Minnesota Legislature
SF 3436
as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - as introduced
1.1 A bill for an act 1.2 relating to the financing of state government; 1.3 changing appropriations to reflect forecast changes; 1.4 reducing appropriations for the fiscal years ending 1.5 June 30, 2002 and 2003; canceling balances and 1.6 appropriations and transferring balances to the 1.7 general fund in order to avert a deficit; authorizing 1.8 the sale of state bonds; appropriating money; amending 1.9 Minnesota Statutes 2000, sections 3.855, subdivision 1.10 2; 13.871, subdivision 5, as amended; 16A.103, 1.11 subdivision 1a, as amended; 115A.557, subdivision 1; 1.12 127A.45, subdivisions 2, 10, 13, 14, 16; 135A.15, 1.13 subdivision 1, as amended; 144D.01, subdivision 4; 1.14 256.9657, subdivision 1, as amended; 256B.19, 1.15 subdivision 1, as amended; 256B.69, subdivision 5a, as 1.16 amended; 256E.06, subdivision 3; 256I.04, subdivision 1.17 2a; 256L.12, subdivision 9, as amended; 268.035, 1.18 subdivision 24; 268.051, subdivision 8; 611A.371, 1.19 subdivision 1, as amended; 611A.373, subdivision 1, as 1.20 amended; 611A.713, subdivision 2, as amended; 611A.72, 1.21 as amended; 611A.73, subdivision 2; 611A.74, 1.22 subdivisions 2, as amended, 3, as amended, 4, as 1.23 amended, 5, as amended, 6, as amended; Minnesota 1.24 Statutes 2001 Supplement, sections 124D.11, 1.25 subdivision 9; 127A.45, subdivision 14a; 256.01, 1.26 subdivision 2, as amended; 256.022, subdivision 1, as 1.27 amended; 256B.057, subdivision 9; 256B.0625, 1.28 subdivision 13, as amended; 268.022, subdivision 1; 1.29 611A.372, as amended; 611A.74, subdivision 1, as 1.30 amended; Laws 2001, First Special Session chapter 4, 1.31 article 2, section 31; Laws 2001, First Special 1.32 Session chapter 6, article 7, section 14, as amended; 1.33 Laws 2002, chapter 220, article 5, section 1; Laws 1.34 2002, chapter 220, article 5, section 2, subdivision 1.35 1; Laws 2002, chapter 220, article 5, section 2, 1.36 subdivision 2; Laws 2002, chapter 220, article 6, 1.37 section 3, subdivision 2; Laws 2002, chapter 220, 1.38 article 7, section 1; Laws 2002, chapter 220, article 1.39 7, section 4, subdivision 1; Laws 2002, chapter 220, 1.40 article 7, section 4, subdivision 5; Laws 2002, 1.41 chapter 220, article 7, section 34; Laws 2002, chapter 1.42 220, article 8, section 15; Laws 2002, chapter 220, 1.43 article 10, section 17; Laws 2002, chapter 220, 1.44 article 10, section 36; Laws 2002, chapter 220, 1.45 article 10, section 37; Laws 2002, chapter 220, 1.46 article 10, section 38, subdivision 2; Laws 2002, 2.1 chapter 220, article 10, section 38, subdivision 3; 2.2 Laws 2002, chapter 220, article 10, section 39; Laws 2.3 2002, chapter 220, article 13, section 9, subdivision 2.4 2; Laws 2002, chapter 220, article 17, section 2, 2.5 subdivision 6; proposing coding for new law in 2.6 Minnesota Statutes, chapter 144D; repealing Minnesota 2.7 Statutes 2000, sections 611A.373, subdivision 3, as 2.8 added; 611A.73, subdivision 6, as added; Laws 2002, 2.9 chapter 220, article 7, section 5; Laws 2002, chapter 2.10 220, article 7, section 32; Laws 2002, chapter 220, 2.11 article 7, section 33. 2.12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.13 ARTICLE 1 2.14 E-12 EDUCATION 2.15 Section 1. Laws 2001, First Special Session chapter 6, 2.16 article 7, section 14, as amended by Laws 2002, chapter 220, 2.17 article 3, section 16, is amended to read: 2.18 Sec. 14. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 2.19 EDUCATION.] 2.20 The sums indicated in this section are appropriated from 2.21 the general fund to the Perpich Center for Arts Education for 2.22 the fiscal years designated: 2.23$7,431,000$7,681,000 ..... 2002 2.24$7,316,000$7,816,000 ..... 2003 2.25 $150,000 each year is to extend the partnership network to 2.26 up to five new partnership sites and for developing 2.27 whole-school, arts-based teaching and learning curriculum at new 2.28 sites. 2.29 Any balance in the first year does not cancel but is 2.30 available in the second year. 2.31 Sec. 2. [REFERENDUM TRANSFER ADJUSTMENT.] 2.32 Notwithstanding Minnesota Statutes, section 126C.17, 2.33 subdivision 1, paragraph (b), for fiscal year 2003 and later, 2.34 the initial referendum allowance for independent school district 2.35 No. 709, Duluth, equals the sum of the allowance under Minnesota 2.36 Statutes, section 126C.16, subdivision 2, plus the referendum 2.37 conversion allowance approved under Minnesota Statutes, section 2.38 126C.17, subdivision 13, minus $373. If the district has more 2.39 than one referendum authority, the reduction must be computed 2.40 separately for each authority. The reduction must be applied 2.41 first to the referendum authority with the earliest expiration 3.1 date. The district's initial referendum allowance may not be 3.2 less than zero. 3.3 Sec. 3. [DECLINING PUPIL UNIT AID; ALBERT LEA.] 3.4 Subdivision 1. [FISCAL YEAR 2003.] For fiscal year 2003, 3.5 independent school district No. 241, Albert Lea, is eligible for 3.6 family dislocation declining enrollment aid equal to $300,000. 3.7 Subd. 2. [FISCAL YEAR 2004.] For fiscal year 2004, 3.8 independent school district No. 241, Albert Lea, is eligible for 3.9 family dislocation declining enrollment aid equal to 75 percent 3.10 of the fiscal year 2002 appropriation in subdivision 1. 3.11 Subd. 3. [FISCAL YEAR 2005.] For fiscal year 2005, 3.12 independent school district No. 241, Albert Lea, is eligible for 3.13 family dislocation declining enrollment aid equal to 50 percent 3.14 of the fiscal year 2002 appropriation in subdivision 1. 3.15 Subd. 4. [FISCAL YEAR 2006.] For fiscal year 2006, 3.16 independent school district No. 241, Albert Lea, is eligible for 3.17 family dislocation declining enrollment aid equal to 25 percent 3.18 of the fiscal year 2002 appropriation in subdivision 1. 3.19 Sec. 4. [STAFF DEVELOPMENT REVENUE ALLOCATION.] 3.20 Notwithstanding Minnesota Statutes, section 122A.61, school 3.21 districts may reallocate up to one-half of the basic revenue 3.22 reserved for staff development for any operating expenses in 3.23 fiscal years 2003 and 2004 only. 3.24 Sec. 5. [APPROPRIATION.] 3.25 $300,000 in fiscal year 2003 is appropriated from the 3.26 general fund to the commissioner of children, families, and 3.27 learning for declining pupil unit aid to independent school 3.28 district No. 241, Albert Lea. 3.29 Sec. 6. [EFFECTIVE DATE.] 3.30 This article is effective the day following final enactment. 3.31 ARTICLE 2 3.32 HIGHER EDUCATION 3.33 Section 1. Laws 2002, chapter 220, article 5, section 1, 3.34 is amended to read: 3.35 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 3.36 The dollar amounts in the columns marked "APPROPRIATIONS" 4.1 are added to or, if shown in parentheses, are subtracted from 4.2 the appropriations in Laws 2001, First Special Session chapter 4.3 1, or other law to the specified agencies. The appropriations 4.4 are from the general fund or any other named fund and are 4.5 available for the fiscal years indicated for each purpose. The 4.6 figure 2002 or 2003 means that the addition to or subtraction 4.7 from the appropriations listed under the figure are for the 4.8 fiscal year ending June 30, 2002, or June 30, 2003, 4.9 respectively. If only one figure is shown in the text for a 4.10 specified purpose, the addition or subtraction is for 2002 4.11 unless the context intends another fiscal year. 4.12 SUMMARY BY FUND 4.13 2002 2003 TOTAL 4.14 General $( 2,744,000)$(47,256,000)$(50,000,000)4.15 2,256,000 (47,256,000) (45,000,000) 4.16 SUMMARY BY AGENCY - ALL FUNDS 4.17 2002 2003 TOTAL 4.18 Higher Education 4.19 Services Office $( 2,744,000)$ ( 931,000) $( 3,675,000)4.20 2,256,000 1,325,000 4.21 Board of Trustees of 4.22 the Minnesota State Colleges 4.23 and Universities $ (22,692,000) $ (22,692,000) 4.24 Board of Regents of the 4.25 University of Minnesota $ (23,633,000) $ (23,633,000) 4.26 APPROPRIATIONS 4.27 Available for the Year 4.28 Ending June 30 4.29 2002 2003 4.30 Sec. 2. Laws 2002, chapter 220, article 5, section 2, 4.31 subdivision 1, is amended to read: 4.32 Subdivision 1. Total 4.33 Appropriation Changes(2,744,000)( 931,000)( 3,675,000)4.34 2,256,000 1,325,000 4.35 Sec. 3. Laws 2002, chapter 220, article 5, section 2, 4.36 subdivision 2, is amended to read: 4.37 Subd. 2. State Grants1,460,0002,995,0004,455,0004.38 6,460,000 9,455,000 4.39 Notwithstanding Laws 2001, First 4.40 Special Session chapter 1, article 1, 4.41 section 2, subdivision 2, savings in 5.1 the state grant program in fiscal year 5.2 2003 resulting from any increase in the 5.3 maximum federal grant over $3,750 or 5.4 from any other source, after use to 5.5 provide additional decreases in the 5.6 family responsibility for independent 5.7 students as provided by law, shall 5.8 remain in the state grant program. 5.9 A reduction of $75,000 each year is 5.10 made to appropriations for the summer 5.11 scholarship program. A reduction of 5.12 $125,000 each year is made to 5.13 appropriations for the national service 5.14 scholars program. The appropriation 5.15 for the advanced placement scholarship 5.16 is reduced by $75,000 in fiscal year 5.17 2003. 5.18 Sec. 4. [FULL STATE GRANT AWARDS.] 5.19 The higher education services office shall transfer to the 5.20 state grant appropriation from the work study appropriation and 5.21 the child care grant appropriation in Laws 2001, First Special 5.22 Session, chapter 1, article 1, section 2, the amount necessary, 5.23 if any, to make full state grant awards in fiscal year 2003. 5.24 ARTICLE 3 5.25 ENVIRONMENT AND NATURAL RESOURCES 5.26 Section 1. Minnesota Statutes 2000, section 115A.557, 5.27 subdivision 1, is amended to read: 5.28 Subdivision 1. [DISTRIBUTION; FORMULA.] Any funds 5.29 appropriated to the director for the purpose of distribution to 5.30 counties under this section must be distributed each fiscal year 5.31 by the director based on population, except a county may not 5.32 receive less than $55,000 in a fiscal year. If the amount 5.33 available for distribution under this section is less than the 5.34 amount available in fiscal year 2001, the minimum county payment 5.35 under this section is reduced proportionately. For purposes of 5.36 this subdivision, "population" has the definition given in 5.37 section 477A.011, subdivision 3. A county that participates in 5.38 a multicounty district that manages solid waste and that has 5.39 responsibility for recycling programs as authorized in section 5.40 115A.552, must pass through to the districts funds received by 5.41 the county in excess of the$55,000 annual baseminimum county 5.42 payment under this section in proportion to the population of 5.43 the county served by that district. 6.1 Sec. 2. Laws 2002, chapter 220, article 8, section 15, is 6.2 amended to read: 6.3 Sec. 15. [INCREASE TO WATER QUALITY PERMIT FEES.] 6.4 (a) The pollution control agency shall collect water 6.5 quality permit application and annual fees that reflect the fees 6.6 in Minnesota Rules, part 7002.0310, increased to the amounts 6.7 described in paragraphs (b) to (g). 6.8 (b) The application fee for individual permits, general 6.9 permits, and general industrial stormwater permits is $240. 6.10 (c) The annual fees for individual National Pollutant 6.11 Discharge Elimination System permits for major municipal 6.12 facilities are as follows: 6.13 Design Flow in 6.14 Million Gallons Per Day Annual Fee 6.16 50 and over$175,750$175,500 6.17 20 to 49.99 $40,350 6.18 5 to 19.99 $14,350 6.19 Up to 4.99 $5,900 6.20 (d) The annual fees for individual National Pollutant 6.21 Discharge Elimination System permits for major nonmunicipal 6.22 facilities are as follows: 6.23 Design Flow in 6.24 Million Gallons Per Day Annual Fee 6.26 20 to 49.99 $44,200 6.27 5 to 19.99 $18,250 6.28 Up to 4.99 $8,450 6.29 Cooling or mine pit 6.30 dewatering (any flow) $16,900 6.31 (e) The annual fees for individual National Pollutant 6.32 Discharge Elimination System and State Disposal System permits 6.33 for nonmajor municipal facilities with design flows greater than 6.34 0.100 million gallons per day are $1,450. 6.35 (f) The annual fees for general industrial stormwater 6.36 permits are $280. 6.37 (g) The annual fees for general National Pollutant 6.38 Discharge Elimination System and State Disposal System permits 6.39 are $345. 6.40 (h) The application and annual fees are not increased for 6.41 general construction stormwater permits and sanitary sewer 6.42 extension permits. The annual fees are not increased for 7.1 National Pollutant Discharge Elimination System and State 7.2 Disposal System permits regulating municipal nonmajors with 7.3 facility design flow of 0 to .100, sewage sludge landspreading 7.4 facilities, and nonmajor nonmunicipal facilities. 7.5 (i) The increased permit fees are effective July 1, 2002. 7.6 The agency shall adopt amended water quality permit fee rules 7.7 incorporating the permit fee increases in this subdivision under 7.8 Minnesota Statutes, section 14.389. The pollution control 7.9 agency shall begin collecting the increased permit fees on July 7.10 1, 2002, even if the rule adoption process has not been 7.11 initiated or completed. Notwithstanding Minnesota Statutes, 7.12 section 14.18, subdivision 2, the increased permit fees 7.13 reflecting the permit fee increases in this section and the rule 7.14 amendments incorporating those permit fee increases do not 7.15 require further legislative approval. 7.16 Sec. 3. [EFFECTIVE DATE.] 7.17 This article is effective the day following final enactment. 7.18 ARTICLE 4 7.19 PUBLIC SAFETY 7.20 Section 1. Laws 2002, chapter 220, article 7, section 1, 7.21 is amended to read: 7.22 Section 1. [TRANSPORTATION AND OTHER AGENCY APPROPRIATIONS.] 7.23 The dollar amounts in the columns marked "APPROPRIATIONS" 7.24 are added to or, if shown in parentheses, are subtracted from 7.25 the appropriations in Laws 2001, First Special Session chapter 7.26 8, 9, or other law to the specified agencies. The 7.27 appropriations are from the general fund or any other named fund 7.28 and are available for the fiscal years indicated for each 7.29 purpose. The figure 2002 or 2003 means that the addition to or 7.30 subtraction from the appropriations listed under the figure are 7.31 for the fiscal year ending June 30, 2002, or June 30, 2003, 7.32 respectively. If only one figure is shown in the text for a 7.33 specified purpose, the addition or subtraction is for 2002 7.34 unless the context intends another fiscal year. 7.35 SUMMARY BY FUND 7.36 2002 2003 TOTAL 8.1 APPROPRIATIONS 8.2 General $ (2,018,000) $(6,932,000)$(8,950,000)8.3 (5,921,000) (7,939,000) 8.4 TRANSFERS IN (2,705,000) (1,996,000) (4,701,000) 8.5 Sec. 2. Laws 2002, chapter 220, article 7, section 4, 8.6 subdivision 1, is amended to read: 8.7 Subdivision 1. Total Appropriation 8.8 Changes (2,018,000)(3,296,000)8.9 (2,696,000) 8.10 Sec. 3. Laws 2002, chapter 220, article 7, section 4, 8.11 subdivision 5, is amended to read: 8.12 Subd. 5. Crime Victims 8.13 Services Center (384,000)(1,368,000)8.14 ( 768,000) 8.15[SHELTER PER DIEMS.] $600,000 the8.16second year is a reduction in per diem8.17funding for shelters. The base for the8.18crime victim services center shall be8.19reduced by $600,000 in fiscal year 20048.20and $600,000 in fiscal year 2005 to8.21reflect reduced funding for shelters.8.22 [CRIME VICTIMS SERVICES STAFF AND 8.23 GRANTS.] $384,000 the first year and 8.24 $768,000 the second year are reductions 8.25 for crime victims services staff and 8.26 grants. For crime victims services 8.27 grants, the base for fiscal year 2004 8.28 shall be reduced by $2,000,000 and for 8.29 fiscal year 2005 by $2,000,000. 8.30 Sec. 4. Minnesota Statutes 2000, section 13.871, 8.31 subdivision 5, as amended by Laws 2002, chapter 220, article 7, 8.32 section 6, is amended to read: 8.33 Subd. 5. [CRIME VICTIMS.] (a) [CRIME VICTIM NOTICE OF 8.34 RELEASE.] Data on crime victims who request notice of an 8.35 offender's release are classified under section 611A.06. 