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H.F. No. 1, 1st Engrossment - 2010 1st Special Session   Posted on May 17, 2010

1.1A bill for an act
1.2relating to the state budget; balancing proposed general fund spending and
1.3anticipated general fund revenue; modifying certain payment schedules to
1.4improve cash flow; making reductions in appropriations for E-12 education,
1.5higher education, environment and natural resources, energy and commerce,
1.6agriculture, economic development, transportation, public safety, state
1.7government, human services, and health; modifying calculation of state tax aids
1.8and credits; providing for deposit of certain receipts in the special revenue fund
1.9rather than the general fund; making changes to health and human services policy
1.10provisions including state health care programs, continuing care, children and
1.11family services, health care reform, Department of Health, public health, health
1.12plans; increasing fees; requiring reports; making supplemental and contingent
1.13appropriations and reductions for the Departments of Health and Human Services
1.14and other health-related boards and councils;amending Minnesota Statutes
1.152008, sections 3.9741, subdivision 2; 8.15, subdivision 3; 13.03, subdivision 10;
1.1613.3806, subdivision 13; 16C.23, subdivision 6; 62D.08, by adding a subdivision;
1.1762J.692, subdivision 4; 62Q.19, subdivision 1; 103B.101, subdivision 9;
1.18103I.681, subdivision 11; 116J.551, subdivision 1; 123B.75, subdivisions 5, 9, by
1.19adding a subdivision; 126C.48, subdivision 7; 127A.441; 127A.45, subdivisions
1.202, 3, 13, by adding a subdivision; 127A.46; 144.05, by adding a subdivision;
1.21144.226, subdivision 3; 144.293, subdivision 4; 144.603; 144.605, subdivisions
1.222, 3, by adding a subdivision; 144.608, subdivision 1; 144.651, subdivision 2;
1.23144.9504, by adding a subdivision; 144A.51, subdivision 5; 144D.03, subdivision
1.242; 144D.04, subdivision 2; 144E.37; 144G.06; 152.126, as amended; 190.32;
1.25214.40, subdivision 7; 246.18, by adding a subdivision; 254B.01, subdivision
1.262; 254B.02, subdivisions 1, 5; 254B.03, subdivision 4, by adding a subdivision;
1.27254B.05, subdivision 4; 254B.06, subdivision 2; 254B.09, subdivision 8; 256.01,
1.28by adding a subdivision; 256B.04, subdivision 14a; 256B.055, by adding a
1.29subdivision; 256B.056, subdivisions 3, 4; 256B.057, subdivision 9; 256B.0625,
1.30subdivisions 8, 8a, 8b, 18a, 22, 31, by adding subdivisions; 256B.0631,
1.31subdivisions 1, 3; 256B.0644, as amended; 256B.0915, by adding a subdivision;
1.32256B.19, subdivision 1c; 256B.69, subdivision 27, by adding a subdivision;
1.33256B.692, subdivision 1; 256B.76, subdivisions 2, 4; 256D.03, subdivision
1.343b; 256D.031, subdivision 5, as added; 256D.0515; 256I.05, by adding a
1.35subdivision; 256J.24, subdivision 6; 256L.07, by adding a subdivision; 256L.11,
1.36subdivision 6; 256L.12, subdivisions 5, 9; 256L.15, subdivision 1; 257.69,
1.37subdivision 2; 260C.331, subdivision 6; 273.1384, subdivision 6, as added;
1.38276.112; 289A.60, by adding a subdivision; 299C.48; 299E.02; 446A.086,
1.39subdivision 2, as amended; 469.177, subdivision 11; 517.08, subdivision 1c, as
2.1amended; 518.165, subdivision 3; 609.3241; 611.20, subdivision 3; Minnesota
2.2Statutes 2009 Supplement, sections 123B.54; 137.025, subdivision 1; 157.16,
2.3subdivision 3; 252.27, subdivision 2a; 256.969, subdivisions 2b, 3a; 256.975,
2.4subdivision 7; 256B.0625, subdivision 13h; 256B.0659, subdivision 11;
2.5256B.0911, subdivision 1a; 256B.441, subdivision 55; 256B.69, subdivisions
2.65a, 23; 256B.76, subdivision 1; 256B.766; 256D.03, subdivision 3, as amended;
2.7256J.425, subdivision 3; 256J.621; 256L.03, subdivision 5; 270.97; 289A.20,
2.8subdivision 4; 327.15, subdivision 3; 517.08, subdivision 1b; Laws 1994, chapter
2.9531, section 1; Laws 2005, First Special Session chapter 4, article 8, section 66,
2.10as amended; Laws 2009, chapter 79, article 3, section 18; article 5, sections
2.1117; 18; 22; 75, subdivision 1; 78, subdivision 5; article 8, sections 4; 51; 84;
2.12article 13, sections 3, subdivisions 1, as amended, 3, as amended, 4, as amended,
2.138, as amended; 4, subdivision 4, as amended; 5, subdivision 8, as amended;
2.14Laws 2009, chapter 96, article 1, section 24, subdivisions 2, 4, 5, 6, 7; article 2,
2.15section 67, subdivisions 2, 3, 4, 7, 9; article 3, section 21, subdivisions 2, 4, 5;
2.16article 4, section 12, subdivisions 2, 3, 4, 6; article 5, section 13, subdivisions
2.174, 6, 7, 9; article 6, section 11, subdivisions 2, 3, 4, 6, 7, 8, 9, 12; article 7,
2.18section 3, subdivision 2; Laws 2009, chapter 173, article 1, section 17; Laws
2.192010, chapter 200, article 1, sections 12, subdivisions 6, 7, 8; 16; 21; article 2,
2.20section 2, subdivisions 1, 4, 5, 8; Laws 2010, chapter 215, article 3, section 3,
2.21subdivision 6; article 13, section 6; proposing coding for new law in Minnesota
2.22Statutes, chapters 62D; 62E; 62Q; 137; 144; 144D; 246; 254B; 256; 256B; 477A;
2.23repealing Minnesota Statutes 2008, sections 144.607; 254B.02, subdivisions 2, 3,
2.244; 254B.09, subdivisions 4, 5, 7; 256D.03, subdivisions 3, 3a, 5, 6, 7, 8; Laws
2.252009, chapter 79, article 7, section 26, subdivision 3; Laws 2010, chapter 200,
2.26article 1, sections 12, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 18; 19.
2.27BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.28ARTICLE 1
2.29SUMMARY

2.30
Section 1. GENERAL FUND SUMMARY.
2.31    The amounts shown in this section summarize general fund direct and open
2.32appropriations, and transfers into the general fund from other funds, made in articles 2 to
2.3315, after forecast adjustments and after voiding certain allotment reductions.
2.34
2010
2011
Total
2.35
E-12 Education
$
(1,069,361,000)
$
(893,834,000)
$
(1,963,195,000)
2.36
Higher Education
(77,000)
(100,077,000)
(100,154,000)
2.37
2.38
Environment and Natural
Resources
(1,571,000)
(1,564,000)
(3,135,000)
2.39
Energy
(247,000)
(247,000)
(494,000)
2.40
Agriculture
(493,000)
(492,000)
(985,000)
2.41
Economic Development
(489,000)
(745,000)
(1,234,000)
2.42
Transportation
(1,649,000)
(11,649,000)
(13,298,000)
2.43
Public Safety
(79,000)
(79,000)
(158,000)
2.44
State Government
(1,694,000)
(1,820,000)
(3,514,000)
2.45
Health and Human Services
(74,704,000)
(83,154,000)
(157,858,000)
2.46
Tax Aids and Credits
(103,986,000)
(260,495,000)
(364,481,000)
3.1
Subtotal of Appropriations
(1,254,530,000)
(1,354,156,000)
(2,608,686,000)
3.2
Transfers In
40,418,000
40,000,000
80,418,000
3.3
Total
$
(1,294,948,000)
$
(1,394,156,000)
$
(2,689,104,000)

3.4    Sec. 2. ALLOTMENT REDUCTIONS VOID.
3.5The allotment reductions made by the commissioner of management and budget
3.6from July 1, 2009, to the effective date of this section are void.
3.7EFFECTIVE DATE.This section is effective the day following final enactment.

3.8ARTICLE 2
3.9CASH FLOW

3.10    Section 1. Minnesota Statutes 2008, section 127A.46, is amended to read:
3.11127A.46 CHANGE IN PAYMENT OF AIDS AND CREDITS.
3.12If the commissioner of management and budget determines that modifications in the
3.13payment schedule would reduce the need for state short-term borrowing, the commissioner
3.14shall may modify payments to districts according to this section. The modifications must
3.15begin no sooner than September 1 of each fiscal year, and must remain in effect until no
3.16later than May 30 of that same fiscal year. In calculating the payment to a district pursuant
3.17to section 127A.45, subdivision 3, the commissioner may subtract the sum specified in
3.18that subdivision, plus an additional amount no greater than the following:
3.19(1) the net cash balance in each of the district's operating funds on June 30 of the
3.20preceding fiscal year; minus
3.21(2) the product of $150 $700 times the number of resident pupil units in the
3.22preceding fiscal year; minus
3.23(3) the amount of payments made by the county treasurer during the preceding fiscal
3.24year, pursuant to section 276.11, which is considered revenue for the current school year.
3.25However, no additional amount shall be subtracted if the total of the net unappropriated
3.26fund balances in the district's four operating funds on June 30 of the preceding fiscal year,
3.27is less than the product of $350 $700 times the number of resident pupil units in the
3.28preceding fiscal year. The net cash balance must include all cash and investments, less
3.29certificates of indebtedness outstanding, and orders not paid for want of funds.
3.30A district may appeal the payment schedule established by this section according to
3.31the procedures established in section 127A.45, subdivision 4.

4.1    Sec. 2. Minnesota Statutes 2009 Supplement, section 137.025, subdivision 1, is
4.2amended to read:
4.3    Subdivision 1. Monthly payments. The commissioner of management and budget
4.4shall pay 1/12 of the annual appropriation to the University of Minnesota on by the 21st
4.525th day of each month. If the 21st 25th day of the month falls on a Saturday or Sunday,
4.6the monthly payment must be made on by the first business day immediately following
4.7the 21st 25th day of the month.

4.8    Sec. 3. Minnesota Statutes 2008, section 276.112, is amended to read:
4.9276.112 STATE PROPERTY TAXES; COUNTY TREASURER.
4.10On or before January 25 each year, for the period ending December 31 of the
4.11prior year, and on or before June 28 each year, for the period ending on the most recent
4.12settlement day determined in section 276.09, and on or before December 2 each year, for
4.13the period ending November 20 the estimated payment and settlement dates provided in
4.14this chapter for the settlement of taxes levied by school districts, the county treasurer must
4.15make full settlement with the county auditor according to sections 276.09, 276.10, and
4.16276.111 for all receipts of state property taxes levied under section 275.025, and must
4.17transmit those receipts to the commissioner of revenue by electronic means on the dates
4.18and according to the provisions applicable to distributions to school districts.
4.19EFFECTIVE DATE.This section is effective for distributions beginning October
4.201, 2010, and thereafter.

4.21    Sec. 4. Minnesota Statutes 2009 Supplement, section 289A.20, subdivision 4, is
4.22amended to read:
4.23    Subd. 4. Sales and use tax. (a) The taxes imposed by chapter 297A are due and
4.24payable to the commissioner monthly on or before the 20th day of the month following
4.25the month in which the taxable event occurred, or following another reporting period
4.26as the commissioner prescribes or as allowed under section 289A.18, subdivision 4,
4.27paragraph (f) or (g), except that:
4.28(1) use taxes due on an annual use tax return as provided under section 289A.11,
4.29subdivision 1
, are payable by April 15 following the close of the calendar year.; and
4.30(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
4.31or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
4.32imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
4.33commissioner monthly in the following manner:
5.1(i) On or before the 14th day of the month following the month in which the taxable
5.2event occurred, the vendor must remit to the commissioner 90 percent of the estimated
5.3liability for the month in which the taxable event occurred.
5.4(ii) On or before the 20th day of the month in which the taxable event occurs, the
5.5vendor must remit to the commissioner a prepayment for the month in which the taxable
5.6event occurs equal to 67 percent of the liability for the previous month.
5.7(iii) On or before the 20th day of the month following the month in which the taxable
5.8event occurred, the vendor must pay any additional amount of tax not previously remitted
5.9under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
5.10the vendor's liability for the month in which the taxable event occurred, the vendor may
5.11take a credit against the next month's liability in a manner prescribed by the commissioner.
5.12(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
5.13continue to make payments in the same manner, as long as the vendor continues having a
5.14liability of $120,000 or more during the most recent fiscal year ending June 30.
5.15(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
5.16payment in the first month that the vendor is required to make a payment under either item
5.17(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
5.18subsequent monthly payments in the manner provided in item (ii).
5.19(vi) For vendors making an accelerated payment under item (ii), for the first month
5.20that the vendor is required to make the accelerated payment, on the 20th of that month, the
5.21vendor will pay 100 percent of the liability for the previous month and a prepayment for
5.22the first month equal to 67 percent of the liability for the previous month.
5.23    (b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more
5.24during a fiscal year ending June 30 must remit the June liability for the next year in the
5.25following manner:
5.26    (1) Two business days before June 30 of the year, the vendor must remit 90 percent
5.27of the estimated June liability to the commissioner.
5.28    (2) On or before August 20 of the year, the vendor must pay any additional amount
5.29of tax not remitted in June.
5.30    (c) A vendor having a liability of:
5.31    (1) $20,000 or more in the fiscal year ending June 30, 2005; or
5.32    (2) (1) $10,000 or more in the, but less than $120,000 during a fiscal year ending
5.33June 30, 2006 2009, and fiscal years thereafter, must remit by electronic means all
5.34liabilities on returns due for periods beginning in the subsequent calendar year by
5.35electronic means on or before the 20th day of the month following the month in which the
5.36taxable event occurred, or on or before the 20th day of the month following the month in
6.1which the sale is reported under section 289A.18, subdivision 4, except for 90 percent of
6.2the estimated June liability, which is due two business days before June 30. The remaining
6.3amount of the June liability is due on August 20.; or
6.4(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
6.5thereafter, must remit by electronic means all liabilities in the manner provided in
6.6paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
6.7year, except for 90 percent of the estimated June liability, which is due two business days
6.8before June 30. The remaining amount of the June liability is due on August 20.
6.9(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
6.10religious beliefs from paying electronically shall be allowed to remit the payment by mail.
6.11The filer must notify the commissioner of revenue of the intent to pay by mail before
6.12doing so on a form prescribed by the commissioner. No extra fee may be charged to a
6.13person making payment by mail under this paragraph. The payment must be postmarked
6.14at least two business days before the due date for making the payment in order to be
6.15considered paid on a timely basis.
6.16(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
6.17under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
6.18chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
6.19paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
6.20be accelerated as provided in this subdivision.
6.21(f) At the start of the first calendar quarter at least 90 days after the cash flow
6.22account established in section 16A.152, subdivision 1, and the budget reserve account
6.23established in section 16A.152, subdivision 1a, reach the amounts listed in section
6.2416A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required
6.25under paragraph (a), clause (2), must be suspended. The commissioner of management
6.26and budget shall notify the commissioner of revenue when the accounts have reached
6.27the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a
6.28vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009,
6.29and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the
6.30commissioner on the 20th day of the month following the month in which the taxable
6.31event occurred. Payments of tax liabilities for taxable events occurring in June under
6.32paragraph (b) are not changed.
6.33EFFECTIVE DATE.This section is effective for taxes due and payable after
6.34September 1, 2010.

7.1    Sec. 5. Minnesota Statutes 2008, section 289A.60, is amended by adding a subdivision
7.2to read:
7.3    Subd. 31. Accelerated payment of monthly sales tax liability; penalty for
7.4underpayment. For payments made after September 1, 2010, if a vendor is required
7.5by section 289A.20, subdivision 4, paragraph (a), clause (2), item (i) or (ii), to make
7.6accelerated payments, then the penalty for underpayment is as follows:
7.7(a) For those vendors that must remit a 90 percent payment by the 14th day of
7.8the month following the month in which the taxable event occurred, as an estimation
7.9of monthly sales tax liabilities, including the liability of any fee or other tax that is to
7.10be reported on the same return as and paid with the chapter 297A taxes, for the month
7.11in which the taxable event occurred, the vendor shall pay a penalty equal to ten percent
7.12of the amount of liability that was required to be paid by the 14th day of the month, less
7.13the amount remitted by the 14th day of the month. The penalty must not be imposed,
7.14however, if the amount remitted by the 14th day of the month equals the least of: (1) 90
7.15percent of the liability for the month preceding the month in which the taxable event
7.16occurred; (2) 90 percent of the liability for the same month in the previous calendar year
7.17as the month in which the taxable event occurred; or (3) 90 percent of the average monthly
7.18liability for the previous calendar year.
7.19(b) For those vendors that, on or before the 20th day of the month in which the
7.20taxable event occurs, must remit to the commissioner a prepayment of sales tax liabilities
7.21for the month in which the taxable event occurs equal to 67 percent of the liabilities for the
7.22previous month, including the liability of any fee or other tax that is to be reported on the
7.23same return as and paid with the chapter 297A taxes, for the month in which the taxable
7.24event occurred, the vendor shall pay a penalty equal to ten percent of the amount of liability
7.25that was required to be paid by the 20th of the month, less the amount remitted by the 20th
7.26of the month. The penalty must not be imposed, however, if the amount remitted by the
7.2720th of the month equals the lesser of 67 percent of the liability for the month preceding
7.28the month in which the taxable event occurred or 67 percent of the liability of the same
7.29month in the previous calendar year as the month in which the taxable event occurred.
7.30EFFECTIVE DATE.This section is effective for taxes due and payable after
7.31September 1, 2010.

8.1ARTICLE 3
8.2E-12 EDUCATION

8.3    Section 1. Minnesota Statutes 2008, section 123B.75, is amended by adding a
8.4subdivision to read:
8.5    Subd. 1a. Definition. For the purposes of this section, "school district tax settlement
8.6revenue" means the current, delinquent, and manufactured home property tax receipts
8.7collected by the county and distributed to the school district.
8.8EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

8.9    Sec. 2. Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:
8.10    Subd. 5. Levy recognition. (a) "School district tax settlement revenue" means the
8.11current, delinquent, and manufactured home property tax receipts collected by the county
8.12and distributed to the school district.
8.13(b) For fiscal year 2004 and later years 2009 and 2010, in June of each year, the
8.14school district must recognize as revenue, in the fund for which the levy was made, the
8.15lesser of:
8.16(1) the sum of May, June, and July school district tax settlement revenue received in
8.17that calendar year, plus general education aid according to section 126C.13, subdivision
8.184
, received in July and August of that calendar year; or
8.19(2) the sum of:
8.20(i) 31 percent of the referendum levy certified according to section 126C.17, in
8.21calendar year 2000; and
8.22(ii) the entire amount of the levy certified in the prior calendar year according to
8.23section 124D.86, subdivision 4, for school districts receiving revenue under sections
8.24124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
8.25(a), and 3
, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
8.26subdivision 6
; plus
8.27(iii) zero percent of the amount of the levy certified in the prior calendar year for the
8.28school district's general and community service funds, plus or minus auditor's adjustments,
8.29not including the levy portions that are assumed by the state, that remains after subtracting
8.30the referendum levy certified according to section 126C.17 and the amount recognized
8.31according to item (ii).
8.32(b) For fiscal year 2011 and later years, in June of each year, the school district must
8.33recognize as revenue, in the fund for which the levy was made, the lesser of:
9.1(1) the sum of May, June, and July school district tax settlement revenue received in
9.2that calendar year, plus general education aid according to section 126C.13, subdivision
9.34, received in July and August of that calendar year; or
9.4(2) the sum of:
9.5(i) the greater of 48.6 percent of the referendum levy certified according to section
9.6126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
9.7according to section 126C.17 in calendar year 2000; plus
9.8(ii) the entire amount of the levy certified in the prior calendar year according to
9.9section 124D.86, subdivision 4, for school districts receiving revenue under sections
9.10124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
9.11(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
9.12subdivision 6; plus
9.13(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
9.14school district's general and community service funds, plus or minus auditor's adjustments,
9.15not including the levy portions that are assumed by the state, that remains after subtracting
9.16the referendum levy certified according to section 126C.17 and the amount recognized
9.17according to item (ii).
9.18EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

9.19    Sec. 3. Minnesota Statutes 2008, section 123B.75, subdivision 9, is amended to read:
9.20    Subd. 9. Commissioner shall specify fiscal year. The commissioner shall specify
9.21the fiscal year or years to which the revenue from any aid or tax levy is applicable if
9.22Minnesota Statutes do not so specify. The commissioner must report to the chairs and
9.23ranking minority members of the house of representatives and senate committees with
9.24jurisdiction over education finance by January 15 of each year any adjustments under this
9.25subdivision in the previous year.

