1.1                          A bill for an act 
  1.2             relating to human services; making changes affecting 
  1.3             counties, human services policy, child care, 
  1.4             assistance programs, adoption and child placement, 
  1.5             child welfare, economic support, mental health, and 
  1.6             continuing care for the elderly; amending Minnesota 
  1.7             Statutes 2002, sections 62T.02, by adding a 
  1.8             subdivision; 119B.02, subdivision 4; 119B.03, 
  1.9             subdivision 6; 119B.09, subdivision 4; 119B.21, 
  1.10            subdivision 5; 144A.071, subdivision 1a; 245.462, 
  1.11            subdivision 18; 245.464, by adding a subdivision; 
  1.12            256.01, by adding a subdivision; 256B.02, subdivision 
  1.13            12; 256B.056, by adding subdivisions; 256B.431, 
  1.14            subdivision 37; 256D.02, subdivision 17; 256D.06, 
  1.15            subdivision 5; 256J.67, subdivisions 1, 3; 256L.04, 
  1.16            subdivision 2; 257.85, subdivisions 2, 3; 259.23, 
  1.17            subdivisions 1, 2; 259.41, subdivision 3; 259.79, 
  1.18            subdivision 1; 260C.001, subdivision 3; 260C.007, 
  1.19            subdivisions 7, 8, 18, 22, 27; 260C.151, subdivision 
  1.20            6; 260C.178; 260C.201, subdivisions 1, 2, 6, 10, 11; 
  1.21            260C.212, subdivision 5; 260C.312; 260C.317, 
  1.22            subdivision 3; 549.02, by adding a subdivision; 
  1.23            549.04; 626.556, subdivisions 1, 10f, 11c, by adding 
  1.24            subdivisions; Minnesota Statutes 2003 Supplement, 
  1.25            sections 119B.011, subdivisions 6, 15; 119B.025, 
  1.26            subdivision 1; 119B.09, subdivision 7; 119B.125, 
  1.27            subdivisions 1, 2; 245.4874; 245B.03, subdivision 2; 
  1.28            256.01, subdivision 2; 256B.0622, subdivision 8; 
  1.29            256B.431, subdivision 38; 256J.40; 256J.425, 
  1.30            subdivision 7; 256J.46, subdivision 1; 256J.521, 
  1.31            subdivision 2; 256J.626, subdivisions 6, 7; 256J.95, 
  1.32            subdivisions 10, 12; 260.012; 626.556, subdivisions 2, 
  1.33            3, 10, 10b, 10e, 10i, 11; proposing coding for new law 
  1.34            in Minnesota Statutes, chapter 119B; repealing 
  1.35            Minnesota Statutes 2002, section 626.5551, 
  1.36            subdivisions 1, 2, 3, 4, 5; Laws 2001, First Special 
  1.37            Session chapter 9, article 9, section 52; Laws 2003, 
  1.38            First Special Session chapter 14, article 3, section 
  1.39            56; Minnesota Rules, part 9560.0220, subpart 6, item B.
  1.40  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.41                             ARTICLE 1 
  1.42                  CHILD CARE; ASSISTANCE PROGRAMS 
  2.1      Section 1.  Minnesota Statutes 2003 Supplement, section 
  2.2   119B.011, subdivision 6, is amended to read: 
  2.3      Subd. 6.  [CHILD CARE FUND.] "Child care fund" means a 
  2.4   program under this chapter providing:  
  2.5      (1) financial assistance for child care to parents engaged 
  2.6   in employment, job search, or education and training leading to 
  2.7   employment, or an at-home infant child care subsidy; and 
  2.8      (2) grants to develop, expand, and improve the access and 
  2.9   availability of child care services statewide. 
  2.10     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  2.11     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.12  119B.011, subdivision 15, is amended to read: 
  2.13     Subd. 15.  [INCOME.] "Income" means earned or unearned 
  2.14  income received by all family members, including public 
  2.15  assistance cash benefits and at-home infant child care subsidy 
  2.16  payments, unless specifically excluded and child support and 
  2.17  maintenance distributed to the family under section 256.741, 
  2.18  subdivision 15.  The following are excluded from income:  funds 
  2.19  used to pay for health insurance premiums for family members, 
  2.20  Supplemental Security Income, scholarships, work-study income, 
  2.21  and grants that cover costs or reimbursement for tuition, fees, 
  2.22  books, and educational supplies; student loans for tuition, 
  2.23  fees, books, supplies, and living expenses; state and federal 
  2.24  earned income tax credits; assistance specifically excluded as 
  2.25  income by law; in-kind income such as food support, energy 
  2.26  assistance, foster care assistance, medical assistance, child 
  2.27  care assistance, and housing subsidies; earned income of 
  2.28  full-time or part-time students up to the age of 19, who have 
  2.29  not earned a high school diploma or GED high school equivalency 
  2.30  diploma including earnings from summer employment; grant awards 
  2.31  under the family subsidy program; nonrecurring lump sum income 
  2.32  only to the extent that it is earmarked and used for the purpose 
  2.33  for which it is paid; and any income assigned to the public 
  2.34  authority according to section 256.741. 
  2.35     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  2.36     Sec. 3.  Minnesota Statutes 2002, section 119B.02, 
  3.1   subdivision 4, is amended to read: 
  3.2      Subd. 4.  [UNIVERSAL APPLICATION FORM.] The commissioner 
  3.3   must develop and make available to all counties a universal 
  3.4   application form for child care assistance under this 
  3.5   chapter.  The commissioner may develop and make available to all 
  3.6   counties a child care addendum form to be used to supplement the 
  3.7   combined application form for MFIP, DWP, or Food Support or to 
  3.8   supplement other statewide application forms for public 
  3.9   assistance programs for families applying for one of these 
  3.10  programs in addition to child care assistance.  The application 
  3.11  must provide notice of eligibility requirements for assistance 
  3.12  and penalties for wrongfully obtaining assistance. 
  3.13     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  3.14  119B.025, subdivision 1, is amended to read: 
  3.15     Subdivision 1.  [FACTORS WHICH MUST BE VERIFIED.] (a) The 
  3.16  county shall verify the following at all initial child care 
  3.17  applications using the universal application: 
  3.18     (1) identity of adults; 
  3.19     (2) presence of the minor child in the home, if 
  3.20  questionable; 
  3.21     (3) relationship of minor child to the parent, stepparent, 
  3.22  legal guardian, eligible relative caretaker, or the spouses of 
  3.23  any of the foregoing; 
  3.24     (4) age; 
  3.25     (5) immigration status, if related to eligibility; 
  3.26     (6) Social Security number, if given; 
  3.27     (7) income; 
  3.28     (8) spousal support and child support payments made to 
  3.29  persons outside the household; 
  3.30     (9) residence; and 
  3.31     (10) inconsistent information, if related to eligibility. 
  3.32     (b) If a family did not use the universal application or 
  3.33  child care addendum to apply for child care assistance, the 
  3.34  family must complete the universal application or child care 
  3.35  addendum at its next eligibility redetermination and the county 
  3.36  must verify the factors listed in paragraph (a) as part of that 
  4.1   redetermination.  Once a family has completed a universal 
  4.2   application or child care addendum, the county shall use the 
  4.3   redetermination form described in paragraph (c) for that 
  4.4   family's subsequent redeterminations.  Eligibility must be 
  4.5   redetermined at least every six months.  If a family reports a 
  4.6   change in an eligibility factor before the family's next 
  4.7   regularly scheduled redetermination, the county must recalculate 
  4.8   eligibility without requiring verification of any eligibility 
  4.9   factor that did not change.  
  4.10     (c) The commissioner shall develop a recertification 
  4.11  redetermination form to redetermine eligibility and a change 
  4.12  report form to report changes that minimizes minimize paperwork 
  4.13  for the county and the participant. 
  4.14     Sec. 5.  Minnesota Statutes 2002, section 119B.03, 
  4.15  subdivision 6, is amended to read: 
  4.16     Subd. 6.  [ALLOCATION FORMULA.] The basic sliding fee state 
  4.17  and federal funds shall be allocated on a calendar year basis.  
  4.18  Funds shall be allocated first in amounts equal to each county's 
  4.19  guaranteed floor according to subdivision 8, with any remaining 
  4.20  available funds allocated according to the following formula:  
  4.21     (a) One-fourth of the funds shall be allocated in 
  4.22  proportion to each county's total expenditures for the basic 
  4.23  sliding fee child care program reported during the most recent 
  4.24  fiscal year completed at the time of the notice of allocation.  
  4.25     (b) One-fourth of the funds shall be allocated based on the 
  4.26  number of families participating in the transition year child 
  4.27  care program as reported during the most recent quarter 
  4.28  completed at the time of the notice of allocation. 
  4.29     (c) One-fourth of the funds shall be allocated in 
  4.30  proportion to each county's most recently reported first, 
  4.31  second, and third priority waiting list as defined in 
  4.32  subdivision 2 and the reinstatement list of those families whose 
  4.33  assistance was terminated with the approval of the commissioner 
  4.34  under Minnesota Rules, part 3400.0183, subpart 1. 
  4.35     (d) One-fourth of the funds must be allocated in proportion 
  4.36  to each county's most recently reported waiting list as defined 
  5.1   in subdivision 2 and the reinstatement list of those families 
  5.2   whose assistance was terminated with the approval of the 
  5.3   commissioner under Minnesota Rules, part 3400.0183, subpart 1. 
  5.4      Sec. 6.  [119B.035] [AT-HOME INFANT CHILD CARE PROGRAM.] 
  5.5      Subdivision 1.  [ESTABLISHMENT.] A family in which a parent 
  5.6   provides care for the family's infant child may receive a 
  5.7   subsidy in lieu of assistance if the family is eligible for, or 
  5.8   is receiving assistance under the basic sliding fee program.  An 
  5.9   eligible family must meet the eligibility factors under section 
  5.10  119B.09, except as provided in subdivision 4, the income 
  5.11  criteria under section 119B.12, and the requirements of this 
  5.12  section.  Subject to federal match and maintenance of effort 
  5.13  requirements for the child care and development fund, the 
  5.14  commissioner shall establish a pool of up to seven percent of 
  5.15  the annual appropriation for the basic sliding fee program to 
  5.16  provide assistance under the at-home infant child care program.  
  5.17  At the end of a fiscal year, the commissioner may carry forward 
  5.18  any unspent funds under this section to the next fiscal year 
  5.19  within the same biennium for assistance under the basic sliding 
  5.20  fee program. 
  5.21     Subd. 2.  [ELIGIBLE FAMILIES.] A family with an infant 
  5.22  under the age of one year is eligible for assistance if: 
  5.23     (1) the family is not receiving MFIP, other cash 
  5.24  assistance, or other child care assistance; 
  5.25     (2) the family has not previously received a life-long 
  5.26  total of 12 months of assistance under this section; and 
  5.27     (3) the family is participating in the basic sliding fee 
  5.28  program or provides verification of participating in an 
  5.29  authorized activity at the time of application and meets the 
  5.30  program requirements. 
  5.31     Subd. 3.  [ELIGIBLE PARENT.] A family is eligible for 
  5.32  assistance under this section if one parent cares for the 
  5.33  family's infant child.  The eligible parent must: 
  5.34     (1) be over the age of 18; 
  5.35     (2) care for the infant full time in the infant's home; and 
  5.36     (3) care for any other children in the family who are 
  6.1   eligible for child care assistance under this chapter. 
  6.2      For purposes of this section, "parent" means birth parent, 
  6.3   adoptive parent, or stepparent. 
  6.4      Subd. 4.  [ASSISTANCE.] (a) A family is limited to a 
  6.5   lifetime total of 12 months of assistance under subdivision 2.  
  6.6   The maximum rate of assistance is equal to 90 percent of the 
  6.7   rate established under section 119B.13 for care of infants in 
  6.8   licensed family child care in the applicant's county of 
  6.9   residence.  For purposes of this section, the annual income of 
  6.10  the applicant family must be based on an annualization of the 
  6.11  income received only during the period in which the family is 
  6.12  participating in the at-home infant child care program. 
  6.13     (b) A participating family must report income and other 
  6.14  family changes as specified in the county's plan under section 
  6.15  119B.08, subdivision 3. 
  6.16     (c) Persons who are admitted to the at-home infant child 
  6.17  care program retain their position in any basic sliding fee 
  6.18  program or on any waiting list attained at the time of 
  6.19  admittance.  If they are on the waiting list, they must advance 
  6.20  as if they had not been admitted to the program.  Persons 
  6.21  leaving the at-home infant child care program re-enter the basic 
  6.22  sliding fee program at the position they would have occupied or 
  6.23  the waiting list at the position to which they would have 
  6.24  advanced.  Persons who would have attained eligibility for the 
  6.25  basic sliding fee program must be given assistance or advance to 
  6.26  the top of the waiting list when they leave the at-home infant 
  6.27  child care program.  Persons admitted to the at-home infant 
  6.28  child care program who are not on a basic sliding fee waiting 
  6.29  list may apply to the basic sliding fee program, and if 
  6.30  eligible, be placed on the waiting list. 
  6.31     (d) Assistance under this section does not establish an 
  6.32  employer-employee relationship between any member of the 
  6.33  assisted family and the county or state. 
  6.34     Subd. 5.  [IMPLEMENTATION.] The commissioner shall 
  6.35  implement the at-home infant child care program under this 
  6.36  section through counties that administer the basic sliding fee 
  7.1   program under section 119B.03.  The commissioner must develop 
  7.2   and distribute consumer information on the at-home infant child 
  7.3   care program to assist parents of infants or expectant parents 
  7.4   in making informed child care decisions. 
  7.5      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  7.6      Sec. 7.  Minnesota Statutes 2002, section 119B.09, 
  7.7   subdivision 4, is amended to read: 
  7.8      Subd. 4.  [ELIGIBILITY; ANNUAL INCOME; CALCULATION.] Annual 
  7.9   income of the applicant family is the current monthly income of 
  7.10  the family multiplied by 12 or the income for the 12-month 
  7.11  period immediately preceding the date of application, or income 
  7.12  calculated by the method which provides the most accurate 
  7.13  assessment of income available to the family.  Self-employment 
  7.14  income must be calculated based on gross receipts less operating 
  7.15  expenses.  Income must be redetermined recalculated when the 
  7.16  family's income changes, but no less often than every six 
  7.17  months.  Income must be verified with documentary evidence.  If 
  7.18  the applicant does not have sufficient evidence of income, 
  7.19  verification must be obtained from the source of the income. 
  7.20     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
  7.21  119B.09, subdivision 7, is amended to read: 
  7.22     Subd. 7.  [DATE OF ELIGIBILITY FOR ASSISTANCE.] (a) The 
  7.23  date of eligibility for child care assistance under this chapter 
  7.24  is the later of the date the application was signed; the 
  7.25  beginning date of employment, education, or training; or the 
  7.26  date a determination has been made that the applicant is a 
  7.27  participant in employment and training services under Minnesota 
  7.28  Rules, part 3400.0080, subpart 2a, or chapter 256J or 256K.  The 
  7.29  date of eligibility for the basic sliding fee at-home infant 
  7.30  child care program is the later of the date the infant is born, 
  7.31  or in a county with a basic sliding fee waiting list, the date 
  7.32  the family applies for at-home infant child care. 
  7.33     (b) Payment ceases for a family under the at-home infant 
  7.34  child care program when a family has used a total of 12 months 
  7.35  of assistance as specified under section 119B.035.  Payment of 
  7.36  child care assistance for employed persons on MFIP is effective 
  8.1   the date of employment or the date of MFIP eligibility, 
  8.2   whichever is later.  Payment of child care assistance for MFIP 
  8.3   or work first participants in employment and training services 
  8.4   is effective the date of commencement of the services or the 
  8.5   date of MFIP or work first eligibility, whichever is later.  
  8.6   Payment of child care assistance for transition year child care 
  8.7   must be made retroactive to the date of eligibility for 
  8.8   transition year child care. 
  8.9      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2004. 
  8.10     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
  8.11  119B.125, subdivision 1, is amended to read: 
  8.12     Subdivision 1.  [AUTHORIZATION.] Except as provided in 
  8.13  subdivision 5, a county must authorize the provider chosen by an 
  8.14  applicant or a participant before the county can authorize 
  8.15  payment for care provided by that provider.  The commissioner 
  8.16  must establish the requirements necessary for authorization of 
  8.17  providers.  A provider must be reauthorized every two years.  A 
  8.18  legal, nonlicensed family child care provider also must be 
  8.19  reauthorized when another person over the age of 13 joins the 
  8.20  household, a current household member turns 13, or there is 
  8.21  reason to believe that a household member has a factor that 
  8.22  prevents authorization.  The provider is required to report all 
  8.23  family changes that would require reauthorization.  When a 
  8.24  provider has been authorized for payment for providing care for 
  8.25  families in more than one county, the county responsible for 
  8.26  reauthorization of that provider is the county of the family 
  8.27  with a current authorization for that provider and who has used 
  8.28  the provider for the longest length of time. 
  8.29     Sec. 10.  Minnesota Statutes 2003 Supplement, section 
  8.30  119B.125, subdivision 2, is amended to read: 
  8.31     Subd. 2.  [PERSONS WHO CANNOT BE AUTHORIZED.] (a) A person 
  8.32  who meets any of the conditions under paragraphs (b) to (n) must 
  8.33  not be authorized as a legal nonlicensed family child care 
  8.34  provider.  To determine whether any of the listed conditions 
  8.35  exist, the county must request information about the provider 
  8.36  from the Bureau of Criminal Apprehension, the juvenile courts, 
  9.1   and social service agencies.  When one of the listed entities 
  9.2   does not maintain information on a statewide basis, the county 
  9.3   must contact the entity in the county where the provider resides 
  9.4   and any other county in which the provider previously resided in 
  9.5   the past year.  For purposes of this subdivision, a finding that 
  9.6   a delinquency petition is proven in juvenile court must be 
  9.7   considered a conviction in state district court.  If a county 
  9.8   has determined that a provider is able to be authorized in that 
  9.9   county, and a family in another county later selects that 
  9.10  provider, the provider is able to be authorized in the second 
  9.11  county without undergoing a new background investigation unless 
  9.12  one of the following conditions exists: 
  9.13     (1) two years have passed since the first authorization; 
  9.14     (2) another person age 13 or older has joined the 
  9.15  provider's household since the last authorization; 
  9.16     (3) a current household member has turned 13 since the last 
  9.17  authorization; or 
  9.18     (4) there is reason to believe that a household member has 
  9.19  a factor that prevents authorization. 
  9.20     (b) The person has been convicted of one of the following 
  9.21  offenses or has admitted to committing or a preponderance of the 
  9.22  evidence indicates that the person has committed an act that 
  9.23  meets the definition of one of the following offenses:  sections 
  9.24  609.185 to 609.195, murder in the first, second, or third 
  9.25  degree; 609.2661 to 609.2663, murder of an unborn child in the 
  9.26  first, second, or third degree; 609.322, solicitation, 
  9.27  inducement, or promotion of prostitution; 609.323, receiving 
  9.28  profit from prostitution; 609.342 to 609.345, criminal sexual 
  9.29  conduct in the first, second, third, or fourth degree; 609.352, 
  9.30  solicitation of children to engage in sexual conduct; 609.365, 
  9.31  incest; 609.377, felony malicious punishment of a child; 
  9.32  617.246, use of minors in sexual performance; 617.247, 
  9.33  possession of pictorial representation of a minor; 609.2242 to 
  9.34  609.2243, felony domestic assault; a felony offense of spousal 
  9.35  abuse; a felony offense of child abuse or neglect; a felony 
  9.36  offense of a crime against children; or an attempt or conspiracy 
 10.1   to commit any of these offenses as defined in Minnesota 
 10.2   Statutes; or an offense in any other state or country where the 
 10.3   elements are substantially similar to any of the offenses listed 
 10.4   in this paragraph. 
 10.5      (c) Less than 15 years have passed since the discharge of 
 10.6   the sentence imposed for the offense and the person has received 
 10.7   a felony conviction for one of the following offenses, or the 
 10.8   person has admitted to committing or a preponderance of the 
 10.9   evidence indicates that the person has committed an act that 
 10.10  meets the definition of a felony conviction for one of the 
 10.11  following offenses:  sections 609.20 to 609.205, manslaughter in 
 10.12  the first or second degree; 609.21, criminal vehicular homicide; 
 10.13  609.215, aiding suicide or aiding attempted suicide; 609.221 to 
 10.14  609.2231, assault in the first, second, third, or fourth degree; 
 10.15  609.224, repeat offenses of fifth degree assault; 609.228, great 
 10.16  bodily harm caused by distribution of drugs; 609.2325, criminal 
 10.17  abuse of a vulnerable adult; 609.2335, financial exploitation of 
 10.18  a vulnerable adult; 609.235, use of drugs to injure or 
 10.19  facilitate a crime; 609.24, simple robbery; 617.241, repeat 
 10.20  offenses of obscene materials and performances; 609.245, 
 10.21  aggravated robbery; 609.25, kidnapping; 609.255, false 
 10.22  imprisonment; 609.2664 to 609.2665, manslaughter of an unborn 
 10.23  child in the first or second degree; 609.267 to 609.2672, 
 10.24  assault of an unborn child in the first, second, or third 
 10.25  degree; 609.268, injury or death of an unborn child in the 
 10.26  commission of a crime; 609.27, coercion; 609.275, attempt to 
 10.27  coerce; 609.324, subdivision 1, other prohibited acts, minor 
 10.28  engaged in prostitution; 609.3451, repeat offenses of criminal 
 10.29  sexual conduct in the fifth degree; 609.378, neglect or 
 10.30  endangerment of a child; 609.52, theft; 609.521, possession of 
 10.31  shoplifting gear; 609.561 to 609.563, arson in the first, 
 10.32  second, or third degree; 609.582, burglary in the first, second, 
 10.33  third, or fourth degree; 609.625, aggravated forgery; 609.63, 
 10.34  forgery; 609.631, check forgery, offering a forged check; 
 10.35  609.635, obtaining signature by false pretenses; 609.66, 
 10.36  dangerous weapon; 609.665, setting a spring gun; 609.67, 
 11.1   unlawfully owning, possessing, or operating a machine gun; 
 11.2   609.687, adulteration; 609.71, riot; 609.713, terrorist threats; 
 11.3   609.749, harassment, stalking; 260.221, grounds for termination 
 11.4   of parental rights; 152.021 to 152.022, controlled substance 
 11.5   crime in the first or second degree; 152.023, subdivision 1, 
 11.6   clause (3) or (4), or 152.023, subdivision 2, clause (4), 
 11.7   controlled substance crime in third degree; 152.024, subdivision 
 11.8   1, clause (2), (3), or (4), controlled substance crime in fourth 
 11.9   degree; 617.23, repeat offenses of indecent exposure; an attempt 
 11.10  or conspiracy to commit any of these offenses as defined in 
 11.11  Minnesota Statutes; or an offense in any other state or country 
 11.12  where the elements are substantially similar to any of the 
 11.13  offenses listed in this paragraph. 
 11.14     (d) Less than ten years have passed since the discharge of 
 11.15  the sentence imposed for the offense and the person has received 
 11.16  a gross misdemeanor conviction for one of the following offenses 
 11.17  or the person has admitted to committing or a preponderance of 
 11.18  the evidence indicates that the person has committed an act that 
 11.19  meets the definition of a gross misdemeanor conviction for one 
 11.20  of the following offenses:  sections 609.224, fifth degree 
 11.21  assault; 609.2242 to 609.2243, domestic assault; 518B.01, 
 11.22  subdivision 14, violation of an order for protection; 609.3451, 
 11.23  fifth degree criminal sexual conduct; 609.746, repeat offenses 
 11.24  of interference with privacy; 617.23, repeat offenses of 
 11.25  indecent exposure; 617.241, obscene materials and performances; 
 11.26  617.243, indecent literature, distribution; 617.293, 
 11.27  disseminating or displaying harmful material to minors; 609.71, 
 11.28  riot; 609.66, dangerous weapons; 609.749, harassment, stalking; 
 11.29  609.224, subdivision 2, paragraph (c), fifth degree assault 
 11.30  against a vulnerable adult by a caregiver; 609.23, mistreatment 
 11.31  of persons confined; 609.231, mistreatment of residents or 
 11.32  patients; 609.2325, criminal abuse of a vulnerable adult; 
 11.33  609.2335, financial exploitation of a vulnerable adult; 609.233, 
 11.34  criminal neglect of a vulnerable adult; 609.234, failure to 
 11.35  report maltreatment of a vulnerable adult; 609.72, subdivision 
 11.36  3, disorderly conduct against a vulnerable adult; 609.265, 
 12.1   abduction; 609.378, neglect or endangerment of a child; 609.377, 
 12.2   malicious punishment of a child; 609.324, subdivision 1a, other 
 12.3   prohibited acts, minor engaged in prostitution; 609.33, 
 12.4   disorderly house; 609.52, theft; 609.582, burglary in the first, 
 12.5   second, third, or fourth degree; 609.631, check forgery, 
 12.6   offering a forged check; 609.275, attempt to coerce; an attempt 
 12.7   or conspiracy to commit any of these offenses as defined in 
 12.8   Minnesota Statutes; or an offense in any other state or country 
 12.9   where the elements are substantially similar to any of the 
 12.10  offenses listed in this paragraph. 
 12.11     (e) Less than seven years have passed since the discharge 
 12.12  of the sentence imposed for the offense and the person has 
 12.13  received a misdemeanor conviction for one of the following 
 12.14  offenses or the person has admitted to committing or a 
 12.15  preponderance of the evidence indicates that the person has 
 12.16  committed an act that meets the definition of a misdemeanor 
 12.17  conviction for one of the following offenses:  sections 609.224, 
 12.18  fifth degree assault; 609.2242, domestic assault; 518B.01, 
 12.19  violation of an order for protection; 609.3232, violation of an 
 12.20  order for protection; 609.746, interference with privacy; 
 12.21  609.79, obscene or harassing telephone calls; 609.795, letter, 
 12.22  telegram, or package opening, harassment; 617.23, indecent 
 12.23  exposure; 609.2672, assault of an unborn child, third degree; 
 12.24  617.293, dissemination and display of harmful materials to 
 12.25  minors; 609.66, dangerous weapons; 609.665, spring guns; an 
 12.26  attempt or conspiracy to commit any of these offenses as defined 
 12.27  in Minnesota Statutes; or an offense in any other state or 
 12.28  country where the elements are substantially similar to any of 
 12.29  the offenses listed in this paragraph. 
 12.30     (f) The person has been identified by the county's child 
 12.31  protection agency in the county where the provider resides or a 
 12.32  county where the provider has resided or by the statewide child 
 12.33  protection database as the person allegedly responsible for 
 12.34  physical or sexual abuse of a child within the last seven years. 
 12.35     (g) The person has been identified by the county's adult 
 12.36  protection agency in the county where the provider resides or a 
 13.1   county where the provider has resided or by the statewide adult 
 13.2   protection database as the person responsible for abuse or 
 13.3   neglect of a vulnerable adult within the last seven years. 
 13.4      (h) The person has refused to give written consent for 
 13.5   disclosure of criminal history records. 
 13.6      (i) The person has been denied a family child care license 
 13.7   or has received a fine or a sanction as a licensed child care 
 13.8   provider that has not been reversed on appeal. 
 13.9      (j) The person has a family child care licensing 
 13.10  disqualification that has not been set aside. 
 13.11     (k) The person has admitted or a county has found that 
 13.12  there is a preponderance of evidence that fraudulent information 
 13.13  was given to the county for child care assistance application 
 13.14  purposes or was used in submitting child care assistance bills 
 13.15  for payment. 
 13.16     (l) The person has been convicted or there is a 
 13.17  preponderance of evidence of the crime of theft by wrongfully 
 13.18  obtaining public assistance. 
 13.19     (m) The person has a household member age 13 or older who 
 13.20  has access to children during the hours that care is provided 
 13.21  and who meets one of the conditions listed in paragraphs (b) to 
 13.22  (l). 
 13.23     (n) The person has a household member ages ten to 12 who 
 13.24  has access to children during the hours that care is provided; 
 13.25  information or circumstances exist which provide the county with 
 13.26  articulable suspicion that further pertinent information may 
 13.27  exist showing the household member meets one of the conditions 
 13.28  listed in paragraphs (b) to (l); and the household member 
 13.29  actually meets one of the conditions listed in paragraphs (b) to 
 13.30  (l). 
 13.31     Sec. 11.  Minnesota Statutes 2002, section 119B.21, 
 13.32  subdivision 5, is amended to read: 
 13.33     Subd. 5.  [CHILD CARE SERVICES GRANTS.] (a) A child care 
 13.34  resource and referral program designated under section 119B.19, 
 13.35  subdivision 1a, may award child care services grants for: 
 13.36     (1) creating new licensed child care facilities and 
 14.1   expanding existing facilities, including, but not limited to, 
 14.2   supplies, equipment, facility renovation, and remodeling; 
 14.3      (2) improving licensed child care facility programs; 
 14.4      (3) staff training and development services including, but 
 14.5   not limited to, in-service training, curriculum development, 
 14.6   accreditation, certification, consulting, resource centers, and 
 14.7   program and resource materials; 
 14.8      (4) interim financing; 
 14.9      (5) capacity building through the purchase of appropriate 
 14.10  technology to create, enhance, and maintain business management 
 14.11  systems; 
 14.12     (6) emergency assistance for child care programs; 
 14.13     (7) new programs or projects for the creation, expansion, 
 14.14  or improvement of programs that serve ethnic immigrant and 
 14.15  refugee communities; and 
 14.16     (8) targeted recruitment initiatives to expand and build 
 14.17  the capacity of the child care system and to improve the quality 
 14.18  of care provided by legal nonlicensed child care providers. 
 14.19     (b) A child care resource and referral program designated 
 14.20  under section 119B.19, subdivision 1a, may award child care 
 14.21  services grants to: 
 14.22     (1) licensed providers; 
 14.23     (2) providers in the process of being licensed; 
 14.24     (3) corporations or public agencies that develop or provide 
 14.25  child care services; 
 14.26     (4) school-age care programs; or 
 14.27     (5) legal nonlicensed providers; or 
 14.28     (6) any combination of clauses (1) to (4) (5). 
 14.29  Unlicensed providers are only eligible for grants under 
 14.30  paragraph (a), clause (7). Providers described under clauses (2) 
 14.31  and (5), are only eligible for grants under paragraph (a), 
 14.32  clauses (3), (7), and (8). 
 14.33     (c) A recipient of a child care services grant for facility 
 14.34  improvements, interim financing, or staff training and 
 14.35  development must provide a 25 percent local match.  
 14.36     Sec. 12.  Minnesota Statutes 2002, section 256D.02, 
 15.1   subdivision 17, is amended to read: 
 15.2      Subd. 17.  [PROFESSIONAL CERTIFICATION.] "Professional 
 15.3   certification" means: 
 15.4      (1) a statement about a person's illness, injury, or 
 15.5   incapacity that is signed by a licensed physician, psychological 
 15.6   practitioner, or licensed psychologist, qualified by 
 15.7   professional training and experience to diagnose and certify the 
 15.8   person's condition; or 
 15.9      (2) a statement about an incapacity involving a spinal 
 15.10  subluxation condition that is signed by a licensed chiropractor 
 15.11  qualified by professional training and experience to diagnose 
 15.12  and certify the condition "qualified professional" as defined in 
 15.13  section 256J.08, subdivision 73a. 
 15.14                             ARTICLE 2 
 15.15                    ADOPTION AND CHILD PLACEMENT 
 15.16     Section 1.  Minnesota Statutes 2003 Supplement, section 
 15.17  245B.03, subdivision 2, is amended to read: 
 15.18     Subd. 2.  [RELATIONSHIP TO OTHER STANDARDS GOVERNING 
 15.19  SERVICES FOR PERSONS WITH MENTAL RETARDATION OR RELATED 
 15.20  CONDITIONS.] (a) ICFs/MR are exempt from: 
 15.21     (1) section 245B.04; 
 15.22     (2) section 245B.06, subdivisions 4 and 6; and 
 15.23     (3) section 245B.07, subdivisions 4, paragraphs (b) and 
 15.24  (c); 7; and 8, paragraphs (1), clause (iv), and (2). 
 15.25     (b) License holders also licensed under chapter 144 as a 
 15.26  supervised living facility are exempt from section 245B.04. 
 15.27     (c) Residential service sites controlled by license holders 
 15.28  licensed under this chapter for home and community-based 
 15.29  waivered services for four or fewer adults are exempt from 
 15.30  compliance with Minnesota Rules, parts 9543.0040, subpart 2, 
 15.31  item C; 9555.5505; 9555.5515, items B and G; 9555.5605; 
 15.32  9555.5705; 9555.6125, subparts 3, item C, subitem (2), and 4 to 
 15.33  6; 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 
 15.34  9555.6265; and as provided under section 245B.06, subdivision 2, 
 15.35  the license holder is exempt from the program abuse prevention 
 15.36  plans and individual abuse prevention plans otherwise required 
 16.1   under sections 245A.65, subdivision 2, and 626.557, subdivision 
 16.2   14.  The commissioner may approve alternative methods of 
 16.3   providing overnight supervision using the process and criteria 
 16.4   for granting a variance in section 245A.04, subdivision 9.  This 
 16.5   chapter does not apply to foster care homes that do not provide 
 16.6   residential habilitation services funded under the home and 
 16.7   community-based waiver programs defined in section 256B.092. 
 16.8      (d) Residential service sites controlled by license holders 
 16.9   licensed under this chapter for home and community-based 
 16.10  waivered services for four or fewer children are exempt from 
 16.11  compliance with Minnesota Rules, parts 9545.0130; 9545.0140; 
 16.12  9545.0150; 9545.0170; 9545.0220, subparts 1, items C, F, and I, 
 16.13  and 3; and 9545.0230 2960.3060, subpart 3, items B and C; 
 16.14  2960.3070; 2960.3100, subpart 1, items C, F, and I; and 
 16.15  2960.3210. 
 16.16     (e) The commissioner may exempt license holders from 
 16.17  applicable standards of this chapter when the license holder 
 16.18  meets the standards under section 245A.09, subdivision 7.  
 16.19  License holders that are accredited by an independent 
 16.20  accreditation body shall continue to be licensed under this 
 16.21  chapter. 
 16.22     (f) License holders governed by sections 245B.02 to 245B.07 
 16.23  must also meet the licensure requirements in chapter 245A.  
 16.24     (g) Nothing in this chapter prohibits license holders from 
 16.25  concurrently serving consumers with and without mental 
 16.26  retardation or related conditions provided this chapter's 
 16.27  standards are met as well as other relevant standards. 
 16.28     (h) The documentation that sections 245B.02 to 245B.07 
 16.29  require of the license holder meets the individual program plan 
 16.30  required in section 256B.092 or successor provisions. 
 16.31     Sec. 2.  Minnesota Statutes 2002, section 257.85, 
 16.32  subdivision 2, is amended to read: 
 16.33     Subd. 2.  [SCOPE.] The provisions of this section apply to 
 16.34  those situations in which the legal and physical custody of a 
 16.35  child is established with a relative or important friend with 
 16.36  whom the child has resided or had significant contact according 
 17.1   to section 260C.201, subdivision 11, by a district court order 
 17.2   issued on or after July 1, 1997, or a tribal court order issued 
 17.3   on or after July 1, 2004.  
 17.4      Sec. 3.  Minnesota Statutes 2002, section 257.85, 
 17.5   subdivision 3, is amended to read: 
 17.6      Subd. 3.  [DEFINITIONS.] For purposes of this section, the 
 17.7   terms defined in this subdivision have the meanings given them. 
