procedures. The responsible social services 
83.29 	agency shall establish and maintain procedures, in consultation with Indian tribes, for the 
83.30 	transfer of responsibility for placement and care of a child to a tribal agency. Transfer of a 
83.31 	child's case under this section shall not affect the child's title IV-E and Medicaid eligibility. 
84.1 		Subd. 3.Title IV-E eligibility. If a child's title IV-E eligibility has not been 
84.2 	determined by the responsible social services agency by the time of transfer, it shall be 
84.3 	established at the time of the transfer by the responsible social services agency.
84.4 		Subd. 4.Documentation and information. Essential documents and information 
84.5 	shall be transferred to a tribal agency, including but not limited to:
84.6 	(1) district court judicial determinations to the effect that continuation in the home 
84.7 	from which the child was removed would be contrary to the welfare of the child and that 
84.8 	reasonable efforts were made to ensure placement prevention and family reunification 
84.9 	pursuant to section 260.012;
84.10 	(2) documentation related to the child's permanency proceeding under sections 
84.11 	260C.503 to 260C.521;
84.12 	(3) documentation from the responsible social services agency related to the child's 
84.13 	title IV-E eligibility;
84.14 	(4) documentation regarding the child's eligibility or potential eligibility for other 
84.15 	federal benefits;
84.16 	(5) the child's case plan, developed pursuant to sections 475(1) and 475A of the 
84.17 	Social Security Act, including health and education records of the child pursuant to 
84.18 	section 475(1)(c) of the Social Security Act; and section 260C.212, subdivision 1, and 
84.19 	information; and
84.20 	(6) documentation of the child's placement setting, including a copy of the most 
84.21 	recent provider's license.

84.22 	Sec. 69. Minnesota Statutes 2015 Supplement, section 260C.203, is amended to read:
84.23 	260C.203 ADMINISTRATIVE OR COURT REVIEW OF PLACEMENTS.
84.24 	(a) Unless the court is conducting the reviews required under section 260C.202, 
84.25 	there shall be an administrative review of the out-of-home placement plan of each child 
84.26 	placed in foster care no later than 180 days after the initial placement of the child in foster 
84.27 	care and at least every six months thereafter if the child is not returned to the home of the 
84.28 	parent or parents within that time. The out-of-home placement plan must be monitored and 
84.29 	updated at each administrative review. The administrative review shall be conducted by 
84.30 	the responsible social services agency using a panel of appropriate persons at least one of 
84.31 	whom is not responsible for the case management of, or the delivery of services to, either 
84.32 	the child or the parents who are the subject of the review. The administrative review shall 
84.33 	be open to participation by the parent or guardian of the child and the child, as appropriate.
84.34 	(b) As an alternative to the administrative review required in paragraph (a), the court 
84.35 	may, as part of any hearing required under the Minnesota Rules of Juvenile Protection 
85.1 	Procedure, conduct a hearing to monitor and update the out-of-home placement plan 
85.2 	pursuant to the procedure and standard in section 260C.201, subdivision 6, paragraph 
85.3 	(d). The party requesting review of the out-of-home placement plan shall give parties to 
85.4 	the proceeding notice of the request to review and update the out-of-home placement 
85.5 	plan. A court review conducted pursuant to section 260C.141, subdivision 2; 260C.193; 
85.6 	260C.201, subdivision 1; 260C.202; 260C.204; 260C.317; or 260D.06 shall satisfy the 
85.7 	requirement for the review so long as the other requirements of this section are met.
85.8 	(c) As appropriate to the stage of the proceedings and relevant court orders, the 
85.9 	responsible social services agency or the court shall review:
85.10 	(1) the safety, permanency needs, and well-being of the child;
85.11 	(2) the continuing necessity for and appropriateness of the placement;
85.12 	(3) the extent of compliance with the out-of-home placement plan;
85.13 	(4) the extent of progress that has been made toward alleviating or mitigating the 
85.14 	causes necessitating placement in foster care;
85.15 	(5) the projected date by which the child may be returned to and safely maintained in 
85.16 	the home or placed permanently away from the care of the parent or parents or guardian; and
85.17 	(6) the appropriateness of the services provided to the child.
85.18 	(d) When a child is age 14 or older,:
85.19 	(1) in addition to any administrative review conducted by the responsible social 
85.20 	services agency, at the in-court review required under section 260C.317, subdivision 
85.21 	3, clause (3), or 260C.515, subdivision 5 or 6, the court shall review the independent 
85.22 	living plan required under section 260C.212, subdivision 1, paragraph (c), clause (12), 
85.23 	and the provision of services to the child related to the well-being of the child as the 
85.24 	child prepares to leave foster care. The review shall include the actual plans related to 
85.25 	each item in the plan necessary to the child's future safety and well-being when the child 
85.26 	is no longer in foster care.; and
85.27 	(e) At the court review required under paragraph (d) for a child age 14 or older, 
85.28 	the following procedures apply:
85.29 	(1) six months before the child is expected to be discharged from foster care, the 
85.30 	responsible social services agency shall give the written notice required under section 
85.31 	260C.451, subdivision 1, regarding the right to continued access to services for certain 
85.32 	children in foster care past age 18 and of the right to appeal a denial of social services 
85.33 	under section 256.045. The agency shall file a copy of the notice, including the right to 
85.34 	appeal a denial of social services, with the court. If the agency does not file the notice by 
85.35 	the time the child is age 17-1/2, the court shall require the agency to give it;
86.1 	(2) consistent with the requirements of the independent living plan, the court shall 
86.2 	review progress toward or accomplishment of the following goals:
86.3 	(i) the child has obtained a high school diploma or its equivalent;
86.4 	(ii) the child has completed a driver's education course or has demonstrated the 
86.5 	ability to use public transportation in the child's community;
86.6 	(iii) the child is employed or enrolled in postsecondary education;
86.7 	(iv) the child has applied for and obtained postsecondary education financial aid for 
86.8 	which the child is eligible;
86.9 	(v) the child has health care coverage and health care providers to meet the child's 
86.10 	physical and mental health needs;
86.11 	(vi) the child has applied for and obtained disability income assistance for which 
86.12 	the child is eligible;
86.13 	(vii) the child has obtained affordable housing with necessary supports, which does 
86.14 	not include a homeless shelter;
86.15 	(viii) the child has saved sufficient funds to pay for the first month's rent and a 
86.16 	damage deposit;
86.17 	(ix) the child has an alternative affordable housing plan, which does not include a 
86.18 	homeless shelter, if the original housing plan is unworkable;
86.19 	(x) the child, if male, has registered for the Selective Service; and
86.20 	(xi) the child has a permanent connection to a caring adult; and.
86.21 	(3) the court shall ensure that the responsible agency in conjunction with the 
86.22 	placement provider assists the child in obtaining the following documents prior to the 
86.23 	child's leaving foster care: a Social Security card; the child's birth certificate; a state 
86.24 	identification card or driver's license, tribal enrollment identification card, green card, or 
86.25 	school visa; the child's school, medical, and dental records; a contact list of the child's 
86.26 	medical, dental, and mental health providers; and contact information for the child's 
86.27 	siblings, if the siblings are in foster care.
86.28 	(f) For a child who will be discharged from foster care at age 18 or older, the 
86.29 	responsible social services agency is required to develop a personalized transition plan as 
86.30 	directed by the youth. The transition plan must be developed during the 90-day period 
86.31 	immediately prior to the expected date of discharge. The transition plan must be as 
86.32 	detailed as the child may elect and include specific options on housing, health insurance, 
86.33 	education, local opportunities for mentors and continuing support services, and work force 
86.34 	supports and employment services. The agency shall ensure that the youth receives, at 
86.35 	no cost to the youth, a copy of the youth's consumer credit report as defined in section 
86.36 	13C.001 and assistance in interpreting and resolving any inaccuracies in the report. The 
87.1 	plan must include information on the importance of designating another individual to 
87.2 	make health care treatment decisions on behalf of the child if the child becomes unable 
87.3 	to participate in these decisions and the child does not have, or does not want, a relative 
87.4 	who would otherwise be authorized to make these decisions. The plan must provide the 
87.5 	child with the option to execute a health care directive as provided under chapter 145C. 
87.6 	The agency shall also provide the youth with appropriate contact information if the youth 
87.7 	needs more information or needs help dealing with a crisis situation through age 21.

87.8 	Sec. 70. Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 1, 
87.9 	is amended to read:
87.10 		Subdivision 1.Out-of-home placement; plan. (a) An out-of-home placement plan 
87.11 	shall be prepared within 30 days after any child is placed in foster care by court order or a 
87.12 	voluntary placement agreement between the responsible social services agency and the 
87.13 	child's parent pursuant to section 260C.227 or chapter 260D.
87.14 	(b) An out-of-home placement plan means a written document which is prepared 
87.15 	by the responsible social services agency jointly with the parent or parents or guardian 
87.16 	of the child and in consultation with the child's guardian ad litem, the child's tribe, if the 
87.17 	child is an Indian child, the child's foster parent or representative of the foster care facility, 
87.18 	and, where appropriate, the child. When a child is age 14 or older, the child may include 
87.19 	two other individuals on the team preparing the child's out-of-home placement plan. The 
87.20 	child may select one member of the case planning team to be designated as the child's 
87.21 	adviser and to advocate with respect to the application of the reasonable and prudent 
87.22 	parenting standards. The responsible social services agency may reject an individual 
87.23 	selected by the child if the agency has good cause to believe that the individual would 
87.24 	not act in the best interest of the child. For a child in voluntary foster care for treatment 
87.25 	under chapter 260D, preparation of the out-of-home placement plan shall additionally 
87.26 	include the child's mental health treatment provider. For a child 18 years of age or older, 
87.27 	the responsible social services agency shall involve the child and the child's parents as 
87.28 	appropriate. As appropriate, the plan shall be:
87.29 	(1) submitted to the court for approval under section 260C.178, subdivision 7;
87.30 	(2) ordered by the court, either as presented or modified after hearing, under section 
87.31 	260C.178, subdivision 7, or 260C.201, subdivision 6; and
87.32 	(3) signed by the parent or parents or guardian of the child, the child's guardian ad 
87.33 	litem, a representative of the child's tribe, the responsible social services agency, and, if 
87.34 	possible, the child.
88.1 	(c) The out-of-home placement plan shall be explained to all persons involved in its 
88.2 	implementation, including the child who has signed the plan, and shall set forth:
88.3 	(1) a description of the foster care home or facility selected, including how the 
88.4 	out-of-home placement plan is designed to achieve a safe placement for the child in the 
88.5 	least restrictive, most family-like, setting available which is in close proximity to the home 
88.6 	of the parent or parents or guardian of the child when the case plan goal is reunification, 
88.7 	and how the placement is consistent with the best interests and special needs of the child 
88.8 	according to the factors under subdivision 2, paragraph (b);
88.9 	(2) the specific reasons for the placement of the child in foster care, and when 
88.10 	reunification is the plan, a description of the problems or conditions in the home of the 
88.11 	parent or parents which necessitated removal of the child from home and the changes the 
88.12 	parent or parents must make in order for the child to safely return home;
88.13 	(3) a description of the services offered and provided to prevent removal of the child 
88.14 	from the home and to reunify the family including:
88.15 	(i) the specific actions to be taken by the parent or parents of the child to eliminate 
88.16 	or correct the problems or conditions identified in clause (2), and the time period during 
88.17 	which the actions are to be taken; and
88.18 	(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made 
88.19 	to achieve a safe and stable home for the child including social and other supportive 
88.20 	services to be provided or offered to the parent or parents or guardian of the child, the 
88.21 	child, and the residential facility during the period the child is in the residential facility;
88.22 	(4) a description of any services or resources that were requested by the child or the 
88.23 	child's parent, guardian, foster parent, or custodian since the date of the child's placement 
88.24 	in the residential facility, and whether those services or resources were provided and if 
88.25 	not, the basis for the denial of the services or resources;
88.26 	(5) the visitation plan for the parent or parents or guardian, other relatives as defined 
88.27 	in section 260C.007, subdivision 26b or 27, and siblings of the child if the siblings are not 
88.28 	placed together in foster care, and whether visitation is consistent with the best interest 
88.29 	of the child, during the period the child is in foster care;
88.30 	(6) when a child cannot return to or be in the care of either parent, documentation 
88.31 	of steps to finalize adoption as the permanency plan for the child through reasonable 
88.32 	efforts to place the child for adoption. At a minimum, the documentation must include 
88.33 	consideration of whether adoption is in the best interests of the child, child-specific 
88.34 	recruitment efforts such as relative search and the use of state, regional, and national 
88.35 	adoption exchanges to facilitate orderly and timely placements in and outside of the state. 
89.1 	A copy of this documentation shall be provided to the court in the review required under 
89.2 	section 260C.317, subdivision 3, paragraph (b);
89.3 	(7) when a child cannot return to or be in the care of either parent, documentation 
89.4 	of steps to finalize the transfer of permanent legal and physical custody to a relative as 
89.5 	the permanency plan for the child. This documentation must support the requirements of 
89.6 	the kinship placement agreement under section 256N.22 and must include the reasonable 
89.7 	efforts used to determine that it is not appropriate for the child to return home or be 
89.8 	adopted, and reasons why permanent placement with a relative through a Northstar kinship 
89.9 	assistance arrangement is in the child's best interest; how the child meets the eligibility 
89.10 	requirements for Northstar kinship assistance payments; agency efforts to discuss adoption 
89.11 	with the child's relative foster parent and reasons why the relative foster parent chose not 
89.12 	to pursue adoption, if applicable; and agency efforts to discuss with the child's parent or 
89.13 	parents the permanent transfer of permanent legal and physical custody or the reasons 
89.14 	why these efforts were not made;
89.15 	(8) efforts to ensure the child's educational stability while in foster care, including 
89.16 	for a child who attained the minimum age for compulsory school attendance under state 
89.17 	law and is enrolled full time in elementary or secondary school, or instructed in elementary 
89.18 	or secondary education at home, or instructed in an independent study elementary or 
89.19 	secondary program, or incapable of attending school on a full-time basis due to a medical 
89.20 	condition that is documented and supported by regularly updated information in the child's 
89.21 	case plan. Educational stability efforts include:
89.22 	(i) efforts to ensure that the child remains in the same school in which the child was 
89.23 	enrolled prior to placement or upon the child's move from one placement to another, 
89.24 	including efforts to work with the local education authorities to ensure the child's 
89.25 	educational stability and attendance; or
89.26 	(ii) if it is not in the child's best interest to remain in the same school that the child 
89.27 	was enrolled in prior to placement or move from one placement to another, efforts to 
89.28 	ensure immediate and appropriate enrollment for the child in a new school;
89.29 	(9) the educational records of the child including the most recent information 
89.30 	available regarding:
89.31 	(i) the names and addresses of the child's educational providers;
89.32 	(ii) the child's grade level performance;
89.33 	(iii) the child's school record;
89.34 	(iv) a statement about how the child's placement in foster care takes into account 
89.35 	proximity to the school in which the child is enrolled at the time of placement; and
89.36 	(v) any other relevant educational information;
90.1 	(10) the efforts by the local responsible social services agency to ensure the oversight 
90.2 	and continuity of health care services for the foster child, including:
90.3 	(i) the plan to schedule the child's initial health screens;
90.4 	(ii) how the child's known medical problems and identified needs from the screens, 
90.5 	including any known communicable diseases, as defined in section 144.4172, subdivision 
90.6 	2, willshall be monitored and treated while the child is in foster care;
90.7 	(iii) how the child's medical information willshall be updated and shared, including 
90.8 	the child's immunizations;
90.9 	(iv) who is responsible to coordinate and respond to the child's health care needs, 
90.10 	including the role of the parent, the agency, and the foster parent;
90.11 	(v) who is responsible for oversight of the child's prescription medications;
90.12 	(vi) how physicians or other appropriate medical and nonmedical professionals will 
90.13 	shall be consulted and involved in assessing the health and well-being of the child and 
90.14 	determine the appropriate medical treatment for the child; and
90.15 	(vii) the responsibility to ensure that the child has access to medical care through 
90.16 	either medical insurance or medical assistance;
90.17 	(11) the health records of the child including information available regarding:
90.18 	(i) the names and addresses of the child's health care and dental care providers;
90.19 	(ii) a record of the child's immunizations;
90.20 	(iii) the child's known medical problems, including any known communicable 
90.21 	diseases as defined in section 144.4172, subdivision 2;
90.22 	(iv) the child's medications; and
90.23 	(v) any other relevant health care information such as the child's eligibility for 
90.24 	medical insurance or medical assistance;
90.25 	(12) an independent living plan for a child age 14 years of age or older, developed in 
90.26 	consultation with the child. The child may select one member of the case planning team to 
90.27 	be designated as the child's adviser and to advocate with respect to the application of the 
90.28 	reasonable and prudent parenting standards in subdivision 14. The plan should include, 
90.29 	but not be limited to, the following objectives:
90.30 	(i) educational, vocational, or employment planning;
90.31 	(ii) health care planning and medical coverage;
90.32 	(iii) transportation including, where appropriate, assisting the child in obtaining a 
90.33 	driver's license;
90.34 	(iv) money management, including the responsibility of the responsible social 
90.35 	services agency to ensure that the youthchild annually receives, at no cost to the youth
91.1 	child, a consumer report as defined under section 13C.001 and assistance in interpreting 
91.2 	and resolving any inaccuracies in the report;
91.3 	(v) planning for housing;
91.4 	(vi) social and recreational skills;
91.5 	(vii) establishing and maintaining connections with the child's family and 
91.6 	community; and
91.7 	(viii) regular opportunities to engage in age-appropriate or developmentally 
91.8 	appropriate activities typical for the child's age group, taking into consideration the 
91.9 	capacities of the individual child; and
91.10 	(13) for a child in voluntary foster care for treatment under chapter 260D, diagnostic 
91.11 	and assessment information, specific services relating to meeting the mental health care 
91.12 	needs of the child, and treatment outcomes.; and
91.13 	(14) for a child 14 years of age or older, a signed acknowledgment that describes 
91.14 	the child's rights regarding education, health care, visitation, safety and protection from 
91.15 	exploitation, and court participation; receipt of the documents identified in section 
91.16 	260C.45; and receipt of an annual credit report. The acknowledgment shall state that the 
91.17 	rights were explained in an age-appropriate manner to the child.
91.18 	(d) The parent or parents or guardian and the child each shall have the right to legal 
91.19 	counsel in the preparation of the case plan and shall be informed of the right at the time 
91.20 	of placement of the child. The child shall also have the right to a guardian ad litem. 
91.21 	If unable to employ counsel from their own resources, the court shall appoint counsel 
91.22 	upon the request of the parent or parents or the child or the child's legal guardian. The 
91.23 	parent or parents may also receive assistance from any person or social services agency 
91.24 	in preparation of the case plan.
91.25 	After the plan has been agreed upon by the parties involved or approved or ordered 
91.26 	by the court, the foster parents shall be fully informed of the provisions of the case plan 
91.27 	and shall be provided a copy of the plan.
91.28 	Upon discharge from foster care, the parent, adoptive parent, or permanent legal and 
91.29 	physical custodian, as appropriate, and the child, if appropriate, must be provided with 
91.30 	a current copy of the child's health and education record.

91.31 	Sec. 71. Minnesota Statutes 2015 Supplement, section 260C.212, subdivision 14, 
91.32 	is amended to read:
91.33 		Subd. 14.Support age-appropriate and developmentally appropriate activities 
91.34 	for foster children. (a) Responsible social services agencies and licensed child-placing 
91.35 	agencies shall support a foster child's emotional and developmental growth by permitting 
92.1 	the child to participate in activities or events that are generally accepted as suitable 
92.2 	for children of the same chronological age or are developmentally appropriate for the 
92.3 	child. "Developmentally appropriate" means based on a child's cognitive, emotional, 
92.4 	physical, and behavioral capacities that are typical for an age or age group. Foster 
92.5 	parents and residential facility staff are permitted to allow foster children to participate in 
92.6 	extracurricular, social, or cultural activities that are typical for the child's age by applying 
92.7 	reasonable and prudent parenting standards. 
92.8 	(b) "Reasonable and prudent parenting" means the standards are characterized 
92.9 	by careful and sensible parenting decisions that maintain the child's health and safety, 
92.10 	cultural, religious, and are made in the child's tribal values, and  best interest interests 
92.11 	while encouraging the child's emotional and developmental growth.
92.12 	(c) The commissioner shall provide guidance about the childhood activities and 
92.13 	factors a foster parent and authorized residential facility staff must consider when applying 
92.14 	the reasonable and prudent parenting standards. The factors must include the:
92.15 	(1) child's age, maturity, and developmental level;
92.16 	(2) risk of activity;
92.17 	(3) best interests of the child;
92.18 	(4) importance of the experience in the child's emotional and developmental growth;
92.19 	(5) importance of a family-like experience;
92.20 	(6) behavioral history of the child; and
92.21 	(7) wishes of the child's parent or legal guardian, as appropriate.
92.22 	(d) A residential facility licensed under chapter 2960 must have at least one 
92.23 	staff person present on site, who is trained on the standards according to section 
92.24 	260C.515, subdivision 4, and authorized to apply the reasonable and prudent parenting 
92.25 	standards to decisions involving the approval of a foster child's participation in age and 
92.26 	developmentally appropriate extracurricular, social, or cultural activities.
92.27 	(e) The foster parent or designated staff at residential facilities demonstrating 
92.28 	compliance with the reasonable and prudent parenting standards shall not incur civil 
92.29 	liability if a foster child is harmed or injured because of participating in approved 
92.30 	extracurricular, enrichment, cultural, and social activities.

92.31 	Sec. 72. Minnesota Statutes 2015 Supplement, section 260C.215, subdivision 4, 
92.32 	is amended to read:
92.33 		Subd. 4.Duties of commissioner. The commissioner of human services shall:
93.1 	(1) provide practice guidance to responsible social services agencies and licensed 
93.2 	child-placing agencies that reflect federal and state laws and policy direction on placement 
93.3 	of children;
93.4 	(2) develop criteria for determining whether a prospective adoptive or foster family 
93.5 	has the ability to understand and validate the child's cultural background;
93.6 	(3) provide a standardized training curriculum for adoption and foster care workers 
93.7 	and administrators who work with children. Training must address the following objectives:
93.8 	(i) developing and maintaining sensitivity to all cultures;
93.9 	(ii) assessing values and their cultural implications;
93.10 	(iii) making individualized placement decisions that advance the best interests of a 
93.11 	particular child under section 260C.212, subdivision 2; and
93.12 	(iv) issues related to cross-cultural placement;
93.13 	(4) provide a training curriculum for all prospective adoptive and foster families 
93.14 	that prepares them to care for the needs of adoptive and foster children taking into 
93.15 	consideration the needs of children outlined in section 260C.212, subdivision 2, paragraph 
93.16 	(b), and, as necessary, preparation is continued after placement of the child and includes 
93.17 	the knowledge and skills related to reasonable and prudent parenting standards for the 
93.18 	participation of the child in age or developmentally appropriate activities, according to 
93.19 	section 260C.212, subdivision 14;
93.20 	(5) develop and provide to responsible social services agencies and licensed 
93.21 	child-placing agencies a home study format to assess the capacities and needs of 
93.22 	prospective adoptive and foster families. The format must address problem-solving skills; 
93.23 	parenting skills; evaluate the degree to which the prospective family has the ability 
93.24 	to understand and validate the child's cultural background, and other issues needed to 
93.25 	provide sufficient information for agencies to make an individualized placement decision 
93.26 	consistent with section 260C.212, subdivision 2. For a study of a prospective foster parent, 
93.27 	the format must also address the capacity of the prospective foster parent to provide a 
93.28 	safe, healthy, smoke-free home environment. If a prospective adoptive parent has also 
93.29 	been a foster parent, any update necessary to a home study for the purpose of adoption 
93.30 	may be completed by the licensing authority responsible for the foster parent's license. 
93.31 	If a prospective adoptive parent with an approved adoptive home study also applies for 
93.32 	a foster care license, the license application may be made with the same agency which 
93.33 	provided the adoptive home study; and
93.34 	(6) consult with representatives reflecting diverse populations from the councils 
93.35 	established under sections 3.922 and 15.0145, and other state, local, and community 
93.36 	organizations.

94.1 	Sec. 73. Minnesota Statutes 2015 Supplement, section 260C.451, subdivision 6, 
94.2 	is amended to read:
94.3 		Subd. 6.Reentering foster care and accessing services after age 18 years of 
94.4 	age and up to 21 years of age. (a) Upon request of an individual between the ages of 
94.5 	18 and 21 who had been under the guardianship of the commissioner and who has left 
94.6 	foster care without being adopted, the responsible social services agency which had 
94.7 	been the commissioner's agent for purposes of the guardianship shall develop with the 
94.8 	individual a plan to increase the individual's ability to live safely and independently using 
94.9 	the plan requirements of section 260C.212, subdivision 1, paragraph (c), clause (12), and 
94.10 	to assist the individual to meet one or more of the eligibility criteria in subdivision 4 if 
94.11 	the individual wants to reenter foster care. The responsible social services agency shall 
94.12 	provide foster care as required to implement the plan. The responsible social services 
94.13 	agency shall enter into a voluntary placement agreement under section 260C.229 with the 
94.14 	individual if the plan includes foster care.
94.15 	(b) Individuals who had not been under the guardianship of the commissioner of 
94.16 	human services prior to 18 years of age 18 and are between the ages of 18 and 21 may ask 
94.17 	to reenter foster care after age 18 and, to the extent funds are available, the responsible 
94.18 	social services agency that had responsibility for planning for the individual before 
94.19 	discharge from foster care may provide foster care or other services to the individual for 
94.20 	the purpose of increasing the individual's ability to live safely and independently and to 
94.21 	meet the eligibility criteria in subdivision 3a, if the individual:
94.22 	(1) was in foster care for the six consecutive months prior to the person's 18th 
94.23 	birthday and was not discharged home, adopted, or received into a relative's home under a 
94.24 	transfer of permanent legal and physical custody under section 260C.515, subdivision 4; or
94.25 	(2) was discharged from foster care while on runaway status after age 15.
94.26 	(c) In conjunction with a qualifying and eligible individual under paragraph (b) and 
94.27 	other appropriate persons, the responsible social services agency shall develop a specific 
94.28 	plan related to that individual's vocational, educational, social, or maturational needs and, 
94.29 	to the extent funds are available, provide foster care as required to implement the plan. 
94.30 	The responsible social services agency shall enter into a voluntary placement agreement 
94.31 	with the individual if the plan includes foster care.
94.32 	(d) YouthA child who left foster care while under guardianship of the commissioner 
94.33 	of human services retain retains eligibility for foster care for placement at any time 
94.34 	between the ages of 18 and prior to  21 years of age.

95.1 	Sec. 74. Minnesota Statutes 2014, section 260C.451, is amended by adding a 
95.2 	subdivision to read:
95.3 		Subd. 9.Administrative or court review of placements. (a) The court shall 
95.4 	conduct reviews at least annually to ensure the responsible social services agency is 
95.5 	making reasonable efforts to finalize the permanency plan for the child.
95.6 	(b) The court shall find that the responsible social services agency is making 
95.7 	reasonable efforts to finalize the permanency plan for the child when the responsible 
95.8 	social services agency:
95.9 	(1) provides appropriate support to the child and foster care provider to ensure 
95.10 	continuing stability and success in placement;
95.11 	(2) works with the child to plan for transition to adulthood and assists the child in 
95.12 	demonstrating progress in achieving related goals;
95.13 	(3) works with the child to plan for independent living skills and assists the child in 
95.14 	demonstrating progress in achieving independent living goals; and
95.15 	(4) prepares the child for independence according to sections 260C.203, paragraph 
95.16 	(d), and 260C.452, subdivision 4.
95.17 	(c) The responsible social services agency must ensure that an administrative review 
95.18 	that meets the requirements of this section and section 260C.203 is completed at least six 
95.19 	months after each of the court's annual reviews.