8.36 (b) [SEX OFFENDER HIV TESTS.] Results of HIV tests of sex 8.37 offenders under section 611A.19, subdivision 2, are classified 8.38 under that section. 8.39 (c) [BATTERED WOMEN.] Data on battered women maintained by 8.40 grantees for emergency shelter and support services for battered 8.41 women are governed by section 611A.32, subdivision 5. 8.42 (d) [VICTIMS OF DOMESTIC ABUSE.] Data on battered women and 8.43 victims of domestic abuse maintained by grantees and recipients 8.44 of per diem payments for emergency shelter for battered women 9.1 and support services for battered women and victims of domestic 9.2 abuse are governed by sections 611A.32, subdivision 5, and 9.3 611A.371, subdivision 3. 9.4 (e) [CRIME VICTIM CLAIMS FOR REPARATIONS.] Claims and 9.5 supporting documents filed by crime victims seeking reparations 9.6 are classified under section 611A.57, subdivision 6. 9.7 (f) [CRIME VICTIMOVERSIGHT ACTOMBUDSMAN.] Data 9.8 maintained by thecommissioner of public safety under thecrime 9.9 victimOversight Actombudsman are classified under section 9.10 611A.74, subdivision 2. 9.11 Sec. 5. Minnesota Statutes 2000, section 135A.15, 9.12 subdivision 1, as amended by Laws 2002, chapter 220, article 7, 9.13 section 8, is amended to read: 9.14 Subdivision 1. [POLICY REQUIRED.] The board of trustees of 9.15 the Minnesota state colleges and universities shall, and the 9.16 University of Minnesota is requested to, adopt a clear, 9.17 understandable written policy on sexual harassment and sexual 9.18 violence that informs victims of their rights under the crime 9.19 victims bill of rights, including the right to assistance from 9.20 the crime victims reparations board and thecommissioner of9.21public safetyoffice of the crime victim ombudsman. The policy 9.22 must apply to students and employees and must provide 9.23 information about their rights and duties. The policy must 9.24 apply to criminal incidents occurring on property owned by the 9.25 post-secondary system or institution in which the victim is a 9.26 student or employee of that system or institution. It must 9.27 include procedures for reporting incidents of sexual harassment 9.28 or sexual violence and for disciplinary actions against 9.29 violators. During student registration, each technical college, 9.30 community college, or state university shall, and the University 9.31 of Minnesota is requested to, provide each student with 9.32 information regarding its policy. A copy of the policy also 9.33 shall be posted at appropriate locations on campus at all 9.34 times. Each private post-secondary institution that is an 9.35 eligible institution as defined in section 136A.101, subdivision 9.36 4, must adopt a policy that meets the requirements of this 10.1 section. 10.2 Sec. 6. Minnesota Statutes 2001 Supplement, section 10.3 256.022, subdivision 1, as amended by Laws 2002, chapter 220, 10.4 article 7, section 11, is amended to read: 10.5 Subdivision 1. [CREATION.] The commissioner of human 10.6 services shall establish a review panel for purposes of 10.7 reviewing investigating agency determinations regarding 10.8 maltreatment of a child in a facility in response to requests 10.9 received under section 626.556, subdivision 10i, paragraph (b). 10.10 The review panel consists of the commissioners of health; human 10.11 services; children, families, and learning;public safety;and 10.12 corrections; the ombudsman for crime victims; and the ombudsman 10.13 for mental health and mental retardation; or their designees. 10.14 Sec. 7. Minnesota Statutes 2000, section 611A.371, 10.15 subdivision 1, as amended by Laws 2002, article 7, section 16, 10.16 is amended to read: 10.17 Subdivision 1. [PURPOSE.] The purpose of thegrantper 10.18 diem program is to provide reimbursement in a timely, efficient 10.19 manner to local programs for the reasonable and necessary costs 10.20 of providing battered women and their children with food, 10.21 lodging, and safety.GrantPer diem funding may not be used for 10.22 other purposes. 10.23 Sec. 8. Minnesota Statutes 2001 Supplement, section 10.24 611A.372, as amended by Laws 2002, article 7, section 17, is 10.25 amended to read: 10.26 611A.372 [DUTIES OF DIRECTOR.] 10.27 In addition to any other duties imposed by law, the 10.28 director, with the approval of the commissioner of public 10.29 safety, shall: 10.30 (1) supervise the administration ofgrantper diem payments 10.31 to designated shelter facilities; 10.32 (2) collect data on shelter facilities; 10.33 (3) conduct an annual evaluation of thegrantper diem 10.34 program; 10.35 (4) report to the governor and the legislature on the need 10.36 for emergency secure shelter; 11.1 (5) develop an application process for shelter facilities 11.2 to follow in seeking reimbursement under thegrantper diem 11.3 program; and 11.4 (6) adopt rules to implement and administer sections 11.5 611A.37 to 611A.375. 11.6 Sec. 9. Minnesota Statutes 2000, section 611A.373, 11.7 subdivision 1, as amended by Laws 2002, article 7, section 18, 11.8 is amended to read: 11.9 Subdivision 1. [PAYMENT REQUESTS.]Payments to designated11.10shelter facilities must be in the form of a grant.Designated 11.11 shelter facilities may submit requests for payment monthly based 11.12 ontheir expenses. The process for the submission of payments11.13and for the submission of requests may be established by the11.14directorthe number of persons housed. Upon approval of the 11.15 request for payment by the center, payments shall be made 11.16 directly to designated shelter facilities fromgrantper diem 11.17 funds on behalf of women and their children who reside in the 11.18 shelter facility. Payments made to a designated shelter 11.19 facility must not exceed thegrantannual reserve amount for 11.20 that facility unless approved by the director. These payments 11.21 must not affect the eligibility of individuals who reside in 11.22 shelter facilities for public assistance benefits, except when 11.23 required by federal law or regulation. 11.24 Sec. 10. Minnesota Statutes 2000, section 611A.713, 11.25 subdivision 2, as amended by Laws 2002, article 7, section 18, 11.26 is amended to read: 11.27 Subd. 2. [RESERVEGRANTAMOUNT.] The center shall 11.28 calculatethe grantannually the reserve amount for each 11.29 designated shelter facility. This calculation may be based upon 11.30 program type, average occupancy rates, and licensed capacity 11.31 limits. The total of allgrantreserve amounts shall not exceed 11.32 the legislative per diem appropriation. 11.33 Sec. 11. Minnesota Statutes 2000, section 611A.72, as 11.34 amended by Laws 2002, chapter 220, article 7, section 19, is 11.35 amended to read: 11.36 611A.72 [CITATION.] 12.1 Sections 611A.72 to 611A.74 may be cited as the "Crime 12.2 VictimOversightOmbudsman Act." 12.3 Sec. 12. Minnesota Statutes 2000, section 611A.73, 12.4 subdivision 2, as amended by Laws 2002, chapter 220, article 7, 12.5 section 20, is amended to read: 12.6 Subd. 2. [APPROPRIATE AUTHORITY.] "Appropriate authority" 12.7 includes anyone who is the subject of a complaintunder sections12.8611A.72 to 611A.74to thecommissionercrime victim ombudsman or 12.9 anyone within the agency who is in a supervisory position with 12.10 regard to one who is the subject of a complaintunder sections12.11611A.72 to 611A.74. 12.12 Sec. 13. Minnesota Statutes 2001 Supplement, section 12.13 611A.74, subdivision 1, as amended by Laws 2002, chapter 220, 12.14 article 7, section 22, is amended to read: 12.15 Subdivision 1. [AUTHORITY UNDER THIS ACTCREATION.] The 12.16 office of crime victim ombudsman for Minnesota is created. The 12.17 ombudsman shall be appointed by the governor, shall serve in the 12.18 unclassified service at the pleasure of the governor, and shall 12.19 be selected without regard to political affiliation. No person 12.20 may serve as ombudsman while holding any other public office. 12.21 The ombudsman is directly accountable to the governor and must 12.22 periodically report to the commissioner of public safety on the 12.23 operations and activities of the office. Thecommissioner12.24 ombudsman shall have the authorityunder sections 611A.72 to12.25611A.74to investigate decisions, acts, and other matters of the 12.26 criminal justice system so as to promote the highest attainable 12.27 standards of competence, efficiency, and justice for crime 12.28 victims in the criminal justice system. 12.29 Sec. 14. Minnesota Statutes 2000, section 611A.74, 12.30 subdivision 2, as amended by Laws 2002, chapter 220, article 7, 12.31 section 23, is amended to read: 12.32 Subd. 2. [DUTIES.] Thecommissionercrime victim ombudsman 12.33 may investigate complaints concerning possible violation of the 12.34 rights of crime victims or witnesses provided under this 12.35 chapter, the delivery of victim services by victim assistance 12.36 programs, the administration of the crime victims reparations 13.1 act, and other complaints of mistreatment by elements of the 13.2 criminal justice system or victim assistance programs. 13.3 Thecommissionerombudsman shall act as a liaison, when 13.4 thecommissionerombudsman deems necessary, between agencies, 13.5 either in the criminal justice system or in victim assistance 13.6 programs, and victims and witnesses. Thecommissionerombudsman 13.7 may be concerned with activities that strengthen procedures and 13.8 practices which lessen the risk that objectionable 13.9 administrative acts will occur. Thecommissionerombudsman must 13.10 be made available through the use of a toll-free telephone 13.11 number and shall answer questions concerning the criminal 13.12 justice system and victim services put to thecommissioner13.13 ombudsman by victims and witnesses in accordance with 13.14 thecommissioner'sombudsman's knowledge of the facts or law, 13.15 unless the information is otherwise restricted. The 13.16commissionerombudsman shall establish a procedure for referral 13.17 to the crime victim crisis centers, the crime victims 13.18 reparations board, and other victim assistance programs when 13.19 services are requested by crime victims or deemed necessary by 13.20 thecommissionerombudsman. 13.21 Thecommissioner'sombudsman's files are confidential data 13.22 as defined in section 13.02, subdivision 3, during the course of 13.23 an investigation or while the files are active. Upon completion 13.24 of the investigation or when the files are placed on inactive 13.25 status, they are private data on individuals as defined in 13.26 section 13.02, subdivision 12. 13.27 Sec. 15. Minnesota Statutes 2000, section 611A.74, 13.28 subdivision 3, as amended by Laws 2002, chapter 220, article 7, 13.29 section 24, is amended to read: 13.30 Subd. 3. [POWERS.] Thecommissionercrime victim ombudsman 13.31 has those powers necessary to carry out the duties set out in 13.32 subdivision 2, including: 13.33 (a) Thecommissionerombudsman may investigate, with or 13.34 without a complaint, any action of an element of the criminal 13.35 justice system or a victim assistance program included in 13.36 subdivision 2. 14.1 (b) Thecommissionerombudsman may request and shall be 14.2 given access to information and assistance thecommissioner14.3 ombudsman considers necessary for the discharge of 14.4 responsibilities. Thecommissionerombudsman may inspect, 14.5 examine, and be provided copies of records and documents of all 14.6 elements of the criminal justice system and victim assistance 14.7 programs. Thecommissionerombudsman may request and shall be 14.8 given access to police reports pertaining to juveniles and 14.9 juvenile delinquency petitions, notwithstanding section 260B.171 14.10 or 260C.171. Any information received by thecommissioner14.11 ombudsman retains its data classification under chapter 13 while 14.12 in thecommissioner'sombudsman's possession. Juvenile records 14.13 obtained under this subdivision may not be released to any 14.14 person. 14.15 (c) Thecommissionerombudsman may prescribe the methods by 14.16 which complaints are to be made, received, and acted upon; may 14.17 determine the scope and manner of investigations to be made; and 14.18 subject to the requirements of sections 611A.72 to 611A.74, may 14.19 determine the form, frequency, and distribution ofcommissioner14.20 ombudsman conclusions, recommendations, and proposals. 14.21 (d) After completing investigation of a complaint, the 14.22commissionerombudsman shall inform in writing the complainant, 14.23 the investigated person or entity, and other appropriate 14.24 authorities of the action taken. If the complaint involved the 14.25 conduct of an element of the criminal justice system in relation 14.26 to a criminal or civil proceeding, thecommissioner's14.27 ombudsman's findings shall be forwarded to the court in which 14.28 the proceeding occurred. 14.29 (e) Before announcing a conclusion or recommendation that 14.30 expressly or impliedly criticizes an administrative agency or 14.31 any person, thecommissionerombudsman shall consult with that 14.32 agency or person. 14.33 Sec. 16. Minnesota Statutes 2000, section 611A.74, 14.34 subdivision 4, as amended by Laws 2002, chapter 220, article 7, 14.35 section 25, is amended to read: 14.36 Subd. 4. [NO COMPELLED TESTIMONY.] Neither the 15.1commissionerombudsman nor any member of thecommissioner's15.2 ombudsman's staff may be compelled to testify or produce 15.3 evidence in any judicial or administrative proceeding with 15.4 respect to matters involving the exercise of official 15.5 dutiesunder sections 611A.72 to 611A.74except as may be 15.6 necessary to enforce the provisions of this section. 15.7 Sec. 17. Minnesota Statutes 2000, section 611A.74, 15.8 subdivision 5, as amended by Laws 2002, chapter 220, article 7, 15.9 section 26, is amended to read: 15.10 Subd. 5. [RECOMMENDATIONS.] (a) On finding a complaint 15.11 valid after duly considering the complaint and whatever material 15.12 thecommissionerombudsman deems pertinent, thecommissioner15.13 ombudsman may recommend action to the appropriate authority. 15.14 (b) If thecommissionerombudsman makes a recommendation to 15.15 an appropriate authority for action, the authority shall, within 15.16 a reasonable time period, but not more than 30 days, inform the 15.17commissionerombudsman about the action taken or the reasons for 15.18 not complying with the recommendation. 15.19 (c) Thecommissionerombudsman may publish conclusions and 15.20 suggestions by transmitting them to the governor, the 15.21 legislature or any of its committees, the press, and others who 15.22 may be concerned. When publishing an opinion adverse to an 15.23 administrative agency, thecommissionerombudsman shall include 15.24 any statement the administrative agency may have made to the 15.25commissionerombudsman by way of explaining its past 15.26 difficulties or its present rejection of thecommissioner's15.27 ombudsman's proposals. 15.28 Sec. 18. Minnesota Statutes 2000, section 611A.74, 15.29 subdivision 6, as amended by Laws 2002, chapter 220, article 7, 15.30 section 27, is amended to read: 15.31 Subd. 6. [REPORTS.] In addition to whatever reports the 15.32commissionerombudsman may make from time to time, the 15.33commissionerombudsman shall biennially report to the 15.34 legislature and to the governor concerning the exercise of 15.35 thecommissioner'sombudsman's functionsunder sections 611A.7215.36to 611A.74during the preceding biennium. The biennial report 16.1 is due on or before the beginning of the legislative session 16.2 following the end of the biennium. 16.3 Sec. 19. Laws 2002, chapter 220, article 7, section 34, is 16.4 amended to read: 16.5 Sec. 34. [EFFECTIVE DATE.] 16.6(a)Sections 1 to 5, 9, 12, and 30 are effective the day 16.7 following final enactment. 16.8(b) Sections 16, 17, and 33, paragraph (a), are effective16.9July 1, 2003.16.10(c) The amendments to section 18, subdivisions 1 and 2, are16.11effective July 1, 2003. Section 18, subdivision 3, is effective16.12the day following final enactment.16.13 Sec. 20. [REPEALER.] 