9.26    Sec. 4. Minnesota Statutes 2008, section 126C.48, subdivision 7, is amended to read:
9.27    Subd. 7. Reporting. For each tax settlement, the county auditor shall report to each
9.28school district by fund, the district tax settlement revenue defined in section 123B.75,
9.29subdivision 5
, paragraph (a) 1a, on the form specified in section 276.10. The county auditor
9.30shall send to the district a copy of the spread levy report specified in section 275.124.
9.31EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

10.1    Sec. 5. Minnesota Statutes 2008, section 127A.441, is amended to read:
10.2127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
10.3    Each year, the state aids payable to any school district for that fiscal year that are
10.4recognized as revenue in the school district's general and community service funds shall
10.5be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
10.6prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2)
10.7the amount the district recognized as revenue for the current fiscal year pursuant to section
10.8123B.75, subdivision 5 , paragraph (a) or (b). For purposes of making the aid adjustments
10.9under this section, the amount the district recognizes as revenue for either the prior fiscal
10.10year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
10.11shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
10.12districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
10.13126C.41, subdivisions 1, 2, and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2;
10.14126C.457 ; and 126C.48, subdivision 6. Payment from the permanent school fund shall not
10.15be adjusted pursuant to this section. The school district shall be notified of the amount of
10.16the adjustment made to each payment pursuant to this section.
10.17EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

10.18    Sec. 6. Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:
10.19    Subd. 2. Definitions. (a) The term "Other district receipts" means payments by
10.20county treasurers pursuant to section 276.10, apportionments from the school endowment
10.21fund pursuant to section 127A.33, apportionments by the county auditor pursuant to
10.22section 127A.34, subdivision 2, and payments to school districts by the commissioner of
10.23revenue pursuant to chapter 298.
10.24(b) The term "Cumulative amount guaranteed" means the product of
10.25(1) the cumulative disbursement percentage shown in subdivision 3; times
10.26(2) the sum of
10.27(i) the current year aid payment percentage of the estimated aid and credit
10.28entitlements paid according to subdivision 13; plus
10.29(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
10.30(iii) the other district receipts.
10.31(c) The term "Payment date" means the date on which state payments to districts
10.32are made by the electronic funds transfer method. If a payment date falls on a Saturday,
10.33a Sunday, or a weekday which is a legal holiday, the payment shall be made on the
10.34immediately preceding business day. The commissioner may make payments on dates
11.1other than those listed in subdivision 3, but only for portions of payments from any
11.2preceding payment dates which could not be processed by the electronic funds transfer
11.3method due to documented extenuating circumstances.
11.4(d) The current year aid payment percentage equals 90 73 in fiscal year 2010, 70
11.5in fiscal year 2011, and 90 in fiscal years 2012 and later.
11.6EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

11.7    Sec. 7. Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:
11.8    Subd. 3. Payment dates and percentages. (a) For fiscal year 2004 and later, The
11.9commissioner shall pay to a district on the dates indicated an amount computed as follows:
11.10the cumulative amount guaranteed minus the sum of (a) (1) the district's other district
11.11receipts through the current payment, and (b) (2) the aid and credit payments through the
11.12immediately preceding payment. For purposes of this computation, the payment dates and
11.13the cumulative disbursement percentages are as follows:
11.14
Payment date
Percentage
11.15
Payment 1
July 15:
5.5
11.16
Payment 2
July 30:
8.0
11.17
Payment 3
August 15:
17.5
11.18
Payment 4
August 30:
20.0
11.19
Payment 5
September 15:
22.5
11.20
Payment 6
September 30:
25.0
11.21
Payment 7
October 15:
27.0
11.22
Payment 8
October 30:
30.0
11.23
Payment 9
November 15:
32.5
11.24
Payment 10
November 30:
36.5
11.25
Payment 11
December 15:
42.0
11.26
Payment 12
December 30:
45.0
11.27
Payment 13
January 15:
50.0
11.28
Payment 14
January 30:
54.0
11.29
Payment 15
February 15:
58.0
11.30
Payment 16
February 28:
63.0
11.31
Payment 17
March 15:
68.0
11.32
Payment 18
March 30:
74.0
11.33
Payment 19
April 15:
78.0
11.34
Payment 20
April 30:
85.0
11.35
Payment 21
May 15:
90.0
11.36
Payment 22
May 30:
95.0
11.37
Payment 23
June 20:
100.0
12.1(b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the
12.2commissioner shall pay to a district on the dates indicated an amount computed as follows:
12.3
12.4
Payment 3
August 15: the final adjustment for the prior fiscal year for the state paid
property tax credits established in section 273.1392
12.5
12.6
Payment 4
August 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
12.7
12.8
Payment 6
September 30: one-third of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
12.9
12.10
Payment 8
October 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
12.11(c) (b) In addition to the amounts paid under paragraph (a), for fiscal year 2005 and
12.12later, the commissioner shall pay to a district on the dates indicated an amount computed
12.13as follows:
12.14
12.15
Payment 3
August 15: the final adjustment for the prior fiscal year for the state paid
property tax credits established in section 273.1392
12.16
12.17
Payment 4
August 30: 30 percent of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
12.18
12.19
Payment 6
September 30: 40 percent of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
12.20
12.21
Payment 8
October 30: 30 percent of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
12.22EFFECTIVE DATE.This section is effective the day following final enactment
12.23and applies to fiscal years 2010 and later.

12.24    Sec. 8. Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision
12.25to read:
12.26    Subd. 7b. Advance final payment. (a) Notwithstanding subdivisions 3 and 7, if the
12.27current year aid payment percentage, under subdivision 2, is less than 90, then a school
12.28district or charter school exceeding its expenditure limitations under section 123B.83 as of
12.29June 30 of the prior fiscal year may receive a portion of its final payment for the current
12.30fiscal year on June 20, if requested by the district or charter school. The amount paid
12.31under this subdivision must not exceed the lesser of:
12.32(1) the difference between 90 percent and the current year payment percentage in
12.33subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or
12.34charter school's general education aid plus the aid adjustment in section 127A.50 for
12.35the current fiscal year; or
12.36(2) the amount by which the district's or charter school's net negative unreserved
12.37general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the
12.38district or charter school's expenditures for that fiscal year.
13.1(b) The state total advance final payment under this subdivision for any year must
13.2not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final
13.3payment for each eligible district must be reduced proportionately.
13.4EFFECTIVE DATE.This section is effective the day following final enactment
13.5and applies to fiscal years 2010 and later.

13.6    Sec. 9. Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:
13.7    Subd. 13. Aid payment percentage. Except as provided in subdivisions 11, 12, 12a,
13.8and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
13.9120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392,
13.10shall be paid at the current year aid payment percentage of the estimated entitlement during
13.11the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated
13.12entitlement for special education excess cost aid under section 125A.79 for fiscal year
13.132005 equals 70 percent of the district's entitlement for the second prior fiscal year. For the
13.14purposes of this subdivision, a district's estimated entitlement for special education excess
13.15cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the
13.16district's entitlement for the current fiscal year. The final adjustment payment, according
13.17to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual
13.18data, minus the payments made during the fiscal year of the entitlement.

13.19    Sec. 10. Laws 2009, chapter 96, article 1, section 24, subdivision 2, is amended to read:
13.20    Subd. 2. General education aid. For general education aid under Minnesota
13.21Statutes, section 126C.13, subdivision 4:
13.22
13.23
$
5,195,504,000
4,291,422,000
.....
2010
13.24
13.25
$
5,626,994,000
4,776,884,000
.....
2011
13.26The 2010 appropriation includes $555,864,000 $553,591,000 for 2009 and
13.27$4,639,640,000 $3,737,831,000 for 2010.
13.28The 2011 appropriation includes $500,976,000 $1,363,306,000 for 2010 and
13.29$5,126,018,000 $3,413,578,000 for 2011.

13.30    Sec. 11. Laws 2009, chapter 96, article 6, section 11, subdivision 6, is amended to read:
13.31    Subd. 6. Educate parents partnership. For the educate parents partnership under
13.32Minnesota Statutes, section 124D.129:
14.1
$
50,00049,000
.....
2010
14.2
$
50,00049,000
.....
2011
14.3Any balance in the first year does not cancel but is available in the second year.

14.4    Sec. 12. Laws 2009, chapter 96, article 6, section 11, subdivision 7, is amended to read:
14.5    Subd. 7. Kindergarten entrance assessment initiative and intervention
14.6program. For the kindergarten entrance assessment initiative and intervention program
14.7under Minnesota Statutes, section 124D.162:
14.8
$
287,000281,000
.....
2010
14.9
$
287,000281,000
.....
2011
14.10Any balance in the first year does not cancel but is available in the second year.

14.11    Sec. 13. Laws 2009, chapter 96, article 7, section 3, subdivision 2, is amended to read:
14.12    Subd. 2. Department. (a) For the Department of Education:
14.13
14.14
$
20,943,000
20,147,600
.....
2010
14.15
14.16
$
20,943,000
19,811,000
.....
2011
14.17Any balance in the first year does not cancel but is available in the second year.
14.18(b) $260,000 each year is for the Minnesota Children's Museum.
14.19(c) $41,000 each year is for the Minnesota Academy of Science.
14.20(d) $632,000 $618,000 each year is for the Board of Teaching. Any balance in the
14.21first year does not cancel but is available in the second year.
14.22(e) $171,000 $167,000 each year is for the Board of School Administrators. Any
14.23balance in the first year does not cancel but is available in the second year.
14.24(f) $40,000 each year $10,000 is for an early hearing loss intervention coordinator
14.25under Minnesota Statutes, section 125A.63, subdivision 5. This appropriation is for
14.26fiscal year 2010 only. If the department expends federal funds to employ a hearing
14.27loss coordinator under Minnesota Statutes, section 125A.63, subdivision 5, then the
14.28appropriation under this paragraph is reallocated for purposes of employing a world
14.29languages coordinator.
14.30(g) $50,000 each year is for the Duluth Children's Museum.
14.31(h) None of the amounts appropriated under this subdivision may be used for
14.32Minnesota's Washington, D.C., office.
14.33(i) The expenditures of federal grants and aids as shown in the biennial budget
14.34document and its supplements are approved and appropriated and shall be spent as
15.1indicated. The commissioner must provide, to the K-12 Education Finance Division in
15.2the house of representatives and the E-12 Budget Division in the senate, details about the
15.3distribution of state incentive grants, education technology state grants, teacher incentive
15.4funds, and statewide data system funds as outlined in the supplemental federal funds
15.5submission dated March 25, 2009.

15.6ARTICLE 4
15.7E-12 EDUCATION FORECAST ADJUSTMENTS

15.8    Section 1. Minnesota Statutes 2009 Supplement, section 123B.54, is amended to read:
15.9123B.54 DEBT SERVICE APPROPRIATION.
15.10    (a) $9,109,000 in fiscal year 2009, $7,948,000 in fiscal year 2010, $9,275,000 in
15.11fiscal year 2011, $9,574,000 $17,161,000 in fiscal year 2012, and $8,904,000 $19,175,000
15.12in fiscal year 2013 and later are appropriated from the general fund to the commissioner of
15.13education for payment of debt service equalization aid under section 123B.53.
15.14    (b) The appropriations in paragraph (a) must be reduced by the amount of any
15.15money specifically appropriated for the same purpose in any year from any state fund.
15.16EFFECTIVE DATE.This section is effective July 1, 2010, and supersedes any
15.17contrary provision in 2010 H.F. No. 3329, regardless of its date of final enactment.

15.18    Sec. 2. Laws 2009, chapter 96, article 1, section 24, subdivision 4, is amended to read:
15.19    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
15.20127A.49 :
15.21
15.22
$
1,175,000
1,000,000
.....
2010
15.23
15.24
$
1,034,000
1,132,000
.....
2011
15.25The 2010 appropriation includes $140,000 for 2009 and $1,035,000 $860,000 for
15.262010.
15.27The 2011 appropriation includes $115,000 $317,000 for 2010 and $919,000
15.28$815,000 for 2011.

15.29    Sec. 3. Laws 2009, chapter 96, article 1, section 24, subdivision 5, is amended to read:
15.30    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
15.31Statutes, section 123A.485:
16.1
$
854,000 684,000
.....
2010
16.2
$
927,000 576,000
.....
2011
16.3The 2010 appropriation includes $0 for 2009 and $854,000 $684,000 for 2010.
16.4The 2011 appropriation includes $94,000 $252,000 for 2010 and $833,000 $324,000
16.5for 2011.

16.6    Sec. 4. Laws 2009, chapter 96, article 1, section 24, subdivision 6, is amended to read:
16.7    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
16.8Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
16.9
16.10
$
17,250,000
12,861,000
.....
2010
16.11
16.12
$
17,889,000
16,157,000
.....
2011
16.13The 2010 appropriation includes $1,647,000 $1,067,000 for 2009 and $15,603,000
16.14$11,794,000 for 2010.
16.15The 2011 appropriation includes $1,733,000 $4,362,000for 2010 and $16,156,000
16.16$11,795,000 for 2011.

16.17    Sec. 5. Laws 2009, chapter 96, article 1, section 24, subdivision 7, is amended to read:
16.18    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
16.19under Minnesota Statutes, section 123B.92, subdivision 9:
16.20
16.21
$
22,159,000
17,297,000
.....
2010
16.22
16.23
$
22,712,000
19,729,000
.....
2011
16.24The 2010 appropriation includes $2,077,000 for 2009 and $20,082,000 $15,220,000
16.25for 2010.
16.26The 2011 appropriation includes $2,231,000 $5,629,000 for 2010 and $20,481,000
16.27$14,100,000 for 2011.

16.28    Sec. 6. Laws 2009, chapter 96, article 2, section 67, subdivision 2, is amended to read:
16.29    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
16.30Statutes, section 124D.11, subdivision 4:
16.31
16.32
$
40,453,000
34,833,000
.....
2010
16.33
16.34
$
44,775,000
44,938,000
.....
2011
17.1The 2010 appropriation includes $3,704,000 for 2009 and $36,749,000 $31,129,000
17.2for 2010.
17.3The 2011 appropriation includes $4,083,000 $11,513,000 for 2010 and $40,692,000
17.4$33,425,000 for 2011.

17.5    Sec. 7. Laws 2009, chapter 96, article 2, section 67, subdivision 3, is amended to read:
17.6    Subd. 3. Charter school startup aid. For charter school startup cost aid under
17.7Minnesota Statutes, section 124D.11:
17.8
17.9
$
1,488,000
1,218,000
.....
2010
17.10
17.11
$
1,064,000
743,000
.....
2011
17.12The 2010 appropriation includes $202,000 for 2009 and $1,286,000 $1,016,000
17.13for 2010.
17.14The 2011 appropriation includes $142,000 $375,000 for 2010 and $922,000
17.15$368,000 for 2011.

17.16    Sec. 8. Laws 2009, chapter 96, article 2, section 67, subdivision 4, is amended to read:
17.17    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
17.18124D.86, subdivision 5 :
17.19
17.20
$
65,358,000
50,812,000
.....
2010
17.21
17.22
$
65,484,000
61,782,000
.....
2011
17.23The 2010 appropriation includes $6,110,000 $5,832,000 for 2009 and $59,248,000
17.24$44,980,000 for 2010.
17.25The 2011 appropriation includes $6,583,000 $16,636,000 for 2010 and $58,901,000
17.26$45,146,000 for 2011.

17.27    Sec. 9. Laws 2009, chapter 96, article 2, section 67, subdivision 7, is amended to read:
17.28    Subd. 7. Success for the future. For American Indian success for the future grants
17.29under Minnesota Statutes, section 124D.81:
17.30
17.31
$
2,137,000
1,774,000
.....
2010
17.32
17.33
$
2,137,000
2,072,000
.....
2011
17.34The 2010 appropriation includes $213,000 for 2009 and $1,924,000 $1,561,000
17.35for 2010.
18.1The 2011 appropriation includes $213,000 $576,000 for 2010 and $1,924,000
18.2$1,496,000 for 2011.

18.3    Sec. 10. Laws 2009, chapter 96, article 2, section 67, subdivision 9, is amended to read:
18.4    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
18.5Statutes, section 124D.83:
18.6
18.7
$
2,030,000
1,702,000
.....
2010
18.8
18.9
$
2,211,000
2,119,000
.....
2011
18.10The 2010 appropriation includes $191,000 for 2009 and $1,839,000 $1,511,000
18.11for 2010.
18.12The 2011 appropriation includes $204,000 $558,000 for 2010 and $2,007,000
18.13$1,561,000 for 2011.

18.14    Sec. 11. Laws 2009, chapter 96, article 3, section 21, subdivision 2, is amended to read:
18.15    Subd. 2. Special education; regular. For special education aid under Minnesota
18.16Statutes, section 125A.75:
18.17
18.18
$
734,071,000
609,003,000
.....
2010
18.19
18.20
$
781,497,000
749,248,000
.....
2011
18.21The 2010 appropriation includes $71,947,000 for 2009 and $662,124,000
18.22$537,056,000 for 2010.
18.23The 2011 appropriation includes $73,569,000 $198,637,000 for 2010 and
18.24$707,928,000 $550,611,000 for 2011.

18.25    Sec. 12. Laws 2009, chapter 96, article 3, section 21, subdivision 4, is amended to read:
18.26    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
18.27services under Minnesota Statutes, section 125A.75, subdivision 1:
18.28
$
258,000 224,000
.....
2010
18.29
$
282,000 282,000
.....
2011
18.30The 2010 appropriation includes $24,000 for 2009 and $234,000 $200,000 for 2010.
18.31The 2011 appropriation includes $26,000 $73,000 for 2010 and $256,000 $209,000
18.32for 2011.

18.33    Sec. 13. Laws 2009, chapter 96, article 3, section 21, subdivision 5, is amended to read:
19.1    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
19.2Statutes, section 125A.79, subdivision 7:
19.3
19.4
$
110,871,000
96,926,000
.....
2010
19.5
19.6
$
110,877,000
108,410,000
.....
2011
19.7The 2010 appropriation includes $37,046,000 for 2009 and $73,825,000 $59,880,000
19.8for 2010.
19.9The 2011 appropriation includes $37,022,000 $50,967,000 for 2010 and $73,855,000
19.10$57,443,000 for 2011.

19.11    Sec. 14. Laws 2009, chapter 96, article 4, section 12, subdivision 2, is amended to read:
19.12    Subd. 2. Health and safety revenue. For health and safety aid according to
19.13Minnesota Statutes, section 123B.57, subdivision 5:
19.14
$
161,000 132,000
.....
2010
19.15
$
160,000 135,000
.....
2011
19.16The 2010 appropriation includes $10,000 for 2009 and $151,000 $122,000 for 2010.
19.17The 2011 appropriation includes $16,000 $44,000 for 2010 and $144,000 $91,000
19.18for 2011.

19.19    Sec. 15. Laws 2009, chapter 96, article 4, section 12, subdivision 3, is amended to read:
19.20    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
19.21Statutes, section 123B.53, subdivision 6:
19.22
19.23
$
7,948,000
6,608,000
.....
2010
19.24
19.25
$
9,275,000
8,204,000
.....
2011
19.26The 2010 appropriation includes $851,000 for 2009 and $7,097,000 $5,757,000
19.27for 2010.
19.28The 2011 appropriation includes $788,000 $2,128,000 for 2010 and $8,487,000
19.29$6,076,000 for 2011.

19.30    Sec. 16. Laws 2009, chapter 96, article 4, section 12, subdivision 4, is amended to read:
19.31    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
19.32according to Minnesota Statutes, section 123B.59, subdivision 1:
20.1
20.2
$
19,287,000
16,008,000
.....
2010
20.3
20.4
$
19,287,000
18,708,000
.....
2011
20.5The 2010 appropriation includes $1,928,000 for 2009 and $17,359,000 $14,080,000
20.6for 2010.
20.7The 2011 appropriation includes $1,928,000 $5,207,000 for 2010 and $17,359,000
20.8$13,501,000 for 2011.

20.9    Sec. 17. Laws 2009, chapter 96, article 4, section 12, subdivision 6, is amended to read:
20.10    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
20.11Minnesota Statutes, section 123B.591, subdivision 4:
20.12
20.13
$
2,302,000
1,918,000
.....
2010
20.14
20.15
$
2,073,000
2,146,000
.....
2011
20.16The 2010 appropriation includes $260,000 for 2009 and $2,042,000 $1,658,000
20.17for 2010.
20.18The 2011 appropriation includes $226,000 $613,000 for 2010 and $1,847,000
20.19$1,533,000 for 2011.

20.20    Sec. 18. Laws 2009, chapter 96, article 5, section 13, subdivision 4, is amended to read:
20.21    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
20.22section 124D.118:
20.23
20.24
$
1,098,000
1,104,000
.....
2010
20.25
20.26
$
1,120,000
1,126,000
.....
2011

20.27    Sec. 19. Laws 2009, chapter 96, article 5, section 13, subdivision 6, is amended to read:
20.28    Subd. 6. Basic system support. For basic system support grants under Minnesota
20.29Statutes, section 134.355:
20.30
20.31
$
13,570,000
11,264,000
.....
2010
20.32
20.33
$
13,570,000
13,162,000
.....
2011
20.34The 2010 appropriation includes $1,357,000 for 2009 and $12,213,000 $9,907,000
20.35for 2010.
21.1The 2011 appropriation includes $1,357,000 $3,663,000 for 2010 and $12,213,000
21.2$9,499,000 for 2011.

21.3    Sec. 20. Laws 2009, chapter 96, article 5, section 13, subdivision 7, is amended to read:
21.4    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
21.5Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
21.6
21.7
$
1,300,000
1,079,000
.....
2010
21.8
21.9
$
1,300,000
1,261,000
.....
2011
21.10The 2010 appropriation includes $130,000 for 2009 and $1,170,000 $949,000 for
21.112010.
21.12The 2011 appropriation includes $130,000 $351,000 for 2010 and $1,170,000
21.13$910,000 for 2011.

21.14    Sec. 21. Laws 2009, chapter 96, article 5, section 13, subdivision 9, is amended to read:
21.15    Subd. 9. Regional library telecommunications aid. For regional library
21.16telecommunications aid under Minnesota Statutes, section 134.355:
21.17
21.18
$
2,300,000
1,909,000
.....
2010
21.19
21.20
$
2,300,000
2,231,000
.....
2011
21.21The 2010 appropriation includes $230,000 for 2009 and $2,070,000 $1,679,000
21.22for 2010.
21.23The 2011 appropriation includes $230,000 $621,000 for 2010 and $2,070,000
21.24$1,610,000 for 2011.

21.25    Sec. 22. Laws 2009, chapter 96, article 6, section 11, subdivision 2, is amended to read:
21.26    Subd. 2. School readiness. For revenue for school readiness programs under
21.27Minnesota Statutes, sections 124D.15 and 124D.16:
21.28
21.29
$
10,095,000
8,379,000
.....
2010
21.30
21.31
$
10,095,000
9,792,000
.....
2011
21.32The 2010 appropriation includes $1,009,000 for 2009 and $9,086,000 $7,370,000
21.33for 2010.
21.34The 2011 appropriation includes $1,009,000 $2,725,000 for 2010 and $9,086,000
21.35$7,067,000 for 2011.