95.20 	Sec. 75. [260C.452] SUCCESSFUL TRANSITION TO ADULTHOOD.
95.21 		Subdivision 1.Scope. This section pertains to a child who is under the guardianship 
95.22 	of the commissioner of human services, or who has a permanency disposition of 
95.23 	permanent custody to the agency, or who will leave foster care at 18 to 21 years of age.
95.24 		Subd. 2.Independent living plan. When the child is 14 years of age or older, 
95.25 	the responsible social services agency, in consultation with the child, shall complete 
95.26 	the independent living plan according to section 260C.212, subdivision 1, paragraph 
95.27 	(c), clause (12).
95.28 		Subd. 3.Notification. Six months before the child is expected to be discharged from 
95.29 	foster care, the responsible social services agency shall provide written notice regarding 
95.30 	the right to continued access to services for certain children in foster care past 18 years of 
95.31 	age and of the right to appeal a denial of social services under section 256.045.
95.32 		Subd. 4.Administrative or court review of placements. (a) When the child is 14 
95.33 	years of age or older, the court, in consultation with the child, shall review the independent 
95.34 	living plan according to section 260C.203, paragraph (d).
96.1 	(b) The responsible social services agency shall file a copy of the notification 
96.2 	required in subdivision 3 with the court. If the responsible social services agency does 
96.3 	not file the notice by the time the child is 17-1/2 years of age, the court shall require the 
96.4 	responsible social services agency to file the notice.
96.5 	(c) The court shall ensure that the responsible social services agency assists the child 
96.6 	in obtaining the following documents before the child leaves foster care: a Social Security 
96.7 	card; an official or certified copy of the child's birth certificate; a state identification card 
96.8 	or driver's license, tribal enrollment identification card, green card, or school visa; health 
96.9 	insurance information; the child's school, medical, and dental records; a contact list of 
96.10 	the child's medical, dental, and mental health providers; and contact information for the 
96.11 	child's siblings, if the siblings are in foster care.
96.12 	(d) For a child who will be discharged from foster care at 18 years of age or older, 
96.13 	the responsible social services agency must develop a personalized transition plan as 
96.14 	directed by the child during the 90-day period immediately prior to the expected date of 
96.15 	discharge. The transition plan must be as detailed as the child elects and include specific 
96.16 	options, including but not limited to:
96.17 	(1) affordable housing with necessary supports that does not include a homeless 
96.18 	shelter;
96.19 	(2) health insurance, including eligibility for medical assistance as defined in 
96.20 	256B.055, subdivision 17;
96.21 	(3) education, including application to the Education and Training Voucher Program;
96.22 	(4) local opportunities for mentors and continuing support services, including the 
96.23 	Healthy Transitions and Homeless Prevention program, if available;
96.24 	(5) workforce supports and employment services;
96.25 	(6) a copy of the child's consumer credit report as defined in section 13C.001 and 
96.26 	assistance in interpreting and resolving any inaccuracies in the report, at no cost to the child;
96.27 	(7) information on executing a health care directive under chapter 145C and on the 
96.28 	importance of designating another individual to make health care decisions on behalf of 
96.29 	the child if the child becomes unable to participate in decisions; and
96.30 	(8) appropriate contact information through 21 years of age if the child needs 
96.31 	information or help dealing with a crisis situation.
96.32 		Subd. 5.Notice of termination of foster care. (a) When a child leaves foster care 
96.33 	at 18 years of age or older, the responsible social services agency shall give the child 
96.34 	written notice that foster care shall terminate 30 days from the date the notice is sent.
96.35 	(b) The child or the child's guardian ad litem may file a motion asking the court to 
96.36 	review the responsible social services agency's determination within 15 days of receiving 
97.1 	the notice. The child shall not be discharged from foster care until the motion is heard. The 
97.2 	responsible social services agency shall work with the child to transition out of foster care.
97.3 	(c) The written notice of termination of benefits shall be on a form prescribed by 
97.4 	the commissioner and shall give notice of the right to have the responsible social services 
97.5 	agency's determination reviewed by the court under this section or sections 260C.203, 
97.6 	260C.317, and 260C.515, subdivision 5 or 6. A copy of the termination notice shall 
97.7 	be sent to the child and the child's attorney, if any, the foster care provider, the child's 
97.8 	guardian ad litem, and the court. The responsible social services agency is not responsible 
97.9 	for paying foster care benefits for any period of time after the child leaves foster care.

97.10 	Sec. 76. Minnesota Statutes 2015 Supplement, section 260C.521, subdivision 1, 
97.11 	is amended to read:
97.12 		Subdivision 1.Child in permanent custody of responsible social services agency.
 97.13 	(a) Court reviews of an order for permanent custody to the responsible social services 
97.14 	agency for placement of the child in foster care must be conducted at least yearly at an 
97.15 	in-court appearance hearing.
97.16 	(b) The purpose of the review hearing is to ensure:
97.17 	(1) the responsible social services agency made intensive, ongoing, and, as of the 
97.18 	date of the hearing, unsuccessful effort to return the child home or secure a placement for 
97.19 	the child with a fit and willing relative, custodian, or adoptive parent, and an order for 
97.20 	permanent custody to the responsible social services agency for placement of the child in 
97.21 	foster care continues to be in the best interests of the child and that no other permanency 
97.22 	disposition order is in the best interests of the child;
97.23 	(2) that the responsible social services agency is assisting the child to build 
97.24 	connections to the child's family and community; and
97.25 	(3) that the responsible social services agency is appropriately planning with the 
97.26 	child for development of independent living skills for the child and, as appropriate, for the 
97.27 	orderly and successful transition to independent living adulthood that may occur if the 
97.28 	child continues in foster care without another permanency disposition order.;
97.29 	(4) the child's foster family home or child care institution is following the reasonable 
97.30 	and prudent parenting standards; and
97.31 	(5) the child has regular, ongoing opportunities to engage in age or developmentally 
97.32 	appropriate activities by consulting with the child in an age-appropriate manner about the 
97.33 	opportunities.
98.1 	(c) The court must review the child's out-of-home placement plan and the reasonable 
98.2 	efforts of the responsible social services agency to finalize an alternative permanent plan 
98.3 	for the child including the responsible social services agency's efforts to:
98.4 	(1) ensure that permanent custody to the responsible social services agency with 
98.5 	placement of the child in foster care continues to be the most appropriate legal arrangement 
98.6 	for meeting the child's need for permanency and stability or, if not, to identify and attempt 
98.7 	to finalize another permanency disposition order under this chapter that would better serve 
98.8 	the child's needs and best interests;by reviewing the compelling reasons it continues not 
98.9 	to be in the best interest of the child to:
98.10 	(i) return home;
98.11 	(ii) be placed for adoption; or
98.12 	(iii) be placed with a fit and willing relative through an order for permanent legal 
98.13 	and physical custody under section 260C.515, subdivision 4;
98.14 	(2) identify a specific foster home for the child, if one has not already been identified;
98.15 	(3) support continued placement of the child in the identified home, if one has been 
98.16 	identified;
98.17 	(4) ensure appropriate services are provided to address the physical health, mental 
98.18 	health, and educational needs of the child during the period of foster care and also ensure 
98.19 	appropriate services or assistance to maintain relationships with appropriate family 
98.20 	members and the child's community; and
98.21 	(5) plan for the child's independence upon the child's leaving foster care living as 
98.22 	required under section 260C.212, subdivision 1.
98.23 	(d) The court may find that the responsible social services agency has made 
98.24 	reasonable efforts to finalize the permanent plan for the child when:
98.25 	(1) the responsible social services agency has made reasonable efforts to identify a 
98.26 	more legally permanent home for the child than is provided by an order for permanent 
98.27 	custody to the agency for placement in foster care;
98.28 	(2) the child has been asked about the child's desired permanency outcome; and
98.29 	(3) the responsible social services agency's engagement of the child in planning for 
98.30 	independent living a successful transition to adulthood is reasonable and appropriate.

98.31 	Sec. 77. [260D.14] SUCCESSFUL TRANSITION TO ADULTHOOD FOR 
98.32 	CHILDREN IN VOLUNTARY PLACEMENT.
98.33 		Subdivision 1.Case planning. When the child is 14 years of age or older, the 
98.34 	responsible social services agency shall ensure a child in foster care under this chapter is 
98.35 	provided with the case plan requirements in section 260C.212, subdivisions 1 and 14.
99.1 		Subd. 2.Notification. The responsible social services agency shall provide written 
99.2 	notice of the right to continued access to services for certain children in foster care past 18 
99.3 	years of age under section 260C.452, subdivision 3, and of the right to appeal a denial 
99.4 	of social services under section 256.045. The notice must be provided to the child six 
99.5 	months before the child's 18th birthday. 
99.6 		Subd. 3.Administrative or court reviews. When the child is 17 years of age or 
99.7 	older, the administrative review or court hearing must include a review of the responsible 
99.8 	social services agency's support for the child's successful transition to adulthood as 
99.9 	required in section 260C.452, subdivision 4.

99.10 	Sec. 78. Minnesota Statutes 2015 Supplement, section 626.556, subdivision 2, is 
99.11 	amended to read:
99.12 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
99.13 	given them unless the specific content indicates otherwise:
99.14 	(a) "Accidental" means a sudden, not reasonably foreseeable, and unexpected 
99.15 	occurrence or event which:
99.16 	(1) is not likely to occur and could not have been prevented by exercise of due 
99.17 	care; and
99.18 	(2) if occurring while a child is receiving services from a facility, happens when the 
99.19 	facility and the employee or person providing services in the facility are in compliance 
99.20 	with the laws and rules relevant to the occurrence or event.
99.21 	(b) "Commissioner" means the commissioner of human services.
99.22 	(c) "Facility" means:
99.23 	(1) a licensed or unlicensed day care facility, residential facility, agency, hospital, 
99.24 	sanitarium, or other facility or institution required to be licensed under sections 144.50 to 
99.25 	144.58, 241.021, or 245A.01 to 245A.16, or chapter 245D;
99.26 	(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 
99.27 	124E; or
99.28 	(3) a nonlicensed personal care provider organization as defined in section 
99.29 	256B.0625, subdivision 19a.
99.30 	(d) "Family assessment" means a comprehensive assessment of child safety, risk of 
99.31 	subsequent child maltreatment, and family strengths and needs that is applied to a child 
99.32 	maltreatment report that does not allege sexual abuse or substantial child endangerment. 
99.33 	Family assessment does not include a determination as to whether child maltreatment 
99.34 	occurred but does determine the need for services to address the safety of family members 
99.35 	and the risk of subsequent maltreatment.
100.1 	(e) "Investigation" means fact gathering related to the current safety of a child 
100.2 	and the risk of subsequent maltreatment that determines whether child maltreatment 
100.3 	occurred and whether child protective services are needed. An investigation must be used 
100.4 	when reports involve sexual abuse or substantial child endangerment, and for reports of 
100.5 	maltreatment in facilities required to be licensed under chapter 245A or 245D; under 
100.6 	sections 144.50 to 144.58 and 241.021; in a school as defined in section 120A.05, 
100.7 	subdivisions 9, 11, and 13, and chapter 124E; or in a nonlicensed personal care provider 
100.8 	association as defined in section 256B.0625, subdivision 19a.
100.9 	(f) "Mental injury" means an injury to the psychological capacity or emotional 
100.10 	stability of a child as evidenced by an observable or substantial impairment in the child's 
100.11 	ability to function within a normal range of performance and behavior with due regard to 
100.12 	the child's culture.
100.13 	(g) "Neglect" means the commission or omission of any of the acts specified under 
100.14 	clauses (1) to (9), other than by accidental means:
100.15 	(1) failure by a person responsible for a child's care to supply a child with necessary 
100.16 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
100.17 	mental health when reasonably able to do so;
100.18 	(2) failure to protect a child from conditions or actions that seriously endanger the 
100.19 	child's physical or mental health when reasonably able to do so, including a growth delay, 
100.20 	which may be referred to as a failure to thrive, that has been diagnosed by a physician and 
100.21 	is due to parental neglect;
100.22 	(3) failure to provide for necessary supervision or child care arrangements 
100.23 	appropriate for a child after considering factors as the child's age, mental ability, physical 
100.24 	condition, length of absence, or environment, when the child is unable to care for the 
100.25 	child's own basic needs or safety, or the basic needs or safety of another child in their care;
100.26 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
100.27 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
100.28 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
100.29 	(5) nothing in this section shall be construed to mean that a child is neglected solely 
100.30 	because the child's parent, guardian, or other person responsible for the child's care in 
100.31 	good faith selects and depends upon spiritual means or prayer for treatment or care of 
100.32 	disease or remedial care of the child in lieu of medical care; except that a parent, guardian, 
100.33 	or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report 
100.34 	if a lack of medical care may cause serious danger to the child's health. This section does 
100.35 	not impose upon persons, not otherwise legally responsible for providing a child with 
100.36 	necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
101.1 	(6) prenatal exposure to a controlled substance, as defined in section 253B.02, 
101.2 	subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal 
101.3 	symptoms in the child at birth, results of a toxicology test performed on the mother at 
101.4 	delivery or the child at birth, medical effects or developmental delays during the child's 
101.5 	first year of life that medically indicate prenatal exposure to a controlled substance, or the 
101.6 	presence of a fetal alcohol spectrum disorder;
101.7 	(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
101.8 	(8) chronic and severe use of alcohol or a controlled substance by a parent or 
101.9 	person responsible for the care of the child that adversely affects the child's basic needs 
101.10 	and safety; or
101.11 	(9) emotional harm from a pattern of behavior which contributes to impaired 
101.12 	emotional functioning of the child which may be demonstrated by a substantial and 
101.13 	observable effect in the child's behavior, emotional response, or cognition that is not 
101.14 	within the normal range for the child's age and stage of development, with due regard to 
101.15 	the child's culture.
101.16 	(h) "Nonmaltreatment mistake" means:
101.17 	(1) at the time of the incident, the individual was performing duties identified in the 
101.18 	center's child care program plan required under Minnesota Rules, part 9503.0045;
101.19 	(2) the individual has not been determined responsible for a similar incident that 
101.20 	resulted in a finding of maltreatment for at least seven years;
101.21 	(3) the individual has not been determined to have committed a similar 
101.22 	nonmaltreatment mistake under this paragraph for at least four years;
101.23 	(4) any injury to a child resulting from the incident, if treated, is treated only with 
101.24 	remedies that are available over the counter, whether ordered by a medical professional or 
101.25 	not; and
101.26 	(5) except for the period when the incident occurred, the facility and the individual 
101.27 	providing services were both in compliance with all licensing requirements relevant to the 
101.28 	incident.
101.29 	This definition only applies to child care centers licensed under Minnesota 
101.30 	Rules, chapter 9503. If clauses (1) to (5) apply, rather than making a determination of 
101.31 	substantiated maltreatment by the individual, the commissioner of human services shall 
101.32 	determine that a nonmaltreatment mistake was made by the individual.
101.33 	(i) "Operator" means an operator or agency as defined in section 245A.02.
101.34 	(j) "Person responsible for the child's care" means (1) an individual functioning 
101.35 	within the family unit and having responsibilities for the care of the child such as a 
101.36 	parent, guardian, or other person having similar care responsibilities, or (2) an individual 
102.1 	functioning outside the family unit and having responsibilities for the care of the child 
102.2 	such as a teacher, school administrator, other school employees or agents, or other lawful 
102.3 	custodian of a child having either full-time or short-term care responsibilities including, 
102.4 	but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, 
102.5 	and coaching.
102.6 	(k) "Physical abuse" means any physical injury, mental injury, or threatened injury, 
102.7 	inflicted by a person responsible for the child's care on a child other than by accidental 
102.8 	means, or any physical or mental injury that cannot reasonably be explained by the child's 
102.9 	history of injuries, or any aversive or deprivation procedures, or regulated interventions, 
102.10 	that have not been authorized under section 125A.0942 or 245.825.
102.11 	Abuse does not include reasonable and moderate physical discipline of a child 
102.12 	administered by a parent or legal guardian which does not result in an injury. Abuse does 
102.13 	not include the use of reasonable force by a teacher, principal, or school employee as 
102.14 	allowed by section 121A.582. Actions which are not reasonable and moderate include, but 
102.15 	are not limited to, any of the following:
102.16 	(1) throwing, kicking, burning, biting, or cutting a child;
102.17 	(2) striking a child with a closed fist;
102.18 	(3) shaking a child under age three;
102.19 	(4) striking or other actions which result in any nonaccidental injury to a child 
102.20 	under 18 months of age;
102.21 	(5) unreasonable interference with a child's breathing;
102.22 	(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
102.23 	(7) striking a child under age one on the face or head;
102.24 	(8) striking a child who is at least age one but under age four on the face or head, 
102.25 	which results in an injury;
102.26 	(9) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled 
102.27 	substances which were not prescribed for the child by a practitioner, in order to control or 
102.28 	punish the child; or other substances that substantially affect the child's behavior, motor 
102.29 	coordination, or judgment or that results in sickness or internal injury, or subjects the 
102.30 	child to medical procedures that would be unnecessary if the child were not exposed 
102.31 	to the substances;
102.32 	(10) unreasonable physical confinement or restraint not permitted under section 
102.33 	609.379, including but not limited to tying, caging, or chaining; or
102.34 	(11) in a school facility or school zone, an act by a person responsible for the child's 
102.35 	care that is a violation under section 121A.58.
103.1 	(l) "Practice of social services," for the purposes of subdivision 3, includes but is 
103.2 	not limited to employee assistance counseling and the provision of guardian ad litem and 
103.3 	parenting time expeditor services.
103.4 	(m) "Report" means any communication received by the local welfare agency, 
103.5 	police department, county sheriff, or agency responsible for child protection pursuant to 
103.6 	this section that describes neglect or physical or sexual abuse of a child and contains 
103.7 	sufficient content to identify the child and any person believed to be responsible for the 
103.8 	neglect or abuse, if known.
103.9 	(n) "Sexual abuse" means the subjection of a child by a person responsible for the 
103.10 	child's care, by a person who has a significant relationship to the child, as defined in 
103.11 	section 609.341, or by a person in a position of authority, as defined in section 609.341, 
103.12 	subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual 
103.13 	conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 
103.14 	609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct in 
103.15 	the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual abuse 
103.16 	also includes any act which involves a minor which constitutes a violation of prostitution 
103.17 	offenses under sections 609.321 to 609.324 or 617.246. Effective May 29, 2017, sexual 
103.18 	abuse includes a child who is identified as a victim of sex trafficking regardless of who is 
103.19 	the alleged perpetrator. Sexual abuse includes child sex trafficking as defined in section 
103.20 	609.321, subdivisions 7a and 7b. Sexual abuse includes threatened sexual abuse which 
103.21 	includes the status of a parent or household member who has committed a violation which 
103.22 	requires registration as an offender under section 243.166, subdivision 1b, paragraph (a) 
103.23 	or (b), or required registration under section 243.166, subdivision 1b, paragraph (a) or (b).
103.24 	(o) "Substantial child endangerment" means a person responsible for a child's care, 
103.25 	by act or omission, commits or attempts to commit an act against a child under their 
103.26 	care that constitutes any of the following:
103.27 	(1) egregious harm as defined in section 260C.007, subdivision 14;
103.28 	(2) abandonment under section 260C.301, subdivision 2;
103.29 	(3) neglect as defined in paragraph (g), clause (2), that substantially endangers the 
103.30 	child's physical or mental health, including a growth delay, which may be referred to as 
103.31 	failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
103.32 	(4) murder in the first, second, or third degree under section 609.185, 609.19, or 
103.33 	609.195;
103.34 	(5) manslaughter in the first or second degree under section 609.20 or 609.205;
103.35 	(6) assault in the first, second, or third degree under section 609.221, 609.222, or 
103.36 	609.223;
104.1 	(7) solicitation, inducement, and promotion of prostitution under section 609.322;
104.2 	(8) criminal sexual conduct under sections 609.342 to 609.3451;
104.3 	(9) solicitation of children to engage in sexual conduct under section 609.352;
104.4 	(10) malicious punishment or neglect or endangerment of a child under section 
104.5 	609.377 or 609.378;
104.6 	(11) use of a minor in sexual performance under section 617.246; or
104.7 	(12) parental behavior, status, or condition which mandates that the county attorney 
104.8 	file a termination of parental rights petition under section 260C.503, subdivision 2.
104.9 	(p) "Threatened injury" means a statement, overt act, condition, or status that 
104.10 	represents a substantial risk of physical or sexual abuse or mental injury. Threatened 
104.11 	injury includes, but is not limited to, exposing a child to a person responsible for the 
104.12 	child's care, as defined in paragraph (j), clause (1), who has:
104.13 	(1) subjected a child to, or failed to protect a child from, an overt act or condition 
104.14 	that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a 
104.15 	similar law of another jurisdiction;
104.16 	(2) been found to be palpably unfit under section 260C.301, subdivision 1, paragraph 
104.17 	(b), clause (4), or a similar law of another jurisdiction;
104.18 	(3) committed an act that has resulted in an involuntary termination of parental rights 
104.19 	under section 260C.301, or a similar law of another jurisdiction; or
104.20 	(4) committed an act that has resulted in the involuntary transfer of permanent 
104.21 	legal and physical custody of a child to a relative under Minnesota Statutes 2010, section 
104.22 	260C.201, subdivision 11, paragraph (d), clause (1), section 260C.515, subdivision 4, or a 
104.23 	similar law of another jurisdiction.
104.24 	A child is the subject of a report of threatened injury when the responsible social 
104.25 	services agency receives birth match data under paragraph (q) from the Department of 
104.26 	Human Services.
104.27 	(q) Upon receiving data under section 144.225, subdivision 2b, contained in a 
104.28 	birth record or recognition of parentage identifying a child who is subject to threatened 
104.29 	injury under paragraph (p), the Department of Human Services shall send the data to the 
104.30 	responsible social services agency. The data is known as "birth match" data. Unless the 
104.31 	responsible social services agency has already begun an investigation or assessment of the 
104.32 	report due to the birth of the child or execution of the recognition of parentage and the 
104.33 	parent's previous history with child protection, the agency shall accept the birth match 
104.34 	data as a report under this section. The agency may use either a family assessment or 
104.35 	investigation to determine whether the child is safe. All of the provisions of this section 
104.36 	apply. If the child is determined to be safe, the agency shall consult with the county 
105.1 	attorney to determine the appropriateness of filing a petition alleging the child is in need 
105.2 	of protection or services under section 260C.007, subdivision 6, clause (16), in order to 
105.3 	deliver needed services. If the child is determined not to be safe, the agency and the county 
105.4 	attorney shall take appropriate action as required under section 260C.503, subdivision 2.
105.5 	(r) Persons who conduct assessments or investigations under this section shall take 
105.6 	into account accepted child-rearing practices of the culture in which a child participates 
105.7 	and accepted teacher discipline practices, which are not injurious to the child's health, 
105.8 	welfare, and safety.

105.9 	Sec. 79. Minnesota Statutes 2015 Supplement, section 626.556, subdivision 3c, 
105.10 	is amended to read:
105.11 		Subd. 3c.Local welfare agency, Department of Human Services or Department 
105.12 	of Health responsible for assessing or investigating reports of maltreatment. (a) 
105.13 	The county local welfare agency is the agency responsible for assessing or investigating 
105.14 	allegations of maltreatment in child foster care, family child care, legally unlicensed
105.15 	nonlicensed child care, juvenile correctional facilities licensed under section 241.021 
105.16 	located in the local welfare agency's county, and reports involving children served by an 
105.17 	unlicensed a nonlicensed personal care provider organization under section 256B.0659. 
105.18 	Copies of findings related to personal care provider organizations under section 256B.0659
105.19 	must be forwarded to the Department of Human Services provider enrollment.
105.20 	(b) The Department of Human Services is the agency responsible for assessing or 
105.21 	investigating allegations of maltreatment in certified centers under chapter 119B and in 
105.22 	facilities licensed under chapters 245A and 245D, except for child foster care and family 
105.23 	child care.
105.24 	(c) The Department of Health is the agency responsible for assessing or investigating 
105.25 	allegations of child maltreatment in facilities licensed under sections 144.50 to 144.58 
105.26 	and 144A.46.

105.27 	Sec. 80. Minnesota Statutes 2014, section 626.556, subdivision 3e, is amended to read:
105.28 		Subd. 3e.Agency responsible for assessing or investigating reports of sexual 
105.29 	abuse. The local welfare agency is the agency responsible for investigating allegations 
105.30 	of sexual abuse if the alleged offender is the parent, guardian, sibling, or an individual 
105.31 	functioning within the family unit as a person responsible for the child's care, or a person 
105.32 	with a significant relationship to the child if that person resides in the child's household.
105.33 	Effective May 29, 2017, the local welfare agency is also responsible for investigating 
105.34 	when a child is identified as a victim of sex trafficking.

106.1 	Sec. 81. Minnesota Statutes 2015 Supplement, section 626.556, subdivision 10b, 
106.2 	is amended to read:
106.3 		Subd. 10b.Duties of commissioner; neglect or abuse in facility. (a) This section 
106.4 	applies to the commissioners of human services, health, and education. The commissioner 
106.5 	of the agency responsible for assessing or investigating the report shall immediately 
106.6 	assess or investigate if the report alleges that:
106.7 	(1) a child who is in the care of a facility as defined in subdivision 2 is neglected, 
106.8 	physically abused, sexually abused, or is the victim of maltreatment in a facility by an 
106.9 	individual in that facility, or has been so neglected or abused, or been the victim of 
106.10 	maltreatment in a facility by an individual in that facility within the three years preceding 
106.11 	the report; or
106.12 	(2) a child was neglected, physically abused, sexually abused, or is the victim of 
106.13 	maltreatment in a facility by an individual in a facility defined in subdivision 2, while in 
106.14 	the care of that facility within the three years preceding the report.
106.15 	(b) The commissioner of the agency responsible for assessing or investigating the 
106.16 	report shall arrange for the transmittal to the commissioner of reports received by local 
106.17 	agencies and may delegate to a local welfare agency the duty to investigate reports. In 
106.18 	conducting an investigation under this section, the commissioner has the powers and 
106.19 	duties specified for local welfare agencies under this section. The commissioner of the 
106.20 	agency responsible for assessing or investigating the report or local welfare agency may 
106.21 	interview any children who are or have been in the care of a facility under investigation 
106.22 	and their parents, guardians, or legal custodians.
106.23 	(b)(c) Prior to any interview, the commissioner of the agency responsible for 
106.24 	assessing or investigating the report or local welfare agency shall notify the parent, 
106.25 	guardian, or legal custodian of a child who will be interviewed in the manner provided 
106.26 	for in subdivision 10d, paragraph (a). If reasonable efforts to reach the parent, guardian, 
106.27 	or legal custodian of a child in an out-of-home placement have failed, the child may be 
106.28 	interviewed if there is reason to believe the interview is necessary to protect the child or 
106.29 	other children in the facility. The commissioner of the agency responsible for assessing 
106.30 	or investigating the report or local agency must provide the information required in this 
106.31 	subdivision to the parent, guardian, or legal custodian of a child interviewed without 
106.32 	parental notification as soon as possible after the interview. When the investigation is 
106.33 	completed, any parent, guardian, or legal custodian notified under this subdivision shall 
106.34 	receive the written memorandum provided for in subdivision 10d, paragraph (c).
106.35 	(c)(d) In conducting investigations under this subdivision the commissioner or 
106.36 	local welfare agency shall obtain access to information consistent with subdivision 10, 
107.1 	paragraphs (h), (i), and (j). In conducting assessments or investigations under this 
107.2 	subdivision, the commissioner of education shall obtain access to reports and investigative 
107.3 	data that are relevant to a report of maltreatment and are in the possession of a school 
107.4 	facility as defined in subdivision 2, paragraph (c), notwithstanding the classification of the 
107.5 	data as educational or personnel data under chapter 13. This includes, but is not limited 
107.6 	to, school investigative reports, information concerning the conduct of school personnel 
107.7 	alleged to have committed maltreatment of students, information about witnesses, and any 
107.8 	protective or corrective action taken by the school facility regarding the school personnel 
107.9 	alleged to have committed maltreatment.
107.10 	(d)(e) The commissioner may request assistance from the local social services 
107.11 	agency.

107.12 	Sec. 82. Minnesota Statutes 2014, section 626.556, subdivision 10f, is amended to read:
107.13 		Subd. 10f.Notice of determinations. Within ten working days of the conclusion 
107.14 	of a family assessment, the local welfare agency shall notify the parent or guardian of 
107.15 	the child of the need for services to address child safety concerns or significant risk of 
107.16 	subsequent child maltreatment. The local welfare agency and the family may also jointly 
107.17 	agree that family support and family preservation services are needed. Within ten working 
107.18 	days of the conclusion of an investigation, the local welfare agency or agency responsible 
107.19 	for investigating the report shall notify the parent or guardian of the child, the person 
107.20 	determined to be maltreating the child, and, if applicable, the director of the facility, of 
107.21 	the determination and a summary of the specific reasons for the determination. When the 
107.22 	investigation involves a child foster care setting that is monitored by a private licensing 
107.23 	agency under section 245A.16, the local welfare agency responsible for investigating the 
107.24 	report shall notify the private licensing agency of the determination and shall provide a 
107.25 	summary of the specific reasons for the determination. The notice to the private licensing 
107.26 	agency must include identifying private data, but not the identity of the reporter of 
107.27 	maltreatment. The notice must also include a certification that the information collection 
107.28 	procedures under subdivision 10, paragraphs (h), (i), and (j), were followed and a notice of 
107.29 	the right of a data subject to obtain access to other private data on the subject collected, 
107.30 	created, or maintained under this section. In addition, the notice shall include the length of 
107.31 	time that the records willshall be kept under subdivision 11c. The investigating agency 
107.32 	shall notify the parent or guardian of the child who is the subject of the report, and any 
107.33 	person or facility determined to have maltreated a child, of their appeal or review rights 
107.34 	under this section. The notice must also state that a finding of maltreatment may result 
107.35 	in denial of a license application or background study disqualification under chapter 
108.1 	245C related to employment or services that are licensed by the Department of Human 
108.2 	Services under chapter 245A, the Department of Health under chapter 144 or 144A, the 
108.3 	Department of Corrections under section 241.021, and from providing services related to 
108.4 	an unlicensed a nonlicensed personal care provider organization under chapter 256B.