16.14 (a) Minnesota Statutes 2000, sections 611A.373, subdivision 16.15 3, as added by Laws 2002, chapter 220, article 7, section 18; 16.16 and 611A.73, subdivision 6, as added by Laws 2002, chapter 220, 16.17 article 7, section 21, are repealed. 16.18 (b) Laws 2002, chapter 220, article 7, sections 5, 32, and 16.19 33, are repealed. 16.20 Sec. 21. [EFFECTIVE DATE.] 16.21 This article is effective the day following final enactment. 16.22 ARTICLE 5 16.23 STATE GOVERNMENT 16.24 Section 1. Minnesota Statutes 2000, section 3.855, 16.25 subdivision 2, is amended to read: 16.26 Subd. 2. [STATE EMPLOYEE NEGOTIATIONS.] (a) The 16.27 commissioner of employee relations shall regularly advise the 16.28 commission on the progress of collective bargaining activities 16.29 with state employees under the state Public Employment Labor 16.30 Relations Act. During negotiations, the commission may make 16.31 recommendations to the commissioner as it deems appropriate but 16.32 no recommendation shall impose any obligation or grant any right 16.33 or privilege to the parties. 16.34 (b) The commissioner shall submit to the chair of the 16.35 commission any negotiated collective bargaining agreements, 16.36 arbitration awards, compensation plans, or salaries for 17.1 legislative approval or disapproval. Negotiated agreements 17.2 shall be submitted within five days of the date of approval by 17.3 the commissioner or the date of approval by the affected state 17.4 employees, whichever occurs later. Arbitration awards shall be 17.5 submitted within five days of their receipt by the 17.6 commissioner. If the commission disapproves a collective 17.7 bargaining agreement, award, compensation plan, or salary, the 17.8 commission shall specify in writing to the parties those 17.9 portions with which it disagrees and its reasons. If the 17.10 commission approves a collective bargaining agreement, award, 17.11 compensation plan, or salary, it shall submit the matter to the 17.12 legislature to be accepted or rejected under this section. 17.13 (c) When the legislature is not in session, the commission 17.14 may give interim approval to a negotiated collective bargaining 17.15 agreement, salary, compensation plan, or arbitration award. 17.16 When the legislature is not in session, failure of the 17.17 commission to disapprove a collective bargaining agreement or 17.18 arbitration award within 30 days constitutes approval. The 17.19 commission shall submit the negotiated collective bargaining 17.20 agreements, salaries, compensation plans, or arbitration awards 17.21 for which it has provided approval to the entire legislature for 17.22 ratification at a special legislative session called to consider 17.23 them or at its next regular legislative session as provided in 17.24 this section. Approval or disapproval by the commission is not 17.25 binding on the legislature. 17.26 (d) When the legislature is not in session, the proposed 17.27 collective bargaining agreement, arbitration decision, salary, 17.28 or compensation plan must be implemented upon its approval by 17.29 the commission, and state employees covered by the proposed 17.30 agreement or arbitration decision do not have the right to 17.31 strike while the interim approval is in effect. Wages and 17.32 economic fringe benefit increases provided for in the agreement 17.33 or arbitration decision paid in accordance with the interim 17.34 approval by the commission are not affected, but the wages or 17.35 benefit increases must cease to be paid or provided effective 17.36 upon the rejection of the agreement, arbitration decision, 18.1 salary, or compensation plan, or upon adjournment of the18.2legislature without acting on it. Failure of the legislature to 18.3 disapprove a collective bargaining agreement or arbitration 18.4 award before adjournment of the legislature constitutes approval. 18.5 Sec. 2. Laws 2002, chapter 220, article 10, section 17, is 18.6 amended to read: 18.7 Sec. 17. MILITARY AFFAIRS (452,000) (2,399,000) 18.8 The base funding for the 2004-2005 18.9 biennium is$12,472,000$12,619,000 18.10 each year. 18.11 Sec. 3. Laws 2002, chapter 220, article 10, section 36, is 18.12 amended to read: 18.13 Sec. 36. [REDUCTION IN CONTRACT EXPENDITURES.] 18.14 During the biennium ending June 30, 2003, the governor must 18.15 reduce planned executive branch state agency general fund 18.16 expenditures on contracts for professional or technical services 18.17 by at least$35,000,000$27,300,000. The governor must allocate 18.18 this reduction among executive branch state agencies. For 18.19 purposes of this section, "professional or technical services" 18.20 has the meaning given in Minnesota Statutes, section 16C.08, 18.21 subdivision 1; and "executive branch state agency" has the 18.22 meaning given in Minnesota Statutes, section 16A.011, 18.23 subdivision 12a,and includesbut does not include the Minnesota 18.24 state colleges and universities, the higher education services 18.25 office, the department of corrections, or the department of 18.26 human services with respect to contracts for state operated 18.27 services. The base for these reductions is the amount allocated 18.28 for professional or technical service contracts in agency 18.29 spending plans as of January 1, 2002. 18.30 Sec. 4. Laws 2002, chapter 220, article 10, section 37, is 18.31 amended to read: 18.32 Sec. 37. [MORATORIUM ON CONSULTANT CONTRACTS.] 18.33 (a) An entity in the executive branch of state government, 18.34includingother than the Minnesota state colleges and 18.35 universities, the higher education services office, the 18.36 department of corrections, or the department of human services 18.37 with respect to contracts for state operated services, may not 19.1 enter into a new contract or renew an existing contract for 19.2 professional or technical services after the effective date of 19.3 this section and before July 1, 2003. This section does not 19.4 apply to a contract: 19.5 (1) that relates to a threat to public health, welfare, or 19.6 safety that threatens the functioning of government, the 19.7 protection of property, or the health or safety of people; or 19.8 (2) that is paid for entirely with federal fundsreceived19.9before the effective date of this section. 19.10 (b) An entity in the executive branch may apply for a 19.11 waiver of the moratorium by sending a letter with reasons for 19.12 the request to the commissioner of administrationfor executive19.13branch entities. Upon a finding that a consultant contract is 19.14 necessary, the commissioner may grant a waiver. The decision of 19.15 the commissioner is final and not subject to appeal. A monthly 19.16 report of all waivers granted must be filed by theentity19.17granting the waivercommissioner. The report must be published 19.18 on theentity'sdepartment of administration's Web site, and 19.19 copies must be provided to the chairs of the house ways and 19.20 means and senate finance committees and to the legislative 19.21 reference library. 19.22 Sec. 5. Laws 2002, chapter 220, article 10, section 38, 19.23 subdivision 2, is amended to read: 19.24 Subd. 2. [EXCEPTIONS.] Subdivision 1 does not apply to: 19.25 (1) an employee at a state correctional facility; 19.26 (2) an employee of state operated services under the 19.27 department of human services; 19.28 (3) a student in a work-study position; or 19.29(2)(4) a position that is necessary to perform essential 19.30 government services. 19.31 A determination under clause(2)(4) must be made by the 19.32 speaker of the house of representatives with respect to house 19.33 employees, the chair of the committee on rules and 19.34 administration with respect to senate employees, and the 19.35 legislative coordinating commission with respect to its 19.36 employees, by a constitutional officer with respect to employees 20.1 of the constitutional office, and by the governor with respect 20.2 to any other employee covered by this section. Exceptions 20.3 granted under clause(2)(4) must be reported monthly by the 20.4 entity granting the exception. The reports must be published on 20.5 the entity's Web site, and copies must be provided to the chairs 20.6 of the house ways and means and senate finance committees and to 20.7 the legislative reference library. 20.8 Sec. 6. Laws 2002, chapter 220, article 10, section 38, 20.9 subdivision 3, is amended to read: 20.10 Subd. 3. [ANTICIPATED SAVINGS.] The legislature 20.11 anticipates that application of this section to executive branch 20.12 agenciesand to the Minnesota state colleges and universities20.13 will result in savings to the general fund of $40,000,000 by 20.14 June 30, 2003. If the governor determines that application of 20.15 this section will not result in $40,000,000 in savings to the 20.16 general fund by June 30, 2003, the governor must make 20.17 proportional reductions in executive agency operating budgets 20.18 necessary to achieve these savings. If the governor makes 20.19 proportional reductions to executive agency operating budgets to 20.20 achieve the required savings, the governor shall exclude the 20.21 department of corrections from the reductions. 20.22 Sec. 7. Laws 2002, chapter 220, article 10, section 39, is 20.23 amended to read: 20.24 Sec. 39. [SAVINGS ARE ADDITIONAL.] 20.25 Savings achieved in sections 36 to 38 from the freeze in 20.26 state hiring or the reduction in the number of state contracts 20.27 for professional or technical services are in addition to 20.28 reductions in spending required by other sections of this 20.29articleact. 20.30 Sec. 8. [EFFECTIVE DATE.] 20.31 This article is effective the day following final enactment. 20.32 ARTICLE 6 20.33 ECONOMIC DEVELOPMENT 20.34 Section 1. [UNIFORM LAWS COMMISSION APPROPRIATION.] 20.35 The following amounts are added to the appropriations from 20.36 the general fund to the uniform laws commission in Laws 2001, 21.1 First Special Session chapter 8, article 4, section 8: $5,000 21.2 in the fiscal year ending June 30, 2002, and $5,000 in the 21.3 fiscal year ending June 30, 2003. 21.4 Sec. 2. Minnesota Statutes 2001 Supplement, section 21.5 268.022, subdivision 1, is amended to read: 21.6 Subdivision 1. [DETERMINATION AND COLLECTION OF SPECIAL 21.7 ASSESSMENT.] (a) In addition to all other taxes, assessments, 21.8 and payment obligations under chapter 268, each employer, except 21.9 an employer making payments in lieu of taxes is liable for a 21.10 special assessment levied at the rate of one-tenth of one 21.11 percent per yearuntil June 30, 2000, and seven-hundredths of21.12one percent per year on and after July 1, 2000,on all taxable 21.13 wages, as defined in section 268.035, subdivision 24. The 21.14 assessment shall become due and be paid by each employer to the 21.15 department on the same schedule and in the same manner as other 21.16 taxes. 21.17 (b) The special assessment levied under this section shall 21.18 not affect the computation of any other taxes, assessments, or 21.19 payment obligations due under this chapter. 21.20 Sec. 3. Minnesota Statutes 2000, section 268.035, 21.21 subdivision 24, is amended to read: 21.22 Subd. 24. [TAXABLE WAGES.] (a) "Taxable wages" means those 21.23 wages paid to an employee in covered employment each calendar 21.24 year up to an amount equal to6070 percent of the state's 21.25 average annual wage, rounded to the nearest $1,000. 21.26 (b) Taxable wages includes the amount of wages paid for 21.27 covered employment by the employer's predecessor when there has 21.28 been an experience ratingrecordtransfer under section 268.051, 21.29 subdivision 4. 21.30 Sec. 4. Minnesota Statutes 2000, section 268.051, 21.31 subdivision 8, is amended to read: 21.32 Subd. 8. [SOLVENCYSPECIAL ASSESSMENT FOR INTEREST ON 21.33 FEDERAL LOAN.] (a) Ifthe fund balance is less than $150,000,00021.34 onJune 30October 31 of any year, the commissioner, in 21.35 consultation with the commissioner of finance, determines that 21.36 an interest payment will be due during the following calendar 22.1 year on any loan from the federal unemployment trust fund under 22.2 section 268.194, subdivision 6, asolvencyspecial assessment on 22.3 taxpaying employers will be in effect for the following calendar 22.4 year. Thetaxpaying employer shall pay quarterly a solvency22.5 legislature authorizes the commissioner, in consultation with 22.6 the commissioner of finance, to determine the appropriate level 22.7 of the assessment, oftenfrom two percent to eight percent of 22.8 the quarterly unemployment taxes due, that will be necessary to 22.9 pay the interest due on the loan. 22.10 (b) Thesolvencyspecial assessment shall be placed into a 22.11 special account from which the commissioner shall pay any 22.12 interestaccruingthat has accrued on any loan from the federal 22.13 unemployment trust fund provided for under section 268.194, 22.14 subdivision 6. If, at the end of each calendar quarter, the 22.15 commissioner, in consultation with the commissioner of finance, 22.16 determines that the balance in this special account, including 22.17 interest earned on the special account, is more than is 22.18 necessary to pay the interest which has accrued on any loan as 22.19 of that date, or will accrue over the following calendar 22.20 quarter, the commissioner shall immediately pay to the fund the 22.21 amount in excess of that necessary to pay the interest on any 22.22 loan. 22.23 Sec. 5. Laws 2001, First Special Session chapter 4, 22.24 article 2, section 31, is amended to read: 22.25 Sec. 31. [WORKFORCE ENHANCEMENT FEE.] 22.26 Subdivision 1. [FEE.] Notwithstanding Minnesota Statutes, 22.27 section 268.022, effective January 1, 2002, the special 22.28 assessment under that section on taxable wages as defined in 22.29 Minnesota Statutes, section 268.035, subdivision 24, is 22.30 suspended until December 31, 2005. Effective January 1, 2002, 22.31 there shall be assessed, in addition to unemployment taxes due 22.32 under Minnesota Statutes, section 268.051, a workforce 22.33 enhancement fee of.09.12 percent on taxable wages. This fee 22.34 shall be due and be paid on the same schedule and in the same 22.35 manner as unemployment taxes under Minnesota Statutes, section 22.36 268.051. Any amount past due under this section shall be 23.1 subject to the same interest and collection provisions as 23.2 unemployment taxes. This fee shall expire on December 31, 2005. 23.3 Subd. 2. [USE OF FUNDS COLLECTED.] An amount equal to 23.4.070.1 percent on taxable wages shall be deposited in the 23.5 workforce development fund provided for under Minnesota 23.6 Statutes, section 268.022, subdivision 2. An amount equal to 23.7 .02 percent on taxable wages, less reimbursement for collection 23.8 costs of the total amount of the fee, shall be deposited in the 23.9 unemployment insurance technology initiative account provided 23.10 for in section 32. 23.11 Sec. 6. [EFFECTIVE DATE.] 23.12 This article is effective the day following final enactment. 23.13 ARTICLE 7 23.14 CANCELLATIONS; INFLATION; TRANSFERS IN 23.15 Section 1. [TRAFFIC BOTTLENECKS AND INTERREGIONAL 23.16 CORRIDORS.] 23.17 Subdivision 1. [CANCELLATION.] $245,240,000 of the 23.18 appropriation from the general fund in Laws 2000, chapter 479, 23.19 article 1, section 2, subdivision 3, is canceled to the general 23.20 fund. 23.21 Subd. 2. [APPROPRIATION.] $245,240,000 is appropriated 23.22 from the trunk highway fund to the commissioner of 23.23 transportation. One-half is for state trunk highway 23.24 improvements within the seven-county metropolitan area primarily 23.25 for the purpose of improving traffic flow and expanding highway 23.26 capacity by eliminating traffic bottlenecks. One-half is for 23.27 improvements on state trunk highways outside the seven-county 23.28 metropolitan area that the commissioner designates as at-risk 23.29 interregional corridors. 