22.1    Sec. 23. Laws 2009, chapter 96, article 6, section 11, subdivision 3, is amended to read:
22.2    Subd. 3. Early childhood family education aid. For early childhood family
22.3education aid under Minnesota Statutes, section 124D.135:
22.4
22.5
$
22,955,000
19,005,000
.....
2010
22.6
22.7
$
22,547,000
21,460,000
.....
2011
22.8The 2010 appropriation includes $3,020,000 for 2009 and $19,935,000 $15,985,000
22.9for 2010.
22.10The 2011 appropriation includes $2,214,000 $5,911,000 for 2010 and $20,333,000
22.11$15,549,000 for 2011.

22.12    Sec. 24. Laws 2009, chapter 96, article 6, section 11, subdivision 4, is amended to read:
22.13    Subd. 4. Health and developmental screening aid. For health and developmental
22.14screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
22.15
22.16
$
3,694,000
2,922,000
.....
2010
22.17
22.18
$
3,800,000
3,425,000
.....
2011
22.19The 2010 appropriation includes $367,000 for 2009 and $3,327,000 $2,555,000
22.20for 2010.
22.21The 2011 appropriation includes $369,000 $945,000 for 2010 and $3,431,000
22.22$2,480,000 for 2011.

22.23    Sec. 25. Laws 2009, chapter 96, article 6, section 11, subdivision 8, is amended to read:
22.24    Subd. 8. Community education aid. For community education aid under
22.25Minnesota Statutes, section 124D.20:
22.26
$
585,000 476,000
.....
2010
22.27
$
467,000 473,000
.....
2011
22.28The 2010 appropriation includes $73,000 for 2009 and $512,000 $403,000 for 2010.
22.29The 2011 appropriation included $56,000 $148,000 for 2010 and $411,000 $325,000
22.30for 2011.

22.31    Sec. 26. Laws 2009, chapter 96, article 6, section 11, subdivision 9, is amended to read:
22.32    Subd. 9. Adults with disabilities program aid. For adults with disabilities
22.33programs under Minnesota Statutes, section 124D.56:
23.1
$
710,000 588,000
.....
2010
23.2
$
710,000688,000
.....
2011
23.3The 2010 appropriation includes $71,000 $69,000 for 2009 and $639,000 $519,000
23.4for 2010.
23.5The 2011 appropriation includes $71,000 $191,000 for 2010 and $639,000 $497,000
23.6for 2011.

23.7    Sec. 27. Laws 2009, chapter 96, article 6, section 11, subdivision 12, is amended to
23.8read:
23.9    Subd. 12. Adult basic education aid. For adult basic education aid under
23.10Minnesota Statutes, section 124D.531:
23.11
23.12
$
42,975,000
35,671,000
.....
2010
23.13
23.14
$
44,258,000
42,732,000
.....
2011
23.15The 2010 appropriation includes $4,187,000 for 2009 and $38,788,000 $31,484,000
23.16for 2010.
23.17The 2011 appropriation includes $4,309,000 $11,644,000 for 2010 and $39,949,000
23.18$31,088,000 for 2011.

23.19ARTICLE 5
23.20HIGHER EDUCATION

23.21
Section 1. SUMMARY OF APPROPRIATIONS.
23.22The amounts shown in this section summarize direct appropriations, by fund, made
23.23in this article.
23.24
2010
2011
Total
23.25
General
$
(77,000)
$
(100,077,000)
$
(100,154,000)

23.26
Sec. 2. APPROPRIATIONS.
23.27The sums shown in the columns marked "Appropriations" are added to or, if shown
23.28in parentheses, subtracted from the appropriations in Laws 2009, chapter 95, article 1, to
23.29the agencies and for the purposes specified in this article. The appropriations are from the
23.30general fund, or another named fund, and are available for the fiscal years indicated for
23.31each purpose. The figures "2010" and "2011" used in this article mean that the addition
23.32to or subtraction from the appropriation listed under them is available for the fiscal year
23.33ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
24.1reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
24.2day following final enactment.
24.3
APPROPRIATIONS
24.4
Available for the Year
24.5
Ending June 30
24.6
2010
2011

24.7
24.8
Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION
$
(77,000)
$
(77,000)
24.9This reduction is from the appropriation for
24.10agency administration.

24.11
24.12
24.13
Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
$
-0-
$
(50,000,000)
24.14$2,079,000 of the reduction in 2011 is from
24.15the central offices and shared services unit
24.16appropriation. None of these reductions may
24.17be charged back or allocated to the campuses.
24.18$47,921,000 of the reduction in 2011
24.19is from the operations and maintenance
24.20appropriation.
24.21For fiscal years 2012 and 2013, the base for
24.22operations and maintenance is $580,802,000
24.23each year.

24.24
24.25
Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
24.26
Subdivision 1.Total Appropriation
$
-0-
$
(50,000,000)
24.27The appropriation reductions for each
24.28purpose are shown in the following
24.29subdivisions.
24.30
Subd. 2.Operations and Maintenance
-0-
(44,606,000)
24.31For fiscal years 2012 and 2013, the base for
24.32operations and maintenance is $578,370,000
24.33each year.
24.34
Subd. 3.Special Appropriations
25.1
(a) Agriculture and Extension Service
-0-
(3,858,000)
25.2
(b) Health Sciences
-0-
(389,000)
25.3$26,000 of the 2011 reduction is from the St.
25.4Cloud family practice residency program.
25.5
(c) Institute of Technology
-0-
(102,000)
25.6
(d) System Special
-0-
(454,000)
25.7
25.8
(e) University of Minnesota and Mayo
Foundation Partnership
-0-
(591,000)

25.9ARTICLE 6
25.10ENVIRONMENT AND NATURAL RESOURCES

25.11
Section 1. SUMMARY OF APPROPRIATIONS.
25.12The amounts shown in this section summarize changes to direct appropriations, by
25.13fund, made in this article.
25.14
2010
2011
Total
25.15
General
$
(1,571,000)
$
(1,564,000)
$
(3,135,000)

25.16
Sec. 2. APPROPRIATIONS.
25.17The sums shown in the columns marked "Appropriations" are added to or, if shown
25.18in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 1, to
25.19the agencies and for the purposes specified in this article. The appropriations are from the
25.20general fund, or another named fund, and are available for the fiscal years indicated for
25.21each purpose. The figures "2010" and "2011" used in this article mean that the addition to
25.22or subtraction from the appropriation listed under them are available for the fiscal year
25.23ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
25.24reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
25.25day following final enactment.
25.26
APPROPRIATIONS
25.27
Available for the Year
25.28
Ending June 30
25.29
2010
2011

25.30
Sec. 3. POLLUTION CONTROL AGENCY
25.31
Subdivision 1.Total Appropriation
$
(110,000)
$
(99,000)
26.1The appropriation reductions for each
26.2purpose are shown in the following
26.3subdivisions.
26.4
Subd. 2.Water
(98,000)
(38,000)
26.5The $98,000 reduction in fiscal year 2010
26.6is from the agency's activities to develop
26.7minimal impact design standards for urban
26.8stormwater runoff.
26.9
Subd. 3.Land
-0-
(30,000)
26.10The $30,000 reduction in the second year is
26.11from the environmental health tracking and
26.12biomonitoring activities of the agency.
26.13
26.14
Subd. 4.Environmental
Assistance and Cross Media
-0-
(16,000)
26.15
26.16
Subd. 5.Administrative
Support
(12,000)
(15,000)

26.17
Sec. 4. NATURAL RESOURCES
26.18
Subdivision 1.Total Appropriation
$
(1,375,000)
$
(1,379,000)
26.19The appropriation reductions for each
26.20purpose are shown in the following
26.21subdivisions.
26.22
26.23
Subd. 2.Lands and
Minerals
(30,000)
(30,000)
26.24
26.25
Subd. 3.Water Resources
Management
(84,000)
(84,000)
26.26
26.27
Subd. 4.Forest
Management
(188,000)
(188,000)
26.28$53,000 of the reduction each year is from
26.29activities supporting the Forest Resources
26.30Council with implementation of the
26.31Sustainable Forest Resources Act.
26.32
26.33
Subd. 5.Parks and Trails
Management
(420,000)
(422,000)
27.1
27.2
Subd. 6.Fish and Wildlife
Management
(265,000)
(265,000)
27.3$265,000 of the reduction each year is from
27.4activities for preserving, restoring, and
27.5enhancing grassland/wetland complexes on
27.6public or private land.
27.7
Subd. 7.Ecological Services
(46,000)
(47,000)
27.8
Subd. 8.Enforcement
(230,000)
(230,000)
27.9
27.10
Subd. 9.Operations
Support
(112,000)
(113,000)

27.11
Sec. 5. METROPOLITAN COUNCIL
$
(86,000)
$
(86,000)

27.12    Sec. 6. Laws 2010, chapter 215, article 3, section 3, subdivision 6, is amended to read:
27.13
Subd. 6.Transfers In
27.14(a) The amounts appropriated from the
27.15agency indirect costs account in the special
27.16revenue fund are reduced by $328,000 in
27.17fiscal year 2010 and $462,000 in fiscal year
27.182011, and those amounts must be transferred
27.19to the general fund by June 30, 2011. The
27.20appropriation reductions are onetime.
27.21(b) The commissioner of management and
27.22budget shall transfer $8,000,000 $48,000,000
27.23in fiscal year 2011 from the closed landfill
27.24investment fund in Minnesota Statutes,
27.25section 115B.421, to the general fund. The
27.26commissioner shall transfer $4,000,000
27.27$12,000,000 on July 1, 2013, and $4,000,000
27.28on July 1, in each of the years 2014, 2015,
27.292016, and 2017 from the general fund to the
27.30closed landfill investment fund. For the July
27.311, 2014, each transfer to the closed landfill
27.32investment fund, the commissioner shall
27.33determine the total amount of interest and
28.1other earnings that would have accrued to
28.2the fund if the transfers to the general fund
28.3under this paragraph had not been made and
28.4add this amount to the transfer. The amounts
28.5necessary for these transfers are appropriated
28.6from the general fund in the fiscal years
28.7specified for the transfers.

28.8ARTICLE 7
28.9ENERGY

28.10
Section 1. SUMMARY OF APPROPRIATIONS.
28.11The amounts shown in this section summarize direct appropriations, by fund, made
28.12in this article.
28.13
2010
2011
Total
28.14
General
$
(247,000)
$
(247,000)
$
(494,000)

28.15
Sec. 2. APPROPRIATIONS.
28.16The sums shown in the columns marked "Appropriations" are added to or, if shown
28.17in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 2, to
28.18the agencies and for the purposes specified in this article. The appropriations are from the
28.19general fund, or another named fund, and are available for the fiscal years indicated for
28.20each purpose. The figures "2010" and "2011" used in this article mean that the addition
28.21to or subtraction from the appropriation listed under them is available for the fiscal year
28.22ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
28.23reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
28.24day following final enactment.
28.25
APPROPRIATIONS
28.26
Available for the Year
28.27
Ending June 30
28.28
2010
2011

28.29
Sec. 3. DEPARTMENT OF COMMERCE
28.30
Subdivision 1.Total Appropriation
$
(247,000)
$
(247,000)
28.31The appropriation reductions for each
28.32purpose are shown in the following
28.33subdivisions.
29.1
Subd. 2.Administrative Services
(97,000)
(97,000)
29.2
Subd. 3.Market Assurance
(150,000)
(150,000)

29.3ARTICLE 8
29.4AGRICULTURE

29.5
Section 1. SUMMARY OF APPROPRIATIONS.
29.6The amounts shown in this section summarize direct appropriations, by fund, made
29.7in this article.
29.8
2010
2011
Total
29.9
General
$
(493,000)
$
(492,000)
$
(985,000)

29.10
Sec. 2. AGRICULTURAL APPROPRIATIONS.
29.11The sums shown in the columns marked "Appropriations" are added to or, if shown
29.12in parentheses, subtracted from the appropriations in Laws 2009, chapter 94, article 1, to
29.13the agencies and for the purposes specified in this article. The appropriations are from the
29.14general fund, or another named fund, and are available for the fiscal years indicated for
29.15each purpose. The figures "2010" and "2011" used in this article mean that the addition to
29.16or subtraction from the appropriations listed under them are available for the fiscal year
29.17ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
29.18reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
29.19day following final enactment.
29.20
APPROPRIATIONS
29.21
Available for the Year
29.22
Ending June 30
29.23
2010
2011

29.24
Sec. 3. DEPARTMENT OF AGRICULTURE
29.25
Subdivision 1.Total Appropriation
$
(493,000)
$
(492,000)
29.26The appropriation reductions for each
29.27purpose are shown in the following
29.28subdivisions.
29.29
Subd. 2.Protection Services
(228,000)
(228,000)
29.30$13,000 in fiscal year 2010 and $13,000 in
29.31fiscal year 2011 are reductions from plant
29.32pest surveys.
30.1
30.2
Subd. 3.Agricultural Marketing and
Development
(127,000)
(127,000)
30.3$77,000 in fiscal year 2010 and $77,000 in
30.4fiscal year 2011 are reductions for integrated
30.5pest management activities.
30.6
30.7
Subd. 4.Administration and Financial
Assistance
(138,000)
(137,000)
30.8$69,000 in fiscal year 2010 and $69,000 in
30.9fiscal year 2011 are reductions from the dairy
30.10and profitability enhancement and dairy
30.11business planning grant programs established
30.12under Laws 1997, chapter 216, section 7,
30.13subdivision 2, and Laws 2001, First Special
30.14Session chapter 2, section 9, subdivision 2.
30.15$1,000 in fiscal year 2010 is a reduction from
30.16the appropriation for the administration of
30.17the Feeding Minnesota Task Force.

30.18ARTICLE 9
30.19ECONOMIC DEVELOPMENT

30.20
Section 1. SUMMARY OF APPROPRIATIONS.
30.21The amounts shown in this section summarize direct appropriations, by fund, made
30.22in this article.
30.23
2010
2011
Total
30.24
General
$
(489,000)
$
(745,000)
$
(1,234,000)

30.25
Sec. 2. APPROPRIATIONS.
30.26The sums shown in the columns marked "Appropriations" are added to, or if shown
30.27in parentheses, subtracted from the appropriations in Laws 2009, chapter 78, article 1, to
30.28the agencies and for the purposes specified in this article. The appropriations are from the
30.29general fund, or another named fund, and are available for the fiscal years indicated for
30.30each purpose. The figures "2010" and "2011" used in this article mean that the addition
30.31to or subtraction from the appropriation listed under them is available for the fiscal year
30.32ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
31.1reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
31.2day following final enactment.
31.3
APPROPRIATIONS
31.4
Available for the Year
31.5
Ending June 30
31.6
2010
2011

31.7
31.8
Sec. 3. EMPLOYMENT AND ECONOMIC
DEVELOPMENT
31.9
Subdivision 1.Total Appropriation
$
(285,000)
$
(285,000)
31.10The appropriation reductions for each
31.11purpose are shown in the following
31.12subdivisions.
31.13
31.14
Subd. 2.Business and Community
Development
(87,000)
(87,000)
31.15$25,000 in 2010 and $25,000 in 2011 are
31.16from the appropriation for the Office of
31.17Science and Technology.
31.18
Subd. 3.Workforce Development
(115,000)
(115,000)
31.19$15,000 in 2010 and $15,000 in 2011 are
31.20from the appropriation for the Minnesota job
31.21skills partnership program under Minnesota
31.22Statutes, sections 116L.01 to 116L.17.
31.23$11,000 in 2010 and $11,000 in 2011 are from
31.24the appropriation for administrative expenses
31.25to programs that provide employment
31.26support services to persons with mental
31.27illness under Minnesota Statutes, sections
31.28268A.13 and 268A.14.
31.29$89,000 in 2010 and $89,000 in 2011 are
31.30from the appropriation for state services for
31.31the blind activities.
31.32
Subd. 4.State-Funded Administration
(83,000)
(83,000)

31.33
Sec. 4. HOUSING FINANCE AGENCY
$
-0-
$
(256,000)
32.1This reduction is from the appropriation to
32.2the Housing Finance Agency for the housing
32.3rehabilitation program under Minnesota
32.4Statutes, section 462A.05, subdivision 14,
32.5for rental housing developments.
32.6On or before June 30, 2010, the Housing
32.7Finance Agency shall transfer $256,000
32.8from the housing rehabilitation program in
32.9the housing development fund to the general
32.10fund.

32.11
32.12
Sec. 5. DEPARTMENT OF LABOR AND
INDUSTRY
$
(20,000)
$
(20,000)
32.13This reduction is from the general
32.14fund appropriation for labor
32.15standards/apprenticeship.

32.16
32.17
Sec. 6. BUREAU OF MEDIATION
SERVICES
$
(16,000)
$
(16,000)
32.18This reduction is from the general fund
32.19appropriation for mediation services.

32.20
32.21
Sec. 7. MINNESOTA HISTORICAL
SOCIETY
32.22
Subdivision 1.Total Appropriation
$
(168,000)
$
(168,000)
32.23The appropriation reductions for each
32.24purpose are shown in the following
32.25subdivisions.
32.26
Subd. 2.Education and Outreach
(96,000)
(96,000)
32.27
Subd. 3.Preservation and Access
(72,000)
(72,000)

32.28ARTICLE 10
32.29TRANSPORTATION

32.30
Section 1. SUMMARY OF APPROPRIATIONS.
32.31The amounts shown in this section summarize direct appropriations, by fund, made
32.32in this article.
33.1
2010
2011
Total
33.2
General
$
(1,649,000)
$
(11,649,000)
$
(13,298,000)

33.3
Sec. 2. APPROPRIATIONS.
33.4The sums shown in the columns marked "Appropriations" are added to or, if shown
33.5in parentheses, subtracted from the appropriations in Laws 2009, chapter 36, article 1, to
33.6the agencies and for the purposes specified in this article. The appropriations are from the
33.7general fund, or another named fund, and are available for the fiscal years indicated for
33.8each purpose. The figures "2010" and "2011" used in this article mean that the addition to
33.9or subtraction from the appropriation listed under them are available for the fiscal year
33.10ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
33.11reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
33.12day following final enactment.
33.13
APPROPRIATIONS
33.14
Available for the Year
33.15
Ending June 30
33.16
2010
2011

33.17
Sec. 3. TRANSPORTATION
33.18
Subdivision 1.Total Appropriation
$
(24,000)
$
(1,474,000)
33.19The appropriation reductions for each
33.20purpose are shown in the following
33.21subdivisions.
33.22
Subd. 2.Multimodal Systems
33.23
(a) Transit
(9,000)
(1,459,000)
33.24This reduction is to the Transit Improvement
33.25Administration appropriation.
33.26The base appropriation from the general fund
33.27for fiscal years 2012 and 2013 is $16,292,000
33.28each year.
33.29
(b) Freight
(9,000)
(9,000)
33.30This reduction is to the rail service plan
33.31appropriation.
33.32
(c) Electronic Communication
(6,000)
(6,000)
34.1This reduction is to the Roosevelt Tower
34.2appropriation.

34.3
Sec. 4. METROPOLITAN COUNCIL
34.4
Subdivision 1.Total Appropriation
$
(1,625,000)
$
(10,175,000)
34.5The appropriation reductions for each
34.6purpose are shown in the following
34.7subdivisions.
34.8
Subd. 2.Bus Transit
(1,506,000)
(10,056,000)
34.9This reduction is to the appropriation for bus
34.10system operations.
34.11The base appropriation for fiscal years 2012
34.12and 2013 is $59,796,000 each year.
34.13
Subd. 3.Rail Operations
(119,000)
(119,000)
34.14This reduction is to the appropriation for rail
34.15systems.
34.16The base appropriation for fiscal years 2012
34.17and 2013 is $5,174,000 each year.

34.18ARTICLE 11
34.19PUBLIC SAFETY

34.20
Section 1. SUMMARY OF APPROPRIATIONS.
34.21The amounts shown in this section summarize direct appropriations, by fund, made
34.22in this article.
34.23
2010
2011
Total
34.24
General
$
(79,000)
$
(79,000)
$
(158,000)

34.25
Sec. 2. APPROPRIATIONS.
34.26The sums shown in the columns marked "Appropriations" are added to or, if shown
34.27in parentheses, subtracted from the appropriations in Laws 2009, chapter 83, article 1, to
34.28the agencies and for the purposes specified in this article. The appropriations are from the
34.29general fund, or another named fund, and are available for the fiscal years indicated for
34.30each purpose. The figures "2010" and "2011" used in this article mean that the addition
34.31to or subtraction from the appropriation listed under them is available for the fiscal year
35.1ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
35.2reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
35.3day following final enactment.
35.4
APPROPRIATIONS
35.5
Available for the Year
35.6
Ending June 30
35.7
2010
2011

35.8
Sec. 3. HUMAN RIGHTS
$
(79,000)
$
(79,000)

35.9ARTICLE 12
35.10STATE GOVERNMENT

35.11
Section 1. SUMMARY OF APPROPRIATIONS.
35.12The amounts shown in this section summarize direct appropriations, by fund, made
35.13in this article.
35.14
2010
2011
Total
35.15
General
$
(1,694,000)
$
(1,820,000)
$
(3,514,000)

35.16
Sec. 2. APPROPRIATIONS.
35.17The sums shown in the columns marked "Appropriations" are added to or, if shown
35.18in parentheses, subtracted from, the appropriations in Laws 2009, chapter 101, article 1, to
35.19the agencies and for the purposes specified in this article. The appropriations are from the
35.20general fund, or another named fund, and are available for the fiscal years indicated for
35.21each purpose. The figures "2010" and "2011" used in this article mean that the addition
35.22to or subtraction from the appropriation listed under them is available for the fiscal year
35.23ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
35.24reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
35.25day following final enactment.
35.26
APPROPRIATIONS
35.27
Available for the Year
35.28
Ending June 30
35.29
2010
2011

35.30
35.31
Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR
$
(81,000)
$
(81,000)
35.32$13,000 of the reduction in each of
35.33fiscal years 2010 and 2011 are from the
36.1appropriation for necessary expenses in the
36.2normal performance of the governor's and
36.3lieutenant governor's duties for which no
36.4other reimbursement is provided.