108.5 	Sec. 83.  REPEALER.
 108.6 	(a) Minnesota Statutes 2014, section 119B.07, is repealed effective May 22, 2017.
108.7 	(b) Minnesota Statutes 2014, section 119B.125, subdivision 5, is repealed effective 
108.8 	January 2, 2017.
108.9 	(c) Minnesota Statutes 2015 Supplement, section 119B.125, subdivision 8, is 
108.10 	repealed effective the day following final enactment.
108.11 	(d) Minnesota Rules, parts 3400.0040, subparts 6a and 6b; 3400.0110, subpart 2a; 
108.12 	and 3400.0170, subparts 7 and 8, are repealed effective January 2, 2017.
108.13 	(e) Minnesota Rules, part 3400.0110, subpart 10, is repealed effective May 22, 2017.
108.14 	(f) Minnesota Rules, parts 9502.0405, subpart 4, item C; 9502.0425, subpart 18; 
108.15 	9503.0100; 9503.0140, subpart 5; 9503.0145, subpart 6; and 9503.0155, subpart 11, are 
108.16 	repealed.

108.17 	ARTICLE 3
108.18 	CONTINUING CARE

108.19 	Section 1. Minnesota Statutes 2014, section 245A.02, is amended by adding a 
108.20 	subdivision to read:
108.21 		Subd. 23.Corporate foster care. "Corporate foster care" means a child foster 
108.22 	care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, or adult foster care 
108.23 	licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, that is not the primary 
108.24 	residence of the license holder for the entire period of licensure.

108.25 	Sec. 2. Minnesota Statutes 2014, section 245A.02, is amended by adding a subdivision 
108.26 	to read:
108.27 		Subd. 24.Person's own home. "Person's own home" means a setting where the 
108.28 	person decides who lives in the home, who provides services, and who is responsible for 
108.29 	maintenance of the home. If the home is owned by another entity, the lease or rental 
108.30 	agreement is in the person's name. If the person has a legal guardian, the court may identify 
108.31 	the responsibilities of the guardian to include signing a lease agreement on behalf of the 
108.32 	person and making decisions about service providers. A person living with another person 
108.33 	related by blood, marriage, or adoption is considered to be living in the person's own home.

109.1 	Sec. 3. Minnesota Statutes 2014, section 245A.03, subdivision 7, is amended to read:
109.2 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an 
109.3 	initial license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 
109.4 	2960.3340, or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 
109.5 	9555.6265, under this chapter for a physical location that will not be the primary residence 
109.6 	of the license holder for the entire period of licensure corporate foster care. If a license is 
109.7 	issued during this moratorium, and the license holder changes the license holder's primary 
109.8 	residence away from the physical location of the foster care license, the commissioner 
109.9 	shall revoke the license according to section 245A.07. The commissioner shall not 
109.10 	issue an initial license for a community residential setting licensed under chapter 245D. 
109.11 	Exceptions to the moratorium include:
109.12 	(b) The commissioner shall not issue an initial license for a community residential 
109.13 	setting (CRS) licensed under chapter 245D.
109.14 	(c) The moratorium does not apply to foster care settings that are required to be 
109.15 	registered under chapter 144D.
109.16 	(d) In approving an exception under this paragraph, the commissioner shall consider 
109.17 	the need-determination process as defined in section 256B.4915, the availability of 
109.18 	foster care licensed beds in the geographic area in which the licensee operates, and the 
109.19 	recommendation of the local county board. The commissioner's determination shall be 
109.20 	final. Exceptions to the moratorium under this subdivision include:
109.21 	(1) foster care settings that are required to be registered under chapter 144D;
109.22 	(2) (1) foster care licenses replacing foster care licenses in existence on May 15, 
109.23 	2009, or community residential setting CRS  licenses replacing adult foster care licenses 
109.24 	in existence on December 31, 2013, and determined to be needed by the commissioner 
109.25 	under paragraph (b); or
109.26 	(3) (2) new foster care licenses or community residential setting CRS licenses 
109.27 	determined to be needed by the commissioner under paragraph (b) for the closure of a 
109.28 	nursing facility, ICF/DD, or regional treatment center; restructuring of state-operated 
109.29 	services that limits the capacity of state-operated facilities; or allowing movement to the 
109.30 	community for people who no longer require the level of care provided in state-operated 
109.31 	facilities as provided under section 256B.092, subdivision 13, or 256B.49, subdivision 
109.32 	24; for:
109.33 	(i) closing or reducing capacity of a nursing facility, intermediate care facility for 
109.34 	individuals with developmental disabilities, or regional treatment center; restructuring 
109.35 	state-operated services; or allowing movement to the community for individuals who no 
110.1 	longer require the level of care provided in state-operated facilities as provided under 
110.2 	section 256B.092, subdivision 13 or 256B.49, subdivision 24;
110.3 	(ii) an individual requiring hospital level care;
110.4 	(iii) an individual transitioning from residential care waiver service to foster care 
110.5 	service, when:
110.6 	(A) the individual's case manager provided information about the choice of services, 
110.7 	service providers, and location of services to help the individual make an informed 
110.8 	choice; and
110.9 	(B) the individual's foster care services are less than or equal to the cost of the 
110.10 	individual's residential care waiver services;
110.11 	(iv) an individual transitioning from a nonlicensed setting to a licensed foster care 
110.12 	or CRS, when:
110.13 	(A) the individual's case manager provided information about the choice of services, 
110.14 	service providers, and location of services to help the individual make an informed 
110.15 	choice; and
110.16 	(B) the individual's services provided in the licensed foster care or CRS are less than 
110.17 	or equal to the cost of the individual's nonlicensed setting services;
110.18 	(v) children who would otherwise reside in a hospital, nursing facility, intermediate 
110.19 	care facility for individuals with developmental disabilities, or an out-of-state placement;
110.20 	(vi) planned out-of-home respite care for individuals receiving home and 
110.21 	community-based services waivers and living with the individual's primary caregiver, 
110.22 	up to 40 new beds;
110.23 	(vii) individuals who now live on their own and require a return to a foster care 
110.24 	licensed setting within 18 months of leaving a foster care licensed setting because of 
110.25 	health and safety concerns; or
110.26 	(viii) individuals demitted from a foster care licensed setting or CRS, using the 
110.27 	process described in section 245D.10, subdivision 3 or 3a, and who are in need of a foster 
110.28 	care licensed setting or CRS, if the commissioner determines granting the exception shall 
110.29 	allow the individual to live in the individual's community of choice, up to 15 beds per year.
110.30 	(4) new foster care licenses or community residential setting licenses determined 
110.31 	to be needed by the commissioner under paragraph (b) for persons requiring hospital 
110.32 	level care; or
110.33 	(5) new foster care licenses or community residential setting licenses determined to 
110.34 	be needed by the commissioner for the transition of people from personal care assistance 
110.35 	to the home and community-based services.
111.1 	(b) The commissioner shall determine the need for newly licensed foster care 
111.2 	homes or community residential settings as defined under this subdivision. As part of the 
111.3 	determination, the commissioner shall consider the availability of foster care capacity in 
111.4 	the area in which the licensee seeks to operate, and the recommendation of the local 
111.5 	county board. The determination by the commissioner must be final. A determination of 
111.6 	need is not required for a change in ownership at the same address.
111.7 	(c) (e) When an adult resident served by the program moves out of a foster home 
111.8 	that is not the primary residence of the license holder according to section 256B.49, 
111.9 	subdivision 15, paragraph (f), or the adult community residential setting CRS, the county 
111.10 	lead agency shall immediately inform the Department of Human Services Licensing 
111.11 	Division. The department shall decrease the statewide licensed capacity for adult foster 
111.12 	care settings where the physical location is not the primary residence of the license 
111.13 	holder, or for adult community residential settings, if the voluntary changes described in 
111.14 	paragraph (e) are not sufficient to meet the savings required by reductions in licensed bed 
111.15 	capacity under Laws 2011, First Special Session chapter 9, article 7, sections 1 and 40, 
111.16 	paragraph (f), and maintain statewide long-term care residential services capacity within 
111.17 	budgetary limits. Implementation of the statewide licensed capacity reduction shall begin 
111.18 	on July 1, 2013. The commissioner shall delicense up to 128 beds by June 30, 2014, using 
111.19 	the needs determination process. Prior to any involuntary reduction of licensed capacity, 
111.20 	the commissioner shall consult with lead agencies and license holders to determine which 
111.21 	adult foster care settings, where the physical location is not the primary residence of the 
111.22 	license holder, or community residential settings, are licensed for up to five beds, but have 
111.23 	operated at less than full capacity for 12 or more months as of March 1, 2014. The settings 
111.24 	that meet these criteria must be the first to be considered for an involuntary decrease 
111.25 	in statewide licensed capacity, up to a maximum of 35 beds. If more than 35 beds are 
111.26 	identified that meet these criteria, the commissioner shall prioritize the selection of those 
111.27 	beds to be closed based on the length of time the beds have been vacant. The longer a bed 
111.28 	has been vacant, the higher priority it must be given for closure. Under this paragraph, 
111.29 	the commissioner has the authority to reduce unused licensed capacity of a current foster 
111.30 	care program, or the community residential settings, to accomplish the consolidation or 
111.31 	closure of settings. Under this paragraph, the commissioner has the authority to manage 
111.32 	statewide capacity, including adjusting the capacity available to each county and adjusting 
111.33 	statewide available capacity, to meet the statewide needs identified through the process in 
111.34 	paragraph (e). A decreased licensed capacity according to this paragraph is not subject to 
111.35 	appeal under this chapter.
112.1 	(d) Residential settings that would otherwise be subject to the decreased license 
112.2 	capacity established in paragraph (c) shall be exempt if the license holder's beds are 
112.3 	occupied by residents whose primary diagnosis is mental illness and the license holder is 
112.4 	certified under the requirements in subdivision 6a or section 245D.33.
112.5 	(e) A resource need determination process, managed at the state level, using the 
112.6 	available reports required by section 144A.351, and other data and information shall 
112.7 	be used to determine where the reduced capacity required under paragraph (c) will be 
112.8 	implemented. The commissioner shall consult with the stakeholders described in section 
112.9 	144A.351, and employ a variety of methods to improve the state's capacity to meet 
112.10 	long-term care service needs within budgetary limits, including seeking proposals from 
112.11 	service providers or lead agencies to change service type, capacity, or location to improve 
112.12 	services, increase the independence of residents, and better meet needs identified by the 
112.13 	long-term care services reports and statewide data and information. By February 1, 2013, 
112.14 	and August 1, 2014, and each following year, the commissioner shall provide information 
112.15 	and data on the overall capacity of licensed long-term care services, actions taken under 
112.16 	this subdivision to manage statewide long-term care services and supports resources, and 
112.17 	any recommendations for change to the legislative committees with jurisdiction over 
112.18 	health and human services budget.
112.19 	(f) At the time of application and reapplication for licensure, the applicant and the 
112.20 	license holder that are subject to the moratorium or an exclusion established in paragraph 
112.21 	(a) are required to inform the commissioner whether the physical location where the foster 
112.22 	care will be provided is or will be the primary residence of the license holder for the entire 
112.23 	period of licensure. If the primary residence of the applicant or license holder changes, the 
112.24 	applicant or license holder must notify the commissioner immediately. The commissioner 
112.25 	shall print on the foster care license certificate whether or not the physical location is the 
112.26 	primary residence of the license holder.
112.27 	(g) Consistent with the requirements of section 256B.4915, the commissioner has 
112.28 	the authority to manage statewide capacity of licensed corporate foster care and CRSs, 
112.29 	including adjusting the capacity within a geographic region or consolidating or reducing 
112.30 	foster care or CRS licensed beds to meet the statewide needs identified through the 
112.31 	process in section 256B.4915.
112.32 	(h) The commissioner must provide written notice of the reduction of licensed beds 
112.33 	to a license holder whose corporate foster care or CRS beds were decreased. Notice 
112.34 	must be given by certified mail or personal service, state the reason the licensed beds 
112.35 	were reduced, and inform the license holder of the right to reconsideration. The request 
112.36 	for reconsideration from the license holder must be submitted in writing and, if mailed, 
113.1 	postmarked and sent to the commissioner within 20 calendar days after the license holder 
113.2 	received the notice of reduction in licensed beds.
113.3 	(g) License holders of foster care homes identified under paragraph (f) that are not 
113.4 	the primary residence of the license holder and that also provide services in the foster care 
113.5 	home that are covered by a federally approved home and community-based services 
113.6 	waiver, as authorized under section 256B.0915, 256B.092, or 256B.49, must inform the 
113.7 	human services licensing division that the license holder provides or intends to provide  
113.8 	these waiver-funded services.

113.9 	Sec. 4. Minnesota Statutes 2015 Supplement, section 245D.03, subdivision 1, is 
113.10 	amended to read:
113.11 		Subdivision 1.Applicability.  (a) The commissioner shall regulate the provision of 
113.12 	home and community-based services to persons with disabilities and persons age 65 and 
113.13 	older pursuant to this chapter. The licensing standards in this chapter govern the provision 
113.14 	of basic support services and intensive support services.
113.15 	(b) Basic support services provide the level of assistance, supervision, and care that 
113.16 	is necessary to ensure the health and welfare of the person and do not include services that 
113.17 	are specifically directed toward the training, treatment, habilitation, or rehabilitation of 
113.18 	the person. Basic support services include:
113.19 	(1) in-home and out-of-home respite care services as defined in section 245A.02, 
113.20 	subdivision 15, and under the brain injury, community alternative care, community access 
113.21 	for disability inclusion, developmental disability, and elderly waiver plans, excluding 
113.22 	out-of-home respite care provided to children in a family child foster care home licensed 
113.23 	under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care license 
113.24 	holder complies with the requirements under section 245D.06, subdivisions 5, 6, 7, and 
113.25 	8, or successor provisions; and section 245D.061 or successor provisions, which must 
113.26 	be stipulated in the statement of intended use required under Minnesota Rules, part 
113.27 	2960.3000, subpart 4;
113.28 	(2) adult companion services as defined under the brain injury, community access 
113.29 	for disability inclusion, and elderly waiver plans, excluding adult companion services 
113.30 	provided under the Corporation for National and Community Services Service, Senior 
113.31 	Companion Program established under the Domestic Volunteer Service Act of 1973, Public 
113.32 	Law 98-288 Code of Federal Regulations, title 45, subpart B, chapter 25, part 2551 et seq.;
113.33 	(3) personal support as defined under the developmental disability waiver plan;
113.34 	(4) 24-hour emergency assistance, personal emergency response as defined under 
113.35 	the community access for disability inclusion and developmental disability waiver plans;
114.1 	(5) night supervision services as defined under the brain injury waiver plan; and
114.2 	(6) homemaker services as defined under the community access for disability 
114.3 	inclusion, brain injury, community alternative care, developmental disability, and elderly 
114.4 	waiver plans, excluding providers licensed by the Department of Health under chapter 
114.5 	144A and those providers providing cleaning services only.; and
114.6 	(7) individual community living support under section 256B.0915, subdivision 3j.
114.7 	(c) Intensive support services provide assistance, supervision, and care that is 
114.8 	necessary to ensure the health and welfare of the person and services specifically directed 
114.9 	toward the training, habilitation, or rehabilitation of the person. Intensive support services 
114.10 	include:
114.11 	(1) intervention services, including:
114.12 	(i) behavioral support services as defined under the brain injury and community 
114.13 	access for disability inclusion waiver plans;
114.14 	(ii) in-home or out-of-home crisis respite services as defined under the developmental 
114.15 	disability waiver plan; and
114.16 	(iii) specialist services as defined under the current developmental disability waiver 
114.17 	plan;
114.18 	(2) in-home support services, including:
114.19 	(i) in-home family support and supported living services as defined under the 
114.20 	developmental disability waiver plan;
114.21 	(ii) independent living services training as defined under the brain injury and 
114.22 	community access for disability inclusion waiver plans; and
114.23 	(iii) semi-independent living services;
114.24 	(3) residential supports and services, including:
114.25 	(i) supported living services as defined under the developmental disability waiver 
114.26 	plan provided in a family or corporate child foster care residence, a family adult foster 
114.27 	care residence, a community residential setting, or a supervised living facility;
114.28 	(ii) foster care services as defined in the brain injury, community alternative care, 
114.29 	and community access for disability inclusion waiver plans provided in a family or 
114.30 	corporate child foster care residence, a family adult foster care residence, or a community 
114.31 	residential setting; and
114.32 	(iii) residential services provided to more than four persons with developmental 
114.33 	disabilities in a supervised living facility, including ICFs/DD;
114.34 	(4) day services, including:
114.35 	(i) structured day services as defined under the brain injury waiver plan;
115.1 	(ii) day training and habilitation services under sections 252.41 to 252.46, and as 
115.2 	defined under the developmental disability waiver plan; and
115.3 	(iii) prevocational services as defined under the brain injury and community access 
115.4 	for disability inclusion waiver plans; and
115.5 	(5) supported employment as defined under the brain injury, developmental 
115.6 	disability, and community access for disability inclusion waiver plans.

115.7 	EFFECTIVE DATE. This section is effective July 1, 2016.

115.8 	Sec. 5. Minnesota Statutes 2015 Supplement, section 256B.441, subdivision 30, 
115.9 	is amended to read:
115.10 		Subd. 30.Median total care-related cost per diem and other operating per diem 
115.11 	determined. (a) The commissioner shall determine the median total care-related per 
115.12 	diem to be used in subdivision 50 and the median other operating per diem to be used in 
115.13 	subdivision 51 using the cost reports from nursing facilities in Anoka, Carver, Dakota, 
115.14 	Hennepin, Ramsey, Scott, and Washington Counties.
115.15 	(b) The median total care-related per diem shall be equal to the median direct care 
115.16 	cost total care-related per diem for a RUG's weight of 1.00 for facilities located in the 
115.17 	counties listed in paragraph (a).
115.18 	(c) The median other operating per diem shall be equal to the median other 
115.19 	operating per diem for facilities located in the counties listed in paragraph (a). The other 
115.20 	operating per diem shall be the sum of each facility's administrative costs, dietary costs, 
115.21 	housekeeping costs, laundry costs, and maintenance and plant operations costs divided 
115.22 	by each facility's resident days.

115.23 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2016.

115.24 	Sec. 6. Minnesota Statutes 2014, section 256B.4912, is amended by adding a 
115.25 	subdivision to read:
115.26 		Subd. 11.Annual data submission. (a) In a manner determined by the 
115.27 	commissioner, home and community-based services waiver providers enrolled under this 
115.28 	section shall submit data to the commissioner on the following:
115.29 	(1) wages of workers;
115.30 	(2) benefits paid;
115.31 	(3) staff retention rates;
115.32 	(4) amount of overtime paid;
115.33 	(5) amount of travel time paid; 
116.1 	(6) vacancy rates; and
116.2 	(7) other data elements determined by the commissioner.
116.3 	(b) The commissioner may adjust reporting requirements for some individual 
116.4 	self-employed workers.
116.5 	(c) This subdivision also applies to providers of personal care assistance services 
116.6 	under section 256B.0625, subdivision 19a; community first services and supports under 
116.7 	section 256B.85; consumer support grants under section 256.476; nursing services and 
116.8 	home health services under section 256B.0625, subdivision 6a; home care nursing 
116.9 	services under section 256B.0625, subdivision 7; intermediate care facilities for persons 
116.10 	with developmental disabilities under section 256B.501; and day training and habilitation 
116.11 	providers serving residents of intermediate care facilities for persons with developmental 
116.12 	disabilities under section 256B.501.
116.13 	(d) This data shall be submitted annually each calendar year on a date specified 
116.14 	by the commissioner. The commissioner shall give providers at least 30 calendar days 
116.15 	to submit the data. Failure to submit the data requested may result in delays to medical 
116.16 	assistance reimbursement.
116.17 	(e) Individually identifiable data submitted to the commissioner in this section are 
116.18 	considered private data on individuals, as defined by section 13.02, subdivision 12.
116.19 	(f) The commissioner shall analyze data annually for workforce assessments and its 
116.20 	impact on service access.

116.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

116.22 	Sec. 7. Minnesota Statutes 2015 Supplement, section 256B.4914, subdivision 10, 
116.23 	is amended to read:
116.24 		Subd. 10.Updating payment values and additional information. (a) From 
116.25 	January 1, 2014, through December 31, 2017, the commissioner shall develop and 
116.26 	implement uniform procedures to refine terms and adjust values used to calculate payment 
116.27 	rates in this section.
116.28 	(b) No later than July 1, 2014, the commissioner shall, within available resources, 
116.29 	begin to conduct research and gather data and information from existing state systems or 
116.30 	other outside sources on the following items:
116.31 	(1) differences in the underlying cost to provide services and care across the state; and
116.32 	(2) mileage, vehicle type, lift requirements, incidents of individual and shared rides, 
116.33 	and units of transportation for all day services, which must be collected from providers 
116.34 	using the rate management worksheet and entered into the rates management system; and
117.1 	(3) the distinct underlying costs for services provided by a license holder under 
117.2 	sections 245D.05, 245D.06, 245D.07, 245D.071, 245D.081, and 245D.09, and for services 
117.3 	provided by a license holder certified under section 245D.33.
117.4 	(c) Using a statistically valid set of rates management system data, the commissioner, 
117.5 	in consultation with stakeholders, shall analyze for each service the average difference 
117.6 	in the rate on December 31, 2013, and the framework rate at the individual, provider, 
117.7 	lead agency, and state levels. The commissioner shall issue semiannual reports to the 
117.8 	stakeholders on the difference in rates by service and by county lead agency during the 
117.9 	banding period under section 256B.4913, subdivision 4a. The commissioner shall issue 
117.10 	the first report by October 1, 2014.
117.11 	(d) No later than July 1, 2014, the commissioner, in consultation with stakeholders, 
117.12 	shall begin the review and evaluation of the following values already in subdivisions 6 to 
117.13 	9, or issues that impact all services, including, but not limited to:
117.14 	(1) values for transportation rates for day services;
117.15 	(2) values for transportation rates in residential services;
117.16 	(3) values for services where monitoring technology replaces staff time;
117.17 	(4) values for indirect services;
117.18 	(5) values for nursing;
117.19 	(6) component values for independent living skills;
117.20 	(7) component values for family foster care that reflect licensing requirements;
117.21 	(8) adjustments to other components to replace the budget neutrality factor;
117.22 	(9) remote monitoring technology for nonresidential services;
117.23 	(10) values for basic and intensive services in residential services;
117.24 	(11) values for the facility use rate in day services, and the weightings used in the 
117.25 	day service ratios and adjustments to those weightings;
117.26 	(12) values for workers' compensation as part of employee-related expenses;
117.27 	(13) values for unemployment insurance as part of employee-related expenses;
117.28 	(14) a component value to reflect costs for individuals with rates previously adjusted 
117.29 	for the inclusion of group residential housing rate 3 costs, only for any individual enrolled 
117.30 	as of December 31, 2013; and
117.31 	(15) any changes in state or federal law with an impact on the underlying cost of 
117.32 	providing home and community-based services.
117.33 	(e) The commissioner shall report to the chairs and the ranking minority members of 
117.34 	the legislative committees and divisions with jurisdiction over health and human services 
117.35 	policy and finance with the information and data gathered under paragraphs (b) to (d) 
117.36 	on the following dates:
118.1 	(1) January 15, 2015, with preliminary results and data;
118.2 	(2) January 15, 2016, with a status implementation update, and additional data 
118.3 	and summary information;
118.4 	(3) January 15, 2017, with the full report; and
118.5 	(4) January 15, 2019, with another full report, and a full report once every four 
118.6 	years thereafter.
118.7 	(f) Based on the commissioner's evaluation of the information and data collected in 
118.8 	paragraphs (b) to (d), the commissioner shall make recommendations to the legislature by 
118.9 	January 15, 2015, to address any issues identified during the first year of implementation. 
118.10 	After January 15, 2015, the commissioner may make recommendations to the legislature 
118.11 	to address potential issues.
118.12 	(g) The commissioner shall implement a regional adjustment factor to all rate 
118.13 	calculations in subdivisions 6 to 9, effective no later than January 1, 2015. Prior to 
118.14 	implementation, the commissioner shall consult with stakeholders on the methodology to 
118.15 	calculate the adjustment.
118.16 	(h) The commissioner shall provide a public notice via LISTSERV in October of 
118.17 	each year beginning October 1, 2014, containing information detailing legislatively 
118.18 	approved changes in:
118.19 	(1) calculation values including derived wage rates and related employee and 
118.20 	administrative factors;
118.21 	(2) service utilization;
118.22 	(3) county and tribal lead agency allocation changes; and
118.23 	(4) information on adjustments made to calculation values and the timing of those 
118.24 	adjustments.
118.25 	The information in this notice must be effective January 1 of the following year.
118.26 	(i) No later than July 1, 2016, the commissioner shall develop and implement, in 
118.27 	consultation with stakeholders, a methodology sufficient to determine the shared staffing 
118.28 	levels necessary to meet, at a minimum, health and welfare needs of individuals who 
118.29 	will be living together in shared residential settings, and the required shared staffing 
118.30 	activities described in subdivision 2, paragraph (l). This determination methodology must 
118.31 	ensure staffing levels are adaptable to meet the needs and desired outcomes for current and 
118.32 	prospective residents in shared residential settings.
118.33 	(j) When the available shared staffing hours in a residential setting are insufficient to 
118.34 	meet the needs of an individual who enrolled in residential services after January 1, 2014, 
118.35 	or insufficient to meet the needs of an individual with a service agreement adjustment 
119.1 	described in section 256B.4913, subdivision 4a, paragraph (f), then individual staffing 
119.2 	hours shall be used.

119.3 	Sec. 8. Minnesota Statutes 2014, section 256B.4914, subdivision 11, is amended to read:
119.4 		Subd. 11.Payment implementation. Upon implementation of the payment 
119.5 	methodologies under this section, those payment rates supersede rates established in 
119.6 	county lead agency contracts for recipients receiving waiver services under section 
119.7 	256B.092 or 256B.49.