23.30 Subd. 3. [BOND SALE.] To provide the money appropriated in 23.31 this section from the trunk highway fund, the commissioner of 23.32 finance shall sell and issue bonds of the state in an amount up 23.33 to $245,240,000 in the manner, upon the terms, and with the 23.34 effect prescribed by Minnesota Statutes, sections 167.50 to 23.35 167.52, and by the Minnesota Constitution, article XIV, section 23.36 11, at the times and in the amounts requested by the 24.1 commissioner of transportation. The proceeds of the bonds, 24.2 except accrued interest and any premium received on the sale of 24.3 the bonds, must be credited to a bond proceeds account in the 24.4 trunk highway fund. 24.5 Sec. 2. [CASH FLOW ACCOUNT CANCELLATION.] 24.6 $155,000,000 of the unobligated balance in the cash flow 24.7 account created in Minnesota Statutes, section 16A.152, 24.8 subdivision 1, is canceled to the general fund. 24.9 Sec. 3. Minnesota Statutes 2000, section 16A.103, 24.10 subdivision 1a, as amended by Laws 2002, chapter 220, article 24.11 13, section 1, is amended to read: 24.12 Subd. 1a. [FORECAST PARAMETERS.] The forecast must assume 24.13 the continuation of current laws and reasonable estimates of 24.14 projected growth in the national and state economies and 24.15 affected populations. Revenue must be estimated for all sources 24.16 provided for in current law. Expenditures must be estimated for 24.17 all obligations imposed by law and those projected to occur as a 24.18 result of variables outside the control of the legislature. 24.19 Expenditure estimates, other than for general education revenue 24.20 under section 126C.10, must not include an allowance for 24.21 inflation. 24.22 Sec. 4. Laws 2002, chapter 220, article 13, section 9, 24.23 subdivision 2, is amended to read: 24.24 Subd. 2. [SPECIAL COMPENSATION FUND.] After June 1, 2003, 24.25 but no later than June 30, 2003, the commissioner of finance 24.26 shall transfer$230,000,000$282,000,000 in assets of the excess 24.27 surplus account of the special compensation fund created under 24.28 Minnesota Statutes, section 176.129, to the general fund. 24.29 Sec. 5. [EFFECTIVE DATE.] 24.30 This article is effective the day following final enactment. 24.31 ARTICLE 8 24.32 DELAY OF AID PAYMENTS 24.33 Section 1. Minnesota Statutes 2001 Supplement, section 24.34 124D.11, subdivision 9, is amended to read: 24.35 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 24.36 Notwithstanding section 127A.45, subdivision 3, aid payments for 25.1 the current fiscal year to a charter school not in its first 25.2 year of operation shall be of an equal amount on each of the 23 25.3 payment dates. A charter school in its first year of operation 25.4 shall receive, on its first payment date, ten percent of its 25.5 cumulative amount guaranteed for the year and 22 payments of an 25.6 equal amount thereafter the sum of which shall be 90 percent of 25.7 the cumulative amount guaranteed. 25.8 (b) Notwithstanding paragraph (a), for a charter school 25.9 ceasing operation prior to the end of a school year,9085 25.10 percent of the amount due for the school year may be paid to the 25.11 school after audit of prior fiscal year and current fiscal year 25.12 pupil counts. 25.13 (c) Notwithstanding section 127A.45, subdivision 3, and 25.14 paragraph (a),9085 percent of the start-up cost aid under 25.15 subdivision 8 shall be paid within 45 days after the first day 25.16 of student attendance for that school year. 25.17 (d) In order to receive state aid payments under this 25.18 subdivision, a charter school in its first three years of 25.19 operation must submit a quarterly report to the department of 25.20 children, families, and learning. The report must list each 25.21 student by grade, show the student's start and end dates, if 25.22 any, with the charter school, and for any student participating 25.23 in a learning year program, the report must list the hours and 25.24 times of learning year activities. The report must be submitted 25.25 not more than two weeks after the end of the calendar quarter to 25.26 the department. The department must develop a Web-based 25.27 reporting form for charter schools to use when submitting 25.28 enrollment reports. A charter school in its fourth and 25.29 subsequent year of operation must submit enrollment information 25.30 to the department in the form and manner requested by the 25.31 department. 25.32 Sec. 2. Minnesota Statutes 2000, section 127A.45, 25.33 subdivision 2, is amended to read: 25.34 Subd. 2. [DEFINITIONS.] (a) The term "other district 25.35 receipts" means payments by county treasurers pursuant to 25.36 section 276.10, apportionments from the school endowment fund 26.1 pursuant to section 127A.33, apportionments by the county 26.2 auditor pursuant to section 127A.34, subdivision 2, and payments 26.3 to school districts by the commissioner of revenue pursuant to 26.4 chapter 298. 26.5 (b) The term "cumulative amount guaranteed" means the 26.6 product of 26.7 (1) the cumulative disbursement percentage shown in 26.8 subdivision 3; times 26.9 (2) the sum of 26.10 (i)9085 percent of the estimated aid and credit 26.11 entitlements paid according to subdivision 13; plus 26.12 (ii) 100 percent of the entitlements paid according to 26.13 subdivisions 11 and 12; plus 26.14 (iii) the other district receipts; plus 26.15 (iv) the final adjustment payment according to subdivision 26.16 9. 26.17 (c) The term "payment date" means the date on which state 26.18 payments to districts are made by the electronic funds transfer 26.19 method. If a payment date falls on a Saturday, a Sunday, or a 26.20 weekday which is a legal holiday, the payment shall be made on 26.21 the immediately preceding business day. The commissioner may 26.22 make payments on dates other than those listed in subdivision 3, 26.23 but only for portions of payments from any preceding payment 26.24 dates which could not be processed by the electronic funds 26.25 transfer method due to documented extenuating circumstances. 26.26 Sec. 3. Minnesota Statutes 2000, section 127A.45, 26.27 subdivision 10, is amended to read: 26.28 Subd. 10. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 26.29 fiscal year state general fund payments for a district 26.30 nonoperating fund must be made at9085 percent of the estimated 26.31 entitlement during the fiscal year of the entitlement. This 26.32 amount shall be paid in 12 equal monthly installments. The 26.33 amount of the actual entitlement, after adjustment for actual 26.34 data, minus the payments made during the fiscal year of the 26.35 entitlement must be paid prior to October 31 of the following 26.36 school year. The commissioner may make advance payments of debt 27.1 service equalization aid or homestead and agricultural credit 27.2 aid for a district's debt service fund earlier than would occur 27.3 under the preceding schedule if the district submits evidence 27.4 showing a serious cash flow problem in the fund. The 27.5 commissioner may make earlier payments during the year and, if 27.6 necessary, increase the percent of the entitlement paid to 27.7 reduce the cash flow problem. 27.8 Sec. 4. Minnesota Statutes 2000, section 127A.45, 27.9 subdivision 13, is amended to read: 27.10 Subd. 13. [AID PAYMENT PERCENTAGE.] Except as provided in 27.11 subdivisions 11, 12, 12a, and 14, each fiscal year, all 27.12 education aids and credits in this chapter and chapters 120A, 27.13 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and 27.14 section 273.1392, shall be paid at9085 percent of the 27.15 estimated entitlement during the fiscal year of the 27.16 entitlement. The final adjustment payment, according to 27.17 subdivision 9, must be the amount of the actual entitlement, 27.18 after adjustment for actual data, minus the payments made during 27.19 the fiscal year of the entitlement. 27.20 Sec. 5. Minnesota Statutes 2000, section 127A.45, 27.21 subdivision 14, is amended to read: 27.22 Subd. 14. [NONPUBLIC AIDS.] The state shall pay aid 27.23 according to sections 123B.40 to 123B.48 for pupils attending 27.24 nonpublic schools as follows: 27.25 (1) an advance payment by November 30 equal to9085 27.26 percent of the estimated entitlement for the current fiscal 27.27 year; and 27.28 (2) a final payment by October 31 of the following fiscal 27.29 year, adjusted for actual data. 27.30 If a payment advance to meet cash flow needs is requested 27.31 by a district and approved by the commissioner, the state shall 27.32 pay nonpublic pupil transportation aid according to section 27.33 123B.92 by October 31. 27.34 Sec. 6. Minnesota Statutes 2001 Supplement, section 27.35 127A.45, subdivision 14a, is amended to read: 27.36 Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding 28.1 subdivision 3, the state shall pay 100 percent of the aid for 28.2 the current year according to sections 124D.111, 124D.115, and 28.3 124D.118 and9085 percent of the aid for the current year 28.4 according to section 124D.1156 based on submitted monthly 28.5 vouchers showing meals and milk served. The remainingten15 28.6 percent according to section 124D.1156 shall be paid by October 28.7 30 of the following fiscal year. 28.8 Sec. 7. Minnesota Statutes 2000, section 127A.45, 28.9 subdivision 16, is amended to read: 28.10 Subd. 16. [PAYMENTS TO THIRD PARTIES.] Notwithstanding 28.11 subdivision 3,9085 percent of the amounts under section 28.12 123A.26, subdivision 3, shall be paid in equal installments on 28.13 August 30, December 30, and March 30, with aten15 percent 28.14 final adjustment payment on October 30 of the next fiscal year. 28.15 Sec. 8. [APPROPRIATION ADJUSTMENTS.] 28.16 The commissioner of finance shall adjust all education aid 28.17 and credit appropriations that are paid under Minnesota 28.18 Statutes, sections 124D.11 and 127A.45, in fiscal year 2003 to 28.19 reflect the changes made in sections 1 and 2. 28.20 ARTICLE 9 28.21 HEALTH AND HUMAN SERVICES APPROPRIATIONS 28.22 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 28.23 The dollar amounts shown in the columns marked 28.24 "APPROPRIATIONS" are added to or, if shown in parentheses, are 28.25 subtracted from the appropriations in Laws 2001, First Special 28.26 Session chapter 9, and Laws 2002, chapter 220, or other law, and 28.27 are appropriated from the general fund, or any other fund named, 28.28 to the agencies and for the purposes specified in this article, 28.29 to be available for the fiscal years indicated for each 28.30 purpose. The figures "2002" and "2003" used in this article 28.31 mean that the appropriation or appropriations listed under them 28.32 are available for the fiscal year ending June 30, 2002, or June 28.33 30, 2003, respectively. 28.34 SUMMARY BY FUND 28.35 2002 2003 TOTAL 28.36 General 29.1 Forecast 29.2 Adjustments $47,032,000 $26,019,000 $73,051,000 29.3 Nonforecast 350,000 (35,983,000) (35,633,000) 29.4 Health Care 29.5 Access (2,605,000) (4,816,000) (7,421,000) 29.6 Federal TANF (7,383,000) 8,636,000 1,253,000 29.7 State Government 29.8 Special Revenue -0- 4,000 4,000 29.9 APPROPRIATIONS 29.10 Available for the Year 29.11 Ending June 30 29.12 2002 2003 29.13 Sec. 2. COMMISSIONER OF 29.14 HUMAN SERVICES 29.15 Subdivision 1. Total 29.16 Appropriation $ 37,394,000 $ (6,644,000) 29.17 Summary by Fund 29.18 General 47,382,000 (10,464,000) 29.19 Health Care 29.20 Access (2,605,000) (4,816,000) 29.21 Federal TANF (7,383,000) 8,636,000 29.22 Subd. 2. Children's 29.23 Grants 29.24 General -0- (4,714,000) 29.25 This appropriation includes a reduction 29.26 of $6,548,000 in family preservation 29.27 and children's mental health grants due 29.28 to changes in allocations and an 29.29 increase of $1,834,000 in local 29.30 collaboratives wraparound services 29.31 coordination grants. 29.32 Subd. 3. Basic Health Care 29.33 Grants 29.34 General 9,689,000 838,000 29.35 Health Care 29.36 Access (2,605,000) (4,816,000) 29.37 The amounts that may be spent from this 29.38 appropriation for each purpose are as 29.39 follows: 29.40 (a) MinnesotaCare Grants 29.41 Health Care 29.42 Access (2,605,000) (4,816,000) 29.43 (b) MA Basic Health Care 29.44 Grants - Families and Children 29.45 General 7,437,000 (6,007,000) 29.46 (c) MA Basic Health Care 29.47 Grants - Elderly and Disabled 30.1 General (779,000) 2,407,000 30.2 [CRITICAL ACCESS PHARMACY PROVIDERS.] 30.3 Of this appropriation, $1,975,000 in 30.4 fiscal year 2003 is to the commissioner 30.5 to increase pharmacy dispensing fees to 30.6 critical access pharmacies as 30.7 authorized under Minnesota Statutes, 30.8 section 256B.0625, subdivision 13, 30.9 paragraph (d). 30.10 [NOTICE OF CHANGE IN DOCUMENTATION.] 30.11 The commissioner shall provide to all 30.12 medical assistance recipients receiving 30.13 coverage through the employed persons 30.14 with disabilities program under 30.15 Minnesota Statutes, section 256B.057, 30.16 subdivision 9, three-months advance 30.17 notice of the new employment 30.18 documentation requirement. 30.19 [MENTAL HEALTH SERVICES RATE INCREASE 30.20 PASSTHROUGH.] Prepaid health plans must 30.21 pass through to service providers the 30.22 rate increases provided under Minnesota 30.23 Statutes, section 256B.761. 30.24 (d) General Assistance 30.25 Medical Care Grants 30.26 General 2,681,000 4,438,000 30.27 (e) Health Care Grants - 30.28 Other Assistance 30.29 General 350,000 -0- 30.30 [U SPECIAL KIDS PROGRAM.] Of this 30.31 appropriation, $350,000 in fiscal year 30.32 2002 is immediately available to the 30.33 commissioner to be transferred 30.34 immediately to the University of 30.35 Minnesota for the U Special Kids 30.36 program. The money may be used to 30.37 match private grants. The money shall 30.38 be used to provide physician-supervised 30.39 medical case management services for up 30.40 to 50 Minnesota children in the program 30.41 who are eligible for medical 30.42 assistance. Any unspent portion of this 30.43 appropriation shall not cancel but 30.44 shall be available for these purposes 30.45 until June 30, 2005. This is a 30.46 one-time appropriation and shall not 30.47 become part of base level funding for 30.48 the 2004-2005 biennium. 30.49 [HIV/AIDS DRUG REBATES.] General fund 30.50 appropriations for HIV/AIDS grants and 30.51 services that are no longer needed as a 30.52 result of greater than anticipated 30.53 collections under the AIDS drug 30.54 assistance program rebate must first be 30.55 used to meet funding needs of the state 30.56 prescription drug program. 30.57 Subd. 4. Basic Health Care 30.58 Management 30.59 General -0- 75,000 31.1 The amounts that may be spent from this 31.2 appropriation for each purpose are as 31.3 follows: 31.4 Health Care Policy 31.5 Administration 31.6 General -0- 75,000 31.7 Subd. 5. State-Operated 31.8 Services 31.9 General -0- 5,000,000 31.10 Subd. 6. Continuing Care 31.11 Grants 31.12 [FUNDING USAGE.] Up to 75 percent of 31.13 the fiscal year 2004 appropriations for 31.14 family preservation grants, 31.15 developmental disability 31.16 semi-independent living services, 31.17 developmental disability family 31.18 support, adult mental health grants, 31.19 and children's mental health grants may 31.20 be used to fund calendar year 2003 31.21 allocations for these programs, with 31.22 the resulting calendar year funding 31.23 pattern continuing into the future. 31.24 Appropriation reductions associated 31.25 with this shift are onetime only. 31.26 General 27,896,000 (9,713,000) 31.27 The amounts that may be spent from this 31.28 appropriation for each purpose are as 31.29 follows: 31.30 (a) Medical Assistance 31.31 Long-Term Care Waivers and 31.32 Home Care Grants 31.33 General 26,054,000 26,552,000 31.34 [COMMUNITY SERVICES DEVELOPMENT GRANTS 31.35 USAGE.] For fiscal year 2003, the 31.36 commissioner may make grants under the 31.37 community services development grants 31.38 program in Minnesota Statutes, section 31.39 256.9754, for the development of 31.40 housing options for persons under age 31.41 65 residing in nursing facilities. 