 17.8      (a) "MFIP standard" means the transitional standard used to 
 17.9   calculate assistance under the MFIP program, or, if permanent 
 17.10  legal and physical custody of the child is given to a relative 
 17.11  custodian residing outside of Minnesota, the analogous 
 17.12  transitional standard or standard of need used to calculate 
 17.13  assistance under the TANF program of the state where the 
 17.14  relative custodian lives. 
 17.15     (b) "Local agency" means the local county social services 
 17.16  agency or tribal social services agency with legal custody of a 
 17.17  child prior to the transfer of permanent legal and physical 
 17.18  custody. 
 17.19     (c) "Permanent legal and physical custody" means permanent 
 17.20  legal and physical custody ordered by a Minnesota Juvenile Court 
 17.21  under section 260C.201, subdivision 27 11. 
 17.22     (d) "Relative" has the meaning given in section 260C.007, 
 17.23  subdivision 27. 
 17.24     (e) "Relative custodian" means a person who has permanent 
 17.25  legal and physical custody of a child.  When siblings, including 
 17.26  half-siblings and stepsiblings, are placed together in permanent 
 17.27  legal and physical custody, the person receiving permanent legal 
 17.28  and physical custody of the siblings is considered a relative 
 17.29  custodian of all of the siblings for purposes of this section. 
 17.30     (f) "Relative custody assistance agreement" means an 
 17.31  agreement entered into between a local agency and a person who 
 17.32  has been or will be awarded permanent legal and physical custody 
 17.33  of a child. 
 17.34     (g) "Relative custody assistance payment" means a monthly 
 17.35  cash grant made to a relative custodian pursuant to a relative 
 17.36  custody assistance agreement and in an amount calculated under 
 18.1   subdivision 7. 
 18.2      (h) "Remains in the physical custody of the relative 
 18.3   custodian" means that the relative custodian is providing 
 18.4   day-to-day care for the child and that the child lives with the 
 18.5   relative custodian; absence from the relative custodian's home 
 18.6   for a period of more than 120 days raises a presumption that the 
 18.7   child no longer remains in the physical custody of the relative 
 18.8   custodian. 
 18.9      Sec. 4.  Minnesota Statutes 2002, section 259.23, 
 18.10  subdivision 1, is amended to read: 
 18.11     Subdivision 1.  [VENUE.] (a) Except as provided in section 
 18.12  260C.101, subdivision 2, the juvenile court shall have original 
 18.13  jurisdiction in all adoption proceedings.  The proper venue for 
 18.14  an adoption proceeding shall be the county of the petitioner's 
 18.15  residence except as provided in paragraph (b).  However, 
 18.16     (b) Venue for the adoption of children committed to the 
 18.17  guardianship of the commissioner of human services shall be the 
 18.18  county with jurisdiction in the matter according to section 
 18.19  260C.317, subdivision 3. 
 18.20     (c) Upon request of the petitioner, the court having 
 18.21  jurisdiction over the matter under section 260C.317, subdivision 
 18.22  3, may transfer venue of an adoption proceeding involving a 
 18.23  child under the guardianship of the commissioner to the county 
 18.24  of the petitioner's residence upon determining that: 
 18.25     (1) the commissioner has given consent to the petitioner's 
 18.26  adoption of the child or that consent is unreasonably withheld; 
 18.27     (2) there is no other adoption petition for the child that 
 18.28  has been filed or is reasonably anticipated by the commissioner 
 18.29  or the commissioner's delegate to be filed; and 
 18.30     (3) transfer of venue is in the best interests of the child.
 18.31     Transfer of venue under this paragraph shall be according 
 18.32  to the rules of adoption court procedure. 
 18.33     (d) In all other adoptions, if the petitioner has acquired 
 18.34  a new residence in another county and requests a transfer of the 
 18.35  adoption proceeding, the court in which an adoption is initiated 
 18.36  may transfer the proceeding to the appropriate court in the new 
 19.1   county of residence if the transfer is in the best interests of 
 19.2   the person to be adopted.  The court transfers the proceeding by 
 19.3   ordering a continuance and by forwarding to the court 
 19.4   administrator of the appropriate court a certified copy of all 
 19.5   papers filed, together with an order of transfer.  The 
 19.6   transferring court also shall forward copies of the order of 
 19.7   transfer to the commissioner of human services and any agency 
 19.8   participating in the proceedings.  The judge of the receiving 
 19.9   court shall accept the order of the transfer and any other 
 19.10  documents transmitted and hear the case; provided, however, the 
 19.11  receiving court may in its discretion require the filing of a 
 19.12  new petition prior to the hearing.  
 19.13     Sec. 5.  Minnesota Statutes 2002, section 259.23, 
 19.14  subdivision 2, is amended to read: 
 19.15     Subd. 2.  [CONTENTS OF PETITION.] The petition shall be 
 19.16  signed by the petitioner and, if married, by the spouse.  It 
 19.17  shall be verified, and filed in duplicate.  The petition shall 
 19.18  allege: 
 19.19     (a) The full name, age and place of residence of 
 19.20  petitioner, and if married, the date and place of marriage; 
 19.21     (b) The date petitioner acquired physical custody of the 
 19.22  child and from what person or agency; 
 19.23     (c) The date of birth of the child, if known, and the state 
 19.24  and county where born; 
 19.25     (d) The name of the child's parents, if known, and the 
 19.26  guardian if there be one; 
 19.27     (e) The actual name of the child, if known, and any known 
 19.28  aliases; 
 19.29     (f) The name to be given the child if a change of name is 
 19.30  desired; 
 19.31     (g) The description and value of any real or personal 
 19.32  property owned by the child; 
 19.33     (h) That the petitioner desires that the relationship of 
 19.34  parent and child be established between petitioner and the 
 19.35  child, and that it is to the best interests of the child for the 
 19.36  child to be adopted by the petitioner.  
 20.1      In agency placements, the information required in clauses 
 20.2   (d) and (e) above shall not be required to be alleged in the 
 20.3   petition but shall be transmitted to the court by the 
 20.4   commissioner of human services or the agency.  
 20.5      Sec. 6.  Minnesota Statutes 2002, section 259.41, 
 20.6   subdivision 3, is amended to read: 
 20.7      Subd. 3.  [BACKGROUND CHECK; AFFIDAVIT OF HISTORY.] (a) At 
 20.8   the time an adoption study is commenced, each prospective 
 20.9   adoptive parent must: 
 20.10     (1) authorize access by the agency to any private data 
 20.11  needed to complete the study; 
 20.12     (2) provide all addresses at which the prospective adoptive 
 20.13  parent and anyone in the household over the age of 13 has 
 20.14  resided in the previous ten five years; and 
 20.15     (3) disclose any names used previously other than the name 
 20.16  used at the time of the study; and 
 20.17     (4) provide a set of fingerprints, which shall be forwarded 
 20.18  to the Bureau of Criminal Apprehension to facilitate the 
 20.19  criminal conviction background check required under paragraph 
 20.20  (b). 
 20.21     (b) When the requirements of paragraph (a) have been met, 
 20.22  the agency shall immediately begin a background check, on each 
 20.23  person over the age of 13 living in the home, consisting, at a 
 20.24  minimum, of the following: 
 20.25     (1) a check of criminal conviction data with the Bureau of 
 20.26  Criminal Apprehension and local law enforcement authorities; 
 20.27     (2) a check for data on substantiated maltreatment of a 
 20.28  child or vulnerable adult and domestic violence data with local 
 20.29  law enforcement and social services agencies and district 
 20.30  courts; and 
 20.31     (3) for those persons under the age of 25, a check of 
 20.32  juvenile court records. 
 20.33     Notwithstanding the provisions of section 260B.171 or 
 20.34  260C.171, the Bureau of Criminal Apprehension, local law 
 20.35  enforcement and social services agencies, district courts, and 
 20.36  juvenile courts shall release the requested information to the 
 21.1   agency completing the adoption study. 
 21.2      When paragraph (b) requires checking the data or records of 
 21.3   local law enforcement and social services agencies and district 
 21.4   and juvenile courts, the agency shall check with the law 
 21.5   enforcement and social services agencies and courts whose 
 21.6   jurisdictions cover the addresses under paragraph (a), clause 
 21.7   (2).  In the event that the agency is unable to complete any of 
 21.8   the record checks required by paragraph (b), the agency shall 
 21.9   document the fact and the agency's efforts to obtain the 
 21.10  information. 
 21.11     (c) At any time prior to completion of the background check 
 21.12  required under paragraph (b), a prospective adoptive parent may 
 21.13  submit to the agency conducting the study a sworn affidavit 
 21.14  stating whether they or any person residing in the household 
 21.15  have been convicted of a crime.  The affidavit shall also state 
 21.16  whether the adoptive parent or any other person residing in the 
 21.17  household is the subject of an open investigation of, or have 
 21.18  been the subject of a substantiated allegation of, child or 
 21.19  vulnerable-adult maltreatment within the past ten years.  A 
 21.20  complete description of the crime, open investigation, or 
 21.21  substantiated abuse, and a complete description of any sentence, 
 21.22  treatment, or disposition must be included.  The affidavit must 
 21.23  contain an acknowledgment that if, at any time before the 
 21.24  adoption is final, a court receives evidence leading to a 
 21.25  conclusion that a prospective adoptive parent knowingly gave 
 21.26  false information in the affidavit, it shall be determined that 
 21.27  the adoption of the child by the prospective adoptive parent is 
 21.28  not in the best interests of the child. 
 21.29     (d) For the purposes of subdivision 1 and section 259.47, 
 21.30  subdivisions 3 and 6, an adoption study is complete for 
 21.31  placement, even though the background checks required by 
 21.32  paragraph (b) have not been completed, if each prospective 
 21.33  adoptive parent has completed the affidavit allowed by paragraph 
 21.34  (c) and the other requirements of this section have been met.  
 21.35  The background checks required by paragraph (b) must be 
 21.36  completed before an adoption petition is filed.  If an adoption 
 22.1   study has been submitted to the court under section 259.47, 
 22.2   subdivision 3 or 6, before the background checks required by 
 22.3   paragraph (b) were complete, an updated adoption study report 
 22.4   which includes the results of the background check must be filed 
 22.5   with the adoption petition.  In the event that an agency is 
 22.6   unable to complete any of the records checks required by 
 22.7   paragraph (b), the agency shall submit with the petition to 
 22.8   adopt an affidavit documenting the agency's efforts to complete 
 22.9   the checks. 
 22.10     Sec. 7.  Minnesota Statutes 2002, section 259.79, 
 22.11  subdivision 1, is amended to read: 
 22.12     Subdivision 1.  [CONTENT.] (a) The adoption records of the 
 22.13  commissioner, the commissioner's agents and licensed 
 22.14  child-placing agencies shall contain copies of all relevant 
 22.15  legal documents, responsibly collected genetic, medical and 
 22.16  social history of the child and the child's birth parents, the 
 22.17  child's placement record, copies of all pertinent agreements, 
 22.18  contracts, and correspondence relevant to the adoption, and 
 22.19  copies of all reports and recommendations made to the court.  
 22.20     (b) The commissioner of human services shall maintain a 
 22.21  permanent record of all adoptions granted in Minnesota.  Each 
 22.22  record shall contain identifying information about the child, 
 22.23  birth parents and adoptive parents, the date and name of the 
 22.24  placing agency, the county of placement, the date and county of 
 22.25  petition to adopt, and the decree. 
 22.26     (c) Identifying information contained in the adoption 
 22.27  record shall be confidential and shall be disclosed only 
 22.28  pursuant to section 259.61.  
 22.29     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
 22.30  260.012, is amended to read: 
 22.31     260.012 [DUTY TO ENSURE PLACEMENT PREVENTION AND FAMILY 
 22.32  REUNIFICATION; REASONABLE EFFORTS.] 
 22.33     (a) Once a child alleged to be in need of protection or 
 22.34  services is under the court's jurisdiction, the court shall 
 22.35  ensure that reasonable efforts including culturally appropriate 
 22.36  services by the social services agency are made to prevent 
 23.1   placement or and to finalize a permanent plan for the child, as 
 23.2   appropriate.  "Reasonable efforts to finalize the permanent plan 
 23.3   for the child" include the agency's efforts to eliminate the 
 23.4   need for removal and to reunite the child with the child's 
 23.5   family at the earliest possible time, consistent with the best 
 23.6   interests, safety, and protection of the child and place the 
 23.7   child with a family that will be a legally permanent home for 
 23.8   the child in the event the child cannot be reunited with the 
 23.9   parent or guardian from whom the child was removed.  In 
 23.10  determining reasonable efforts to be made with respect to a 
 23.11  child and in making those reasonable efforts, the child's best 
 23.12  interests, health, and safety must be of paramount concern.  
 23.13  Reasonable efforts to prevent placement or for rehabilitation 
 23.14  and reunification are not required upon a determination by the 
 23.15  court that: 
 23.16     (1) a termination of parental rights petition has been 
 23.17  filed stating a prima facie case that: 
 23.18     (i) (1) the parent has subjected a child to egregious harm 
 23.19  as defined in section 260C.007, subdivision 14; 
 23.20     (ii) (2) the parental rights of the parent to another child 
 23.21  have been terminated involuntarily; 
 23.22     (iii) (3) the child is an abandoned infant under section 
 23.23  260C.301, subdivision 2, paragraph (a), clause (2); or 
 23.24     (iv) (4) the parent's custodial rights to another child 
 23.25  have been involuntarily transferred to a relative under section 
 23.26  260C.201, subdivision 11, paragraph (e), clause (1), or a 
 23.27  similar law of another jurisdiction; or 
 23.28     (2) the county attorney has filed a determination not to 
 23.29  proceed with a termination of parental rights petition on these 
 23.30  grounds was made under section 260C.301, subdivision 3, 
 23.31  paragraph (b), and a permanency hearing is held within 30 days 
 23.32  of the determination; or 
 23.33     (3) a termination of parental rights petition or other 
 23.34  petition according to section 260C.201, subdivision 11, has been 
 23.35  filed alleging a prima facie case that 
 23.36     (5) the provision of services or further services for the 
 24.1   purpose of reunification is futile and therefore unreasonable 
 24.2   under the circumstances. 
 24.3      When the court makes a prima facie determination under this 
 24.4   clause, either permanency pleadings required under section 
 24.5   260C.201, subdivision 11, or a termination of parental rights 
 24.6   petition under sections 260C.141 and 260C.301 must be filed and 
 24.7   a permanency hearing under section 260C.201, subdivision 11, be 
 24.8   held within 30 days of this hearing. 
 24.9      In the case of an Indian child, in proceedings under 
 24.10  sections 260B.178 or 260C.178, 260C.201, and 260C.301 the 
 24.11  juvenile court must make findings and conclusions consistent 
 24.12  with the Indian Child Welfare Act of 1978, United States Code, 
 24.13  title 25, section 1901 et seq., as to the provision of active 
 24.14  efforts.  If a child is under the court's delinquency 
 24.15  jurisdiction, it shall be the duty of the court to ensure that 
 24.16  reasonable efforts are made to reunite the child with the 
 24.17  child's family at the earliest possible time, consistent with 
 24.18  the best interests of the child and the safety of the public. 
 24.19     (b)(1) "Reasonable efforts to prevent placement" means: 
 24.20     (i) the agency has made reasonable efforts to prevent the 
 24.21  placement of the child; or 
 24.22     (ii) given the particular circumstances of the child and 
 24.23  family at the time of the child's removal, there are no services 
 24.24  or reasonable efforts available which could allow the child to 
 24.25  safely remain in the home. 
 24.26     (2) As appropriate under the particular circumstances and 
 24.27  stage of the case, "reasonable efforts to finalize a permanent 
 24.28  plan for the child" means reasonable efforts by the responsible 
 24.29  social services agency to: 
 24.30     (i) reunify the child with the parent or guardian from whom 
 24.31  the child was removed; 
 24.32     (ii) assess a noncustodial parent's ability to provide 
 24.33  day-to-day care for the child and, where appropriate, to provide 
 24.34  services necessary to enable the noncustodial parent's ability 
 24.35  to safely provide such care; and 
 24.36     (iii) finalize a safe and legally permanent home for the 
 25.1   child, preferably through adoption or transfer of permanent 
 25.2   legal and physical custody of the child, when the child cannot 
 25.3   return to the parent or guardian from whom the child was removed.
 25.4      (3) Reasonable efforts are made upon the exercise of due 
 25.5   diligence by the responsible social services agency to use 
 25.6   appropriate and available services to meet the needs of the 
 25.7   child and the child's family in order to prevent removal of the 
 25.8   child from the child's family; or upon removal, services to 
 25.9   eliminate the need for removal and reunite the family.  
 25.10     (1) (i) Services may include those provided by the 
 25.11  responsible social services agency and other appropriate 
 25.12  services available in the community.  
 25.13     (2) (ii) At each stage of the proceedings where the court 
 25.14  is required to review the appropriateness of the responsible 
 25.15  social services agency's reasonable efforts, the social services 
 25.16  agency has the burden of demonstrating that: 
 25.17     (A) it has made reasonable efforts, or that provision of 
 25.18  services or further services for the purpose of rehabilitation 
 25.19  and reunification is futile and therefore unreasonable under the 
 25.20  circumstances or that reasonable efforts aimed at reunification 
 25.21  are not required under this section to prevent placement; 
 25.22     (B) it has made reasonable efforts to finalize the 
 25.23  permanent plan for the child; or 
 25.24     (C) reasonable efforts to prevent placement and to reunify 
 25.25  the child with the parent or guardian are not required.  The 
 25.26  agency may meet this burden by stating facts in a sworn petition 
 25.27  filed under section 260C.141, or by filing an affidavit 
 25.28  summarizing the agency's reasonable efforts or facts the agency 
 25.29  believes demonstrate there is no need for reasonable efforts to 
 25.30  reunify the parent and child, or through testimony or a 
 25.31  certified report required under juvenile court rules. 
 25.32     (3) No (4) Once the court determines that reasonable 
 25.33  efforts for reunification are not required when the court makes 
 25.34  a determination because of a prima facie finding under paragraph 
 25.35  (a) unless, the court may only require reasonable efforts for 
 25.36  reunification after a hearing according to section 
 26.1   260C.163, where the court finds there is not clear and 
 26.2   convincing evidence of the facts upon which the court based its 
 26.3   prima facie determination.  In this case, the court may proceed 
 26.4   under section 260C.312.  Reunification of a surviving child with 
 26.5   a parent is not required if the parent has been convicted of: 
 26.6      (i) a violation of, or an attempt or conspiracy to commit a 
 26.7   violation of, sections 609.185 to 609.20; 609.222, subdivision 
 26.8   2; or 609.223 in regard to another child of the parent; 
 26.9      (ii) a violation of section 609.222, subdivision 2; or 
 26.10  609.223, in regard to the surviving child; or 
 26.11     (iii) a violation of, or an attempt or conspiracy to commit 
 26.12  a violation of, United States Code, title 18, section 1111(a) or 
 26.13  1112(a), in regard to another child of the parent. 
 26.14     (c) The juvenile court, in proceedings under sections 
 26.15  260B.178 or 260C.178, 260C.201, and 260C.301 shall make findings 
 26.16  and conclusions as to the provision of reasonable efforts.  When 
 26.17  determining whether reasonable efforts have been made, the court 
 26.18  shall consider whether services to the child and family were: 
 26.19     (1) relevant to the safety and protection of the child; 
 26.20     (2) adequate to meet the needs of the child and family; 
 26.21     (3) culturally appropriate; 
 26.22     (4) available and accessible; 
 26.23     (5) consistent and timely; and 
 26.24     (6) realistic under the circumstances. 
 26.25     In the alternative, the court may determine that provision 
 26.26  of services or further services for the purpose of 
 26.27  rehabilitation is futile and therefore unreasonable under the 
 26.28  circumstances or that reasonable efforts are not required as 
 26.29  provided in paragraph (a). 
 26.30     (d) This section does not prevent out-of-home placement for 
 26.31  treatment of a child with a mental disability when the child's 
 26.32  diagnostic assessment or individual treatment plan indicates 
 26.33  that appropriate and necessary treatment cannot be effectively 
 26.34  provided outside of a residential or inpatient treatment program.
 26.35     (e) If continuation of reasonable efforts described in 
 26.36  paragraph (b) to prevent placement or reunify the child with the 
 27.1   parent or guardian from whom the child was removed is determined 
 27.2   by the court to be inconsistent with the permanent plan for the 
 27.3   child, or upon a determination under paragraph (a), reasonable 
 27.4   efforts must be made to place the child in a timely manner in 
 27.5   accordance with the permanent plan ordered by the court a safe 
 27.6   and permanent home and to complete whatever steps are necessary 
 27.7   to legally finalize the permanent plan for placement of the 
 27.8   child.  
 27.9      (f) Reasonable efforts to place a child for adoption or in 
 27.10  another permanent placement may be made concurrently with 
 27.11  reasonable efforts as described in paragraphs (a) and (b) to 
 27.12  prevent placement or to reunify the child with the parent or 
 27.13  guardian from whom the child was removed.  When the responsible 
 27.14  social services agency decides to concurrently make reasonable 
 27.15  efforts for both reunification and permanent placement away from 
 27.16  the parent under paragraphs (a) and (b), the agency shall 
 27.17  disclose its decision and both plans for concurrent reasonable 
 27.18  efforts to all parties and the court.  When the agency discloses 
 27.19  its decision to proceed on both plans for reunification and 
 27.20  permanent placement away from the parent, the court's review of 
 27.21  the agency's reasonable efforts shall include the agency's 
 27.22  efforts under paragraphs (a) and (b) both plans. 
 27.23     Sec. 9.  Minnesota Statutes 2002, section 260C.001, 
 27.24  subdivision 3, is amended to read: 
 27.25     Subd. 3.  [PERMANENCY AND TERMINATION OF PARENTAL RIGHTS.] 
 27.26  The purpose of the laws relating to permanency and termination 
 27.27  of parental rights is to ensure that: 
 27.28     (1) when required and appropriate, reasonable efforts have 
 27.29  been made by the social services agency to reunite the child 
 27.30  with the child's parents in a home that is safe and permanent; 
 27.31  and 
 27.32     (2) if placement with the parents is not reasonably 
 27.33  foreseeable, to secure for the child a safe and permanent 
 27.34  placement, preferably with adoptive parents or a fit and willing 
 27.35  relative through transfer of permanent legal and physical 
 27.36  custody to that relative. 
 28.1      Nothing in this section requires reasonable efforts to 
 28.2   reunify the child with the parent or guardian to be made in 
 28.3   circumstances where the court has determined that the child has 
 28.4   been subjected to egregious harm or, when the child is an 
 28.5   abandoned infant, the parent has involuntarily lost custody of 
 28.6   another child through a proceeding under section 260C.201, 
 28.7   subdivision 11, or similar law of another state, the parental 
 28.8   rights of the parent to a sibling have been involuntarily 
 28.9   terminated, or the court has determined that reasonable efforts 
 28.10  or further reasonable efforts to reunify the child with the 
 28.11  parent or guardian would be futile. 
 28.12     The paramount consideration in all proceedings for 
 28.13  permanent placement of the child under section 260C.201, 
 28.14  subdivision 11, or the termination of parental rights is the 
 28.15  best interests of the child.  In proceedings involving an 
 28.16  American Indian child, as defined in section 260.755, 
 28.17  subdivision 8, the best interests of the child must be 
 28.18  determined consistent with the Indian Child Welfare Act of 1978, 
 28.19  United States Code, title 25, section 1901, et seq. 
 28.20     Sec. 10.  Minnesota Statutes 2002, section 260C.007, 
 28.21  subdivision 7, is amended to read: 
 28.22     Subd. 7.  [CHILD-PLACING AGENCY.] "Child-placing agency" 
 28.23  means anyone an agency licensed under sections 245A.01 to 
 28.24  245A.16 and 252.28, subdivision 2. 
 28.25     Sec. 11.  Minnesota Statutes 2002, section 260C.007, 
 28.26  subdivision 8, is amended to read: 
 28.27     Subd. 8.  [COMPELLING REASONS.] "Compelling reasons" means 
 28.28  an individualized determination by the responsible social 
 28.29  services agency, which is approved by the court, related to a 
 28.30  request by the agency not to initiate proceedings to terminate 
 28.31  parental rights or transfer permanent legal and physical custody 
 28.32  of a child to the child's relative or former noncustodial parent 
 28.33  under section 260C.301, subdivision 3, or to continue the child 
 28.34  in foster care past the time required in section 260C.201, 
 28.35  subdivision 11, or 260C.141, subdivision 2, paragraph (b). 
 28.36     Sec. 12.  Minnesota Statutes 2002, section 260C.007, 
 29.1   subdivision 18, is amended to read: 
 29.2      Subd. 18.  [FOSTER CARE.] "Foster care" means the 24 hour a 
 29.3   day care of a child in any facility which for gain or otherwise 
 29.4   regularly provides one or more children, when unaccompanied by 
 29.5   their parents, with a substitute for the care, food, lodging, 
 29.6   training, education, supervision or treatment they need but 
 29.7   which for any reason cannot be furnished by their parents or 
 29.8   legal guardians in their homes. substitute care for children 
 29.9   placed away from their parents or guardian and for whom a 
 29.10  responsible social services agency has placement and care 
 29.11  responsibility.  "Foster care" includes, but is not limited to, 
 29.12  placement in foster family homes, foster homes of relatives, 
 29.13  group homes, emergency shelters, residential facilities not 
 29.14  excluded in this subdivision, child care institutions, and 
 29.15  preadoptive homes.  A child is in foster care under this 
 29.16  definition regardless of whether the facility is licensed and 
 29.17  payments are made for the cost of care.  Nothing in this 
 29.18  definition creates any authority to place a child in a home or 
 29.19  facility that is required to be licensed which is not licensed.  
 29.20  "Foster care" does not include placement in any of the following 
 29.21  facilities:  hospitals, in-patient chemical dependency treatment 
 29.22  facilities, facilities that are primarily for delinquent 
 29.23  children, any corrections facility or program within a 
 29.24  particular corrections facility not meeting requirements for 
 29.25  Title IV-E facilities as determined by the commissioner, 
 29.26  facilities to which a child is committed under the provision of 
 29.27  chapter 253B, forestry camps, or jails. 
 29.28     Sec. 13.  Minnesota Statutes 2002, section 260C.007, 
 29.29  subdivision 22, is amended to read: 
 29.30     Subd. 22.  [LEGAL CUSTODY.] "Legal custody" means the right 
 29.31  to the care, custody, and control of a child who has been taken 
 29.32  from a parent by the court in accordance with the provisions of 
 29.33  section 260C.201 or 260C.317.  The expenses of legal custody are 
 29.34  paid in accordance with the provisions of section 
 29.35  260C.331.  "Legal custody" also means "emergency protective 
 29.36  care" and "protective care" as defined in the rules for juvenile 
 30.1   court. 
 30.2      Sec. 14.  Minnesota Statutes 2002, section 260C.007, 
 30.3   subdivision 27, is amended to read: 
 30.4      Subd. 27.  [RELATIVE.] "Relative" means a person related to 
 30.5   the child by blood, marriage, or adoption, or an individual who 
 30.6   is an important friend with whom the child has resided or had 
 30.7   significant contact.  For an Indian child, relative includes 
 30.8   members of the extended family as defined by the law or custom 
 30.9   of the Indian child's tribe or, in the absence of law or custom, 
 30.10  or in the absence of such law or custom, shall be a person who 
 30.11  has reached the age of 18 and who is the Indian child's 
 30.12  grandparent, aunt or uncle, brother or sister, brother-in-law or 
 30.13  sister-in-law, nieces, nephews, or first or second cousins or 
 30.14  stepparent, as provided in the Indian Child Welfare Act of 1978, 
 30.15  United States Code, title 25, section 1903. 
 30.16     Sec. 15.  Minnesota Statutes 2002, section 260C.151, 
 30.17  subdivision 6, is amended to read: 
 30.18     Subd. 6.  [IMMEDIATE CUSTODY.] If the court makes 
 30.19  individualized, explicit findings, based on the notarized 
 30.20  petition or sworn affidavit, that there are reasonable grounds 
 30.21  to believe the child is in surroundings or conditions which 
 30.22  endanger the child's health, safety, or welfare that require 
 30.23  that responsibility for the child's care and custody be 
 30.24  immediately assumed by the court responsible social services 
 30.25  agency and that continuation of the child in the custody of the 
 30.26  parent or guardian is contrary to the child's welfare, the court 
 30.27  may order that the officer serving the summons take the child 
 30.28  into immediate custody for placement of the child in foster 
 30.29  care.  In ordering that responsibility for the care, custody, 
 30.30  and control of the child be assumed by the responsible social 
 30.31  services agency, the court is ordering emergency protective care 
 30.32  as that term is defined in the rules of juvenile court. 
 30.33     Sec. 16.  Minnesota Statutes 2002, section 260C.178, is 
 30.34  amended to read: 
 30.35     260C.178 [DETENTION EMERGENCY REMOVAL HEARING.] 
 30.36     Subdivision 1.  [HEARING AND RELEASE REQUIREMENTS.] (a) If 
 31.1   a child was taken into custody under section 260C.175, 
 31.2   subdivision 1, clause (a) or (b)(2), the court shall hold a 
 31.3   hearing within 72 hours of the time the child was taken into 
 31.4   custody, excluding Saturdays, Sundays, and holidays, to 
 31.5   determine whether the child should continue in custody.  
 31.6      (b) Unless there is reason to believe that the child would 
 31.7   endanger self or others, not return for a court hearing, run 
 31.8   away from the child's parent, guardian, or custodian or 
 31.9   otherwise not remain in the care or control of the person to 
 31.10  whose lawful custody the child is released, or that the child's 
 31.11  health or welfare would be immediately endangered, the child 
 31.12  shall be released to the custody of a parent, guardian, 
 31.13  custodian, or other suitable person, subject to reasonable 
 31.14  conditions of release including, but not limited to, a 
 31.15  requirement that the child undergo a chemical use assessment as 
 31.16  provided in section 260C.157, subdivision 1.  If the court 
 31.17  determines there is reason to believe that the child would 
 31.18  endanger self or others; not return for a court hearing; run 
 31.19  away from the child's parent, guardian, or custodian or 
 31.20  otherwise not remain in the care or control of the person to 
 31.21  whose lawful custody the child is released; or that the child's 
 31.22  health or welfare would be immediately endangered, the court 
 31.23  shall order the child into foster care under the responsibility 
 31.24  of the responsible social services agency or responsible 
 31.25  probation or corrections agency for the purposes of protective 
 31.26  care.  In determining whether the child's health or welfare 
 31.27  would be immediately endangered, the court shall consider 
 31.28  whether the child would reside with a perpetrator of domestic 
 31.29  child abuse.  
 31.30     (c) The court, before determining whether a child should be 
 31.31  placed in or continue in custody foster care under the 
 31.32  protective care of the responsible agency, shall also make a 
 31.33  determination, consistent with section 260.012 as to whether 
 31.34  reasonable efforts, or were made to prevent placement or whether 
 31.35  reasonable efforts to prevent placement are not required.  In 
 31.36  the case of an Indian child, active efforts, according to the 
 32.1   Indian Child Welfare Act of 1978, United States Code, title 25, 
 32.2   section 1912(d), were made to prevent placement.  The court 
 32.3   shall also determine whether there are available services that 
 32.4   would prevent the need for further detention.  In the 
 32.5   alternative, The court shall enter a finding that the 
 32.6   responsible social services agency has made reasonable efforts 
 32.7   to prevent placement when the agency establishes either that it 
 32.8   has actually provided services or made efforts in an attempt to 
 32.9   prevent the child's removal, but that such services or efforts 
 32.10  have not proven sufficient to permit the child to safely remain 
 32.11  in the home or that there are no services or other efforts that 
 32.12  could be made at the time of the hearing that could safely 
 32.13  permit the child to remain home or to return home.  When 
 32.14  reasonable efforts to prevent placement are required and there 
 32.15  are services or other efforts that could be ordered which would 
 32.16  permit the child to safely return home, the court shall order 
 32.17  the child returned to the care of the parent or guardian and the 
 32.18  services or efforts put in place to ensure the child's safety.  
 32.19  When the court makes a prima facie determination that one of the 
 32.20  circumstances under paragraph (e) exists, the court shall 
 32.21  determine that reasonable efforts to prevent placement and to 
 32.22  return the child to the care of the parent or guardian are not 
 32.23  required if the court makes a prima facie determination that one 
 32.24  of the circumstances under paragraph (e) exists. 
 32.25     If the court finds the social services agency's preventive 
 32.26  or reunification efforts have not been reasonable but further 
 32.27  preventive or reunification efforts could not permit the child 
 32.28  to safely remain at home, the court may nevertheless authorize 
 32.29  or continue the removal of the child. 
 32.30     (d) The court may not order or continue the foster care 
 32.31  placement of the child unless the court makes explicit, 
 32.32  individualized findings that continued custody of the child by 
 32.33  the parent or guardian would be contrary to the welfare of the 
 32.34  child. 
 32.35     (e) At the detention emergency removal hearing, or at any 
 32.36  time during the course of the proceeding, and upon notice and 
 33.1   request of the county attorney, the court shall make the 
 33.2   following determinations: 
 33.3      (1) determine whether a termination of parental rights 
 33.4   petition has been filed stating a prima facie case that: 
 33.5      (i) (1) the parent has subjected a child to egregious harm 
 33.6   as defined in section 260C.007, subdivision 14; 
 33.7      (ii) (2) the parental rights of the parent to another child 
 33.8   have been involuntarily terminated; or 
 33.9      (iii) (3) the child is an abandoned infant under section 
 33.10  260C.301, subdivision 2, paragraph (a), clause (2); 
 33.11     (2) that (4) the parents' custodial rights to another child 
 33.12  have been involuntarily transferred to a relative under section 
 33.13  260C.201, subdivision 11, paragraph (e), clause (1), or a 
 33.14  similar law of another jurisdiction; or 
 33.15     (5) the provision of services or further services for the 
 33.16  purpose of reunification is futile and therefore unreasonable. 
 33.17     (f) When a petition to terminate parental rights is 
 33.18  required under section 260C.307, but the county attorney has 
 33.19  determined not to proceed with a termination of parental rights 
 33.20  petition under section 260C.307; or 
 33.21     (3) whether a termination of parental rights petition or 
 33.22  other petition according to section 260C.201, subdivision 11, 
 33.23  has been filed alleging a prima facie case that the provision of 
 33.24  services or further services for the purpose of rehabilitation 
 33.25  and reunification is futile and therefore unreasonable under the 
 33.26  circumstances. 
 33.27     If the court determines that the county attorney is not 
 33.28  proceeding with a termination of parental rights petition under 
 33.29  section 260C.307, but is proceeding with a petition under 
 33.30  section 260C.201, subdivision 11, the court shall schedule a 
 33.31  permanency hearing within 30 days., and has instead filed a 
 33.32  petition to transfer permanent legal and physical custody to a 
 33.33  relative under section 260C.201, subdivision 11, the court shall 
 33.34  schedule a permanency hearing within 30 days of a hearing under 
 33.35  this section. 
 33.36     (g) If the county attorney has filed a petition under 
 34.1   section 260C.307, the court shall schedule a trial under section 
 34.2   260C.163 within 90 days of the filing of the petition except 
 34.3   when the county attorney determines that the criminal case shall 
 34.4   proceed to trial first under section 260C.201, subdivision 3. 