119.8 	Sec. 9. Minnesota Statutes 2015 Supplement, section 256B.4914, subdivision 14, 
119.9 	is amended to read:
119.10 		Subd. 14.Exceptions. (a) In a format prescribed by the commissioner, lead 
119.11 	agencies must identify individuals with exceptional needs that cannot be met under the 
119.12 	disability waiver rate system. The commissioner shall use that information to evaluate 
119.13 	and, if necessary, approve an alternative payment rate for those individuals. Whether 
119.14 	granted, denied, or modified, the commissioner shall respond to all exception requests in 
119.15 	writing. The commissioner shall include in the written response the basis for the action 
119.16 	and provide notification of the right to appeal under paragraph (h).
119.17 	(b) Lead agencies must act on an exception request within 30 days and notify the 
119.18 	initiator of the request of their recommendation in writing. A lead agency shall submit all 
119.19 	exception requests along with its recommendation to the commissioner.
119.20 	(c) An application for a rate exception may be submitted for the following criteria:
119.21 	(1) an individual has service needs that cannot be met through additional units 
119.22 	of service;
119.23 	(2) an individual's rate determined under subdivisions 6, 7, 8, and 9 is so insufficient 
119.24 	that it has resulted in an individual receiving a notice of discharge from the individual's 
119.25 	provider; or
119.26 	(3) an individual's service needs, including behavioral changes, require a level of 
119.27 	service which necessitates a change in provider or which requires the current provider to 
119.28 	propose service changes beyond those currently authorized.; or
119.29 	(4) an individual's service needs cannot be met through a weighted county average 
119.30 	rate as defined in 256B.4913, subdivision 4a.
119.31 	(d) Exception requests must include the following information:
119.32 	(1) the service needs required by each individual that are not accounted for in 
119.33 	subdivisions 6, 7, 8, and 9;
120.1 	(2) the service rate requested and the difference from the rate determined in 
120.2 	subdivisions 6, 7, 8, and 9;
120.3 	(3) a basis for the underlying costs used for the rate exception and any accompanying 
120.4 	documentation; and
120.5 	(4) any contingencies for approval.
120.6 	(e) Approved rate exceptions shall be managed within lead agency allocations under 
120.7 	sections 256B.092 and 256B.49.
120.8 	(f) Individual disability waiver recipients, an interested party, or the license holder 
120.9 	that would receive the rate exception increase may request that a lead agency submit an 
120.10 	exception request. A lead agency that denies such a request shall notify the individual 
120.11 	waiver recipient, interested party, or license holder of its decision and the reasons for 
120.12 	denying the request in writing no later than 30 days after the request has been made and 
120.13 	shall submit its denial to the commissioner in accordance with paragraph (b). The reasons 
120.14 	for the denial must be based on the failure to meet the criteria in paragraph (c).
120.15 	(g) The commissioner shall determine whether to approve or deny an exception 
120.16 	request no more than 30 days after receiving the request. If the commissioner denies the 
120.17 	request, the commissioner shall notify the lead agency and the individual disability waiver 
120.18 	recipient, the interested party, and the license holder in writing of the reasons for the denial.
120.19 	(h) The individual disability waiver recipient may appeal any denial of an exception 
120.20 	request by either the lead agency or the commissioner, pursuant to sections 256.045 and 
120.21 	256.0451. When the denial of an exception request results in the proposed demission of a 
120.22 	waiver recipient from a residential or day habilitation program, the commissioner shall 
120.23 	issue a temporary stay of demission, when requested by the disability waiver recipient, 
120.24 	consistent with the provisions of section 256.045, subdivisions 4a and 6, paragraph (c). 
120.25 	The temporary stay shall remain in effect until the lead agency can provide an informed 
120.26 	choice of appropriate, alternative services to the disability waiver.
120.27 	(i) Providers may petition lead agencies to update values that were entered 
120.28 	incorrectly or erroneously into the rate management system, based on past service level 
120.29 	discussions and determination in subdivision 4, without applying for a rate exception.
120.30 	(j) The starting date for the rate exception will be the later of the date of the 
120.31 	recipient's change in support or the date of the request to the lead agency for an exception.
120.32 	(k) The commissioner shall track all exception requests received and their 
120.33 	dispositions. The commissioner shall issue quarterly public exceptions statistical reports, 
120.34 	including the number of exception requests received and the numbers granted, denied, 
120.35 	withdrawn, and pending. The report shall include the average amount of time required to 
120.36 	process exceptions.
121.1 	(l) No later than January 15, 2016, the commissioner shall provide research 
121.2 	findings on the estimated fiscal impact, the primary cost drivers, and common population 
121.3 	characteristics of recipients with needs that cannot be met by the framework rates.
121.4 	(m) No later than July 1, 2016, the commissioner shall develop and implement, 
121.5 	in consultation with stakeholders, a process to determine eligibility for rate exceptions 
121.6 	for individuals with rates determined under the methodology in section 256B.4913, 
121.7 	subdivision 4a. Determination of eligibility for an exception will occur as annual service 
121.8 	renewals are completed.
121.9 	(n) Approved rate exceptions will be implemented at such time that the individual's 
121.10 	rate is no longer banded and remain in effect in all cases until an individual's needs change 
121.11 	as defined in paragraph (c).

121.12 	Sec. 10. Minnesota Statutes 2015 Supplement, section 256B.4914, subdivision 15, 
121.13 	is amended to read:
121.14 		Subd. 15.County or tribal Lead agency allocations. (a) Upon implementation of 
121.15 	the disability waiver rates management system on January 1, 2014, the commissioner shall 
121.16 	establish a method of tracking and reporting the fiscal impact of the disability waiver rates 
121.17 	management system on individual lead agencies.
121.18 	(b) Beginning January 1, 2014, the commissioner shall make annual adjustments to 
121.19 	lead agencies' home and community-based waivered service budget allocations to adjust 
121.20 	for rate differences and the resulting impact on county lead agency allocations upon 
121.21 	implementation of the disability waiver rates system.
121.22 	(c) Lead agencies exceeding their allocations shall be subject to the provisions under 
121.23 	sections 256B.0916, subdivision 11, and 256B.49, subdivision 26.

121.24 	Sec. 11. [256B.4915] MANAGEMENT OF STATEWIDE CORPORATE FOSTER 
121.25 	CARE AND COMMUNITY RESIDENTIAL LICENSED SETTING CAPACITY.
121.26 		Subdivision 1.Recommendations. (a) The commissioner shall consult with 
121.27 	stakeholders including lead agencies, recipients of long-term services and supports, 
121.28 	advocates, and service providers, to develop recommendations to improve the state's 
121.29 	capacity to meet long-term care services and supports needs within budgetary limits. The 
121.30 	commissioner may request proposals from service providers and lead agencies for:
121.31 	(1) change of service type, capacity, or location;
121.32 	(2) how to increase the independence of individuals receiving services; and
121.33 	(3) how to meet the needs identified by the long-term care services and supports 
121.34 	reports under section 144A.351 and related statewide data and information.
122.1 	(b) By August 15 of each year, the commissioner shall provide information and 
122.2 	recommendations to the legislative committees with jurisdiction over health and human 
122.3 	services policy and finance on:
122.4 	(1) need determination data;
122.5 	(2) the overall statewide capacity of licensed home and community-based services 
122.6 	and settings;
122.7 	(3) how the overall statewide capacity of licensed home and community-based 
122.8 	services and settings impacts the state's ability to support individuals in the community; and
122.9 	(4) actions taken to manage statewide capacity of licensed home and 
122.10 	community-based services and settings, including the number and location of licensed 
122.11 	corporate foster care and community residential settings.
122.12 		Subd. 2.Reporting requirements. The commissioner shall provide 
122.13 	recommendations on capacity improvement processes by February 15, 2018, to the 
122.14 	legislative committees with jurisdiction over health and human services policy and finance.

122.15 	Sec. 12. Minnesota Statutes 2014, section 256B.493, subdivision 3, is amended to read:
122.16 		Subd. 3.Application Voluntary closure process. (a) The commissioner shall 
122.17 	establish a process for the application, review, and approval of proposals from license 
122.18 	holders for the closure of adult foster care settings.
122.19 	(b) When an application for a planned voluntary closure rate adjustment is submitted, 
122.20 	the license holder shall provide written notification within five working days to the lead 
122.21 	agencies responsible for authorizing the licensed services for the residents of the affected 
122.22 	adult foster care settings. This notification shall be deemed confidential until the license 
122.23 	holder has received approval of the application by the commissioner.

122.24 	Sec. 13. Minnesota Statutes 2014, section 256B.493, subdivision 4, is amended to read:
122.25 		Subd. 4.Review and approval process. (a) To be considered for approval, an 
122.26 	application must include:
122.27 	(1) a description of the proposed closure plan, which must identify the home or homes 
122.28 	and occupied beds for which a planned voluntary closure rate adjustment is requested;
122.29 	(2) the proposed timetable for any proposed closure, including the proposed dates 
122.30 	for notification to residents and the affected lead agencies, commencement of closure, 
122.31 	and completion of closure;
122.32 	(3) the proposed relocation plan jointly developed by the counties of financial 
122.33 	responsibility, the residents and their legal representatives, if any, who wish to continue to 
123.1 	receive services from the provider, and the providers for current residents of any adult 
123.2 	foster care home designated for closure; and
123.3 	(4) documentation in a format approved by the commissioner that all the adult foster 
123.4 	care homes receiving a planned closure rate adjustment under the plan have accepted joint 
123.5 	and several liability for recovery of overpayments under section 256B.0641, subdivision 
123.6 	2, for the facilities designated for closure under this plan.
123.7 	(b) In reviewing and approving closure proposals, the commissioner shall give first 
123.8 	priority to proposals that:
123.9 	(1) target counties and geographic areas which have:
123.10 	(i) need for other types of services;
123.11 	(ii) need for specialized services;
123.12 	(iii) higher than average per capita use of foster care settings where the license 
123.13 	holder does not reside; or
123.14 	(iv) residents not living in the geographic area of their choice;
123.15 	(2) demonstrate savings of medical assistance expenditures; and
123.16 	(3) demonstrate that alternative services are based on the recipient's choice of 
123.17 	provider and are consistent with federal law, state law, and federally approved waiver plans.
123.18 	The commissioner shall also consider any information provided by service 
123.19 	recipients, their legal representatives, family members, or the lead agency on the impact of 
123.20 	the planned closure on the recipients and the services they need.
123.21 	(c) The commissioner shall select proposals that best meet the criteria established in 
123.22 	this subdivision for planned closure of adult foster care settings. The commissioner shall 
123.23 	notify license holders of the selections approved by the commissioner.
123.24 	(d) For each proposal approved by the commissioner, a contract must be established 
123.25 	between the commissioner, the counties of financial responsibility, and the participating 
123.26 	license holder.

123.27 	Sec. 14. PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY 
123.28 	1, 2016.
 123.29 	(a) The commissioner of human services shall increase reimbursement rates, grants, 
123.30 	allocations, individual limits, and rate limits, as applicable, by 2.72 percent for the rate 
123.31 	period beginning July 1, 2016, for services rendered on or after that date. County or tribal 
123.32 	contracts for services specified in this section must be amended to pass through with these 
123.33 	rate increases within 60 days of the effective date.
123.34 	(b) The rate changes described in this section must be provided to:
124.1 	(1) the following services within the home and community-based waiver for persons 
124.2 	with developmental disabilities under Minnesota Statutes, section 256B.092: extended 
124.3 	personal care, personal support, chore, respite care services except for crisis respite 
124.4 	services, homemaker cleaning services, and consumer-directed community supports 
124.5 	budgets;
124.6 	(2) the following services within the community access for disability inclusion 
124.7 	waiver under Minnesota Statutes, section 256B.49: extended personal care, chore, respite 
124.8 	care services, homemaker cleaning services, and consumer-directed community supports 
124.9 	budgets;
124.10 	(3) the following services within the community alternative care waiver under 
124.11 	Minnesota Statutes, section 256B.49: extended personal care, chore, respite care services, 
124.12 	homemaker cleaning services, and consumer-directed community supports budgets;
124.13 	(4) the following services within the brain injury waiver under Minnesota Statutes, 
124.14 	section 256B.49: extended personal care, chore, respite care services, homemaker 
124.15 	cleaning services, and consumer-directed community supports budgets;
124.16 	(5) the following services within the elderly waiver under Minnesota Statutes, 
124.17 	section 256B.0915: extended personal care, companion, chore, respite care services, 
124.18 	homemaker cleaning services, and consumer-directed community supports budgets;
124.19 	(6) the following services within the alternative care program under Minnesota 
124.20 	Statutes, section 256B.0913: personal care, companion, chore, respite care services, 
124.21 	homemaker cleaning services, and consumer-directed community supports budgets;
124.22 	(7) personal care services and qualified professional supervision of personal care 
124.23 	services under Minnesota Statutes, section 256B.0625, subdivision 6a or 19a; and
124.24 	(8) consumer support grants under Minnesota Statutes, section 256.476.
124.25 	(c) A managed care plan or county-based purchasing plan receiving state payments 
124.26 	for the services in paragraph (b) must include the increases in paragraph (a) in payments 
124.27 	to providers. To implement the rate increase in this section, capitation rates paid by the 
124.28 	commissioner to managed care organizations under Minnesota Statutes, section 256B.69, 
124.29 	shall reflect a 2.72 percent increase for the specified services provided on or after July 
124.30 	1, 2016.
124.31 	(d) Counties and tribes shall increase the budget for each recipient of 
124.32 	consumer-directed community supports by the amounts in paragraph (a) on the effective 
124.33 	dates in paragraph (a).
124.34 	(e) To implement the provisions of this section, the commissioner shall increase 
124.35 	applicable service rates in the disability waiver payment system authorized in Minnesota 
124.36 	Statutes, sections 256B.4913 and 256B.4914.
125.1 	(f) A provider that receives a rate adjustment under paragraph (a) shall use 90 
125.2 	percent of the additional revenue to increase compensation-related costs for employees 
125.3 	directly employed by the program on or after July 1, 2016, except:
125.4 	(1) persons employed in the central office of a corporation or entity that has an 
125.5 	ownership interest in the provider or exercises control over the provider; and
125.6 	(2) persons paid by the provider under a management contract.
125.7 	(g) Compensation-related costs include:
125.8 	(1) wages and salaries, including overtime and travel time;
125.9 	(2) the employer's share of FICA taxes, Medicare taxes, state and federal 
125.10 	unemployment taxes, workers' compensation, and mileage reimbursement;
125.11 	(3) the employer's share of health and dental insurance, life insurance, disability 
125.12 	insurance, long-term care insurance, uniform allowance, pensions, and contributions to 
125.13 	employee retirement accounts; and
125.14 	(4) other employee benefits provided, such as training of employees, as specified in 
125.15 	the distribution plan and required under paragraph (i) and approved by the commissioner.
125.16 	(h) Nothing in this subdivision prevents a provider as an employer from allocating the 
125.17 	increase in revenues across the eligible compensation-related costs listed in paragraph (g).
125.18 	(i) For a provider that has employees who are represented by an exclusive bargaining 
125.19 	representative, the provider shall obtain a letter of acceptance of the distribution plan 
125.20 	required under paragraph (j), for the members of the bargaining unit, signed by the 
125.21 	exclusive bargaining agent. Upon receipt of the letter of acceptance, the provider shall be 
125.22 	deemed to have met all the requirements of this section for the members of the bargaining 
125.23 	unit. Upon request, the provider shall produce a letter of acceptance for the commissioner.
125.24 	(j) A provider that receives a rate adjustment under paragraph (a), that is subject to 
125.25 	paragraph (f), shall prepare and, upon request, submit to the commissioner a distribution 
125.26 	plan that specifies the amount of money that is subject to the requirements of paragraph (f) 
125.27 	the provider expects to receive, including the amount of money that will be distributed 
125.28 	to increase compensation for employees. The distribution plan must also include the 
125.29 	provider's policy for scheduling overtime. The provider's policy must not limit the 
125.30 	scheduling of overtime hours where an individual's service needs are unmet without a 
125.31 	worker exceeding 40 hours per week of work. The provider's overtime scheduling policy 
125.32 	must provide for a process that reliably and expeditiously provides services to recipients.
125.33 	(k) Within six months of the effective date of the rate adjustment, the provider shall 
125.34 	post the distribution plan required under paragraph (j) for a period of at least six weeks in 
125.35 	an area of the provider's operation to which all eligible employees have access and shall 
125.36 	provide instructions for employees who do not believe they received the wage and other 
126.1 	compensation-related increases specified in the distribution plan. The instructions must 
126.2 	include a mailing address, e-mail address, and telephone number that the employees may 
126.3 	use to contact the commissioner or the commissioner's representative.

126.4 	EFFECTIVE DATE. This section is effective July 1, 2016.

126.5 	Sec. 15. RESIDENTIAL CARE VOLUNTARY CLOSURE RATE 
126.6 	ADJUSTMENT.
 126.7 		Subdivision 1.Applicability. The residential care voluntary closure rate adjustment 
126.8 	is available to an enrolled provider registered under Minnesota Statutes, section 157.17, 
126.9 	who delivers the service of residential care through the home and community-based 
126.10 	services waivers under Minnesota Statutes, sections 256B.0915, 256B.092, and 256B.49.
126.11 		Subd. 2.Voluntary closure process. (a) The commissioner shall establish a 
126.12 	process for the submission, review, and approval of proposals from an enrolled provider 
126.13 	for voluntarily closing a residential care service setting.
126.14 	(b) When a proposal for a planned closure rate adjustment is submitted, the enrolled 
126.15 	provider shall provide written notification within five business days to the lead agencies 
126.16 	responsible for authorizing the waiver services for the affected residents. This notification 
126.17 	shall be confidential until the enrolled provider has received approval of the proposal by 
126.18 	the commissioner.
126.19 		Subd. 3.Review and approval process. (a) To be considered, a proposal must 
126.20 	include:
126.21 	(1) a description of a closure plan that identifies the residential care service settings 
126.22 	registered under Minnesota Statutes, section 157.17, for which a planned closure rate 
126.23 	adjustment is requested;
126.24 	(2) a timetable for closure, including the dates notifying the affected residents and 
126.25 	lead agencies, commencement of closure, and completion of closure;
126.26 	(3) a description for each resident and each resident's legal representative that 
126.27 	describes the home and community-based services waivers of the affected resident, case 
126.28 	manager or care coordinator, and lead agency responsible for authorizing services for the 
126.29 	resident;
126.30 	(4) a relocation plan for the resident jointly developed by the lead agency and the 
126.31 	resident, and the resident's legal representative, if any; and
126.32 	(5) documentation in a format determined by the commissioner that all residential 
126.33 	care service settings receiving a planned closure rate adjustment have accepted joint 
126.34 	and several liability for recovery of overpayments under Minnesota Statutes, section 
126.35 	256B.0641, subdivision 2, for the facilities designated for closure.
127.1 	(b) The commissioner shall approve proposals that:
127.2 	(1) provide sufficient time for the resident to transition to new services;
127.3 	(2) identify the types of services and supports the resident needs; and
127.4 	(3) demonstrate that alternative services are based on the resident's choice of provider 
127.5 	and are consistent with federal law, state law, and federally approved waiver plans.
127.6 	(c) The commissioner shall notify enrolled providers whether the proposal is 
127.7 	approved or disapproved.
127.8 		Subd. 4.Notification of approved proposal. (a) When the residential care provider 
127.9 	is notified that the proposal was approved, the provider shall provide written notification 
127.10 	within five business days to:
127.11 	(1) lead agencies responsible for authorizing the residential care waiver services for 
127.12 	the affected residents; and
127.13 	(2) residents, any legal representatives, and family members involved.
127.14 	(b) Notification must occur at least 45 calendar days prior to the implementation of 
127.15 	the proposal and adjustment to the service rate.
127.16 		Subd. 5.Adjustment to rates. (a) For purposes of this section, the commissioner 
127.17 	shall establish enhanced medical assistance payment rates under Minnesota Statutes, 
127.18 	sections 256B.0915 or 256B.4913 and 256B.4914, to facilitate an orderly transition from 
127.19 	residential care service settings to other community-based settings.
127.20 	(b) The enhanced payment rate shall be effective the day after the first resident 
127.21 	moved until the day the last resident moved, not to exceed six months. The commissioner 
127.22 	may approve an exception to the monthly cost limits for elderly waiver participants after a 
127.23 	provider is approved for the voluntary closure rate.
127.24 	(c) The enhanced payment rate may be approved with an effective date no earlier 
127.25 	than July 1, 2017, and not to exceed June 30, 2018.

127.26 	EFFECTIVE DATE. This section is effective upon federal approval to discontinue 
127.27 	the home and community-based services waivers for service and residential care and 
127.28 	expires on June 30, 2018. The commissioner of human services shall notify the revisor of 
127.29 	statutes once federal approval is obtained.

127.30 	Sec. 16.  REPEALER.
 127.31 	Minnesota Statutes 2014, section 256B.493, subdivisions 1 and 2, are repealed.

128.1 	ARTICLE 4
128.2 	MENTAL HEALTH

128.3 	Section 1. Minnesota Statutes 2015 Supplement, section 245.735, subdivision 3, 
128.4 	is amended to read:
128.5 		Subd. 3.Reform projects Certified community behavioral health clinics 
128.6 	(CCBHCs). (a) The commissioner shall establish standards for a state certification 
128.7 	of clinics as process for certified community behavioral health clinics, in accordance 
128.8 	(CCBHCs) to be eligible for the prospective payment system in paragraph (f). CCBHCs 
128.9 	must:
128.10 	(1) comply with the CCBHC criteria published on or before September 1, 2015, by 
128.11 	the United States Department of Health and Human Services. Certification standards 
128.12 	established by the commissioner shall require that:;
128.13 	(1) (2) employ or contract for clinic staff who have backgrounds in diverse 
128.14 	disciplines, include including licensed mental health professionals, and staff who are 
128.15 	culturally and linguistically trained to serve the needs of the clinic's patient population;
128.16 	(2) (3) ensure that clinic services are available and accessible to patients of all ages 
128.17 	and genders and that crisis management services are available 24 hours per day;
128.18 	(3) (4) establish fees for clinic services are established for non-medical assistance 
128.19 	patients using a sliding fee scale and to ensure that services to patients are not denied or 
128.20 	limited due to a patient's inability to pay for services;
128.21 	(4) clinics provide coordination of care across settings and providers to ensure 
128.22 	seamless transitions for patients across the full spectrum of health services, including 
128.23 	acute, chronic, and behavioral needs. Care coordination may be accomplished through 
128.24 	partnerships or formal contracts with federally qualified health centers, inpatient 
128.25 	psychiatric facilities, substance use and detoxification facilities, community-based mental 
128.26 	health providers, and other community services, supports, and providers including 
128.27 	schools, child welfare agencies, juvenile and criminal justice agencies, Indian Health 
128.28 	Services clinics, tribally licensed health care and mental health facilities, urban Indian 
128.29 	health clinics, Department of Veterans Affairs medical centers, outpatient clinics, drop-in 
128.30 	centers, acute care hospitals, and hospital outpatient clinics;
128.31 	(5) comply with quality assurance reporting requirements and other reporting 
128.32 	requirements, including any required reporting of encounter data, clinical outcomes data, 
128.33 	and quality data;
128.34 	(5) services provided by clinics include(6) provide crisis mental health services, 
128.35 	including withdrawal management, emergency crisis intervention services, and 
129.1 	stabilization services; screening, assessment, and diagnosis services, including risk 
129.2 	assessments and level of care determinations; patient-centered treatment planning; 
129.3 	outpatient mental health and substance use services; targeted case management; 
129.4 	psychiatric rehabilitation services; peer support and counselor services and family support 
129.5 	services; and intensive community-based mental health services, including mental health 
129.6 	services for members of the armed forces and veterans; and
129.7 	(6) clinics comply with quality assurance reporting requirements and other reporting 
129.8 	requirements, including any required reporting of encounter data, clinical outcomes data, 
129.9 	and quality data.
129.10 	(7) provide coordination of care across settings and providers to ensure seamless 
129.11 	transitions for patients across the full spectrum of health services, including acute, chronic, 
129.12 	and behavioral needs. Care coordination may be accomplished through partnerships 
129.13 	or formal contracts with counties, health plans, pharmacists, pharmacies, rural health 
129.14 	clinics, federally qualified health centers, inpatient psychiatric facilities, substance use and 
129.15 	detoxification facilities, community-based mental health providers, and other community 
129.16 	services, supports, and providers including schools, child welfare agencies, juvenile and 
129.17 	criminal justice agencies, Indian Health Services clinics, tribally licensed health care 
129.18 	and mental health facilities, urban Indian health clinics, Department of Veterans Affairs 
129.19 	medical centers, outpatient clinics, drop-in centers, acute care hospitals, and hospital 
129.20 	outpatient clinics;
129.21 	(8) be certified as mental health clinics under section 245.69, subdivision 2;
129.22 	(9) comply with standards relating to integrated treatment for co-occurring mental 
129.23 	illness and substance use disorders in adults or children under Minnesota Rules, chapter 
129.24 	9533;
129.25 	(10) comply with standards relating to mental health services in Minnesota Rules, 
129.26 	parts 9505.0370 to 9505.0372;
129.27 	(11) be licensed to provide chemical dependency treatment under Minnesota Rules, 
129.28 	parts 9530.6405 to 9530.6505;
129.29 	(12) be certified to provide children's therapeutic services and supports under 
129.30 	section 256B.0943;
129.31 	(13) be certified to provide adult rehabilitative mental health services under section 
129.32 	256B.0623;
129.33 	(14) be enrolled with the department to provide mental health crisis response 
129.34 	services under section 256B.0624;
129.35 	(15) be enrolled with the department to provide mental health targeted case 
129.36 	management under section 256B.0625, subdivision 20; 
130.1 	(16) comply with standards relating to mental health case management in Minnesota 
130.2 	Rules, parts 9520.0900 to 9520.0926; and
130.3 	(17) provide services that comply with the evidence-based practices described in 
130.4 	paragraph (e). 
130.5 	(b) If an entity is unable to provide one or more of the services listed in paragraph 
130.6 	(a), clauses (6) to (17), the commissioner may certify the entity as a CCBHC if it has a 
130.7 	current contract with another entity with the required authority to provide that service and 
130.8 	that meets federal CCBHC criteria as a designated collaborating organization; or, to the 
130.9 	extent allowed by the federal CCBHC criteria, the commissioner may approve a referral 
130.10 	arrangement. The CCBHC must meet federal requirements regarding the type and scope 
130.11 	of services provided directly by the CCBHC.
130.12 	(c) Notwithstanding other statutes that require county approval for a service listed in 
130.13 	paragraph (a), clause (6), a clinic that otherwise meets CCBHC requirements may receive 
130.14 	the prospective payment under paragraph (f) for those services without county approval. 
130.15 	There is no county share when medical assistance pays the CCBHC prospective payment. 
130.16 	As part of the certification process in paragraph (a), the commissioner shall require a letter 
130.17 	of support from the CCBHC's host county confirming that the CCBHC and the counties it 
130.18 	serves have an ongoing relationship to facilitate access and continuity of care, especially 
130.19 	for individuals who are uninsured or who may go on and off medical assistance.
130.20 	(d) When the standards listed in paragraph (a) or other applicable standards conflict 
130.21 	in incompatible ways or overlap in duplicative ways, the commissioner may grant a 
130.22 	variance to state requirements as long as the variance does not conflict with federal 
130.23 	requirements. When standards overlap, the commissioner may decide to substitute all or 
130.24 	a part of a licensure or certification that is substantially the same as another licensure 
130.25 	or certification. The commissioner shall consult with stakeholders, as described in 
130.26 	subdivision 4, before granting a variance under this paragraph.
130.27 	(e) The commissioner shall issue a list of required and recommended evidence-based 
130.28 	practices to be delivered by CCBHCs. The commissioner may update the list to reflect 
130.29 	advances in outcomes research and medical services for persons living with mental 
130.30 	illnesses or substance use disorders. The commissioner shall consider the adequacy of 
130.31 	evidence to support the efficacy of the practice, the quality of workforce available, and the 
130.32 	current availability of the practice in the state. At least 30 days before issuing the initial list 
130.33 	and any revisions, the commissioner shall provide stakeholders an opportunity to comment.
130.34 	(b)(f) The commissioner shall establish standards and methodologies for a 
130.35 	prospective payment system for medical assistance payments for mental health services 
130.36 	delivered by certified community behavioral health clinics, in accordance with guidance 
131.1 	issued on or before September 1, 2015, by the Centers for Medicare and Medicaid 
131.2 	Services. During the operation of the demonstration project, payments shall comply with 
131.3 	federal requirements for a 90 percentan enhanced federal medical assistance percentage. 
131.4 	The commissioner may include quality bonus payments in the prospective payment 
131.5 	system based on federal criteria and on a clinic's provision of the evidence-based practices 
131.6 	in paragraph (e). The prospective payment system does not apply to MinnesotaCare. 
131.7 	Implementation of the prospective payment system is effective July 1, 2017, or upon 
131.8 	federal approval, whichever is later.
131.9 	(g) The commissioner shall seek federal approval to continue federal financial 
131.10 	participation in payment for CCBHC services after the federal demonstration period 
131.11 	ends for CCBHCs certified during the demonstration period that continue to meet the 
131.12 	CCBHC certification standards in paragraph (a). Payment for CCBHC services shall 
131.13 	cease effective July 1, 2019, if continued federal financial participation for the payment 
131.14 	of CCBHC services cannot be obtained.
131.15 	(h) The commissioner shall give preference to clinics that:
131.16 	(1) have at least one location in both rural and urban areas, as defined by federal 
131.17 	criteria;
131.18 	(2) provide a comprehensive range of services and evidence-based practices for all 
131.19 	age groups, with fully coordinated and integrated services; and
131.20 	(3) enhance the state's ability to meet the federal priorities to be selected as a 
131.21 	CCBHC demonstration state.
131.22 	(i) The commissioner shall recertify CCBHCs at least every three years. The 
131.23 	commissioner shall establish a process for decertification and shall require corrective 
131.24 	action, medical assistance repayment, or decertification of a CCBHC that no longer 
131.25 	meets the requirements in this section or fails to meet the standards in the application 
131.26 	and certification process.

131.27 	EFFECTIVE DATE. This section is effective upon enactment, unless otherwise 
131.28 	noted.

131.29 	Sec. 2. Minnesota Statutes 2015 Supplement, section 245.735, subdivision 4, is 
131.30 	amended to read:
131.31 		Subd. 4.Public participation. In developing the projectsand implementing 
131.32 	certified community behavioral health clinics (CCBHCs) under subdivision 3, the 
131.33 	commissioner shall consult, collaborate, and partner with mental health providers, 
131.34 	substance use disorder treatment providers, advocacy organizations, licensed mental 
132.1 	health professionals, counties, tribes, hospitals, other health care providers, and Minnesota 
132.2 	public health care program enrollees who receive mental health services and their families.

132.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

132.4 	Sec. 3. Minnesota Statutes 2014, section 245.99, subdivision 2, is amended to read:
132.5 		Subd. 2.Rental assistance. The program shall pay up to 90 days of housing 
132.6 	assistance for persons with a serious and persistent mental illness who require inpatient or 
132.7 	residential care for stabilization. The commissioner of human services may extend the 
132.8 	length of assistance on a case-by-case basis.