31.42 (b) Medical Assistance 31.43 Long-Term Care Facilities 31.44 Grants 31.45 General 1,815,000 (5,586,000) 31.46 (c) Group Residential 31.47 Housing Grants 31.48 General 27,000 689,000 31.49 (d) Chemical Dependency 31.50 Entitlement Grants 31.51 General -0- (1,000,000) 31.52 (e) Community Social 31.53 Service Grants 32.1 General -0- (13,730,000) 32.2 (f) Mental Health 32.3 Grants 32.4 General -0- (13,635,000) 32.5 This reduction is onetime only. 32.6 (g) Community Support 32.7 Grants 32.8 General -0- (3,003,000) 32.9 Subd. 7. Economic 32.10 Support Grants 32.11 General 9,797,000 (1,950,000) 32.12 Federal TANF (7,383,000) 8,636,000 32.13 The amounts that may be spent from the 32.14 appropriation for each purpose are as 32.15 follows: 32.16 (a) Assistance to Families 32.17 Grants 32.18 General 8,712,000 (3,740,000) 32.19 Federal TANF (7,383,000) 8,636,000 32.20 (b) General Assistance 32.21 Grants 32.22 General 1,361,000 1,779,000 32.23 (c) Minnesota Supplemental 32.24 Aid Grants 32.25 General (276,000) 11,000 32.26 Sec. 3. COMMISSIONER OF HEALTH 32.27 Subdivision 1. Total Appropriation 32.28 Reductions -0- 4,000 32.29 Summary by Fund 32.30 State Government 32.31 Special Revenue -0- 4,000 32.32 Subd. 2. Family and Provider 32.33 Compliance 32.34 State Government 32.35 Special Revenue -0- 4,000 32.36 [REGISTRATION COSTS.] This 32.37 appropriation in fiscal year 2003 is to 32.38 the commissioner for the costs of 32.39 registering establishments under 32.40 Minnesota Statutes, section 144D.025. 32.41 Sec. 4. VETERANS NURSING 32.42 HOMES BOARD 32.43 Summary by Fund 32.44 General -0- 500,000 33.1 [DEFICIENCY APPROPRIATION.] The 33.2 appropriation to the veterans nursing 33.3 homes board for fiscal year 2003 is for 33.4 a deficiency in board operations. This 33.5 is a one-time appropriation and shall 33.6 not become part of base-level funding 33.7 for the 2004-2005 biennium. 33.8 Sec. 5. Laws 2002, chapter 220, article 6, section 3, 33.9 subdivision 2, is amended to read: 33.10 Subd. 2. Adult Institutions (5,200,000) (1,750,000) 33.11 The base for fiscal year 2004 shall be 33.12 reduced by$8,145,000$1,750,000, and 33.13 for fiscal year 2005 by$8,145,000.33.14The commissioner of corrections shall33.15develop an agencywide spending plan for33.16the 2004-2005 biennium and report to33.17the chairs and ranking minority members33.18of the house and senate committees with33.19jurisdiction over criminal justice33.20policy and funding on its33.21recommendations by January 15,33.222003$1,750,000. 33.23 Sec. 6. [VETERANS NURSING HOMES BOARD FUNDING.] 33.24 (a) Notwithstanding Minnesota Statutes, section 16B.31, 33.25 subdivision 7, on July 1, 2002, the commissioner of 33.26 administration shall transfer to the veterans nursing homes 33.27 board any remaining portion of the payments received from 33.28 contractors for the mold damage at the Luverne facility. 33.29 (b) Notwithstanding the provisions of Minnesota Statutes, 33.30 section 16A.151, any payments made during fiscal year 2003 from 33.31 contractors to settle legal issues regarding the mold damage at 33.32 the Luverne facility are appropriated to the veterans nursing 33.33 homes board. 33.34 (c) Total appropriations to the veterans nursing homes 33.35 board under this section shall not exceed $900,000. 33.36 Sec. 7. [EXEMPTIONS FROM REDUCTION IN CONTRACT 33.37 EXPENDITURES AND FROM HIRING FREEZE.] 33.38 The department of human services is exempt from the hiring 33.39 freeze established in Laws 2002, chapter 220, article 10, 33.40 section 38, and the contract moratorium established in Laws 33.41 2002, chapter 220, article 10, section 37, as it relates to the 33.42 establishment and implementation of a supplemental drug rebate 33.43 program and a critical access pharmacy program. 33.44 Sec. 8. [SUNSET OF UNCODIFIED LANGUAGE.] 34.1 All uncodified language contained in this article expires 34.2 on June 30, 2003, unless a different expiration date is explicit. 34.3 Sec. 9. [EFFECTIVE DATE.] 34.4 Except as otherwise provided in this article, this article 34.5 is effective the day following final enactment. 34.6 ARTICLE 10 34.7 HEALTH AND HUMAN SERVICES 34.8 Section 1. Minnesota Statutes 2000, section 144D.01, 34.9 subdivision 4, is amended to read: 34.10 Subd. 4. [HOUSING WITH SERVICES ESTABLISHMENT OR 34.11 ESTABLISHMENT.] (a) "Housing with services establishment" or 34.12 "establishment" means: 34.13 (1) an establishment providing sleeping accommodations to 34.14 one or more adult residents, at least 80 percent of which are 55 34.15 years of age or older, and offering or providing, for a fee, one 34.16 or more regularly scheduled health-related services or two or 34.17 more regularly scheduled supportive services, whether offered or 34.18 provided directly by the establishment or by another entity 34.19 arranged for by the establishment; or 34.20 (2) an establishment that registers under section 144D.025. 34.21 (b) Housing with services establishment does not include: 34.22 (1) a nursing home licensed under chapter 144A; 34.23 (2) a hospital, certified boarding care home, or supervised 34.24 living facility licensed under sections 144.50 to 144.56; 34.25 (3) a board and lodging establishment licensed under 34.26 chapter 157 and Minnesota Rules, parts 9520.0500 to 9520.0670, 34.27 9525.0215 to 9525.0355, 9525.0500 to 9525.0660, or 9530.4100 to 34.28 9530.4450, or under chapter 245B; 34.29 (4) a board and lodging establishment which serves as a 34.30 shelter for battered women or other similar purpose; 34.31 (5) a family adult foster care home licensed by the 34.32 department of human services; 34.33 (6) private homes in which the residents are related by 34.34 kinship, law, or affinity with the providers of services; 34.35 (7) residential settings for persons with mental 34.36 retardation or related conditions in which the services are 35.1 licensed under Minnesota Rules, parts 9525.2100 to 9525.2140, or 35.2 applicable successor rules or laws; 35.3 (8) a home-sharing arrangement such as when an elderly or 35.4 disabled person or single-parent family makes lodging in a 35.5 private residence available to another person in exchange for 35.6 services or rent, or both; 35.7 (9) a duly organized condominium, cooperative, common 35.8 interest community, or owners' association of the foregoing 35.9 where at least 80 percent of the units that comprise the 35.10 condominium, cooperative, or common interest community are 35.11 occupied by individuals who are the owners, members, or 35.12 shareholders of the units; or 35.13 (10) services for persons with developmental disabilities 35.14 that are provided under a license according to Minnesota Rules, 35.15 parts 9525.2000 to 9525.2140 in effect until January 1, 1998, or 35.16 under chapter 245B. 35.17 Sec. 2. [144D.025] [OPTIONAL REGISTRATION.] 35.18 An establishment that meets all the requirements of this 35.19 chapter except that fewer than 80 percent of the adult residents 35.20 are age 55 or older may, at its option, register as a housing 35.21 with services establishment. 35.22 Sec. 3. Minnesota Statutes 2001 Supplement, section 35.23 256.01, subdivision 2, as amended by Laws 2002, chapter 220, 35.24 article 15, section 4, is amended to read: 35.25 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 35.26 section 241.021, subdivision 2, the commissioner of human 35.27 services shall: 35.28 (1) Administer and supervise all forms of public assistance 35.29 provided for by state law and other welfare activities or 35.30 services as are vested in the commissioner. Administration and 35.31 supervision of human services activities or services includes, 35.32 but is not limited to, assuring timely and accurate distribution 35.33 of benefits, completeness of service, and quality program 35.34 management. In addition to administering and supervising human 35.35 services activities vested by law in the department, the 35.36 commissioner shall have the authority to: 36.1 (a) require county agency participation in training and 36.2 technical assistance programs to promote compliance with 36.3 statutes, rules, federal laws, regulations, and policies 36.4 governing human services; 36.5 (b) monitor, on an ongoing basis, the performance of county 36.6 agencies in the operation and administration of human services, 36.7 enforce compliance with statutes, rules, federal laws, 36.8 regulations, and policies governing welfare services and promote 36.9 excellence of administration and program operation; 36.10 (c) develop a quality control program or other monitoring 36.11 program to review county performance and accuracy of benefit 36.12 determinations; 36.13 (d) require county agencies to make an adjustment to the 36.14 public assistance benefits issued to any individual consistent 36.15 with federal law and regulation and state law and rule and to 36.16 issue or recover benefits as appropriate; 36.17 (e) delay or deny payment of all or part of the state and 36.18 federal share of benefits and administrative reimbursement 36.19 according to the procedures set forth in section 256.017; 36.20 (f) make contracts with and grants to public and private 36.21 agencies and organizations, both profit and nonprofit, and 36.22 individuals, using appropriated funds; and 36.23 (g) enter into contractual agreements with federally 36.24 recognized Indian tribes with a reservation in Minnesota to the 36.25 extent necessary for the tribe to operate a federally approved 36.26 family assistance program or any other program under the 36.27 supervision of the commissioner. The commissioner shall consult 36.28 with the affected county or counties in the contractual 36.29 agreement negotiations, if the county or counties wish to be 36.30 included, in order to avoid the duplication of county and tribal 36.31 assistance program services. The commissioner may establish 36.32 necessary accounts for the purposes of receiving and disbursing 36.33 funds as necessary for the operation of the programs. 36.34 (2) Inform county agencies, on a timely basis, of changes 36.35 in statute, rule, federal law, regulation, and policy necessary 36.36 to county agency administration of the programs. 37.1 (3) Administer and supervise all child welfare activities; 37.2 promote the enforcement of laws protecting handicapped, 37.3 dependent, neglected and delinquent children, and children born 37.4 to mothers who were not married to the children's fathers at the 37.5 times of the conception nor at the births of the children; 37.6 license and supervise child-caring and child-placing agencies 37.7 and institutions; supervise the care of children in boarding and 37.8 foster homes or in private institutions; and generally perform 37.9 all functions relating to the field of child welfare now vested 37.10 in the state board of control. 37.11 (4) Administer and supervise all noninstitutional service 37.12 to handicapped persons, including those who are visually 37.13 impaired, hearing impaired, or physically impaired or otherwise 37.14 handicapped. The commissioner may provide and contract for the 37.15 care and treatment of qualified indigent children in facilities 37.16 other than those located and available at state hospitals when 37.17 it is not feasible to provide the service in state hospitals. 37.18 (5) Assist and actively cooperate with other departments, 37.19 agencies and institutions, local, state, and federal, by 37.20 performing services in conformity with the purposes of Laws 37.21 1939, chapter 431. 37.22 (6) Act as the agent of and cooperate with the federal 37.23 government in matters of mutual concern relative to and in 37.24 conformity with the provisions of Laws 1939, chapter 431, 37.25 including the administration of any federal funds granted to the 37.26 state to aid in the performance of any functions of the 37.27 commissioner as specified in Laws 1939, chapter 431, and 37.28 including the promulgation of rules making uniformly available 37.29 medical care benefits to all recipients of public assistance, at 37.30 such times as the federal government increases its participation 37.31 in assistance expenditures for medical care to recipients of 37.32 public assistance, the cost thereof to be borne in the same 37.33 proportion as are grants of aid to said recipients. 37.34 (7) Establish and maintain any administrative units 37.35 reasonably necessary for the performance of administrative 37.36 functions common to all divisions of the department. 38.1 (8) Act as designated guardian of both the estate and the 38.2 person of all the wards of the state of Minnesota, whether by 38.3 operation of law or by an order of court, without any further 38.4 act or proceeding whatever, except as to persons committed as 38.5 mentally retarded. For children under the guardianship of the 38.6 commissioner whose interests would be best served by adoptive 38.7 placement, the commissioner may contract with a licensed 38.8 child-placing agency or a Minnesota tribal social services 38.9 agency to provide adoption services. A contract with a licensed 38.10 child-placing agency must be designed to supplement existing 38.11 county efforts and may not replace existing county programs, 38.12 unless the replacement is agreed to by the county board and the 38.13 appropriate exclusive bargaining representative or the 38.14 commissioner has evidence that child placements of the county 38.15 continue to be substantially below that of other counties. 38.16 Funds encumbered and obligated under an agreement for a specific 38.17 child shall remain available until the terms of the agreement 38.18 are fulfilled or the agreement is terminated. 38.19 (9) Act as coordinating referral and informational center 38.20 on requests for service for newly arrived immigrants coming to 38.21 Minnesota. 38.22 (10) The specific enumeration of powers and duties as 38.23 hereinabove set forth shall in no way be construed to be a 38.24 limitation upon the general transfer of powers herein contained. 38.25 (11) Establish county, regional, or statewide schedules of 38.26 maximum fees and charges which may be paid by county agencies 38.27 for medical, dental, surgical, hospital, nursing and nursing 38.28 home care and medicine and medical supplies under all programs 38.29 of medical care provided by the state and for congregate living 38.30 care under the income maintenance programs. 38.31 (12) Have the authority to conduct and administer 38.32 experimental projects to test methods and procedures of 38.33 administering assistance and services to recipients or potential 38.34 recipients of public welfare. To carry out such experimental 38.35 projects, it is further provided that the commissioner of human 38.36 services is authorized to waive the enforcement of existing 39.1 specific statutory program requirements, rules, and standards in 39.2 one or more counties. The order establishing the waiver shall 39.3 provide alternative methods and procedures of administration, 39.4 shall not be in conflict with the basic purposes, coverage, or 39.5 benefits provided by law, and in no event shall the duration of 39.6 a project exceed four years. It is further provided that no 39.7 order establishing an experimental project as authorized by the 39.8 provisions of this section shall become effective until the 39.9 following conditions have been met: 39.10 (a) The secretary of health and human services of the 39.11 United States has agreed, for the same project, to waive state 39.12 plan requirements relative to statewide uniformity. 39.13 (b) A comprehensive plan, including estimated project 39.14 costs, shall be approved by the legislative advisory commission 39.15 and filed with the commissioner of administration. 39.16 (13) According to federal requirements, establish 39.17 procedures to be followed by local welfare boards in creating 39.18 citizen advisory committees, including procedures for selection 39.19 of committee members. 