 34.5      (f) (h) If the court determines the child should be ordered 
 34.6   into out-of-home placement foster care and the child's parent 
 34.7   refuses to give information to the responsible social services 
 34.8   agency regarding the child's father or relatives of the child, 
 34.9   the court may order the parent to disclose the names, addresses, 
 34.10  telephone numbers, and other identifying information to the 
 34.11  responsible social services agency for the purpose of complying 
 34.12  with the requirements of sections 260C.151, 260C.212, and 
 34.13  260C.215. 
 34.14     (g) (i) If a child ordered into out-of-home 
 34.15  placement foster care has siblings, whether full, half, or step, 
 34.16  who are also ordered into placement foster care, the court shall 
 34.17  inquire of the responsible social services agency of the efforts 
 34.18  to place the children together as required by section 260C.212, 
 34.19  subdivision 2, paragraph (d), if placement together is in each 
 34.20  child's best interests, unless a child is in placement due 
 34.21  solely to the child's own behavior or a child is placed with a 
 34.22  previously noncustodial parent who is not parent to all 
 34.23  siblings.  If the children are not placed together at the time 
 34.24  of the hearing, the court shall inquire at each subsequent 
 34.25  hearing of the agency's efforts to place the siblings together.  
 34.26  If any sibling is not placed with another sibling or siblings, 
 34.27  the agency must develop a plan for visitation among the siblings 
 34.28  as required under section 260C.212, subdivision 1. 
 34.29     Subd. 2.  [DURATION.] If the court determines that the 
 34.30  child should continue in detention, it may order detention 
 34.31  continued for eight days, excluding Saturdays, Sundays and 
 34.32  holidays, from and including the date of the order.  The court 
 34.33  shall include in its order the reasons for continued detention 
 34.34  and the findings of fact which support these reasons.  
 34.35     Subd. 3.  [PARENTAL VISITATION.] If a child has been taken 
 34.36  into custody under section 260C.151, subdivision 5, or 260C.175, 
 35.1   subdivision 1, clause (b)(2), and the court determines that the 
 35.2   child should continue in detention foster care, the court shall 
 35.3   include in its order reasonable rules for supervised or 
 35.4   unsupervised parental visitation of the child in the shelter 
 35.5   foster care facility unless it finds that visitation would 
 35.6   endanger the child's physical or emotional well-being.  
 35.7      Subd. 4.  [MENTAL HEALTH TREATMENT.] (a) Except as provided 
 35.8   in paragraph (b), a child who is held in detention foster care 
 35.9   as an alleged victim of child abuse as defined in section 
 35.10  630.36, subdivision 2, may not be given mental health treatment 
 35.11  specifically for the effects of the alleged abuse until the 
 35.12  court finds that there is probable cause to believe the abuse 
 35.13  has occurred. 
 35.14     (b) A child described in paragraph (a) may be given mental 
 35.15  health treatment prior to a probable cause finding of child 
 35.16  abuse if the treatment is either agreed to by the child's parent 
 35.17  or guardian in writing, or ordered by the court according to the 
 35.18  standard contained in section 260C.201, subdivision 1.  
 35.19     Subd. 5.  [COPIES OF ORDER.] Copies of the court's order 
 35.20  shall be served upon the parties, including the supervisor of 
 35.21  the detention facility placement facility, who which shall 
 35.22  release the child or continue to hold the child as the court 
 35.23  orders. 
 35.24     When the court's order is served upon these parties, notice 
 35.25  shall also be given to the parties of the subsequent reviews 
 35.26  provided by subdivision 6.  The notice shall also inform each 
 35.27  party of the right to submit to the court for informal review 
 35.28  any new evidence regarding whether the child should be continued 
 35.29  in detention and to request a hearing to present the evidence to 
 35.30  the court.  
 35.31     Subd. 6.  [REVIEW.] If a child held in detention under a 
 35.32  court order issued under subdivision 2 has not been released 
 35.33  prior to expiration of the order, the court or referee shall 
 35.34  informally review the child's case file to determine, under the 
 35.35  standards provided by subdivision 1, whether detention should be 
 35.36  continued.  If detention is continued thereafter, informal 
 36.1   reviews such as these shall be held within every eight days, 
 36.2   excluding Saturdays, Sundays, and holidays, of the child's 
 36.3   detention. When a child is placed in foster care, the child's 
 36.4   placement shall be periodically reviewed as required under the 
 36.5   rules of juvenile court including notice to the parties required 
 36.6   to be served with a copy of the order under subdivision 4. 
 36.7      A hearing, rather than an informal review of the child's 
 36.8   case file, shall be held at the request of any one of the 
 36.9   parties notified pursuant to subdivision 5, if that party 
 36.10  notifies the court of a wish to present to the court new 
 36.11  evidence concerning whether the child should be continued in 
 36.12  detention or notifies the court of a wish to present an 
 36.13  alternate placement arrangement to provide for the safety and 
 36.14  protection of the child. 
 36.15     In addition, if a child was taken into detention custody 
 36.16  under section 260C.151, subdivision 5, or 260C.175, subdivision 
 36.17  1, clause (c)(2), and is held in detention foster care or placed 
 36.18  in another facility under a court order issued under subdivision 
 36.19  2, the court shall schedule and hold an adjudicatory hearing on 
 36.20  the petition within 60 days of the detention emergency removal 
 36.21  hearing upon the request of any party to the proceeding.  
 36.22  However, if good cause is shown by a party to the proceeding why 
 36.23  the hearing should not be held within that time period, the 
 36.24  hearing shall be held within 90 days, unless the parties agree 
 36.25  otherwise and the court so orders.  
 36.26     Subd. 7.  [OUT-OF-HOME PLACEMENT PLAN.] (a) An out-of-home 
 36.27  placement plan required under section 260C.212 shall be filed 
 36.28  with the court within 30 days of the filing of a petition 
 36.29  alleging the child to be in need of protection or services under 
 36.30  section 260C.141, subdivision 1, or filed with the petition if 
 36.31  the petition is a review of a voluntary placement under section 
 36.32  260C.141, subdivision 2. 
 36.33     (b) Upon the filing of the out-of-home placement plan which 
 36.34  has been developed jointly with the parent and in consultation 
 36.35  with others as required under section 260C.212, subdivision 1, 
 36.36  the court may approve order the responsible social services 
 37.1   agency to implement the plan based on the allegations contained 
 37.2   in the petition.  The court shall send written notice of the 
 37.3   approval of to all parties that the out-of-home placement plan 
 37.4   to all parties and the county attorney has been ordered or may 
 37.5   state such approval order on the record at a hearing.  A parent 
 37.6   may agree to comply with the terms of the plan filed with the 
 37.7   court. 
 37.8      (c) Upon notice and motion by a parent who agrees to comply 
 37.9   with the terms of an out-of-home placement plan, the court may 
 37.10  modify the plan and order the responsible social services agency 
 37.11  to provide other or additional services for reunification, if 
 37.12  reunification efforts are required, and the court determines the 
 37.13  agency's plan inadequate under section 260.012. If a parent 
 37.14  refuses to cooperate in the development of the out-of-home 
 37.15  placement plan or disagrees with the services recommended by the 
 37.16  responsible social service agency, the agency shall note such 
 37.17  refusal or disagreement for the court in the out-of-home 
 37.18  placement plan filed with the court.  The agency shall notify 
 37.19  the court of the services it will provide or efforts it will 
 37.20  attempt under the plan notwithstanding the parents' refusal to 
 37.21  cooperate or disagreement with the services, and the court may 
 37.22  approve the plan based on the content of the petition. 
 37.23     (d) Unless the parent agrees to comply with the terms of 
 37.24  the out-of-home placement plan, the court may not order a parent 
 37.25  to comply with the provisions of the plan until the court makes 
 37.26  a determination determines that the child is in need of 
 37.27  protection or services and orders disposition under section 
 37.28  260C.201, subdivision 1.  However, the court may find that the 
 37.29  responsible social services agency has made reasonable efforts 
 37.30  for reunification if the agency makes efforts to implement the 
 37.31  terms of an out-of-home placement plan ordered or approved under 
 37.32  this section. 
 37.33     Sec. 17.  Minnesota Statutes 2002, section 260C.201, 
 37.34  subdivision 1, is amended to read: 
 37.35     Subdivision 1.  [DISPOSITIONS.] (a) If the court finds that 
 37.36  the child is in need of protection or services or neglected and 
 38.1   in foster care, it shall enter an order making any of the 
 38.2   following dispositions of the case: in paragraphs (b) to (l). 
 38.3      (1) (b) Place the child under the protective supervision of 
 38.4   the responsible social services agency or child-placing agency 
 38.5   in the home of a parent of the child under conditions prescribed 
 38.6   by the court directed to the correction of the child's need for 
 38.7   protection or services: 
 38.8      (i) the court may order the child into the home of a parent 
 38.9   who does not otherwise have legal custody of the child, however, 
 38.10  an order under this section does not confer legal custody on 
 38.11  that parent; 
 38.12     (ii) if the court orders the child into the home of a 
 38.13  father who is not adjudicated, he must cooperate with paternity 
 38.14  establishment proceedings regarding the child in the appropriate 
 38.15  jurisdiction as one of the conditions prescribed by the court 
 38.16  for the child to continue in his home; and 
 38.17     (iii) the court may order the child into the home of a 
 38.18  noncustodial parent with conditions and may also order both the 
 38.19  noncustodial and the custodial parent to comply with the 
 38.20  requirements of a case plan under subdivision 2; or. 
 38.21     (2) (c) Transfer legal custody to one of the following: 
 38.22     (i) a child-placing agency; or 
 38.23     (ii) the responsible social services agency. 
 38.24     (d) In placing making a foster care placement for a child 
 38.25  whose custody has been transferred under this paragraph 
 38.26  subdivision, the agencies agency shall make an individualized 
 38.27  determination of how the placement is in the child's best 
 38.28  interests using the consideration for relatives and the best 
 38.29  interest factors in section 260C.212, subdivision 2, paragraph 
 38.30  (b); or. 
 38.31     (e) When an agency has legal custody of a child, the court 
 38.32  may order a trial home visit, which means the child is returned 
 38.33  to the care of the parent or guardian from whom the child was 
 38.34  removed for a period not to exceed six months.  During the 
 38.35  period of the trial home visit, the responsible social services 
 38.36  agency: 
 39.1      (1) shall continue to have legal custody of the child, 
 39.2   which means the agency may see the child in the parent's home, 
 39.3   at school, in a child care facility, or other setting as the 
 39.4   agency deems necessary and appropriate; 
 39.5      (2) shall continue to have the ability to access 
 39.6   information under section 260C.208; 
 39.7      (3) shall continue to provide appropriate services to both 
 39.8   the parent and the child during the period of the trial home 
 39.9   visit; 
 39.10     (4) without previous court order or authorization, may 
 39.11  terminate the trial home visit and remove the child to foster 
 39.12  care; 
 39.13     (5) shall advise the court and parties within three days of 
 39.14  the termination of the trial home visit when a visit is 
 39.15  terminated by the responsible social services agency without a 
 39.16  court order; and 
 39.17     (6) shall prepare a report for the court when the trial 
 39.18  home visit is terminated whether by the agency or court order 
 39.19  which describes the child's circumstances during the trial home 
 39.20  visit and recommends appropriate orders, if any, for the court 
 39.21  to enter to provide for the child's safety and stability.  In 
 39.22  the event a trial home visit is terminated by the agency by 
 39.23  removing the child to foster care without prior court order or 
 39.24  authorization, the court shall conduct a hearing within ten days 
 39.25  of receiving notice of the termination of the trial home visit 
 39.26  by the agency and shall order disposition under this subdivision 
 39.27  or conduct a permanency hearing under subdivision 11 or 11a.  
 39.28  This time period for the hearing may be extended by the court 
 39.29  for good cause shown and if it is in the best interests of the 
 39.30  child as long as the total time the child spends in foster care 
 39.31  without a permanency hearing does not exceed 12 months. 
 39.32     (3) (f) If the child has been adjudicated as a child in 
 39.33  need of protection or services because the child is in need of 
 39.34  special services or care to treat or ameliorate a physical or 
 39.35  mental disability, the court may order the child's parent, 
 39.36  guardian, or custodian to provide it.  The court may order the 
 40.1   child's health plan company to provide mental health services to 
 40.2   the child.  Section 62Q.535 applies to an order for mental 
 40.3   health services directed to the child's health plan company.  If 
 40.4   the health plan, parent, guardian, or custodian fails or is 
 40.5   unable to provide this treatment or care, the court may order it 
 40.6   provided.  Absent specific written findings by the court that 
 40.7   the child's disability is the result of abuse or neglect by the 
 40.8   child's parent or guardian, the court shall not transfer legal 
 40.9   custody of the child for the purpose of obtaining special 
 40.10  treatment or care solely because the parent is unable to provide 
 40.11  the treatment or care.  If the court's order for mental health 
 40.12  treatment is based on a diagnosis made by a treatment 
 40.13  professional, the court may order that the diagnosing 
 40.14  professional not provide the treatment to the child if it finds 
 40.15  that such an order is in the child's best interests; or. 
 40.16     (4) (g) If the court believes that the child has sufficient 
 40.17  maturity and judgment and that it is in the best interests of 
 40.18  the child, the court may order a child 16 years old or older to 
 40.19  be allowed to live independently, either alone or with others as 
 40.20  approved by the court under supervision the court considers 
 40.21  appropriate, if the county board, after consultation with the 
 40.22  court, has specifically authorized this dispositional 
 40.23  alternative for a child. 
 40.24     (b) (h) If the child was adjudicated in need of protection 
 40.25  or services because the child is a runaway or habitual truant, 
 40.26  the court may order any of the following dispositions in 
 40.27  addition to or as alternatives to the dispositions authorized 
 40.28  under paragraph (a): 
 40.29     (1) counsel the child or the child's parents, guardian, or 
 40.30  custodian; 
 40.31     (2) place the child under the supervision of a probation 
 40.32  officer or other suitable person in the child's own home under 
 40.33  conditions prescribed by the court, including reasonable rules 
 40.34  for the child's conduct and the conduct of the parents, 
 40.35  guardian, or custodian, designed for the physical, mental, and 
 40.36  moral well-being and behavior of the child; or with the consent 
 41.1   of the commissioner of corrections, place the child in a group 
 41.2   foster care facility which is under the commissioner's 
 41.3   management and supervision; 
 41.4      (3) subject to the court's supervision, transfer legal 
 41.5   custody of the child to one of the following: 
 41.6      (i) a reputable person of good moral character.  No person 
 41.7   may receive custody of two or more unrelated children unless 
 41.8   licensed to operate a residential program under sections 245A.01 
 41.9   to 245A.16; or 
 41.10     (ii) a county probation officer for placement in a group 
 41.11  foster home established under the direction of the juvenile 
 41.12  court and licensed pursuant to section 241.021; 
 41.13     (4) require the child to pay a fine of up to $100.  The 
 41.14  court shall order payment of the fine in a manner that will not 
 41.15  impose undue financial hardship upon the child; 
 41.16     (5) require the child to participate in a community service 
 41.17  project; 
 41.18     (6) order the child to undergo a chemical dependency 
 41.19  evaluation and, if warranted by the evaluation, order 
 41.20  participation by the child in a drug awareness program or an 
 41.21  inpatient or outpatient chemical dependency treatment program; 
 41.22     (7) if the court believes that it is in the best interests 
 41.23  of the child and of public safety that the child's driver's 
 41.24  license or instruction permit be canceled, the court may order 
 41.25  the commissioner of public safety to cancel the child's license 
 41.26  or permit for any period up to the child's 18th birthday.  If 
 41.27  the child does not have a driver's license or permit, the court 
 41.28  may order a denial of driving privileges for any period up to 
 41.29  the child's 18th birthday.  The court shall forward an order 
 41.30  issued under this clause to the commissioner, who shall cancel 
 41.31  the license or permit or deny driving privileges without a 
 41.32  hearing for the period specified by the court.  At any time 
 41.33  before the expiration of the period of cancellation or denial, 
 41.34  the court may, for good cause, order the commissioner of public 
 41.35  safety to allow the child to apply for a license or permit, and 
 41.36  the commissioner shall so authorize; 
 42.1      (8) order that the child's parent or legal guardian deliver 
 42.2   the child to school at the beginning of each school day for a 
 42.3   period of time specified by the court; or 
 42.4      (9) require the child to perform any other activities or 
 42.5   participate in any other treatment programs deemed appropriate 
 42.6   by the court.  
 42.7      (i) To the extent practicable, the court shall enter a 
 42.8   disposition order the same day it makes a finding that a child 
 42.9   is in need of protection or services or neglected and in foster 
 42.10  care, but in no event not more than 15 days after the finding 
 42.11  unless the court finds that the best interests of the child will 
 42.12  be served by granting a delay.  If the child was under eight 
 42.13  years of age at the time the petition was filed, the disposition 
 42.14  order must be entered within ten days of the finding and the 
 42.15  court may not grant a delay unless good cause is shown and the 
 42.16  court finds the best interests of the child will be served by 
 42.17  the delay. 
 42.18     (c) (j) If a child who is 14 years of age or older is 
 42.19  adjudicated in need of protection or services because the child 
 42.20  is a habitual truant and truancy procedures involving the child 
 42.21  were previously dealt with by a school attendance review board 
 42.22  or county attorney mediation program under section 260A.06 or 
 42.23  260A.07, the court shall order a cancellation or denial of 
 42.24  driving privileges under paragraph (b) (h), clause (7), for any 
 42.25  period up to the child's 18th birthday. 
 42.26     (d) (k) In the case of a child adjudicated in need of 
 42.27  protection or services because the child has committed domestic 
 42.28  abuse and been ordered excluded from the child's parent's home, 
 42.29  the court shall dismiss jurisdiction if the court, at any time, 
 42.30  finds the parent is able or willing to provide an alternative 
 42.31  safe living arrangement for the child, as defined in Laws 1997, 
 42.32  chapter 239, article 10, section 2.  
 42.33     (e) (l) When a parent has complied with a case plan ordered 
 42.34  under subdivision 6 and the child is in the care of the parent, 
 42.35  the court may order the responsible social services agency to 
 42.36  monitor the parent's continued ability to maintain the child 
 43.1   safely in the home under such terms and conditions as the court 
 43.2   determines appropriate under the circumstances. 
 43.3      Sec. 18.  Minnesota Statutes 2002, section 260C.201, 
 43.4   subdivision 2, is amended to read: 
 43.5      Subd. 2.  [WRITTEN FINDINGS.] (a) Any order for a 
 43.6   disposition authorized under this section shall contain written 
 43.7   findings of fact to support the disposition and case plan 
 43.8   ordered and shall also set forth in writing the following 
 43.9   information: 
 43.10     (1) why the best interests and safety of the child are 
 43.11  served by the disposition and case plan ordered; 
 43.12     (2) what alternative dispositions or services under the 
 43.13  case plan were considered by the court, if any, and why such 
 43.14  dispositions or services were not appropriate in the instant 
 43.15  case; 
 43.16     (3) when legal custody of the child is transferred, the 
 43.17  appropriateness of the particular placement made or to be made 
 43.18  by the placing agency using responsible social services agency's 
 43.19  determinations regarding the factors in section 260C.212, 
 43.20  subdivision 2, paragraph (b); and 
 43.21     (4) when the child is removed from the care of a parent or 
 43.22  guardian, whether reasonable efforts consistent with section 
 43.23  260.012 were made to prevent or eliminate the necessity of the 
 43.24  child's removal and to reunify the family after removal.  The 
 43.25  court's findings must include a brief description of what 
 43.26  preventive and reunification efforts were made and why further 
 43.27  efforts could not have prevented or eliminated the necessity of 
 43.28  removal or that reasonable efforts were not required under 
 43.29  section 260.012 or 260C.178, subdivision 1. 
 43.30     (b) If the court finds that the social services agency's 
 43.31  preventive or reunification efforts have not been reasonable but 
 43.32  that further preventive or reunification efforts could not 
 43.33  permit the child to safely remain at home, the court may 
 43.34  nevertheless authorize or continue the removal of the child. 
 43.35     (c) If the child has been identified by the responsible 
 43.36  social services agency as the subject of concurrent permanency 
 44.1   planning, the court shall review the reasonable efforts of the 
 44.2   agency to recruit, identify, and make a placement in a home 
 44.3   where the foster parent or relative that has committed to being 
 44.4   the legally permanent home for the child in the event 
 44.5   reunification efforts are not successful. 
 44.6      Sec. 19.  Minnesota Statutes 2002, section 260C.201, 
 44.7   subdivision 6, is amended to read: 
 44.8      Subd. 6.  [CASE PLAN.] (a) For each disposition ordered 
 44.9   where the child is placed away from a parent or guardian, the 
 44.10  court shall order the responsible social services agency to 
 44.11  prepare a written out-of-home placement plan according to the 
 44.12  requirements of section 260C.212, subdivision 1. 
 44.13     (b) In cases where the child is not placed out of the home 
 44.14  or is ordered into the home of a noncustodial parent, the 
 44.15  responsible social services agency shall prepare a plan for 
 44.16  delivery of social services to the child and custodial parent 
 44.17  under section 626.556, subdivision 10, or any other case plan 
 44.18  required to meet the needs of the child.  The plan shall be 
 44.19  designed to safely maintain the child in the home or to reunite 
 44.20  the child with the custodial parent. 
 44.21     (c) The court may approve order the case plan as presented 
 44.22  or modify it after hearing from the parties.  Once the plan is 
 44.23  approved ordered, the court shall order all parties to shall 
 44.24  comply with it.  A copy of the approved case plan that is 
 44.25  ordered shall be attached to the court's order and incorporated 
 44.26  into it by reference. 
 44.27     (d) A party has a right to request a court review of the 
 44.28  reasonableness of the case plan upon a showing of a substantial 
 44.29  change of circumstances. 
 44.30     Sec. 20.  Minnesota Statutes 2002, section 260C.201, 
 44.31  subdivision 10, is amended to read: 
 44.32     Subd. 10.  [COURT REVIEW OF OUT-OF-HOME PLACEMENTS FOSTER 
 44.33  CARE.] (a) If the court places a child in a residential 
 44.34  facility, as defined in section 260C.212, subdivision 1 foster 
 44.35  care, the court shall review the out-of-home placement at least 
 44.36  every 90 days as required in juvenile court rules to determine 
 45.1   whether continued out-of-home placement is necessary and 
 45.2   appropriate or whether the child should be returned home.  
 45.3      (b) No later than six months after the child's out-of-home 
 45.4   placement in foster care, the court shall review agency efforts 
 45.5   pursuant to section 260C.212, subdivision 2, and order that the 
 45.6   efforts continue if the agency has failed to perform the duties 
 45.7   under that section.  
 45.8      (c) The court shall review the out-of-home placement plan 
 45.9   and may modify the plan as provided under subdivisions 6 and 7.  
 45.10     (d) When the court orders out-of-home placement foster care 
 45.11  or protective supervision with a noncustodial parent under 
 45.12  subdivision 1, the court shall notify the parents of the 
 45.13  provisions of subdivisions 11 and 11a as required under juvenile 
 45.14  court rules. 
 45.15     Sec. 21.  Minnesota Statutes 2002, section 260C.201, 
 45.16  subdivision 11, is amended to read: 
 45.17     Subd. 11.  [REVIEW OF COURT ORDERED PLACEMENTS; PERMANENT 
 45.18  PLACEMENT DETERMINATION.] (a) Except for This subdivision and 
 45.19  subdivision 11a do not apply in cases where the child is in 
 45.20  placement due solely to the child's developmental disability or 
 45.21  emotional disturbance, and where legal custody has not been 
 45.22  transferred to the responsible social services agency, and where 
 45.23  the court finds compelling reasons under section 260C.007, 
 45.24  subdivision 8, to continue the child in foster care past the 
 45.25  time periods specified in this subdivision.  Foster care 
 45.26  placements of children due solely to their disability are 
 45.27  governed by section 260C.141, subdivision 2, paragraph (b).  In 
 45.28  all other cases where the child is in foster care or in the care 
 45.29  of a noncustodial parent under subdivision 1 of this section, 
 45.30  the court shall conduct a hearing to determine the permanent 
 45.31  status of a child not later than 12 months after the child is 
 45.32  placed out of the home of the has been placed in foster care or 
 45.33  in the care of a noncustodial parent. 
 45.34     For purposes of this subdivision, the date of the child's 
 45.35  placement out of the home of the parent in foster care is the 
 45.36  earlier of the first court-ordered placement under section 
 46.1   260C.178 or 60 days after the date on which the child has been 
 46.2   voluntarily placed out of the home in foster care by the child's 
 46.3   parent or guardian.  For purposes of this subdivision, time 
 46.4   spent by a child under the protective supervision of the 
 46.5   responsible social services agency in the home of a noncustodial 
 46.6   parent pursuant to an order under subdivision 1 of this section 
 46.7   counts towards the requirement of a permanency hearing under 
 46.8   this subdivision or subdivision 11a.  Time spent on a trial home 
 46.9   visit does not count towards the requirement of a permanency 
 46.10  hearing under this subdivision or subdivision 11a. 
 46.11     For purposes of this subdivision, 12 months is calculated 
 46.12  as follows: 
 46.13     (1) during the pendency of a petition alleging that a child 
 46.14  is in need of protection or services, all time periods when a 
 46.15  child is placed out of the home of the parent in foster care or 
 46.16  in the home of a noncustodial parent are cumulated; 
 46.17     (2) if a child has been placed out of the home of the 
 46.18  parent in foster care within the previous five years under one 
 46.19  or more previous petitions, the lengths of all prior time 
 46.20  periods when the child was placed out of the home in foster care 
 46.21  within the previous five years are cumulated.  If a child under 
 46.22  this clause has been out of the home in foster care for 12 
 46.23  months or more, the court, if it is in the best interests of the 
 46.24  child and for compelling reasons, may extend the total time the 
 46.25  child may continue out of the home under the current petition up 
 46.26  to an additional six months before making a permanency 
 46.27  determination.  
 46.28     (b) Unless the responsible social services agency 
 46.29  recommends return of the child to the custodial parent or 
 46.30  parents, not later than 30 days prior to this hearing, the 
 46.31  responsible social services agency shall file pleadings in 
 46.32  juvenile court to establish the basis for the juvenile court to 
 46.33  order permanent placement of the child, including a termination 
 46.34  of parental rights petition, according to paragraph (d).  Notice 
 46.35  of the hearing and copies of the pleadings must be provided 
 46.36  pursuant to section 260C.152.  If a termination of parental 
 47.1   rights petition is filed before the date required for the 
 47.2   permanency planning determination and there is a trial under 
 47.3   section 260C.163 scheduled on that petition within 90 days of 
 47.4   the filing of the petition, no hearing need be conducted under 
 47.5   this subdivision. At the permanency hearing scheduled under this 
 47.6   subdivision, the court shall: 
 47.7      (1) review the pleadings filed to determine whether the 
 47.8   pleadings state a prima facie basis on which to order the child 
 47.9   placed permanently away from the parent, including a prima facie 
 47.10  basis for termination of parental rights where a termination of 
 47.11  parental rights petition has been filed; 
 47.12     (2) review the pleadings and record to determine whether 
 47.13  the pleadings and record state a prima facie basis to find that 
 47.14  reasonable efforts have been made to reunify the child with the 
 47.15  parent or guardian where such efforts are required; 
 47.16     (3) upon determining there is a prima facie basis as 
 47.17  required in clauses (1) and (2), the court shall require the 
 47.18  parent or guardian of the child to answer the pleadings as 
 47.19  required in rules of juvenile court; 
 47.20     (4) in the event the parent or guardian enters a denial to 
 47.21  the pleadings, or another party, including the child, objects to 
 47.22  the proposed permanent placement sought in the pleadings or to 
 47.23  the termination of parental rights, the court shall set the 
 47.24  matter for trial according to section 260C.163 not later than 60 
 47.25  days from the date of the permanency hearing required under this 
 47.26  subdivision, or where trial is required on a termination of 
 47.27  parental rights petition, not later than 90 days from the date 
 47.28  of the permanency hearing required under this subdivision; and 
 47.29     (5) in the event the court finds that the pleadings do not 
 47.30  state a prima facie basis on which to order permanent placement 
 47.31  of the child away from the parent, the court shall proceed 
 47.32  according to the requirements of the rules of juvenile court. 
 47.33     (c) At the conclusion of the hearing or the trial on the 
 47.34  permanency or termination of parental rights petition, the court 
 47.35  shall order the child returned to the care of the parent or 
 47.36  guardian from whom the child was removed, or order a trial home 
 48.1   visit and delay further orders regarding permanent placement of 
 48.2   the child pending the agency's assessment of the trial home 
 48.3   visit and further hearing, or order a permanent placement or 
 48.4   termination of parental rights if permanent placement or 
 48.5   termination of parental rights is in the child's best 
 48.6   interests.  The "best interests of the child" means all relevant 
 48.7   factors to be considered and evaluated.  Transfer of permanent 
 48.8   legal and physical custody, termination of parental rights, or 
 48.9   guardianship and legal custody to the commissioner through a 
 48.10  consent to adopt are preferred permanency options for a child 
 48.11  who cannot return home. 
 48.12     (d) If the child is not returned to the home, the court 
 48.13  must order one of the following dispositions: 
 48.14     (1) permanent legal and physical custody to a relative in 
 48.15  the best interests of the child according to the following 
 48.16  conditions: 
 48.17     (i) an order for transfer of permanent legal and physical 
 48.18  custody to a relative shall only be made after the court has 
 48.19  reviewed the suitability of the prospective legal and physical 
 48.20  custodian; 
 48.21     (ii) in transferring permanent legal and physical custody 
 48.22  to a relative, the juvenile court shall follow the standards 
 48.23  applicable under this chapter and chapter 260, and the 
 48.24  procedures set out in the juvenile court rules; 
 48.25     (iii) an order establishing permanent legal and physical 
 48.26  custody under this subdivision must be filed with the family 
 48.27  court; 
 48.28     (iv) a transfer of legal and physical custody includes 
 48.29  responsibility for the protection, education, care, and control 
 48.30  of the child and decision making on behalf of the child; 
 48.31     (v) the social services agency may bring a petition or 
 48.32  motion naming a fit and willing relative as a proposed permanent 
 48.33  legal and physical custodian.  The commissioner of human 
 48.34  services shall annually prepare for counties information that 
 48.35  must be given to proposed custodians about their legal rights 
 48.36  and obligations as custodians together with information on 
 49.1   financial and medical benefits for which the child is eligible; 
 49.2   and 
 49.3      (vi) the juvenile court may maintain jurisdiction over the 
 49.4   responsible social services agency, the parents or guardian of 
 49.5   the child, the child, and the permanent legal and physical 
 49.6   custodian for purposes of ensuring appropriate services are 
 49.7   delivered to the child and permanent legal custodian or for the 
 49.8   purpose of ensuring conditions ordered by the court related to 
 49.9   the care and custody of the child are met; 
 49.10     (2) termination of parental rights when the requirements of 
 49.11  sections 260C.301 to 260C.328 are met or according to the 
 49.12  following conditions: 
 49.13     (i) unless order the social services agency has already 
 49.14  filed to file a petition for termination of parental 
 49.15  rights under section 260C.307, the court may order such a 
 49.16  petition filed and in which case all the requirements of 
 49.17  sections 260C.301 to 260C.328 remain applicable; and 
 49.18     (ii) an adoption completed subsequent to a determination 
 49.19  under this subdivision may include an agreement for 
 49.20  communication or contact under section 259.58; 
 49.21     (3) long-term foster care according to the following 
 49.22  conditions: 
 49.23     (i) the court may order a child into long-term foster care 
 49.24  only if it finds approves the responsible social service 
 49.25  agency's compelling reasons that neither an award of permanent 
 49.26  legal and physical custody to a relative, nor termination of 
 49.27  parental rights is in the child's best interests; and 
 49.28     (ii) further, the court may only order long-term foster 
 49.29  care for the child under this section if it finds the following: 
 49.30     (A) the child has reached age 12 and reasonable efforts by 
 49.31  the responsible social services agency have failed has made 
 49.32  reasonable efforts to locate and place the child with an 
 49.33  adoptive family for the child or with a fit and willing relative 
 49.34  who will agree to a transfer of permanent legal and physical 
 49.35  custody of the child, but such efforts have not proven 
 49.36  successful; or 
 50.1      (B) the child is a sibling of a child described in subitem 
 50.2   (A) and the siblings have a significant positive relationship 
 50.3   and are ordered into the same long-term foster care home; and 
 50.4      (iii) at least annually, the responsible social services 
 50.5   agency reconsiders its provision of services to the child and 
 50.6   the child's placement in long-term foster care to ensure that: 
 50.7      (A) long-term foster care continues to be the most 
 50.8   appropriate legal arrangement for meeting the child's need for 
 50.9   permanency and stability, including whether there is another 
 50.10  permanent placement option under this chapter that would better 
 50.11  serve the child's needs and best interests; 
 50.12     (B) whenever possible, there is an identified long-term 
 50.13  foster care family that is committed to being the foster family 
 50.14  for the child as long as the child is a minor or under the 
 50.15  jurisdiction of the court; 
 50.16     (C) the child is receiving appropriate services or 
 50.17  assistance to maintain or build connections with the child's 
 50.18  family and community; 
 50.19     (D) the child's physical and mental health needs are being 
 50.20  appropriately provided for; and 
 50.21     (E) the child's educational needs are being met; 
 50.22     (4) foster care for a specified period of time according to 
 50.23  the following conditions: 
 50.24     (i) foster care for a specified period of time may be 
 50.25  ordered only if: 
 50.26     (A) the sole basis for an adjudication that the child is in 
 50.27  need of protection or services is the child's behavior; 
 50.28     (B) the court finds that foster care for a specified period 
 50.29  of time is in the best interests of the child; and 
 50.30     (C) the court finds approves the responsible social 
 50.31  services agency's compelling reasons that neither an award of 
 50.32  permanent legal and physical custody to a relative, nor 
 50.33  termination of parental rights is in the child's best interests; 
 50.34     (ii) the order does not specify that the child continue in 
 50.35  foster care for any period exceeding one year; or 
 50.36     (5) guardianship and legal custody to the commissioner of 
 51.1   human services under the following procedures and conditions: 
 51.2      (i) there is an identified prospective adoptive home agreed 
 51.3   to by the responsible social services agency that has agreed to 
 51.4   adopt the child and the court accepts the parent's voluntary 
 51.5   consent to adopt under section 259.24 except that such consent 
 51.6   executed by a parent under this clause shall be irrevocable 
 51.7   unless fraud is established and an order issues permitting 
 51.8   revocation as stated in item (vii); 
 51.9      (ii) if the court accepts a consent to adopt in lieu of 
 51.10  ordering one of the other enumerated permanency dispositions, 
 51.11  the court must review the matter at least every 90 days.  The 
 51.12  review will address the reasonable efforts of the agency to 
 51.13  achieve a finalized adoption; 
 51.14     (iii) a consent to adopt under this clause vests all legal 
 51.15  authority regarding the child, including guardianship and legal 
 51.16  custody of the child, with the commissioner of human services as 
 51.17  if the child were a state ward after termination of parental 
 51.18  rights; 
 51.19     (iv) the court must forward a copy of the consent to adopt, 
 51.20  together with a certified copy of the order transferring 
 51.21  guardianship and legal custody to the commissioner, to the 
 51.22  commissioner; and 
 51.23     (v) if an adoption is not finalized by the identified 
 51.24  prospective adoptive parent within 12 months of the execution of 
 51.25  the consent to adopt under this clause, the commissioner of 
 51.26  human services or the commissioner's delegate shall pursue 
 51.27  adoptive placement in another home unless the commissioner 
 51.28  certifies that the failure to finalize is not due to either an 
 51.29  action or a failure to act by the prospective adoptive parent.; 
 51.30     (vi) notwithstanding item (v), as soon as the commissioner 
 51.31  or commissioner's delegate determines that finalization of the 
 51.32  adoption with the identified prospective adoptive parent is not 
 51.33  possible, that the prospective adoptive parent is not 
 51.34  cooperative in completing the steps necessary to finalize the 
 51.35  adoption, or upon the commissioner's determination to withhold 
 51.36  consent to the adoption under chapter 259, the commissioner or 
 52.1   commissioner's delegate shall pursue adoptive placement in 
 52.2   another home; and 
 52.3      (vii) except as otherwise required by the Indian Child 
 52.4   Welfare Act, United States Code, title 25, section 1913, a 
 52.5   consent to adopt executed under this section shall be 
 52.6   irrevocable upon acceptance by the court except upon order 
 52.7   permitting revocation issued by the same court after written 
 52.8   findings that consent was obtained by fraud. 