132.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

132.10 	Sec. 4. Minnesota Statutes 2014, section 254B.01, subdivision 4a, is amended to read:
132.11 		Subd. 4a.Culturally specific program. (a) "Culturally specific program" means a 
132.12 	substance use disorder treatment service program or subprogram that is recovery-focused 
132.13 	and culturally specific when the program:
132.14 	(1) improves service quality to and outcomes of a specific population by advancing 
132.15 	health equity to help eliminate health disparities; and
132.16 	(2) ensures effective, equitable, comprehensive, and respectful quality care services 
132.17 	that are responsive to an individual within a specific population's values, beliefs and 
132.18 	practices, health literacy, preferred language, and other communication needs.
132.19 	(b) A tribally licensed substance use disorder program that is designated as serving 
132.20 	a culturally specific population by the applicable tribal government is deemed to satisfy 
132.21 	this subdivision.

132.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

132.23 	Sec. 5. Minnesota Statutes 2015 Supplement, section 254B.05, subdivision 5, is 
132.24 	amended to read:
132.25 		Subd. 5.Rate requirements. (a) The commissioner shall establish rates for 
132.26 	chemical dependency services and service enhancements funded under this chapter.
132.27 	(b) Eligible chemical dependency treatment services include:
132.28 	(1) outpatient treatment services that are licensed according to Minnesota Rules, 
132.29 	parts 9530.6405 to 9530.6480, or applicable tribal license;
132.30 	(2) medication-assisted therapy services that are licensed according to Minnesota 
132.31 	Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;
133.1 	(3) medication-assisted therapy plus enhanced treatment services that meet the 
133.2 	requirements of clause (2) and provide nine hours of clinical services each week;
133.3 	(4) high, medium, and low intensity residential treatment services that are licensed 
133.4 	according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable 
133.5 	tribal license which provide, respectively, 30, 15, and five hours of clinical services each 
133.6 	week;
133.7 	(5) hospital-based treatment services that are licensed according to Minnesota Rules, 
133.8 	parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under 
133.9 	sections 144.50 to 144.56;
133.10 	(6) adolescent treatment programs that are licensed as outpatient treatment programs 
133.11 	according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment 
133.12 	programs according to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430
133.13 	to 2960.0490, or applicable tribal license;
133.14 	(7) high-intensity residential treatment services that are licensed according to 
133.15 	Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable tribal 
133.16 	license, which provide 30 hours of clinical services each week provided by a state-operated 
133.17 	vendor or to clients who have been civilly committed to the commissioner, present the 
133.18 	most complex and difficult care needs, and are a potential threat to the community; and
133.19 	(8) room and board facilities that meet the requirements of subdivision 1a.
133.20 	(c) The commissioner shall establish higher rates for programs that meet the 
133.21 	requirements of paragraph (b) and one of the following additional requirements:
133.22 	(1) programs that serve parents with their children if the program:
133.23 	(i) provides on-site child care during the hours of treatment activity that:
133.24 	(A) is licensed under chapter 245A as a child care center under Minnesota Rules, 
133.25 	chapter 9503; or
133.26 	(B) meets the licensure exclusion criteria of section 245A.03, subdivision 2, 
133.27 	paragraph (a), clause (6), and meets the requirements under Minnesota Rules, part 
133.28 	9530.6490, subpart 4; or
133.29 	(ii) arranges for off-site child care during hours of treatment activity at a facility that 
133.30 	is licensed under chapter 245A as:
133.31 	(A) a child care center under Minnesota Rules, chapter 9503; or
133.32 	(B) a family child care home under Minnesota Rules, chapter 9502;
133.33 	(2) culturally specific programs as defined in section 254B.01, subdivision 4a, or 
133.34 	programs or subprograms serving special populations, if the program or subprogram meets 
133.35 	the following requirements in Minnesota Rules, part 9530.6605, subpart 13;:
134.1 	(i) is designed to address the unique needs of individuals who share a common 
134.2 	language, racial, ethnic, or social background;
134.3 	(ii) is governed with significant input from individuals of that specific background; 
134.4 	and
134.5 	(iii) employs individuals to provide individual or group therapy, at least 50 percent 
134.6 	of whom are of that specific background.
134.7 	(3) programs that offer medical services delivered by appropriately credentialed 
134.8 	health care staff in an amount equal to two hours per client per week if the medical 
134.9 	needs of the client and the nature and provision of any medical services provided are 
134.10 	documented in the client file; and
134.11 	(4) programs that offer services to individuals with co-occurring mental health and 
134.12 	chemical dependency problems if:
134.13 	(i) the program meets the co-occurring requirements in Minnesota Rules, part 
134.14 	9530.6495;
134.15 	(ii) 25 percent of the counseling staff are licensed mental health professionals, as 
134.16 	defined in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing 
134.17 	candidates under the supervision of a licensed alcohol and drug counselor supervisor and 
134.18 	licensed mental health professional, except that no more than 50 percent of the mental 
134.19 	health staff may be students or licensing candidates with time documented to be directly 
134.20 	related to provisions of co-occurring services;
134.21 	(iii) clients scoring positive on a standardized mental health screen receive a mental 
134.22 	health diagnostic assessment within ten days of admission;
134.23 	(iv) the program has standards for multidisciplinary case review that include a 
134.24 	monthly review for each client that, at a minimum, includes a licensed mental health 
134.25 	professional and licensed alcohol and drug counselor, and their involvement in the review 
134.26 	is documented;
134.27 	(v) family education is offered that addresses mental health and substance abuse 
134.28 	disorders and the interaction between the two; and
134.29 	(vi) co-occurring counseling staff willshall receive eight hours of co-occurring 
134.30 	disorder training annually.
134.31 	(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program 
134.32 	that provides arrangements for off-site child care must maintain current documentation at 
134.33 	the chemical dependency facility of the child care provider's current licensure to provide 
134.34 	child care services. Programs that provide child care according to paragraph (c), clause 
134.35 	(1), must be deemed in compliance with the licensing requirements in Minnesota Rules, 
134.36 	part 9530.6490.
135.1 	(e) Adolescent residential programs that meet the requirements of Minnesota 
135.2 	Rules, parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the 
135.3 	requirements in paragraph (c), clause (4), items (i) to (iv).
135.4 	(f) Subject to federal approval, chemical dependency services that are otherwise 
135.5 	covered as direct face-to-face services may be provided via two-way interactive video. 
135.6 	The use of two-way interactive video must be medically appropriate to the condition and 
135.7 	needs of the person being served. Reimbursement shall be at the same rates and under the 
135.8 	same conditions that would otherwise apply to direct face-to-face services. The interactive 
135.9 	video equipment and connection must comply with Medicare standards in effect at the 
135.10 	time the service is provided.

135.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

135.12 	Sec. 6. Minnesota Statutes 2015 Supplement, section 256.478, is amended to read:
135.13 	256.478 HOME AND COMMUNITY-BASED SERVICES TRANSITIONS 
135.14 	GRANTS TRANSITION TO COMMUNITY INITIATIVE.
135.15 		Subdivision 1.Eligibility. (a) Individuals are eligible for the transition to 
135.16 	community initiative if they meet the following criteria:
135.17 	(1) the individual would otherwise remain at the Anoka Metro Regional Treatment 
135.18 	Center or the Minnesota Security Hospital;
135.19 	(2) the individual's discharge would be significantly delayed without the additional 
135.20 	resources available through the transitions to community initiative; and
135.21 	(3) the individual met treatment objectives and no longer needs hospital-level care or 
135.22 	a secure treatment setting.
135.23 	(b) Individuals who are in a community hospital and on the waiting list for Anoka 
135.24 	Metro Regional Treatment Center but for whom alternative community placement would 
135.25 	be appropriate may also be eligible for the transition to community initiative upon 
135.26 	commissioner approval.
135.27 		Subd. 2.Transition grants. (a) The commissioner shall make available home 
135.28 	and community-based services transition grants to serve individuals who do not meet 
135.29 	eligibility criteria for the medical assistance program under section 256B.056 or 256B.057, 
135.30 	but who otherwise meet the criteria under section 256B.092, subdivision 13, or 256B.49, 
135.31 	subdivision 24.
135.32 	(b) Grants established under paragraph (a) may be used to serve individuals who do 
135.33 	not meet eligibility criteria for the medical assistance program under section 256B.056 or 
136.1 	256B.057, but who otherwise meet the criteria under subdivision 1, and to pay for services 
136.2 	and supports not eligible for reimbursement under medical assistance.

136.3 	Sec. 7. Minnesota Statutes 2014, section 256B.0622, is amended by adding a 
136.4 	subdivision to read:
136.5 		Subd. 12.Start-up grants. The commissioner may, within available appropriations, 
136.6 	disburse grant funding to counties, Indian tribes, or mental health service providers to 
136.7 	establish additional assertive community treatment teams, intensive residential treatment 
136.8 	services, or crisis residential services.

136.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

136.10 	Sec. 8. Minnesota Statutes 2014, section 256B.0915, subdivision 3b, is amended to read:
136.11 		Subd. 3b.Cost limits for elderly waiver applicants who reside in a nursing 
136.12 	facility or another eligible facility. (a) For a person who is a nursing facility resident 
136.13 	at the time of requesting a determination of eligibility for elderly waivered services, 
136.14 	a monthly conversion budget limit for the cost of elderly waivered services may be 
136.15 	requested. The monthly conversion budget limit for the cost of elderly waiver services shall 
136.16 	be the resident class assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, for 
136.17 	that resident in the nursing facility where the resident currently resides until July 1 of the 
136.18 	state fiscal year in which the resident assessment system as described in section 256B.438 
136.19 	for nursing home rate determination is implemented. Effective on July 1 of the state fiscal 
136.20 	year in which the resident assessment system as described in section 256B.438 for nursing 
136.21 	home rate determination is implemented, the monthly conversion budget limit for the cost 
136.22 	of elderly waiver services shall be based on the per diem nursing facility rate as determined 
136.23 	by the resident assessment system as described in section 256B.438 for residents in 
136.24 	the nursing facility where the elderly waiver applicant currently resides. The monthly 
136.25 	conversion budget limit shall be calculated by multiplying the per diem by 365, divided by 
136.26 	12, and reduced by the recipient's maintenance needs allowance as described in subdivision 
136.27 	1d. The initially approved monthly conversion budget limit shall be adjusted annually as 
136.28 	described in subdivision 3a, paragraph (a). The limit under this subdivision paragraph 
136.29 	only applies to persons discharged from a nursing facility after a minimum 30-day stay 
136.30 	and found eligible for waivered services on or after July 1, 1997. For conversions from the 
136.31 	nursing home to the elderly waiver with consumer directed community support services, 
136.32 	the nursing facility per diem used to calculate the monthly conversion budget limit must 
136.33 	be reduced by a percentage equal to the percentage difference between the consumer 
137.1 	directed services budget limit that would be assigned according to the federally approved 
137.2 	waiver plan and the corresponding community case mix cap, but not to exceed 50 percent.
137.3 	(b) A person who meets elderly waiver eligibility criteria and the eligibility criteria 
137.4 	under section 256.478, subdivision 1, is eligible for a special monthly budget limit for the 
137.5 	cost of elderly waivered services up to $21,610 per month. The monthly limit shall be 
137.6 	adjusted annually as described in subdivision 3a, paragraphs (a) and (e). For individuals 
137.7 	using a special monthly budget under the elderly waiver with consumer-directed 
137.8 	community support services, the special monthly budget limit must be reduced as 
137.9 	described in paragraph (a). 
137.10 	(c) The commissioner may provide an additional payment for documented costs 
137.11 	between a threshold determined by the commissioner and the special monthly budget limit 
137.12 	to a managed care plan for elderly waiver services provided to a person who is (1) eligible 
137.13 	for a special monthly budget limit under paragraph (b), and (2) enrolled in a managed care 
137.14 	plan that provides elderly waiver services under section 256B.69 
137.15 	(b) (d) For monthly conversion budget limits under paragraph (a) and special 
137.16 	monthly budget limits under paragraph (b), the service rate limits for adult foster care 
137.17 	under subdivision 3d and customized living under subdivision 3e may be exceeded, if 
137.18 	necessary for the provider to meet identified needs and provide services as approved in the 
137.19 	coordinated service and support plan, providing that the total cost of all services does not 
137.20 	exceed the monthly conversion or special budget limit. Service rates shall be established 
137.21 	using tools provided by the commissioner. The following costs must be included in 
137.22 	determining the total monthly costs for the waiver client:
137.23 	(1) cost of all waivered services, including specialized supplies and equipment and 
137.24 	environmental accessibility adaptations; and
137.25 	(2) cost of skilled nursing, home health aide, and personal care services reimbursable 
137.26 	by medical assistance.

137.27 	EFFECTIVE DATE. This section is effective upon federal approval. The 
137.28 	commissioner of human services shall notify the revisor of statutes once federal approval 
137.29 	is obtained.

137.30 	Sec. 9. Minnesota Statutes 2014, section 256B.092, subdivision 13, is amended to read:
137.31 		Subd. 13.Waiver allocations for transition populations. (a) The commissioner 
137.32 	shall make available additional waiver allocations and additional necessary resources 
137.33 	to assure timely discharges from the Anoka Metro Regional Treatment Center and the 
137.34 	Minnesota Security Hospital in St. Peter for individuals who meet the following eligibility 
137.35 	criteria: under section 256.478, subdivision 1.
138.1 	(1) are otherwise eligible for the developmental disabilities waiver under this section;
138.2 	(2) who would otherwise remain at the Anoka Metro Regional Treatment Center or 
138.3 	the Minnesota Security Hospital;
138.4 	(3) whose discharge would be significantly delayed without the available waiver 
138.5 	allocation; and
138.6 	(4) who have met treatment objectives and no longer meet hospital level of care.
138.7 	(b) Additional waiver allocations under this subdivision must meet cost-effectiveness 
138.8 	requirements of the federal approved waiver plan.
138.9 	(c) Any corporate foster care home developed under this subdivision must be 
138.10 	considered an exception under section 245A.03, subdivision 7, paragraph (a).

138.11 	Sec. 10. Minnesota Statutes 2015 Supplement, section 256B.49, subdivision 24, 
138.12 	is amended to read:
138.13 		Subd. 24.Waiver allocations for transition populations. (a) The commissioner 
138.14 	shall make available additional waiver allocations and additional necessary resources 
138.15 	to assure timely discharges from the Anoka Metro Regional Treatment Center and the 
138.16 	Minnesota Security Hospital in St. Peter for individuals who meet the following eligibility 
138.17 	criteria: established under section 256.478, subdivision 1.
138.18 	(1) are otherwise eligible for the brain injury, community access for disability 
138.19 	inclusion, or community alternative care waivers under this section;
138.20 	(2) who would otherwise remain at the Anoka Metro Regional Treatment Center or 
138.21 	the Minnesota Security Hospital;
138.22 	(3) whose discharge would be significantly delayed without the available waiver 
138.23 	allocation; and
138.24 	(4) who have met treatment objectives and no longer meet hospital level of care.
138.25 	(b) Additional waiver allocations under this subdivision must meet cost-effectiveness 
138.26 	requirements of the federal approved waiver plan.
138.27 	(c) Any corporate foster care home developed under this subdivision must be 
138.28 	considered an exception under section 245A.03, subdivision 7, paragraph (a).

138.29 	Sec. 11. COMMUNITY-BASED COMPETENCY RESTORATION SERVICES.
 138.30 	(a) The commissioner shall provide grants to adult mental health initiatives, counties, 
138.31 	Indian tribes, or community mental health providers for planning and development of 
138.32 	community-based competency assessment and restoration services to support individuals 
138.33 	who, according to Minnesota Rules of Criminal Procedure, rule 20.01, have been referred 
139.1 	for examination or found by a court to be incapable of understanding the criminal 
139.2 	proceedings or participating in their defense.
139.3 	(b) Grants will be issued through a competitive request for proposals process. Grant 
139.4 	applications shall provide details on how the intended service will address identified needs 
139.5 	and must demonstrate collaboration between county or tribal social services, community 
139.6 	mental health providers, and the courts. Applicants must demonstrate the ability to sustain 
139.7 	the project after one-time state grant funding is no longer available. Grants funded under 
139.8 	this section must include funding for applicants from rural areas. 

139.9 	ARTICLE 5
139.10 	OPERATIONS

139.11 	Section 1. Minnesota Statutes 2014, section 245A.10, subdivision 4, is amended to read:
139.12 		Subd. 4.License or certification fee for certain programs. (a) Child care centers 
139.13 	shall pay an annual nonrefundable license fee based on the following schedule:

139.14
139.15		Licensed Capacity
	Child Care Center
License Fee
	
139.16		1 to 24 persons
	$200
	
139.17		25 to 49 persons
	$300
	
139.18		50 to 74 persons
	$400
	
139.19		75 to 99 persons
	$500
	
139.20		100 to 124 persons
	$600
	
139.21		125 to 149 persons
	$700
	
139.22		150 to 174 persons
	$800
	
139.23		175 to 199 persons
	$900
	
139.24		200 to 224 persons
	$1,000
	
139.25		225 or more persons
	$1,100
	
139.26 	(b)(1) A program licensed to provide one or more of the home and community-based 
139.27 	services and supports identified under chapter 245D to persons with disabilities or age 
139.28 	65 and older, shall pay an annual nonrefundable license fee based on a flat rate of $450 
139.29 	plus one-half of one percent of revenues derived from the provision of services that would 
139.30 	require licensure under chapter 245D during after subtracting the first $100,000 received 
139.31 	for the calendar year immediately preceding the year in which the license fee is paid,. 
139.32 	according to the following schedule:

139.33	License Holder Annual Revenue
		License Fee
	
139.34	less than or equal to $10,000
		$200
	
139.35
139.36	greater than $10,000 but less than or 
equal to $25,000
		$300
	
140.1
140.2	greater than $25,000 but less than or 
equal to $50,000
		$400
	
140.3
140.4	greater than $50,000 but less than or 
equal to $100,000
		$500
	
140.5
140.6	greater than $100,000 but less than or 
equal to $150,000
		$600
	
140.7
140.8	greater than $150,000 but less than or 
equal to $200,000
		$800
	
140.9140.10
	greater than $200,000 but less than or 
equal to $250,000
		$1,000
	
140.11
140.12	greater than $250,000 but less than or 
equal to $300,000
		$1,200
	
140.13
140.14	greater than $300,000 but less than or 
equal to $350,000
		$1,400
	
140.15
140.16	greater than $350,000 but less than or 
equal to $400,000
		$1,600
	
140.17
140.18	greater than $400,000 but less than or 
equal to $450,000
		$1,800
	
140.19
140.20	greater than $450,000 but less than or 
equal to $500,000
		$2,000
	
140.21
140.22	greater than $500,000 but less than or 
equal to $600,000
		$2,250
	
140.23
140.24	greater than $600,000 but less than or 
equal to $700,000
		$2,500
	
140.25
140.26	greater than $700,000 but less than or 
equal to $800,000
		$2,750
	
140.27
140.28	greater than $800,000 but less than or 
equal to $900,000
		$3,000
	
140.29
140.30	greater than $900,000 but less than or 
equal to $1,000,000
		$3,250
	
140.31
140.32	greater than $1,000,000 but less than or 
equal to $1,250,000
		$3,500
	
140.33
140.34	greater than $1,250,000 but less than or 
equal to $1,500,000
		$3,750
	
140.35
140.36	greater than $1,500,000 but less than or 
equal to $1,750,000
		$4,000
	
140.37
140.38	greater than $1,750,000 but less than or 
equal to $2,000,000
		$4,250
	
140.39
140.40	greater than $2,000,000 but less than or 
equal to $2,500,000
		$4,500
	
140.41
140.42	greater than $2,500,000 but less than or 
equal to $3,000,000
		$4,750
	
140.43
140.44	greater than $3,000,000 but less than or 
equal to $3,500,000
		$5,000
	
140.45
140.46	greater than $3,500,000 but less than or 
equal to $4,000,000
		$5,500
	
140.47
140.48	greater than $4,000,000 but less than or 
equal to $4,500,000
		$6,000
	
141.1
141.2	greater than $4,500,000 but less than or 
equal to $5,000,000
		$6,500
	
141.3
141.4	greater than $5,000,000 but less than or 
equal to $7,500,000
		$7,000
	
141.5
141.6	greater than $7,500,000 but less than or 
equal to $10,000,000
		$8,500
	
141.7
141.8	greater than $10,000,000 but less than 
or equal to $12,500,000
		$10,000
	
141.9141.10
	greater than $12,500,000 but less than 
or equal to $15,000,000
		$14,000
	
141.11	greater than $15,000,000
		$18,000
	
141.12 	(2) If requested, the license holder shall provide the commissioner information to 
141.13 	verify the license holder's annual revenues or other information as needed, including 
141.14 	copies of documents submitted to the Department of Revenue.
141.15 	(3) At each annual renewal, a license holder may elect to pay the highest renewal 
141.16 	fee, and not provide annual revenue information to the commissioner.
141.17 	(4) (3) A license holder that knowingly provides the commissioner incorrect revenue 
141.18 	amounts for the purpose of paying a lower license fee shall be subject to a civil penalty in 
141.19 	the amount of double the fee the provider should have paid.
141.20 	(5) Notwithstanding clause (1), a license holder providing services under one or 
141.21 	more licenses under chapter 245B that are in effect on May 15, 2013, shall pay an annual 
141.22 	license fee for calendar years 2014, 2015, and 2016, equal to the total license fees paid 
141.23 	by the license holder for all licenses held under chapter 245B for calendar year 2013. 
141.24 	For calendar year 2017 and thereafter, the license holder shall pay an annual license fee 
141.25 	according to clause (1).
141.26 	(c) A chemical dependency treatment program licensed under Minnesota Rules, 
141.27 	parts 9530.6405 to 9530.6505, to provide chemical dependency treatment shall pay an 
141.28 	annual nonrefundable license fee based on the following schedule:

141.29		Licensed Capacity
	License Fee
	
141.30		1 to 24 persons
	$600
	
141.31		25 to 49 persons
	$800
	
141.32		50 to 74 persons
	$1,000
	
141.33		75 to 99 persons
	$1,200
	
141.34		100 or more persons
	$1,400
	
141.35 	(d) A chemical dependency program licensed under Minnesota Rules, parts 
141.36 	9530.6510 to 9530.6590, to provide detoxification services shall pay an annual 
141.37 	nonrefundable license fee based on the following schedule:

141.38		Licensed Capacity
	License Fee
	
141.39		1 to 24 persons
	$760
	
142.1		25 to 49 persons
	$960
	
142.2		50 or more persons
	$1,160
	
142.3 	(e) Except for child foster care, a residential facility licensed under Minnesota Rules, 
142.4 	chapter 2960, to serve children shall pay an annual nonrefundable license fee based on 
142.5 	the following schedule:

142.6		Licensed Capacity
	License Fee
	
142.7		1 to 24 persons
	$1,000
	
142.8		25 to 49 persons
	$1,100
	
142.9		50 to 74 persons
	$1,200
	
142.10		75 to 99 persons
	$1,300
	
142.11		100 or more persons
	$1,400
	
142.12 	(f) A residential facility licensed under Minnesota Rules, parts 9520.0500 to 
142.13 	9520.0670, to serve persons with mental illness shall pay an annual nonrefundable license 
142.14 	fee based on the following schedule:

142.15		Licensed Capacity
	License Fee
	
142.16		1 to 24 persons
	$2,525
	
142.17		25 or more persons
	$2,725
	
142.18 	(g) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 
142.19 	9570.3400, to serve persons with physical disabilities shall pay an annual nonrefundable 
142.20 	license fee based on the following schedule:

142.21		Licensed Capacity
	License Fee
	
142.22		1 to 24 persons
	$450
	
142.23		25 to 49 persons
	$650
	
142.24		50 to 74 persons
	$850
	
142.25		75 to 99 persons
	$1,050
	
142.26		100 or more persons
	$1,250
	
142.27 	(h) A program licensed to provide independent living assistance for youth under 
142.28 	section 245A.22 shall pay an annual nonrefundable license fee of $1,500.
142.29 	(i) A private agency licensed to provide foster care and adoption services under 
142.30 	Minnesota Rules, parts 9545.0755 to 9545.0845, shall pay an annual nonrefundable 
142.31 	license fee of $875.
142.32 	(j) A program licensed as an adult day care center licensed under Minnesota Rules, 
142.33 	parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on 
142.34 	the following schedule:

142.35		Licensed Capacity
	License Fee
	
142.36		1 to 24 persons
	$500
	
142.37		25 to 49 persons
	$700
	
143.1		50 to 74 persons
	$900
	
143.2		75 to 99 persons
	$1,100
	
143.3		100 or more persons
	$1,300
	
143.4 	(k) A program licensed to provide treatment services to persons with sexual 
143.5 	psychopathic personalities or sexually dangerous persons under Minnesota Rules, parts 
143.6 	9515.3000 to 9515.3110, shall pay an annual nonrefundable license fee of $20,000.
143.7 	(l) A mental health center or mental health clinic requesting certification for 
143.8 	purposes of insurance and subscriber contract reimbursement under Minnesota Rules, 
143.9 	parts 9520.0750 to 9520.0870, shall pay a certification fee of $1,550 per year. If the 
143.10 	mental health center or mental health clinic provides services at a primary location with 
143.11 	satellite facilities, the satellite facilities shall be certified with the primary location without 
143.12 	an additional charge.

143.13 	Sec. 2. Minnesota Statutes 2014, section 245A.10, subdivision 8, is amended to read:
143.14 		Subd. 8.Deposit of license fees. A human services licensing account is created in 
143.15 	the state government special revenue fund. Fees collected under subdivisions 3 and 4 must 
143.16 	be deposited in the human services licensing account and are annually appropriated to the 
143.17 	commissioner for licensing activities authorized under this chapter.

143.18 	ARTICLE 6
143.19 	DIRECT CARE AND TREATMENT

143.20 	Section 1. Minnesota Statutes 2015 Supplement, section 245.4889, subdivision 1, 
143.21 	is amended to read:
143.22 		Subdivision 1.Establishment and authority. (a) The commissioner is authorized 
143.23 	to make grants from available appropriations to assist:
143.24 	(1) counties;
143.25 	(2) Indian tribes;
143.26 	(3) children's collaboratives under section 124D.23 or 245.493; or
143.27 	(4) mental health service providers.
143.28 	(b) The following services are eligible for grants under this section:
143.29 	(1) services to children with emotional disturbances as defined in section 245.4871, 
143.30 	subdivision 15, and their families;
143.31 	(2) transition services under section 245.4875, subdivision 8, for young adults under 
143.32 	age 21 and their families;
143.33 	(3) respite care services for children with severe emotional disturbances who are at 
143.34 	risk of out-of-home placement;
144.1 	(4) children's mental health crisis services;
144.2 	(5) mental health services for people from cultural and ethnic minorities;
144.3 	(6) children's mental health screening and follow-up diagnostic assessment and 
144.4 	treatment;
144.5 	(7) services to promote and develop the capacity of providers to use evidence-based 
144.6 	practices in providing children's mental health services;
144.7 	(8) school-linked mental health services;
144.8 	(9) building evidence-based mental health intervention capacity for children birth to 
144.9 	age five;
144.10 	(10) suicide prevention and counseling services that use text messaging statewide;
144.11 	(11) mental health first aid training;
144.12 	(12) training for parents, collaborative partners, and mental health providers on the 
144.13 	impact of adverse childhood experiences and trauma and development of an interactive 
144.14 	Web site to share information and strategies to promote resilience and prevent trauma;
144.15 	(13) transition age services to develop or expand mental health treatment and 
144.16 	supports for adolescents and young adults 26 years of age or younger;
144.17 	(14) early childhood mental health consultation;
144.18 	(15) evidence-based interventions for youth at risk of developing or experiencing a 
144.19 	first episode of psychosis, and a public awareness campaign on the signs and symptoms of 
144.20 	psychosis; and
144.21 	(16) psychiatric consultation for primary care practitioners.; and
144.22 	(17) sustaining extended-stay inpatient psychiatric hospital services for children 
144.23 	and adolescents.
144.24 	(c) Services under paragraph (b) must be designed to help each child to function and 
144.25 	remain with the child's family in the community and delivered consistent with the child's 
144.26 	treatment plan. Transition services to eligible young adults under paragraph (b) must be 
144.27 	designed to foster independent living in the community.