39.20 (14) Allocate federal fiscal disallowances or sanctions 39.21 which are based on quality control error rates for the aid to 39.22 families with dependent children program formerly codified in 39.23 sections 256.72 to 256.87, medical assistance, or food stamp 39.24 program in the following manner: 39.25 (a) One-half of the total amount of the disallowance shall 39.26 be borne by the county boards responsible for administering the 39.27 programs. For the medical assistance and the AFDC program 39.28 formerly codified in sections 256.72 to 256.87, disallowances 39.29 shall be shared by each county board in the same proportion as 39.30 that county's expenditures for the sanctioned program are to the 39.31 total of all counties' expenditures for the AFDC program 39.32 formerly codified in sections 256.72 to 256.87, and medical 39.33 assistance programs. For the food stamp program, sanctions 39.34 shall be shared by each county board, with 50 percent of the 39.35 sanction being distributed to each county in the same proportion 39.36 as that county's administrative costs for food stamps are to the 40.1 total of all food stamp administrative costs for all counties, 40.2 and 50 percent of the sanctions being distributed to each county 40.3 in the same proportion as that county's value of food stamp 40.4 benefits issued are to the total of all benefits issued for all 40.5 counties. Each county shall pay its share of the disallowance 40.6 to the state of Minnesota. When a county fails to pay the 40.7 amount due hereunder, the commissioner may deduct the amount 40.8 from reimbursement otherwise due the county, or the attorney 40.9 general, upon the request of the commissioner, may institute 40.10 civil action to recover the amount due. 40.11 (b) Notwithstanding the provisions of paragraph (a), if the 40.12 disallowance results from knowing noncompliance by one or more 40.13 counties with a specific program instruction, and that knowing 40.14 noncompliance is a matter of official county board record, the 40.15 commissioner may require payment or recover from the county or 40.16 counties, in the manner prescribed in paragraph (a), an amount 40.17 equal to the portion of the total disallowance which resulted 40.18 from the noncompliance, and may distribute the balance of the 40.19 disallowance according to paragraph (a). 40.20 (15) Develop and implement special projects that maximize 40.21 reimbursements and result in the recovery of money to the 40.22 state. For the purpose of recovering state money, the 40.23 commissioner may enter into contracts with third parties. Any 40.24 recoveries that result from projects or contracts entered into 40.25 under this paragraph shall be deposited in the state treasury 40.26 and credited to a special account until the balance in the 40.27 account reaches $1,000,000. When the balance in the account 40.28 exceeds $1,000,000, the excess shall be transferred and credited 40.29 to the general fund. All money in the account is appropriated 40.30 to the commissioner for the purposes of this paragraph. 40.31 (16) Have the authority to make direct payments to 40.32 facilities providing shelter to women and their children 40.33 according to section 256D.05, subdivision 3. Upon the written 40.34 request of a shelter facility that has been denied payments 40.35 under section 256D.05, subdivision 3, the commissioner shall 40.36 review all relevant evidence and make a determination within 30 41.1 days of the request for review regarding issuance of direct 41.2 payments to the shelter facility. Failure to act within 30 days 41.3 shall be considered a determination not to issue direct payments. 41.4 (17) Have the authority to establish and enforce the 41.5 following county reporting requirements: 41.6 (a) The commissioner shall establish fiscal and statistical 41.7 reporting requirements necessary to account for the expenditure 41.8 of funds allocated to counties for human services programs. 41.9 When establishing financial and statistical reporting 41.10 requirements, the commissioner shall evaluate all reports, in 41.11 consultation with the counties, to determine if the reports can 41.12 be simplified or the number of reports can be reduced. 41.13 (b) The county board shall submit monthly or quarterly 41.14 reports to the department as required by the commissioner. 41.15 Monthly reports are due no later than 15 working days after the 41.16 end of the month. Quarterly reports are due no later than 30 41.17 calendar days after the end of the quarter, unless the 41.18 commissioner determines that the deadline must be shortened to 41.19 20 calendar days to avoid jeopardizing compliance with federal 41.20 deadlines or risking a loss of federal funding. Only reports 41.21 that are complete, legible, and in the required format shall be 41.22 accepted by the commissioner. 41.23 (c) If the required reports are not received by the 41.24 deadlines established in clause (b), the commissioner may delay 41.25 payments and withhold funds from the county board until the next 41.26 reporting period. When the report is needed to account for the 41.27 use of federal funds and the late report results in a reduction 41.28 in federal funding, the commissioner shall withhold from the 41.29 county boards with late reports an amount equal to the reduction 41.30 in federal funding until full federal funding is received. 41.31 (d) A county board that submits reports that are late, 41.32 illegible, incomplete, or not in the required format for two out 41.33 of three consecutive reporting periods is considered 41.34 noncompliant. When a county board is found to be noncompliant, 41.35 the commissioner shall notify the county board of the reason the 41.36 county board is considered noncompliant and request that the 42.1 county board develop a corrective action plan stating how the 42.2 county board plans to correct the problem. The corrective 42.3 action plan must be submitted to the commissioner within 45 days 42.4 after the date the county board received notice of noncompliance. 42.5 (e) The final deadline for fiscal reports or amendments to 42.6 fiscal reports is one year after the date the report was 42.7 originally due. If the commissioner does not receive a report 42.8 by the final deadline, the county board forfeits the funding 42.9 associated with the report for that reporting period and the 42.10 county board must repay any funds associated with the report 42.11 received for that reporting period. 42.12 (f) The commissioner may not delay payments, withhold 42.13 funds, or require repayment under paragraph (c) or (e) if the 42.14 county demonstrates that the commissioner failed to provide 42.15 appropriate forms, guidelines, and technical assistance to 42.16 enable the county to comply with the requirements. If the 42.17 county board disagrees with an action taken by the commissioner 42.18 under paragraph (c) or (e), the county board may appeal the 42.19 action according to sections 14.57 to 14.69. 42.20 (g) Counties subject to withholding of funds under 42.21 paragraph (c) or forfeiture or repayment of funds under 42.22 paragraph (e) shall not reduce or withhold benefits or services 42.23 to clients to cover costs incurred due to actions taken by the 42.24 commissioner under paragraph (c) or (e). 42.25 (18) Allocate federal fiscal disallowances or sanctions for 42.26 audit exceptions when federal fiscal disallowances or sanctions 42.27 are based on a statewide random sample for the foster care 42.28 program under title IV-E of the Social Security Act, United 42.29 States Code, title 42, in direct proportion to each county's 42.30 title IV-E foster care maintenance claim for that period. 42.31 (19) Be responsible for ensuring the detection, prevention, 42.32 investigation, and resolution of fraudulent activities or 42.33 behavior by applicants, recipients, and other participants in 42.34 the human services programs administered by the department. 42.35 (20) Require county agencies to identify overpayments, 42.36 establish claims, and utilize all available and cost-beneficial 43.1 methodologies to collect and recover these overpayments in the 43.2 human services programs administered by the department. 43.3 (21) Have the authority to administer a drug rebate program 43.4 for drugs purchased pursuant to the prescription drug program 43.5 established under section 256.955 after the beneficiary's 43.6 satisfaction of any deductible established in the program. The 43.7 commissioner shall require a rebate agreement from all 43.8 manufacturers of covered drugs as defined in section 256B.0625, 43.9 subdivision 13. Rebate agreements for prescription drugs 43.10 delivered on or after July 1, 2002, must include rebates for 43.11 individuals covered under the prescription drug program who are 43.12 under 65 years of age. For each drug, the amount of the rebate 43.13 shall be equal to the basic rebate as defined for purposes of 43.14 the federal rebate program in United States Code, title 42, 43.15 section 1396r-8(c)(1). This basic rebate shall be applied to 43.16 single-source and multiple-source drugs. The manufacturers must 43.17 provide full payment within 30 days of receipt of the state 43.18 invoice for the rebate within the terms and conditions used for 43.19 the federal rebate program established pursuant to section 1927 43.20 of title XIX of the Social Security Act. The manufacturers must 43.21 provide the commissioner with any information necessary to 43.22 verify the rebate determined per drug. The rebate program shall 43.23 utilize the terms and conditions used for the federal rebate 43.24 program established pursuant to section 1927 of title XIX of the 43.25 Social Security Act. 43.26 (22) Have the authority to administer the federal drug 43.27 rebate program for drugs purchased under the medical assistance 43.28 program as allowed by section 1927 of title XIX of the Social 43.29 Security Act and according to the terms and conditions of 43.30 section 1927. Rebates shall be collected for all drugs that 43.31 have been dispensed or administered in an outpatient setting and 43.32 that are from manufacturers who have signed a rebate agreement 43.33 with the United States Department of Health and Human Services. 43.34 (23) Have the authority to administer a supplemental drug 43.35 rebate program for drugs purchased under the medical assistance 43.36 programand under the prescription drug program established in44.1section 256.955. The commissioner may enter into supplemental 44.2 rebate contracts with pharmaceutical manufacturers and may 44.3 require prior authorization for drugs that are from 44.4 manufacturers that have not signed a supplemental rebate 44.5 contract. Prior authorization of drugs shall be subject to the 44.6 provisions of section 256B.0625, subdivision 13, paragraph (b). 44.7 (24) Operate the department's communication systems account 44.8 established in Laws 1993, First Special Session chapter 1, 44.9 article 1, section 2, subdivision 2, to manage shared 44.10 communication costs necessary for the operation of the programs 44.11 the commissioner supervises. A communications account may also 44.12 be established for each regional treatment center which operates 44.13 communications systems. Each account must be used to manage 44.14 shared communication costs necessary for the operations of the 44.15 programs the commissioner supervises. The commissioner may 44.16 distribute the costs of operating and maintaining communication 44.17 systems to participants in a manner that reflects actual usage. 44.18 Costs may include acquisition, licensing, insurance, 44.19 maintenance, repair, staff time and other costs as determined by 44.20 the commissioner. Nonprofit organizations and state, county, 44.21 and local government agencies involved in the operation of 44.22 programs the commissioner supervises may participate in the use 44.23 of the department's communications technology and share in the 44.24 cost of operation. The commissioner may accept on behalf of the 44.25 state any gift, bequest, devise or personal property of any 44.26 kind, or money tendered to the state for any lawful purpose 44.27 pertaining to the communication activities of the department. 44.28 Any money received for this purpose must be deposited in the 44.29 department's communication systems accounts. Money collected by 44.30 the commissioner for the use of communication systems must be 44.31 deposited in the state communication systems account and is 44.32 appropriated to the commissioner for purposes of this section. 44.33 (25) Receive any federal matching money that is made 44.34 available through the medical assistance program for the 44.35 consumer satisfaction survey. Any federal money received for 44.36 the survey is appropriated to the commissioner for this 45.1 purpose. The commissioner may expend the federal money received 45.2 for the consumer satisfaction survey in either year of the 45.3 biennium. 45.4 (26) Incorporate cost reimbursement claims from First Call 45.5 Minnesota and Greater Twin Cities United Way into the federal 45.6 cost reimbursement claiming processes of the department 45.7 according to federal law, rule, and regulations. Any 45.8 reimbursement received is appropriated to the commissioner and 45.9 shall be disbursed to First Call Minnesota and Greater Twin 45.10 Cities United Way according to normal department payment 45.11 schedules. 45.12 (27) Develop recommended standards for foster care homes 45.13 that address the components of specialized therapeutic services 45.14 to be provided by foster care homes with those services. 45.15 Sec. 4. Minnesota Statutes 2000, section 256.9657, 45.16 subdivision 1, as amended by Laws 2002, chapter 220, article 14, 45.17 section 5, is amended to read: 45.18 Subdivision 1. [NURSING HOME LICENSE SURCHARGE.] (a) 45.19 Effective July 1, 1993, each non-state-operated nursing home 45.20 licensed under chapter 144A shall pay to the commissioner an 45.21 annual surcharge according to the schedule in subdivision 4. 45.22 The surcharge shall be calculated as $620 per licensed bed. If 45.23 the number of licensed beds is reduced, the surcharge shall be 45.24 based on the number of remaining licensed beds the second month 45.25 following the receipt of timely notice by the commissioner of 45.26 human services that beds have been delicensed. The nursing home 45.27 must notify the commissioner of health in writing when beds are 45.28 delicensed. The commissioner of health must notify the 45.29 commissioner of human services within ten working days after 45.30 receiving written notification. If the notification is received 45.31 by the commissioner of human services by the 15th of the month, 45.32 the invoice for the second following month must be reduced to 45.33 recognize the delicensing of beds. Beds on layaway status 45.34 continue to be subject to the surcharge. The commissioner of 45.35 human services must acknowledge a medical care surcharge appeal 45.36 within 30 days of receipt of the written appeal from the 46.1 provider. 46.2 (b) Effective July 1, 1994, the surcharge in paragraph (a) 46.3 shall be increased to $625. 46.4 (c) Effective August 15, 2003, the surcharge under 46.5 paragraph (b) shall be increased by an amount necessary to 46.6 ensure a net gain to the general fund of $9,620,000 during 46.7 fiscal year 2004 as a result of: 46.8 (1) the total transfers anticipated during the fiscal year 46.9 ending June 30, 2004, under section 256B.19, subdivision 1d, 46.10 paragraph (c); 46.11 (2) the county nursing home payment adjustments under 46.12 section 256B.431, subdivision 23, paragraph (c); 46.13 (3) the surcharges under this paragraph; and 46.14 (4) the nursing facility rate increases under section 46.15 256B.431, subdivision 37. 