36.5
36.6
Sec. 4. OFFICE OF ENTERPRISE
TECHNOLOGY
$
(130,000)
$
(130,000)
36.7$96,000 of the reduction in each of
36.8fiscal years 2010 and 2011 are from the
36.9appropriation for information technology
36.10security.

36.11
Sec. 5. ADMINISTRATION
$
(100,000)
$
(200,000)
36.12These reductions are from the Government
36.13and Citizen Services Program.
36.14$162,000 of the balance in the central stores
36.15fund is transferred to the general fund on
36.16or before June 30, 2010. This is a onetime
36.17transfer.
36.18The base appropriation from the general fund
36.19for the Government and Citizen Services
36.20Program for fiscal years 2012 and 2013 is
36.21$17,116,000 each year.

36.22
Sec. 6. MANAGEMENT AND BUDGET
$
(459,000)
$
(459,000)
36.23
Health Care Access Fund Loan
36.24(a) By June 30, 2011, the commissioner of
36.25management and budget shall transfer up to
36.26$40,000,000 from the balance of the health
36.27care access fund to the general fund.
36.28(b) By June 30, 2012, the commissioner of
36.29management and budget shall transfer the
36.30amount transferred in paragraph (a) from the
36.31general fund to the health care access fund.
37.1(c) The amounts necessary to complete
37.2these transfers are appropriated to the
37.3commissioner from each fund.

37.4
Sec. 7. REVENUE
$
(924,000)
$
(950,000)
37.5These reductions are from the tax system
37.6management program.

37.7ARTICLE 13
37.8AIDS, CREDITS, REFUNDS

37.9    Section 1. Minnesota Statutes 2008, section 273.1384, subdivision 6, as added by Laws
37.102010, chapter 215, article 13, section 2, is amended to read:
37.11    Subd. 6. Credit reduction. In 2011 and each year thereafter, the market value
37.12credit reimbursement amount for each taxing jurisdiction determined under this section
37.13is reduced by the dollar amount of the reduction in market value credit reimbursements
37.14for that taxing jurisdiction in 2010 due to unallotment the reductions announced prior
37.15to February 28, 2010, under section 16A.152 under section 477A.0132. No taxing
37.16jurisdiction's market value credit reimbursements are reduced to less than zero under
37.17this subdivision. The commissioner of revenue shall pay the annual market value credit
37.18reimbursement amounts, after reduction under this subdivision, to the affected taxing
37.19jurisdictions as provided in this section.
37.20EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
37.21thereafter.

37.22    Sec. 2. [477A.0132] 2009 AND 2010 AID REDUCTIONS.
37.23    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
37.24have the meanings given them in this subdivision.
37.25(b) The "2009 revenue base" for a statutory or home rule charter city is the sum of
37.26the city's certified property tax levy for taxes payable in 2009, plus the amount of local
37.27government aid under section 477A.013, subdivision 9, that the city was certified to
37.28receive in 2009, plus the amount of taconite aids under sections 298.28 and 298.282 that
37.29the city was certified to receive in 2009, including any amounts required to be placed in a
37.30special fund for distribution in a later year.
37.31(c) The "2009 revenue base" for a county is the sum of the county's certified property
37.32tax levy for taxes payable in 2009, plus the amount of county program aid under section
38.1477A.0124 that the county was certified to receive in 2009, plus the amount of taconite
38.2aids under sections 298.28 and 298.282 that the county was certified to receive in 2009,
38.3including any amounts required to be placed in a special fund for distribution in a later year.
38.4(d) The "2009 revenue base" for a town is the sum of the town's certified property
38.5tax levy for taxes payable in 2009, plus the amount of aid under section 477A.013 that
38.6the town was certified to receive in 2009, plus the amount of taconite aids under sections
38.7298.28 and 298.282 that the town was certified to receive in 2009, including any amounts
38.8required to be placed in a special fund for distribution in a later year.
38.9(e) "Population" means the population of the county, city, or town for 2007 based on
38.10information available to the commissioner of revenue in July 2009.
38.11(f) "Adjusted net tax capacity" means the amount of net tax capacity for the county,
38.12city, or town, computed using equalized market values according to section 477A.011,
38.13subdivision 20, for aid payable in 2009.
38.14(g) "Adjusted net tax capacity per capita" means the jurisdiction's adjusted net tax
38.15capacity divided by its population.
38.16    Subd. 2. 2009 aid reductions. (a) The commissioner of revenue must compute a
38.172009 aid reduction amount for each county.
38.18The aid reduction amount is zero for a county with a population of less than 5,000,
38.19and is zero for a county containing the Shooting Star Casino property that was removed
38.20from the tax rolls in 2009.
38.21For all other counties, the aid reduction amount is equal to 1.188968672 percent of
38.22the county's 2009 revenue base.
38.23The reduction amount is limited to the sum of the amount of county program aid
38.24under section 477A.0124 that the county was certified to receive in 2009, plus the amount
38.25of market value credit reimbursements under section 273.1384 payable to the county in
38.262009 before the reductions in this section.
38.27The reduction amount is applied first to reduce the amount payable to the county
38.28in 2009 as county program aid under section 477A.013 and then, if necessary, to reduce
38.29the amount payable to the county in 2009 as market value credit reimbursements under
38.30section 273.1384.
38.31No county's aid or reimbursements are reduced to less than zero under this section.
38.32(b) The commissioner of revenue must compute a 2009 aid reduction amount for
38.33each city.
38.34The aid reduction amount is zero for any city with a population of less than 1,000 that
38.35has an adjusted net tax capacity per capita amount less than the statewide average adjusted
38.36net tax capacity amount per capita for all cities. The aid reduction amount is also zero for
39.1a city located outside the seven-county metropolitan area, with a 2006 population greater
39.2than 3,500, a pre-1940 housing percentage greater than 29 percent, a commercial-industrial
39.3percentage less than nine percent, and a population decline percentage of zero based on the
39.4data used to certify the 2009 local government aid distribution under section 477A.013.
39.5For all other cities, the aid reduction amount is equal to 3.3127634 percent of the
39.6city's 2009 revenue base.
39.7The reduction amount is limited to the sum of the amount of local government aid
39.8under section 477A.013, subdivision 9, that the city was certified to receive in 2009, plus
39.9the amount of market value credit reimbursements under section 273.1384 payable to the
39.10city in 2009 before the reductions in this section.
39.11The reduction amount for a city is further limited to $22 per capita.
39.12The reduction amount is applied first to reduce the amount payable to the city in
39.132009 as local government aid under section 477A.013 and then, if necessary, to reduce
39.14the amount payable to the city in 2009 as market value credit reimbursements under
39.15section 273.1384.
39.16No city's aid or reimbursements are reduced to less than zero under this section.
39.17(c) The commissioner of revenue must compute a 2009 aid reduction amount for
39.18each town.
39.19The aid reduction amount is zero for any town with a population of less than 1,000
39.20that has an adjusted net tax capacity per capita amount less than the statewide average
39.21adjusted net tax capacity amount per capita for all towns.
39.22For all other towns, the aid reduction amount is equal to 1.735103 percent of the
39.23town's 2009 revenue base.
39.24The reduction amount is limited to $5 per capita.
39.25The reduction amount is applied to reduce the amount payable to the town in 2009
39.26as market value credit reimbursements under section 273.1384.
39.27No town's reimbursements are reduced to less than zero under this section.
39.28    Subd. 3. 2010 aid reductions. (a) The commissioner of revenue must compute a
39.292010 aid reduction amount for each county.
39.30The aid reduction amount is zero for a county with a population of less than 5,000,
39.31and is zero for a county containing the Shooting Star Casino property that was removed
39.32from the tax rolls in 2009.
39.33For all other counties, the aid reduction amount is equal to 2.41396687 percent of
39.34the county's 2009 revenue base.
39.35The reduction amount is limited to the sum of the amount of county program aid
39.36under section 477A.0124 that the county was certified to receive in 2009, plus the amount
40.1of market value credit reimbursements under section 273.1384 payable to the county in
40.22009 before the reductions in this section.
40.3The reduction amount is applied first to reduce the amount payable to the county
40.4in 2010 as county program aid under section 477A.013 and then, if necessary, to reduce
40.5the amount payable to the county in 2010 as market value credit reimbursements under
40.6section 273.1384.
40.7No county's aid or reimbursements are reduced to less than zero under this section.
40.8(b) The commissioner of revenue must compute a 2010 aid reduction amount for
40.9each city.
40.10The aid reduction amount is zero for any city with a population of less than 1,000
40.11that has an adjusted net tax capacity per capita amount less than the statewide average
40.12adjusted net tax capacity amount per capita for all cities.
40.13For all other cities, the aid reduction amount is equal to 7.643803025 percent of the
40.14city's 2009 revenue base.
40.15The reduction amount is limited to the sum of the amount of local government aid
40.16under section 477A.013, subdivision 9, that the city was certified to receive in 2010, plus
40.17the amount of market value credit reimbursements under section 273.1384 payable to the
40.18city in 2010 before the reductions in this section.
40.19The reduction amount for a city is further limited to $55 per capita.
40.20The reduction amount is applied first to reduce the amount payable to the city in
40.212010 as local government aid under section 477A.013 and then, if necessary, to reduce
40.22the amount payable to the city in 2010 as market value credit reimbursements under
40.23section 273.1384.
40.24No city's aid or reimbursements are reduced to less than zero under this section.
40.25(c) The commissioner of revenue must compute a 2010 aid reduction amount for
40.26each town.
40.27The aid reduction amount is zero for any town with a population of less than 1,000
40.28that has an adjusted net tax capacity per capita amount less than the statewide average
40.29adjusted net tax capacity amount per capita for all towns.
40.30For all other towns, the aid reduction amount is equal to 3.660798 percent of the
40.31town's 2009 revenue base.
40.32The reduction amount is limited to $10 per capita.
40.33The reduction amount is applied to reduce the amount payable to the town in 2010
40.34as market value credit reimbursements under section 273.1384.
40.35No town's reimbursements are reduced to less than zero under this section.
41.1EFFECTIVE DATE.This section is effective the day following final enactment
41.2and is retroactive for aids and credit reimbursements payable in 2009.

41.3    Sec. 3. Laws 2010, chapter 215, article 13, section 6, is amended to read:
41.4    Sec. 6. 477A.0133 ADDITIONAL 2010 AID AND CREDIT REDUCTIONS.
41.5    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
41.6have the meanings given them in this subdivision.
41.7(b) The "2010 revenue base" for a county is the sum of the county's certified property
41.8tax levy for taxes payable in 2010, plus the amount of county program aid under section
41.9477A.0124 that the county was certified to receive in 2010, plus the amount of taconite
41.10aids under sections 298.28 and 298.282 that the county was certified to receive in 2010
41.11including any amounts required to be placed in a special fund for distribution in a later year.
41.12(c) The "2010 revenue base" for a statutory or home rule charter city is the sum of
41.13the city's certified property tax levy for taxes payable in 2010, plus the amount of local
41.14government aid under section 477A.013, subdivision 9, that the city was certified to
41.15receive in 2010, plus the amount of taconite aids under sections 298.28 and 298.282 that
41.16the city was certified to receive in 2010 including any amounts required to be placed in a
41.17special fund for distribution in a later year.
41.18    Subd. 2. 2010 reductions; counties and cities. The commissioner of revenue
41.19must compute additional 2010 aid and credit reimbursement reduction amounts for each
41.20county and city under this section, after implementing any reduction of county program
41.21aid under section 477A.0124, local government aid under section 477A.013, or market
41.22value credit reimbursements under section 273.1384, to reflect the reduction of allotments
41.23under section 16A.152 reductions under section 477A.0132.
41.24The additional reduction amounts under this section are limited to the sum of the
41.25amount of county program aid under section 477A.0124, local government aid under
41.26section 477A.013, and market value credit reimbursements under section 273.1384
41.27payable to the county or city in 2010 before the reductions in this section, but after the
41.28reductions for unallotments under section 477A.0132.
41.29The reduction amount under this section is applied first to reduce the amount
41.30payable to the county or city in 2010 as market value credit reimbursements under section
41.31273.1384 , and then if necessary, to reduce the amount payable as either county program
41.32aid under section 477A.0124 in the case of a county, or local government aid under section
41.33477A.013 in the case of a city.
41.34No aid or reimbursement amount is reduced to less than zero under this section.
42.1The additional 2010 aid reduction amount for a county is equal to 1.82767 percent
42.2of the county's 2010 revenue base. The additional 2010 aid reduction amount for a city
42.3is equal to the lesser of (1) 3.4287 percent of the city's 2010 revenue base or (2) $28
42.4multiplied by the city's 2008 population.
42.5EFFECTIVE DATE.This section is effective the day following final enactment.

42.6    Sec. 4. REFUNDS AND CREDITS.
42.7    Subdivision 1. Political contribution credit. Notwithstanding the provisions of
42.8Minnesota Statutes, section 290.06, subdivision 23, or any other law to the contrary, the
42.9political contribution refund does not apply to contributions made after June 30, 2009,
42.10and before July 1, 2011.
42.11    Subd. 2. Property tax refund. For property tax refunds based on rent paid during
42.12calendar year 2009 only, but also applying to refunds based on property taxes payable in
42.132010 that include gross rent paid in 2009, the following rules apply:
42.14(1) "rent constituting property taxes" must be calculated by substituting "15 percent"
42.15for "19 percent" under Minnesota Statutes, section 290A.03, subdivision 11; and
42.16(2) "property taxes payable" must be calculated under Minnesota Statutes, section
42.17290A.03, subdivision 13, by substituting "15 percent" for "19 percent" in determining the
42.18portion of gross rent paid that is included in property taxes payable.
42.19    Subd. 3. Sustainable forest incentive program. The maximum sustainable forest
42.20incentive program payments under Minnesota Statutes, section 290C.07, per each Social
42.21Security number or state or federal business tax identification number must not exceed
42.22$100,000. The provisions of this subdivision apply only to payments made during fiscal
42.23year 2011.
42.24EFFECTIVE DATE.This section is effective the day following final enactment.

42.25    Sec. 5. LEVY VALIDATION.
42.26Any special levy under Minnesota Statutes, section 275.70, subdivision 5, clause
42.27(22), approved by the commissioner of revenue for taxes payable in 2010, is validated
42.28notwithstanding a later judicial decision that may affect the validity of unallotments that
42.29were announced in 2009. A local government may not levy under Minnesota Statutes,
42.30section 275.70, subdivision 5, clause (22), for taxes payable in 2011 for any retroactive
42.31reduction in aid and credit reimbursements for aids and credits payable in 2008 or 2009.
42.32EFFECTIVE DATE.This section is effective the day following final enactment.

43.1    Sec. 6. PAYMENT OF REFUNDS.
43.2(a) In paying refunds during fiscal year 2011 of overpayments of corporate
43.3franchise tax and of sales tax, including but not limited to capital equipment refunds,
43.4the commissioner of revenue shall delay paying a sufficient number of these refunds
43.5until fiscal year 2012 so that $152,000,000 less in refunds is paid in fiscal year 2011
43.6than otherwise would have been paid. This amount is in addition to any amount that the
43.7commissioner delays pursuant to administrative actions undertaken in connection with the
43.8unallotment announced in June 2009. Refunds delayed by the commissioner under this
43.9section are deemed to be due on July 1, 2011, for budget purposes, if the law otherwise
43.10would provide an earlier date. Any refunds paid after June 30, 2011, and before the close
43.11of fiscal year 2011 are deemed to be paid in fiscal year 2012 for budget purposes.
43.12(b) In carrying out the requirement of paragraph (a), the commissioner shall, to the
43.13extent possible, minimize delaying the payment of refunds that would result in payment of
43.14additional interest by the state. The commissioner may select refunds for delayed payment
43.15under this section or exempt refunds from this section in the manner that the commissioner
43.16determines, in the commissioner's sole discretion, has the least adverse effect on tax
43.17administration and taxpayer compliance.

43.18ARTICLE 14
43.19SPECIAL REVENUE FUND

43.20    Section 1. Minnesota Statutes 2008, section 3.9741, subdivision 2, is amended to read:
43.21    Subd. 2. Postsecondary Education Board. The legislative auditor may enter into
43.22an interagency agreement with the Board of Trustees of the Minnesota State Colleges and
43.23Universities to conduct financial audits, in addition to audits conducted under section
43.243.972, subdivision 2 . All payments received for audits requested by the board shall be
43.25added to the appropriation for deposited in the special revenue fund and appropriated to
43.26the legislative auditor to pay audit expenses.

43.27    Sec. 2. Minnesota Statutes 2008, section 8.15, subdivision 3, is amended to read:
43.28    Subd. 3. Agreements. (a) To facilitate the delivery of legal services, the attorney
43.29general may:
43.30(1) enter into agreements with executive branch agencies, political subdivisions, or
43.31quasi-state agencies to provide legal services for the benefit of the citizens of Minnesota;
43.32and
43.33(2) in addition to funds otherwise appropriated by the legislature, accept and spend
43.34funds received under any agreement authorized in clause (1) for the purpose set forth in
44.1clause (1), subject to a report of receipts to the chairs of the senate Finance Committee and
44.2the house of representatives Ways and Means Committee by October 15 each year.
44.3(b) When entering into an agreement for legal services, the attorney general must
44.4notify the committees responsible for funding the Office of the Attorney General. When
44.5the attorney general enters into an agreement with a state agency, the attorney general
44.6must also notify the committees responsible for funding that agency.
44.7Funds received under this subdivision must be deposited in the general an account in
44.8the special revenue fund and are appropriated to the attorney general for the purposes set
44.9forth in this subdivision.

44.10    Sec. 3. Minnesota Statutes 2008, section 13.03, subdivision 10, is amended to read:
44.11    Subd. 10. Costs for providing copies of data. Money may be collected by a
44.12responsible authority in a state agency for the actual cost to the agency of providing
44.13copies or electronic transmittal of government data is appropriated to the agency and
44.14added to the appropriations from which the costs were paid. When money collected for
44.15purposes of this section is of a magnitude sufficient to warrant a separate account in the
44.16state treasury, that money must be deposited in a fund other than the general fund and is
44.17appropriated to the agency.

44.18    Sec. 4. Minnesota Statutes 2008, section 16C.23, subdivision 6, is amended to read:
44.19    Subd. 6. State surplus property. The commissioner may do any of the following to
44.20dispose of state surplus property:
44.21(1) transfer it to or between state agencies;
44.22(2) transfer it to a governmental unit or nonprofit organization in Minnesota; or
44.23(3) sell it and charge a fee to cover expenses incurred by the commissioner in the
44.24disposal of the surplus property.
44.25The proceeds of the sale less the fee must be deposited in an account in a fund other
44.26than the general fund and are appropriated to the agency for whose account the sale was
44.27made, to be used and expended by that agency to purchase similar state property.

44.28    Sec. 5. Minnesota Statutes 2008, section 103B.101, subdivision 9, is amended to read:
44.29    Subd. 9. Powers and duties. In addition to the powers and duties prescribed
44.30elsewhere, the board shall:
44.31(1) coordinate the water and soil resources planning activities of counties, soil and
44.32water conservation districts, watershed districts, watershed management organizations,
45.1and any other local units of government through its various authorities for approval of
45.2local plans, administration of state grants, and by other means as may be appropriate;
45.3(2) facilitate communication and coordination among state agencies in cooperation
45.4with the Environmental Quality Board, and between state and local units of government,
45.5in order to make the expertise and resources of state agencies involved in water and soil
45.6resources management available to the local units of government to the greatest extent
45.7possible;
45.8(3) coordinate state and local interests with respect to the study in southwestern
45.9Minnesota under United States Code, title 16, section 1009;
45.10(4) develop information and education programs designed to increase awareness
45.11of local water and soil resources problems and awareness of opportunities for local
45.12government involvement in preventing or solving them;
45.13(5) provide a forum for the discussion of local issues and opportunities relating
45.14to water and soil resources management;
45.15(6) adopt an annual budget and work program that integrate the various functions
45.16and responsibilities assigned to it by law; and
45.17(7) report to the governor and the legislature by October 15 of each even-numbered
45.18year with an assessment of board programs and recommendations for any program
45.19changes and board membership changes necessary to improve state and local efforts
45.20in water and soil resources management.
45.21The board may accept grants, gifts, donations, or contributions in money, services,
45.22materials, or otherwise from the United States, a state agency, or other source to achieve
45.23an authorized purpose. The board may enter into a contract or agreement necessary or
45.24appropriate to accomplish the transfer. The board may receive and expend money to
45.25acquire conservation easements, as defined in chapter 84C, on behalf of the state and
45.26federal government consistent with the Camp Ripley's Army Compatible Use Buffer
45.27Project.
45.28Any money received is hereby deposited in an account in a fund other than the
45.29general fund and appropriated and dedicated for the purpose for which it is granted.

45.30    Sec. 6. Minnesota Statutes 2008, section 103I.681, subdivision 11, is amended to read:
45.31    Subd. 11. Permit fee schedule. (a) The commissioner of natural resources shall
45.32adopt a permit fee schedule under chapter 14. The schedule may provide minimum fees
45.33for various classes of permits, and additional fees, which may be imposed subsequent
45.34to the application, based on the cost of receiving, processing, analyzing, and issuing
46.1the permit, and the actual inspecting and monitoring of the activities authorized by the
46.2permit, including costs of consulting services.
46.3(b) A fee may not be imposed on a state or federal governmental agency applying
46.4for a permit.
46.5(c) The fee schedule may provide for the refund of a fee, in whole or in part, under
46.6circumstances prescribed by the commissioner of natural resources. Fees received must
46.7be deposited in the state treasury and credited to the general an account in the natural
46.8resources fund. Permit fees received are appropriated annually from the general natural
46.9resources fund to the commissioner of natural resources for the costs of inspecting and
46.10monitoring the activities authorized by the permit, including costs of consulting services.