144.28 	Sec. 2. Minnesota Statutes 2014, section 246.54, as amended by Laws 2015, chapter 
144.29 	71, article 4, section 2, is amended to read:
144.30 	246.54 LIABILITY OF COUNTY; REIMBURSEMENT.
144.31 		Subdivision 1.County portion for cost of care Generally. (a) Except for chemical 
144.32 	dependency services provided under sections 254B.01 to 254B.09, the client's county 
144.33 	shall pay to the state of Minnesota a portion of the cost of care provided in a regional 
144.34 	treatment center or a state nursing facility to a client legally settled in that county. A 
144.35 	county's payment shall be made from the county's own sources of revenue and payments 
145.1 	shall equal a percentage of the cost of care, as determined by the commissioner, for each 
145.2 	day, or the portion thereof, that the client spends at a regional treatment center or a state 
145.3 	nursing facility according to the following schedule:.
145.4 		Subd. 1a.Anoka Metro Regional Treatment Center. (a) A county shall pay 
145.5 	for care provided at Anoka Metro Regional Treatment Center shall be according to the 
145.6 	following schedule:
145.7 	(1) zero percent for the first 30 days;
145.8 	(2) 20 percent for days 31 and over if the stay is determined to be clinically 
145.9 	appropriate for the client; and
145.10 	(3) 100 percent for each day during the stay, including the day of admission, when 
145.11 	the facility determines that it is clinically appropriate for the client to be discharged.
145.12 	(b) If payments received by the state under sections 246.50 to 246.53 exceed 80 
145.13 	percent of the cost of care for days over 31 for clients who meet the criteria in paragraph 
145.14 	(a), clause (2), the county shall be responsible for paying the state only the remaining 
145.15 	amount. The county shall not be entitled to reimbursement from the client, the client's 
145.16 	estate, or from the client's relatives, except as provided in section 246.53.
145.17 		Subd. 1b.Community behavioral health hospitals. A county shall pay for care 
145.18 	provided at state-operated community-based behavioral health hospitals shall be according 
145.19 	to the following schedule:
145.20 	(1) 100 percent for each day during the stay, including the day of admission, when 
145.21 	the facility determines that it is clinically appropriate for the client to be discharged; and
145.22 	(2) the county shall not be entitled to reimbursement from the client, the client's 
145.23 	estate, or from the client's relatives, except as provided in section 246.53.
145.24 		Subd. 1c.State-operated forensic services. A county shall pay for care provided at 
145.25 	state-operated forensic services shall be according to the following schedule:
145.26 	(1) Minnesota Security Hospital: ten percent for each day, or portion thereof, that the 
145.27 	client spends in a Minnesota Security Hospital program. If payments received by the state 
145.28 	under sections 246.50 to 246.53 for services provided at the Minnesota Security Hospital 
145.29 	exceed 90 percent of the cost of care, the county shall be responsible for paying the state 
145.30 	only the remaining amount. The county shall not be entitled to reimbursement from the 
145.31 	client, the client's estate, or the client's relatives except as provided in section 246.53;
145.32 	(2) forensic nursing home: ten percent for each day, or portion thereof, that the client 
145.33 	spends in a forensic nursing home program. If payments received by the state under 
145.34 	sections 246.50 to 246.53 for services provided at the forensic nursing home exceed 90 
145.35 	percent of the cost of care, the county shall be responsible for paying the state only the 
146.1 	remaining amount. The county shall not be entitled to reimbursement from the client, the 
146.2 	client's estate, or the client's relatives except as provided in section 246.53;
146.3 	(3) forensic transition services: 50 percent for each day, or portion thereof, that the 
146.4 	client spends in a forensic transition services program. If payments received by the state 
146.5 	under sections 246.50 to 246.53 for services provided at the forensic transition services 
146.6 	exceed 50 percent of the cost of care, the county shall be responsible for paying the state 
146.7 	only the remaining amount. The county shall not be entitled to reimbursement from the 
146.8 	client, the client's estate, or the client's relatives except as provided in section 246.53; and
146.9 	(4) residential competency restoration program:
146.10 	(i) 20 percent for each day, or portion thereof, that the client spends in a residential 
146.11 	competency restoration program while the client is in need of restoration services;
146.12 	(ii) 50 percent for each day, or portion thereof, that the client spends in a residential 
146.13 	competency restoration program once the client no longer needs restoration services; and
146.14 	(iii) 100 percent for each day, or portion thereof, once charges against a client have 
146.15 	been resolved or dropped.
146.16 		Subd. 2.Exceptions. (a) Subdivision 1 does not apply to services provided at the 
146.17 	Minnesota Security Hospital. For services at the Minnesota Security Hospital, a county's 
146.18 	payment shall be made from the county's own sources of revenue and payments. Excluding 
146.19 	the state-operated forensic transition service, payments to the state from the county shall 
146.20 	equal ten percent of the cost of care, as determined by the commissioner, for each day, or 
146.21 	the portion thereof, that the client spends at the facility. For the state-operated forensic 
146.22 	transition service, payments to the state from the county shall equal 50 percent of the cost of 
146.23 	care, as determined by the commissioner, for each day, or the portion thereof, that the client 
146.24 	spends in the program. If payments received by the state under sections 246.50 to 246.53 
146.25 	for services provided at the Minnesota Security Hospital, excluding the state-operated 
146.26 	forensic transition service, exceed 90 percent of the cost of care, the county shall be 
146.27 	responsible for paying the state only the remaining amount. If payments received by the 
146.28 	state under sections 246.50 to 246.53 for the state-operated forensic transition service 
146.29 	exceed 50 percent of the cost of care, the county shall be responsible for paying the state 
146.30 	only the remaining amount. The county shall not be entitled to reimbursement from the 
146.31 	client, the client's estate, or from the client's relatives, except as provided in section 246.53.
146.32 	(b) Regardless of the facility to which the client is committed, subdivision 1 does 
146.33 	not apply to the following individuals:
146.34 	(1) clients who are committed as sexual psychopathic personalities under section 
146.35 	253D.02, subdivision 15; and
147.1 	(2) clients who are committed as sexually dangerous persons under section 253D.02, 
147.2 	subdivision 16.

147.3 	Sec. 3. [246.701] ESTABLISHING OFFICE OF SPECIAL INVESTIGATIONS 
147.4 	LAW ENFORCEMENT DIVISION.
147.5 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
147.6 	have the meanings given them.
147.7 	(b) "Arrest" has the meaning given in section 629.30.
147.8 	(c) "Law enforcement agency" has the meaning given in section 626.84, subdivision 
147.9 	1, paragraph (f).
147.10 		Subd. 2.Establishing Office of Special Investigations Law Enforcement 
147.11 	Division. (a) The commissioner of human services may establish a law enforcement 
147.12 	agency known as the Department of Human Services Office of Special Investigations 
147.13 	Law Enforcement Division.
147.14 	(b) The commissioner of human services may appoint peace officers, as defined in 
147.15 	section 626.84, subdivision 1, paragraph (c), to the Office of Special Investigations Law 
147.16 	Enforcement Division.
147.17 	(c) Peace officers described in paragraph (b) must meet all applicable training and 
147.18 	licensing requirements according to chapter 626 and are subject to the Peace Officer 
147.19 	Discipline Procedures Act in section 626.89.
147.20 		Subd. 3.Limited jurisdiction. (a) The jurisdiction of the Office of Special 
147.21 	Investigations Law Enforcement Division is limited to the arrest of individuals (1) who 
147.22 	reside at a state-operated facility, and (2) are committed to the commissioner or for whom 
147.23 	the commissioner is the legal guardian.
147.24 	(b) The jurisdiction of the Office of Special Investigations Law Enforcement 
147.25 	Division is limited to the authority to arrest when there is probable cause that an individual 
147.26 	described in paragraph (a) committed a crime at a state-operated facility or escaped 
147.27 	custody in violation of section 609.485.
147.28 	(c) The Office of Special Investigations Law Enforcement Division's jurisdiction 
147.29 	under this section is statewide.
147.30 		Subd. 4.Liability. Nothing in this section subjects peace officers of the Office of 
147.31 	Special Investigations Law Enforcement Division to civil liability actions not expressly 
147.32 	stated in section 3.736 or 626.89.

147.33 	Sec. 4. Minnesota Statutes 2014, section 246B.01, subdivision 2b, is amended to read:
148.1 		Subd. 2b.Cost of care. "Cost of care" means the commissioner's charge for housing 
148.2 	and, treatment, aftercare  services, and supervision provided to any person admitted to or 
148.3 	on provisional discharge from the Minnesota sex offender program.
148.4 	For purposes of this subdivision, "charge for housing and, treatment, aftercare 
148.5 	services, and supervision" means the cost of services, treatment, maintenance, bonds issued 
148.6 	for capital improvements, depreciation of buildings and equipment, and indirect costs 
148.7 	related to the operation of state facilities. The commissioner may determine the charge for 
148.8 	services on an anticipated average per diem basis as an all-inclusive charge per facility.

148.9 	Sec. 5. Minnesota Statutes 2014, section 246B.035, is amended to read:
148.10 	246B.035 ANNUAL PERFORMANCE REPORT REQUIRED.
148.11 	The executive director of the Minnesota sex offender program shall submit 
148.12 	electronically a performance report to the chairs and ranking minority members of the 
148.13 	legislative committees and divisions with jurisdiction over funding for the program by 
148.14 	January February 15 of each year beginning in 2010 2017. The report must include the 
148.15 	following:
148.16 	(1) a description of the program, including the strategic mission, goals, objectives, 
148.17 	and outcomes;
148.18 	(2) the programwide per diem reported in a standard calculated method as outlined 
148.19 	in the program policies and procedures;
148.20 	(3) program annual statistics as outlined in the departmental policies and procedures; 
148.21 	and
148.22 	(4) the sex offender program evaluation report required under section 246B.03. The 
148.23 	executive director shall submit a printed copy upon request.

148.24 	Sec. 6. Minnesota Statutes 2014, section 246B.10, is amended to read:
148.25 	246B.10 LIABILITY OF COUNTY; REIMBURSEMENT.
148.26 	(a) The following criteria apply to clients provisionally discharged.
148.27 	(b) The civilly committed sex offender's county shall pay to the state a portion of the 
148.28 	cost of care provided in by the Minnesota sex offender program to a civilly committed sex 
148.29 	offender who has legally settled in that county. A county's payment must be made from 
148.30 	the county's own sources of revenue and payments must equal 25the same percent of the 
148.31 	cost of care, as determined by the commissioner, for each day or portion of a day, that 
148.32 	the civilly committed sex offender spends at the facility receives services, either within a 
148.33 	Department of Human Services operated facility or while on provisional discharge. 
149.1 	(c) If payments received by the state under this chapter exceed 75 percent of the cost 
149.2 	of care, the county is responsible for paying the state the remaining amount. 
149.3 	(d) The county is not entitled to reimbursement from the civilly committed sex 
149.4 	offender, the civilly committed sex offender's estate, or from the civilly committed sex 
149.5 	offender's relatives, except as provided in section 246B.07.

149.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

149.7 	Sec. 7. Minnesota Statutes 2014, section 253B.18, subdivision 4b, is amended to read:
149.8 		Subd. 4b.Pass-eligible status; notification. (a) The following patients committed 
149.9 	to a secure treatment facility shall not be placed on pass-eligible status unless that status 
149.10 	has been approved by the medical director of the secure treatment facility:
149.11 	(a) (1) a patient who has been committed as a person who is mentally ill and 
149.12 	dangerous and who:
149.13 	(1) (i) was found incompetent to proceed to trial for a felony or was found not guilty 
149.14 	by reason of mental illness of a felony immediately prior to the filing of the commitment 
149.15 	petition;
149.16 	(2) (ii) was convicted of a felony immediately prior to or during commitment as a 
149.17 	person who is mentally ill and dangerous; or
149.18 	(3) (iii) is subject to a commitment to the commissioner of corrections; and
149.19 	(b) (2) a patient who has been committed as a psychopathic personality, a sexually 
149.20 	psychopathic personality, or a sexually dangerous person.
149.21 	(b) At least ten days prior to a determination on the status, the medical director 
149.22 	shall notify the committing court, the county attorney of the county of commitment, the 
149.23 	designated agency, an interested person, the petitioner, and the petitioner's counsel of the 
149.24 	proposed status, and their right to request review by the special review board. If within 
149.25 	ten days of receiving notice any notified person requests review by filing a notice of 
149.26 	objection with the commissioner and the head of the treatment facility, a hearing shall be 
149.27 	held before. The special review board.judicial appeal panel shall hear review requests 
149.28 	for patients meeting the criteria of paragraph (a). For patients meeting the criteria of 
149.29 	paragraph (a), clause (1), the proposed status shall not be implemented unless it receives a 
149.30 	favorable recommendation by a majority of the special review board and approval by the 
149.31 	commissioner. For patients meeting the criteria of paragraph (a), clause (2), the proposed 
149.32 	status shall not be implemented unless it is approved by the judicial appeal panel. The order 
149.33 	of the commissioner or judicial appeal panel is appealable as provided in section 253B.19.
149.34 	(c) Nothing in this subdivision shall be construed to give a patient an affirmative 
149.35 	right to seek pass-eligible status from the special review board judicial appeal panel.

150.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
150.2 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
150.3 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
150.4 	date of enactment.

150.5 	Sec. 8. Minnesota Statutes 2014, section 253D.27, subdivision 2, is amended to read:
150.6 		Subd. 2.Filing. A petition for a reduction in custody or an appeal of a revocation of 
150.7 	provisional discharge may be filed by either the committed person or by the executive 
150.8 	director and must be filed with and considered by a panel of the special review board 
150.9 	authorized under section 253B.18, subdivision 4c the judicial appeal panel. A committed 
150.10 	person may not petition the special review board judicial appeal panel any sooner than six 
150.11 	months following either:
150.12 	(1) the entry of judgment in the district court of the order for commitment issued 
150.13 	under section 253D.07, subdivision 5, or upon the exhaustion of all related appeal rights 
150.14 	in state court relating to that order, whichever is later; or
150.15 	(2) any recommendation of the special review board or order of the judicial appeal 
150.16 	panel, or upon the exhaustion of all appeal rights in state court, whichever is later. The 
150.17 	executive director may petition at any time. The special review board proceedings are not 
150.18 	contested cases as defined in chapter 14.

150.19 	EFFECTIVE DATE. This section is effective the day following final enactment 
150.20 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
150.21 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
150.22 	date of enactment.

150.23 	Sec. 9. Minnesota Statutes 2014, section 253D.28, as amended by Laws 2015, chapter 
150.24 	65, article 2, section 3, is amended to read:
150.25 	253D.28 JUDICIAL APPEAL PANEL.
150.26 		Subdivision 1.Rehearing and reconsideration. (a) A person committed as a 
150.27 	sexually dangerous person or a person with a sexual psychopathic personality under this 
150.28 	chapter, or committed as both mentally ill and dangerous to the public under section 
150.29 	253B.18 and as a sexually dangerous person or a person with a sexual psychopathic 
150.30 	personality under this chapter; the county attorney of the county from which the person was 
150.31 	committed or the county of financial responsibility; or the commissioner may petition the 
150.32 	judicial appeal panel established under section 253B.19, subdivision 1, for a rehearing and 
150.33 	reconsideration of a recommendation of the special review board under section 253D.27.
151.1 	(b) The petition must be filed with the Supreme Court within 30 days after 
151.2 	the recommendation is mailed by the commissioner as required in section 253D.27, 
151.3 	subdivision 4. The hearing must be held within 180 days of the filing of the petition 
151.4 	unless an extension is granted for good cause.
151.5 	(c) If no party petitions the judicial appeal panel for a rehearing or reconsideration 
151.6 	within 30 days, the judicial appeal panel shall either issue an order adopting the 
151.7 	recommendations of the special review board or set the matter on for a hearing pursuant 
151.8 	to this section.
151.9 		Subd. 2.Procedure. (a) The Supreme Court shall refer a petition for rehearing 
151.10 	and reconsideration reduction in custody to the chief judge of the judicial appeal panel. 
151.11 	The chief judge shall notify the committed person, the county attorneys of the county 
151.12 	of commitment and county of financial responsibility, the commissioner, the executive 
151.13 	director, any interested person, and other persons the chief judge designates, of the time and 
151.14 	place of the hearing on the petition. The notice shall be given at least 14 days prior to the 
151.15 	date of the hearing. The hearing may be conducted by interactive video conference under 
151.16 	General Rules of Practice, rule 131, and Minnesota Rules of Civil Commitment, rule 14.
151.17 	(b) Any person may oppose the petition. The committed person, the committed 
151.18 	person's counsel, the county attorneys of the committing county and county of financial 
151.19 	responsibility, and the commissioner shall participate as parties to the proceeding pending 
151.20 	before the judicial appeal panel and shall, no later than 20 days before the hearing on the 
151.21 	petition, inform the judicial appeal panel and the opposing party in writing whether they 
151.22 	support or oppose the petition and provide a summary of facts in support of their position.
151.23 	(c) The judicial appeal panel may appoint examiners and may adjourn the hearing 
151.24 	from time to time. It shall hear and receive all relevant testimony and evidence and make 
151.25 	a record of all proceedings. The committed person, the committed person's counsel, and 
151.26 	the county attorney of the committing county or the county of financial responsibility have 
151.27 	the right to be present and may present and cross-examine all witnesses and offer a factual 
151.28 	and legal basis in support of their positions.
151.29 	(d) The petitioning party seeking discharge or provisional discharge bears the 
151.30 	burden of going forward with the evidence, which means presenting a prima facie case 
151.31 	with competent evidence to show that the person is entitled to the requested relief. If 
151.32 	the petitioning party has met this burden, the party opposing discharge or provisional 
151.33 	discharge bears the burden of proof by clear and convincing evidence that the discharge or 
151.34 	provisional discharge should be denied.
151.35 	(e) A party seeking transfer under section 253D.29 must establish by a preponderance 
151.36 	of the evidence that the transfer is appropriate.
152.1 		Subd. 3.Decision. A majority of the judicial appeal panel shall rule upon the 
152.2 	petition. The panel shall consider the petition de novo. No order of the judicial appeal 
152.3 	panel granting a transfer, discharge, or provisional discharge shall be made effective 
152.4 	sooner than 15 days after it is issued. The panel may not consider petitions for relief 
152.5 	other than those considered by the special review board from which the appeal is taken. 
152.6 	The judicial appeal panel may not grant a transfer or provisional discharge on terms or 
152.7 	conditions that were not presented to the special review board.
152.8 		Subd. 4.Appeal. A party aggrieved by an order of the judicial appeal panel may 
152.9 	appeal that order as provided under section 253B.19, subdivision 5.

152.10 	EFFECTIVE DATE. This section is effective the day following final enactment 
152.11 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
152.12 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
152.13 	date of enactment.

152.14 	Sec. 10. Minnesota Statutes 2014, section 253D.29, subdivision 2, is amended to read:
152.15 		Subd. 2. Voluntary readmission to a secure facility. (a) After a committed person 
152.16 	has been transferred out of a secure facility pursuant to subdivision 1 and with the consent 
152.17 	of the executive director, a committed person may voluntarily return to a secure facility 
152.18 	for a period of up to 60 days.
152.19 	(b) If the committed person is not returned to the facility to which the person was 
152.20 	originally transferred pursuant to subdivision 1 within 60 days of being readmitted to a 
152.21 	secure facility, the transfer is revoked and the committed person shall remain in a secure 
152.22 	facility. The committed person shall immediately be notified in writing of the revocation.
152.23 	(c) Within 15 days of receiving notice of the revocation, the committed person may 
152.24 	petition the special review board judicial appeal panel for a review of the revocation. The 
152.25 	special review board judicial appeal panel shall review the circumstances of the revocation 
152.26 	and shall recommend to the judicial appeal panel decide whether or not the revocation 
152.27 	shall be upheld. The special review board judicial appeal panel may also recommend 
152.28 	order a new transfer at the time of the revocation hearing.
152.29 	(d) If the transfer has not been revoked and the committed person is to be returned 
152.30 	to the facility to which the committed person was originally transferred pursuant to 
152.31 	subdivision 1 with no substantive change to the conditions of the transfer ordered pursuant 
152.32 	to subdivision 1, no action by the special review board or judicial appeal panel is required.

152.33 	EFFECTIVE DATE. This section is effective the day following final enactment 
152.34 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
153.1 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
153.2 	date of enactment.

153.3 	Sec. 11. Minnesota Statutes 2014, section 253D.29, subdivision 3, is amended to read:
153.4 		Subd. 3. Revocation. (a) The executive director may revoke a transfer made pursuant 
153.5 	to subdivision 1 and require a committed person to return to a secure treatment facility if:
153.6 	(1) remaining in a nonsecure setting will not provide a reasonable degree of safety to 
153.7 	the committed person or others; or
153.8 	(2) the committed person has regressed in clinical progress so that the facility to 
153.9 	which the committed person was transferred is no longer sufficient to meet the committed 
153.10 	person's needs.
153.11 	(b) Upon the revocation of the transfer, the committed person shall be immediately 
153.12 	returned to a secure treatment facility. A report documenting reasons for revocation shall 
153.13 	be issued by the executive director within seven days after the committed person is 
153.14 	returned to the secure treatment facility. Advance notice to the committed person of the 
153.15 	revocation is not required.
153.16 	(c) The committed person must be provided a copy of the revocation report and 
153.17 	informed, orally and in writing, of the rights of a committed person under this section. The 
153.18 	revocation report shall be served upon the committed person and the committed person's 
153.19 	counsel. The report shall outline the specific reasons for the revocation including, but not 
153.20 	limited to, the specific facts upon which the revocation is based.
153.21 	(d) If a committed person's transfer is revoked, the committed person may re-petition 
153.22 	for transfer according to section 253D.27.
153.23 	(e) Any committed person aggrieved by a transfer revocation decision may petition 
153.24 	the special review board judicial appeal panel within seven days, exclusive of Saturdays, 
153.25 	Sundays, and legal holidays, after receipt of the revocation report for a review of the 
153.26 	revocation. The matter shall be scheduled within 30 days. The special review board 
153.27 	judicial appeal panel shall review the circumstances leading to the revocation and, after 
153.28 	considering the factors in subdivision 1, paragraph (b), shall recommend to the judicial 
153.29 	appeal panel decide whether or not the revocation shall be upheld. The special review 
153.30 	board judicial appeal panel may also recommend order a new transfer out of a secure 
153.31 	facility at the time of the revocation hearing.

153.32 	EFFECTIVE DATE. This section is effective the day following final enactment 
153.33 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
153.34 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
153.35 	date of enactment.

154.1 	Sec. 12. Minnesota Statutes 2014, section 253D.30, subdivision 3, is amended to read:
154.2 		Subd. 3. Review. A provisional discharge pursuant to this chapter shall not 
154.3 	automatically terminate. A full discharge shall occur only as provided in section 253D.31. 
154.4 	The terms of a provisional discharge continue unless the committed person requests and 
154.5 	is granted a change in the conditions of provisional discharge or unless the committed 
154.6 	person petitions the special review board judicial appeal panel for a full discharge and the 
154.7 	discharge is granted by the judicial appeal panel.

154.8 	EFFECTIVE DATE. This section is effective the day following final enactment 
154.9 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
154.10 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
154.11 	date of enactment.

154.12 	Sec. 13. Minnesota Statutes 2014, section 253D.30, subdivision 4, is amended to read:
154.13 		Subd. 4. Voluntary readmission. (a) With the consent of the executive director, a 
154.14 	committed person may voluntarily return to the Minnesota sex offender program from 
154.15 	provisional discharge for a period of up to 60 days.
154.16 	(b) If the committed person is not returned to provisional discharge status within 60 
154.17 	days of being readmitted to the Minnesota sex offender program, the provisional discharge 
154.18 	is revoked. The committed person shall immediately be notified of the revocation in 
154.19 	writing. Within 15 days of receiving notice of the revocation, the committed person may 
154.20 	request a review of the matter before the special review board judicial appeal panel. The 
154.21 	special review board judicial appeal panel shall review the circumstances of the revocation 
154.22 	and, after applying the standards in subdivision 5, paragraph (a), shall recommend to the 
154.23 	judicial appeal panel decide whether or not the revocation shall be upheld. The board 
154.24 	judicial appeal panel may recommend order a return to provisional discharge status.
154.25 	(c) If the provisional discharge has not been revoked and the committed person is to 
154.26 	be returned to provisional discharge, the Minnesota sex offender program is not required 
154.27 	to petition for a further review by the special review board judicial appeal panel unless the 
154.28 	committed person's return to the community results in substantive change to the existing 
154.29 	provisional discharge plan.

154.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
154.31 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
154.32 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
154.33 	date of enactment.

155.1 	Sec. 14. Minnesota Statutes 2014, section 253D.30, subdivision 5, is amended to read:
155.2 		Subd. 5. Revocation. (a) The executive director may revoke a provisional discharge 
155.3 	if either of the following grounds exist:
155.4 	(1) the committed person has departed from the conditions of the provisional 
155.5 	discharge plan; or
155.6 	(2) the committed person is exhibiting behavior which may be dangerous to self 
155.7 	or others.
155.8 	(b) The executive director may revoke the provisional discharge and, either orally 
155.9 	or in writing, order that the committed person be immediately returned to a Minnesota 
155.10 	sex offender program treatment facility. A report documenting reasons for revocation 
155.11 	shall be issued by the executive director within seven days after the committed person 
155.12 	is returned to the treatment facility. Advance notice to the committed person of the 
155.13 	revocation is not required.
155.14 	(c) The committed person must be provided a copy of the revocation report and 
155.15 	informed, orally and in writing, of the rights of a committed person under this section. 
155.16 	The revocation report shall be served upon the committed person, the committed person's 
155.17 	counsel, and the county attorneys of the county of commitment and the county of financial 
155.18 	responsibility. The report shall outline the specific reasons for the revocation, including 
155.19 	but not limited to the specific facts upon which the revocation is based.
155.20 	(d) An individual who is revoked from provisional discharge must successfully 
155.21 	re-petition the special review board and judicial appeal panel prior to being placed back 
155.22 	on provisional discharge.

155.23 	EFFECTIVE DATE. This section is effective the day following final enactment 
155.24 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
155.25 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
155.26 	date of enactment.

155.27 	Sec. 15. Minnesota Statutes 2014, section 253D.30, subdivision 6, is amended to read:
155.28 		Subd. 6.Appeal. Any committed person aggrieved by a revocation decision or any 
155.29 	interested person may petition the special review board judicial appeal panel within seven 
155.30 	days, exclusive of Saturdays, Sundays, and legal holidays, after receipt of the revocation 
155.31 	report for a review of the revocation. The matter shall be scheduled within 30 days. The 
155.32 	special review board judicial appeal panel shall review the circumstances leading to the 
155.33 	revocation and shall recommend to the judicial appeal panel decide whether or not the 
155.34 	revocation shall be upheld. The special review board judicial appeal panel may also 
155.35 	recommend order a new provisional discharge at the time of the revocation hearing.

156.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
156.2 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
156.3 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
156.4 	date of enactment.

156.5 	Sec. 16. Minnesota Statutes 2014, section 253D.31, is amended to read:
156.6 	253D.31 DISCHARGE.
156.7 	A person who is committed as a sexually dangerous person or a person with a sexual 
156.8 	psychopathic personality shall not be discharged unless it appears to the satisfaction of the 
156.9 	judicial appeal panel, after a hearing and recommendation by a majority of the special 
156.10 	review board, that the committed person is capable of making an acceptable adjustment to 
156.11 	open society, is no longer dangerous to the public, and is no longer in need of inpatient 
156.12 	treatment and supervision.
156.13 	In determining whether a discharge shall be recommended, the special review board 
156.14 	and judicial appeal panel shall consider whether specific conditions exist to provide a 
156.15 	reasonable degree of protection to the public and to assist the committed person in adjusting 
156.16 	to the community. If the desired conditions do not exist, the discharge shall not be granted.

156.17 	EFFECTIVE DATE. This section is effective the day following final enactment 
156.18 	and applies to all petitions for reduction in custody, appeals of revocation of transfers or 
156.19 	provisional discharges, or requests for review of pass-eligibility status filed on or after the 
156.20 	date of enactment.

156.21 	Sec. 17. Minnesota Statutes 2014, section 626.05, subdivision 2, is amended to read:
156.22 		Subd. 2.Peace officer. The term "peace officer," as used in sections 626.04 to 626.17, 
156.23 	means a person who is licensed as a peace officer in accordance with section 626.84, 
156.24 	subdivision 1, and who serves as a sheriff, deputy sheriff, police officer, conservation 
156.25 	officer, agent of the Bureau of Criminal Apprehension, agent of the Division of Alcohol 
156.26 	and Gambling Enforcement, University of Minnesota peace officer, Metropolitan Transit 
156.27 	police officer, Minnesota Department of Corrections Fugitive Apprehension Unit member, 
156.28 	Department of Human Services Office of Special Investigations Law Enforcement 
156.29 	Division officers, or State Patrol trooper as authorized by section 299D.03.