46.16 The increase under this paragraph shall not exceed $365 per bed. 46.17 (d) Effective August 15, 2004, the surcharge under 46.18 paragraph (c) shall be equal to an amount necessary to ensure a 46.19 net gain to the general fund each fiscal year of $10,228,000 as 46.20 a result of: 46.21 (1) the total transfers anticipated during the fiscal year 46.22 under section 256B.19, subdivision 1d, paragraph (c); 46.23 (2) the county nursing home payment adjustments under 46.24 section 256B.431, subdivision 23, paragraph (c); 46.25 (3) the surcharges under this paragraph; and 46.26 (4) the nursing facility rate increases under section 46.27 256B.431, subdivision 37. 46.28 The surcharge under this paragraph shall not exceed $365 per bed. 46.29 (e) Between March 1, 2002, and August 15, 2003, a facility 46.30 governed by this subdivision may elect to assume full 46.31 participation in the medical assistance program by agreeing to 46.32 comply with all of the requirements of the medical assistance 46.33 program, including the rate equalization law in section 256B.48, 46.34 subdivision 1, paragraph (a), and all other requirements 46.35 established in law or rule, and to begin intake of new medical 46.36 assistance recipients. Rates will be determined under Minnesota 47.1 Rules, parts 9549.0010 to 9549.0080. Notwithstanding section 47.2 256B.431, subdivision 27, paragraph (i), rate calculations will 47.3 be subject to limits as prescribed in rule and law. Other than 47.4 the adjustments in Minnesota Rules, part 9549.0057; sections 47.5 256B.431, subdivisions 30 and 32; 256B.437, subdivision 3, 47.6 paragraph (b), and any other applicable legislation enacted 47.7 prior to the finalization of rates, facilities assuming full 47.8 participation in medical assistance under this paragraph are not 47.9 eligible for any rate adjustments until the July 1 following 47.10 their settle-up period. 47.11 [EFFECTIVE DATE.] This section is effective retroactive to 47.12 March 1, 2002. 47.13 Sec. 5. Minnesota Statutes 2001 Supplement, section 47.14 256B.057, subdivision 9, is amended to read: 47.15 Subd. 9. [EMPLOYED PERSONS WITH DISABILITIES.] (a) Medical 47.16 assistance may be paid for a person who is employed and who: 47.17 (1) meets the definition of disabled under the supplemental 47.18 security income program; 47.19 (2) is at least 16 but less than 65 years of age; 47.20 (3) meets the asset limits in paragraph (b); and 47.21 (4) pays a premium, if required, under paragraph (c). 47.22 The person must verify earnings from employment by documenting 47.23 that social security and Medicare taxes are withheld, and, if 47.24 applicable, state and federal income taxes are also withheld. 47.25 If the person is self-employed, the person must document payment 47.26 of self-employment tax and, if applicable, state and federal 47.27 income taxes. 47.28 Any spousal income or assets shall be disregarded for purposes 47.29 of eligibility and premium determinations. 47.30 After the month of enrollment, a person enrolled in medical 47.31 assistance under this subdivision who is temporarily unable to 47.32 work and without receipt of earned income due to a medical 47.33 condition, as verified by a physician, may retain eligibility 47.34 for up to four calendar months. 47.35 (b) For purposes of determining eligibility under this 47.36 subdivision, a person's assets must not exceed $20,000, 48.1 excluding: 48.2 (1) all assets excluded under section 256B.056; 48.3 (2) retirement accounts, including individual accounts, 48.4 401(k) plans, 403(b) plans, Keogh plans, and pension plans; and 48.5 (3) medical expense accounts set up through the person's 48.6 employer. 48.7 (c) A person whose earned and unearned income is equal to 48.8 or greater than 100 percent of federal poverty guidelines for 48.9 the applicable family size must pay a premium to be eligible for 48.10 medical assistance under this subdivision. The premium shall be 48.11 based on the person's gross earned and unearned income and the 48.12 applicable family size using a sliding fee scale established by 48.13 the commissioner, which begins at one percent of income at 100 48.14 percent of the federal poverty guidelines and increases to 7.5 48.15 percent of income for those with incomes at or above 300 percent 48.16 of the federal poverty guidelines. Annual adjustments in the 48.17 premium schedule based upon changes in the federal poverty 48.18 guidelines shall be effective for premiums due in July of each 48.19 year. 48.20 (d) A person's eligibility and premium shall be determined 48.21 by the local county agency. Premiums must be paid to the 48.22 commissioner. All premiums are dedicated to the commissioner. 48.23 (e) Any required premium shall be determined at application 48.24 and redetermined annually at recertification or when a change in 48.25 income or family size occurs. 48.26 (f) Premium payment is due upon notification from the 48.27 commissioner of the premium amount required. Premiums may be 48.28 paid in installments at the discretion of the commissioner. 48.29 (g) Nonpayment of the premium shall result in denial or 48.30 termination of medical assistance unless the person demonstrates 48.31 good cause for nonpayment. Good cause exists if the 48.32 requirements specified in Minnesota Rules, part 9506.0040, 48.33 subpart 7, items B to D, are met. Nonpayment shall include 48.34 payment with a returned, refused, or dishonored instrument. The 48.35 commissioner may require a guaranteed form of payment as the 48.36 only means to replace a returned, refused, or dishonored 49.1 instrument. 49.2 Sec. 6. Minnesota Statutes 2001 Supplement, section 49.3 256B.0625, subdivision 13, as amended by Laws 2002, chapter 220, 49.4 article 15, section 13, is amended to read: 49.5 Subd. 13. [DRUGS.] (a) Medical assistance covers drugs, 49.6 except for fertility drugs when specifically used to enhance 49.7 fertility, if prescribed by a licensed practitioner and 49.8 dispensed by a licensed pharmacist, by a physician enrolled in 49.9 the medical assistance program as a dispensing physician, or by 49.10 a physician or a nurse practitioner employed by or under 49.11 contract with a community health board as defined in section 49.12 145A.02, subdivision 5, for the purposes of communicable disease 49.13 control. The commissioner, after receiving recommendations from 49.14 professional medical associations and professional pharmacist 49.15 associations, shall designate a formulary committee to advise 49.16 the commissioner on the names of drugs for which payment is 49.17 made, recommend a system for reimbursing providers on a set fee 49.18 or charge basis rather than the present system, and develop 49.19 methods encouraging use of generic drugs when they are less 49.20 expensive and equally effective as trademark drugs. The 49.21 formulary committee shall consist of nine members, four of whom 49.22 shall be physicians who are not employed by the department of 49.23 human services, and a majority of whose practice is for persons 49.24 paying privately or through health insurance, three of whom 49.25 shall be pharmacists who are not employed by the department of 49.26 human services, and a majority of whose practice is for persons 49.27 paying privately or through health insurance, a consumer 49.28 representative, and a nursing home representative. Committee 49.29 members shall serve three-year terms and shall serve without 49.30 compensation. Members may be reappointed once. 49.31 (b) The commissioner shall establish a drug formulary. Its 49.32 establishment and publication shall not be subject to the 49.33 requirements of the Administrative Procedure Act, but the 49.34 formulary committee shall review and comment on the formulary 49.35 contents. 49.36 The formulary shall not include: 50.1 (i) drugs or products for which there is no federal 50.2 funding; 50.3 (ii) over-the-counter drugs, except for antacids, 50.4 acetaminophen, family planning products, aspirin, insulin, 50.5 products for the treatment of lice, vitamins for adults with 50.6 documented vitamin deficiencies, vitamins for children under the 50.7 age of seven and pregnant or nursing women, and any other 50.8 over-the-counter drug identified by the commissioner, in 50.9 consultation with the drug formulary committee, as necessary, 50.10 appropriate, and cost-effective for the treatment of certain 50.11 specified chronic diseases, conditions or disorders, and this 50.12 determination shall not be subject to the requirements of 50.13 chapter 14; 50.14 (iii) anorectics, except that medically necessary 50.15 anorectics shall be covered for a recipient previously diagnosed 50.16 as having pickwickian syndrome and currently diagnosed as having 50.17 diabetes and being morbidly obese; 50.18 (iv) drugs for which medical value has not been 50.19 established; and 50.20 (v) drugs from manufacturers who have not signed a rebate 50.21 agreement with the Department of Health and Human Services 50.22 pursuant to section 1927 of title XIX of the Social Security Act. 50.23 The commissioner shall publish conditions for prohibiting 50.24 payment for specific drugs after considering the formulary 50.25 committee's recommendations. An honorarium of $100 per meeting 50.26 and reimbursement for mileage shall be paid to each committee 50.27 member in attendance. 50.28 (c) The basis for determining the amount of payment shall 50.29 be the lower of the actual acquisition costs of the drugs plus a 50.30 fixed dispensing fee; the maximum allowable cost set by the 50.31 federal government or by the commissioner plus the fixed 50.32 dispensing fee; or the usual and customary price charged to the 50.33 public. The pharmacy dispensing fee shall be$3.65$4.15, 50.34 except that the dispensing fee for intravenous solutions which 50.35 must be compounded by the pharmacist shall be $8 per bag, $14 50.36 per bag for cancer chemotherapy products, and $30 per bag for 51.1 total parenteral nutritional products dispensed in one liter 51.2 quantities, or $44 per bag for total parenteral nutritional 51.3 products dispensed in quantities greater than one liter. Actual 51.4 acquisition cost includes quantity and other special discounts 51.5 except time and cash discounts. The actual acquisition cost of 51.6 a drug shall be estimated by the commissioner, at average 51.7 wholesale price minusnine14 percent, except that where a drug 51.8 has had its wholesale price reduced as a result of the actions 51.9 of the National Association of Medicaid Fraud Control Units, the 51.10 estimated actual acquisition cost shall be the reduced average 51.11 wholesale price, without thenine14 percent deduction. The 51.12 maximum allowable cost of a multisource drug may be set by the 51.13 commissioner and it shall be comparable to, but no higher than, 51.14 the maximum amount paid by other third-party payors in this 51.15 state who have maximum allowable cost programs.The51.16commissioner shall set maximum allowable costs for multisource51.17drugs that are not on the federal upper limit list as described51.18in United States Code, title 42, chapter 7, section 1396r-8(e),51.19the Social Security Act, and Code of Federal Regulations, title51.2042, part 447, section 447.332. Establishment of the amount of51.21payment for drugs shall not be subject to the requirements of51.22the Administrative Procedure Act.An additional dispensing fee 51.23 of $.30 may be added to the dispensing fee paid to pharmacists 51.24 for legend drug prescriptions dispensed to residents of 51.25 long-term care facilities when a unit dose blister card system, 51.26 approved by the department, is used. Under this type of 51.27 dispensing system, the pharmacist must dispense a 30-day supply 51.28 of drug. The National Drug Code (NDC) from the drug container 51.29 used to fill the blister card must be identified on the claim to 51.30 the department. The unit dose blister card containing the drug 51.31 must meet the packaging standards set forth in Minnesota Rules, 51.32 part 6800.2700, that govern the return of unused drugs to the 51.33 pharmacy for reuse. The pharmacy provider will be required to 51.34 credit the department for the actual acquisition cost of all 51.35 unused drugs that are eligible for reuse. Over-the-counter 51.36 medications must be dispensed in the manufacturer's unopened 52.1 package. The commissioner may permit the drug clozapine to be 52.2 dispensed in a quantity that is less than a 30-day supply. 52.3 Whenever a generically equivalent product is available, payment 52.4 shall be on the basis of the actual acquisition cost of the 52.5 generic drug, unless the prescriber specifically indicates 52.6 "dispense as written - brand necessary" on the prescription as 52.7 required by section 151.21, subdivision 2. 52.8 (d)For purposes of this subdivision, "multisource drugs"52.9means covered outpatient drugs, excluding innovator multisource52.10drugs for which there are two or more drug products, which:52.11(1) are related as therapeutically equivalent under the52.12Food and Drug Administration's most recent publication of52.13"Approved Drug Products with Therapeutic Equivalence52.14Evaluations";52.15(2) are pharmaceutically equivalent and bioequivalent as52.16determined by the Food and Drug Administration; and52.17(3) are sold or marketed in Minnesota.52.18"Innovator multisource drug" means a multisource drug that was52.19originally marketed under an original new drug application52.20approved by the Food and Drug AdministrationEffective for 52.21 prescriptions dispensed on or after July 1, 2002, the 52.22 commissioner, may within the limits of available appropriation, 52.23 increase the dispensing fee described in paragraph (c) to 52.24 pharmacies deemed by the commissioner to be a critical-access 52.25 pharmacy. In determining whether a pharmacy shall be deemed a 52.26 critical-access pharmacy, the commissioner shall consider the 52.27 following criteria: 52.28 (1) for pharmacies located outside the seven-county 52.29 metropolitan area: 52.30 (i) the total annual sum of the pharmacy's fee-for-service 52.31 medical assistance payments for the previous year in all 52.32 locations, excluding payments for prescriptions dispensed to 52.33 residents residing in nursing homes. The pharmacy's total 52.34 annual sum must be no greater than $300,000; and 52.35 (ii) the proximity of the pharmacy to other medical 52.36 assistance pharmacy providers in a specified geographic area; 53.1 and 53.2 (2) for pharmacies located within the seven-county 53.3 metropolitan area: 53.4 (i) the percentage of the pharmacy's annual fee-for-service 53.5 medical assistance payments in that location, excluding payments 53.6 for prescriptions dispensed to residents in nursing homes 53.7 compared to the pharmacy's total annual prescription drug 53.8 sales. The pharmacy's percentage must be greater than the 53.9 average percentage for pharmacies enrolled as a medical 53.10 assistance provider; and 53.11 (ii) the proximity of the pharmacy to other medical 53.12 assistance pharmacy providers in a specified geographic area. 53.13 The commissioner may establish regions within the state for 53.14 purposes of applying this criteria and may assign different 53.15 weights to the criteria depending on the region. 53.16 (e) The formulary committee shall review and recommend 53.17 drugs which require prior authorization. The formulary 53.18 committee may recommend drugs for prior authorization directly 53.19 to the commissioner, as long as opportunity for public input is 53.20 provided. Prior authorization may be requested by the 53.21 commissioner based on medical and clinical criteria and on cost 53.22 before certain drugs are eligible for payment. Before a drug 53.23 may be considered for prior authorization at the request of the 53.24 commissioner: 53.25 (1) the drug formulary committee must develop criteria to 53.26 be used for identifying drugs; the development of these criteria 53.27 is not subject to the requirements of chapter 14, but the 53.28 formulary committee shall provide opportunity for public input 53.29 in developing criteria; 53.30 (2) the drug formulary committee must hold a public forum 53.31 and receive public comment for an additional 15 days;and53.32 (3) the drug formulary committee must consider data from 53.33 the state Medicaid program if such data is available; and 53.34 (4) the commissioner must provide information to the 53.35 formulary committee on the impact that placing the drug on prior 53.36 authorization will have on the quality of patient care and on 54.1 program costs, and information regarding whether the drug is 54.2 subject to clinical abuse or misuse. 