46.11    Sec. 7. Minnesota Statutes 2008, section 116J.551, subdivision 1, is amended to read:
46.12    Subdivision 1. Grant account. A contaminated site cleanup and development grant
46.13account is created in the general special revenue fund. Money in the account may be used,
46.14as appropriated by law, to make grants as provided in section 116J.554 and to pay for the
46.15commissioner's costs in reviewing applications and making grants. Notwithstanding
46.16section 16A.28, money appropriated to the account for this program from any source
46.17is available until spent.

46.18    Sec. 8. Minnesota Statutes 2008, section 190.32, is amended to read:
46.19190.32 FEDERAL REIMBURSEMENT RECEIPTS.
46.20The Department of Military Affairs may deposit federal reimbursement receipts into
46.21the general fund an account in the special revenue fund, maintenance of military training
46.22facilities. These receipts are for services, supplies, and materials initially purchased by the
46.23Camp Ripley maintenance account.

46.24    Sec. 9. Minnesota Statutes 2008, section 257.69, subdivision 2, is amended to read:
46.25    Subd. 2. Guardian; legal fees. (a) The court may order expert witness and guardian
46.26ad litem fees and other costs of the trial and pretrial proceedings, including appropriate
46.27tests, to be paid by the parties in proportions and at times determined by the court. The
46.28court shall require a party to pay part of the fees of court-appointed counsel according
46.29to the party's ability to pay, but if counsel has been appointed the appropriate agency
46.30shall pay the party's proportion of all other fees and costs. The agency responsible for
46.31child support enforcement shall pay the fees and costs for blood or genetic tests in a
46.32proceeding in which it is a party, is the real party in interest, or is acting on behalf of the
46.33child. However, at the close of a proceeding in which paternity has been established under
47.1sections 257.51 to 257.74, the court shall order the adjudicated father to reimburse the
47.2public agency, if the court finds he has sufficient resources to pay the costs of the blood or
47.3genetic tests. When a party bringing an action is represented by the county attorney, no
47.4filing fee shall be paid to the court administrator.
47.5(b) In each fiscal year, the commissioner of management and budget shall deposit
47.6guardian ad litem reimbursements in the general special revenue fund and credit them to a
47.7separate account with the trial courts. The balance of this account is appropriated to the
47.8trial courts and does not cancel but is available until expended. Expenditures by the state
47.9court administrator's office from this account must be based on the amount of the guardian
47.10ad litem reimbursements received by the state from the courts in each judicial district.

47.11    Sec. 10. Minnesota Statutes 2008, section 260C.331, subdivision 6, is amended to read:
47.12    Subd. 6. Guardian ad litem fees. (a) In proceedings in which the court appoints a
47.13guardian ad litem pursuant to section 260C.163, subdivision 5, clause (a), the court may
47.14inquire into the ability of the parents to pay for the guardian ad litem's services and,
47.15after giving the parents a reasonable opportunity to be heard, may order the parents to
47.16pay guardian fees.
47.17(b) In each fiscal year, the commissioner of management and budget shall deposit
47.18guardian ad litem reimbursements in the general special revenue fund and credit them to a
47.19separate account with the trial courts. The balance of this account is appropriated to the
47.20trial courts and does not cancel but is available until expended. Expenditures by the state
47.21court administrator's office from this account must be based on the amount of the guardian
47.22ad litem reimbursements received by the state from the courts in each judicial district.

47.23    Sec. 11. Minnesota Statutes 2009 Supplement, section 270.97, is amended to read:
47.24270.97 DEPOSIT OF REVENUES.
47.25The commissioner shall deposit all revenues derived from the tax, interest, and
47.26penalties received from the county in the contaminated site cleanup and development
47.27account in the general special revenue fund and is annually appropriated to the
47.28commissioner of the Department of Employment and Economic Development, for the
47.29purposes of section 116J.551.

47.30    Sec. 12. Minnesota Statutes 2008, section 299C.48, is amended to read:
47.31299C.48 CONNECTION BY AUTHORIZED AGENCY; FEE,
47.32APPROPRIATION.
48.1(a) An agency authorized under section 299C.46, subdivision 3, may connect with
48.2and participate in the criminal justice data communications network upon approval
48.3of the commissioner of public safety; provided, that the agency shall first agree to pay
48.4installation charges as may be necessary for connection and monthly operational charges
48.5as may be established by the commissioner of public safety. Before participation by a
48.6criminal justice agency may be approved, the agency must have executed an agreement
48.7with the commissioner providing for security of network facilities and restrictions on
48.8access to data supplied to and received through the network.
48.9(b) In addition to any fee otherwise authorized, the commissioner of public safety
48.10shall impose a fee for providing secure dial-up or Internet access for criminal justice
48.11agencies and noncriminal justice agencies. The following monthly fees apply:
48.12(1) criminal justice agency accessing via Internet, $15;
48.13(2) criminal justice agency accessing via dial-up, $35;
48.14(3) noncriminal justice agency accessing via Internet, $35; and
48.15(4) noncriminal justice agency accessing via dial-up, $35.
48.16(c) The installation and monthly operational charges collected by the commissioner
48.17of public safety under paragraphs (a) and (b) must be deposited in an account in the special
48.18revenue fund and are annually appropriated to the commissioner to administer sections
48.19299C.46 to 299C.50.

48.20    Sec. 13. Minnesota Statutes 2008, section 299E.02, is amended to read:
48.21299E.02 CONTRACT SERVICES; APPROPRIATION.
48.22Fees charged for contracted security services provided by the Capitol Complex
48.23Security Division of the Department of Public Safety must be deposited in an account in
48.24the special revenue fund and are annually appropriated to the commissioner of public
48.25safety to administer and provide these services.

48.26    Sec. 14. Minnesota Statutes 2008, section 446A.086, subdivision 2, as amended by
48.27Laws 2010, chapter 290, section 14, is amended to read:
48.28    Subd. 2. Application. (a) This section provides a state guarantee of the payment of
48.29principal and interest on debt obligations if:
48.30    (1) the obligations are issued for new projects and are not issued for the purposes of
48.31refunding previous obligations;
48.32    (2) application to the Public Facilities Authority is made before issuance; and
48.33    (3) the obligations are covered by an agreement meeting the requirements of
48.34subdivision 3.
49.1    (b) Applications to be covered by the provisions of this section must be made in a
49.2form and contain the information prescribed by the authority. Applications are subject to
49.3either a fee of $500 for each bond issue requested by a county or governmental unit or the
49.4applicable fees under section 446A.087.
49.5    (c) Application fees paid under this section must be deposited in a separate credit
49.6enhancement bond guarantee account in the general special revenue fund. Money in the
49.7credit enhancement bond guarantee account is appropriated to the authority for purposes
49.8of administering this section.
49.9    (d) Neither the authority nor the commissioner is required to promulgate
49.10administrative rules under this section and the procedures and requirements established by
49.11the authority or commissioner under this section are not subject to chapter 14.

49.12    Sec. 15. Minnesota Statutes 2008, section 469.177, subdivision 11, is amended to read:
49.13    Subd. 11. Deduction for enforcement costs; appropriation. (a) The county
49.14treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to an
49.15authority or municipality. The county treasurer shall pay the amount deducted to the
49.16commissioner of management and budget for deposit in the state general an account in
49.17the special revenue fund.
49.18(b) The amounts deducted and paid under paragraph (a) are appropriated to the state
49.19auditor for the cost of (1) the financial reporting of tax increment financing information
49.20and (2) the cost of examining and auditing of authorities' use of tax increment financing
49.21as provided under section 469.1771, subdivision 1. Notwithstanding section 16A.28 or
49.22any other law to the contrary, this appropriation does not cancel and remains available
49.23until spent.
49.24(c) For taxes payable in 2002 and thereafter, the commissioner of revenue shall
49.25increase the percent in paragraph (a) to a percent equal to the product of the percent in
49.26paragraph (a) and the amount that the statewide tax increment levy for taxes payable in
49.272002 would have been without the class rate changes in this act and the elimination of
49.28the general education levy in this act divided by the statewide tax increment levy for
49.29taxes payable in 2002.

49.30    Sec. 16. Minnesota Statutes 2008, section 518.165, subdivision 3, is amended to read:
49.31    Subd. 3. Fees. (a) A guardian ad litem appointed under either subdivision 1 or 2
49.32may be appointed either as a volunteer or on a fee basis. If a guardian ad litem is appointed
49.33on a fee basis, the court shall enter an order for costs, fees, and disbursements in favor
49.34of the child's guardian ad litem. The order may be made against either or both parties,
50.1except that any part of the costs, fees, or disbursements which the court finds the parties
50.2are incapable of paying shall be borne by the state courts. The costs of court-appointed
50.3counsel to the guardian ad litem shall be paid by the county in which the proceeding is
50.4being held if a party is incapable of paying for them. Until the recommendations of the
50.5task force created in Laws 1999, chapter 216, article 7, section 42, are implemented, the
50.6costs of court-appointed counsel to a guardian ad litem in the Eighth Judicial District shall
50.7be paid by the state courts if a party is incapable of paying for them. In no event may the
50.8court order that costs, fees, or disbursements be paid by a party receiving public assistance
50.9or legal assistance or by a party whose annual income falls below the poverty line as
50.10established under United States Code, title 42, section 9902(2).
50.11(b) In each fiscal year, the commissioner of management and budget shall deposit
50.12guardian ad litem reimbursements in the general special revenue fund and credit them to a
50.13separate account with the trial courts. The balance of this account is appropriated to the
50.14trial courts and does not cancel but is available until expended. Expenditures by the state
50.15court administrator's office from this account must be based on the amount of the guardian
50.16ad litem reimbursements received by the state from the courts in each judicial district.

50.17    Sec. 17. Minnesota Statutes 2008, section 609.3241, is amended to read:
50.18609.3241 PENALTY ASSESSMENT AUTHORIZED.
50.19When a court sentences an adult convicted of violating section 609.322 or 609.324,
50.20while acting other than as a prostitute, the court shall impose an assessment of not less
50.21than $250 and not more than $500 for a violation of section 609.324, subdivision 2, or a
50.22misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall impose
50.23an assessment of not less than $500 and not more than $1,000. The mandatory minimum
50.24portion of the assessment is to be used for the purposes described in section 626.558,
50.25subdivision 2a
, and is in addition to the surcharge required by section 357.021, subdivision
50.266
. Any portion of the assessment imposed in excess of the mandatory minimum amount
50.27shall be forwarded to the general deposited in an account in the special revenue fund and
50.28is appropriated annually to the commissioner of public safety. The commissioner, with the
50.29assistance of the General Crime Victims Advisory Council, shall use money received under
50.30this section for grants to agencies that provide assistance to individuals who have stopped
50.31or wish to stop engaging in prostitution. Grant money may be used to provide these
50.32individuals with medical care, child care, temporary housing, and educational expenses.

50.33    Sec. 18. Minnesota Statutes 2008, section 611.20, subdivision 3, is amended to read:
51.1    Subd. 3. Reimbursement. In each fiscal year, the commissioner of management
51.2and budget shall deposit the payments in the general special revenue fund and credit them
51.3to a separate account with the Board of Public Defense. The amount credited to this
51.4account is appropriated to the Board of Public Defense.
51.5The balance of this account does not cancel but is available until expended.
51.6Expenditures by the board from this account for each judicial district public defense office
51.7must be based on the amount of the payments received by the state from the courts in
51.8each judicial district. A district public defender's office that receives money under this
51.9subdivision shall use the money to supplement office overhead payments to part-time
51.10attorneys providing public defense services in the district. By January 15 of each year,
51.11the Board of Public Defense shall report to the chairs and ranking minority members of
51.12the senate and house of representatives divisions having jurisdiction over criminal justice
51.13funding on the amount appropriated under this subdivision, the number of cases handled
51.14by each district public defender's office, the number of cases in which reimbursements
51.15were ordered, the average amount of reimbursement ordered, and the average amount of
51.16money received by part-time attorneys under this subdivision.

51.17    Sec. 19. Laws 1994, chapter 531, section 1, is amended to read:
51.18    Section 1. SALE OF WILDLIFE LANDS.
51.19    Notwithstanding Minnesota Statutes, sections 84.027, subdivision 10; 92.45; 94.09
51.20to 94.165; 97A.135; 103F.535, or any other law, the commissioner of administration may
51.21sell lands located in the Gordy Yaeger wildlife management area in Olmsted county. The
51.22consideration for the lands described in sections 2 and 3 shall be $950 per acre. The
51.23conveyances shall be by guitclaim quitclaim deed in a form approved by the attorney
51.24general and shall reserve to the state all minerals and mineral rights. The proceeds received
51.25from the sales are to be deposited in an account in the general natural resources fund and
51.26are appropriated to the commissioner of natural resources for acquisition of replacement
51.27wildlife management area lands. These sales are pursuant to the recommendation of the
51.28Gordy Yaeger wildlife management area advisory committee.

51.29ARTICLE 15
51.30HEALTH AND HUMAN SERVICES

51.31
Section 1. SUMMARY OF APPROPRIATIONS.
51.32The amounts shown in this section summarize direct appropriations, by fund, made
51.33in this article.
52.1
2010
2011
Total
52.2
General
$
(74,704,000)
$
(83,154,000)
$
(157,858,000)

52.3
Sec. 2. APPROPRIATIONS.
52.4The sums shown in the columns marked "Appropriations" are added to or, if shown
52.5in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13,
52.6as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes
52.7specified in this article. The appropriations are from the general fund and are available
52.8for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in
52.9this article mean that the addition to or subtraction from the appropriation listed under
52.10them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
52.11Supplemental appropriations and reductions to appropriations for the fiscal year ending
52.12June 30, 2010, are effective the day following final enactment unless a different effective
52.13date is explicit. All reductions in this article are onetime, unless otherwise stated.
52.14
APPROPRIATIONS
52.15
Available for the Year
52.16
Ending June 30
52.17
2010
2011

52.18
52.19
Sec. 3. DEPARTMENT OF HUMAN
SERVICES
52.20
Subdivision 1.Total Appropriation
$
(74,177,000)
$
(82,629,000)
52.21The appropriation reductions for each
52.22purpose are shown in the following
52.23subdivisions.
52.24
52.25
Subd. 2.Agency Management; Financial
Operations
(3,289,000)
(3,282,000)
52.26
52.27
Subd. 3.Children and Economic Assistance
Grants
52.28
(a) Child Support Enforcement Grants
(3,400,000)
(1,249,000)
52.29
(b) Children's Services Grants
(600,000)
-0-
52.30American Indian Child Welfare Projects.
52.31Notwithstanding Laws 2009, chapter 79,
52.32article 2, section 35, $600,000 of the fiscal
52.33year 2009 funds extended in fiscal year 2010
52.34cancel to the general fund.
53.1
(c) Children and Community Services Grants
(16,900,000)
(1,500,000)
53.2
(d) General Assistance Grants
(5,267,000)
-0-
53.3
(e) Minnesota Supplemental Aid Grants
(733,000)
-0-
53.4
(f) Group Residential Housing Grants
(467,000)
(706,000)
53.5
Subd. 4.Basic Health Care Grants
53.6
53.7
(a) Medical Assistance Basic Health Care
Grants - Families and Children
(5,599,000)
(29,979,000)
53.8
53.9
(b) Medical Assistance Basic Health Care
Grants - Elderly and Disabled
(2,331,000)
(22,298,000)
53.10Hospital Fee-for-Service Payment Delay.
53.11Payments from the Medicaid Management
53.12Information System that would otherwise
53.13have been made for inpatient hospital
53.14services for Minnesota health care program
53.15enrollees must be delayed as follows: for
53.16fiscal year 2011, June payments must be
53.17included in the first payments in fiscal
53.18year 2012. The provisions of Minnesota
53.19Statutes, section 16A.124, do not apply
53.20to these delayed payments. This payment
53.21delay includes, and is not in addition to, the
53.22payment delay for inpatient hospital services
53.23in Laws 2009, chapter 79, article 13, section
53.243, subdivision 6, paragraph (c).
53.25Nonhospital Fee-for-Service Payment
53.26Delay. Payments from the Medicaid
53.27Management Information System that would
53.28otherwise have been made for nonhospital
53.29acute care services for Minnesota health
53.30care program enrollees must be delayed as
53.31follows: for fiscal year 2011, June payments
53.32must be included in the first payments in
53.33fiscal year 2012. This payment delay must
53.34not include nursing facilities, intermediate
54.1care facilities for persons with developmental
54.2disabilities, home and community-based
54.3services, prepaid health plans, personal care
54.4provider organizations, and home health
54.5agencies. The provisions of Minnesota
54.6Statutes, section 16A.124, do not apply
54.7to these delayed payments. This payment
54.8delay includes, and is not in addition to, the
54.9payment delay for nonhospital acute care
54.10services in Laws 2009, chapter 79, article 13,
54.11section 3, subdivision 6, paragraph (c).
54.12
(c) General Assistance Medical Care Grants
(15,879,000)
-0-
54.13
54.14
Subd. 5.Health Care Management;
Administration
(180,000)
(360,000)
54.15Incentive Program and Outreach Grants.
54.16The general fund appropriation for the
54.17incentive program under Laws 2008, chapter
54.18358, article 5, section 3, subdivision 4,
54.19paragraph (b), is canceled. This paragraph is
54.20effective retroactively from January 1, 2010.
54.21
Subd. 6.Continuing Care Grants
54.22
(a) Aging and Adult Services Grants
(3,600,000)
(3,600,000)
54.23Community Service/Service Development
54.24Grants Reduction. Effective retroactively
54.25from July 1, 2009, funding for grants made
54.26under Minnesota Statutes, sections 256.9754
54.27and 256B.0917, subdivision 13, is reduced
54.28by $5,807,000 for each year of the biennium.
54.29Grants made during the biennium under
54.30Minnesota Statutes, section 256.9754, shall
54.31not be used for new construction or building
54.32renovation.
54.33Aging Grants Delay. Aging grants must be
54.34reduced by $917,000 in fiscal year 2011 and
54.35increased by $917,000 in fiscal year 2012.
55.1These adjustments are onetime and must not
55.2be applied to the base. This provision expires
55.3June 30, 2012.
55.4
55.5
(b) Medical Assistance Long-Term Care
Facilities Grants
(3,827,000)
(2,745,000)
55.6ICF/MR Variable Rates Suspension.
55.7Effective retroactively from July 1, 2009,
55.8to June 30, 2010, no new variable rates
55.9shall be authorized for intermediate care
55.10facilities for persons with developmental
55.11disabilities under Minnesota Statutes, section
55.12256B.5013, subdivision 1.
55.13ICF/MR Occupancy Rate Adjustment
55.14Suspension. Effective retroactively from
55.15July 1, 2009, to June 30, 2011, approval
55.16of new applications for occupancy rate
55.17adjustments for unoccupied short-term
55.18beds under Minnesota Statutes, section
55.19256B.5013, subdivision 7, is suspended.
55.20
55.21
(c) Medical Assistance Long-Term Care
Waivers and Home Care Grants
(2,318,000)
(5,807,000)
55.22Developmental Disability Waiver Acuity
55.23Factor. Effective retroactively from January
55.241, 2010, the January 1, 2010, one percent
55.25growth factor in the developmental disability
55.26waiver allocations under Minnesota Statutes,
55.27section 256B.092, subdivisions 4 and 5,
55.28that is attributable to changes in acuity, is
55.29suspended to June 30, 2011.
55.30
(d) Adult Mental Health Grants
(5,000,000)
-0-
55.31
(e) Chemical Dependency Entitlement Grants
(3,622,000)
(3,622,000)
55.32
55.33
(f) Chemical Dependency Nonentitlement
Grants
(393,000)
(393,000)
55.34
(g) Other Continuing Care Grants
-0-
(2,500,000)
56.1Other Continuing Care Grants Delay.
56.2Other continuing care grants must be reduced
56.3by $1,414,000 in fiscal year 2011 and
56.4increased by $1,414,000 in fiscal year 2012.
56.5These adjustments are onetime and must not
56.6be applied to the base. This provision expires
56.7June 30, 2012.
56.8
Subd. 7.Continuing Care Management
(350,000)
-0-
56.9County Maintenance of Effort. The general
56.10fund appropriation for the State-County
56.11Results Accountability and Service Delivery
56.12Reform under Minnesota Statutes, chapter
56.13402A, is canceled. This paragraph is
56.14effective retroactively from July 1, 2009.
56.15
56.16
Subd. 8.State-Operated Services; Adult
Mental Health Services
(422,000)
(4,588,000)

56.17
Sec. 4. DEPARTMENT OF HEALTH
56.18
Subdivision. 1.Total Appropriation
$
(527,000)
$
(525,000)
56.19The appropriation reductions for each
56.20purpose are shown in the following
56.21subdivisions.
56.22
56.23
Subd. 2.Community and Family Health
Promotion
(53,000)
(355,000)
56.24
Subd. 3.Policy Quality and Compliance
(118,000)
(74,000)
56.25Office of Unlicensed Health Care Practice.
56.26Of the general fund reduction $74,000
56.27in fiscal year 2011 is from the Office of
56.28Unlicensed Complementary and Alternative
56.29Health Care Practice.
56.30
Subd. 4.Health Protection
(225,000)
(74,000)
56.31
Subd. 5.Administrative Support Services
(131,000)
(22,000)