 52.9      (e) In ordering a permanent placement of a child, the court 
 52.10  must be governed by the best interests of the child, including a 
 52.11  review of the relationship between the child and relatives and 
 52.12  the child and other important persons with whom the child has 
 52.13  resided or had significant contact. 
 52.14     (f) Once a permanent placement determination has been made 
 52.15  and permanent placement has been established, further court 
 52.16  reviews are necessary if: 
 52.17     (1) the placement is long-term foster care or foster care 
 52.18  for a specified period of time; 
 52.19     (2) the court orders further hearings because it has 
 52.20  retained jurisdiction of a transfer of permanent legal and 
 52.21  physical custody matter; 
 52.22     (3) an adoption has not yet been finalized; or 
 52.23     (4) there is a disruption of the permanent or long-term 
 52.24  placement.  
 52.25     (g) Court reviews of an order for long-term foster care, 
 52.26  whether under this section or section 260C.317, subdivision 3, 
 52.27  paragraph (d), or foster care for a specified period of time 
 52.28  must be conducted at least yearly and must review the child's 
 52.29  out-of-home placement plan and the reasonable efforts of the 
 52.30  agency to finalize the permanent plan for the child including 
 52.31  the agency's efforts to: 
 52.32     (1) ensure that long-term foster care continues to be the 
 52.33  most appropriate legal arrangement for meeting the child's need 
 52.34  for permanency and stability or, if not, to identify and attempt 
 52.35  to finalize another permanent placement option under this 
 52.36  chapter that would better serve the child's needs and best 
 53.1   interests; 
 53.2      (2) identify a specific long-term foster home for the child 
 53.3   or a specific foster home for the time the child is specified to 
 53.4   be out of the care of the parent, if one has not already been 
 53.5   identified; 
 53.6      (2) (3) support continued placement of the child in the 
 53.7   identified home, if one has been identified; 
 53.8      (3) (4) ensure appropriate services are provided to address 
 53.9   the physical health, mental health, and educational needs of the 
 53.10  child during the period of long-term foster care or foster care 
 53.11  for a specified period of time and also ensure appropriate 
 53.12  services or assistance to maintain relationships with 
 53.13  appropriate family members and the child's community; and 
 53.14     (4) (5) plan for the child's independence upon the child's 
 53.15  leaving long-term foster care living as required under section 
 53.16  260C.212, subdivision 1; and 
 53.17     (5) where placement is for a specified period of time, a 
 53.18  plan for the safe return of the child to the care of the parent. 
 53.19     (h) In the event it is necessary for a child that has been 
 53.20  ordered into foster care for a specified period of time to 
 53.21  exceed one year in foster care, not later than 12 months after 
 53.22  the time the child was ordered into foster care for a specified 
 53.23  period of time, the matter must be returned to court for a 
 53.24  review of the appropriateness of continuing the child in foster 
 53.25  care and of the responsible social services agency's reasonable 
 53.26  efforts to finalize a permanent plan for the child; if it is in 
 53.27  the child's best interests to continue the order for foster care 
 53.28  for a specified period of time past a total of 12 months, the 
 53.29  court shall set objectives for the child's continuation in 
 53.30  foster care, specify any further amount of time the child may be 
 53.31  in foster care, and review the plan for the safe return of the 
 53.32  child to the parent. 
 53.33     (h) (i) An order under this subdivision permanently placing 
 53.34  a child out of the home of the parent or guardian must include 
 53.35  the following detailed findings: 
 53.36     (1) how the child's best interests are served by the order; 
 54.1      (2) the nature and extent of the responsible social service 
 54.2   agency's reasonable efforts, or, in the case of an Indian child, 
 54.3   active efforts to reunify the child with the parent or 
 54.4   parents guardian where such efforts are required; 
 54.5      (3) the parent's or parents' efforts and ability to use 
 54.6   services to correct the conditions which led to the out-of-home 
 54.7   placement; and 
 54.8      (4) whether that the conditions which led to the 
 54.9   out-of-home placement have not been corrected so that the child 
 54.10  can safely return home. 
 54.11     (i) (j) An order for permanent legal and physical custody 
 54.12  of a child may be modified under sections 518.18 and 518.185.  
 54.13  The social services agency is a party to the proceeding and must 
 54.14  receive notice.  A parent may only seek modification of an order 
 54.15  for long-term foster care upon motion and a showing by the 
 54.16  parent of a substantial change in the parent's circumstances 
 54.17  such that the parent could provide appropriate care for the 
 54.18  child and that removal of the child from the child's permanent 
 54.19  placement and the return to the parent's care would be in the 
 54.20  best interest of the child.  The responsible social services 
 54.21  agency may seek vacation of an order for long-term foster care 
 54.22  upon a prima facie showing that there is a factual basis for the 
 54.23  court to order another permanency option under this chapter and 
 54.24  that such an option is in the child's best interests.  Upon a 
 54.25  hearing where the court determines that there is a factual basis 
 54.26  for vacating the order for long-term foster care and that 
 54.27  another permanent order regarding the placement of the child is 
 54.28  in the child's best interests, the court may vacate the order 
 54.29  for long-term foster care and enter a different order for 
 54.30  permanent placement that is in the child's best interests.  The 
 54.31  court shall not require further reasonable efforts to reunify 
 54.32  the child with the parent or guardian as a basis for vacating 
 54.33  the order for long-term foster care and ordering a different 
 54.34  permanent placement in the child's best interests.  The county 
 54.35  attorney must file pleadings and give notice as required under 
 54.36  the rules of juvenile court in order to modify an order for 
 55.1   long-term foster care under this clause. 
 55.2      (j) (k) The court shall issue an order required under this 
 55.3   section within 15 days of the close of the proceedings.  The 
 55.4   court may extend issuing the order an additional 15 days when 
 55.5   necessary in the interests of justice and the best interests of 
 55.6   the child. 
 55.7      Sec. 22.  Minnesota Statutes 2002, section 260C.212, 
 55.8   subdivision 5, is amended to read: 
 55.9      Subd. 5.  [RELATIVE SEARCH; NATURE.] (a) In implementing 
 55.10  the requirement that the responsible social services agency must 
 55.11  consider placement with a relative under subdivision 2 as soon 
 55.12  as possible without delay after identifying the need for 
 55.13  placement of the child in foster care, the responsible social 
 55.14  services agency shall identify relatives of the child and notify 
 55.15  them of the need for a foster care home for the child and of the 
 55.16  possibility of the need for a permanent out-of-home placement of 
 55.17  the child.  The relative search required by this section shall 
 55.18  be reasonable and comprehensive in scope and may last up to six 
 55.19  months or until a fit and willing relative is 
 55.20  identified.  Relatives should be notified that a decision not to 
 55.21  be a placement resource at the beginning of the case may affect 
 55.22  the relative being considered for placement of the child with 
 55.23  that relative later The relative search required by this section 
 55.24  shall include both maternal relatives of the child and paternal 
 55.25  relatives of the child, if paternity is adjudicated.  The 
 55.26  relatives must be notified that they must keep the responsible 
 55.27  social services agency informed of their current address in 
 55.28  order to receive notice that a permanent placement is being 
 55.29  sought for the child.  A relative who fails to provide a current 
 55.30  address to the responsible social services agency forfeits the 
 55.31  right to notice of the possibility of permanent placement.  A 
 55.32  decision by a relative not to be a placement resource at the 
 55.33  beginning of the case shall not affect whether the relative is 
 55.34  considered for placement of the child with that relative later. 
 55.35     (b) A responsible social services agency may disclose 
 55.36  private or confidential data, as defined in section 13.02, to 
 56.1   relatives of the child for the purpose of locating a suitable 
 56.2   placement.  The agency shall disclose only data that is 
 56.3   necessary to facilitate possible placement with relatives.  If 
 56.4   the child's parent refuses to give the responsible social 
 56.5   services agency information sufficient to identify the maternal 
 56.6   and paternal relatives of the child, the agency shall determine 
 56.7   whether the parent's refusal is in the child's best interests.  
 56.8   If the agency determines the parent's refusal is not in the 
 56.9   child's best interests, the agency shall file a petition under 
 56.10  section 260C.141, and shall ask the juvenile court to order the 
 56.11  parent to provide the necessary information.  If a parent makes 
 56.12  an explicit request that relatives or a specific relative not be 
 56.13  contacted or considered for placement, the agency shall bring 
 56.14  the parent's request to the attention of the court to determine 
 56.15  whether the parent's request is consistent with the best 
 56.16  interests of the child and the agency shall not contact 
 56.17  relatives or a specific relative unless authorized to do so by 
 56.18  the juvenile court. 
 56.19     (c) When the placing agency determines that a permanent 
 56.20  placement hearing is necessary because there is a likelihood 
 56.21  that the child will not return to a parent's care, the agency 
 56.22  may send the notice provided in paragraph (d), may ask the court 
 56.23  to modify the requirements of the agency under this paragraph, 
 56.24  or may ask the court to completely relieve the agency of the 
 56.25  requirements of this paragraph.  The relative notification 
 56.26  requirements of this paragraph do not apply when the child is 
 56.27  placed with an appropriate relative or a foster home that has 
 56.28  committed to being the permanent legal placement for the child 
 56.29  and the agency approves of that foster home for permanent 
 56.30  placement of the child.  The actions ordered by the court under 
 56.31  this section must be consistent with the best interests, safety, 
 56.32  and welfare of the child. 
 56.33     (d) Unless required under the Indian Child Welfare Act or 
 56.34  relieved of this duty by the court under paragraph (c), when the 
 56.35  agency determines that it is necessary to prepare for the 
 56.36  permanent placement determination hearing, or in anticipation of 
 57.1   filing a termination of parental rights petition, the agency 
 57.2   shall send notice to the relatives, any adult with whom the 
 57.3   child is currently residing, any adult with whom the child has 
 57.4   resided for one year or longer in the past, and any adults who 
 57.5   have maintained a relationship or exercised visitation with the 
 57.6   child as identified in the agency case plan.  The notice must 
 57.7   state that a permanent home is sought for the child and that the 
 57.8   individuals receiving the notice may indicate to the agency 
 57.9   their interest in providing a permanent home.  The notice must 
 57.10  state that within 30 days of receipt of the notice an individual 
 57.11  receiving the notice must indicate to the agency the 
 57.12  individual's interest in providing a permanent home for the 
 57.13  child or that the individual may lose the opportunity to be 
 57.14  considered for a permanent placement.  
 57.15     (e) The Department of Human Services shall develop a best 
 57.16  practices guide and specialized staff training to assist the 
 57.17  responsible social services agency in performing and complying 
 57.18  with the relative search requirements under this subdivision. 
 57.19     Sec. 23.  Minnesota Statutes 2002, section 260C.312, is 
 57.20  amended to read: 
 57.21     260C.312 [DISPOSITION; PARENTAL RIGHTS NOT TERMINATED.] 
 57.22     (a) If, after a hearing, the court does not terminate 
 57.23  parental rights but determines that the child is in need of 
 57.24  protection or services, or that the child is neglected and in 
 57.25  foster care, the court may find the child is in need of 
 57.26  protection or services or neglected and in foster care and may 
 57.27  enter an order in accordance with the provisions of section 
 57.28  260C.201. 
 57.29     (b) When a child has been in placement 15 of the last 22 
 57.30  months after a trial on a termination of parental rights 
 57.31  petition, if the court finds that the petition is not proven or 
 57.32  that termination of parental rights is not in the child's best 
 57.33  interests, the court must order the child returned to the care 
 57.34  of the parent unless the court finds approves the responsible 
 57.35  social services determination of compelling reasons why the 
 57.36  child should remain out of the care of the parent.  If the court 
 58.1   orders the child returned to the care of the parent, the court 
 58.2   may order a trial home visit, protective supervision, or 
 58.3   monitoring under section 260C.201. 
 58.4      Sec. 24.  Minnesota Statutes 2002, section 260C.317, 
 58.5   subdivision 3, is amended to read: 
 58.6      Subd. 3.  [ORDER; RETENTION OF JURISDICTION.] (a) A 
 58.7   certified copy of the findings and the order terminating 
 58.8   parental rights, and a summary of the court's information 
 58.9   concerning the child shall be furnished by the court to the 
 58.10  commissioner or the agency to which guardianship is 
 58.11  transferred.  The orders shall be on a document separate from 
 58.12  the findings.  The court shall furnish the individual to whom 
 58.13  guardianship is transferred a copy of the order terminating 
 58.14  parental rights. 
 58.15     (b) The court shall retain jurisdiction in a case where 
 58.16  adoption is the intended permanent placement disposition until 
 58.17  the child's adoption is finalized, the child is 18 years of age, 
 58.18  or the child is otherwise ordered discharged from the 
 58.19  jurisdiction of the court.  The guardian ad litem and counsel 
 58.20  for the child shall continue on the case until an adoption 
 58.21  decree is entered.  A hearing must be held every 90 days 
 58.22  following termination of parental rights for the court to review 
 58.23  progress toward an adoptive placement and the specific 
 58.24  recruitment efforts the agency has taken to find an adoptive 
 58.25  family or other placement living arrangement for the child and 
 58.26  to finalize the adoption or other permanency plan.  
 58.27     (c) When adoption is not the intended disposition, The 
 58.28  responsible social services agency may make a determination of 
 58.29  compelling reasons for a child to be in long-term foster care 
 58.30  when the agency has made exhaustive efforts to recruit, 
 58.31  identify, and place the child in an adoptive home, and if the 
 58.32  child continues in out-of-home placement foster care for 12 at 
 58.33  least 24 months after the court has issued the order terminating 
 58.34  parental rights and at.  Upon approving the agency's 
 58.35  determination of compelling reasons, the court may order the 
 58.36  child placed in long-term foster care.  At least every 12 months 
 59.1   thereafter as long as the child continues in out-of-home 
 59.2   placement, the court shall conduct a permanency review hearing 
 59.3   to determine the future status of the child, including, but not 
 59.4   limited to, whether the child should be continued in out-of-home 
 59.5   placement, should be placed for adoption, or should, because of 
 59.6   the child's special needs and for compelling reasons, be ordered 
 59.7   into long-term out-of-home placement using the review 
 59.8   requirements of section 260C.201, subdivision 11, paragraph (g). 
 59.9      (d) The court shall retain jurisdiction through the child's 
 59.10  minority in a case where long-term foster care is the permanent 
 59.11  disposition whether under paragraph (c) or section 260C.201, 
 59.12  subdivision 11.  All of the review requirements under section 
 59.13  260C.201, subdivision 11, paragraph (g), apply. 
 59.14     Sec. 25.  Minnesota Statutes 2003 Supplement, section 
 59.15  626.556, subdivision 10, is amended to read: 
 59.16     Subd. 10.  [DUTIES OF LOCAL WELFARE AGENCY AND LOCAL LAW 
 59.17  ENFORCEMENT AGENCY UPON RECEIPT OF A REPORT.] (a) If the report 
 59.18  alleges neglect, physical abuse, or sexual abuse by a parent, 
 59.19  guardian, or individual functioning within the family unit as a 
 59.20  person responsible for the child's care, the local welfare 
 59.21  agency shall immediately conduct an assessment including 
 59.22  gathering information on the existence of substance abuse and 
 59.23  offer protective social services for purposes of preventing 
 59.24  further abuses, safeguarding and enhancing the welfare of the 
 59.25  abused or neglected minor, and preserving family life whenever 
 59.26  possible.  If the report alleges a violation of a criminal 
 59.27  statute involving sexual abuse, physical abuse, or neglect or 
 59.28  endangerment, under section 609.378, the local law enforcement 
 59.29  agency and local welfare agency shall coordinate the planning 
 59.30  and execution of their respective investigation and assessment 
 59.31  efforts to avoid a duplication of fact-finding efforts and 
 59.32  multiple interviews.  Each agency shall prepare a separate 
 59.33  report of the results of its investigation.  In cases of alleged 
 59.34  child maltreatment resulting in death, the local agency may rely 
 59.35  on the fact-finding efforts of a law enforcement investigation 
 59.36  to make a determination of whether or not maltreatment 
 60.1   occurred.  When necessary the local welfare agency shall seek 
 60.2   authority to remove the child from the custody of a parent, 
 60.3   guardian, or adult with whom the child is living.  In performing 
 60.4   any of these duties, the local welfare agency shall maintain 
 60.5   appropriate records.  
 60.6      If the assessment indicates there is a potential for abuse 
 60.7   of alcohol or other drugs by the parent, guardian, or person 
 60.8   responsible for the child's care, the local welfare agency shall 
 60.9   conduct a chemical use assessment pursuant to Minnesota Rules, 
 60.10  part 9530.6615.  The local welfare agency shall report the 
 60.11  determination of the chemical use assessment, and the 
 60.12  recommendations and referrals for alcohol and other drug 
 60.13  treatment services to the state authority on alcohol and drug 
 60.14  abuse. 
 60.15     (b) When a local agency receives a report or otherwise has 
 60.16  information indicating that a child who is a client, as defined 
 60.17  in section 245.91, has been the subject of physical abuse, 
 60.18  sexual abuse, or neglect at an agency, facility, or program as 
 60.19  defined in section 245.91, it shall, in addition to its other 
 60.20  duties under this section, immediately inform the ombudsman 
 60.21  established under sections 245.91 to 245.97.  The commissioner 
 60.22  of education shall inform the ombudsman established under 
 60.23  sections 245.91 to 245.97 of reports regarding a child defined 
 60.24  as a client in section 245.91 that maltreatment occurred at a 
 60.25  school as defined in sections 120A.05, subdivisions 9, 11, and 
 60.26  13, and 124D.10. 
 60.27     (c) Authority of the local welfare agency responsible for 
 60.28  assessing the child abuse or neglect report, the agency 
 60.29  responsible for assessing or investigating the report, and of 
 60.30  the local law enforcement agency for investigating the alleged 
 60.31  abuse or neglect includes, but is not limited to, authority to 
 60.32  interview, without parental consent, the alleged victim and any 
 60.33  other minors who currently reside with or who have resided with 
 60.34  the alleged offender.  The interview may take place at school or 
 60.35  at any facility or other place where the alleged victim or other 
 60.36  minors might be found or the child may be transported to, and 
 61.1   the interview conducted at, a place appropriate for the 
 61.2   interview of a child designated by the local welfare agency or 
 61.3   law enforcement agency.  The interview may take place outside 
 61.4   the presence of the alleged offender or parent, legal custodian, 
 61.5   guardian, or school official.  Except as provided in this 
 61.6   paragraph, the parent, legal custodian, or guardian shall be 
 61.7   notified by the responsible local welfare or law enforcement 
 61.8   agency no later than the conclusion of the investigation or 
 61.9   assessment that this interview has occurred.  Notwithstanding 
 61.10  rule 49.02 of the Minnesota Rules of Procedure for Juvenile 
 61.11  Courts, the juvenile court may, after hearing on an ex parte 
 61.12  motion by the local welfare agency, order that, where reasonable 
 61.13  cause exists, the agency withhold notification of this interview 
 61.14  from the parent, legal custodian, or guardian.  If the interview 
 61.15  took place or is to take place on school property, the order 
 61.16  shall specify that school officials may not disclose to the 
 61.17  parent, legal custodian, or guardian the contents of the 
 61.18  notification of intent to interview the child on school 
 61.19  property, as provided under this paragraph, and any other 
 61.20  related information regarding the interview that may be a part 
 61.21  of the child's school record.  A copy of the order shall be sent 
 61.22  by the local welfare or law enforcement agency to the 
 61.23  appropriate school official. 
 61.24     (d) When the local welfare, local law enforcement agency, 
 61.25  or the agency responsible for assessing or investigating a 
 61.26  report of maltreatment determines that an interview should take 
 61.27  place on school property, written notification of intent to 
 61.28  interview the child on school property must be received by 
 61.29  school officials prior to the interview.  The notification shall 
 61.30  include the name of the child to be interviewed, the purpose of 
 61.31  the interview, and a reference to the statutory authority to 
 61.32  conduct an interview on school property.  For interviews 
 61.33  conducted by the local welfare agency, the notification shall be 
 61.34  signed by the chair of the local social services agency or the 
 61.35  chair's designee.  The notification shall be private data on 
 61.36  individuals subject to the provisions of this paragraph.  School 
 62.1   officials may not disclose to the parent, legal custodian, or 
 62.2   guardian the contents of the notification or any other related 
 62.3   information regarding the interview until notified in writing by 
 62.4   the local welfare or law enforcement agency that the 
 62.5   investigation or assessment has been concluded, unless a school 
 62.6   employee or agent is alleged to have maltreated the child.  
 62.7   Until that time, the local welfare or law enforcement agency or 
 62.8   the agency responsible for assessing or investigating a report 
 62.9   of maltreatment shall be solely responsible for any disclosures 
 62.10  regarding the nature of the assessment or investigation.  
 62.11     Except where the alleged offender is believed to be a 
 62.12  school official or employee, the time and place, and manner of 
 62.13  the interview on school premises shall be within the discretion 
 62.14  of school officials, but the local welfare or law enforcement 
 62.15  agency shall have the exclusive authority to determine who may 
 62.16  attend the interview.  The conditions as to time, place, and 
 62.17  manner of the interview set by the school officials shall be 
 62.18  reasonable and the interview shall be conducted not more than 24 
 62.19  hours after the receipt of the notification unless another time 
 62.20  is considered necessary by agreement between the school 
 62.21  officials and the local welfare or law enforcement agency.  
 62.22  Where the school fails to comply with the provisions of this 
 62.23  paragraph, the juvenile court may order the school to comply.  
 62.24  Every effort must be made to reduce the disruption of the 
 62.25  educational program of the child, other students, or school 
 62.26  staff when an interview is conducted on school premises.  
 62.27     (e) Where the alleged offender or a person responsible for 
 62.28  the care of the alleged victim or other minor prevents access to 
 62.29  the victim or other minor by the local welfare agency, the 
 62.30  juvenile court may order the parents, legal custodian, or 
 62.31  guardian to produce the alleged victim or other minor for 
 62.32  questioning by the local welfare agency or the local law 
 62.33  enforcement agency outside the presence of the alleged offender 
 62.34  or any person responsible for the child's care at reasonable 
 62.35  places and times as specified by court order.  
 62.36     (f) Before making an order under paragraph (e), the court 
 63.1   shall issue an order to show cause, either upon its own motion 
 63.2   or upon a verified petition, specifying the basis for the 
 63.3   requested interviews and fixing the time and place of the 
 63.4   hearing.  The order to show cause shall be served personally and 
 63.5   shall be heard in the same manner as provided in other cases in 
 63.6   the juvenile court.  The court shall consider the need for 
 63.7   appointment of a guardian ad litem to protect the best interests 
 63.8   of the child.  If appointed, the guardian ad litem shall be 
 63.9   present at the hearing on the order to show cause.  
 63.10     (g) The commissioner of human services, the ombudsman for 
 63.11  mental health and mental retardation, the local welfare agencies 
 63.12  responsible for investigating reports, the commissioner of 
 63.13  education, and the local law enforcement agencies have the right 
 63.14  to enter facilities as defined in subdivision 2 and to inspect 
 63.15  and copy the facility's records, including medical records, as 
 63.16  part of the investigation.  Notwithstanding the provisions of 
 63.17  chapter 13, they also have the right to inform the facility 
 63.18  under investigation that they are conducting an investigation, 
 63.19  to disclose to the facility the names of the individuals under 
 63.20  investigation for abusing or neglecting a child, and to provide 
 63.21  the facility with a copy of the report and the investigative 
 63.22  findings. 
 63.23     (h) The local welfare agency or the agency responsible for 
 63.24  assessing or investigating the report shall collect available 
 63.25  and relevant information to ascertain whether maltreatment 
 63.26  occurred and whether protective services are needed.  
 63.27  Information collected includes, when relevant, information with 
 63.28  regard to the person reporting the alleged maltreatment, 
 63.29  including the nature of the reporter's relationship to the child 
 63.30  and to the alleged offender, and the basis of the reporter's 
 63.31  knowledge for the report; the child allegedly being maltreated; 
 63.32  the alleged offender; the child's caretaker; and other 
 63.33  collateral sources having relevant information related to the 
 63.34  alleged maltreatment.  The local welfare agency or the agency 
 63.35  responsible for assessing or investigating the report may make a 
 63.36  determination of no maltreatment early in an assessment, and 
 64.1   close the case and retain immunity, if the collected information 
 64.2   shows no basis for a full assessment or investigation. 
 64.3      Information relevant to the assessment or investigation 
 64.4   must be asked for, and may include: 
 64.5      (1) the child's sex and age, prior reports of maltreatment, 
 64.6   information relating to developmental functioning, credibility 
 64.7   of the child's statement, and whether the information provided 
 64.8   under this clause is consistent with other information collected 
 64.9   during the course of the assessment or investigation; 
 64.10     (2) the alleged offender's age, a record check for prior 
 64.11  reports of maltreatment, and criminal charges and convictions.  
 64.12  The local welfare agency or the agency responsible for assessing 
 64.13  or investigating the report must provide the alleged offender 
 64.14  with an opportunity to make a statement.  The alleged offender 
 64.15  may submit supporting documentation relevant to the assessment 
 64.16  or investigation; 
 64.17     (3) collateral source information regarding the alleged 
 64.18  maltreatment and care of the child.  Collateral information 
 64.19  includes, when relevant:  (i) a medical examination of the 
 64.20  child; (ii) prior medical records relating to the alleged 
 64.21  maltreatment or the care of the child maintained by any 
 64.22  facility, clinic, or health care professional and an interview 
 64.23  with the treating professionals; and (iii) interviews with the 
 64.24  child's caretakers, including the child's parent, guardian, 
 64.25  foster parent, child care provider, teachers, counselors, family 
 64.26  members, relatives, and other persons who may have knowledge 
 64.27  regarding the alleged maltreatment and the care of the child; 
 64.28  and 
 64.29     (4) information on the existence of domestic abuse and 
 64.30  violence in the home of the child, and substance abuse. 
 64.31     Nothing in this paragraph precludes the local welfare 
 64.32  agency, the local law enforcement agency, or the agency 
 64.33  responsible for assessing or investigating the report from 
 64.34  collecting other relevant information necessary to conduct the 
 64.35  assessment or investigation.  Notwithstanding section 13.384 or 
 64.36  144.335, the local welfare agency has access to medical data and 
 65.1   records for purposes of clause (3).  Notwithstanding the data's 
 65.2   classification in the possession of any other agency, data 
 65.3   acquired by the local welfare agency or the agency responsible 
 65.4   for assessing or investigating the report during the course of 
 65.5   the assessment or investigation are private data on individuals 
 65.6   and must be maintained in accordance with subdivision 11.  Data 
 65.7   of the commissioner of education collected or maintained during 
 65.8   and for the purpose of an investigation of alleged maltreatment 
 65.9   in a school are governed by this section, notwithstanding the 
 65.10  data's classification as educational, licensing, or personnel 
 65.11  data under chapter 13. 
 65.12     In conducting an assessment or investigation involving a 
 65.13  school facility as defined in subdivision 2, paragraph (f), the 
 65.14  commissioner of education shall collect investigative reports 
 65.15  and data that are relevant to a report of maltreatment and are 
 65.16  from local law enforcement and the school facility.  
 65.17     (i) In the initial stages of an assessment or 
 65.18  investigation, the local welfare agency shall conduct a 
 65.19  face-to-face observation of the child reported to be maltreated 
 65.20  and a face-to-face interview of the alleged offender.  At the 
 65.21  initial contact, the local child welfare agency or the agency 
 65.22  responsible for assessing or investigating the report must 
 65.23  inform the alleged offender of the complaints or allegations 
 65.24  made against the individual in a manner consistent with laws 
 65.25  protecting the rights of the person who made the report.  The 
 65.26  interview with the alleged offender may be postponed if it would 
 65.27  jeopardize an active law enforcement investigation. 
 65.28     (j) The local welfare agency shall use a question and 
 65.29  answer interviewing format with questioning as nondirective as 
 65.30  possible to elicit spontaneous responses.  The following 
 65.31  interviewing methods and procedures must be used whenever 
 65.32  possible when collecting information: 
 65.33     (1) audio recordings of all interviews with witnesses and 
 65.34  collateral sources; and 
 65.35     (2) in cases of alleged sexual abuse, audio-video 
 65.36  recordings of each interview with the alleged victim and child 
 66.1   witnesses.  
 66.2      (k) In conducting an assessment or investigation involving 
 66.3   a school facility as defined in subdivision 2, paragraph (f), 
 66.4   the commissioner of education shall collect available and 
 66.5   relevant information and use the procedures in paragraphs (h), 
 66.6   (i), and (j), provided that the commissioner may also base the 
 66.7   assessment or investigation on investigative reports and data 
 66.8   received from the school facility and local law enforcement, to 
 66.9   the extent those investigations satisfy the requirements of 
 66.10  paragraphs (h), (i), and (j). 
 66.11     Sec. 26.  [REVISOR'S INSTRUCTION.] 
 66.12     In the next edition of Minnesota Statutes, the revisor of 
 66.13  statutes shall change "residential facility" to either "foster 
 66.14  care" or "foster care facility," whichever term is appropriate, 
 66.15  in chapter 260C. 
 66.16                             ARTICLE 3 
 66.17                           CHILD WELFARE 
 66.18     Section 1.  Minnesota Statutes 2002, section 626.556, 
 66.19  subdivision 1, is amended to read: 
 66.20     Subdivision 1.  [PUBLIC POLICY.] The legislature hereby 
 66.21  declares that the public policy of this state is to protect 
 66.22  children whose health or welfare may be jeopardized through 
 66.23  physical abuse, neglect, or sexual abuse.  While it is 
 66.24  recognized that most parents want to keep their children safe, 
 66.25  sometimes circumstances or conditions interfere with their 
 66.26  ability to do so.  When this occurs, families are best served by 
 66.27  interventions that engage their protective capacities and 
 66.28  address immediate safety concerns, ongoing risks of child 
 66.29  maltreatment, and threats to family well being.  In furtherance 
 66.30  of this public policy, it is the intent of the legislature under 
 66.31  this section to strengthen the family and make the home, school, 
 66.32  and community safe for children by promoting responsible child 
 66.33  care in all settings; and to provide, when necessary, a safe 
 66.34  temporary or permanent home environment for physically or 
 66.35  sexually abused or neglected children. 
 66.36     In addition, it is the policy of this state to require the 
 67.1   reporting of neglect, physical or sexual abuse of children in 
 67.2   the home, school, and community settings; to provide for the 
 67.3   voluntary reporting of abuse or neglect of children; to require 
 67.4   the a family assessment and, when appropriate, as the preferred 
 67.5   response to reports not alleging substantial child endangerment; 
 67.6   to require an investigation of the reports when the report 
 67.7   alleges substantial child endangerment; and to provide 
 67.8   protective and counseling, family support, and family 
 67.9   preservation services when needed in appropriate cases. 
 67.10     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
 67.11  626.556, subdivision 2, is amended to read: 
 67.12     Subd. 2.  [DEFINITIONS.] As used in this section, the 
 67.13  following terms have the meanings given them unless the specific 
 67.14  content indicates otherwise: 
 67.15     (a) "Family assessment" means a comprehensive assessment of 
 67.16  child safety, risk of subsequent child maltreatment, and family 
 67.17  strengths and needs that is applied to a child maltreatment 
 67.18  report that does not allege substantial child endangerment.  
 67.19  Family assessment does not include a determination as to whether 
 67.20  child maltreatment occurred but does determine the need for 
 67.21  services to address the safety of family members, the risk of 
 67.22  subsequent maltreatment, and threats to family and child well 
 67.23  being. 
 67.24     (b) "Investigation" means fact gathering related to the 
 67.25  current safety of a child and the risk of subsequent 
 67.26  maltreatment that determines whether child maltreatment occurred 
 67.27  and whether child protective services are needed.  An 
 67.28  investigation must be used when reports involve substantial 
 67.29  child endangerment, and for reports of maltreatment in 
 67.30  facilities required to be licensed under chapter 245A or 245B; 
 67.31  under sections 144.50 to 144.58 and 241.021; in a school as 
 67.32  defined in sections 120A.05, subdivisions 9, 11, and 13, and 
 67.33  124D.10; or in a nonlicensed personal care provider association 
 67.34  as defined in sections 256B.04, subdivision 16, and 256B.0625, 
 67.35  subdivision 19a. 
 67.36     (c) "Substantial child endangerment" means a person 
 68.1   responsible for a child's care, a person who has a significant 
 68.2   relationship to the child as defined in section 609.341, or a 
 68.3   person in a position of authority as defined in section 609.341, 
 68.4   who by act or omission commits or attempts to commit an act 
 68.5   against a child under their care that constitutes any of the 
 68.6   following: 
 68.7      (1) egregious harm as defined in section 260C.007, 
 68.8   subdivision 14; 
 68.9      (2) sexual abuse as defined in paragraph (d); 
 68.10     (3) abandonment under section 260C.301, subdivision 2; 
 68.11     (4) neglect as defined in paragraph (f), clause (2), that 
 68.12  substantially endangers the child's physical or mental health, 
 68.13  including a growth delay, which may be referred to as failure to 
 68.14  thrive, that has been diagnosed by a physician and is due to 
 68.15  parental neglect; 
 68.16     (5) murder in the first, second, or third degree under 
 68.17  section 609.185, 609.19, or 609.195; 
 68.18     (6) manslaughter in the first or second degree under 
 68.19  section 609.20 or 609.205; 
 68.20     (7) assault in the first, second, or third degree under 
 68.21  section 609.221, 609.222, or 609.223; 
 68.22     (8) solicitation, inducement, and promotion of prostitution 
 68.23  under section 609.322; 
 68.24     (9) criminal sexual conduct under sections 609.342 to 
 68.25  609.3451; 
 68.26     (10) solicitation of children to engage in sexual conduct 
 68.27  under section 609.352; 
 68.28     (11) malicious punishment or neglect or endangerment of a 
 68.29  child under section 609.377 or 609.378; 
 68.30     (12) use of a minor in sexual performance under section 
 68.31  617.246; or 
 68.32     (13) parental behavior, status, or condition which mandates 
 68.33  that the county attorney file a termination of parental rights 
 68.34  petition under section 260C.301, subdivision 3, paragraph (a). 