156.30 	Sec. 18. Minnesota Statutes 2014, section 626.84, subdivision 1, is amended to read:
156.31 		Subdivision 1.Definitions. For purposes of sections 626.84 to 626.863, the 
156.32 	following terms have the meanings given them:
157.1 	(a) "Board" means the Board of Peace Officer Standards and Training.
157.2 	(b) "Director" means the executive director of the board.
157.3 	(c) "Peace officer" means:
157.4 	(1) an employee or an elected or appointed official of a political subdivision or 
157.5 	law enforcement agency who is licensed by the board, charged with the prevention and 
157.6 	detection of crime and the enforcement of the general criminal laws of the state and who 
157.7 	has the full power of arrest, and shall also include the Minnesota State Patrol, agents of the 
157.8 	Division of Alcohol and Gambling Enforcement, state conservation officers, Metropolitan 
157.9 	Transit police officers, Department of Corrections Fugitive Apprehension Unit officers, 
157.10 	Department of Human Services Office of Special Investigations Law Enforcement 
157.11 	Division officers, and Department of Commerce Fraud Bureau Unit officers, and the 
157.12 	statewide coordinator of the Violent Crime Coordinating Council; and
157.13 	(2) a peace officer who is employed by a law enforcement agency of a federally 
157.14 	recognized tribe, as defined in United States Code, title 25, section 450b(e), and who 
157.15 	is licensed by the board.
157.16 	(d) "Part-time peace officer" means an individual licensed by the board whose 
157.17 	services are utilized by law enforcement agencies no more than an average of 20 hours per 
157.18 	week, not including time spent on call when no call to active duty is received, calculated 
157.19 	on an annual basis, who has either full powers of arrest or authorization to carry a 
157.20 	firearm while on active duty. The term shall apply even though the individual receives 
157.21 	no compensation for time spent on active duty, and shall apply irrespective of the title 
157.22 	conferred upon the individual by any law enforcement agency.
157.23 	(e) "Reserve officer" means an individual whose services are utilized by a law 
157.24 	enforcement agency to provide supplementary assistance at special events, traffic or 
157.25 	crowd control, and administrative or clerical assistance, and shall include reserve deputies, 
157.26 	special deputies, mounted or unmounted patrols, and all other employees or volunteers 
157.27 	performing reserve officer functions. A reserve officer's duties do not include enforcement 
157.28 	of the general criminal laws of the state, and the officer does not have full powers of arrest 
157.29 	or authorization to carry a firearm on duty.
157.30 	(f) "Law enforcement agency" means:
157.31 	(1) a unit of state or local government that is authorized by law to grant full powers 
157.32 	of arrest and to charge a person with the duties of preventing and detecting crime and 
157.33 	enforcing the general criminal laws of the state; and
157.34 	(2) subject to the limitations in section 626.93, a law enforcement agency of a 
157.35 	federally recognized tribe, as defined in United States Code, title 25, section 450b(e).
158.1 	(g) "Professional peace officer education" means a postsecondary degree program, 
158.2 	or a nondegree program for persons who already have a college degree, that is offered by 
158.3 	a college or university in Minnesota, designed for persons seeking licensure as a peace 
158.4 	officer, and approved by the board.

158.5 	Sec. 19.  REPEALER.
 158.6 	Minnesota Statutes 2014, section 253D.27, subdivisions 3 and 4, are repealed.

158.7 	ARTICLE 7
158.8 	HEALTH DEPARTMENT

158.9 	Section 1. Minnesota Statutes 2014, section 13.3806, subdivision 22, is amended to read:
158.10 		Subd. 22.Medical use of cannabis data. Data collected under the registry program 
158.11 	authorized under sections 152.22 to 152.37 are governed by sections 152.25, subdivision 
158.12 	1; 152.27, subdivision 8; 152.28, subdivision 2; and 152.37, subdivision 3.

158.13 	Sec. 2. Minnesota Statutes 2014, section 62J.495, subdivision 4, is amended to read:
158.14 		Subd. 4.Coordination with national HIT activities. (a) The commissioner, 
158.15 	in consultation with the e-Health Advisory Committee, shall update the statewide 
158.16 	implementation plan required under subdivision 2 and released June 2008, to be consistent 
158.17 	with the updated Federal HIT Strategic Plan released by the Office of the National 
158.18 	Coordinator in accordance with section 3001 of the HITECH Act. The statewide plan 
158.19 	shall meet the requirements for a plan required under section 3013 of the HITECH Act.
158.20 	(b) The commissioner, in consultation with the e-Health Advisory Committee, 
158.21 	shall work to ensure coordination between state, regional, and national efforts to support 
158.22 	and accelerate efforts to effectively use health information technology to improve the 
158.23 	quality and coordination of health care and the continuity of patient care among health 
158.24 	care providers, to reduce medical errors, to improve population health, to reduce health 
158.25 	disparities, and to reduce chronic disease. The commissioner's coordination efforts shall 
158.26 	include but not be limited to:
158.27 	(1) assisting in the development and support of health information technology 
158.28 	regional extension centers established under section 3012(c) of the HITECH Act to 
158.29 	provide technical assistance and disseminate best practices; and
158.30 	(2) providing supplemental information to the best practices gathered by regional 
158.31 	centers to ensure that the information is relayed in a meaningful way to the Minnesota 
158.32 	health care community.;
159.1 	(3) providing financial and technical support to Minnesota health care providers to 
159.2 	encourage implementation of admission, discharge and transfer alerts, and care summary 
159.3 	document exchange transactions and to evaluate the impact of health information 
159.4 	technology on cost and quality of care;
159.5 	(4) providing educational resources and technical assistance to health care providers 
159.6 	and patients related to state and national privacy, security, and consent laws governing 
159.7 	clinical health information. In carrying out these activities, the commissioner's technical 
159.8 	assistance does not constitute legal advice; and
159.9 	(5) assessing Minnesota's legal, financial, and regulatory framework for health 
159.10 	information exchange, and making recommendations for modifications that would 
159.11 	strengthen the ability of Minnesota health care providers to securely exchange data 
159.12 	in compliance with patient preferences and in a way that is efficient and financially 
159.13 	sustainable.
159.14 	(c) The commissioner, in consultation with the e-Health Advisory Committee, shall 
159.15 	monitor national activity related to health information technology and shall coordinate 
159.16 	statewide input on policy development. The commissioner shall coordinate statewide 
159.17 	responses to proposed federal health information technology regulations in order to ensure 
159.18 	that the needs of the Minnesota health care community are adequately and efficiently 
159.19 	addressed in the proposed regulations. The commissioner's responses may include, but 
159.20 	are not limited to:
159.21 	(1) reviewing and evaluating any standard, implementation specification, or 
159.22 	certification criteria proposed by the national HIT standards committee;
159.23 	(2) reviewing and evaluating policy proposed by the national HIT policy committee 
159.24 	relating to the implementation of a nationwide health information technology infrastructure;
159.25 	(3) monitoring and responding to activity related to the development of quality 
159.26 	measures and other measures as required by section 4101 of the HITECH Act. Any 
159.27 	response related to quality measures shall consider and address the quality efforts required 
159.28 	under chapter 62U; and
159.29 	(4) monitoring and responding to national activity related to privacy, security, and 
159.30 	data stewardship of electronic health information and individually identifiable health 
159.31 	information.
159.32 	(d) To the extent that the state is either required or allowed to apply, or designate an 
159.33 	entity to apply for or carry out activities and programs under section 3013 of the HITECH 
159.34 	Act, the commissioner of health, in consultation with the e-Health Advisory Committee 
159.35 	and the commissioner of human services, shall be the lead applicant or sole designating 
160.1 	authority. The commissioner shall make such designations consistent with the goals and 
160.2 	objectives of sections 62J.495 to 62J.497 and 62J.50 to 62J.61.
160.3 	(e) The commissioner of human services shall apply for funding necessary to 
160.4 	administer the incentive payments to providers authorized under title IV of the American 
160.5 	Recovery and Reinvestment Act.
160.6 	(f) The commissioner shall include in the report to the legislature information on the 
160.7 	activities of this subdivision and provide recommendations on any relevant policy changes 
160.8 	that should be considered in Minnesota.

160.9 	Sec. 3. Minnesota Statutes 2014, section 62J.496, subdivision 1, is amended to read:
160.10 		Subdivision 1.Account establishment. (a) An account is established to:
160.11 	(1) finance the purchase of certified electronic health records or qualified electronic 
160.12 	health records as defined in section 62J.495, subdivision 1a;
160.13 	(2) enhance the utilization of electronic health record technology, which may include 
160.14 	costs associated with upgrading the technology to meet the criteria necessary to be a 
160.15 	certified electronic health record or a qualified electronic health record;
160.16 	(3) train personnel in the use of electronic health record technology; and
160.17 	(4) improve the secure electronic exchange of health information.
160.18 	(b) Amounts deposited in the account, including any grant funds obtained through 
160.19 	federal or other sources, loan repayments, and interest earned on the amounts shall 
160.20 	be used only for awarding loans or loan guarantees, as a source of reserve and security 
160.21 	for leveraged loans, for activities authorized in section 62J.495, subdivision 4, or for 
160.22 	the administration of the account.
160.23 	(c) The commissioner may accept contributions to the account from private sector 
160.24 	entities subject to the following provisions:
160.25 	(1) the contributing entity may not specify the recipient or recipients of any loan 
160.26 	issued under this subdivision;
160.27 	(2) the commissioner shall make public the identity of any private contributor to the 
160.28 	loan fund, as well as the amount of the contribution provided;
160.29 	(3) the commissioner may issue letters of commendation or make other awards that 
160.30 	have no financial value to any such entity; and
160.31 	(4) a contributing entity may not specify that the recipient or recipients of any loan 
160.32 	use specific products or services, nor may the contributing entity imply that a contribution 
160.33 	is an endorsement of any specific product or service.
161.1 	(d) The commissioner may use the loan funds to reimburse private sector entities 
161.2 	for any contribution made to the loan fund. Reimbursement to private entities may not 
161.3 	exceed the principle amount contributed to the loan fund.
161.4 	(e) The commissioner may use funds deposited in the account to guarantee, or 
161.5 	purchase insurance for, a local obligation if the guarantee or purchase would improve 
161.6 	credit market access or reduce the interest rate applicable to the obligation involved.
161.7 	(f) The commissioner may use funds deposited in the account as a source of revenue 
161.8 	or security for the payment of principal and interest on revenue or general obligation 
161.9 	bonds issued by the state if the proceeds of the sale of the bonds will be deposited into 
161.10 	the loan fund.

161.11 	Sec. 4. Minnesota Statutes 2014, section 152.27, subdivision 2, is amended to read:
161.12 		Subd. 2.Commissioner duties. (a) The commissioner shall:
161.13 	(1) give notice of the program to health care practitioners in the state who are 
161.14 	eligible to serve as health care practitioners and explain the purposes and requirements 
161.15 	of the program;
161.16 	(2) allow each health care practitioner who meets or agrees to meet the program's 
161.17 	requirements and who requests to participate, to be included in the registry program to 
161.18 	collect data for the patient registry;
161.19 	(3) allow each health care practitioner who meets the requirements of subdivision 8, 
161.20 	and who requests access for a permissible purpose, to have limited access to a patient's 
161.21 	registry information;
161.22 	(3) (4) provide explanatory information and assistance to each health care 
161.23 	practitioner in understanding the nature of therapeutic use of medical cannabis within 
161.24 	program requirements;
161.25 	(4) (5) create and provide a certification to be used by a health care practitioner 
161.26 	for the practitioner to certify whether a patient has been diagnosed with a qualifying 
161.27 	medical condition and include in the certification an option for the practitioner to certify 
161.28 	whether the patient, in the health care practitioner's medical opinion, is developmentally or 
161.29 	physically disabled and, as a result of that disability, the patient is unable to self-administer 
161.30 	medication or acquire medical cannabis from a distribution facility;
161.31 	(5) (6) supervise the participation of the health care practitioner in conducting 
161.32 	patient treatment and health records reporting in a manner that ensures stringent security 
161.33 	and record-keeping requirements and that prevents the unauthorized release of private 
161.34 	data on individuals as defined by section 13.02;
162.1 	(6) (7) develop safety criteria for patients with a qualifying medical condition as a 
162.2 	requirement of the patient's participation in the program, to prevent the patient from 
162.3 	undertaking any task under the influence of medical cannabis that would constitute 
162.4 	negligence or professional malpractice on the part of the patient; and
162.5 	(7) (8) conduct research and studies based on data from health records submitted to 
162.6 	the registry program and submit reports on intermediate or final research results to the 
162.7 	legislature and major scientific journals. The commissioner may contract with a third 
162.8 	party to complete the requirements of this clause. Any reports submitted must comply 
162.9 	with section 152.28, subdivision 2.
162.10 	(b) If the commissioner wishes to add a delivery method under section 152.22, 
162.11 	subdivision 6, or a qualifying medical condition under section 152.22, subdivision 14, the 
162.12 	commissioner must notify the chairs and ranking minority members of the legislative policy 
162.13 	committees having jurisdiction over health and public safety of the addition and the reasons 
162.14 	for its addition, including any written comments received by the commissioner from the 
162.15 	public and any guidance received from the task force on medical cannabis research, by 
162.16 	January 15 of the year in which the commissioner wishes to make the change. The change 
162.17 	shall be effective on August 1 of that year, unless the legislature by law provides otherwise.

162.18 	Sec. 5. Minnesota Statutes 2014, section 152.27, is amended by adding a subdivision 
162.19 	to read:
162.20 		Subd. 8.Access to registry data. (a) Notwithstanding section 152.31, a health 
162.21 	care practitioner may access a patient's registry information to the extent the information 
162.22 	relates specifically to a current patient, to whom the health care practitioner is:
162.23 	(1) prescribing or considering prescribing any controlled substance;
162.24 	(2) providing emergency medical treatment for which access to the data may be 
162.25 	necessary; or
162.26 	(3) providing other medical treatment for which access to the data may be necessary 
162.27 	and the patient has consented to access to the registry account information, and with the 
162.28 	provision that the health care practitioner remains responsible for the use or misuse of data 
162.29 	accessed by a delegated agent or employee.
162.30 	(b) A health care practitioner who is authorized to access the patient registry under 
162.31 	this subdivision may be registered to electronically access limited data in the medical 
162.32 	cannabis patient registry. If the data is accessed electronically, the health care practitioner 
162.33 	shall implement and maintain a comprehensive information security program that contains 
162.34 	administrative, technical, and physical safeguards that are appropriate to the user's size 
162.35 	and complexity, and the sensitivity of the personal information obtained. The health care 
163.1 	practitioner shall identify reasonably foreseeable internal and external risks to the security, 
163.2 	confidentiality, and integrity of personal information that could result in the unauthorized 
163.3 	disclosure, misuse, or other compromise of the information and assess the sufficiency of 
163.4 	any safeguards in place to control the risks.
163.5 	(c) When requesting access based on patient consent, a health care practitioner shall 
163.6 	warrant that the request:
163.7 	(1) contains no information known to the provider to be false;
163.8 	(2) accurately states the patient's desire to have health records disclosed or that 
163.9 	there is specific authorization in law; and
163.10 	(3) does not exceed any limits imposed by the patient in the consent.
163.11 	(d) The commissioner shall maintain a log of all persons who access the data for at 
163.12 	least three years and shall ensure that any health care practitioner agrees to comply with 
163.13 	paragraph (b) before attaining access to the data.

163.14 	Sec. 6. Minnesota Statutes 2014, section 152.33, is amended by adding a subdivision 
163.15 	to read:
163.16 		Subd. 7.Improper access to registry; criminal penalty. In addition to any 
163.17 	other applicable penalty in law, a person who intentionally makes a false statement or 
163.18 	misrepresentation to gain access to the patient registry under section 152.27, subdivision 8, 
163.19 	or otherwise accesses the patient registry under false pretenses, is guilty of a misdemeanor 
163.20 	punishable by imprisonment for not more that 90 days or by payment of a fine of not more 
163.21 	than $1,000, or both. The penalty is in addition to any other penalties that may apply for 
163.22 	making a false statement, misrepresentation, or unauthorized acquisition of not public data.

163.23 	Sec. 7. COST AND BENEFIT ANALYSIS; HEALTH CARE SYSTEM 
163.24 	PROPOSALS.
 163.25 		Subdivision 1.Contract for analysis of proposals. The commissioner of health 
163.26 	shall contract with the University of Minnesota School of Public Health to conduct an 
163.27 	analysis of the costs and benefits of up to three specific proposals that seek to create a 
163.28 	health care system with increased access, greater affordability, lower costs, and improved 
163.29 	quality of care in comparison to the current system.
163.30 		Subd. 2.Plans. The commissioner of health, with input from the commissioners 
163.31 	of human services and commerce, legislators, and other stakeholders, shall submit to the 
163.32 	University of Minnesota the following proposals:
163.33 	(1) a free-market insurance-based competition approach;
163.34 	(2) a universal health care plan designed to meet the following principles:
164.1 	(i) ensure all Minnesotans receive quality health care; 
164.2 	(ii) cover all necessary care, including all coverage currently required by law, 
164.3 	complete mental health services, chemical dependency treatment, prescription drugs, 
164.4 	medical equipment and supplies, dental care, long-term care, and home care services;
164.5 	(iii) allow patients to choose their own providers; and
164.6 	(iv) use premiums based on ability to pay; and
164.7 	(3) a third alternative may be submitted by the commissioner that offers a different 
164.8 	approach.
164.9 		Subd. 3.Proposal analysis. (a) The analysis of each proposal must measure the 
164.10 	impact on total public and private health care spending in Minnesota that would result 
164.11 	from each proposal, including spending by individuals. "Total public and private health 
164.12 	care spending" means spending on all medical care, including dental care, prescription 
164.13 	drugs, medical equipment and supplies, complete mental health services, chemical 
164.14 	dependency treatment, long-term care, and home care services as well as all of the costs 
164.15 	for administering, delivering, and paying for the care. The analysis of total health care 
164.16 	spending shall include whether there are savings or additional costs compared to the 
164.17 	existing system due to:
164.18 	(1) increased or reduced insurance, billing, underwriting, marketing, and other 
164.19 	administrative functions;
164.20 	(2) changes in access to and timely and appropriate use of medical care;
164.21 	(3) availability and take-up of health insurance coverage;
164.22 	(4) market-driven or negotiated prices on medical services and products, including 
164.23 	pharmaceuticals;
164.24 	(5) shortages or excess capacity of medical facilities and equipment;
164.25 	(6) increased or decreased utilization, better health outcomes, increased wellness 
164.26 	due to prevention, early intervention, and health-promoting activities;
164.27 	(7) payment reforms;
164.28 	(8) coordination of care; and
164.29 	(9) to the extent possible given available data and resources, non-health care impacts 
164.30 	on state and local expenditures such as reduced out-of-home placement or crime costs 
164.31 	due to mental health or chemical dependency coverage.
164.32 	(b) To the extent possible given available data and resources, the analysis must also 
164.33 	estimate for each proposal job losses or gains in health care and elsewhere in the economy 
164.34 	due to implementation of the reforms.
164.35 	(c) The analysis shall assume that the provisions in each proposal are not preempted 
164.36 	by federal law or that the federal government gives a waiver to the preemption.
165.1 	(d) The commissioner shall provide preliminary findings to the chairs and ranking 
165.2 	minority members of the legislative committees with jurisdiction over health and human 
165.3 	services policy and finance by March 15, 2017, and a final report by October 1, 2017. For 
165.4 	the optional third alternative approach described in subdivision 2, clause (3), and for the 
165.5 	analyses described in paragraph (a), clause (9), and paragraph (b), a final report is due 
165.6 	by March 15, 2018.

165.7 	Sec. 8. HEALTH RISK LIMITS.
 165.8 	Fifteen points must be assigned by the Department of Health pursuant to Minnesota 
165.9 	Rules, part 4720.9020, if the department has confirmed an exceedance of a health risk limit 
165.10 	under Minnesota Rules, parts 4717.7500 to 4717.7900, within the past 36 calendar months.

165.11 	EFFECTIVE DATE. This section is effective the day following final enactment 
165.12 	and applies to Minnesota Rules, part 4720.9020, until the Department of Health modifies 
165.13 	part 4720.9020.

165.14 	Sec. 9. CONTAMINATED PRIVATE WELLS.
 165.15 	Ten priority points must be assigned by the Department of Health pursuant to 
165.16 	Minnesota Rules, part 4720.9020, if a drinking water advisory has been issued or a special 
165.17 	well construction area has been established by the Department of Health.

165.18 	EFFECTIVE DATE. This section is effective the day following final enactment 
165.19 	and applies to Minnesota Rules, part 4720.9020, until the Department of Health modifies 
165.20 	part 4720.9020.

165.21 	ARTICLE 8
165.22 	HEALTH-RELATED LICENSING BOARDS

165.23 	Section 1. Minnesota Statutes 2014, section 214.075, subdivision 3, is amended to read:
165.24 		Subd. 3.Consent form; fees; fingerprints. (a) In order to effectuate the federal 
165.25 	and state level, fingerprint-based criminal background check, the applicant or licensee 
165.26 	must submit a completed criminal history records check consent form and a full set of 
165.27 	fingerprints to the respective health-related licensing board or a designee in the manner 
165.28 	and form specified by the board.
165.29 	(b) The applicant or licensee is responsible for all fees associated with preparation of 
165.30 	the fingerprints, the criminal records check consent form, and the criminal background 
165.31 	check. The fees for the criminal records background check shall be set by the BCA and 
166.1 	the FBI and are not refundable. The fees shall be submitted to the respective health-related 
166.2 	licensing board by the applicant or licensee as prescribed by the respective board.
166.3 	(c) All fees received by the health-related licensing boards under this subdivision 
166.4 	shall be deposited in a dedicated account accounts in the special revenue fund and are 
166.5 	appropriated to the Board of Nursing Home Administrators for the administrative services 
166.6 	unit health-related licensing boards to pay for the criminal background checks conducted 
166.7 	by the Bureau of Criminal Apprehension and Federal Bureau of Investigation.

166.8 	ARTICLE 9
166.9 	HUMAN SERVICES FORECAST ADJUSTMENTS

166.10	Section 1. HUMAN SERVICES APPROPRIATION.
 	
166.11 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
166.12 	in parentheses, are subtracted from the appropriations in Laws 2015, chapter 71, article 
166.13 	13, from the general fund or any fund named to the Department of Human Services for 
166.14 	the purposes specified in this article, to be available for the fiscal year indicated for each 
166.15 	purpose. The figures "2016" and "2017" used in this article mean that the appropriations 
166.16 	listed under them are available for the fiscal years ending June 30, 2016, or June 30, 2017, 
166.17 	respectively. "The first year" is fiscal year 2016. "The second year" is fiscal year 2017. 
166.18 	"The biennium" is fiscal years 2016 and 2017.

166.19				APPROPRIATIONS
	
166.20				Available for the Year
	
166.21				Ending June 30
	
166.22					2016
		2017

166.23
166.24	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

166.25	Subdivision 1.Total Appropriation
 	$
	(615,912,000)
	$
	(518,891,000)

166.26	Appropriations by Fund
	
166.27	General Fund
	(307,806,000)
	(246,029,000)
	
166.28
166.29	Health Care Access 
Fund
	(289,770,000)
	(277,101,000)
	
166.30	Federal TANF
	(18,336,000)
	4,239,000

166.31	Subd. 2.Forecasted Programs

166.32	(a) MFIP/DWP

166.33	Appropriations by Fund
	
166.34	General Fund
	9,833,000
	(8,799,000)
	
166.35	Federal TANF
	(20,225,000)
	4,212,000

167.1	(b) MFIP Child Care Assistance
		(23,094,000)
		(7,760,000)

167.2	(c) General Assistance
		(2,120,000)
		(1,078,000)

167.3	(d) Minnesota Supplemental Aid
		(1,613,000)
		(1,650,000)

167.4	(e) Group Residential Housing
		(8,101,000)
		(7,954,000)

167.5	(f) Northstar Care for Children
		2,231,000
		4,496,000

167.6	(g) MinnesotaCare
		(227,821,000)
		(230,027,000)
	
167.7 	These appropriations are from the health care 
167.8 	access fund.

167.9	(h) Medical Assistance

167.10	Appropriations by Fund
	
167.11	General Fund
	(294,773,000)
	(243,700,000)
	
167.12
167.13	Health Care Access 
Fund
	(61,949,000)
	(47,074,000)

167.14	(i) Alternative Care Program
		-0-
		-0-

167.15	(j) CCDTF Entitlements
		9,831,000
		20,416,000

167.16	Subd. 3.Technical Activities
 		1,889,000
		27,000
	
167.17 	These appropriations are from the federal 
167.18 	TANF fund.

167.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

167.20 	ARTICLE 10
167.21 	HEALTH AND HUMAN SERVICES APPROPRIATIONS

167.22	Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
 	
167.23 	The sums shown in the columns marked "Appropriations" are added to or, if shown 
167.24 	in parentheses, subtracted from the appropriations in Laws 2015, chapter 71, article 14, to 
167.25 	the agencies and for the purposes specified in this act. The appropriations are from the 
167.26 	general fund or other named fund and are available for the fiscal years indicated for each 
167.27 	purpose. The figures "2016" and "2017" used in this act mean that the addition to or 
167.28 	subtraction from the appropriation listed under them is available for the fiscal year ending 
167.29 	June 30, 2016, or June 30, 2017, respectively. Supplemental appropriations and reductions 
167.30 	to appropriations for the fiscal year ending June 30, 2016, are effective the day following 
167.31 	final enactment unless a different effective date is explicit.

168.1				APPROPRIATIONS
	
168.2				Available for the Year
	
168.3				Ending June 30
	
168.4					2016
		2017

168.5
168.6	Sec. 2. COMMISSIONER OF HUMAN 
SERVICES

168.7	Subdivision 1.Total Appropriation 		
6,851,000
		184,030,000

168.8	Appropriations by Fund
	
168.9		2016
	2017
	
168.10	General	
2,116,000	
131,700,000
	
168.11
168.12	State Government 
Special Revenue
	-0-	
(3,709,000)
	
168.13	Health Care Access
	4,735,000
	56,039,000
	
168.14	Federal TANF
	-0-
	-0-

168.15	Subd. 2.Central Office Operations

168.16	(a) Operations

168.17	Appropriations by Fund
	
168.18	General
	-0-
	3,426,000
	
168.19
168.20	State Government 
Special Revenue 
	-0-
	(3,709,000)
	
168.21	Health Care Access
	-0-
	425,000
	
168.22 	Base adjustment. The general fund base is 
168.23 	reduced by $1,145,000 in fiscal year 2018 
168.24 	and $1,225,000 in fiscal year 2019. The 
168.25 	health care access fund base is reduced by 
168.26 	$375,000 in fiscal years 2018 and 2019.

168.27	(b) Children and Families
		-0-		
262,000
	
168.28 	Base adjustment. The general fund base 
168.29 	is reduced by $147,000 in fiscal years 2018 
168.30 	and 2019.

168.31	(c) Health Care
		-0-		
1,068,000
	
168.32 	Base adjustment. The general fund base 
168.33 	is reduced by $464,000 in fiscal years 2018 
168.34 	and 2019.

168.35	(d) Continuing Care
		-0-		
534,000
	
169.1 	Study of home and community-based 
169.2 	services workforce. $414,000 in fiscal 
169.3 	year 2017 and $621,000 in fiscal year 
169.4 	2018 are to complete a study of home and 
169.5 	community-based services workforce and its 
169.6 	impact on service access. The commissioner 
169.7 	may also use surveys or other methods to 
169.8 	complete this study. On January 1, 2018, 
169.9 	the commissioner shall report the findings 
169.10 	of the study, including recommendations 
169.11 	on how to address access to services, and 
169.12 	recommendations on a higher reimbursement 
169.13 	rate for staff providing services to individuals 
169.14 	with higher home care ratings, case mixes, 
169.15 	or levels of care, to the chairs and ranking 
169.16 	minority members of the legislative 
169.17 	committees with jurisdiction over health and 
169.18 	human services policy and finance and labor 
169.19 	and industry. This is a onetime appropriation.
169.20 	Base Adjustment. The general fund base 
169.21 	is increased by $447,000 in fiscal year 2018 
169.22 	and reduced by $174,000 in fiscal year 2019.

169.23	(e) Community Supports
		-0-
		962,000
	
169.24 	Base Adjustment. The general fund base 
169.25 	is increased by $538,000 in fiscal year 2018 
169.26 	and $428,000 in fiscal year 2019.

169.27	Subd. 3.Forecasted Programs

169.28	(a) MFIP/DWP

169.29	Appropriations by Fund
	
169.30	General
		3,242,000
	
169.31	Federal TANF
		23,660,000

169.32	(b) MFIP Child Care Assistance
		-0-		
14,123,000

169.33	(c) General Assistance
		-0-		
-0-

169.34	(d) MN Supplemental Assistance
		-0-		
-0-

170.1	(e) Group Residential Housing
		-0-
		-0-

170.2	(f) Northstar Care for Children
		-0-
		-0-

170.3	(g) MinnesotaCare
		-0-
		3,985,000
	
170.4 	These appropriations are from the health care 
170.5 	access fund.

170.6	(h) Medical Assistance

170.7	Appropriations by Fund
	
170.8	General
	(4,735,000)
	(11,941,000)
	
170.9	Health Care Access
	4,735,000
	51,629,000
	
170.10 	The health care access fund is for forecast 
170.11 	costs of adults without children who are 
170.12 	eligible under Minnesota Statutes, section 
170.13 	256B.055, subdivision 15.