57.1    Sec. 5. Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by
57.2Laws 2009, chapter 173, article 2, section 1, subdivision 8, is amended to read:
57.3
Subd. 8.Continuing Care Grants
57.4The amounts that may be spent from the
57.5appropriation for each purpose are as follows:
57.6
(a) Aging and Adult Services Grants
13,499,000
15,805,000
57.7Base Adjustment. The general fund base is
57.8increased by $5,751,000 in fiscal year 2012
57.9and $6,705,000 in fiscal year 2013.
57.10Information and Assistance
57.11Reimbursement. Federal administrative
57.12reimbursement obtained from information
57.13and assistance services provided by the
57.14Senior LinkAge or Disability Linkage lines
57.15to people who are identified as eligible for
57.16medical assistance shall be appropriated to
57.17the commissioner for this activity.
57.18Community Service Development Grant
57.19Reduction. Funding for community service
57.20development grants must be reduced by
57.21$260,000 for fiscal year 2010; $284,000 in
57.22fiscal year 2011; $43,000 in fiscal year 2012;
57.23and $43,000 in fiscal year 2013. Base level
57.24funding shall be restored in fiscal year 2014.
57.25Community Service Development Grant
57.26Community Initiative. Funding for
57.27community service development grants shall
57.28be used to offset the cost of aging support
57.29grants. Base level funding shall be restored
57.30in fiscal year 2014.
57.31Senior Nutrition Use of Federal Funds.
57.32For fiscal year 2010, general fund grants
57.33for home-delivered meals and congregate
57.34dining shall be reduced by $500,000. The
58.1commissioner must replace these general
58.2fund reductions with equal amounts from
58.3federal funding for senior nutrition from the
58.4American Recovery and Reinvestment Act
58.5of 2009.
58.6
(b) Alternative Care Grants
50,234,000
48,576,000
58.7Base Adjustment. The general fund base is
58.8decreased by $3,598,000 in fiscal year 2012
58.9and $3,470,000 in fiscal year 2013.
58.10Alternative Care Transfer. Any money
58.11allocated to the alternative care program that
58.12is not spent for the purposes indicated does
58.13not cancel but must be transferred to the
58.14medical assistance account.
58.15
58.16
(c) Medical Assistance Grants; Long-Term
Care Facilities.
367,444,000
419,749,000
58.17
58.18
(d) Medical Assistance Long-Term Care
Waivers and Home Care Grants
853,567,000
1,039,517,000
58.19Manage Growth in TBI and CADI
58.20Waivers. During the fiscal years beginning
58.21on July 1, 2009, and July 1, 2010, the
58.22commissioner shall allocate money for home
58.23and community-based waiver programs
58.24under Minnesota Statutes, section 256B.49,
58.25to ensure a reduction in state spending that is
58.26equivalent to limiting the caseload growth of
58.27the TBI waiver to 12.5 allocations per month
58.28each year of the biennium and the CADI
58.29waiver to 95 allocations per month each year
58.30of the biennium. Limits do not apply: (1)
58.31when there is an approved plan for nursing
58.32facility bed closures for individuals under
58.33age 65 who require relocation due to the
58.34bed closure; (2) to fiscal year 2009 waiver
58.35allocations delayed due to unallotment; or (3)
59.1to transfers authorized by the commissioner
59.2from the personal care assistance program
59.3of individuals having a home care rating
59.4of "CS," "MT," or "HL." Priorities for the
59.5allocation of funds must be for individuals
59.6anticipated to be discharged from institutional
59.7settings or who are at imminent risk of a
59.8placement in an institutional setting.
59.9Manage Growth in DD Waiver. The
59.10commissioner shall manage the growth in
59.11the DD waiver by limiting the allocations
59.12included in the February 2009 forecast to 15
59.13additional diversion allocations each month
59.14for the calendar years that begin on January
59.151, 2010, and January 1, 2011. Additional
59.16allocations must be made available for
59.17transfers authorized by the commissioner
59.18from the personal care program of individuals
59.19having a home care rating of "CS," "MT,"
59.20or "HL."
59.21Adjustment to Lead Agency Waiver
59.22Allocations. Prior to the availability of the
59.23alternative license defined in Minnesota
59.24Statutes, section 245A.11, subdivision 8,
59.25the commissioner shall reduce lead agency
59.26waiver allocations for the purposes of
59.27implementing a moratorium on corporate
59.28foster care.
59.29Alternatives to Personal Care Assistance
59.30Services. Base level funding of $3,237,000
59.31in fiscal year 2012 and $4,856,000 in
59.32fiscal year 2013 is to implement alternative
59.33services to personal care assistance services
59.34for persons with mental health and other
59.35behavioral challenges who can benefit
60.1from other services that more appropriately
60.2meet their needs and assist them in living
60.3independently in the community. These
60.4services may include, but not be limited to, a
60.51915(i) state plan option.
60.6
(e) Mental Health Grants
60.7
Appropriations by Fund
60.8
General
77,739,000
77,739,000
60.9
Health Care Access
750,000
750,000
60.10
Lottery Prize
1,508,000
1,508,000
60.11Funding Usage. Up to 75 percent of a fiscal
60.12year's appropriation for adult mental health
60.13grants may be used to fund allocations in that
60.14portion of the fiscal year ending December
60.1531.
60.16
(f) Deaf and Hard-of-Hearing Grants
1,930,000
1,917,000
60.17
(g) Chemical Dependency Entitlement Grants
111,303,000
122,822,000
60.18Payments for Substance Abuse Treatment.
60.19For services provided during fiscal years
60.202010 and 2011, county-negotiated rates and
60.21provider claims to the consolidated chemical
60.22dependency fund must not exceed rates
60.23charged for these services on January 1,
60.242009; and rates for fiscal years 2010 and
60.252011 must not exceed 160 percent of the
60.26average rate on January 1, 2009, for each
60.27group of vendors with similar attributes.
60.28For services provided in fiscal years 2012
60.29and 2013, statewide average rates under
60.30the new rate methodology to be developed
60.31under Minnesota Statutes, section 254B.12,
60.32must not exceed the average rates charged
60.33for these services on January 1, 2009, plus a
60.34state share increase of $3,787,000 for fiscal
60.35year 2012 and $5,023,000 for fiscal year
61.12013. Notwithstanding any provision to the
61.2contrary in this article, this provision expires
61.3on June 30, 2013.
61.4Chemical Dependency Special Revenue
61.5Account. For fiscal year 2010, $750,000
61.6must be transferred from the consolidated
61.7chemical dependency treatment fund
61.8administrative account and deposited into the
61.9general fund.
61.10County CD Share of MA Costs for
61.11ARRA Compliance. Notwithstanding the
61.12provisions of Minnesota Statutes, chapter
61.13254B, for chemical dependency services
61.14provided during the period October 1, 2008,
61.15to December 31, 2010, and reimbursed by
61.16medical assistance at the enhanced federal
61.17matching rate provided under the American
61.18Recovery and Reinvestment Act of 2009, the
61.19county share is 30 percent of the nonfederal
61.20share. This provision is effective the day
61.21following final enactment.
61.22
61.23
(h) Chemical Dependency Nonentitlement
Grants
1,729,000
1,729,000
61.24
(i) Other Continuing Care Grants
19,201,000
17,528,000
61.25Base Adjustment. The general fund base is
61.26increased by $2,639,000 in fiscal year 2012
61.27and increased by $3,854,000 in fiscal year
61.282013.
61.29Technology Grants. $650,000 in fiscal
61.30year 2010 and $1,000,000 in fiscal year
61.312011 are for technology grants, case
61.32consultation, evaluation, and consumer
61.33information grants related to developing and
61.34supporting alternatives to shift-staff foster
61.35care residential service models.
62.1Other Continuing Care Grants; HIV
62.2Grants. Money appropriated for the HIV
62.3drug and insurance grant program in fiscal
62.4year 2010 may be used in either year of the
62.5biennium.
62.6Quality Assurance Commission. Effective
62.7July 1, 2009, state funding for the quality
62.8assurance commission under Minnesota
62.9Statutes, section 256B.0951, is canceled.

62.10    Sec. 6. Laws 2009, chapter 79, article 13, section 4, subdivision 4, as amended by
62.11Laws 2009, chapter 173, article 2, section 2, subdivision 4, is amended to read:
62.12
Subd. 4.Health Protection
62.13
Appropriations by Fund
62.14
General
9,871,000
9,780,000
62.15
62.16
State Government
Special Revenue
30,209,000
30,209,000
62.17Base Adjustment. The general fund base is
62.18reduced by $50,000 in each of fiscal years
62.192012 and 2013.
62.20Health Protection Appropriations. (a)
62.21$163,000 each year is for the lead abatement
62.22grant program.
62.23(b) $100,000 each year is for emergency
62.24preparedness and response activities.
62.25(c) $50,000 each year is for tuberculosis
62.26prevention and control. This is a onetime
62.27appropriation.
62.28(d) $55,000 in fiscal year 2010 is for
62.29pentachlorophenol.
62.30(e) $20,000 in fiscal year 2010 is for a PFC
62.31Citizens Advisory Group.
62.32American Recovery and Reinvestment
62.33Act Funds. Federal funds received
63.1by the commissioner for immunization
63.2operations from the American Recovery
63.3and Reinvestment Act of 2009, Public Law
63.4111-5, are appropriated to the commissioner
63.5for the purposes of the grant.

63.6    Sec. 7. Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11,
63.7is amended to read:
63.8    Subd. 11. Personal care assistant; requirements. (a) A personal care assistant
63.9must meet the following requirements:
63.10(1) be at least 18 years of age with the exception of persons who are 16 or 17 years
63.11of age with these additional requirements:
63.12(i) supervision by a qualified professional every 60 days; and
63.13(ii) employment by only one personal care assistance provider agency responsible
63.14for compliance with current labor laws;
63.15(2) be employed by a personal care assistance provider agency;
63.16(3) enroll with the department as a personal care assistant after clearing a background
63.17study. Before a personal care assistant provides services, the personal care assistance
63.18provider agency must initiate a background study on the personal care assistant under
63.19chapter 245C, and the personal care assistance provider agency must have received a
63.20notice from the commissioner that the personal care assistant is:
63.21(i) not disqualified under section 245C.14; or
63.22(ii) is disqualified, but the personal care assistant has received a set aside of the
63.23disqualification under section 245C.22;
63.24(4) be able to effectively communicate with the recipient and personal care
63.25assistance provider agency;
63.26(5) be able to provide covered personal care assistance services according to the
63.27recipient's personal care assistance care plan, respond appropriately to recipient needs,
63.28and report changes in the recipient's condition to the supervising qualified professional
63.29or physician;
63.30(6) not be a consumer of personal care assistance services;
63.31(7) maintain daily written records including, but not limited to, time sheets under
63.32subdivision 12;
63.33(8) effective January 1, 2010, complete standardized training as determined by the
63.34commissioner before completing enrollment. Personal care assistant training must include
63.35successful completion of the following training components: basic first aid, vulnerable
64.1adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of
64.2personal care assistants including information about assistance with lifting and transfers
64.3for recipients, emergency preparedness, orientation to positive behavioral practices, fraud
64.4issues, and completion of time sheets. Upon completion of the training components,
64.5the personal care assistant must demonstrate the competency to provide assistance to
64.6recipients;
64.7(9) complete training and orientation on the needs of the recipient within the first
64.8seven days after the services begin; and
64.9(10) be limited to providing and being paid for up to 310 hours per month, except
64.10that this limit shall be 275 hours per month for the period July 1, 2009, through June 30,
64.112011, of personal care assistance services regardless of the number of recipients being
64.12served or the number of personal care assistance provider agencies enrolled with.
64.13(b) A legal guardian may be a personal care assistant if the guardian is not being paid
64.14for the guardian services and meets the criteria for personal care assistants in paragraph (a).
64.15(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant
64.16include parents and stepparents of minors, spouses, paid legal guardians, family foster
64.17care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or
64.18staff of a residential setting.
64.19EFFECTIVE DATE.This section is effective July 1, 2009.

64.20    Sec. 8. Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55,
64.21is amended to read:
64.22    Subd. 55. Phase-in of rebased operating payment rates. (a) For the rate years
64.23beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated
64.24under this section shall be phased in by blending the operating rate with the operating
64.25payment rate determined under section 256B.434. For purposes of this subdivision, the
64.26rate to be used that is determined under section 256B.434 shall not include the portion of
64.27the operating payment rate related to performance-based incentive payments under section
64.28256B.434, subdivision 4 , paragraph (d). For the rate year beginning October 1, 2008, the
64.29operating payment rate for each facility shall be 13 percent of the operating payment rate
64.30from this section, and 87 percent of the operating payment rate from section 256B.434.
64.31For the rate year beginning October 1, 2009, the operating payment rate for each facility
64.32shall be 14 percent of the operating payment rate from this section, and 86 percent of the
64.33operating payment rate from section 256B.434. For rate years beginning October 1, 2009;
64.34October 1, 2010; October 1, 2011; and October 1, 2012, no rate adjustments shall be
64.35implemented under this section, but shall be determined under section 256B.434. For the
65.1rate year beginning October 1, 2013, the operating payment rate for each facility shall be
65.265 percent of the operating payment rate from this section, and 35 percent of the operating
65.3payment rate from section 256B.434. For the rate year beginning October 1, 2014, the
65.4operating payment rate for each facility shall be 82 percent of the operating payment rate
65.5from this section, and 18 percent of the operating payment rate from section 256B.434. For
65.6the rate year beginning October 1, 2015, the operating payment rate for each facility shall
65.7be the operating payment rate determined under this section. The blending of operating
65.8payment rates under this section shall be performed separately for each RUG's class.
65.9    (b) For the rate year beginning October 1, 2008, the commissioner shall apply limits
65.10to the operating payment rate increases under paragraph (a) by creating a minimum
65.11percentage increase and a maximum percentage increase.
65.12    (1) Each nursing facility that receives a blended October 1, 2008, operating payment
65.13rate increase under paragraph (a) of less than one percent, when compared to its operating
65.14payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00,
65.15shall receive a rate adjustment of one percent.
65.16    (2) The commissioner shall determine a maximum percentage increase that will
65.17result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing
65.18facilities with a blended October 1, 2008, operating payment rate increase under paragraph
65.19(a) greater than the maximum percentage increase determined by the commissioner, when
65.20compared to its operating payment rate on September 30, 2008, computed using rates with
65.21a RUG's weight of 1.00, shall receive the maximum percentage increase.
65.22    (3) Nursing facilities with a blended October 1, 2008, operating payment rate
65.23increase under paragraph (a) greater than one percent and less than the maximum
65.24percentage increase determined by the commissioner, when compared to its operating
65.25payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00,
65.26shall receive the blended October 1, 2008, operating payment rate increase determined
65.27under paragraph (a).
65.28    (4) The October 1, 2009, through October 1, 2015, operating payment rate for
65.29facilities receiving the maximum percentage increase determined in clause (2) shall be
65.30the amount determined under paragraph (a) less the difference between the amount
65.31determined under paragraph (a) for October 1, 2008, and the amount allowed under clause
65.32(2). This rate restriction does not apply to rate increases provided in any other section.
65.33    (c) A portion of the funds received under this subdivision that are in excess of
65.34operating payment rates that a facility would have received under section 256B.434, as
65.35determined in accordance with clauses (1) to (3), shall be subject to the requirements in
65.36section 256B.434, subdivision 19, paragraphs (b) to (h).
66.1    (1) Determine the amount of additional funding available to a facility, which shall be
66.2equal to total medical assistance resident days from the most recent reporting year times
66.3the difference between the blended rate determined in paragraph (a) for the rate year being
66.4computed and the blended rate for the prior year.
66.5    (2) Determine the portion of all operating costs, for the most recent reporting year,
66.6that are compensation related. If this value exceeds 75 percent, use 75 percent.
66.7    (3) Subtract the amount determined in clause (2) from 75 percent.
66.8    (4) The portion of the fund received under this subdivision that shall be subject to
66.9the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal
66.10the amount determined in clause (1) times the amount determined in clause (3).
66.11EFFECTIVE DATE.This section is effective retroactively from October 1, 2009.

66.12    Sec. 9. Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a, is
66.13amended to read:
66.14    Subd. 5a. Managed care contracts. (a) Managed care contracts under this section
66.15and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year
66.16basis beginning January 1, 1996. Managed care contracts which were in effect on June
66.1730, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995
66.18through December 31, 1995 at the same terms that were in effect on June 30, 1995. The
66.19commissioner may issue separate contracts with requirements specific to services to
66.20medical assistance recipients age 65 and older.
66.21    (b) A prepaid health plan providing covered health services for eligible persons
66.22pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms
66.23of its contract with the commissioner. Requirements applicable to managed care programs
66.24under chapters 256B, 256D, and 256L, established after the effective date of a contract
66.25with the commissioner take effect when the contract is next issued or renewed.
66.26    (c) Effective for services rendered on or after January 1, 2003, the commissioner
66.27shall withhold five percent of managed care plan payments under this section and
66.28county-based purchasing plan's payment rate under section 256B.692 for the prepaid
66.29medical assistance and general assistance medical care programs pending completion of
66.30performance targets. Each performance target must be quantifiable, objective, measurable,
66.31and reasonably attainable, except in the case of a performance target based on a federal
66.32or state law or rule. Criteria for assessment of each performance target must be outlined
66.33in writing prior to the contract effective date. The managed care plan must demonstrate,
66.34to the commissioner's satisfaction, that the data submitted regarding attainment of
66.35the performance target is accurate. The commissioner shall periodically change the
67.1administrative measures used as performance targets in order to improve plan performance
67.2across a broader range of administrative services. The performance targets must include
67.3measurement of plan efforts to contain spending on health care services and administrative
67.4activities. The commissioner may adopt plan-specific performance targets that take into
67.5account factors affecting only one plan, including characteristics of the plan's enrollee
67.6population. The withheld funds must be returned no sooner than July of the following
67.7year if performance targets in the contract are achieved. The commissioner may exclude
67.8special demonstration projects under subdivision 23.
67.9    (d) Effective for services rendered on or after January 1, 2009, through December 31,
67.102009, the commissioner shall withhold three percent of managed care plan payments under
67.11this section and county-based purchasing plan payments under section 256B.692 for the
67.12prepaid medical assistance and general assistance medical care programs. The withheld
67.13funds must be returned no sooner than July 1 and no later than July 31 of the following
67.14year. The commissioner may exclude special demonstration projects under subdivision 23.
67.15    The return of the withhold under this paragraph is not subject to the requirements of
67.16paragraph (c).
67.17(e) Effective for services provided on or after January 1, 2010, the commissioner
67.18shall require that managed care plans use the assessment and authorization processes,
67.19forms, timelines, standards, documentation, and data reporting requirements, protocols,
67.20billing processes, and policies consistent with medical assistance fee-for-service or the
67.21Department of Human Services contract requirements consistent with medical assistance
67.22fee-for-service or the Department of Human Services contract requirements for all
67.23personal care assistance services under section 256B.0659.
67.24(f) Effective for services rendered on or after January 1, 2010, through December
67.2531, 2010, the commissioner shall withhold 3.5 4.5 percent of managed care plan payments
67.26under this section and county-based purchasing plan payments under section 256B.692
67.27for the prepaid medical assistance program. The withheld funds must be returned no
67.28sooner than July 1 and no later than July 31 of the following year. The commissioner may
67.29exclude special demonstration projects under subdivision 23.
67.30(g) Effective for services rendered on or after January 1, 2011, through December 31,
67.312011, the commissioner shall withhold four 4.5 percent of managed care plan payments
67.32under this section and county-based purchasing plan payments under section 256B.692
67.33for the prepaid medical assistance program. The withheld funds must be returned no
67.34sooner than July 1 and no later than July 31 of the following year. The commissioner may
67.35exclude special demonstration projects under subdivision 23.
68.1(h) Effective for services rendered on or after January 1, 2012, through December
68.231, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments
68.3under this section and county-based purchasing plan payments under section 256B.692
68.4for the prepaid medical assistance program. The withheld funds must be returned no
68.5sooner than July 1 and no later than July 31 of the following year. The commissioner may
68.6exclude special demonstration projects under subdivision 23.
68.7(i) Effective for services rendered on or after January 1, 2013, through December 31,
68.82013, the commissioner shall withhold 4.5 percent of managed care plan payments under
68.9this section and county-based purchasing plan payments under section 256B.692 for the
68.10prepaid medical assistance program. The withheld funds must be returned no sooner than
68.11July 1 and no later than July 31 of the following year. The commissioner may exclude
68.12special demonstration projects under subdivision 23.
68.13(j) Effective for services rendered on or after January 1, 2014, the commissioner
68.14shall withhold three percent of managed care plan payments under this section and
68.15county-based purchasing plan payments under section 256B.692 for the prepaid medical
68.16assistance and prepaid general assistance medical care programs. The withheld funds must
68.17be returned no sooner than July 1 and no later than July 31 of the following year. The
68.18commissioner may exclude special demonstration projects under subdivision 23.
68.19(k) A managed care plan or a county-based purchasing plan under section 256B.692
68.20may include as admitted assets under section 62D.044 any amount withheld under this
68.21section that is reasonably expected to be returned.
68.22(l) Contracts between the commissioner and a prepaid health plan are exempt from
68.23the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph
68.24(a), and 7.
68.25EFFECTIVE DATE.The additional withhold percentage in paragraph (f) is
68.26effective retroactively from January 1, 2010.