 68.35     (d) "Sexual abuse" means the subjection of a child by a 
 68.36  person responsible for the child's care, by a person who has a 
 69.1   significant relationship to the child, as defined in section 
 69.2   609.341, or by a person in a position of authority, as defined 
 69.3   in section 609.341, subdivision 10, to any act which constitutes 
 69.4   a violation of section 609.342 (criminal sexual conduct in the 
 69.5   first degree), 609.343 (criminal sexual conduct in the second 
 69.6   degree), 609.344 (criminal sexual conduct in the third degree), 
 69.7   609.345 (criminal sexual conduct in the fourth degree), or 
 69.8   609.3451 (criminal sexual conduct in the fifth degree).  Sexual 
 69.9   abuse also includes any act which involves a minor which 
 69.10  constitutes a violation of prostitution offenses under sections 
 69.11  609.321 to 609.324 or 617.246.  Sexual abuse includes threatened 
 69.12  sexual abuse.  
 69.13     (b) (e) "Person responsible for the child's care" means (1) 
 69.14  an individual functioning within the family unit and having 
 69.15  responsibilities for the care of the child such as a parent, 
 69.16  guardian, or other person having similar care responsibilities, 
 69.17  or (2) an individual functioning outside the family unit and 
 69.18  having responsibilities for the care of the child such as a 
 69.19  teacher, school administrator, other school employees or agents, 
 69.20  or other lawful custodian of a child having either full-time or 
 69.21  short-term care responsibilities including, but not limited to, 
 69.22  day care, babysitting whether paid or unpaid, counseling, 
 69.23  teaching, and coaching.  
 69.24     (c) (f) "Neglect" means: 
 69.25     (1) failure by a person responsible for a child's care to 
 69.26  supply a child with necessary food, clothing, shelter, health, 
 69.27  medical, or other care required for the child's physical or 
 69.28  mental health when reasonably able to do so; 
 69.29     (2) failure to protect a child from conditions or actions 
 69.30  that seriously endanger the child's physical or mental health 
 69.31  when reasonably able to do so, including a growth delay, which 
 69.32  may be referred to as a failure to thrive, that has been 
 69.33  diagnosed by a physician and is due to parental neglect; 
 69.34     (3) failure to provide for necessary supervision or child 
 69.35  care arrangements appropriate for a child after considering 
 69.36  factors as the child's age, mental ability, physical condition, 
 70.1   length of absence, or environment, when the child is unable to 
 70.2   care for the child's own basic needs or safety, or the basic 
 70.3   needs or safety of another child in their care; 
 70.4      (4) failure to ensure that the child is educated as defined 
 70.5   in sections 120A.22 and 260C.163, subdivision 11, which does not 
 70.6   include a parent's refusal to provide the parent's child with 
 70.7   sympathomimetic medications, consistent with section 125A.09, 
 70.8   subdivision 3; 
 70.9      (5) nothing in this section shall be construed to mean that 
 70.10  a child is neglected solely because the child's parent, 
 70.11  guardian, or other person responsible for the child's care in 
 70.12  good faith selects and depends upon spiritual means or prayer 
 70.13  for treatment or care of disease or remedial care of the child 
 70.14  in lieu of medical care; except that a parent, guardian, or 
 70.15  caretaker, or a person mandated to report pursuant to 
 70.16  subdivision 3, has a duty to report if a lack of medical care 
 70.17  may cause serious danger to the child's health.  This section 
 70.18  does not impose upon persons, not otherwise legally responsible 
 70.19  for providing a child with necessary food, clothing, shelter, 
 70.20  education, or medical care, a duty to provide that care; 
 70.21     (6) prenatal exposure to a controlled substance, as defined 
 70.22  in section 253B.02, subdivision 2, used by the mother for a 
 70.23  nonmedical purpose, as evidenced by withdrawal symptoms in the 
 70.24  child at birth, results of a toxicology test performed on the 
 70.25  mother at delivery or the child at birth, or medical effects or 
 70.26  developmental delays during the child's first year of life that 
 70.27  medically indicate prenatal exposure to a controlled substance; 
 70.28     (7) "medical neglect" as defined in section 260C.007, 
 70.29  subdivision 6, clause (5); 
 70.30     (8) chronic and severe use of alcohol or a controlled 
 70.31  substance by a parent or person responsible for the care of the 
 70.32  child that adversely affects the child's basic needs and safety; 
 70.33  or 
 70.34     (9) emotional harm from a pattern of behavior which 
 70.35  contributes to impaired emotional functioning of the child which 
 70.36  may be demonstrated by a substantial and observable effect in 
 71.1   the child's behavior, emotional response, or cognition that is 
 71.2   not within the normal range for the child's age and stage of 
 71.3   development, with due regard to the child's culture. 
 71.4      (d) (g) "Physical abuse" means any physical injury, mental 
 71.5   injury, or threatened injury, inflicted by a person responsible 
 71.6   for the child's care on a child other than by accidental means, 
 71.7   or any physical or mental injury that cannot reasonably be 
 71.8   explained by the child's history of injuries, or any aversive or 
 71.9   deprivation procedures, or regulated interventions, that have 
 71.10  not been authorized under section 121A.67 or 245.825.  Abuse 
 71.11  does not include reasonable and moderate physical discipline of 
 71.12  a child administered by a parent or legal guardian which does 
 71.13  not result in an injury.  Abuse does not include the use of 
 71.14  reasonable force by a teacher, principal, or school employee as 
 71.15  allowed by section 121A.582.  Actions which are not reasonable 
 71.16  and moderate include, but are not limited to, any of the 
 71.17  following that are done in anger or without regard to the safety 
 71.18  of the child: 
 71.19     (1) throwing, kicking, burning, biting, or cutting a child; 
 71.20     (2) striking a child with a closed fist; 
 71.21     (3) shaking a child under age three; 
 71.22     (4) striking or other actions which result in any 
 71.23  nonaccidental injury to a child under 18 months of age; 
 71.24     (5) unreasonable interference with a child's breathing; 
 71.25     (6) threatening a child with a weapon, as defined in 
 71.26  section 609.02, subdivision 6; 
 71.27     (7) striking a child under age one on the face or head; 
 71.28     (8) purposely giving a child poison, alcohol, or dangerous, 
 71.29  harmful, or controlled substances which were not prescribed for 
 71.30  the child by a practitioner, in order to control or punish the 
 71.31  child; or other substances that substantially affect the child's 
 71.32  behavior, motor coordination, or judgment or that results in 
 71.33  sickness or internal injury, or subjects the child to medical 
 71.34  procedures that would be unnecessary if the child were not 
 71.35  exposed to the substances; 
 71.36     (9) unreasonable physical confinement or restraint not 
 72.1   permitted under section 609.379, including but not limited to 
 72.2   tying, caging, or chaining; or 
 72.3      (10) in a school facility or school zone, an act by a 
 72.4   person responsible for the child's care that is a violation 
 72.5   under section 121A.58. 
 72.6      (e) (h) "Report" means any report received by the local 
 72.7   welfare agency, police department, county sheriff, or agency 
 72.8   responsible for assessing or investigating maltreatment pursuant 
 72.9   to this section. 
 72.10     (f) (i) "Facility" means a licensed or unlicensed day care 
 72.11  facility, residential facility, agency, hospital, sanitarium, or 
 72.12  other facility or institution required to be licensed under 
 72.13  sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 
 72.14  chapter 245B; or a school as defined in sections 120A.05, 
 72.15  subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 
 72.16  personal care provider organization as defined in sections 
 72.17  256B.04, subdivision 16, and 256B.0625, subdivision 19a. 
 72.18     (g) (j) "Operator" means an operator or agency as defined 
 72.19  in section 245A.02.  
 72.20     (h) (k) "Commissioner" means the commissioner of human 
 72.21  services. 
 72.22     (i) "Assessment" includes authority to interview the child, 
 72.23  the person or persons responsible for the child's care, the 
 72.24  alleged perpetrator, and any other person with knowledge of the 
 72.25  abuse or neglect for the purpose of gathering the facts, 
 72.26  assessing the risk to the child, and formulating a plan.  
 72.27     (j) (l) "Practice of social services," for the purposes of 
 72.28  subdivision 3, includes but is not limited to employee 
 72.29  assistance counseling and the provision of guardian ad litem and 
 72.30  parenting time expeditor services.  
 72.31     (k) (m) "Mental injury" means an injury to the 
 72.32  psychological capacity or emotional stability of a child as 
 72.33  evidenced by an observable or substantial impairment in the 
 72.34  child's ability to function within a normal range of performance 
 72.35  and behavior with due regard to the child's culture. 
 72.36     (l) (n) "Threatened injury" means a statement, overt act, 
 73.1   condition, or status that represents a substantial risk of 
 73.2   physical or sexual abuse or mental injury.  Threatened injury 
 73.3   includes, but is not limited to, exposing a child to a person 
 73.4   responsible for the child's care, as defined in 
 73.5   paragraph (b) (e), clause (1), who has: 
 73.6      (1) subjected a child to, or failed to protect a child 
 73.7   from, an overt act or condition that constitutes egregious harm, 
 73.8   as defined in section 260C.007, subdivision 14, or a similar law 
 73.9   of another jurisdiction; 
 73.10     (2) been found to be palpably unfit under section 260C.301, 
 73.11  paragraph (b), clause (4), or a similar law of another 
 73.12  jurisdiction; 
 73.13     (3) committed an act that has resulted in an involuntary 
 73.14  termination of parental rights under section 260C.301, or a 
 73.15  similar law of another jurisdiction; or 
 73.16     (4) committed an act that has resulted in the involuntary 
 73.17  transfer of permanent legal and physical custody of a child to a 
 73.18  relative under section 260C.201, subdivision 11, paragraph (d), 
 73.19  clause (1), or a similar law of another jurisdiction. 
 73.20     (m) (o) Persons who conduct assessments or investigations 
 73.21  under this section shall take into account accepted 
 73.22  child-rearing practices of the culture in which a child 
 73.23  participates and accepted teacher discipline practices, which 
 73.24  are not injurious to the child's health, welfare, and safety. 
 73.25     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
 73.26  626.556, subdivision 3, is amended to read: 
 73.27     Subd. 3.  [PERSONS MANDATED TO REPORT.] (a) A person who 
 73.28  knows or has reason to believe a child is being neglected or 
 73.29  physically or sexually abused, as defined in subdivision 2, or 
 73.30  has been neglected or physically or sexually abused within the 
 73.31  preceding three years, shall immediately report the information 
 73.32  to the local welfare agency, agency responsible for assessing or 
 73.33  investigating the report, police department, or the county 
 73.34  sheriff if the person is:  
 73.35     (1) a professional or professional's delegate who is 
 73.36  engaged in the practice of the healing arts, social services, 
 74.1   hospital administration, psychological or psychiatric treatment, 
 74.2   child care, education, or law enforcement; or 
 74.3      (2) employed as a member of the clergy and received the 
 74.4   information while engaged in ministerial duties, provided that a 
 74.5   member of the clergy is not required by this subdivision to 
 74.6   report information that is otherwise privileged under section 
 74.7   595.02, subdivision 1, paragraph (c).  
 74.8      The police department or the county sheriff, upon receiving 
 74.9   a report, shall immediately notify the local welfare agency or 
 74.10  agency responsible for assessing or investigating the report, 
 74.11  orally and in writing.  The local welfare agency, or agency 
 74.12  responsible for assessing or investigating the report, upon 
 74.13  receiving a report, shall immediately notify the local police 
 74.14  department or the county sheriff orally and in writing.  The 
 74.15  county sheriff and the head of every local welfare agency, 
 74.16  agency responsible for assessing or investigating reports, and 
 74.17  police department shall each designate a person within their 
 74.18  agency, department, or office who is responsible for ensuring 
 74.19  that the notification duties of this paragraph and paragraph (b) 
 74.20  are carried out.  Nothing in this subdivision shall be construed 
 74.21  to require more than one report from any institution, facility, 
 74.22  school, or agency. 
 74.23     (b) Any person may voluntarily report to the local welfare 
 74.24  agency, agency responsible for assessing or investigating the 
 74.25  report, police department, or the county sheriff if the person 
 74.26  knows, has reason to believe, or suspects a child is being or 
 74.27  has been neglected or subjected to physical or sexual abuse.  
 74.28  The police department or the county sheriff, upon receiving a 
 74.29  report, shall immediately notify the local welfare agency or 
 74.30  agency responsible for assessing or investigating the report, 
 74.31  orally and in writing.  The local welfare agency or agency 
 74.32  responsible for assessing or investigating the report, upon 
 74.33  receiving a report, shall immediately notify the local police 
 74.34  department or the county sheriff orally and in writing. 
 74.35     (c) A person mandated to report physical or sexual child 
 74.36  abuse or neglect occurring within a licensed facility shall 
 75.1   report the information to the agency responsible for licensing 
 75.2   the facility under sections 144.50 to 144.58; 241.021; 245A.01 
 75.3   to 245A.16; or chapter 245B; or a nonlicensed personal care 
 75.4   provider organization as defined in sections 256B.04, 
 75.5   subdivision 16; and 256B.0625, subdivision 19.  A health or 
 75.6   corrections agency receiving a report may request the local 
 75.7   welfare agency to provide assistance pursuant to subdivisions 
 75.8   10, 10a, and 10b.  A board or other entity whose licensees 
 75.9   perform work within a school facility, upon receiving a 
 75.10  complaint of alleged maltreatment, shall provide information 
 75.11  about the circumstances of the alleged maltreatment to the 
 75.12  commissioner of education.  Section 13.03, subdivision 4, 
 75.13  applies to data received by the commissioner of education from a 
 75.14  licensing entity.  
 75.15     (d) Any person mandated to report shall receive a summary 
 75.16  of the disposition of a family assessment or investigation 
 75.17  related to any report made by that reporter, including whether 
 75.18  the case has been opened for child protection or other services, 
 75.19  or if a referral has been made to a community organization, 
 75.20  unless release would be detrimental to the best interests of the 
 75.21  child.  Any person who is not mandated to report shall, upon 
 75.22  request to the local welfare agency, receive a concise summary 
 75.23  of the disposition of any report made by that reporter, unless 
 75.24  release would be detrimental to the best interests of the child. 
 75.25     (e) For purposes of this subdivision, "immediately" means 
 75.26  as soon as possible but in no event longer than 24 hours. 
 75.27     Sec. 4.  Minnesota Statutes 2002, section 626.556, is 
 75.28  amended by adding a subdivision to read: 
 75.29     Subd. 3d.  [AUTHORITY TO INTERVIEW.] The agency responsible 
 75.30  for assessing or investigating reports of child maltreatment has 
 75.31  the authority to interview the child, the person or persons 
 75.32  responsible for the child's care, the alleged perpetrator, and 
 75.33  any other person with knowledge of the abuse or neglect for the 
 75.34  purpose of gathering the facts, assessing safety and risk to the 
 75.35  child, and formulating a plan. 
 75.36     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
 76.1   626.556, subdivision 10, is amended to read: 
 76.2      Subd. 10.  [DUTIES OF LOCAL WELFARE AGENCY AND LOCAL LAW 
 76.3   ENFORCEMENT AGENCY UPON RECEIPT OF A REPORT.] (a) Upon receipt 
 76.4   of a report, the local welfare agency shall determine whether to 
 76.5   conduct a family assessment or an investigation as appropriate 
 76.6   to prevent or provide a remedy for child maltreatment.  The 
 76.7   local welfare agency: 
 76.8      (1) shall conduct an investigation on reports involving 
 76.9   substantial child endangerment; 
 76.10     (2) shall begin an immediate investigation if, at any time 
 76.11  when it is using a family assessment response, it determines 
 76.12  that there is reason to believe that substantial child 
 76.13  endangerment or a serious threat to the child's safety exists; 
 76.14     (3) may conduct a family assessment for reports that do not 
 76.15  allege substantial child endangerment.  In determining that a 
 76.16  family assessment is appropriate, the local welfare agency may 
 76.17  consider issues of child safety, parental cooperation, and the 
 76.18  need for an immediate response; and 
 76.19     (4) may conduct a family assessment on a report that was 
 76.20  initially screened and assigned for an investigation.  In 
 76.21  determining that a complete investigation is not required, the 
 76.22  local welfare agency must document the reason for terminating 
 76.23  the investigation and notify the local law enforcement agency if 
 76.24  the local law enforcement agency is conducting a joint 
 76.25  investigation. 
 76.26     If the report alleges neglect, physical abuse, or sexual 
 76.27  abuse by a parent, guardian, or individual functioning within 
 76.28  the family unit as a person responsible for the child's care, 
 76.29  the local welfare agency shall immediately conduct an a family 
 76.30  assessment including gathering or investigation as identified in 
 76.31  clauses (1) to (4).  In conducting a family assessment or 
 76.32  investigation, the local welfare agency shall gather information 
 76.33  on the existence of substance abuse and domestic violence and 
 76.34  offer protective social services for purposes of preventing 
 76.35  further abuses future child maltreatment, safeguarding and 
 76.36  enhancing the welfare of the abused or neglected minor, 
 77.1   and supporting and preserving family life whenever possible.  If 
 77.2   the report alleges a violation of a criminal statute involving 
 77.3   sexual abuse, physical abuse, or neglect or endangerment, under 
 77.4   section 609.378, the local law enforcement agency and local 
 77.5   welfare agency shall coordinate the planning and execution of 
 77.6   their respective investigation and assessment efforts to avoid a 
 77.7   duplication of fact-finding efforts and multiple interviews.  
 77.8   Each agency shall prepare a separate report of the results of 
 77.9   its investigation.  In cases of alleged child maltreatment 
 77.10  resulting in death, the local agency may rely on the 
 77.11  fact-finding efforts of a law enforcement investigation to make 
 77.12  a determination of whether or not maltreatment occurred.  When 
 77.13  necessary the local welfare agency shall seek authority to 
 77.14  remove the child from the custody of a parent, guardian, or 
 77.15  adult with whom the child is living.  In performing any of these 
 77.16  duties, the local welfare agency shall maintain appropriate 
 77.17  records.  
 77.18     If the family assessment or investigation indicates there 
 77.19  is a potential for abuse of alcohol or other drugs by the 
 77.20  parent, guardian, or person responsible for the child's care, 
 77.21  the local welfare agency shall conduct a chemical use assessment 
 77.22  pursuant to Minnesota Rules, part 9530.6615.  The local welfare 
 77.23  agency shall report the determination of the chemical use 
 77.24  assessment, and the recommendations and referrals for alcohol 
 77.25  and other drug treatment services to the state authority on 
 77.26  alcohol and drug abuse. 
 77.27     (b) When a local agency receives a report or otherwise has 
 77.28  information indicating that a child who is a client, as defined 
 77.29  in section 245.91, has been the subject of physical abuse, 
 77.30  sexual abuse, or neglect at an agency, facility, or program as 
 77.31  defined in section 245.91, it shall, in addition to its other 
 77.32  duties under this section, immediately inform the ombudsman 
 77.33  established under sections 245.91 to 245.97.  The commissioner 
 77.34  of education shall inform the ombudsman established under 
 77.35  sections 245.91 to 245.97 of reports regarding a child defined 
 77.36  as a client in section 245.91 that maltreatment occurred at a 
 78.1   school as defined in sections 120A.05, subdivisions 9, 11, and 
 78.2   13, and 124D.10. 
 78.3      (c) Authority of the local welfare agency responsible for 
 78.4   assessing or investigating the child abuse or neglect report, 
 78.5   the agency responsible for assessing or investigating the 
 78.6   report, and of the local law enforcement agency for 
 78.7   investigating the alleged abuse or neglect includes, but is not 
 78.8   limited to, authority to interview, without parental consent, 
 78.9   the alleged victim and any other minors who currently reside 
 78.10  with or who have resided with the alleged offender.  The 
 78.11  interview may take place at school or at any facility or other 
 78.12  place where the alleged victim or other minors might be found or 
 78.13  the child may be transported to, and the interview conducted at, 
 78.14  a place appropriate for the interview of a child designated by 
 78.15  the local welfare agency or law enforcement agency.  The 
 78.16  interview may take place outside the presence of the alleged 
 78.17  offender or parent, legal custodian, guardian, or school 
 78.18  official.  For family assessments, it is the preferred practice 
 78.19  to request a parent or guardian's permission to interview the 
 78.20  child prior to conducting the child interview, unless doing so 
 78.21  would compromise the safety assessment.  Except as provided in 
 78.22  this paragraph, the parent, legal custodian, or guardian shall 
 78.23  be notified by the responsible local welfare or law enforcement 
 78.24  agency no later than the conclusion of the investigation or 
 78.25  assessment that this interview has occurred.  Notwithstanding 
 78.26  rule 49.02 of the Minnesota Rules of Procedure for Juvenile 
 78.27  Courts, the juvenile court may, after hearing on an ex parte 
 78.28  motion by the local welfare agency, order that, where reasonable 
 78.29  cause exists, the agency withhold notification of this interview 
 78.30  from the parent, legal custodian, or guardian.  If the interview 
 78.31  took place or is to take place on school property, the order 
 78.32  shall specify that school officials may not disclose to the 
 78.33  parent, legal custodian, or guardian the contents of the 
 78.34  notification of intent to interview the child on school 
 78.35  property, as provided under this paragraph, and any other 
 78.36  related information regarding the interview that may be a part 
 79.1   of the child's school record.  A copy of the order shall be sent 
 79.2   by the local welfare or law enforcement agency to the 
 79.3   appropriate school official. 
 79.4      (d) When the local welfare, local law enforcement agency, 
 79.5   or the agency responsible for assessing or investigating a 
 79.6   report of maltreatment determines that an interview should take 
 79.7   place on school property, written notification of intent to 
 79.8   interview the child on school property must be received by 
 79.9   school officials prior to the interview.  The notification shall 
 79.10  include the name of the child to be interviewed, the purpose of 
 79.11  the interview, and a reference to the statutory authority to 
 79.12  conduct an interview on school property.  For interviews 
 79.13  conducted by the local welfare agency, the notification shall be 
 79.14  signed by the chair of the local social services agency or the 
 79.15  chair's designee.  The notification shall be private data on 
 79.16  individuals subject to the provisions of this paragraph.  School 
 79.17  officials may not disclose to the parent, legal custodian, or 
 79.18  guardian the contents of the notification or any other related 
 79.19  information regarding the interview until notified in writing by 
 79.20  the local welfare or law enforcement agency that the 
 79.21  investigation or assessment has been concluded, unless a school 
 79.22  employee or agent is alleged to have maltreated the child.  
 79.23  Until that time, the local welfare or law enforcement agency or 
 79.24  the agency responsible for assessing or investigating a report 
 79.25  of maltreatment shall be solely responsible for any disclosures 
 79.26  regarding the nature of the assessment or investigation.  
 79.27     Except where the alleged offender is believed to be a 
 79.28  school official or employee, the time and place, and manner of 
 79.29  the interview on school premises shall be within the discretion 
 79.30  of school officials, but the local welfare or law enforcement 
 79.31  agency shall have the exclusive authority to determine who may 
 79.32  attend the interview.  The conditions as to time, place, and 
 79.33  manner of the interview set by the school officials shall be 
 79.34  reasonable and the interview shall be conducted not more than 24 
 79.35  hours after the receipt of the notification unless another time 
 79.36  is considered necessary by agreement between the school 
 80.1   officials and the local welfare or law enforcement agency.  
 80.2   Where the school fails to comply with the provisions of this 
 80.3   paragraph, the juvenile court may order the school to comply.  
 80.4   Every effort must be made to reduce the disruption of the 
 80.5   educational program of the child, other students, or school 
 80.6   staff when an interview is conducted on school premises.  
 80.7      (e) Where the alleged offender or a person responsible for 
 80.8   the care of the alleged victim or other minor prevents access to 
 80.9   the victim or other minor by the local welfare agency, the 
 80.10  juvenile court may order the parents, legal custodian, or 
 80.11  guardian to produce the alleged victim or other minor for 
 80.12  questioning by the local welfare agency or the local law 
 80.13  enforcement agency outside the presence of the alleged offender 
 80.14  or any person responsible for the child's care at reasonable 
 80.15  places and times as specified by court order.  
 80.16     (f) Before making an order under paragraph (e), the court 
 80.17  shall issue an order to show cause, either upon its own motion 
 80.18  or upon a verified petition, specifying the basis for the 
 80.19  requested interviews and fixing the time and place of the 
 80.20  hearing.  The order to show cause shall be served personally and 
 80.21  shall be heard in the same manner as provided in other cases in 
 80.22  the juvenile court.  The court shall consider the need for 
 80.23  appointment of a guardian ad litem to protect the best interests 
 80.24  of the child.  If appointed, the guardian ad litem shall be 
 80.25  present at the hearing on the order to show cause.  
 80.26     (g) The commissioner of human services, the ombudsman for 
 80.27  mental health and mental retardation, the local welfare agencies 
 80.28  responsible for investigating reports, the commissioner of 
 80.29  education, and the local law enforcement agencies have the right 
 80.30  to enter facilities as defined in subdivision 2 and to inspect 
 80.31  and copy the facility's records, including medical records, as 
 80.32  part of the investigation.  Notwithstanding the provisions of 
 80.33  chapter 13, they also have the right to inform the facility 
 80.34  under investigation that they are conducting an investigation, 
 80.35  to disclose to the facility the names of the individuals under 
 80.36  investigation for abusing or neglecting a child, and to provide 
 81.1   the facility with a copy of the report and the investigative 
 81.2   findings. 
 81.3      (h) The local welfare agency or the agency responsible for 
 81.4   assessing or conducting a family assessment shall collect 
 81.5   available and relevant information to determine child safety, 
 81.6   risk of subsequent child maltreatment, and family strengths and 
 81.7   needs.  The local welfare agency or the agency responsible for 
 81.8   investigating the report shall collect available and relevant 
 81.9   information to ascertain whether maltreatment occurred and 
 81.10  whether protective services are needed.  Information collected 
 81.11  includes, when relevant, information with regard to the person 
 81.12  reporting the alleged maltreatment, including the nature of the 
 81.13  reporter's relationship to the child and to the alleged 
 81.14  offender, and the basis of the reporter's knowledge for the 
 81.15  report; the child allegedly being maltreated; the alleged 
 81.16  offender; the child's caretaker; and other collateral sources 
 81.17  having relevant information related to the alleged 
 81.18  maltreatment.  The local welfare agency or the agency 
 81.19  responsible for assessing or investigating the report may make a 
 81.20  determination of no maltreatment early in an assessment, and 
 81.21  close the case and retain immunity, if the collected information 
 81.22  shows no basis for a full assessment or investigation. 
 81.23     Information relevant to the assessment or investigation 
 81.24  must be asked for, and may include: 
 81.25     (1) the child's sex and age, prior reports of maltreatment, 
 81.26  information relating to developmental functioning, credibility 
 81.27  of the child's statement, and whether the information provided 
 81.28  under this clause is consistent with other information collected 
 81.29  during the course of the assessment or investigation; 
 81.30     (2) the alleged offender's age, a record check for prior 
 81.31  reports of maltreatment, and criminal charges and convictions.  
 81.32  The local welfare agency or the agency responsible for assessing 
 81.33  or investigating the report must provide the alleged offender 
 81.34  with an opportunity to make a statement.  The alleged offender 
 81.35  may submit supporting documentation relevant to the assessment 
 81.36  or investigation; 
 82.1      (3) collateral source information regarding the alleged 
 82.2   maltreatment and care of the child.  Collateral information 
 82.3   includes, when relevant:  (i) a medical examination of the 
 82.4   child; (ii) prior medical records relating to the alleged 
 82.5   maltreatment or the care of the child maintained by any 
 82.6   facility, clinic, or health care professional and an interview 
 82.7   with the treating professionals; and (iii) interviews with the 
 82.8   child's caretakers, including the child's parent, guardian, 
 82.9   foster parent, child care provider, teachers, counselors, family 
 82.10  members, relatives, and other persons who may have knowledge 
 82.11  regarding the alleged maltreatment and the care of the child; 
 82.12  and 
 82.13     (4) information on the existence of domestic abuse and 
 82.14  violence in the home of the child, and substance abuse. 
 82.15     Nothing in this paragraph precludes the local welfare 
 82.16  agency, the local law enforcement agency, or the agency 
 82.17  responsible for assessing or investigating the report from 
 82.18  collecting other relevant information necessary to conduct the 
 82.19  assessment or investigation.  Notwithstanding section 13.384 or 
 82.20  144.335, the local welfare agency has access to medical data and 
 82.21  records for purposes of clause (3).  Notwithstanding the data's 
 82.22  classification in the possession of any other agency, data 
 82.23  acquired by the local welfare agency or the agency responsible 
 82.24  for assessing or investigating the report during the course of 
 82.25  the assessment or investigation are private data on individuals 
 82.26  and must be maintained in accordance with subdivision 11.  Data 
 82.27  of the commissioner of education collected or maintained during 
 82.28  and for the purpose of an investigation of alleged maltreatment 
 82.29  in a school are governed by this section, notwithstanding the 
 82.30  data's classification as educational, licensing, or personnel 
 82.31  data under chapter 13. 
 82.32     In conducting an assessment or investigation involving a 
 82.33  school facility as defined in subdivision 2, paragraph (f) (i), 
 82.34  the commissioner of education shall collect investigative 
 82.35  reports and data that are relevant to a report of maltreatment 
 82.36  and are from local law enforcement and the school facility.  
 83.1      (i) In the initial stages of an assessment or 
 83.2   investigation, the local welfare agency shall conduct a 
 83.3   face-to-face observation of the child reported to be maltreated 
 83.4   and a face-to-face interview of the alleged offender.  At the 
 83.5   initial contact, the local child welfare agency or the agency 
 83.6   responsible for assessing or investigating the report must 
 83.7   inform the alleged offender of the complaints or allegations 
 83.8   made against the individual in a manner consistent with laws 
 83.9   protecting the rights of the person who made the report.  The 
 83.10  interview with the alleged offender may be postponed if it would 
 83.11  jeopardize an active law enforcement investigation. 
 83.12     (j) When conducting an investigation, the local welfare 
 83.13  agency shall use a question and answer interviewing format with 
 83.14  questioning as nondirective as possible to elicit spontaneous 
 83.15  responses.  For investigations only, the following interviewing 
 83.16  methods and procedures must be used whenever possible when 
 83.17  collecting information: 
 83.18     (1) audio recordings of all interviews with witnesses and 
 83.19  collateral sources; and 
 83.20     (2) in cases of alleged sexual abuse, audio-video 
 83.21  recordings of each interview with the alleged victim and child 
 83.22  witnesses.  
 83.23     (k) In conducting an assessment or investigation involving 
 83.24  a school facility as defined in subdivision 2, 
 83.25  paragraph (f) (i), the commissioner of education shall collect 
 83.26  available and relevant information and use the procedures in 
 83.27  paragraphs (h), (i), (k), and (j) subdivision 3d, provided that 
 83.28  the commissioner may also base the assessment or investigation 
 83.29  on investigative reports and data received from the school 
 83.30  facility and local law enforcement, to the extent those 
 83.31  investigations satisfy the requirements of 
 83.32  paragraphs (h), (i), (k), and (j) subdivision 3d. 
 83.33     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
 83.34  626.556, subdivision 10b, is amended to read: 
 83.35     Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN 
 83.36  FACILITY.] (a) This section applies to the commissioners of 
 84.1   human services, health, and education.  The commissioner of the 
 84.2   agency responsible for assessing or investigating the report 
 84.3   shall immediately assess or investigate if the report alleges 
 84.4   that: 
 84.5      (1) a child who is in the care of a facility as defined in 
 84.6   subdivision 2 is neglected, physically abused, sexually abused, 
 84.7   or is the victim of maltreatment in a facility by an individual 
 84.8   in that facility, or has been so neglected or abused, or been 
 84.9   the victim of maltreatment in a facility by an individual in 
 84.10  that facility within the three years preceding the report; or 
 84.11     (2) a child was neglected, physically abused, sexually 
 84.12  abused, or is the victim of maltreatment in a facility by an 
 84.13  individual in a facility defined in subdivision 2, while in the 
 84.14  care of that facility within the three years preceding the 
 84.15  report.  
 84.16     The commissioner of the agency responsible for assessing or 
 84.17  investigating the report shall arrange for the transmittal to 
 84.18  the commissioner of reports received by local agencies and may 
 84.19  delegate to a local welfare agency the duty to investigate 
 84.20  reports.  In conducting an investigation under this section, the 
 84.21  commissioner has the powers and duties specified for local 
 84.22  welfare agencies under this section.  The commissioner of the 
 84.23  agency responsible for assessing or investigating the report or 
 84.24  local welfare agency may interview any children who are or have 
 84.25  been in the care of a facility under investigation and their 
 84.26  parents, guardians, or legal custodians. 
 84.27     (b) Prior to any interview, the commissioner of the agency 
 84.28  responsible for assessing or investigating the report or local 
 84.29  welfare agency shall notify the parent, guardian, or legal 
 84.30  custodian of a child who will be interviewed in the manner 
 84.31  provided for in subdivision 10d, paragraph (a).  If reasonable 
 84.32  efforts to reach the parent, guardian, or legal custodian of a 
 84.33  child in an out-of-home placement have failed, the child may be 
 84.34  interviewed if there is reason to believe the interview is 
 84.35  necessary to protect the child or other children in the 
 84.36  facility.  The commissioner of the agency responsible for 
 85.1   assessing or investigating the report or local agency must 
 85.2   provide the information required in this subdivision to the 
 85.3   parent, guardian, or legal custodian of a child interviewed 
 85.4   without parental notification as soon as possible after the 
 85.5   interview.  When the investigation is completed, any parent, 
 85.6   guardian, or legal custodian notified under this subdivision 
 85.7   shall receive the written memorandum provided for in subdivision 
 85.8   10d, paragraph (c). 
 85.9      (c) In conducting investigations under this subdivision the 
 85.10  commissioner or local welfare agency shall obtain access to 
 85.11  information consistent with subdivision 10, paragraphs (h), (i), 
 85.12  and (j).  In conducting assessments or investigations under this 
 85.13  subdivision, the commissioner of education shall obtain access 
 85.14  to reports and investigative data that are relevant to a report 
 85.15  of maltreatment and are in the possession of a school facility 
 85.16  as defined in subdivision 2, paragraph (f) (i), notwithstanding 
 85.17  the classification of the data as educational or personnel data 
 85.18  under chapter 13.  This includes, but is not limited to, school 
 85.19  investigative reports, information concerning the conduct of 
 85.20  school personnel alleged to have committed maltreatment of 
 85.21  students, information about witnesses, and any protective or 
 85.22  corrective action taken by the school facility regarding the 
 85.23  school personnel alleged to have committed maltreatment. 
 85.24     (d) The commissioner may request assistance from the local 
 85.25  social services agency. 
 85.26     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
 85.27  626.556, subdivision 10e, is amended to read: 
 85.28     Subd. 10e.  [DETERMINATIONS.] Upon the conclusion of every 
 85.29  assessment or investigation it conducts, (a) After conducting a 
 85.30  family assessment, the local welfare agency shall determine 
 85.31  whether services are needed to address the safety of the child 
 85.32  and other family members, the risk of subsequent maltreatment, 
 85.33  and threats to family and child well being.  
 85.34     (b) After conducting an investigation, the local welfare 
 85.35  agency shall make two determinations:  first, whether 
 85.36  maltreatment has occurred; and second, whether child protective 
 86.1   services are needed.  Upon the conclusion of 
 86.2      (c) If the commissioner of education conducts an assessment 
 86.3   or investigation by, the commissioner of education, the 
 86.4   commissioner shall determine whether maltreatment occurred and 
 86.5   what corrective or protective action was taken by the school 
 86.6   facility.  If a determination is made that maltreatment has 
 86.7   occurred, the commissioner shall report to the employer, the 
 86.8   school board, and any appropriate licensing entity the 
 86.9   determination that maltreatment occurred and what corrective or 
 86.10  protective action was taken by the school facility.  In all 
 86.11  other cases, the commissioner shall inform the school board or 
 86.12  employer that a report was received, the subject of the report, 
 86.13  the date of the initial report, the category of maltreatment 
 86.14  alleged as defined in paragraph (a) (d), the fact that 
 86.15  maltreatment was not determined, and a summary of the specific 
 86.16  reasons for the determination.  