170.14	(i) Alternative Care
		-0-
		-0-

170.15	(j) CD Treatment Fund
		-0-
		105,000

170.16	Subd. 4.Grant Programs

170.17	(a) Support Services Grants
		-0-
		-0-

170.18	(b) BSF Child Care Assistance Grants
		-0-
		6,899,000
	
170.19 	Base Adjustment. The general fund base is 
170.20 	increased by $24,578,000 in fiscal year 2018 
170.21 	and $32,266,000 in fiscal year 2019.

170.22	(c) Child Care Development Grants
		-0-
		-0-
	
170.23 	Child Care Provider Grants. The general 
170.24 	fund base is $1,000,000 in fiscal year 
170.25 	2018 and $2,000,000 in fiscal year 2019 
170.26 	for contracts with child care providers to 
170.27 	address shortages in the supply of quality 
170.28 	child care which may include one or more 
170.29 	of the following: care for children who are 
170.30 	homeless or have special needs, care for 
170.31 	infants or toddlers, or child care located in 
171.1 	an area where the availability of child care 
171.2 	is limited.
171.3 	Base Adjustment. The general fund base is 
171.4 	increased by $1,000,000 in fiscal year 2018 
171.5 	and $2,000,000 in fiscal year 2019.

171.6	(d) Child Support Enforcement Grants
		-0-		
-0- 

171.7	(e) Children's Services Grants
		-0-
		800,000
	
171.8 	American Indian Child Welfare Initiative.
171.9 	$800,000 in fiscal year 2017 is for planning 
171.10 	efforts to expand the American Indian Child 
171.11 	Welfare Initiative. Of this appropriation, 
171.12 	$400,000 is for grants to the Mille Lacs Band 
171.13 	of Ojibwe and $400,000 is for grants to Red 
171.14 	Lake Nation. This is a onetime appropriation.
171.15 	Base Adjustment. The general fund base 
171.16 	is reduced by $800,000 in fiscal years 2018 
171.17 	and 2019.

171.18	(f) Children and Community Service Grants		
-0-		
1,900,000
	
171.19 	White Earth Band of Ojibwe Human 
171.20 	Services Initiative Project. $1,400,000 
171.21 	in fiscal year 2017 is for a grant to the 
171.22 	White Earth Band of Ojibwe for the direct 
171.23 	implementation and administrative costs of 
171.24 	the White Earth Human Service Initiative 
171.25 	Project authorized under Laws 2011, First 
171.26 	Special Session chapter 9, article 9, section 
171.27 	18.
171.28 	Red Lake Nation Human Services 
171.29 	Initiative Project. $500,000 in fiscal year 
171.30 	2017 is for a grant to the Red Lake Nation for 
171.31 	the direct implementation and administrative 
171.32 	costs of the Red Lake Human Service 
171.33 	Initiative Project authorized under Minnesota 
172.1 	Statutes, section 256.01, subdivision 2, 
172.2 	paragraph (a), clause (7).

172.3	(g) Children and Economic Support Grants
		-0-		
4,769,000
	
172.4 	Grants to Counties for Child Care 
172.5 	Inspections. $4,769,000 in fiscal year 2017 
172.6 	is for grants to counties to conduct annual 
172.7 	inspections of family child care providers 
172.8 	licensed under Minnesota Statutes, chapter 
172.9 	245A, and Minnesota Rules, chapter 9502.

172.10	(h) Health Care Grants
		-0-		
-0-

172.11	(i) Other Long-Term Care Grants
		-0-		
(1,725,000)

172.12	(j) Aging and Adult Services Grants
		-0-		
-0-

172.13	(k) Deaf and Hard-of-Hearing Grants
		-0-		
-0-

172.14	(l) Disabilities Grants
		-0-		
65,000

172.15	(m) Adult Mental Health Grants
		-0-		
3,715,000
	
172.16 	Community-Based Competency 
172.17 	Restoration. $1,000,000 in fiscal year 2017 
172.18 	is for adult mental health grants for planning 
172.19 	and development of local, community-based 
172.20 	competency restoration services. The 
172.21 	base appropriation in fiscal year 2018 is 
172.22 	$1,000,000. The base appropriation in fiscal 
172.23 	year 2019 is $0.
172.24 	Forensic Assertive Community Treatment.
172.25 	$200,000 in fiscal year 2017 is for adult 
172.26 	mental health grants under Minnesota 
172.27 	Statutes, section 256B.0622, subdivision 12, 
172.28 	to establish new forensic assertive community 
172.29 	treatment teams. The base appropriation in 
172.30 	fiscal year 2018 is $1,000,000. The base 
172.31 	appropriation in fiscal year 2019 is $0.
172.32 	Crisis Housing Assistance Program. The 
172.33 	general fund appropriation for the crisis 
173.1 	housing assistance program is reduced by 
173.2 	$300,000 in fiscal year 2017. The general 
173.3 	fund appropriation is increased by $300,000 
173.4 	in fiscal year 2017 for expanding eligibility 
173.5 	to include persons with serious mental illness 
173.6 	in article 4, section 3.
173.7 	Base Adjustment. The general fund base is 
173.8 	increased by $200,000 in fiscal year 2018 and 
173.9 	is reduced by $1,000,000 in fiscal year 2019.

173.10	(n) Child Mental Health Grants
		-0-		
-0-
	
173.11 	Child and Adolescent Behavioral Health 
173.12 	Services Grant. $1,500,000 in fiscal year 
173.13 	2018 and $1,500,000 in fiscal year 2019 
173.14 	from the general fund is for children's mental 
173.15 	health grants under Minnesota Statutes, 
173.16 	section 245.4889, subdivision 1, paragraph 
173.17 	(a), clause (17).
173.18 	Base Adjustment. The general fund base is 
173.19 	increased by $1,500,000 in fiscal years 2018 
173.20 	and 2019.

173.21
173.22	(o) Chemical Dependency Treatment Support 
Grants
		-0-		
800,000
	
173.23 	Community Addiction Recovery 
173.24 	Enterprise Brainerd. $800,000 in fiscal 
173.25 	year 2017 is from the general fund for 
173.26 	a grant to a tribal provider to transition 
173.27 	the state-operated Chemical Additional 
173.28 	Recovery Enterprise (C.A.R.E.) program in 
173.29 	Brainerd.
173.30 	Base Adjustment. The general fund base is 
173.31 	reduced by $400,000 in fiscal year 2018 and 
173.32 	$600,000 in fiscal year 2019. In fiscal year 
173.33 	2020, the base for this appropriation shall be 
173.34 	$0.

174.1	Subd. 5.DCT State-Operated Services

174.2
174.3	(a) DCT State-Operated Services Mental 
Health
		1,256,000		
42,680,000
	
174.4 	$14,000,000 in fiscal year 2017 is from the 
174.5 	general fund to restore funds transferred 
174.6 	to the enterprise fund for state-operated 
174.7 	community services in fiscal year 2016. This 
174.8 	is a onetime appropriation.
174.9 	State-Operated Services Operating 
174.10 	Adjustment. $1,256,000 in fiscal year 
174.11 	2016 and $2,888,000 in fiscal year 2017 is 
174.12 	for state-operated services mental health 
174.13 	services operating adjustments. Fiscal year 
174.14 	2016 funding is available the day following 
174.15 	final enactment.
174.16 	Base Adjustment. The general fund base is 
174.17 	reduced by $11,156,000 in fiscal year 2018 
174.18 	and $12,586,000 in fiscal year 2019.

174.19
174.20	(b) DCT State-Operated Services Enterprise 
Services
		-0-
		17,665,000
	
174.21 	State-Operated Community Services.
174.22 	$16,275,000 in fiscal year 2017 is from 
174.23 	the general fund for the Minnesota 
174.24 	state-operated community services program. 
174.25 	The commissioner must transfer $16,275,000 
174.26 	in fiscal year 2017 to the enterprise fund 
174.27 	for Minnesota state-operated community 
174.28 	services. Of this amount, $14,000,000 is a 
174.29 	onetime appropriation.
174.30 	Community Addiction Recovery 
174.31 	Enterprise Brainerd. $1,390,000 in fiscal 
174.32 	year 2017 is from the general fund to be 
174.33 	used to ready the site of the Chemical 
174.34 	Additional Recovery Enterprise (C.A.R.E.) 
174.35 	program located in Brainerd and pay staff 
175.1 	separation costs associated with transitioning 
175.2 	the program to a tribal provider. The 
175.3 	commissioner must transfer $1,390,000 in 
175.4 	fiscal year 2017 to the enterprise fund for 
175.5 	C.A.R.E.
175.6 	Base Adjustment. The general fund base is 
175.7 	reduced by $14,709,000 in fiscal year 2018 
175.8 	and $16,334,000 in fiscal year 2019.

175.9175.10
	(c) DCT State-Operated Services Minnesota 
Security Hospital		
2,200,000		
32,106,000
	
175.11 	Competency Restoration Program.
175.12 	$6,564,000 in fiscal year 2017 is from the 
175.13 	general fund for the development of a new 
175.14 	residential competency restoration program 
175.15 	to be operated by state-operated forensic 
175.16 	services.
175.17 	State-Operated Services Operating 
175.18 	Adjustment. $2,200,000 in fiscal year 2016 
175.19 	and $3,302,000 in fiscal year 2017 from the 
175.20 	general fund is for state-operated services 
175.21 	forensic services operating adjustments. 
175.22 	Fiscal year 2016 funding is available the day 
175.23 	following final enactment.
175.24 	Base Adjustment. The general fund base is 
175.25 	increased by $13,066,000 in fiscal year 2018 
175.26 	and $28,190,000 in fiscal year 2019.

175.27
175.28	Subd. 6.DCT Minnesota Sex Offender 
Program
 		3,395,000
		10,245,000
	
175.29 	Minnesota Sex Offender Program 
175.30 	Operating Adjustment. $3,395,000 in fiscal 
175.31 	year 2016 and $4,669,000 in fiscal year 2017 
175.32 	are from the general fund for the Minnesota 
175.33 	sex offender program operating adjustments. 
175.34 	Fiscal year 2016 funding is available the day 
175.35 	following final enactment.
176.1 	Base Adjustment. The general fund base is 
176.2 	reduced by $1,837,000 in fiscal years 2018 
176.3 	and 2019.

176.4	Subd. 7.Technical Activities
 		-0-		
(23,660,000)
	
176.5 	This appropriation is from the federal TANF 
176.6 	fund.
176.7 	Base Adjustment. The TANF base is 
176.8 	reduced by $442,000 in fiscal year 2018 and 
176.9 	by $621,000 in fiscal year 2019.

176.10	Sec. 3. COMMISSIONER OF HEALTH

176.11	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	11,511,000

176.12	Appropriations by Fund
	
176.13		2016
	2017
	
176.14	General
	-0-
	11,011,000
	
176.15	Health Care Access
	-0-
	500,000
	
176.16 	The appropriation modifications for 
176.17 	each purpose are shown in the following 
176.18 	subdivisions.

176.19	Subd. 2.Health Improvement

176.20	Appropriations by Fund
	
176.21	General
	-0-
	10,781,000
	
176.22	Health Care Access
	-0-
	500,000
	
176.23 	Evidence-Based Home Visiting.
176.24 	$10,731,000 of the general fund appropriation 
176.25 	in fiscal year 2017 is for evidence-based 
176.26 	home visiting services for pregnant and 
176.27 	parenting teens.
176.28 	Medical Cannabis Patient Registry.
176.29 	$50,000 of the general fund appropriation in 
176.30 	fiscal year 2017 is for updates to the medical 
176.31 	cannabis patient registry. This is a onetime 
176.32 	appropriation.
177.1 	Health Care System Study. The health care 
177.2 	access fund appropriation is for a health care 
177.3 	system study. This is a onetime appropriation 
177.4 	and is available until June 30, 2018.
177.5 	Base-Level Adjustments. The general fund 
177.6 	base is increased by $8,829,000 in fiscal year 
177.7 	2018 and $17,714,000 in fiscal year 2019.

177.8	Subd. 3.Health Protection
 		-0-
		230,000
	
177.9 	This appropriation is for administration of 
177.10 	the drinking water revolving fund.

177.11	Sec. 4. HEALTH-RELATED BOARDS

177.12	Subdivision 1.Total Appropriation
 	$
	195,000
	$
	255,000
	
177.13 	This appropriation is from the state 
177.14 	government special revenue fund.

177.15	Subd. 2.Board of Dentistry
 		(850,000)
		(864,000)

177.16
177.17	Subd. 3.Board of Marriage and Family 
Therapy
 		40,000
		50,000

177.18	Subd. 4.Board of Pharmacy
 		115,000
		145,000

177.19	Subd. 5.Board of Physical Therapy
 		890,000
		924,000
	
177.20 	Health Professional Services Program. Of 
177.21 	this appropriation, $850,000 in fiscal year 
177.22 	2016 and $864,000 in fiscal year 2017 are 
177.23 	from the state government special revenue 
177.24 	fund for the health professional services 
177.25 	program.

177.26
177.27
177.28	Sec. 5. OMBUDSMAN FOR MENTAL 
HEALTH AND DEVELOPMENTAL 
DISABILITIES
 	$
	100,000
	$
	250,000

177.29 	Sec. 6. Laws 2013, chapter 108, article 14, section 2, subdivision 1, as amended by 
177.30 	Laws 2014, chapter 312, article 31, section 3, is amended to read:

177.31	Subdivision 1.Total Appropriation
 	$
	6,437,815,000
	$
	6,456,311,000

178.1	Appropriations by Fund
	
178.2		2014
	2015
	
178.3	General
	5,654,095,000
	5,676,652,000
	
178.4
178.5	State Government 
Special Revenue
	4,099,000
	4,510,000
	
178.6	Health Care Access
	519,816,000
	518,446,000
	
178.7	Federal TANF
	257,915,000
	254,813,000
	
178.8	Lottery Prize Fund
	1,890,000
	1,890,000
	
178.9 	Receipts for Systems Projects. 
178.10 	Appropriations and federal receipts for 
178.11 	information systems projects for MAXIS, 
178.12 	PRISM, MMIS, and SSIS must be deposited 
178.13 	in the state system account authorized 
178.14 	in Minnesota Statutes, section 256.014. 
178.15 	Money appropriated for computer projects 
178.16 	approved by the commissioner of Minnesota 
178.17 	information technology services, funded 
178.18 	by the legislature, and approved by the 
178.19 	commissioner of management and budget, 
178.20 	may be transferred from one project to 
178.21 	another and from development to operations 
178.22 	as the commissioner of human services 
178.23 	considers necessary. Any unexpended 
178.24 	balance in the appropriation for these 
178.25 	projects does not cancel but is available for 
178.26 	ongoing development and operations.
178.27 	Nonfederal Share Transfers. The 
178.28 	nonfederal share of activities for which 
178.29 	federal administrative reimbursement is 
178.30 	appropriated to the commissioner may be 
178.31 	transferred to the special revenue fund.
178.32 	ARRA Supplemental Nutrition Assistance 
178.33 	Benefit Increases. The funds provided for 
178.34 	food support benefit increases under the 
178.35 	Supplemental Nutrition Assistance Program 
178.36 	provisions of the American Recovery and 
178.37 	Reinvestment Act (ARRA) of 2009 must be 
179.1 	used for benefit increases beginning July 1, 
179.2 	2009.
179.3 	Supplemental Nutrition Assistance 
179.4 	Program Employment and Training. 
179.5 	(1) Notwithstanding Minnesota Statutes, 
179.6 	sections 256D.051, subdivisions 1a, 6b, 
179.7 	and 6c, and 256J.626, federal Supplemental 
179.8 	Nutrition Assistance employment and 
179.9 	training funds received as reimbursement of 
179.10 	MFIP consolidated fund grant expenditures 
179.11 	for diversionary work program participants 
179.12 	and child care assistance program 
179.13 	expenditures must be deposited in the general 
179.14 	fund. The amount of funds must be limited to 
179.15 	$4,900,000 per year in fiscal years 2014 and 
179.16 	2015, and to $4,400,000 per year in fiscal 
179.17 	years year 2016 and 2017, contingent on 
179.18 	approval by the federal Food and Nutrition 
179.19 	Service.
179.20 	(2) Notwithstanding Minnesota Statutes, 
179.21 	sections 256D.051, subdivisions 1a, 6b, and 
179.22 	6c, and 256J.626, in fiscal year 2017, up to 
179.23 	$4,400,000 in federal Supplemental Nutrition 
179.24 	Assistance employment and training 
179.25 	funds received as reimbursement of MFIP 
179.26 	consolidated fund grant expenditures for 
179.27 	diversionary work program participants and 
179.28 	child care assistance program expenditures 
179.29 	is appropriated to the commissioner of 
179.30 	human services to expand the Supplemental 
179.31 	Nutrition Assistance Program Employment 
179.32 	and Training Program, including 
179.33 	administrative costs, contingent on approval 
179.34 	by the federal Food and Nutrition Service.
180.1 	(2) (3) Consistent with the receipt of the 
180.2 	federal funds, the commissioner may 
180.3 	adjust the level of working family credit 
180.4 	expenditures claimed as TANF maintenance 
180.5 	of effort. Notwithstanding any contrary 
180.6 	provision in this article, this rider expires 
180.7 	June 30, 2017.
180.8 	TANF Maintenance of Effort. (a) In order 
180.9 	to meet the basic maintenance of effort 
180.10 	(MOE) requirements of the TANF block grant 
180.11 	specified under Code of Federal Regulations, 
180.12 	title 45, section 263.1, the commissioner may 
180.13 	only report nonfederal money expended for 
180.14 	allowable activities listed in the following 
180.15 	clauses as TANF/MOE expenditures:
180.16 	(1) MFIP cash, diversionary work program, 
180.17 	and food assistance benefits under Minnesota 
180.18 	Statutes, chapter 256J;
180.19 	(2) the child care assistance programs 
180.20 	under Minnesota Statutes, sections 119B.03
180.21 	and 119B.05, and county child care 
180.22 	administrative costs under Minnesota 
180.23 	Statutes, section 119B.15;
180.24 	(3) state and county MFIP administrative 
180.25 	costs under Minnesota Statutes, chapters 
180.26 	256J and 256K;
180.27 	(4) state, county, and tribal MFIP 
180.28 	employment services under Minnesota 
180.29 	Statutes, chapters 256J and 256K;
180.30 	(5) expenditures made on behalf of legal 
180.31 	noncitizen MFIP recipients who qualify for 
180.32 	the MinnesotaCare program under Minnesota 
180.33 	Statutes, chapter 256L;
181.1 	(6) qualifying working family credit 
181.2 	expenditures under Minnesota Statutes, 
181.3 	section 290.0671;
181.4 	(7) qualifying Minnesota education credit 
181.5 	expenditures under Minnesota Statutes, 
181.6 	section 290.0674; and
181.7 	(8) qualifying Head Start expenditures under 
181.8 	Minnesota Statutes, section 119A.50.
181.9 	(b) The commissioner shall ensure that 
181.10 	sufficient qualified nonfederal expenditures 
181.11 	are made each year to meet the state's 
181.12 	TANF/MOE requirements. For the activities 
181.13 	listed in paragraph (a), clauses (2) to 
181.14 	(8), the commissioner may only report 
181.15 	expenditures that are excluded from the 
181.16 	definition of assistance under Code of 
181.17 	Federal Regulations, title 45, section 260.31.
181.18 	(c) For fiscal years beginning with state fiscal 
181.19 	year 2003, the commissioner shall ensure 
181.20 	that the maintenance of effort used by the 
181.21 	commissioner of management and budget 
181.22 	for the February and November forecasts 
181.23 	required under Minnesota Statutes, section 
181.24 	16A.103, contains expenditures under 
181.25 	paragraph (a), clause (1), equal to at least 16 
181.26 	percent of the total required under Code of 
181.27 	Federal Regulations, title 45, section 263.1.
181.28 	(d) The requirement in Minnesota Statutes, 
181.29 	section 256.011, subdivision 3, that federal 
181.30 	grants or aids secured or obtained under that 
181.31 	subdivision be used to reduce any direct 
181.32 	appropriations provided by law, do not apply 
181.33 	if the grants or aids are federal TANF funds.
181.34 	(e) For the federal fiscal years beginning on 
181.35 	or after October 1, 2007, the commissioner 
182.1 	may not claim an amount of TANF/MOE in 
182.2 	excess of the 75 percent standard in Code 
182.3 	of Federal Regulations, title 45, section 
182.4 	263.1(a)(2), except:
182.5 	(1) to the extent necessary to meet the 80 
182.6 	percent standard under Code of Federal 
182.7 	Regulations, title 45, section 263.1(a)(1), 
182.8 	if it is determined by the commissioner 
182.9 	that the state will not meet the TANF work 
182.10 	participation target rate for the current year;
182.11 	(2) to provide any additional amounts 
182.12 	under Code of Federal Regulations, title 45, 
182.13 	section 264.5, that relate to replacement of 
182.14 	TANF funds due to the operation of TANF 
182.15 	penalties; and
182.16 	(3) to provide any additional amounts that 
182.17 	may contribute to avoiding or reducing 
182.18 	TANF work participation penalties through 
182.19 	the operation of the excess MOE provisions 
182.20 	of Code of Federal Regulations, title 45, 
182.21 	section 261.43(a)(2).
182.22 	(f) For the purposes of paragraph (e), clauses 
182.23 	(1) to (3), the commissioner may supplement 
182.24 	the MOE claim with working family credit 
182.25 	expenditures or other qualified expenditures 
182.26 	to the extent such expenditures are otherwise 
182.27 	available after considering the expenditures 
182.28 	allowed in this subdivision and subdivisions
182.29 	subdivision 2 and 3.
182.30 	(f) (g) Notwithstanding any contrary 
182.31 	provision in this article, paragraphs (a) to (e) 
182.32 	expire June 30, 2017 2019.
182.33 	Working Family Credit Expenditures 
182.34 	as TANF/MOE. The commissioner may 
182.35 	claim as TANF maintenance of effort up to 
183.1 	$6,707,000 per year of working family credit 
183.2 	expenditures in each fiscal year.

183.3 	Sec. 7. Laws 2015, chapter 71, article 14, section 2, subdivision 1, is amended to read:

183.4	Subdivision 1.Total Appropriation
 	$
	7,236,563,000
	$ 
	7,443,496,000

183.5	Appropriations by Fund
	
183.6		2016
	2017
	
183.7	General
	5,903,939,000 
	6,448,469,000
	
183.8
183.9	State Government 
Special Revenue
	4,514,000
	4,274,000
	
183.10	Health Care Access
	1,059,147,000
	725,326,000
	
183.11	Federal TANF
	267,070,000
	263,531,000
	
183.12	Lottery Prize
	1,893,000
	1,896,000
	
183.13 	Receipts for Systems Projects. 
183.14 	Appropriations and federal receipts for 
183.15 	information systems projects for MAXIS, 
183.16 	PRISM, MMIS, ISDS, and SSIS must 
183.17 	be deposited in the state systems account 
183.18 	authorized in Minnesota Statutes, section 
183.19 	256.014. Money appropriated for computer 
183.20 	projects approved by the commissioner 
183.21 	of the Office of MN.IT Services, funded 
183.22 	by the legislature, and approved by the 
183.23 	commissioner of management and budget 
183.24 	may be transferred from one project to 
183.25 	another and from development to operations 
183.26 	as the commissioner of human services 
183.27 	considers necessary. Any unexpended 
183.28 	balance in the appropriation for these 
183.29 	projects does not cancel but is available for 
183.30 	ongoing development and operations.
183.31 	TANF Maintenance of Effort. (a) In order 
183.32 	to meet the basic maintenance of effort 
183.33 	(MOE) requirements of the TANF block grant 
183.34 	specified under Code of Federal Regulations, 
183.35 	title 45, section 263.1, the commissioner may 
183.36 	only report nonfederal money expended for 
184.1 	allowable activities listed in the following 
184.2 	clauses as TANF/MOE expenditures:
184.3 	(1) MFIP cash, diversionary work program, 
184.4 	and food assistance benefits under Minnesota 
184.5 	Statutes, chapter 256J;
184.6 	(2) the child care assistance programs 
184.7 	under Minnesota Statutes, sections 119B.03
184.8 	and 119B.05, and county child care 
184.9 	administrative costs under Minnesota 
184.10 	Statutes, section 119B.15;
184.11 	(3) state and county MFIP administrative 
184.12 	costs under Minnesota Statutes, chapters 
184.13 	256J and 256K;
184.14 	(4) state, county, and tribal MFIP 
184.15 	employment services under Minnesota 
184.16 	Statutes, chapters 256J and 256K;
184.17 	(5) expenditures made on behalf of legal 
184.18 	noncitizen MFIP recipients who qualify for 
184.19 	the MinnesotaCare program under Minnesota 
184.20 	Statutes, chapter 256L;
184.21 	(6) qualifying working family credit 
184.22 	expenditures under Minnesota Statutes, 
184.23 	section 290.0671; and
184.24 	(7) qualifying Minnesota education credit 
184.25 	expenditures under Minnesota Statutes, 
184.26 	section 290.0674.
184.27 	(b) The commissioner shall ensure that 
184.28 	sufficient qualified nonfederal expenditures 
184.29 	are made each year to meet the state's 
184.30 	TANF/MOE requirements. For the activities 
184.31 	listed in paragraph (a), clauses (2) to 
184.32 	(7), the commissioner may only report 
184.33 	expenditures that are excluded from the 
185.1 	definition of assistance under Code of 
185.2 	Federal Regulations, title 45, section 260.31.
185.3 	(c) For fiscal years beginning with state 
185.4 	fiscal year 2003, the commissioner shall 
185.5 	ensure that the maintenance of effort used 
185.6 	by the commissioner of management and 
185.7 	budget for the February and November 
185.8 	forecasts required under Minnesota Statutes, 
185.9 	section 16A.103, contains expenditures 
185.10 	under paragraph (a), clause (1), equal to at 
185.11 	least 13 percent in fiscal year 2017 and at 
185.12 	least 16 percent beginning in fiscal year 2018 
185.13 	of the total required under Code of Federal 
185.14 	Regulations, title 45, section 263.1.
185.15 	(d) The requirement in Minnesota Statutes, 
185.16 	section 256.011, subdivision 3, that federal 
185.17 	grants or aids secured or obtained under that 
185.18 	subdivision be used to reduce any direct 
185.19 	appropriations provided by law, does not 
185.20 	apply if the grants or aids are federal TANF 
185.21 	funds.
185.22 	(e) For the federal fiscal years beginning on 
185.23 	or after October 1, 2007, the commissioner 
185.24 	may not claim an amount of TANF/MOE in 
185.25 	excess of the 75 percent standard in Code 
185.26 	of Federal Regulations, title 45, section 
185.27 	263.1(a)(2), except:
185.28 	(1) to the extent necessary to meet the 80 
185.29 	percent standard under Code of Federal 
185.30 	Regulations, title 45, section 263.1(a)(1), 
185.31 	if it is determined by the commissioner 
185.32 	that the state will not meet the TANF work 
185.33 	participation target rate for the current year;
185.34 	(2) to provide any additional amounts 
185.35 	under Code of Federal Regulations, title 45, 
186.1 	section 264.5, that relate to replacement of 
186.2 	TANF funds due to the operation of TANF 
186.3 	penalties; and
186.4 	(3) to provide any additional amounts that 
186.5 	may contribute to avoiding or reducing 
186.6 	TANF work participation penalties through 
186.7 	the operation of the excess MOE provisions 
186.8 	of Code of Federal Regulations, title 45, 
186.9 	section 261.43(a)(2). 
186.10 	(f) For the purposes of paragraph (e), clauses 
186.11 	(1) to (3), the commissioner may supplement 
186.12 	the MOE claim with working family credit 
186.13 	expenditures or other qualified expenditures 
186.14 	to the extent such expenditures are otherwise 
186.15 	available after considering the expenditures 
186.16 	allowed in this subdivision and subdivision 2.
186.17 	(g) Notwithstanding any contrary provision 
186.18 	in this article, paragraphs (a) to (f) expire 
186.19 	June 30, 2019.
186.20 	Working Family Credit Expenditure 
186.21 	as TANF/MOE. The commissioner may 
186.22 	claim as TANF maintenance of effort up to 
186.23 	$6,707,000 per year of working family credit 
186.24 	expenditures in each fiscal year.

186.25 	Sec. 8. Laws 2015, chapter 71, article 14, section 4, subdivision 3, is amended to read:

186.26	Subd. 3.Board of Dentistry
 		2,192,000
		2,206,000
	
186.27 	This appropriation includes $864,000 in fiscal 
186.28 	year 2016 and $878,000 in fiscal year 2017 
186.29 	for the health professional services program.

186.30 	Sec. 9. EXPIRATION OF UNCODIFIED LANGUAGE.
 186.31 	All uncodified language contained in this article expires on June 30, 2017, unless a 
186.32 	different expiration date is explicit.

187.1 	Sec. 10. EFFECTIVE DATE.
 187.2 	This article is effective the day following final enactment.