54.3 Prior authorization may be required by the commissioner 54.4 before certain formulary drugs are eligible for payment. If 54.5 prior authorization of a drug is required by the commissioner, 54.6 the commissioner must provide a 30-day notice period before 54.7 implementing the prior authorization. If a prior authorization 54.8 request is denied by the department, the recipient may appeal 54.9 the denial in accordance with section 256.045. If an appeal is 54.10 filed, the drug must be provided without prior authorization 54.11 until a decision is made on the appeal. 54.12 (f) The basis for determining the amount of payment for 54.13 drugs administered in an outpatient setting shall be the lower 54.14 of the usual and customary cost submitted by the provider; the 54.15 average wholesale price minus five percent; or the maximum 54.16 allowable cost set by the federal government under United States 54.17 Code, title 42, chapter 7, section 1396r-8(e), and Code of 54.18 Federal Regulations, title 42, section 447.332, or by the 54.19 commissioner under paragraph (c). 54.20 (g) Prior authorization shall not be required or utilized 54.21 for any antipsychotic drug prescribed for the treatment of 54.22 mental illness where there is no generically equivalent drug 54.23 available unless the commissioner determines that prior 54.24 authorization is necessary for patient safety. This paragraph 54.25 applies to any supplemental drug rebate program established or 54.26 administered by the commissioner. 54.27 Sec. 7. Minnesota Statutes 2000, section 256B.19, 54.28 subdivision 1, as amended by Laws 2002, chapter 220, article 14, 54.29 section 7, is amended to read: 54.30 Subdivision 1. [DIVISION OF COST.] The state and county 54.31 share of medical assistance costs not paid by federal funds 54.32 shall be as follows: 54.33 (1)ninety90 percent state funds and ten percent county 54.34 funds, unless otherwise provided below; 54.35 (2) beginning January 1, 1992, 50 percent state funds and 54.36 50 percent county funds for the cost of placement of severely 55.1 emotionally disturbed children in regional treatment centers; 55.2 and 55.3 (3) beginning January 1, 2003, 80 percent state funds and 55.4 20 percent county funds for the costs of nursing facility 55.5 placements of persons with disabilities under the age of 65 that 55.6 have exceeded 90 days. This clause shall be subject to chapter 55.7 256G and shall not apply to placements in facilities not 55.8 certified to participate in medical assistance. 55.9 For counties that participate in a Medicaid demonstration 55.10 project under sections 256B.69 and 256B.71, the division of the 55.11 nonfederal share of medical assistance expenses for payments 55.12 made to prepaid health plans or for payments made to health 55.13 maintenance organizations in the form of prepaid capitation 55.14 payments, this division of medical assistance expenses shall be 55.15 95 percent by the state and five percent by the county of 55.16 financial responsibility. 55.17 In counties where prepaid health plans are under contract 55.18 to the commissioner to provide services to medical assistance 55.19 recipients, the cost of court ordered treatment ordered without 55.20 consulting the prepaid health plan that does not include 55.21 diagnostic evaluation, recommendation, and referral for 55.22 treatment by the prepaid health plan is the responsibility of 55.23 the county of financial responsibility. 55.24 Sec. 8. Minnesota Statutes 2000, section 256B.69, 55.25 subdivision 5a, as amended by Laws 2002, chapter 220, article 55.26 15, section 15, is amended to read: 55.27 Subd. 5a. [MANAGED CARE CONTRACTS.] (a) Managed care 55.28 contracts under this section and sections 256L.12 and 256D.03, 55.29 shall be entered into or renewed on a calendar year basis 55.30 beginning January 1, 1996. Managed care contracts which were in 55.31 effect on June 30, 1995, and set to renew on July 1, 1995, shall 55.32 be renewed for the period July 1, 1995 through December 31, 1995 55.33 at the same terms that were in effect on June 30, 1995. 55.34 (b) A prepaid health plan providing covered health services 55.35 for eligible persons pursuant to chapters 256B, 256D, and 256L, 55.36 is responsible for complying with the terms of its contract with 56.1 the commissioner. Requirements applicable to managed care 56.2 programs under chapters 256B, 256D, and 256L, established after 56.3 the effective date of a contract with the commissioner take 56.4 effect when the contract is next issued or renewed. 56.5 (c) Effective for services rendered on or after January 1, 56.6 2003, the commissioner shall withhold five percent of managed 56.7 care plan payments under this section for the prepaid medical 56.8 assistance and general assistance medical care programs pending 56.9 completion of performance targets. The withheld fundswillmust 56.10 be returned no sooner than July of the following year if 56.11 performance targets in the contract are achieved. The 56.12 commissioner may exclude special demonstration projects under 56.13 subdivision 23. A managed care plan may include as admitted 56.14 assets under section 62D.044 any amount withheld under this 56.15 paragraph that is reasonably expected to be returned. 56.16 Sec. 9. Minnesota Statutes 2000, section 256E.06, 56.17 subdivision 3, is amended to read: 56.18 Subd. 3. [PAYMENTS TO COUNTIES.] The commissioner of human 56.19 services shall make payments for community social services to 56.20 each countyin four installments peron or before July 10 of 56.21 each year.The commissioner of human services may certify the56.22payments for the first three months of a calendar year based on56.23estimates of the unduplicated number of persons receiving56.24Minnesota family investment program assistance, general56.25assistance, and medical assistance for the prior year. The56.26following three payments shall be adjusted to reflect the actual56.27unduplicated number of persons who received Minnesota family56.28investment program assistance, general assistance, and medical56.29assistance as required by subdivision 1. The commissioner shall56.30ensure that the pertinent payment of the allotment for that56.31quarter is made to each county on the first working day after56.32the end of each quarter of the calendar year, except for the56.33last quarter of the calendar year. The commissioner shall56.34ensure that each county receives its payment of the allotment56.35for that quarter no later than the last working day of that56.36quarter. This scheduling of payments does not require57.1compliance with subdivision 10.57.2 Sec. 10. Minnesota Statutes 2000, section 256I.04, 57.3 subdivision 2a, is amended to read: 57.4 Subd. 2a. [LICENSE REQUIRED.] A county agency may not 57.5 enter into an agreement with an establishment to provide group 57.6 residential housing unless: 57.7 (1) the establishment is licensed by the department of 57.8 health as a hotel and restaurant; a board and lodging 57.9 establishment; a residential care home; a boarding care home 57.10 before March 1, 1985; or a supervised living facility, and the 57.11 service provider for residents of the facility is licensed under 57.12 chapter 245A. However, an establishment licensed by the 57.13 department of health to provide lodging need not also be 57.14 licensed to provide board if meals are being supplied to 57.15 residents under a contract with a food vendor who is licensed by 57.16 the department of health; 57.17 (2) the residence is licensed by the commissioner of human 57.18 services under Minnesota Rules, parts 9555.5050 to 9555.6265, or 57.19 certified by a county human services agency prior to July 1, 57.20 1992, using the standards under Minnesota Rules, parts 9555.5050 57.21 to 9555.6265; or 57.22 (3) the establishment is registered under chapter 144D and 57.23 provides three meals a day, except that an establishment 57.24 registered under section 144D.025 is not eligible for an 57.25 agreement to provide group residential housing. 57.26 The requirements under clauses (1), (2), and (3) do not 57.27 apply to establishments exempt from state licensure because they 57.28 are located on Indian reservations and subject to tribal health 57.29 and safety requirements. 57.30 Sec. 11. Minnesota Statutes 2000, section 256L.12, 57.31 subdivision 9, as amended by Laws 2002, chapter 220, article 15, 57.32 section 23, is amended to read: 57.33 Subd. 9. [RATE SETTING.] (a) Rates will be prospective, 57.34 per capita, where possible. The commissioner may allow health 57.35 plans to arrange for inpatient hospital services on a risk or 57.36 nonrisk basis. The commissioner shall consult with an 58.1 independent actuary to determine appropriate rates. 58.2 (b) For services rendered on or after January 1, 2003, the 58.3 commissioner shall withhold .5 percent of managed care plan 58.4 payments under this section pending completion of performance 58.5 targets. The withheld fundswillmust be returned no sooner 58.6 than July 1 and no later than July 31 of the following year if 58.7 performance targets in the contract are achieved. A managed 58.8 care plan may include as admitted assets under section 62D.044 58.9 any amount withheld under this paragraph that is reasonably 58.10 expected to be returned. 58.11 Sec. 12. Laws 2002, chapter 220, article 17, section 2, 58.12 subdivision 6, is amended to read: 58.13 Subd. 6. Continuing Care 58.14 Grants 58.15 General (8,907,000) (26,227,000) 58.16 The amounts that may be spent from this 58.17 appropriation for each purpose are as 58.18 follows: 58.19 (a) Aging Adult Service 58.20 Grants 58.21 General -0- (2,638,000) 58.22 [PLANNING AND SERVICE DEVELOPMENT.] The 58.23 planning and service development grant 58.24 from Laws 2001, First Special Session 58.25 chapter 9, article 17, section 2, 58.26 subdivision 9, is eliminated for fiscal 58.27 year 2003. Base funding for the 58.28 2004-2005 biennium shall be $550,000 58.29 each year. Notwithstanding Laws 2001, 58.30 First Special Session chapter 9, 58.31 article 17, section 2, subdivision 9, 58.32 beginning in fiscal year 2004, the 58.33 commissioner shall annually distribute 58.34 $5,000 to each county. Counties with 58.35 more than 10,000 persons over age 65 58.36 shall receive a distribution of an 58.37 additional 25 cents for each person 58.38 over age 65. The amount distributed to 58.39 each area agency on aging shall be 58.40 $2,500. 58.41 [COMMUNITY SERVICES DEVELOPMENT 58.42 GRANTS.] For fiscal year 2003, base 58.43 level funding for community services 58.44 development grants under Minnesota 58.45 Statutes, section 256.9754, is reduced 58.46 by $1,478,000. For fiscal year 2004, 58.47 base level funding for these grants is 58.48 reduced by $768,000. For fiscal year 58.49 2005, base level funding shall be 58.50 $3,000,000, and this amount shall be 58.51 the base funding level for these grants 58.52 for the biennium beginning July 1, 58.53 2005. Notwithstanding section 5, this 59.1 provision shall not expire. 59.2 (b) Medical Assistance 59.3 Long-Term Care Waivers and 59.4 Home Care Grants 59.5 General 18,471,000 12,833,000 59.6 (c) Medical Assistance 59.7 Long-Term Care Facilities 59.8 Grants 59.9 General (27,382,000) (31,922,000) 59.10 (d) Group Residential 59.11 Housing Grants 59.12 General 4,000 574,000 59.13[FEDERAL FUNDING FOR GROUP RESIDENTIAL59.14HOUSING COSTS.] The commissioner shall59.15seek federal funding to offset costs59.16for group residential housing services59.17under Minnesota Statutes, chapter 256I.59.18Any federal funding received shall be59.19distributed to counties on a pro rata59.20basis according to county spending59.21under Minnesota Statutes, section59.22256B.19, subdivision 1, clause (3), for59.23the costs of nursing facility59.24placements of persons with disabilities59.25under the age of 65 that have exceeded59.2690 days. The commissioner shall report59.27to the legislature by January 15, 2003,59.28on the status of additional federal59.29funding for group residential housing59.30costs.59.31 (e) Chemical Dependency 59.32 Entitlement Grants 59.33 General -0- (84,000) 59.34 [CONSOLIDATED CHEMICAL DEPENDENCY 59.35 TREATMENT FUND RESERVE TRANSFER.] In 59.36 fiscal year 2003, $8,544,000 of funds 59.37 available in the consolidated chemical 59.38 dependency treatment fund general 59.39 reserve account is transferred to the 59.40 general fund. 59.41 (f) Community Social Services 59.42 Block Grants 59.43 General -0- (4,990,000) 59.44 [CSSA TRADITIONAL APPROPRIATION 59.45 REDUCTION.] For fiscal year 2003, base 59.46 level funding for community social 59.47 service aids under Minnesota Statutes, 59.48 section 256E.06, subdivisions 1 and 2, 59.49 is reduced by $4,700,000. This 59.50 reduction shall become part of base 59.51 level funding for the biennium 59.52 beginning July 1, 2003. 59.53 Notwithstanding section 5, this 59.54 provision shall not expire. 59.55 [CSSA GRANTS FOR FORMER GRH 59.56 RECIPIENTS.] For fiscal year 2003, base 59.57 level funding for community social 60.1 service aids under Minnesota Statutes, 60.2 section 256E.06, subdivision 2b, is 60.3 reduced by $290,000. This reduction 60.4 shall become part of base level funding 60.5 for the biennium beginning July 1, 60.6 2003. These reductions shall be made 60.7 on a pro rata basis to each affected 60.8 county. Notwithstanding section 5, 60.9 this provision shall not expire. 60.10 Sec. 13. [ACCESS TO AFFORDABLE HOUSING.] 60.11 The commissioners of human services and the Minnesota 60.12 housing finance agency shall make recommendations to the 60.13 long-term care task force by January 15, 2003, on ways to 60.14 increase the ability of persons with disabilities to access 60.15 affordable housing. The recommendations shall include: 60.16 (1) income supplement or housing subsidy options that 60.17 support efforts to relocate persons under the age of 65 from 60.18 nursing facilities or to divert them from a nursing facility 60.19 placement; 60.20 (2) an analysis of the impacts of the state using a fixed 60.21 amount attributable to room and board costs for home and 60.22 community-based waiver recipients in group residential settings; 60.23 (3) options to maximize federal funding that result in no 60.24 additional costs to the state. These options may include the 60.25 transfer of state funds between income maintenance programs and 60.26 the Medicaid program. These options may be implemented prior to 60.27 the report to the task force. Any additional funds made 60.28 available through implementation of these options and not 60.29 utilized to support persons relocating from nursing facilities 60.30 shall be used to reduce the county share enacted in Laws 2002, 60.31 chapter 220, article 14, section 8; and 60.32 (4) alternatives that provide additional incentives to 60.33 county agencies that successfully discharge persons with 60.34 disabilities under the age of 65 from nursing facilities. 60.35 Sec. 14. [PRIOR AUTHORIZATION REPORT.] 60.36 The commissioner of human services shall review prior 60.37 authorization of prescription drugs in the fee-for-service 60.38 medical assistance program in terms of the cost effectiveness 60.39 achieved through prior authorization on prescription drug costs 60.40 and on other medical assistance costs and evaluate the effect 61.1 that placing a drug on prior authorization has had on the 61.2 quality of patient care. The commissioner shall submit the 61.3 results to the chairs and ranking minority members of the senate 61.4 and house of representatives committees having jurisdiction over 61.5 human services funding by January 15, 2004.