 86.17     (d) When maltreatment is determined in an investigation 
 86.18  involving a facility, the investigating agency shall also 
 86.19  determine whether the facility or individual was responsible, or 
 86.20  whether both the facility and the individual were responsible 
 86.21  for the maltreatment using the mitigating factors in 
 86.22  paragraph (d) (h).  Determinations under this subdivision must 
 86.23  be made based on a preponderance of the evidence and are private 
 86.24  data on individuals or nonpublic data as maintained by the 
 86.25  commissioner of education.  
 86.26     (a) (e) For the purposes of this subdivision, "maltreatment"
 86.27  means any of the following acts or omissions: 
 86.28     (1) physical abuse as defined in subdivision 2, paragraph 
 86.29  (d) (g); 
 86.30     (2) neglect as defined in subdivision 2, paragraph (c) (f); 
 86.31     (3) sexual abuse as defined in subdivision 2, paragraph 
 86.32  (a) (d); 
 86.33     (4) mental injury as defined in subdivision 2, paragraph 
 86.34  (k) (m); or 
 86.35     (5) maltreatment of a child in a facility as defined in 
 86.36  subdivision 2, paragraph (f) (i). 
 87.1      (b) (f) For the purposes of this subdivision, a 
 87.2   determination that child protective services are needed means 
 87.3   that the local welfare agency has documented conditions during 
 87.4   the assessment or investigation sufficient to cause a child 
 87.5   protection worker, as defined in section 626.559, subdivision 1, 
 87.6   to conclude that a child is at significant risk of maltreatment 
 87.7   if protective intervention is not provided and that the 
 87.8   individuals responsible for the child's care have not taken or 
 87.9   are not likely to take actions to protect the child from 
 87.10  maltreatment or risk of maltreatment. 
 87.11     (c) (g) This subdivision does not mean that maltreatment 
 87.12  has occurred solely because the child's parent, guardian, or 
 87.13  other person responsible for the child's care in good faith 
 87.14  selects and depends upon spiritual means or prayer for treatment 
 87.15  or care of disease or remedial care of the child, in lieu of 
 87.16  medical care.  However, if lack of medical care may result in 
 87.17  serious danger to the child's health, the local welfare agency 
 87.18  may ensure that necessary medical services are provided to the 
 87.19  child. 
 87.20     (d) (h) When determining whether the facility or individual 
 87.21  is the responsible party for determined maltreatment in a 
 87.22  facility, the investigating agency shall consider at least the 
 87.23  following mitigating factors: 
 87.24     (1) whether the actions of the facility or the individual 
 87.25  caregivers were according to, and followed the terms of, an 
 87.26  erroneous physician order, prescription, individual care plan, 
 87.27  or directive; however, this is not a mitigating factor when the 
 87.28  facility or caregiver was responsible for the issuance of the 
 87.29  erroneous order, prescription, individual care plan, or 
 87.30  directive or knew or should have known of the errors and took no 
 87.31  reasonable measures to correct the defect before administering 
 87.32  care; 
 87.33     (2) comparative responsibility between the facility, other 
 87.34  caregivers, and requirements placed upon an employee, including 
 87.35  the facility's compliance with related regulatory standards and 
 87.36  the adequacy of facility policies and procedures, facility 
 88.1   training, an individual's participation in the training, the 
 88.2   caregiver's supervision, and facility staffing levels and the 
 88.3   scope of the individual employee's authority and discretion; and 
 88.4      (3) whether the facility or individual followed 
 88.5   professional standards in exercising professional judgment. 
 88.6      (i) Individual counties may implement more detailed 
 88.7   definitions or criteria that indicate which allegations to 
 88.8   investigate, as long as a county's policies are consistent with 
 88.9   the definitions in the statutes and rules and are approved by 
 88.10  the county board.  Each local welfare agency shall periodically 
 88.11  inform mandated reporters under subdivision 3 who work in the 
 88.12  county of the definitions of maltreatment in the statutes and 
 88.13  rules and any additional definitions or criteria that have been 
 88.14  approved by the county board. 
 88.15     Sec. 8.  Minnesota Statutes 2002, section 626.556, 
 88.16  subdivision 10f, is amended to read: 
 88.17     Subd. 10f.  [NOTICE OF DETERMINATIONS.] Within ten working 
 88.18  days of the conclusion of a family assessment, the local welfare 
 88.19  agency shall notify the parent or guardian of the child of the 
 88.20  need for services to address child safety concerns or 
 88.21  significant risk of subsequent child maltreatment.  The local 
 88.22  welfare agency and the family may also jointly agree that family 
 88.23  support and family preservation services are needed.  Within ten 
 88.24  working days of the conclusion of an assessment investigation, 
 88.25  the local welfare agency or agency responsible for assessing or 
 88.26  investigating the report shall notify the parent or guardian of 
 88.27  the child, the person determined to be maltreating the child, 
 88.28  and if applicable, the director of the facility, of the 
 88.29  determination and a summary of the specific reasons for the 
 88.30  determination.  The notice must also include a certification 
 88.31  that the information collection procedures under subdivision 10, 
 88.32  paragraphs (h), (i), and (j), were followed and a notice of the 
 88.33  right of a data subject to obtain access to other private data 
 88.34  on the subject collected, created, or maintained under this 
 88.35  section.  In addition, the notice shall include the length of 
 88.36  time that the records will be kept under subdivision 11c.  The 
 89.1   investigating agency shall notify the parent or guardian of the 
 89.2   child who is the subject of the report, and any person or 
 89.3   facility determined to have maltreated a child, of their appeal 
 89.4   or review rights under this section or section 256.022. 
 89.5      Sec. 9.  Minnesota Statutes 2003 Supplement, section 
 89.6   626.556, subdivision 10i, is amended to read: 
 89.7      Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
 89.8   DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
 89.9   SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] 
 89.10  (a) Administrative reconsideration is not applicable in family 
 89.11  assessments since no determination concerning maltreatment is 
 89.12  made.  For investigations, except as provided under paragraph 
 89.13  (e), an individual or facility that the commissioner of human 
 89.14  services, a local social service agency, or the commissioner of 
 89.15  education determines has maltreated a child, an interested 
 89.16  person acting on behalf of the child, regardless of the 
 89.17  determination, who contests the investigating agency's final 
 89.18  determination regarding maltreatment, may request the 
 89.19  investigating agency to reconsider its final determination 
 89.20  regarding maltreatment.  The request for reconsideration must be 
 89.21  submitted in writing to the investigating agency within 15 
 89.22  calendar days after receipt of notice of the final determination 
 89.23  regarding maltreatment or, if the request is made by an 
 89.24  interested person who is not entitled to notice, within 15 days 
 89.25  after receipt of the notice by the parent or guardian of the 
 89.26  child.  Effective January 1, 2002, an individual who was 
 89.27  determined to have maltreated a child under this section and who 
 89.28  was disqualified on the basis of serious or recurring 
 89.29  maltreatment under sections 245C.14 and 245C.15, may request 
 89.30  reconsideration of the maltreatment determination and the 
 89.31  disqualification.  The request for reconsideration of the 
 89.32  maltreatment determination and the disqualification must be 
 89.33  submitted within 30 calendar days of the individual's receipt of 
 89.34  the notice of disqualification under sections 245C.16 and 
 89.35  245C.17. 
 89.36     (b) Except as provided under paragraphs (e) and (f), if the 
 90.1   investigating agency denies the request or fails to act upon the 
 90.2   request within 15 calendar days after receiving the request for 
 90.3   reconsideration, the person or facility entitled to a fair 
 90.4   hearing under section 256.045 may submit to the commissioner of 
 90.5   human services or the commissioner of education a written 
 90.6   request for a hearing under that section.  Section 256.045 also 
 90.7   governs hearings requested to contest a final determination of 
 90.8   the commissioner of education.  For reports involving 
 90.9   maltreatment of a child in a facility, an interested person 
 90.10  acting on behalf of the child may request a review by the Child 
 90.11  Maltreatment Review Panel under section 256.022 if the 
 90.12  investigating agency denies the request or fails to act upon the 
 90.13  request or if the interested person contests a reconsidered 
 90.14  determination.  The investigating agency shall notify persons 
 90.15  who request reconsideration of their rights under this 
 90.16  paragraph.  The request must be submitted in writing to the 
 90.17  review panel and a copy sent to the investigating agency within 
 90.18  30 calendar days of receipt of notice of a denial of a request 
 90.19  for reconsideration or of a reconsidered determination.  The 
 90.20  request must specifically identify the aspects of the agency 
 90.21  determination with which the person is dissatisfied. 
 90.22     (c) If, as a result of a reconsideration or review, the 
 90.23  investigating agency changes the final determination of 
 90.24  maltreatment, that agency shall notify the parties specified in 
 90.25  subdivisions 10b, 10d, and 10f. 
 90.26     (d) Except as provided under paragraph (f), if an 
 90.27  individual or facility contests the investigating agency's final 
 90.28  determination regarding maltreatment by requesting a fair 
 90.29  hearing under section 256.045, the commissioner of human 
 90.30  services shall assure that the hearing is conducted and a 
 90.31  decision is reached within 90 days of receipt of the request for 
 90.32  a hearing.  The time for action on the decision may be extended 
 90.33  for as many days as the hearing is postponed or the record is 
 90.34  held open for the benefit of either party. 
 90.35     (e) Effective January 1, 2002, if an individual was 
 90.36  disqualified under sections 245C.14 and 245C.15, on the basis of 
 91.1   a determination of maltreatment, which was serious or recurring, 
 91.2   and the individual has requested reconsideration of the 
 91.3   maltreatment determination under paragraph (a) and requested 
 91.4   reconsideration of the disqualification under sections 245C.21 
 91.5   to 245C.27, reconsideration of the maltreatment determination 
 91.6   and reconsideration of the disqualification shall be 
 91.7   consolidated into a single reconsideration.  If reconsideration 
 91.8   of the maltreatment determination is denied or the 
 91.9   disqualification is not set aside or rescinded under sections 
 91.10  245C.21 to 245C.27, the individual may request a fair hearing 
 91.11  under section 256.045.  If an individual requests a fair hearing 
 91.12  on the maltreatment determination and the disqualification, the 
 91.13  scope of the fair hearing shall include both the maltreatment 
 91.14  determination and the disqualification. 
 91.15     (f) Effective January 1, 2002, if a maltreatment 
 91.16  determination or a disqualification based on serious or 
 91.17  recurring maltreatment is the basis for a denial of a license 
 91.18  under section 245A.05 or a licensing sanction under section 
 91.19  245A.07, the license holder has the right to a contested case 
 91.20  hearing under chapter 14 and Minnesota Rules, parts 1400.8510 to 
 91.21  1400.8612 and successor rules.  As provided for under section 
 91.22  245A.08, subdivision 2a, the scope of the contested case hearing 
 91.23  shall include the maltreatment determination, disqualification, 
 91.24  and licensing sanction or denial of a license.  In such cases, a 
 91.25  fair hearing regarding the maltreatment determination shall not 
 91.26  be conducted under paragraph (b).  If the disqualified subject 
 91.27  is an individual other than the license holder and upon whom a 
 91.28  background study must be conducted under chapter 245C, the 
 91.29  hearings of all parties may be consolidated into a single 
 91.30  contested case hearing upon consent of all parties and the 
 91.31  administrative law judge. 
 91.32     (g) For purposes of this subdivision, "interested person 
 91.33  acting on behalf of the child" means a parent or legal guardian; 
 91.34  stepparent; grandparent; guardian ad litem; adult stepbrother, 
 91.35  stepsister, or sibling; or adult aunt or uncle; unless the 
 91.36  person has been determined to be the perpetrator of the 
 92.1   maltreatment. 
 92.2      Sec. 10.  Minnesota Statutes 2002, section 626.556, is 
 92.3   amended by adding a subdivision to read: 
 92.4      Subd. 10l.  [DOCUMENTATION.] When a case is closed that has 
 92.5   been open for services, the local welfare agency shall document 
 92.6   the outcome of the family assessment or investigation, including 
 92.7   a description of services provided and the removal or reduction 
 92.8   of risk to the child, if it existed. 
 92.9      Sec. 11.  Minnesota Statutes 2003 Supplement, section 
 92.10  626.556, subdivision 11, is amended to read: 
 92.11     Subd. 11.  [RECORDS.] (a) Except as provided in paragraph 
 92.12  (b) or (d) and subdivisions 10b, 10d, 10g, and 11b, all records 
 92.13  concerning individuals maintained by a local welfare agency or 
 92.14  agency responsible for assessing or investigating the report 
 92.15  under this section, including any written reports filed under 
 92.16  subdivision 7, shall be private data on individuals, except 
 92.17  insofar as copies of reports are required by subdivision 7 to be 
 92.18  sent to the local police department or the county sheriff.  All 
 92.19  records concerning determinations of maltreatment by a facility 
 92.20  are nonpublic data as maintained by the Department of Education, 
 92.21  except insofar as copies of reports are required by subdivision 
 92.22  7 to be sent to the local police department or the county 
 92.23  sheriff.  Reports maintained by any police department or the 
 92.24  county sheriff shall be private data on individuals except the 
 92.25  reports shall be made available to the investigating, 
 92.26  petitioning, or prosecuting authority, including county medical 
 92.27  examiners or county coroners.  Section 13.82, subdivisions 8, 9, 
 92.28  and 14, apply to law enforcement data other than the reports.  
 92.29  The local social services agency or agency responsible for 
 92.30  assessing or investigating the report shall make available to 
 92.31  the investigating, petitioning, or prosecuting authority, 
 92.32  including county medical examiners or county coroners or their 
 92.33  professional delegates, any records which contain information 
 92.34  relating to a specific incident of neglect or abuse which is 
 92.35  under investigation, petition, or prosecution and information 
 92.36  relating to any prior incidents of neglect or abuse involving 
 93.1   any of the same persons.  The records shall be collected and 
 93.2   maintained in accordance with the provisions of chapter 13.  In 
 93.3   conducting investigations and assessments pursuant to this 
 93.4   section, the notice required by section 13.04, subdivision 2, 
 93.5   need not be provided to a minor under the age of ten who is the 
 93.6   alleged victim of abuse or neglect.  An individual subject of a 
 93.7   record shall have access to the record in accordance with those 
 93.8   sections, except that the name of the reporter shall be 
 93.9   confidential while the report is under assessment or 
 93.10  investigation except as otherwise permitted by this 
 93.11  subdivision.  Any person conducting an investigation or 
 93.12  assessment under this section who intentionally discloses the 
 93.13  identity of a reporter prior to the completion of the 
 93.14  investigation or assessment is guilty of a misdemeanor.  After 
 93.15  the assessment or investigation is completed, the name of the 
 93.16  reporter shall be confidential.  The subject of the report may 
 93.17  compel disclosure of the name of the reporter only with the 
 93.18  consent of the reporter or upon a written finding by the court 
 93.19  that the report was false and that there is evidence that the 
 93.20  report was made in bad faith.  This subdivision does not alter 
 93.21  disclosure responsibilities or obligations under the Rules of 
 93.22  Criminal Procedure. 
 93.23     (b) Upon request of the legislative auditor, data on 
 93.24  individuals maintained under this section must be released to 
 93.25  the legislative auditor in order for the auditor to fulfill the 
 93.26  auditor's duties under section 3.971.  The auditor shall 
 93.27  maintain the data in accordance with chapter 13.  
 93.28     (c) The commissioner of education must be provided with all 
 93.29  requested data that are relevant to a report of maltreatment and 
 93.30  are in possession of a school facility as defined in subdivision 
 93.31  2, paragraph (f) (i), when the data is requested pursuant to an 
 93.32  assessment or investigation of a maltreatment report of a 
 93.33  student in a school.  If the commissioner of education makes a 
 93.34  determination of maltreatment involving an individual performing 
 93.35  work within a school facility who is licensed by a board or 
 93.36  other agency, the commissioner shall provide necessary and 
 94.1   relevant information to the licensing entity to enable the 
 94.2   entity to fulfill its statutory duties.  Notwithstanding section 
 94.3   13.03, subdivision 4, data received by a licensing entity under 
 94.4   this paragraph are governed by section 13.41 or other applicable 
 94.5   law governing data of the receiving entity, except that this 
 94.6   section applies to the classification of and access to data on 
 94.7   the reporter of the maltreatment. 
 94.8      (d) The investigating agency shall exchange not public data 
 94.9   with the Child Maltreatment Review Panel under section 256.022 
 94.10  if the data are pertinent and necessary for a review requested 
 94.11  under section 256.022.  Upon completion of the review, the not 
 94.12  public data received by the review panel must be returned to the 
 94.13  investigating agency. 
 94.14     Sec. 12.  Minnesota Statutes 2002, section 626.556, 
 94.15  subdivision 11c, is amended to read: 
 94.16     Subd. 11c.  [WELFARE, COURT SERVICES AGENCY, AND SCHOOL 
 94.17  RECORDS MAINTAINED.] Notwithstanding sections 138.163 and 
 94.18  138.17, records maintained or records derived from reports of 
 94.19  abuse by local welfare agencies, agencies responsible for 
 94.20  assessing or investigating the report, court services agencies, 
 94.21  or schools under this section shall be destroyed as provided in 
 94.22  paragraphs (a) to (d) by the responsible authority. 
 94.23     (a) If upon For family assessment or cases and cases where 
 94.24  an investigation there is results in no determination of 
 94.25  maltreatment or the need for child protective services, 
 94.26  the assessment or investigation records must be maintained for a 
 94.27  period of four years.  Records under this paragraph may not be 
 94.28  used for employment, background checks, or purposes other than 
 94.29  to assist in future risk and safety assessments. 
 94.30     (b) All records relating to reports which, upon assessment 
 94.31  or investigation, indicate either maltreatment or a need for 
 94.32  child protective services shall be maintained for at least ten 
 94.33  years after the date of the final entry in the case record. 
 94.34     (c) All records regarding a report of maltreatment, 
 94.35  including any notification of intent to interview which was 
 94.36  received by a school under subdivision 10, paragraph (d), shall 
 95.1   be destroyed by the school when ordered to do so by the agency 
 95.2   conducting the assessment or investigation.  The agency shall 
 95.3   order the destruction of the notification when other records 
 95.4   relating to the report under investigation or assessment are 
 95.5   destroyed under this subdivision. 
 95.6      (d) Private or confidential data released to a court 
 95.7   services agency under subdivision 10h must be destroyed by the 
 95.8   court services agency when ordered to do so by the local welfare 
 95.9   agency that released the data.  The local welfare agency or 
 95.10  agency responsible for assessing or investigating the report 
 95.11  shall order destruction of the data when other records relating 
 95.12  to the assessment or investigation are destroyed under this 
 95.13  subdivision. 
 95.14     Sec. 13.  [REPEALER.] 
 95.15     (a) Minnesota Statutes 2002, section 626.5551, subdivisions 
 95.16  1, 2, 3, 4, and 5, are repealed. 
 95.17     (b) Minnesota Rules, part 9560.0220, subpart 6, item B, is 
 95.18  repealed. 
 95.19                             ARTICLE 4 
 95.20                         ECONOMIC SUPPORTS 
 95.21     Section 1.  Minnesota Statutes 2002, section 256D.06, 
 95.22  subdivision 5, is amended to read: 
 95.23     Subd. 5.  [ELIGIBILITY; REQUIREMENTS.] (a) Any applicant, 
 95.24  otherwise eligible for general assistance and possibly eligible 
 95.25  for maintenance benefits from any other source shall (a) (1) 
 95.26  make application for those benefits within 30 days of the 
 95.27  general assistance application; and (b) (2) execute an interim 
 95.28  assistance authorization agreement on a form as directed by the 
 95.29  commissioner.  
 95.30     (b) The commissioner shall review a denial of an 
 95.31  application for other maintenance benefits and may require a 
 95.32  recipient of general assistance to file an appeal of the denial 
 95.33  if appropriate.  If found eligible for benefits from other 
 95.34  sources, and a payment received from another source relates to 
 95.35  the period during which general assistance was also being 
 95.36  received, the recipient shall be required to reimburse the 
 96.1   county agency for the interim assistance paid.  Reimbursement 
 96.2   shall not exceed the amount of general assistance paid during 
 96.3   the time period to which the other maintenance benefits apply 
 96.4   and shall not exceed the state standard applicable to that time 
 96.5   period.  The commissioner shall adopt rules authorizing county 
 96.6   agencies or other client representatives to retain from the 
 96.7   amount recovered under an interim assistance agreement 25 
 96.8   percent plus actual reasonable fees, costs, and disbursements of 
 96.9   appeals and litigation, of providing special assistance to the 
 96.10  recipient in processing the recipient's claim for maintenance 
 96.11  benefits from another source.  The money retained under this 
 96.12  section shall be from the state share of the recovery.  The 
 96.13  commissioner or the county agency may contract with qualified 
 96.14  persons to provide the special assistance.  
 96.15     (c) The commissioner may contract with qualified agencies, 
 96.16  organizations, or persons to provide advocacy and support 
 96.17  services to process claims for federal disability benefits for 
 96.18  recipients of services or benefits supervised by the 
 96.19  commissioner. 
 96.20     (1) For interim assistance recipients, the commissioner may 
 96.21  contract with county agencies or other client representatives to 
 96.22  retain from the amount recovered under an interim assistance 
 96.23  agreement 25 percent plus actual reasonable fees, costs, and 
 96.24  disbursements of appeals and litigation, and for providing 
 96.25  advocacy and support services.  The money retained under this 
 96.26  clause shall be from the state's share of the recovery. 
 96.27     (2) For other recipients, to the extent funds are 
 96.28  available, the commissioner may reimburse client representatives 
 96.29  for actual reasonable fees, costs, and disbursements of appeals 
 96.30  and litigation, and for providing advocacy and support services. 
 96.31     (d) The rules adopted by the commissioner shall include the 
 96.32  may provide methods by which for county agencies shall to 
 96.33  identify, refer, and assist recipients who may be eligible for 
 96.34  benefits under federal programs for the disabled.  This 
 96.35  subdivision does not require repayment of per diem payments made 
 96.36  to shelters for battered women pursuant to section 256D.05, 
 97.1   subdivision 3. 
 97.2      Sec. 2.  Minnesota Statutes 2003 Supplement, section 
 97.3   256J.40, is amended to read: 
 97.4      256J.40 [FAIR HEARINGS.] 
 97.5      Caregivers receiving a notice of intent to sanction or a 
 97.6   notice of adverse action that includes a sanction, reduction in 
 97.7   benefits, suspension of benefits, denial of benefits, or 
 97.8   termination of benefits may request a fair hearing.  A request 
 97.9   for a fair hearing must be submitted in writing to the county 
 97.10  agency or to the commissioner and must be mailed within 30 days 
 97.11  after a participant or former participant receives written 
 97.12  notice of the agency's action or within 90 days when a 
 97.13  participant or former participant shows good cause for not 
 97.14  submitting the request within 30 days.  A former participant who 
 97.15  receives a notice of adverse action due to an overpayment may 
 97.16  appeal the adverse action according to the requirements in this 
 97.17  section.  Issues that may be appealed are: 
 97.18     (1) the amount of the assistance payment; 
 97.19     (2) a suspension, reduction, denial, or termination of 
 97.20  assistance; 
 97.21     (3) the basis for an overpayment, the calculated amount of 
 97.22  an overpayment, and the level of recoupment; 
 97.23     (4) the eligibility for an assistance payment; and 
 97.24     (5) the use of protective or vendor payments under section 
 97.25  256J.39, subdivision 2, clauses (1) to (3). 
 97.26     Except for benefits issued under section 256J.95, a county 
 97.27  agency must not reduce, suspend, or terminate payment when an 
 97.28  aggrieved participant requests a fair hearing prior to the 
 97.29  effective date of the adverse action or within ten days of the 
 97.30  mailing of the notice of adverse action, whichever is later, 
 97.31  unless the participant requests in writing not to receive 
 97.32  continued assistance pending a hearing decision.  An appeal 
 97.33  request cannot extend benefits for the diversionary work program 
 97.34  under section 256J.95 beyond the four-month time limit.  
 97.35  Assistance issued pending a fair hearing is subject to recovery 
 97.36  under section 256J.38 when as a result of the fair hearing 
 98.1   decision the participant is determined ineligible for assistance 
 98.2   or the amount of the assistance received.  A county agency may 
 98.3   increase or reduce an assistance payment while an appeal is 
 98.4   pending when the circumstances of the participant change and are 
 98.5   not related to the issue on appeal.  The commissioner's order is 
 98.6   binding on a county agency.  No additional notice is required to 
 98.7   enforce the commissioner's order. 
 98.8      A county agency shall reimburse appellants for reasonable 
 98.9   and necessary expenses of attendance at the hearing, such as 
 98.10  child care and transportation costs and for the transportation 
 98.11  expenses of the appellant's witnesses and representatives to and 
 98.12  from the hearing.  Reasonable and necessary expenses do not 
 98.13  include legal fees.  Fair hearings must be conducted at a 
 98.14  reasonable time and date by an impartial referee employed by the 
 98.15  department.  The hearing may be conducted by telephone or at a 
 98.16  site that is readily accessible to persons with disabilities. 
 98.17     The appellant may introduce new or additional evidence 
 98.18  relevant to the issues on appeal.  Recommendations of the 
 98.19  appeals referee and decisions of the commissioner must be based 
 98.20  on evidence in the hearing record and are not limited to a 
 98.21  review of the county agency action. 
 98.22     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
 98.23  256J.425, subdivision 7, is amended to read: 
 98.24     Subd. 7.  [STATUS OF DISQUALIFIED PARTICIPANTS.] (a) An 
 98.25  assistance unit that is disqualified under subdivision 6, 
 98.26  paragraph (a), may be approved for MFIP if the participant 
 98.27  complies with MFIP program requirements and demonstrates 
 98.28  compliance for up to one month.  No assistance shall be paid 
 98.29  during this period. 
 98.30     (b) An assistance unit that is disqualified under 
 98.31  subdivision 6, paragraph (a), and that reapplies under paragraph 
 98.32  (a) is subject to sanction under section 256J.46, subdivision 1, 
 98.33  paragraph (c), clause (1) (2), for a first occurrence of 
 98.34  noncompliance.  A subsequent occurrence of noncompliance results 
 98.35  in a permanent disqualification. 
 98.36     (c) If one participant in a two-parent assistance unit 
 99.1   receiving assistance under a hardship extension under 
 99.2   subdivision 3 or 4 is determined to be out of compliance with 
 99.3   the employment and training services requirements under sections 
 99.4   256J.521 to 256J.57, the county shall give the assistance unit 
 99.5   the option of disqualifying the noncompliant participant from 
 99.6   MFIP.  In that case, the assistance unit shall be treated as a 
 99.7   one-parent assistance unit for the purposes of meeting the work 
 99.8   requirements under subdivision 4 and the assistance unit's MFIP 
 99.9   grant shall be calculated using the shared household standard 
 99.10  under section 256J.08, subdivision 82a.  An applicant who is 
 99.11  disqualified from receiving assistance under this paragraph may 
 99.12  reapply under paragraph (a).  If a participant is disqualified 
 99.13  from MFIP under this subdivision a second time, the participant 
 99.14  is permanently disqualified from MFIP. 
 99.15     (d) Prior to a disqualification under this subdivision, a 
 99.16  county agency must review the participant's case to determine if 
 99.17  the employment plan is still appropriate and attempt to meet 
 99.18  with the participant face-to-face.  If a face-to-face meeting is 
 99.19  not conducted, the county agency must send the participant a 
 99.20  notice of adverse action as provided in section 256J.31.  During 
 99.21  the face-to-face meeting, the county agency must: 
 99.22     (1) determine whether the continued noncompliance can be 
 99.23  explained and mitigated by providing a needed preemployment 
 99.24  activity, as defined in section 256J.49, subdivision 13, clause 
 99.25  (9); 
 99.26     (2) determine whether the participant qualifies for a good 
 99.27  cause exception under section 256J.57; 
 99.28     (3) inform the participant of the family violence waiver 
 99.29  criteria and make appropriate referrals if the waiver is 
 99.30  requested; 
 99.31     (4) inform the participant of the participant's sanction 
 99.32  status and explain the consequences of continuing noncompliance; 
 99.33     (5) identify other resources that may be available to the 
 99.34  participant to meet the needs of the family; and 
 99.35     (6) inform the participant of the right to appeal under 
 99.36  section 256J.40. 
100.1      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
100.2   256J.46, subdivision 1, is amended to read: 
100.3      Subdivision 1.  [PARTICIPANTS NOT COMPLYING WITH PROGRAM 
100.4   REQUIREMENTS.] (a) A participant who fails without good cause 
100.5   under section 256J.57 to comply with the requirements of this 
100.6   chapter, and who is not subject to a sanction under subdivision 
100.7   2, shall be subject to a sanction as provided in this 
100.8   subdivision.  Prior to the imposition of a sanction, a county 
100.9   agency shall provide a notice of intent to sanction under 
100.10  section 256J.57, subdivision 2, and, when applicable, a notice 
100.11  of adverse action as provided in section 256J.31. 
100.12     (b) A sanction under this subdivision becomes effective the 
100.13  month following the month in which a required notice is given.  
100.14  A sanction must not be imposed when a participant comes into 
100.15  compliance with the requirements for orientation under section 
100.16  256J.45 prior to the effective date of the sanction.  A sanction 
100.17  must not be imposed when a participant comes into compliance 
100.18  with the requirements for employment and training services under 
100.19  sections 256J.515 to 256J.57 ten days prior to the effective 
100.20  date of the sanction.  For purposes of this subdivision, each 
100.21  month that a participant fails to comply with a requirement of 
100.22  this chapter shall be considered a separate occurrence of 
100.23  noncompliance.  If both participants in a two-parent assistance 
100.24  unit are out of compliance at the same time, it is considered 
100.25  one occurrence of noncompliance.  
100.26     (c) Sanctions for noncompliance shall be imposed as follows:
100.27     (1) For the first occurrence of noncompliance by a 
100.28  participant in an assistance unit, the assistance unit's grant 
100.29  shall be reduced by ten percent of the MFIP standard of need for 
100.30  an assistance unit of the same size with the residual grant paid 
100.31  to the participant.  The reduction in the grant amount must be 
100.32  in effect for a minimum of one month and shall be removed in the 
100.33  month following the month that the participant returns to 
100.34  compliance.  
100.35     (2) For a second, third, fourth, fifth, or sixth occurrence 
100.36  of noncompliance by a participant in an assistance unit, the 
101.1   assistance unit's shelter costs shall be vendor paid up to the 
101.2   amount of the cash portion of the MFIP grant for which the 
101.3   assistance unit is eligible.  At county option, the assistance 
101.4   unit's utilities may also be vendor paid up to the amount of the 
101.5   cash portion of the MFIP grant remaining after vendor payment of 
101.6   the assistance unit's shelter costs.  The residual amount of the 
101.7   grant after vendor payment, if any, must be reduced by an amount 
101.8   equal to 30 percent of the MFIP standard of need for an 
101.9   assistance unit of the same size before the residual grant is 
101.10  paid to the assistance unit.  The reduction in the grant amount 
101.11  must be in effect for a minimum of one month and shall be 
101.12  removed in the month following the month that the participant in 
101.13  a one-parent assistance unit returns to compliance.  In a 
101.14  two-parent assistance unit, the grant reduction must be in 
101.15  effect for a minimum of one month and shall be removed in the 
101.16  month following the month both participants return to 
101.17  compliance.  The vendor payment of shelter costs and, if 
101.18  applicable, utilities shall be removed six months after the 
101.19  month in which the participant or participants return to 
101.20  compliance.  If an assistance unit is sanctioned under this 
101.21  clause, the participant's case file must be reviewed to 
101.22  determine if the employment plan is still appropriate. 
101.23     (d) For a seventh occurrence of noncompliance by a 
101.24  participant in an assistance unit, or when the participants in a 
101.25  two-parent assistance unit have a total of seven occurrences of 
101.26  noncompliance, the county agency shall close the MFIP assistance 
101.27  unit's financial assistance case, both the cash and food 
101.28  portions.  The case must remain closed for a minimum of one full 
101.29  month.  Closure under this paragraph does not make a participant 
101.30  automatically ineligible for food support, if otherwise eligible.
101.31  Before the case is closed, the county agency must review the 
101.32  participant's case to determine if the employment plan is still 
101.33  appropriate and attempt to meet with the participant 
101.34  face-to-face.  The participant may bring an advocate to the 
101.35  face-to-face meeting.  If a face-to-face meeting is not 
101.36  conducted, the county agency must send the participant a written 
102.1   notice that includes the information required under clause (1). 
102.2      (1) During the face-to-face meeting, the county agency must:
102.3      (i) determine whether the continued noncompliance can be 
102.4   explained and mitigated by providing a needed preemployment 
102.5   activity, as defined in section 256J.49, subdivision 13, clause 
102.6   (9); 
102.7      (ii) determine whether the participant qualifies for a good 
102.8   cause exception under section 256J.57, or if the sanction is for 
102.9   noncooperation with child support requirements, determine if the 
102.10  participant qualifies for a good cause exemption under section 
102.11  256.741, subdivision 10; 
102.12     (iii) determine whether the participant qualifies qualified 
102.13  for an exemption under section 256J.56 or the work activities in 
102.14  the employment plan are appropriate based on the criteria in 
102.15  section 256J.521, subdivision 2 or 3; 
102.16     (iv) determine whether the participant qualifies for the 
102.17  family violence waiver; 
102.18     (v) inform the participant of the participant's sanction 
102.19  status and explain the consequences of continuing noncompliance; 
102.20     (vi) identify other resources that may be available to the 
102.21  participant to meet the needs of the family; and 
102.22     (vii) inform the participant of the right to appeal under 
102.23  section 256J.40. 
102.24     (2) If the lack of an identified activity or service can 
102.25  explain the noncompliance, the county must work with the 
102.26  participant to provide the identified activity. 
102.27     (3) The grant must be restored to the full amount for which 
102.28  the assistance unit is eligible retroactively to the first day 
102.29  of the month in which the participant was found to lack 
102.30  preemployment activities or to qualify have qualified for an 
102.31  exemption under section 256J.56, a family violence waiver, or 
102.32  for a good cause exemption under section 256.741, subdivision 
102.33  10, or 256J.57. 
102.34     (e) For the purpose of applying sanctions under this 
102.35  section, only occurrences of noncompliance that occur after July 
102.36  1, 2003, shall be considered.  If the participant is in 30 
103.1   percent sanction in the month this section takes effect, that 
103.2   month counts as the first occurrence for purposes of applying 
103.3   the sanctions under this section, but the sanction shall remain 
103.4   at 30 percent for that month. 
103.5      (f) An assistance unit whose case is closed under paragraph 
103.6   (d) or (g), may reapply for MFIP and shall be eligible if the 
103.7   participant complies with MFIP program requirements and 
103.8   demonstrates compliance for up to one month.  No assistance 
103.9   shall be paid during this period. 
103.10     (g) An assistance unit whose case has been closed for 
103.11  noncompliance, that reapplies under paragraph (f), is subject to 
103.12  sanction under paragraph (c), clause (2), for a first occurrence 
103.13  of noncompliance.  Any subsequent occurrence of noncompliance 
103.14  shall result in case closure under paragraph (d). 