68.27    Sec. 10. Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is
68.28amended to read:
68.29    Subdivision 1. Physician reimbursement. (a) Effective for services rendered on
68.30or after October 1, 1992, the commissioner shall make payments for physician services
68.31as follows:
68.32    (1) payment for level one Centers for Medicare and Medicaid Services' common
68.33procedural coding system codes titled "office and other outpatient services," "preventive
68.34medicine new and established patient," "delivery, antepartum, and postpartum care,"
68.35"critical care," cesarean delivery and pharmacologic management provided to psychiatric
69.1patients, and level three codes for enhanced services for prenatal high risk, shall be paid
69.2at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June
69.330, 1992. If the rate on any procedure code within these categories is different than the
69.4rate that would have been paid under the methodology in section 256B.74, subdivision 2,
69.5then the larger rate shall be paid;
69.6    (2) payments for all other services shall be paid at the lower of (i) submitted charges,
69.7or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
69.8    (3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th
69.9percentile of 1989, less the percent in aggregate necessary to equal the above increases
69.10except that payment rates for home health agency services shall be the rates in effect
69.11on September 30, 1992.
69.12    (b) Effective for services rendered on or after January 1, 2000, payment rates for
69.13physician and professional services shall be increased by three percent over the rates
69.14in effect on December 31, 1999, except for home health agency and family planning
69.15agency services. The increases in this paragraph shall be implemented January 1, 2000,
69.16for managed care.
69.17(c) Effective for services rendered on or after July 1, 2009, payment rates for
69.18physician and professional services shall be reduced by five percent, except that for the
69.19period July 1, 2009, through June 30, 2010, payments rates shall be reduced by 6.5 percent
69.20for the medical assistance and general assistance medical care programs, over the rates in
69.21effect on June 30, 2009. This reduction does not apply to office or other outpatient visits,
69.22preventive medicine visits and family planning visits billed by physicians, advanced
69.23practice nurses, or physician assistants in a family planning agency or in one of the
69.24following primary care practices: general practice, general internal medicine, general
69.25pediatrics, general geriatrics, and family medicine. This reduction does not apply to
69.26federally qualified health centers, rural health centers, and Indian health services. Effective
69.27October 1, 2009, payments made to managed care plans and county-based purchasing
69.28plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment reduction
69.29described in this paragraph.
69.30EFFECTIVE DATE.The additional rate reductions in this section are effective
69.31retroactively from July 1, 2009.

69.32    Sec. 11. Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:
69.33    Subd. 4. Critical access dental providers. (a) Effective for dental services rendered
69.34on or after January 1, 2002, the commissioner shall increase reimbursements to dentists
69.35and dental clinics deemed by the commissioner to be critical access dental providers.
70.1For dental services rendered on or after July 1, 2007, the commissioner shall increase
70.2reimbursement by 30 percent above the reimbursement rate that would otherwise be paid to
70.3the critical access dental provider. The commissioner shall pay the health plan companies
70.4in amounts sufficient to reflect increased reimbursements to critical access dental providers
70.5as approved by the commissioner. In determining which dentists and dental clinics shall
70.6be deemed critical access dental providers, the commissioner shall review:
70.7    (1) the utilization rate in the service area in which the dentist or dental clinic operates
70.8for dental services to patients covered by medical assistance, general assistance medical
70.9care, or MinnesotaCare as their primary source of coverage;
70.10    (2) the level of services provided by the dentist or dental clinic to patients covered
70.11by medical assistance, general assistance medical care, or MinnesotaCare as their primary
70.12source of coverage; and
70.13    (3) whether the level of services provided by the dentist or dental clinic is critical to
70.14maintaining adequate levels of patient access within the service area.
70.15In the absence of a critical access dental provider in a service area, the commissioner may
70.16designate a dentist or dental clinic as a critical access dental provider if the dentist or
70.17dental clinic is willing to provide care to patients covered by medical assistance, general
70.18assistance medical care, or MinnesotaCare at a level which significantly increases access
70.19to dental care in the service area.
70.20(b) Notwithstanding paragraph (a), critical access payments must not be made for
70.21dental services provided from April 1, 2010, through June 30, 2010.
70.22EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

70.23    Sec. 12. Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read:
70.24256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
70.25(a) Effective for services provided on or after July 1, 2009, total payments for basic
70.26care services, shall be reduced by three percent, except that for the period July 1, 2009,
70.27through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical
70.28assistance and general assistance medical care programs, prior to third-party liability
70.29and spenddown calculation. Payments made to managed care plans and county-based
70.30purchasing plans shall be reduced for services provided on or after October 1, 2009,
70.31to reflect this reduction.
70.32(b) This section does not apply to physician and professional services, inpatient
70.33hospital services, family planning services, mental health services, dental services,
71.1prescription drugs, medical transportation, federally qualified health centers, rural health
71.2centers, Indian health services, and Medicare cost-sharing.
71.3EFFECTIVE DATE.The additional rate reductions in this section are effective
71.4retroactively from July 1, 2009.

71.5    Sec. 13. REDUCTION OF GROUP RESIDENTIAL HOUSING
71.6SUPPLEMENTAL SERVICE RATE.
71.7Effective retroactively from November 1, 2009, through June 30, 2011, the
71.8commissioner of human services shall decrease the group residential housing (GRH)
71.9supplementary service rate under Minnesota Statutes, section 256I.05, subdivision 1a, by
71.10five percent for services rendered on or after that date, except that reimbursement rates
71.11for a GRH facility reimbursed as a nursing facility shall not be reduced. The reduction
71.12in this paragraph is in addition to the reduction under Laws 2009, chapter 79, article
71.138, section 79, paragraph (b), clause (11).
71.14EFFECTIVE DATE.This section is effective retroactively from November 1, 2009.

71.15    Sec. 14. ARTICLE EFFECTIVE DATE.
71.16This article is effective the day following final enactment.

71.17ARTICLE 16
71.18HEALTH CARE

71.19    Section 1. Minnesota Statutes 2008, section 256.01, is amended by adding a
71.20subdivision to read:
71.21    Subd. 30. Review and evaluation of ongoing studies. The commissioner
71.22shall review all ongoing studies, reports, and program evaluations completed by the
71.23Department of Human Services for state fiscal years 2006 through 2010. For each item,
71.24the commissioner shall report the legislature's appropriation for that work, if any, and the
71.25actual reported cost of the completed work by the Department of Human Services. The
71.26commissioner shall make recommendations to the legislature about which studies, reports,
71.27and program evaluations required by law on an ongoing basis are duplicative, unnecessary,
71.28or obsolete. The commissioner shall repeat this review every five fiscal years.

71.29    Sec. 2. Minnesota Statutes 2009 Supplement, section 256.969, subdivision 2b, is
71.30amended to read:
72.1    Subd. 2b. Operating payment rates. In determining operating payment rates for
72.2admissions occurring on or after the rate year beginning January 1, 1991, and every two
72.3years after, or more frequently as determined by the commissioner, the commissioner shall
72.4obtain operating data from an updated base year and establish operating payment rates
72.5per admission for each hospital based on the cost-finding methods and allowable costs of
72.6the Medicare program in effect during the base year. Rates under the general assistance
72.7medical care, medical assistance, and MinnesotaCare programs shall not be rebased to
72.8more current data on January 1, 1997, January 1, 2005, for the first 24 months of the
72.9rebased period beginning January 1, 2009. For the first three 24 months of the rebased
72.10period beginning January 1, 2011, rates shall not be rebased at 74.25 percent of the full
72.11value of the rebasing percentage change. From April 1, 2011, to March 31, 2012, rates
72.12shall be rebased at 39.2 percent of the full value of the rebasing percentage change, except
72.13that a Minnesota long-term hospital shall be rebased effective January 1, 2011, based on
72.14its most recent Medicare cost report ending on or before September 1, 2008, with the
72.15provisions under subdivisions 9 and 23, based on the rates in effect on December 31, 2010.
72.16For subsequent rate setting periods in which the base years are updated, a Minnesota
72.17long-term hospital's base year shall remain within the same period as other hospitals.
72.18Effective April 1, 2012 January 1, 2013, rates shall be rebased at full value. The base year
72.19operating payment rate per admission is standardized by the case mix index and adjusted
72.20by the hospital cost index, relative values, and disproportionate population adjustment.
72.21The cost and charge data used to establish operating rates shall only reflect inpatient
72.22services covered by medical assistance and shall not include property cost information
72.23and costs recognized in outlier payments.
72.24EFFECTIVE DATE.This section is effective July 1, 2010.

72.25    Sec. 3. Minnesota Statutes 2009 Supplement, section 256.969, subdivision 3a, is
72.26amended to read:
72.27    Subd. 3a. Payments. (a) Acute care hospital billings under the medical
72.28assistance program must not be submitted until the recipient is discharged. However,
72.29the commissioner shall establish monthly interim payments for inpatient hospitals that
72.30have individual patient lengths of stay over 30 days regardless of diagnostic category.
72.31Except as provided in section 256.9693, medical assistance reimbursement for treatment
72.32of mental illness shall be reimbursed based on diagnostic classifications. Individual
72.33hospital payments established under this section and sections 256.9685, 256.9686, and
72.34256.9695 , in addition to third party and recipient liability, for discharges occurring during
72.35the rate year shall not exceed, in aggregate, the charges for the medical assistance covered
73.1inpatient services paid for the same period of time to the hospital. This payment limitation
73.2shall be calculated separately for medical assistance and general assistance medical
73.3care services. The limitation on general assistance medical care shall be effective for
73.4admissions occurring on or after July 1, 1991. Services that have rates established under
73.5subdivision 11 or 12, must be limited separately from other services. After consulting with
73.6the affected hospitals, the commissioner may consider related hospitals one entity and
73.7may merge the payment rates while maintaining separate provider numbers. The operating
73.8and property base rates per admission or per day shall be derived from the best Medicare
73.9and claims data available when rates are established. The commissioner shall determine
73.10the best Medicare and claims data, taking into consideration variables of recency of the
73.11data, audit disposition, settlement status, and the ability to set rates in a timely manner.
73.12The commissioner shall notify hospitals of payment rates by December 1 of the year
73.13preceding the rate year. The rate setting data must reflect the admissions data used to
73.14establish relative values. Base year changes from 1981 to the base year established for the
73.15rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited
73.16to the limits ending June 30, 1987, on the maximum rate of increase under subdivision
73.171. The commissioner may adjust base year cost, relative value, and case mix index data
73.18to exclude the costs of services that have been discontinued by the October 1 of the year
73.19preceding the rate year or that are paid separately from inpatient services. Inpatient stays
73.20that encompass portions of two or more rate years shall have payments established based
73.21on payment rates in effect at the time of admission unless the date of admission preceded
73.22the rate year in effect by six months or more. In this case, operating payment rates for
73.23services rendered during the rate year in effect and established based on the date of
73.24admission shall be adjusted to the rate year in effect by the hospital cost index.
73.25    (b) For fee-for-service admissions occurring on or after July 1, 2002, the total
73.26payment, before third-party liability and spenddown, made to hospitals for inpatient
73.27services is reduced by .5 percent from the current statutory rates.
73.28    (c) In addition to the reduction in paragraph (b), the total payment for fee-for-service
73.29admissions occurring on or after July 1, 2003, made to hospitals for inpatient services
73.30before third-party liability and spenddown, is reduced five percent from the current
73.31statutory rates. Mental health services within diagnosis related groups 424 to 432, and
73.32facilities defined under subdivision 16 are excluded from this paragraph.
73.33    (d) In addition to the reduction in paragraphs (b) and (c), the total payment for
73.34fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for
73.35inpatient services before third-party liability and spenddown, is reduced 6.0 percent
73.36from the current statutory rates. Mental health services within diagnosis related groups
74.1424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.
74.2Notwithstanding section 256.9686, subdivision 7, for purposes of this paragraph, medical
74.3assistance does not include general assistance medical care. Payments made to managed
74.4care plans shall be reduced for services provided on or after January 1, 2006, to reflect
74.5this reduction.
74.6    (e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
74.7fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made
74.8to hospitals for inpatient services before third-party liability and spenddown, is reduced
74.93.46 percent from the current statutory rates. Mental health services with diagnosis related
74.10groups 424 to 432 and facilities defined under subdivision 16 are excluded from this
74.11paragraph. Payments made to managed care plans shall be reduced for services provided
74.12on or after January 1, 2009, through June 30, 2009, to reflect this reduction.
74.13    (f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
74.14fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2010, made
74.15to hospitals for inpatient services before third-party liability and spenddown, is reduced
74.161.9 percent from the current statutory rates. Mental health services with diagnosis related
74.17groups 424 to 432 and facilities defined under subdivision 16 are excluded from this
74.18paragraph. Payments made to managed care plans shall be reduced for services provided
74.19on or after July 1, 2009, through June 30, 2010, to reflect this reduction.
74.20    (g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
74.21for fee-for-service admissions occurring on or after July 1, 2010, made to hospitals for
74.22inpatient services before third-party liability and spenddown, is reduced 1.79 percent
74.23from the current statutory rates. Mental health services with diagnosis related groups
74.24424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.
74.25Payments made to managed care plans shall be reduced for services provided on or after
74.26July 1, 2010, to reflect this reduction.
74.27(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total
74.28payment for fee-for-service admissions occurring on or after July 1, 2009, made to
74.29hospitals for inpatient services before third-party liability and spenddown, is reduced
74.30one percent from the current statutory rates. Facilities defined under subdivision 16 are
74.31excluded from this paragraph. Payments made to managed care plans shall be reduced for
74.32services provided on or after October 1, 2009, to reflect this reduction.
74.33(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total
74.34payment for fee-for-service admissions occurring on or after July 1, 2011, made to
74.35hospitals for inpatient services before third-party liability and spenddown, is reduced
74.361.96 percent from the current statutory rates. Facilities defined under subdivision 16 are
75.1excluded from this paragraph. Payments made to managed care plans shall be reduced for
75.2services provided on or after January 1, 2011, to reflect this reduction.
75.3EFFECTIVE DATE.This section is effective July 1, 2011.

75.4    Sec. 4. Minnesota Statutes 2008, section 256B.04, subdivision 14a, is amended to read:
75.5    Subd. 14a. Level of need determination. Nonemergency medical transportation
75.6level of need determinations must be performed by a physician, a registered nurse working
75.7under direct supervision of a physician, a physician's assistant, a nurse practitioner, a
75.8licensed practical nurse, or a discharge planner. Nonemergency medical transportation
75.9level of need determinations must not be performed more than semiannually annually on
75.10any individual, unless the individual's circumstances have sufficiently changed so as
75.11to require a new level of need determination. Individuals residing in licensed nursing
75.12facilities are exempt from a level of need determination and are eligible for special
75.13transportation services until the individual no longer resides in a licensed nursing facility.
75.14If a person authorized by this subdivision to perform a level of need determination
75.15determines that an individual requires stretcher transportation, the individual is presumed
75.16to maintain that level of need until otherwise determined by a person authorized to
75.17perform a level of need determination, or for six months, whichever is sooner.

75.18    Sec. 5. Minnesota Statutes 2008, section 256B.055, is amended by adding a
75.19subdivision to read:
75.20    Subd. 15. Adults without children. Medical assistance may be paid for a person
75.21who is:
75.22(1) at least age 21 and under age 65;
75.23(2) not pregnant;
75.24(3) not entitled to Medicare Part A or enrolled in Medicare Part B under Title XVIII
75.25of the Social Security Act;
75.26(4) not an adult in a family with children as defined in section 256L.01, subdivision
75.273a; and
75.28(5) not described in another subdivision of this section.

75.29    Sec. 6. Minnesota Statutes 2008, section 256B.056, subdivision 3, is amended to read:
75.30    Subd. 3. Asset limitations for individuals and families. (a) To be eligible for
75.31medical assistance, a person must not individually own more than $3,000 in assets, or if a
75.32member of a household with two family members, husband and wife, or parent and child,
75.33the household must not own more than $6,000 in assets, plus $200 for each additional
76.1legal dependent. In addition to these maximum amounts, an eligible individual or family
76.2may accrue interest on these amounts, but they must be reduced to the maximum at the
76.3time of an eligibility redetermination. The accumulation of the clothing and personal
76.4needs allowance according to section 256B.35 must also be reduced to the maximum at
76.5the time of the eligibility redetermination. The value of assets that are not considered in
76.6determining eligibility for medical assistance is the value of those assets excluded under
76.7the supplemental security income program for aged, blind, and disabled persons, with
76.8the following exceptions:
76.9(1) household goods and personal effects are not considered;
76.10(2) capital and operating assets of a trade or business that the local agency determines
76.11are necessary to the person's ability to earn an income are not considered;
76.12(3) motor vehicles are excluded to the same extent excluded by the supplemental
76.13security income program;
76.14(4) assets designated as burial expenses are excluded to the same extent excluded by
76.15the supplemental security income program. Burial expenses funded by annuity contracts
76.16or life insurance policies must irrevocably designate the individual's estate as contingent
76.17beneficiary to the extent proceeds are not used for payment of selected burial expenses; and
76.18(5) effective upon federal approval, for a person who no longer qualifies as an
76.19employed person with a disability due to loss of earnings, assets allowed while eligible
76.20for medical assistance under section 256B.057, subdivision 9, are not considered for 12
76.21months, beginning with the first month of ineligibility as an employed person with a
76.22disability, to the extent that the person's total assets remain within the allowed limits of
76.23section 256B.057, subdivision 9, paragraph (c).
76.24(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision
76.2515.

76.26    Sec. 7. Minnesota Statutes 2008, section 256B.056, subdivision 4, is amended to read:
76.27    Subd. 4. Income. (a) To be eligible for medical assistance, a person eligible under
76.28section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of
76.29the federal poverty guidelines. Effective January 1, 2000, and each successive January,
76.30recipients of supplemental security income may have an income up to the supplemental
76.31security income standard in effect on that date.
76.32(b) To be eligible for medical assistance, families and children may have an income
76.33up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996,
76.34AFDC state plan. Effective July 1, 2000, the base AFDC standard in effect on July 16,
76.351996, shall be increased by three percent.
77.1(c) Effective July 1, 2002, to be eligible for medical assistance, families and children
77.2may have an income up to 100 percent of the federal poverty guidelines for the family size.
77.3(d) To be eligible for medical assistance under section 256B.055, subdivision 15, a
77.4person may have an income up to 75 percent of federal poverty guidelines for the family
77.5size.
77.6(e) In computing income to determine eligibility of persons under paragraphs (a) to
77.7(c) (d) who are not residents of long-term care facilities, the commissioner shall disregard
77.8increases in income as required by Public Law Numbers 94-566, section 503; 99-272;
77.9and 99-509. Veterans aid and attendance benefits and Veterans Administration unusual
77.10medical expense payments are considered income to the recipient.

77.11    Sec. 8. Minnesota Statutes 2008, section 256B.0625, subdivision 8, is amended to read:
77.12    Subd. 8. Physical therapy. Medical assistance covers physical therapy and related
77.13services, including specialized maintenance therapy. Authorization by the commissioner
77.14is required to provide medically necessary services to a recipient beyond any of the
77.15following onetime service thresholds, or a lower threshold where one has been established
77.16by the commissioner for a specified service: (1) 80 units of any approved CPT code other
77.17than modalities; (2) 20 modality sessions; and (3) three evaluations or reevaluations.
77.18Services provided by a physical therapy assistant shall be reimbursed at the same rate as
77.19services performed by a physical therapist when the services of the physical therapy
77.20assistant are provided under the direction of a physical therapist who is on the premises.
77.21Services provided by a physical therapy assistant that are provided under the direction
77.22of a physical therapist who is not on the premises shall be reimbursed at 65 percent of
77.23the physical therapist rate.
77.24EFFECTIVE DATE.This section is effective July 1, 2010, for services provided
77.25through fee-for-service, and January 1, 2011, for services provided through managed care.

77.26    Sec. 9. Minnesota Statutes 2008, section 256B.0625, subdivision 8a, is amended to
77.27read:
77.28    Subd. 8a. Occupational therapy. Medical assistance covers occupational therapy
77.29and related services, including specialized maintenance therapy. Authorization by the
77.30commissioner is required to provide medically necessary services to a recipient beyond
77.31any of the following onetime service thresholds, or a lower threshold where one has been
77.32established by the commissioner for a specified service: (1) 120 units of any combination
77.33of approved CPT codes; and (2) two evaluations or reevaluations. Services provided by an
77.34occupational therapy assistant shall be reimbursed at the same rate as services performed
78.1by an occupational therapist when the services of the occupational therapy assistant are
78.2provided under the direction of the occupational therapist who is on the premises. Services
78.3provided by an occupational therapy assistant that are provided under the direction of an
78.4occupational therapist who is not on the premises shall be reimbursed at 65 percent of
78.5the occupational therapist rate.
78.6EFFECTIVE DATE.This section is effective July 1, 2010, for services provided
78.7through fee-for-service, and January 1, 2011, for services provided through managed care.

78.8    Sec. 10. Minnesota Statutes 2008, section 256B.0625, subdivision 8b, is amended to
78.9read:
78.10    Subd. 8b. Speech language pathology and audiology services. Medical assistance
78.11covers speech language pathology and related services, including specialized maintenance
78.12therapy. Authorization by the commissioner is required to provide medically necessary
78.13services to a recipient beyond any of the following onetime service thresholds, or a
78.14lower threshold where one has been established by the commissioner for a specified
78.15service: (1) 50 treatment sessions with any combination of approved CPT codes; and
78.16(2) one evaluation. Medical assistance covers audiology services and related services.
78.17Services provided by a person who has been issued a temporary registration under section
78.18148.5161 shall be reimbursed at the same rate as services performed by a speech language
78.19pathologist or audiologist as long as the requirements of section 148.5161, subdivision
78.203
, are met.
78.21EFFECTIVE DATE.This section is effective July 1, 2010, for services provided
78.22through fee-for-service, and January 1, 2011, for services provided through managed care.

78.23    Sec. 11. Minnesota Statutes 2008, section 256B.0625, is amended by adding a
78.24subdivision to read:
78.25    Subd. 8d. Chiropractic services. Payment for chiropractic services is limited to
78.26one annual evaluation and 12 visits per year unless prior authorization of a greater number
78.27of visits is obtained.