103.15     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
103.16  256J.521, subdivision 2, is amended to read: 
103.17     Subd. 2.  [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 
103.18  assessment under subdivision 1, the job counselor and the 
103.19  participant must develop an employment plan that includes 
103.20  participation in activities and hours that meet the requirements 
103.21  of section 256J.55, subdivision 1.  The purpose of the 
103.22  employment plan is to identify for each participant the most 
103.23  direct path to unsubsidized employment and any subsequent steps 
103.24  that support long-term economic stability.  The employment plan 
103.25  should be developed using the highest level of activity 
103.26  appropriate for the participant.  Activities must be chosen from 
103.27  clauses (1) to (6), which are listed in order of preference.  
103.28  The employment plan must also list the specific steps the 
103.29  participant will take to obtain employment, including steps 
103.30  necessary for the participant to progress from one level of 
103.31  activity to another, and a timetable for completion of each 
103.32  step.  Levels of activity include: 
103.33     (1) unsubsidized employment; 
103.34     (2) job search; 
103.35     (3) subsidized employment or unpaid work experience; 
103.36     (4) unsubsidized employment and job readiness education or 
104.1   job skills training; 
104.2      (5) unsubsidized employment or unpaid work experience and 
104.3   activities related to a family violence waiver or preemployment 
104.4   needs; and 
104.5      (6) activities related to a family violence waiver or 
104.6   preemployment needs. 
104.7      (b) Participants who are determined to possess sufficient 
104.8   skills such that the participant is likely to succeed in 
104.9   obtaining unsubsidized employment must job search at least 30 
104.10  hours per week for up to six weeks and accept any offer of 
104.11  suitable employment.  The remaining hours necessary to meet the 
104.12  requirements of section 256J.55, subdivision 1, may be met 
104.13  through participation in other work activities under section 
104.14  256J.49, subdivision 13.  The participant's employment plan must 
104.15  specify, at a minimum:  (1) whether the job search is supervised 
104.16  or unsupervised; (2) support services that will be provided; and 
104.17  (3) how frequently the participant must report to the job 
104.18  counselor.  Participants who are unable to find suitable 
104.19  employment after six weeks must meet with the job counselor to 
104.20  determine whether other activities in paragraph (a) should be 
104.21  incorporated into the employment plan. 
104.22     (c) All job search activities which are continued after six 
104.23  weeks must be structured and supervised. 
104.24     (c) (d) Beginning July 1, 2004, activities and hourly 
104.25  requirements in the employment plan may be adjusted as necessary 
104.26  to accommodate the personal and family circumstances of 
104.27  participants identified under section 256J.561, subdivision 2, 
104.28  paragraph (d).  Participants who no longer meet the provisions 
104.29  of section 256J.561, subdivision 2, paragraph (d), must meet 
104.30  with the job counselor within ten days of the determination to 
104.31  revise the employment plan. 
104.32     (d) (e) Participants who are determined to have barriers to 
104.33  obtaining or retaining employment that will not be overcome 
104.34  during six weeks of job search under paragraph (b) must work 
104.35  with the job counselor to develop an employment plan that 
104.36  addresses those barriers by incorporating appropriate activities 
105.1   from paragraph (a), clauses (1) to (6).  The employment plan 
105.2   must include enough hours to meet the participation requirements 
105.3   in section 256J.55, subdivision 1, unless a compelling reason to 
105.4   require fewer hours is noted in the participant's file. 
105.5      (e) (f) The job counselor and the participant must sign the 
105.6   employment plan to indicate agreement on the contents.  Failure 
105.7   to develop or comply with activities in the plan, or voluntarily 
105.8   quitting suitable employment without good cause, will result in 
105.9   the imposition of a sanction under section 256J.46. 
105.10     (f) (g) Employment plans must be reviewed at least every 
105.11  three months to determine whether activities and hourly 
105.12  requirements should be revised. 
105.13     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
105.14  256J.626, subdivision 6, is amended to read: 
105.15     Subd. 6.  [BASE ALLOCATION TO COUNTIES AND TRIBES.] (a) For 
105.16  purposes of this section, the following terms have the meanings 
105.17  given them: 
105.18     (1) "2002 historic spending base" means the commissioner's 
105.19  determination of the sum of the reimbursement related to fiscal 
105.20  year 2002 of county or tribal agency expenditures for the base 
105.21  programs listed in clause (4) (5), items (i) through (iv), and 
105.22  earnings related to calendar year 2002 in the base program 
105.23  listed in clause (4) (5), item (v), and the amount of spending 
105.24  in fiscal year 2002 in the base program listed in 
105.25  clause (4) (5), item (vi), issued to or on behalf of persons 
105.26  residing in the county or tribal service delivery area. 
105.27     (2) "Caseload factor" means a factor weighted 47 percent on 
105.28  the MFIP cases in each county at four points in time in the 
105.29  previous state fiscal year and 53 percent on the count of adults 
105.30  on MFIP in each county and tribe at four points in time in the 
105.31  previous state fiscal year. 
105.32     (3) "Initial allocation" means the amount potentially 
105.33  available to each county or tribe based on the formula in 
105.34  paragraphs (b) through (d) (f). 
105.35     (3) (4) "Final allocation" means the amount available to 
105.36  each county or tribe based on the formula in paragraphs (b) 
106.1   through (d) (e), after adjustment by subdivision 7. 
106.2      (4) (5) "Base programs" means the: 
106.3      (i) MFIP employment and training services under Minnesota 
106.4   Statutes 2002, section 256J.62, subdivision 1, in effect June 
106.5   30, 2002; 
106.6      (ii) bilingual employment and training services to refugees 
106.7   under Minnesota Statutes 2002, section 256J.62, subdivision 6, 
106.8   in effect June 30, 2002; 
106.9      (iii) work literacy language programs under Minnesota 
106.10  Statutes 2002, section 256J.62, subdivision 7, in effect June 
106.11  30, 2002; 
106.12     (iv) supported work program authorized in Laws 2001, First 
106.13  Special Session chapter 9, article 17, section 2, in effect June 
106.14  30, 2002; 
106.15     (v) administrative aid program under section 256J.76 in 
106.16  effect December 31, 2002; and 
106.17     (vi) emergency assistance program under Minnesota Statutes 
106.18  2002, section 256J.48, in effect June 30, 2002. 
106.19     (b)(1) Beginning July 1, 2003, the commissioner shall 
106.20  determine the initial allocation of funds available under this 
106.21  section according to clause (2). 
106.22     (2) All of the funds available for the period beginning 
106.23  July 1, 2003, and ending December 31, 2004, shall be allocated 
106.24  to each county or tribe in proportion to the county's or tribe's 
106.25  share of the statewide 2002 historic spending base. 
106.26     (c) For calendar year 2005, the commissioner shall 
106.27  determine the initial allocation of funds to be made available 
106.28  under this section in proportion to the county or tribe's 
106.29  initial allocation for the period of July 1, 2003, to December 
106.30  31, 2004. 
106.31     (d) The formula under this subdivision sunsets December 31, 
106.32  2005.  For calendar year 2006, the commissioner shall determine 
106.33  the initial allocation of funds to be made available under this 
106.34  section based 90 percent on the proportion of the county or 
106.35  tribe's share of the statewide 2002 historic spending base and 
106.36  based ten percent on the proportion of the county or tribe's 
107.1   share of the caseload factor. 
107.2      (e) For calendar year 2007, the commissioner shall 
107.3   determine the initial allocation of funds to be made available 
107.4   under this section based 70 percent on the proportion of the 
107.5   county or tribe's share of the statewide 2002 historic spending 
107.6   base and based 30 percent on the proportion of the county or 
107.7   tribe's share of the caseload factor. 
107.8      (f) For calendar year 2008 and subsequent years, the 
107.9   commissioner shall determine the initial allocation of funds to 
107.10  be made available under this section based 50 percent on the 
107.11  proportion of the county or tribe's share of the statewide 2002 
107.12  historic spending base and based 50 percent on the proportion of 
107.13  the county or tribe's share of the caseload factor. 
107.14     (e) Before November 30, 2003, a county or tribe may ask for 
107.15  a review of the commissioner's determination of the historic 
107.16  base spending when the county or tribe believes the 2002 
107.17  information was inaccurate or incomplete.  By January 1, 2004, 
107.18  the commissioner must adjust that county's or tribe's base when 
107.19  the commissioner has determined that inaccurate or incomplete 
107.20  information was used to develop that base.  The commissioner 
107.21  shall adjust each county's or tribe's initial allocation under 
107.22  paragraph (c) and final allocation under subdivision 7 to 
107.23  reflect the base change. 
107.24     (g) With the commencement of a new or expanded tribal TANF 
107.25  program or an agreement under section 256.01, subdivision 2, 
107.26  paragraph (g), in which some or all of the responsibilities of 
107.27  particular counties under this section are transferred to a 
107.28  tribe, the commissioner shall: 
107.29     (1) in the case where all responsibilities under this 
107.30  section are transferred to a tribal program, determine the 
107.31  percentage of the county's current caseload that is transferring 
107.32  to a tribal program and adjust the affected county's allocation 
107.33  accordingly; and 
107.34     (2) in the case where a portion of the responsibilities 
107.35  under this section are transferred to a tribal program, the 
107.36  commissioner shall consult with the affected county or counties 
108.1   to determine an appropriate adjustment to the allocation. 
108.2      (f) (h) Effective January 1, 2005, counties and tribes will 
108.3   have their final allocations adjusted based on the performance 
108.4   provisions of subdivision 7. 
108.5      Sec. 7.  Minnesota Statutes 2003 Supplement, section 
108.6   256J.626, subdivision 7, is amended to read: 
108.7      Subd. 7.  [PERFORMANCE BASE FUNDS.] (a) Beginning calendar 
108.8   year 2005, each county and tribe will be allocated 95 percent of 
108.9   their initial calendar year 2005 allocation.  Counties and 
108.10  tribes will be allocated additional funds based on performance 
108.11  as follows: 
108.12     (1) for calendar year 2005, a county or tribe that achieves 
108.13  a 50 40 percent rate or higher on the MFIP participation rate 
108.14  under section 256J.751, subdivision 2, clause (8), as averaged 
108.15  across the four quarterly measurements for the most recent year 
108.16  for which the measurements are available, will receive an 
108.17  additional allocation equal to 2.5 percent of its initial 
108.18  allocation; and 
108.19     (2) for calendar year 2006, a county or tribe that achieves 
108.20  a 40 percent rate or a five percentage point improvement over 
108.21  the previous year's MFIP participation rate under section 
108.22  256J.751, subdivision 2, clause (8), as averaged across the four 
108.23  quarterly measurements for the most recent year for which the 
108.24  measurements are available, will receive an additional 
108.25  allocation equal to 2.5 percent of its initial allocation; and 
108.26     (3) for calendar year 2007, a county or tribe that achieves 
108.27  a 50 percent rate or a five percentage point improvement over 
108.28  the previous year's MFIP participation rate under section 
108.29  256J.751, subdivision 2, clause (8), as averaged across the four 
108.30  quarterly measurements for the most recent year for which the 
108.31  measurements are available, will receive an additional 
108.32  allocation equal to 2.5 percent of its initial allocation; and 
108.33     (4) for calendar year 2008 and yearly thereafter, a county 
108.34  or tribe that achieves a 50 percent MFIP participation rate 
108.35  under section 256J.751, subdivision 2, clause (8), as averaged 
108.36  across the four quarterly measurements for the most recent year 
109.1   for which the measurements are available, will receive an 
109.2   additional allocation equal to 2.5 percent of its initial 
109.3   allocation; and 
109.4      (5) for calendar years 2005 and thereafter, a county or 
109.5   tribe that performs above the top of its range of expected 
109.6   performance on the three-year self-support index under section 
109.7   256J.751, subdivision 2, clause (7), in both measurements in the 
109.8   preceding year will receive an additional allocation equal to 
109.9   five percent of its initial allocation; or 
109.10     (3) (6) for calendar years 2005 and thereafter, a county or 
109.11  tribe that performs within its range of expected performance on 
109.12  the three-year self-support index under section 256J.751, 
109.13  subdivision 2, clause (7), in both measurements in the preceding 
109.14  year, or above the top of its range of expected performance in 
109.15  one measurement and within its expected range of performance in 
109.16  the other measurement, will receive an additional allocation 
109.17  equal to 2.5 percent of its initial allocation. 
109.18     (b) Funds remaining unallocated after the performance-based 
109.19  allocations in paragraph (a) are available to the commissioner 
109.20  for innovation projects under subdivision 5. 
109.21     (c)(1) If available funds are insufficient to meet county 
109.22  and tribal allocations under paragraph (a), the commissioner may 
109.23  make available for allocation funds that are unobligated and 
109.24  available from the innovation projects through the end of the 
109.25  current biennium. 
109.26     (2) If after the application of clause (1) funds remain 
109.27  insufficient to meet county and tribal allocations under 
109.28  paragraph (a), the commissioner must proportionally reduce the 
109.29  allocation of each county and tribe with respect to their 
109.30  maximum allocation available under paragraph (a). 
109.31     Sec. 8.  Minnesota Statutes 2002, section 256J.67, 
109.32  subdivision 1, is amended to read: 
109.33     Subdivision 1.  [ESTABLISHING THE COMMUNITY WORK EXPERIENCE 
109.34  PROGRAM.] To the extent of available resources, each county 
109.35  agency may establish and operate a work experience component for 
109.36  MFIP caregivers who are participating in employment and training 
110.1   services.  This option for county agencies supersedes the 
110.2   requirement in section 402(a)(1)(B)(iv) of the Social Security 
110.3   Act that caregivers who have received assistance for two months 
110.4   and who are not exempt from work requirements must participate 
110.5   in a work experience program.  The purpose of the work 
110.6   experience component is to enhance the caregiver's employability 
110.7   and self-sufficiency and to provide meaningful, productive work 
110.8   activities.  The county shall use this program for an individual 
110.9   after exhausting all other employment opportunities.  The county 
110.10  agency shall not require a caregiver to participate in the 
110.11  community work experience program unless the caregiver has been 
110.12  given an opportunity to participate in other work activities.  
110.13     Sec. 9.  Minnesota Statutes 2002, section 256J.67, 
110.14  subdivision 3, is amended to read: 
110.15     Subd. 3.  [EMPLOYMENT OPTIONS.] (a) Work sites developed 
110.16  under this section are limited to projects that serve a useful 
110.17  public service such as:  health, social service, environmental 
110.18  protection, education, urban and rural development and 
110.19  redevelopment, welfare, recreation, public facilities, public 
110.20  safety, community service, services to aged or disabled 
110.21  citizens, and child care.  To the extent possible, the prior 
110.22  training, skills, and experience of a caregiver must be 
110.23  considered in making appropriate work experience assignments. 
110.24     (b) Structured, supervised volunteer work with an agency or 
110.25  organization, which is monitored by the county service provider, 
110.26  may, with the approval of the county agency, be used as a work 
110.27  experience placement. 
110.28     (c) As a condition of placing a caregiver in a program 
110.29  under this section, the county agency shall first provide the 
110.30  caregiver the opportunity: 
110.31     (1) for placement in suitable subsidized or unsubsidized 
110.32  employment through participation in a job search; or 
110.33     (2) for placement in suitable employment through 
110.34  participation in on-the-job training, if such employment is 
110.35  available. 
110.36     Sec. 10.  Minnesota Statutes 2003 Supplement, section 
111.1   256J.95, subdivision 10, is amended to read: 
111.2      Subd. 10.  [DIVERSIONARY WORK PROGRAM GRANT.] (a) The 
111.3   amount of cash benefits that a family unit is eligible for under 
111.4   the diversionary work program is based on the number of persons 
111.5   in the family unit, the family maintenance needs, personal needs 
111.6   allowance, and countable income.  The county agency shall 
111.7   evaluate the income of the family unit that is requesting 
111.8   payments under the diversionary work program.  Countable income 
111.9   means gross earned and unearned income not excluded or 
111.10  disregarded under MFIP.  The same disregards for earned income 
111.11  that are allowed under MFIP are allowed for the diversionary 
111.12  work program. 
111.13     (b) The DWP grant is based on the family maintenance needs 
111.14  for which the DWP family unit is responsible plus a personal 
111.15  needs allowance.  Housing and utilities, except for telephone 
111.16  service, shall be vendor paid.  Unless otherwise stated in this 
111.17  section, actual housing and utility expenses shall be used when 
111.18  determining the amount of the DWP grant. 
111.19     (c) The maximum monthly benefit amount available under the 
111.20  diversionary work program is the difference between the family 
111.21  unit's needs under paragraph (b) and the family unit's countable 
111.22  income not to exceed the cash portion of the MFIP standard of 
111.23  need as defined in section 256J.08, subdivision 55a, for the 
111.24  family unit's size.  
111.25     (d) Once A DWP family unit's benefits, including any 
111.26  changes, shall be budgeted prospectively.  When the county has 
111.27  determined a grant amount, the DWP grant amount will not be 
111.28  decreased if the determination is based on the best information 
111.29  available at the time of approval and shall not be decreased 
111.30  because of any additional income to the family unit, the DWP 
111.31  grant amount must not be decreased because of an increase in 
111.32  family household income, unless a new member is added to the 
111.33  household.  The grant amount must be increased if a participant 
111.34  later verifies an increase recalculated if there is a decrease 
111.35  in family household income, a change in family size, or a change 
111.36  in family maintenance needs or family unit size. 
112.1      (e) The minimum cash benefit amount, if income and asset 
112.2   tests are met, is $10.  Benefits of $10 shall not be vendor paid.
112.3      (e) (f) When all criteria are met, including the 
112.4   development of an employment plan as described in subdivision 14 
112.5   and eligibility exists for the month of application, the amount 
112.6   of benefits for the diversionary work program retroactive to the 
112.7   date of application is as specified in section 256J.35, 
112.8   paragraph (a). 
112.9      (f) (g) Any month during the four-month DWP period that a 
112.10  person receives a DWP benefit directly or through a vendor 
112.11  payment made on the person's behalf, that person is ineligible 
112.12  for MFIP or any other TANF cash assistance program except for 
112.13  benefits defined in section 256J.626, subdivision 2, clause (1). 
112.14     If during the four-month period a family unit that receives 
112.15  DWP benefits moves to a county that has not established a 
112.16  diversionary work program, the family unit may be eligible for 
112.17  MFIP the month following the last month of the issuance of the 
112.18  DWP benefit. 
112.19     Sec. 11.  Minnesota Statutes 2003 Supplement, section 
112.20  256J.95, subdivision 12, is amended to read: 
112.21     Subd. 12.  [CONVERSION OR REFERRAL TO MFIP.] (a) If at any 
112.22  time during the DWP application process or during the four-month 
112.23  DWP eligibility period, it is determined that a participant is 
112.24  unlikely to benefit from the diversionary work program, the 
112.25  county shall convert or refer the participant to MFIP as 
112.26  specified in paragraph (d).  Participants who are determined to 
112.27  be unlikely to benefit from the diversionary work program must 
112.28  develop and sign an employment plan.  Participants who meet any 
112.29  one of the criteria in paragraph (b) shall be considered to be 
112.30  unlikely to benefit from DWP, provided the necessary 
112.31  documentation is available to support the determination. 
112.32     (b) A participant who: 
112.33     (1) has been determined by a qualified professional as 
112.34  being unable to obtain or retain employment due to an illness, 
112.35  injury, or incapacity that is expected to last at least 60 days; 
112.36     (2) is required in the home as a caregiver because of the 
113.1   illness, injury, or incapacity, of a family member, or a 
113.2   relative in the household, or a foster child, and the illness, 
113.3   injury, or incapacity and the need for a person to provide 
113.4   assistance in the home has been certified by a qualified 
113.5   professional and is expected to continue more than 60 days; 
113.6      (3) is determined by a qualified professional as being 
113.7   needed in the home to care for a child or adult meeting the 
113.8   special medical criteria in section 256J.425 256J.561, 
113.9   subdivision 2, paragraph (d), clause (3); 
113.10     (4) is pregnant and is determined by a qualified 
113.11  professional as being unable to obtain or retain employment due 
113.12  to the pregnancy; or 
113.13     (5) has applied for SSI or RSDI SSDI because the 
113.14  participant has an illness, injury, or incapacity certified by a 
113.15  qualified professional that makes the participant unable to 
113.16  obtain or retain employment. 
113.17     (c) In a two-parent family unit, both parents must be 
113.18  determined to be unlikely to benefit from the diversionary work 
113.19  program before the family unit can be converted or referred to 
113.20  MFIP. 
113.21     (d) A participant who is determined to be unlikely to 
113.22  benefit from the diversionary work program shall be converted to 
113.23  MFIP and, if the determination was made within 30 days of the 
113.24  initial application for benefits, no additional application form 
113.25  is required.  A participant who is determined to be unlikely to 
113.26  benefit from the diversionary work program shall be referred to 
113.27  MFIP and, if the determination is made more than 30 days after 
113.28  the initial application, the participant must submit a program 
113.29  change request form.  The county agency shall process the 
113.30  program change request form by the first of the following month 
113.31  to ensure that no gap in benefits is due to delayed action by 
113.32  the county agency.  In processing the program change request 
113.33  form, the county must follow section 256J.32, subdivision 1, 
113.34  except that the county agency shall not require additional 
113.35  verification of the information in the case file from the DWP 
113.36  application unless the information in the case file is 
114.1   inaccurate, questionable, or no longer current. 
114.2      (e) The county shall not request a combined application 
114.3   form for a participant who has exhausted the four months of the 
114.4   diversionary work program, has continued need for cash and food 
114.5   assistance, and has completed, signed, and submitted a program 
114.6   change request form within 30 days of the fourth month of the 
114.7   diversionary work program.  The county must process the program 
114.8   change request according to section 256J.32, subdivision 1, 
114.9   except that the county agency shall not require additional 
114.10  verification of information in the case file unless the 
114.11  information is inaccurate, questionable, or no longer current.  
114.12  When a participant does not request MFIP within 30 days of the 
114.13  diversionary work program benefits being exhausted, a new 
114.14  combined application form must be completed for any subsequent 
114.15  request for MFIP. 
114.16     Sec. 12.  [WIC HOME DELIVERY.] 
114.17     The commissioner of health shall seek federal approval for 
114.18  an amendment to the state plan for the special supplemental 
114.19  nutrition program for women, infants, and children (WIC program) 
114.20  to allow home delivery of supplemental foods.  The amendment 
114.21  must include provisions to:  (1) prevent fraud; (2) minimize 
114.22  additional program costs related to home delivery; and (3) allow 
114.23  orders to be placed by telephone, facsimile, or Internet.  The 
114.24  commissioner shall notify the chairs and ranking minority 
114.25  members of the house and senate committees with jurisdiction 
114.26  over health care policy and funding on whether federal approval 
114.27  is obtained. 
114.28     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
114.29  following final enactment. 
114.30                             ARTICLE 5 
114.31                           MENTAL HEALTH 
114.32     Section 1.  Minnesota Statutes 2002, section 245.462, 
114.33  subdivision 18, is amended to read: 
114.34     Subd. 18.  [MENTAL HEALTH PROFESSIONAL.] "Mental health 
114.35  professional" means a person providing clinical services in the 
114.36  treatment of mental illness who is qualified in at least one of 
115.1   the following ways:  
115.2      (1) in psychiatric nursing:  a registered nurse who is 
115.3   licensed under sections 148.171 to 148.285, and (i) who is 
115.4   certified as a clinical specialist or as a nurse practitioner in 
115.5   adult or family psychiatric and mental health nursing by a 
115.6   national nurse certification organization; or (ii) who has a 
115.7   master's degree in nursing or one of the behavioral sciences or 
115.8   related fields from an accredited college or university or its 
115.9   equivalent, with at least 4,000 hours of post-master's 
115.10  supervised experience in the delivery of clinical services in 
115.11  the treatment of mental illness; 
115.12     (2) in clinical social work:  a person licensed as an 
115.13  independent clinical social worker under section 148B.21, 
115.14  subdivision 6, or a person with a master's degree in social work 
115.15  from an accredited college or university, with at least 4,000 
115.16  hours of post-master's supervised experience in the delivery of 
115.17  clinical services in the treatment of mental illness; 
115.18     (3) in psychology:  an individual licensed by the board of 
115.19  psychology under sections 148.88 to 148.98 who has stated to the 
115.20  board of psychology competencies in the diagnosis and treatment 
115.21  of mental illness; 
115.22     (4) in psychiatry:  a physician licensed under chapter 147 
115.23  and certified by the American Board of Psychiatry and Neurology 
115.24  or eligible for board certification in psychiatry; 
115.25     (5) in marriage and family therapy:  the mental health 
115.26  professional must be a marriage and family therapist licensed 
115.27  under sections 148B.29 to 148B.39 with at least two years of 
115.28  post-master's supervised experience in the delivery of clinical 
115.29  services in the treatment of mental illness; or 
115.30     (6) in allied fields:  a person with a master's degree from 
115.31  an accredited college or university in one of the behavioral 
115.32  sciences or related fields, with at least 4,000 hours of 
115.33  post-master's supervised experience in the delivery of clinical 
115.34  services in the treatment of mental illness.  
115.35     Sec. 2.  Minnesota Statutes 2002, section 245.464, is 
115.36  amended by adding a subdivision to read: 
116.1      Subd. 3.  [PUBLIC-PRIVATE PARTNERSHIPS.] The commissioner 
116.2   may establish a mechanism by which counties, the Department of 
116.3   Human Services, hospitals, health plans, consumers, and others 
116.4   may enter into agreements that allow for capacity building and 
116.5   oversight of any agreed-upon entity that is developed through 
116.6   these partnerships.  The purpose of these partnerships is the 
116.7   development and provision of mental health services which would 
116.8   be more effective, efficient, and accessible than services that 
116.9   might be provided separately by each partner. 
116.10     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
116.11  245.4874, is amended to read: 
116.12     245.4874 [DUTIES OF COUNTY BOARD.] 
116.13     The county board in each county shall use its share of 
116.14  mental health and Community Social Services Act funds allocated 
116.15  by the commissioner according to a biennial children's mental 
116.16  health component of the community social services plan that is 
116.17  approved by the commissioner.  The county board must: 
116.18     (1) develop a system of affordable and locally available 
116.19  children's mental health services according to sections 245.487 
116.20  to 245.4887; 
116.21     (2) establish a mechanism providing for interagency 
116.22  coordination as specified in section 245.4875, subdivision 6; 
116.23     (3) develop a biennial children's mental health component 
116.24  of the community social services plan which considers the 
116.25  assessment of unmet needs in the county as reported by the local 
116.26  children's mental health advisory council under section 
116.27  245.4875, subdivision 5, paragraph (b), clause (3).  The county 
116.28  shall provide, upon request of the local children's mental 
116.29  health advisory council, readily available data to assist in the 
116.30  determination of unmet needs; 
116.31     (4) assure that parents and providers in the county receive 
116.32  information about how to gain access to services provided 
116.33  according to sections 245.487 to 245.4887; 
116.34     (5) coordinate the delivery of children's mental health 
116.35  services with services provided by social services, education, 
116.36  corrections, health, and vocational agencies to improve the 
117.1   availability of mental health services to children and the 
117.2   cost-effectiveness of their delivery; 
117.3      (6) assure that mental health services delivered according 
117.4   to sections 245.487 to 245.4887 are delivered expeditiously and 
117.5   are appropriate to the child's diagnostic assessment and 
117.6   individual treatment plan; 
117.7      (7) provide the community with information about predictors 
117.8   and symptoms of emotional disturbances and how to access 
117.9   children's mental health services according to sections 245.4877 
117.10  and 245.4878; 
117.11     (8) provide for case management services to each child with 
117.12  severe emotional disturbance according to sections 245.486; 
117.13  245.4871, subdivisions 3 and 4; and 245.4881, subdivisions 1, 3, 
117.14  and 5; 
117.15     (9) provide for screening of each child under section 
117.16  245.4885 upon admission to a residential treatment facility, 
117.17  acute care hospital inpatient treatment, or informal admission 
117.18  to a regional treatment center; 
117.19     (10) prudently administer grants and purchase-of-service 
117.20  contracts that the county board determines are necessary to 
117.21  fulfill its responsibilities under sections 245.487 to 245.4887; 
117.22     (11) assure that mental health professionals, mental health 
117.23  practitioners, and case managers employed by or under contract 
117.24  to the county to provide mental health services are qualified 
117.25  under section 245.4871; 
117.26     (12) assure that children's mental health services are 
117.27  coordinated with adult mental health services specified in 
117.28  sections 245.461 to 245.486 so that a continuum of mental health 
117.29  services is available to serve persons with mental illness, 
117.30  regardless of the person's age; 
117.31     (13) assure that culturally informed mental health 
117.32  consultants are used as necessary to assist the county board in 
117.33  assessing and providing appropriate treatment for children of 
117.34  cultural or racial minority heritage; and 
117.35     (14) consistent with section 245.486, arrange for or 
117.36  provide a children's mental health screening to a child 
118.1   receiving child protective services or a child in out-of-home 
118.2   placement, a child for whom parental rights have been 
118.3   terminated, a child found to be delinquent, and a child found to 
118.4   have committed a juvenile petty offense for the third or 
118.5   subsequent time, unless a screening has been performed within 
118.6   the previous 180 days, or the child is currently under the care 
118.7   of a mental health professional.  The court or county agency 
118.8   must notify a parent or guardian whose parental rights have not 
118.9   been terminated of the potential mental health screening and the 
118.10  option to prevent the screening by notifying the court or county 
118.11  agency in writing.  The screening shall be conducted with a 
118.12  screening instrument approved by the commissioner of human 
118.13  services according to criteria that are updated and issued 
118.14  annually to ensure that approved screening instruments are valid 
118.15  and useful for child welfare and juvenile justice populations, 
118.16  and shall be conducted by a mental health practitioner as 
118.17  defined in section 245.4871, subdivision 26, or a probation 
118.18  officer or local social services agency staff person who is 
118.19  trained in the use of the screening instrument.  Training in the 
118.20  use of the instrument shall include training in the 
118.21  administration of the instrument, the interpretation of its 
118.22  validity given the child's current circumstances, the state and 
118.23  federal data practices laws and confidentiality standards, the 
118.24  parental consent requirement, and providing respect for families 
118.25  and cultural values.  If the screen indicates a need for 
118.26  assessment, the child's family, or if the family lacks mental 
118.27  health insurance, the local social services agency, in 
118.28  consultation with the child's family, shall have conducted a 
118.29  diagnostic assessment, including a functional assessment, as 
118.30  defined in section 245.4871.  The administration of the 
118.31  screening shall safeguard the privacy of children receiving the 
118.32  screening and their families and shall comply with the Minnesota 
118.33  Government Data Practices Act, chapter 13, and the federal 
118.34  Health Insurance Portability and Accountability Act of 1996, 
118.35  Public Law 104-191.  Screening results shall be considered 
118.36  private data and the commissioner shall not collect individual 
119.1   screening results. 
119.2      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
119.3   256B.0622, subdivision 8, is amended to read: 
119.4      Subd. 8.  [MEDICAL ASSISTANCE PAYMENT FOR INTENSIVE 
119.5   REHABILITATIVE MENTAL HEALTH SERVICES.] (a) Payment for 
119.6   residential and nonresidential services in this section shall be 
119.7   based on one daily rate per provider inclusive of the following 
119.8   services received by an eligible recipient in a given calendar 
119.9   day:  all rehabilitative services under this section, staff 
119.10  travel time to provide rehabilitative services under this 
119.11  section, and nonresidential crisis stabilization services under 
119.12  section 256B.0624. 
119.13     (b) Except as indicated in paragraph (c), payment will not 
119.14  be made to more than one entity for each recipient for services 
119.15  provided under this section on a given day.  If services under 
119.16  this section are provided by a team that includes staff from 
119.17  more than one entity, the team must determine how to distribute 
119.18  the payment among the members. 
119.19     (c) The host county shall recommend to the commissioner one 
119.20  rate for each entity that will bill medical assistance for 
119.21  residential services under this section and two rates for each 
119.22  nonresidential provider.  The first nonresidential rate is for 
119.23  recipients who are not receiving residential services.  The 
119.24  second nonresidential rate is for recipients who are temporarily 
119.25  receiving residential services and need continued contact with 
119.26  the nonresidential team to assure timely discharge from 
119.27  residential services.  In developing these rates, the host 
119.28  county shall consider and document: 
119.29     (1) the cost for similar services in the local trade area; 
119.30     (2) actual costs incurred by entities providing the 
119.31  services; 
119.32     (3) the intensity and frequency of services to be provided 
119.33  to each recipient; 
119.34     (4) the degree to which recipients will receive services 
119.35  other than services under this section; 
119.36     (5) the costs of other services, such as case management, 
120.1   that will be separately reimbursed; and 
120.2      (6) input from the local planning process authorized by the 
120.3   adult mental health initiative under section 245.4661, regarding 
120.4   recipients' service needs. 
120.5      (d) The rate for intensive rehabilitative mental health 
120.6   services must exclude room and board, as defined in section 
120.7   256I.03, subdivision 6, and services not covered under this 
120.8   section, such as case management, partial hospitalization, home 
120.9   care, and inpatient services.  Physician services that are not 
120.10  separately billed may be included in the rate to the extent that 
120.11  a psychiatrist is a member of the treatment team.  The county's 
120.12  recommendation shall specify the period for which the rate will 
120.13  be applicable, not to exceed two years. 
120.14     (e) When services under this section are provided by an 
120.15  assertive community team, case management functions must be an 
120.16  integral part of the team.  The county must allocate costs which 
120.17  are reimbursable under this section versus costs which are 
120.18  reimbursable through case management or other reimbursement, so 
120.19  that payment is not duplicated. 
120.20     (f) The rate for a provider must not exceed the rate 
120.21  charged by that provider for the same service to other payors. 
120.22     (g) The commissioner shall approve or reject the county's 
120.23  rate recommendation, based on the commissioner's own analysis of 
120.24  the criteria in paragraph (c). 
120.25     Sec. 5.  [REPEALER.] 
120.26     Laws 2001, First Special Session chapter 9, article 9, 
120.27  section 52, is repealed effective the day following final 
120.28  enactment of this section. 
120.29                             ARTICLE 6 
120.30                  CONTINUING CARE FOR THE ELDERLY 
120.31     Section 1.  Minnesota Statutes 2002, section 144A.071, 
120.32  subdivision 1a, is amended to read: 
120.33     Subd. 1a.  [DEFINITIONS.] For purposes of sections 144A.071 
120.34  to 144A.073, the following terms have the meanings given them: 
120.35     (a) "Attached fixtures" has the meaning given in Minnesota 
120.36  Rules, part 9549.0020, subpart 6. 
121.1      (b) "Buildings" has the meaning given in Minnesota Rules, 
121.2   part 9549.0020, subpart 7. 
121.3      (c) "Capital assets" has the meaning given in section 
121.4   256B.421, subdivision 16. 
121.5      (d) "Commenced construction" means that all of the 
121.6   following conditions were met:  the final working drawings and 
121.7   specifications were approved by the commissioner of health; the 
121.8   construction contracts were let; a timely construction schedule 
121.9   was developed, stipulating dates for beginning, achieving 
121.10  various stages, and completing construction; and all zoning and 
121.11  building permits were applied for. 
121.12     (e) "Completion date" means the date on which a certificate 
121.13  of occupancy is issued for a construction project, or if a 
121.14  certificate of occupancy is not required, the date on which the 
121.15  construction project is available for facility use. 
121.16     (f) "Construction" means any erection, building, 
121.17  alteration, reconstruction, modernization, or improvement 
121.18  necessary to comply with the nursing home licensure rules. 
121.19     (g) "Construction project" means: 
121.20     (1) a capital asset addition to, or replacement of a 
121.21  nursing home or certified boarding care home that results in new 
121.22  space or the remodeling of or renovations to existing facility 
121.23  space; and 
121.24     (2) the remodeling or renovation of existing facility space 
121.25  the use of which is modified as a result of the project 
121.26  described in clause (1).  This existing space and the project 
121.27  described in clause (1) must be used for the functions as 
121.28  designated on the construction plans on completion of the 
121.29  project described in clause (1) for a period of not less than 24 
121.30  months; or 
121.31     (3) capital asset additions or replacements that are 
121.32  completed within 12 months before or after the completion date 
121.33  of the project described in clause (1). 
121.34     (h) "Depreciation guidelines" means the most recent 
121.35  publication of "The Estimated Useful Lives of Depreciable 
121.36  Hospital Assets," issued by the American Hospital Association, 
122.1   840 North Lake Shore Drive, Chicago, Illinois, 60611. 
122.2      (i) "New licensed" or "new certified beds" means: 
122.3      (1) newly constructed beds in a facility or the 
122.4   construction of a new facility that would increase the total 
122.5   number of licensed nursing home beds or certified boarding care 
122.6   or nursing home beds in the state; or 
122.7      (2) newly licensed nursing home beds or newly certified 
122.8   boarding care or nursing home beds that result from remodeling 
122.9   of the facility that involves relocation of beds but does not 
122.10  result in an increase in the total number of beds, except when 
122.11  the project involves the upgrade of boarding care beds to 
122.12  nursing home beds, as defined in section 144A.073, subdivision 
122.13  1.  "Remodeling" includes any of the type of conversion, 
122.14  renovation, replacement, or upgrading projects as defined in 
122.15  section 144A.073, subdivision 1. 
122.16     (i) (j) "Project construction costs" means the cost of the 
122.17  following items that have a completion date within 12 months 
122.18  before or after the completion date of the project described in 
122.19  item (g), clause (1): 
122.20     (1) facility capital asset additions,; 
122.21     (2) replacements,; 
122.22     (3) renovations, or; 
122.23     (4) remodeling projects,; 
122.24     (5) construction site preparation costs, and; 
122.25     (6) related soft costs.  Project construction costs include 
122.26  the cost of any remodeling or renovation of existing facility 
122.27  space which is modified as a result of the construction 
122.28  project.  Project construction costs also includes the cost of 
122.29  new technology implemented as part of the construction project.  
122.30  Project construction costs also include; and 
122.31     (7) the cost of new technology implemented as part of the 
122.32  construction project and depreciable equipment directly 
122.33  identified to the project, if the construction costs for clauses 
122.34  (1) to (6) exceed the threshold for additions and replacements 
122.35  stated in section 256B.431, subdivision 16.  Any new Technology 
122.36  and depreciable equipment shall be included in the project 
123.1   construction costs shall, at the unless a written election of is 
123.2   made by the facility, be included to not include it in the 
123.3   facility's appraised value for purposes of Minnesota Rules, part 
123.4   9549.0020, subpart 5, and.  Debt incurred for its purchase of 
123.5   technology and depreciable equipment shall be included as 
123.6   allowable debt for purposes of Minnesota Rules, part 9549.0060, 
123.7   subpart 5, items A and C, unless the written election is to not 
123.8   include it.  Any new technology and depreciable equipment 
123.9   included in the project construction costs that the facility 
123.10  elects not to include in its appraised value and allowable debt 
123.11  shall be treated as provided in section 256B.431, subdivision 
123.12  17, paragraph (b).  Written election under this paragraph must 
123.13  be included in the facility's request for the rate change 
123.14  related to the project, and this election may not be changed. 
123.15     (j) (k) "Technology" means information systems or devices 
123.16  that make documentation, charting, and staff time more efficient 
123.17  or encourage and allow for care through alternative settings 
123.18  including, but not limited to, touch screens, monitors, 
123.19  hand-helds, swipe cards, motion detectors, pagers, telemedicine, 
123.20  medication dispensers, and equipment to monitor vital signs and 
123.21  self-injections, and to observe skin and other conditions. 
123.22     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
123.23  256.01, subdivision 2, is amended to read: 
123.24     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
123.25  section 241.021, subdivision 2, the commissioner of human 
123.26  services shall: carry out the specific duties in paragraphs (a) 
123.27  to (aa). 
123.28     (1) (a) Administer and supervise all forms of public 
123.29  assistance provided for by state law and other welfare 
123.30  activities or services as are vested in the commissioner.  
123.31  Administration and supervision of human services activities or 
123.32  services includes, but is not limited to, assuring timely and 
123.33  accurate distribution of benefits, completeness of service, and 
123.34  quality program management.  In addition to administering and 
123.35  supervising human services activities vested by law in the 
123.36  department, the commissioner shall have the authority to: 
124.1      (a) (1) require county agency participation in training and 
124.2   technical assistance programs to promote compliance with 
124.3   statutes, rules, federal laws, regulations, and policies 
124.4   governing human services; 
124.5      (b) (2) monitor, on an ongoing basis, the performance of 
124.6   county agencies in the operation and administration of human 
124.7   services, enforce compliance with statutes, rules, federal laws, 
124.8   regulations, and policies governing welfare services and promote 
124.9   excellence of administration and program operation; 
124.10     (c) (3) develop a quality control program or other 
124.11  monitoring program to review county performance and accuracy of 
124.12  benefit determinations; 
124.13     (d) (4) require county agencies to make an adjustment to 
124.14  the public assistance benefits issued to any individual 
124.15  consistent with federal law and regulation and state law and 
124.16  rule and to issue or recover benefits as appropriate; 
124.17     (e) (5) delay or deny payment of all or part of the state 
124.18  and federal share of benefits and administrative reimbursement 
124.19  according to the procedures set forth in section 256.017; 
124.20     (f) (6) make contracts with and grants to public and 
124.21  private agencies and organizations, both profit and nonprofit, 
124.22  and individuals, using appropriated funds; and 
124.23     (g) (7) enter into contractual agreements with federally 
124.24  recognized Indian tribes with a reservation in Minnesota to the 
124.25  extent necessary for the tribe to operate a federally approved 
124.26  family assistance program or any other program under the 
124.27  supervision of the commissioner.  The commissioner shall consult 
124.28  with the affected county or counties in the contractual 
124.29  agreement negotiations, if the county or counties wish to be 
124.30  included, in order to avoid the duplication of county and tribal 
124.31  assistance program services.  The commissioner may establish 
124.32  necessary accounts for the purposes of receiving and disbursing 
124.33  funds as necessary for the operation of the programs. 
124.34     (2) (b) Inform county agencies, on a timely basis, of 
124.35  changes in statute, rule, federal law, regulation, and policy 
124.36  necessary to county agency administration of the programs. 
125.1      (3) (c) Administer and supervise all child welfare 
125.2   activities; promote the enforcement of laws protecting 
125.3   handicapped, dependent, neglected and delinquent children, and 
125.4   children born to mothers who were not married to the children's 
125.5   fathers at the times of the conception nor at the births of the 
125.6   children; license and supervise child-caring and child-placing 
125.7   agencies and institutions; supervise the care of children in 
125.8   boarding and foster homes or in private institutions; and 
125.9   generally perform all functions relating to the field of child 
125.10  welfare now vested in the State Board of Control. 
125.11     (4) (d) Administer and supervise all noninstitutional 
125.12  service to handicapped persons, including those who are visually 
125.13  impaired, hearing impaired, or physically impaired or otherwise 
125.14  handicapped.  The commissioner may provide and contract for the 
125.15  care and treatment of qualified indigent children in facilities 
125.16  other than those located and available at state hospitals when 
125.17  it is not feasible to provide the service in state hospitals. 
125.18     (5) (e) Assist and actively cooperate with other 
125.19  departments, agencies and institutions, local, state, and 
125.20  federal, by performing services in conformity with the purposes 
125.21  of Laws 1939, chapter 431. 
125.22     (6) (f) Act as the agent of and cooperate with the federal 
125.23  government in matters of mutual concern relative to and in 
125.24  conformity with the provisions of Laws 1939, chapter 431, 
125.25  including the administration of any federal funds granted to the 
125.26  state to aid in the performance of any functions of the 
125.27  commissioner as specified in Laws 1939, chapter 431, and 
125.28  including the promulgation of rules making uniformly available 
125.29  medical care benefits to all recipients of public assistance, at 
125.30  such times as the federal government increases its participation 
125.31  in assistance expenditures for medical care to recipients of 
125.32  public assistance, the cost thereof to be borne in the same 
125.33  proportion as are grants of aid to said recipients. 
125.34     (7) (g) Establish and maintain any administrative units 
125.35  reasonably necessary for the performance of administrative 
125.36  functions common to all divisions of the department. 
126.1      (8) (h) Act as designated guardian of both the estate and 
126.2   the person of all the wards of the state of Minnesota, whether 
126.3   by operation of law or by an order of court, without any further 
126.4   act or proceeding whatever, except as to persons committed as 
126.5   mentally retarded.  For children under the guardianship of the 
126.6   commissioner whose interests would be best served by adoptive 
126.7   placement, the commissioner may contract with a licensed 
126.8   child-placing agency or a Minnesota tribal social services 
126.9   agency to provide adoption services.  A contract with a licensed 
126.10  child-placing agency must be designed to supplement existing 
126.11  county efforts and may not replace existing county programs, 
126.12  unless the replacement is agreed to by the county board and the 
126.13  appropriate exclusive bargaining representative or the 
126.14  commissioner has evidence that child placements of the county 
126.15  continue to be substantially below that of other counties.  
126.16  Funds encumbered and obligated under an agreement for a specific 
126.17  child shall remain available until the terms of the agreement 
126.18  are fulfilled or the agreement is terminated. 
126.19     (9) (i) Act as coordinating referral and informational 
126.20  center on requests for service for newly arrived immigrants 
126.21  coming to Minnesota. 
126.22     (10) (j) The specific enumeration of powers and duties as 
126.23  hereinabove set forth shall in no way be construed to be a 
126.24  limitation upon the general transfer of powers herein contained. 
126.25     (11) (k) Establish county, regional, or statewide schedules 
126.26  of maximum fees and charges which may be paid by county agencies 
126.27  for medical, dental, surgical, hospital, nursing and nursing 
126.28  home care and medicine and medical supplies under all programs 
126.29  of medical care provided by the state and for congregate living 
126.30  care under the income maintenance programs. 
126.31     (12) (l) Have the authority to conduct and administer 
126.32  experimental projects to test methods and procedures of 
126.33  administering assistance and services to recipients or potential 
126.34  recipients of public welfare.  To carry out such experimental 
126.35  projects, it is further provided that the commissioner of human 
126.36  services is authorized to waive the enforcement of existing 
127.1   specific statutory program requirements, rules, and standards in 
127.2   one or more counties.  The order establishing the waiver shall 
127.3   provide alternative methods and procedures of administration, 
127.4   shall not be in conflict with the basic purposes, coverage, or 
127.5   benefits provided by law, and in no event shall the duration of 
127.6   a project exceed four years.  It is further provided that no 
127.7   order establishing an experimental project as authorized by the 
127.8   provisions of this section shall become effective until the 
127.9   following conditions have been met: 
127.10     (a) (1) the secretary of health and human services of the 
127.11  United States has agreed, for the same project, to waive state 
127.12  plan requirements relative to statewide uniformity.; and 
127.13     (b) (2) a comprehensive plan, including estimated project 
127.14  costs, shall be approved by the Legislative Advisory Commission 
127.15  and filed with the commissioner of administration.  
127.16     (13) (m) According to federal requirements, establish 
127.17  procedures to be followed by local welfare boards in creating 
127.18  citizen advisory committees, including procedures for selection 
127.19  of committee members. 
127.20     (14) (n) Allocate federal fiscal disallowances or sanctions 
127.21  which are based on quality control error rates for the aid to 
127.22  families with dependent children program formerly codified in 
127.23  sections 256.72 to 256.87, medical assistance, or food stamp 
127.24  program in the following manner:  
127.25     (a) (1) one-half of the total amount of the disallowance 
127.26  shall be borne by the county boards responsible for 
127.27  administering the programs.  For the medical assistance and the 
127.28  AFDC program formerly codified in sections 256.72 to 256.87, 
127.29  disallowances shall be shared by each county board in the same 
127.30  proportion as that county's expenditures for the sanctioned 
127.31  program are to the total of all counties' expenditures for the 
127.32  AFDC program formerly codified in sections 256.72 to 256.87, and 
127.33  medical assistance programs.  For the food stamp program, 
127.34  sanctions shall be shared by each county board, with 50 percent 
127.35  of the sanction being distributed to each county in the same 
127.36  proportion as that county's administrative costs for food stamps 
128.1   are to the total of all food stamp administrative costs for all 
128.2   counties, and 50 percent of the sanctions being distributed to 
128.3   each county in the same proportion as that county's value of 
128.4   food stamp benefits issued are to the total of all benefits 
128.5   issued for all counties.  Each county shall pay its share of the 
128.6   disallowance to the state of Minnesota.  When a county fails to 
128.7   pay the amount due hereunder, the commissioner may deduct the 
128.8   amount from reimbursement otherwise due the county, or the 
128.9   attorney general, upon the request of the commissioner, may 
128.10  institute civil action to recover the amount due.; and 
128.11     (b) (2) notwithstanding the provisions of paragraph 
128.12  (a) clause (1), if the disallowance results from knowing 
128.13  noncompliance by one or more counties with a specific program 
128.14  instruction, and that knowing noncompliance is a matter of 
128.15  official county board record, the commissioner may require 
128.16  payment or recover from the county or counties, in the manner 
128.17  prescribed in paragraph (a) clause (1), an amount equal to the 
128.18  portion of the total disallowance which resulted from the 
128.19  noncompliance, and may distribute the balance of the 
128.20  disallowance according to paragraph (a) clause (1).  
128.21     (15) (o) Develop and implement special projects that 
128.22  maximize reimbursements and result in the recovery of money to 
128.23  the state.  For the purpose of recovering state money, the 
128.24  commissioner may enter into contracts with third parties.  Any 
128.25  recoveries that result from projects or contracts entered into 
128.26  under this paragraph shall be deposited in the state treasury 
128.27  and credited to a special account until the balance in the 
128.28  account reaches $1,000,000.  When the balance in the account 
128.29  exceeds $1,000,000, the excess shall be transferred and credited 
128.30  to the general fund.  All money in the account is appropriated 
128.31  to the commissioner for the purposes of this paragraph. 
128.32     (16) (p) Have the authority to make direct payments to 
128.33  facilities providing shelter to women and their children 
128.34  according to section 256D.05, subdivision 3.  Upon the written 
128.35  request of a shelter facility that has been denied payments 
128.36  under section 256D.05, subdivision 3, the commissioner shall 
129.1   review all relevant evidence and make a determination within 30 
129.2   days of the request for review regarding issuance of direct 
129.3   payments to the shelter facility.  Failure to act within 30 days 
129.4   shall be considered a determination not to issue direct payments.
129.5      (17) (q) Have the authority to establish and enforce the 
129.6   following county reporting requirements:  
129.7      (a) (1) the commissioner shall establish fiscal and 
129.8   statistical reporting requirements necessary to account for the 
129.9   expenditure of funds allocated to counties for human services 
129.10  programs.  When establishing financial and statistical reporting 
129.11  requirements, the commissioner shall evaluate all reports, in 
129.12  consultation with the counties, to determine if the reports can 
129.13  be simplified or the number of reports can be reduced.; 
129.14     (b) (2) the county board shall submit monthly or quarterly 
129.15  reports to the department as required by the commissioner.  
129.16  Monthly reports are due no later than 15 working days after the 
129.17  end of the month.  Quarterly reports are due no later than 30 
129.18  calendar days after the end of the quarter, unless the 
129.19  commissioner determines that the deadline must be shortened to 
129.20  20 calendar days to avoid jeopardizing compliance with federal 
129.21  deadlines or risking a loss of federal funding.  Only reports 
129.22  that are complete, legible, and in the required format shall be 
129.23  accepted by the commissioner.; 
129.24     (c) (3) if the required reports are not received by the 
129.25  deadlines established in clause (b) (2), the commissioner may 
129.26  delay payments and withhold funds from the county board until 
129.27  the next reporting period.  When the report is needed to account 
129.28  for the use of federal funds and the late report results in a 
129.29  reduction in federal funding, the commissioner shall withhold 
129.30  from the county boards with late reports an amount equal to the 
129.31  reduction in federal funding until full federal funding is 
129.32  received.; 
129.33     (d) (4) a county board that submits reports that are late, 
129.34  illegible, incomplete, or not in the required format for two out 
129.35  of three consecutive reporting periods is considered 
129.36  noncompliant.  When a county board is found to be noncompliant, 
130.1   the commissioner shall notify the county board of the reason the 
130.2   county board is considered noncompliant and request that the 
130.3   county board develop a corrective action plan stating how the 
130.4   county board plans to correct the problem.  The corrective 
130.5   action plan must be submitted to the commissioner within 45 days 
130.6   after the date the county board received notice of 
130.7   noncompliance.; 
130.8      (e) (5) the final deadline for fiscal reports or amendments 
130.9   to fiscal reports is one year after the date the report was 
130.10  originally due.  If the commissioner does not receive a report 
130.11  by the final deadline, the county board forfeits the funding 
130.12  associated with the report for that reporting period and the 
130.13  county board must repay any funds associated with the report 
130.14  received for that reporting period.; 
130.15     (f) (6) the commissioner may not delay payments, withhold 
130.16  funds, or require repayment under paragraph (c) clause (3) or 
130.17  (e) (5) if the county demonstrates that the commissioner failed 
130.18  to provide appropriate forms, guidelines, and technical 
130.19  assistance to enable the county to comply with the 
130.20  requirements.  If the county board disagrees with an action 
130.21  taken by the commissioner under paragraph (c) clause (3) or 
130.22  (e) (5), the county board may appeal the action according to 
130.23  sections 14.57 to 14.69.; and 
130.24     (g) (7) counties subject to withholding of funds under 
130.25  paragraph (c) clause (3) or forfeiture or repayment of funds 
130.26  under paragraph (e) clause (5) shall not reduce or withhold 
130.27  benefits or services to clients to cover costs incurred due to 
130.28  actions taken by the commissioner under paragraph (c) clause (3) 
130.29  or (e) (5). 
130.30     (18) (r) Allocate federal fiscal disallowances or sanctions 
130.31  for audit exceptions when federal fiscal disallowances or 
130.32  sanctions are based on a statewide random sample for the foster 
130.33  care program under title IV-E of the Social Security Act, United 
130.34  States Code, title 42, in direct proportion to each county's 
130.35  title IV-E foster care maintenance claim for that period. 
130.36     (19) (s) Be responsible for ensuring the detection, 
131.1   prevention, investigation, and resolution of fraudulent 
131.2   activities or behavior by applicants, recipients, and other 
131.3   participants in the human services programs administered by the 
131.4   department. 
131.5      (20) (t) Require county agencies to identify overpayments, 
131.6   establish claims, and utilize all available and cost-beneficial 
131.7   methodologies to collect and recover these overpayments in the 
131.8   human services programs administered by the department. 
131.9      (21) (u) Have the authority to administer a drug rebate 
131.10  program for drugs purchased pursuant to the prescription drug 
131.11  program established under section 256.955 after the 
131.12  beneficiary's satisfaction of any deductible established in the 
131.13  program.  The commissioner shall require a rebate agreement from 
131.14  all manufacturers of covered drugs as defined in section 
131.15  256B.0625, subdivision 13.  Rebate agreements for prescription 
131.16  drugs delivered on or after July 1, 2002, must include rebates 
131.17  for individuals covered under the prescription drug program who 
131.18  are under 65 years of age.  For each drug, the amount of the 
131.19  rebate shall be equal to the rebate as defined for purposes of 
131.20  the federal rebate program in United States Code, title 42, 
131.21  section 1396r-8(c)(1).  The manufacturers must provide full 
131.22  payment within 30 days of receipt of the state invoice for the 
131.23  rebate within the terms and conditions used for the federal 
131.24  rebate program established pursuant to section 1927 of title XIX 
131.25  of the Social Security Act.  The manufacturers must provide the 
131.26  commissioner with any information necessary to verify the rebate 
131.27  determined per drug.  The rebate program shall utilize the terms 
131.28  and conditions used for the federal rebate program established 
131.29  pursuant to section 1927 of title XIX of the Social Security Act.
131.30     (22) (v) Have the authority to administer the federal drug 
131.31  rebate program for drugs purchased under the medical assistance 
131.32  program as allowed by section 1927 of title XIX of the Social 
131.33  Security Act and according to the terms and conditions of 
131.34  section 1927.  Rebates shall be collected for all drugs that 
131.35  have been dispensed or administered in an outpatient setting and 
131.36  that are from manufacturers who have signed a rebate agreement 
132.1   with the United States Department of Health and Human Services. 
132.2      (23) (w) Have the authority to administer a supplemental 
132.3   drug rebate program for drugs purchased under the medical 
132.4   assistance program.  The commissioner may enter into 
132.5   supplemental rebate contracts with pharmaceutical manufacturers 
132.6   and may require prior authorization for drugs that are from 
132.7   manufacturers that have not signed a supplemental rebate 
132.8   contract.  Prior authorization of drugs shall be subject to the 
132.9   provisions of section 256B.0625, subdivision 13. 
132.10     (24) (x) Operate the department's communication systems 
132.11  account established in Laws 1993, First Special Session chapter 
132.12  1, article 1, section 2, subdivision 2, to manage shared 
132.13  communication costs necessary for the operation of the programs 
132.14  the commissioner supervises.  A communications account may also 
132.15  be established for each regional treatment center which operates 
132.16  communications systems.  Each account must be used to manage 
132.17  shared communication costs necessary for the operations of the 
132.18  programs the commissioner supervises.  The commissioner may 
132.19  distribute the costs of operating and maintaining communication 
132.20  systems to participants in a manner that reflects actual usage. 
132.21  Costs may include acquisition, licensing, insurance, 
132.22  maintenance, repair, staff time and other costs as determined by 
132.23  the commissioner.  Nonprofit organizations and state, county, 
132.24  and local government agencies involved in the operation of 
132.25  programs the commissioner supervises may participate in the use 
132.26  of the department's communications technology and share in the 
132.27  cost of operation.  The commissioner may accept on behalf of the 
132.28  state any gift, bequest, devise or personal property of any 
132.29  kind, or money tendered to the state for any lawful purpose 
132.30  pertaining to the communication activities of the department.  
132.31  Any money received for this purpose must be deposited in the 
132.32  department's communication systems accounts.  Money collected by 
132.33  the commissioner for the use of communication systems must be 
132.34  deposited in the state communication systems account and is 
132.35  appropriated to the commissioner for purposes of this section. 
132.36     (25) (y) Receive any federal matching money that is made 
133.1   available through the medical assistance program for the 
133.2   consumer satisfaction survey.  Any federal money received for 
133.3   the survey is appropriated to the commissioner for this 
133.4   purpose.  The commissioner may expend the federal money received 
133.5   for the consumer satisfaction survey in either year of the 
133.6   biennium. 
133.7      (26) (z) Designate community information and referral call 
133.8   centers and incorporate cost reimbursement claims from First 
133.9   Call Minnesota and Greater Twin Cities United Way the designated 
133.10  community information and referral call centers into the federal 
133.11  cost reimbursement claiming processes of the department 
133.12  according to federal law, rule, and regulations.  Existing 2-1-1 
133.13  information and referral centers provided by Greater Twin Cities 
133.14  United Way or existing call centers for which Greater Twin 
133.15  Cities United Way has legal authority to represent, shall be 
133.16  included in these designations upon review by the commissioner 
133.17  and assurance that these services are accredited and in 
133.18  compliance with national standards.  Any reimbursement received 
133.19  is appropriated to the commissioner and all designated 
133.20  information and referral centers shall be disbursed to First 
133.21  Call Minnesota and Greater Twin Cities United Way receive 
133.22  payments according to normal department payment 
133.23  schedules established by the commissioner upon final approval of 
133.24  allocation methodologies from the United States Department of 
133.25  Health and Human Services Division of Cost Allocation or other 
133.26  appropriate authorities. 
133.27     (27) (aa) Develop recommended standards for foster care 
133.28  homes that address the components of specialized therapeutic 
133.29  services to be provided by foster care homes with those services.
133.30     Sec. 3.  Minnesota Statutes 2002, section 256.01, is 
133.31  amended by adding a subdivision to read: 
133.32     Subd. 21.  [HOMELESS SERVICES.] The commissioner of human 
133.33  services may contract directly with nonprofit organizations 
133.34  providing homeless services in two or more counties. 
133.35     <b>[EFFECTIVE DATE.]</b> This section is effective immediately 
133.36  following final enactment. 
134.1      Sec. 4.  Minnesota Statutes 2002, section 256B.431, 
134.2   subdivision 37, is amended to read: 
134.3      Subd. 37.  [NURSING HOME RATE INCREASES EFFECTIVE JULY 1, 
134.4   2002.] For rate years beginning on or after July 1, 2002, the 
134.5   commissioner shall provide to each nursing home reimbursed under 
134.6   this section or section 256B.434 an increase in each case mix 
134.7   payment rate equal to the increase in the per-bed surcharge paid 
134.8   under section 256.9657, subdivision 1, paragraph (c), divided by 
134.9   365 and further divided by .80.  The increase under this 
134.10  subdivision shall be added following the determination of the 
134.11  payment rate for the home under this chapter.  The increase 
134.12  shall not be subject to any annual percentage increase.  If a 
134.13  facility has beds licensed for nursing home care and also has 
134.14  beds licensed for boarding care, the increase will be prorated 
134.15  by the ratio of beds licensed for nursing home care to the total 
134.16  number of licensed beds in the facility.  If the number of 
134.17  licensed beds in facilities that have both types of licensure 
134.18  changes during the year, the proration of the increase will be 
134.19  changed effective the first of the month following the change in 
134.20  the number of beds. 
134.21     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
134.22  256B.431, subdivision 38, is amended to read: 
134.23     Subd. 38.  [NURSING HOME RATE INCREASES EFFECTIVE IN FISCAL 
134.24  YEAR 2003.] Effective June 1, 2003, the commissioner shall 
134.25  provide to each nursing home reimbursed under this section or 
134.26  section 256B.434, an increase in each case mix payment rate 
134.27  equal to the increase in the per-bed surcharge paid under 
134.28  section 256.9657, subdivision 1, paragraph (d), divided by 365 
134.29  and further divided by .90.  The increase shall not be subject 
134.30  to any annual percentage increase.  The 30-day advance notice 
134.31  requirement in section 256B.47, subdivision 2, shall not apply 
134.32  to rate increases resulting from this section.  If a facility 
134.33  has beds licensed for nursing home care and also has beds 
134.34  licensed for boarding care, the increase will be prorated by the 
134.35  ratio of beds licensed for nursing home care to the total number 
134.36  of licensed beds in the facility.  If the number of licensed 
135.1   beds in facilities that have both types of licensure changes 
135.2   during the year, the proration of the increase will be changed 
135.3   effective the first of the month following the change in the 
135.4   number of beds.  The commissioner shall not adjust the rate 
135.5   increase under this subdivision unless the adjustment is greater 
135.6   than 1.5 percent of the monthly surcharge payment amount under 
135.7   section 256.9657, subdivision 4. 
135.8      Sec. 6.  [REPEALER.] 
135.9      Laws 2003, First Special Session chapter 14, article 3, 
135.10  section 56, is repealed effective immediately following final 
135.11  enactment. 
135.12                             ARTICLE 7 
135.13                            HEALTH CARE 
135.14     Section 1.  Minnesota Statutes 2002, section 62T.02, is 
135.15  amended by adding a subdivision to read: 
135.16     Subd. 3.  [SEASONAL EMPLOYEES.] A purchasing alliance may 
135.17  define eligible employees to include seasonal employees.  For 
135.18  purposes of this chapter, "seasonal employee" means an employee 
135.19  who is employed on a full-time basis for at least six months 
135.20  during the calendar year and is unemployed for no longer than 
135.21  four months during the calendar year.  If seasonal employees are 
135.22  included: 
135.23     (1) the alliance must not show bias in the selection of 
135.24  members based on the percentage of seasonal employees employed 
135.25  by an employer member; 
135.26     (2) prior to issuance or renewal, the employer must inform 
135.27  the alliance that it will include seasonal employees; 
135.28     (3) the employer must cover seasonal employees for the 
135.29  entire term of its plan year; and 
135.30     (4) the purchasing alliance may require an employer-member 
135.31  contribution of at least 50 percent of the cost of employee 
135.32  coverage during the months the seasonal employee is unemployed. 
135.33     Sec. 2.  Minnesota Statutes 2002, section 256B.02, 
135.34  subdivision 12, is amended to read: 
135.35     Subd. 12.  "Third-party payer" means a person, entity, or 
135.36  agency or government program that has a probable obligation to 
136.1   pay all or part of the costs of a medical assistance recipient's 
136.2   health services.  Third-party payer includes an entity under 
136.3   contract with the recipient to cover all or part of the 
136.4   recipient's medical costs. 
136.5      Sec. 3.  Minnesota Statutes 2002, section 256B.056, is 
136.6   amended by adding a subdivision to read: 
136.7      Subd. 8a.  [NOTICE.] The state agency must be given notice 
136.8   of monetary claims against a person, entity, or corporation that 
136.9   may be liable to pay all or part of all of the cost of medical 
136.10  care when the state agency has paid or becomes liable for the 
136.11  cost of that care.  Notice must be given as follows: 
136.12     (a) An applicant for medical assistance shall notify the 
136.13  state or local agency of any possible claims when the applicant 
136.14  submits the application.  A recipient of medical assistance 
136.15  shall notify the state or local agency of any possible claims 
136.16  when those claims arise. 
136.17     (b) A person providing medical care services to a recipient 
136.18  of medical assistance shall notify the state agency when the 
136.19  person has reason to believe that a third party may be liable 
136.20  for payment of the cost of medical care. 
136.21     (c) A party to a claim that may be assigned to the state 
136.22  agency under this section shall notify the state agency of its 
136.23  potential assignment claim in writing at each of the following 
136.24  stages of a claim: 
136.25     (1) when a claim is filed; 
136.26     (2) when an action is commenced; and 
136.27     (3) when a claim is concluded by payment, award, judgment, 
136.28  settlement, or otherwise. 
136.29     Every party involved in any stage of a claim under this 
136.30  subdivision is required to provide notice to the state agency at 
136.31  that stage of the claim.  However, when one of the parties to 
136.32  the claim provides notice at that stage, every other party to 
136.33  the claim is deemed to have provided the required notice for 
136.34  that stage of the claim.  If the required notice under this 
136.35  paragraph is not provided to the state agency, all parties to 
136.36  the claim are deemed to have failed to provide the required 
137.1   notice.  A party to the claim includes the injured person or the 
137.2   person's legal representative, the plaintiff, the defendants, or 
137.3   persons alleged to be responsible for compensating the injured 
137.4   person or plaintiff, and any other party to the cause of action 
137.5   or claim, regardless of whether the party knows the state agency 
137.6   has a potential or actual assignment claim. 
137.7      Sec. 4.  Minnesota Statutes 2002, section 256B.056, is 
137.8   amended by adding a subdivision to read: 
137.9      Subd. 8b.  [JOINDER OF STATE IN ACTIONS AGAINST THIRD 
137.10  PARTIES.] Any medical assistance recipient or the recipient's 
137.11  legal representative asserting a claim against a third party 
137.12  potentially liable for all or part of the recipient's medical 
137.13  costs shall join the state agency as a party to the claim. 
137.14     Sec. 5.  Minnesota Statutes 2002, section 256B.056, is 
137.15  amended by adding a subdivision to read: 
137.16     Subd. 8c.  [SETTLEMENT.] Pursuant to United States Code, 
137.17  title 42, section 1396k(b), no judgment, award, or settlement of 
137.18  any action or claim by or on behalf of a medical assistance 
137.19  recipient to recover damages from a third party potentially 
137.20  liable for all or part of the recipient's medical costs shall be 
137.21  acceded to or satisfied by the recipient or the recipient's 
137.22  legal representative or approved by the court without granting 
137.23  the state agency first recovery from the liable third party to 
137.24  the full extent of its medical expenditures, minus pro rata 
137.25  costs and attorney fees, regardless of whether the recipient has 
137.26  been fully compensated. 
137.27     Sec. 6.  Minnesota Statutes 2002, section 256L.04, 
137.28  subdivision 2, is amended to read: 
137.29     Subd. 2.  [COOPERATION IN ESTABLISHING THIRD-PARTY 
137.30  LIABILITY, PATERNITY, AND OTHER MEDICAL SUPPORT.] (a) To be 
137.31  eligible for MinnesotaCare, individuals and families must 
137.32  cooperate with the state agency to identify potentially liable 
137.33  third-party payers and assist the state in obtaining third-party 
137.34  payments.  "Cooperation" includes, but is not limited to, 
137.35  complying with the notice and settlement requirements in section 
137.36  256B.056, subdivisions 8a and 8c, identifying any third party 
138.1   who may be liable for care and services provided under 
138.2   MinnesotaCare to the enrollee, providing relevant information to 
138.3   assist the state in pursuing a potentially liable third party, 
138.4   and completing forms necessary to recover third-party payments. 
138.5      (b) A parent, guardian, relative caretaker, or child 
138.6   enrolled in the MinnesotaCare program must cooperate with the 
138.7   Department of Human Services and the local agency in 
138.8   establishing the paternity of an enrolled child and in obtaining 
138.9   medical care support and payments for the child and any other 
138.10  person for whom the person can legally assign rights, in 
138.11  accordance with applicable laws and rules governing the medical 
138.12  assistance program.  A child shall not be ineligible for or 
138.13  disenrolled from the MinnesotaCare program solely because the 
138.14  child's parent, relative caretaker, or guardian fails to 
138.15  cooperate in establishing paternity or obtaining medical support.
138.16     Sec. 7.  Minnesota Statutes 2002, section 549.02, is 
138.17  amended by adding a subdivision to read: 
138.18     Subd. 3.  [LIMITATION.] Notwithstanding subdivisions 1 and 
138.19  2, where the state agency is joined as a party according to 
138.20  section 256B.056, subdivision 8b, or brings an independent 
138.21  action to enforce its rights under section 256B.056, it shall 
138.22  not be liable for costs to any prevailing defendant. 
138.23     Sec. 8.  Minnesota Statutes 2002, section 549.04, is 
138.24  amended to read: 
138.25     549.04 [DISBURSEMENTS; TAXATION AND ALLOWANCE.] 
138.26     Subdivision 1.  [GENERALLY.] In every action in a district 
138.27  court, the prevailing party, including any public employee who 
138.28  prevails in an action for wrongfully denied or withheld 
138.29  employment benefits or rights, shall be allowed reasonable 
138.30  disbursements paid or incurred, including fees and mileage paid 
138.31  for service of process by the sheriff or by a private person.  
138.32     Subd. 2.  [LIMITATION.] Notwithstanding subdivision 1, 
138.33  where the state agency is joined as a party according to section 
138.34  256B.056, subdivision 8b, or brings an independent action to 
138.35  enforce its rights under section 256B.056, it shall not be 
138.36  liable for disbursements to any prevailing defendant.