78.28    Sec. 12. Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 13h,
78.29is amended to read:
78.30    Subd. 13h. Medication therapy management services. (a) Medical assistance
78.31and general assistance medical care cover medication therapy management services for
78.32a recipient taking four or more prescriptions to treat or prevent two or more chronic
79.1medical conditions, or a recipient with a drug therapy problem that is identified or prior
79.2authorized by the commissioner that has resulted or is likely to result in significant
79.3nondrug program costs. The commissioner may cover medical therapy management
79.4services under MinnesotaCare if the commissioner determines this is cost-effective. For
79.5purposes of this subdivision, "medication therapy management" means the provision
79.6of the following pharmaceutical care services by a licensed pharmacist to optimize the
79.7therapeutic outcomes of the patient's medications:
79.8    (1) performing or obtaining necessary assessments of the patient's health status;
79.9    (2) formulating a medication treatment plan;
79.10    (3) monitoring and evaluating the patient's response to therapy, including safety
79.11and effectiveness;
79.12    (4) performing a comprehensive medication review to identify, resolve, and prevent
79.13medication-related problems, including adverse drug events;
79.14    (5) documenting the care delivered and communicating essential information to
79.15the patient's other primary care providers;
79.16    (6) providing verbal education and training designed to enhance patient
79.17understanding and appropriate use of the patient's medications;
79.18    (7) providing information, support services, and resources designed to enhance
79.19patient adherence with the patient's therapeutic regimens; and
79.20    (8) coordinating and integrating medication therapy management services within the
79.21broader health care management services being provided to the patient.
79.22Nothing in this subdivision shall be construed to expand or modify the scope of practice of
79.23the pharmacist as defined in section 151.01, subdivision 27.
79.24    (b) To be eligible for reimbursement for services under this subdivision, a pharmacist
79.25must meet the following requirements:
79.26    (1) have a valid license issued under chapter 151;
79.27    (2) have graduated from an accredited college of pharmacy on or after May 1996, or
79.28completed a structured and comprehensive education program approved by the Board of
79.29Pharmacy and the American Council of Pharmaceutical Education for the provision and
79.30documentation of pharmaceutical care management services that has both clinical and
79.31didactic elements;
79.32    (3) be practicing in an ambulatory care setting as part of a multidisciplinary team or
79.33have developed a structured patient care process that is offered in a private or semiprivate
79.34patient care area that is separate from the commercial business that also occurs in the
79.35setting, or in home settings, excluding long-term care and group homes, if the service is
79.36ordered by the provider-directed care coordination team; and
80.1    (4) make use of an electronic patient record system that meets state standards.
80.2    (c) For purposes of reimbursement for medication therapy management services,
80.3the commissioner may enroll individual pharmacists as medical assistance and general
80.4assistance medical care providers. The commissioner may also establish contact
80.5requirements between the pharmacist and recipient, including limiting the number of
80.6reimbursable consultations per recipient.
80.7(d) If there are no pharmacists who meet the requirements of paragraph (b) practicing
80.8within a reasonable geographic distance of the patient, a pharmacist who meets the
80.9requirements may provide the services via two-way interactive video. Reimbursement
80.10shall be at the same rates and under the same conditions that would otherwise apply to
80.11the services provided. To qualify for reimbursement under this paragraph, the pharmacist
80.12providing the services must meet the requirements of paragraph (b), and must be located
80.13within an ambulatory care setting approved by the commissioner. The patient must also
80.14be located within an ambulatory care setting approved by the commissioner. Services
80.15provided under this paragraph may not be transmitted into the patient's residence.
80.16(e) The commissioner shall establish a pilot project for an intensive medication
80.17therapy management program for patients identified by the commissioner with multiple
80.18chronic conditions and a high number of medications who are at high risk of preventable
80.19hospitalizations, emergency room use, medication complications, and suboptimal
80.20treatment outcomes due to medication-related problems. For purposes of the pilot
80.21project, medication therapy management services may be provided in a patient's home
80.22or community setting, in addition to other authorized settings. The commissioner may
80.23waive existing payment policies and establish special payment rates for the pilot project.
80.24The pilot project must be designed to produce a net savings to the state compared to the
80.25estimated costs that would otherwise be incurred for similar patients without the program.
80.26The pilot project must begin by January 1, 2010, and end June 30, 2012.
80.27EFFECTIVE DATE.This section is effective July 1, 2010.

80.28    Sec. 13. Minnesota Statutes 2008, section 256B.0625, subdivision 18a, is amended to
80.29read:
80.30    Subd. 18a. Access to medical services. (a) Medical assistance reimbursement for
80.31meals for persons traveling to receive medical care may not exceed $5.50 for breakfast,
80.32$6.50 for lunch, or $8 for dinner.
80.33    (b) Medical assistance reimbursement for lodging for persons traveling to receive
80.34medical care may not exceed $50 per day unless prior authorized by the local agency.
81.1    (c) Medical assistance direct mileage reimbursement to the eligible person or the
81.2eligible person's driver may not exceed 20 cents per mile.
81.3    (d) Regardless of the number of employees that an enrolled health care provider
81.4may have, medical assistance covers sign and oral language interpreter services when
81.5provided by an enrolled health care provider during the course of providing a direct,
81.6person-to-person covered health care service to an enrolled recipient with limited English
81.7proficiency or who has a hearing loss and uses interpreting services. Coverage for
81.8face-to-face oral language interpreter services shall be provided only if the oral language
81.9interpreter used by the enrolled health care provider is listed in the registry or roster
81.10established under section 144.058.
81.11EFFECTIVE DATE.This section is effective January 1, 2011.

81.12    Sec. 14. Minnesota Statutes 2008, section 256B.0625, subdivision 31, is amended to
81.13read:
81.14    Subd. 31. Medical supplies and equipment. Medical assistance covers medical
81.15supplies and equipment. Separate payment outside of the facility's payment rate shall
81.16be made for wheelchairs and wheelchair accessories for recipients who are residents
81.17of intermediate care facilities for the developmentally disabled. Reimbursement for
81.18wheelchairs and wheelchair accessories for ICF/MR recipients shall be subject to the same
81.19conditions and limitations as coverage for recipients who do not reside in institutions. A
81.20wheelchair purchased outside of the facility's payment rate is the property of the recipient.
81.21The commissioner may set reimbursement rates for specified categories of medical
81.22supplies at levels below the Medicare payment rate.

81.23    Sec. 15. Minnesota Statutes 2008, section 256B.0625, is amended by adding a
81.24subdivision to read:
81.25    Subd. 54. Services provided in birth centers. (a) Medical assistance covers
81.26services provided in a licensed birth center by a licensed health professional if the service
81.27would otherwise be covered if provided in a hospital.
81.28(b) Facility services provided by a birth center shall be paid at the lower of billed
81.29charges or 70 percent of the statewide average for a facility payment rate made to a
81.30hospital for an uncomplicated vaginal birth as determined using the most recent calendar
81.31year for which complete claims data is available. If a recipient is transported from a birth
81.32center to a hospital prior to the delivery, the payment for facility services to the birth center
81.33shall be the lower of billed charges or 15 percent of the average facility payment made to a
82.1hospital for the services provided for an uncomplicated vaginal delivery as determined
82.2using the most recent calendar year for which complete claims data is available.
82.3(c) Nursery care services provided by a birth center shall be paid the lower of billed
82.4charges or 70 percent of the statewide average for a payment rate paid to a hospital for
82.5nursery care as determined by using the most recent calendar year for which complete
82.6claims data is available.
82.7(d) Professional services provided by traditional midwives licensed under chapter
82.8147D shall be paid at the lower of billed charges or 100 percent of the rate paid to a
82.9physician performing the same services. If a recipient is transported from a birth center to
82.10a hospital prior to the delivery, a licensed traditional midwife who does not perform the
82.11delivery may not bill for any delivery services. Services are not covered if provided by an
82.12unlicensed traditional midwife.
82.13(e) The commissioner shall apply for any necessary waivers from the Centers for
82.14Medicare and Medicaid Services to allow birth centers and birth center providers to be
82.15reimbursed.
82.16EFFECTIVE DATE.This section is effective July 1, 2010.

82.17    Sec. 16. Minnesota Statutes 2008, section 256B.0631, subdivision 1, is amended to
82.18read:
82.19    Subdivision 1. Co-payments. (a) Except as provided in subdivision 2, the medical
82.20assistance benefit plan shall include the following co-payments for all recipients, effective
82.21for services provided on or after October 1, 2003, and before January 1, 2009:
82.22    (1) $3 per nonpreventive visit. For purposes of this subdivision, a visit means an
82.23episode of service which is required because of a recipient's symptoms, diagnosis, or
82.24established illness, and which is delivered in an ambulatory setting by a physician or
82.25physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
82.26audiologist, optician, or optometrist;
82.27    (2) $3 for eyeglasses;
82.28    (3) $6 for nonemergency visits to a hospital-based emergency room; and
82.29    (4) $3 per brand-name drug prescription and $1 per generic drug prescription,
82.30subject to a $12 per month maximum for prescription drug co-payments. No co-payments
82.31shall apply to antipsychotic drugs when used for the treatment of mental illness.
82.32    (b) Except as provided in subdivision 2, the medical assistance benefit plan shall
82.33include the following co-payments for all recipients, effective for services provided on
82.34or after January 1, 2009:
82.35    (1) $6 $3.50 for nonemergency visits to a hospital-based emergency room;
83.1    (2) $3 per brand-name drug prescription and $1 per generic drug prescription,
83.2subject to a $7 per month maximum for prescription drug co-payments. No co-payments
83.3shall apply to antipsychotic drugs when used for the treatment of mental illness; and
83.4    (3) for individuals identified by the commissioner with income at or below 100
83.5percent of the federal poverty guidelines, total monthly co-payments must not exceed five
83.6percent of family income. For purposes of this paragraph, family income is the total
83.7earned and unearned income of the individual and the individual's spouse, if the spouse is
83.8enrolled in medical assistance and also subject to the five percent limit on co-payments.
83.9    (c) Recipients of medical assistance are responsible for all co-payments in this
83.10subdivision.
83.11EFFECTIVE DATE.This section is effective January 1, 2011.

83.12    Sec. 17. Minnesota Statutes 2008, section 256B.0631, subdivision 3, is amended to
83.13read:
83.14    Subd. 3. Collection. (a) The medical assistance reimbursement to the provider
83.15shall be reduced by the amount of the co-payment, except that reimbursements shall
83.16not be reduced:
83.17    (1) once a recipient has reached the $12 per month maximum or the $7 per month
83.18maximum effective January 1, 2009, for prescription drug co-payments; or
83.19    (2) for a recipient identified by the commissioner under 100 percent of the federal
83.20poverty guidelines who has met their monthly five percent co-payment limit.
83.21    (b) The provider collects the co-payment from the recipient. Providers may not deny
83.22services to recipients who are unable to pay the co-payment.
83.23    (c) Medical assistance reimbursement to fee-for-service providers and payments to
83.24managed care plans shall not be increased as a result of the removal of the co-payments
83.25effective on or after January 1, 2009.

83.26    Sec. 18. Minnesota Statutes 2008, section 256B.0644, as amended by Laws 2010,
83.27chapter 200, article 1, section 6, is amended to read:
83.28256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE
83.29PROGRAMS.
83.30    (a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a
83.31health maintenance organization, as defined in chapter 62D, must participate as a provider
83.32or contractor in the medical assistance program, general assistance medical care program,
83.33and MinnesotaCare as a condition of participating as a provider in health insurance plans
84.1and programs or contractor for state employees established under section 43A.18, the
84.2public employees insurance program under section 43A.316, for health insurance plans
84.3offered to local statutory or home rule charter city, county, and school district employees,
84.4the workers' compensation system under section 176.135, and insurance plans provided
84.5through the Minnesota Comprehensive Health Association under sections 62E.01 to
84.662E.19 . The limitations on insurance plans offered to local government employees shall
84.7not be applicable in geographic areas where provider participation is limited by managed
84.8care contracts with the Department of Human Services.
84.9    (b) For providers other than health maintenance organizations, participation in the
84.10medical assistance program means that:
84.11     (1) the provider accepts new medical assistance, general assistance medical care,
84.12and MinnesotaCare patients;
84.13    (2) for providers other than dental service providers, at least 20 percent of the
84.14provider's patients are covered by medical assistance, general assistance medical care,
84.15and MinnesotaCare as their primary source of coverage; or
84.16    (3) for dental service providers, at least ten percent of the provider's patients are
84.17covered by medical assistance, general assistance medical care, and MinnesotaCare as
84.18their primary source of coverage, or the provider accepts new medical assistance and
84.19MinnesotaCare patients who are children with special health care needs. For purposes
84.20of this section, "children with special health care needs" means children up to age 18
84.21who: (i) require health and related services beyond that required by children generally;
84.22and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional
84.23condition, including: bleeding and coagulation disorders; immunodeficiency disorders;
84.24cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other
84.25neurological diseases; visual impairment or deafness; Down syndrome and other genetic
84.26disorders; autism; fetal alcohol syndrome; and other conditions designated by the
84.27commissioner after consultation with representatives of pediatric dental providers and
84.28consumers.
84.29    (c) Patients seen on a volunteer basis by the provider at a location other than
84.30the provider's usual place of practice may be considered in meeting the participation
84.31requirement in this section. The commissioner shall establish participation requirements
84.32for health maintenance organizations. The commissioner shall provide lists of participating
84.33medical assistance providers on a quarterly basis to the commissioner of management and
84.34budget, the commissioner of labor and industry, and the commissioner of commerce. Each
84.35of the commissioners shall develop and implement procedures to exclude as participating
84.36providers in the program or programs under their jurisdiction those providers who do
85.1not participate in the medical assistance program. The commissioner of management
85.2and budget shall implement this section through contracts with participating health and
85.3dental carriers.
85.4(d) Any hospital or other provider that is participating in a coordinated care
85.5delivery system under section 256D.031, subdivision 6, or receives payments from the
85.6uncompensated care pool under section 256D.031, subdivision 8, shall not refuse to
85.7provide services to any patient enrolled in general assistance medical care regardless of
85.8the availability or the amount of payment.
85.9    (e) For purposes of paragraphs (a) and (b), participation in the general assistance
85.10medical care program applies only to pharmacy providers.
85.11EFFECTIVE DATE.This section is effective June 1, 2010.

85.12    Sec. 19. [256B.0755] HEALTH CARE DELIVERY SYSTEMS
85.13DEMONSTRATION PROJECT.
85.14    Subdivision 1. Implementation. (a) The commissioner shall develop and
85.15authorize a demonstration project to test alternative and innovative health care delivery
85.16systems, including accountable care organizations that provide services to a specified
85.17patient population for an agreed upon total cost of care or risk-gain sharing payment
85.18arrangement. The commissioner shall develop a request for proposals for participation in
85.19the demonstration project in consultation with hospitals, primary care providers, health
85.20plans, and other key stakeholders.
85.21(b) In developing the request for proposals, the commissioner shall:
85.22(1) establish uniform statewide methods of forecasting utilization and cost of care
85.23for the appropriate Minnesota public program populations, to be used by the commissioner
85.24for the health care delivery system projects;
85.25(2) identify key indicators of quality, access, patient satisfaction, and other
85.26performance indicators that will be measured, in addition to indicators for measuring
85.27cost savings;
85.28(3) allow maximum flexibility to encourage innovation and variation so that a variety
85.29of provider collaborations are able to become health care delivery systems;
85.30(4) encourage and authorize different levels and types of financial risk;
85.31(5) encourage and authorize projects representing a wide variety of geographic
85.32locations, patient populations, provider relationships, and care coordination models;
85.33(6) encourage projects that involve close partnerships between the health care
85.34delivery system and counties and nonprofit agencies that provide services to patients
86.1enrolled with the health care delivery system, including social services, public health,
86.2mental health, community-based services, and continuing care;
86.3(7) encourage projects established by community hospitals, clinics, and other
86.4providers in rural communities;
86.5(8) identify required covered services for a total cost of care model or services
86.6considered in whole or partially in an analysis of utilization for a risk/gain sharing model;
86.7(9) establish a mechanism to monitor enrollment;
86.8(10) establish quality standards for the delivery system demonstrations;
86.9(11) encourage participation of privately insured population so as to create sufficient
86.10alignment in demonstration systems; and
86.11(12) coordinate projects with any coordinated care delivery systems established
86.12under section 256D.031.
86.13(c) To be eligible to participate in the demonstration project, a health care delivery
86.14system must:
86.15(1) provide required covered services and care coordination to recipients enrolled in
86.16the health care delivery system;
86.17(2) establish a process to monitor enrollment and ensure the quality of care provided;
86.18(3) in cooperation with counties and community social service agencies, coordinate
86.19the delivery of health care services with existing social services programs;
86.20(4) provide a system for advocacy and consumer protection; and
86.21(5) adopt innovative and cost-effective methods of care delivery and coordination,
86.22which may include the use of allied health professionals, telemedicine, patient educators,
86.23care coordinators, and community health workers.
86.24(d) A health care delivery system demonstration may be formed by the following
86.25groups of providers of services and suppliers if they have established a mechanism for
86.26shared governance:
86.27(1) professionals in group practice arrangements;
86.28(2) networks of individual practices of professionals;
86.29(3) partnerships or joint venture arrangements between hospitals and health care
86.30professionals;
86.31(4) hospitals employing professionals; and
86.32(5) other groups of providers of services and suppliers as the commissioner
86.33determines appropriate.
86.34A managed care plan or county-based purchasing plan may participate in this
86.35demonstration in collaboration with one or more of the entities listed in clauses (1) to (5).
87.1A health care delivery system may contract with a managed care plan or a
87.2county-based purchasing plan to provide administrative services, including the
87.3administration of a payment system using the payment methods established by the
87.4commissioner for health care delivery systems.
87.5(e) The commissioner may require a health care delivery system to enter into
87.6additional third-party contractual relationships for the assessment of risk and purchase of
87.7stop loss insurance or another form of insurance risk management related to the delivery
87.8of care described in paragraph (c).
87.9    Subd. 2. Enrollment. (a) Individuals eligible for medical assistance or
87.10MinnesotaCare shall be eligible for enrollment in a health care delivery system.
87.11(b) Eligible applicants and recipients may enroll in a health care delivery system if
87.12a system serves the county in which the applicant or recipient resides. If more than one
87.13health care delivery system serves a county, the applicant or recipient shall be allowed
87.14to choose among the delivery systems. The commissioner may assign an applicant or
87.15recipient to a health care delivery system if a health care delivery system is available and
87.16no choice has been made by the applicant or recipient.
87.17    Subd. 3. Accountability. (a) Health care delivery systems must accept responsibility
87.18for the quality of care based on standards established under subdivision 1, paragraph (b),
87.19clause (10), and the cost of care or utilization of services provided to its enrollees under
87.20subdivision 1, paragraph (b), clause (1).
87.21(b) A health care delivery system may contract and coordinate with providers and
87.22clinics for the delivery of services and shall contract with community health clinics,
87.23federally qualified health centers, community mental health centers or programs, and rural
87.24clinics to the extent practicable.
87.25    Subd. 4. Payment system. (a) In developing a payment system for health care
87.26delivery systems, the commissioner shall establish a total cost of care benchmark or a
87.27risk/gain sharing payment model to be paid for services provided to the recipients enrolled
87.28in a health care delivery system.
87.29(b) The payment system may include incentive payments to health care delivery
87.30systems that meet or exceed annual quality and performance targets realized through
87.31the coordination of care.
87.32(c) An amount equal to the savings realized to the general fund as a result of the
87.33demonstration project shall be transferred each fiscal year to the health care access fund.
87.34    Subd. 5. Outpatient prescription drug coverage. Outpatient prescription drug
87.35coverage may be provided through accountable care organizations only if the delivery
87.36method qualifies for federal prescription drug rebates.
88.1    Subd. 6. Federal approval. The commissioner shall apply for any federal waivers
88.2or other federal approval required to implement this section. The commissioner shall
88.3also apply for any applicable grant or demonstration under the Patient Protection and
88.4Affordable Health Care Act, Public Law 111-148, or the Health Care and Education
88.5Reconciliation Act of 2010, Public Law 111-152, that would further the purposes of or
88.6assist in the establishment of accountable care organizations.
88.7    Subd. 7. Expansion. The commissioner shall explore the expansion of the
88.8demonstration project to include additional medical assistance and MinnesotaCare
88.9enrollees, and shall seek participation of Medicare in demonstration projects. The
88.10commissioner shall seek to include participation of privately insured persons and Medicare
88.11recipients in the health care delivery demonstration.
88.12EFFECTIVE DATE.This section is effective July 1, 2011.

88.13    Sec. 20. [256B.0756] HENNEPIN AND RAMSEY COUNTIES PILOT
88.14PROGRAM.
88.15(a) The commissioner, upon federal approval of a new waiver request or amendment
88.16of an existing demonstration, may establish a pilot program in Hennepin County or
88.17Ramsey County, or both, to test alternative and innovative integrated health care delivery
88.18networks.
88.19(b) Individuals eligible for the pilot program shall be individuals who are eligible for
88.20medical assistance under Minnesota Statutes, section 256B.055, subdivision 15, and who
88.21reside in Hennepin County or Ramsey County.
88.22(c) Individuals enrolled in the pilot shall be enrolled in an integrated health care
88.23delivery network in their county of residence. The integrated health care delivery network
88.24in Hennepin County shall be a network, such as an accountable care organization or a
88.25community-based collaborative care network, created by or including Hennepin County
88.26Medical Center. The integrated health care delivery network in Ramsey County shall be
88.27a network, such as an accountable care organization or community-based collaborative
88.28care network, created by or including Regions Hospital.
88.29(d) The commissioner shall cap pilot program enrollment at 7,000 enrollees for
88.30Hennepin County and 3,500 enrollees for Ramsey County.
88.31(e) In developing a payment system for the pilot programs, the commissioner shall
88.32establish a total cost of care for the recipients enrolled in the pilot programs that equals
88.33the cost of care that would otherwise be spent for these enrollees in the prepaid medical
88.34assistance program.
89.1(f) Counties may transfer funds necessary to support the nonfederal share of
89.2payments for integrated health care delivery networks in their county. Such transfers per
89.3county shall not exceed 15 percent of the expected expenses for county enrollees.
89.4(g) The commissioner shall apply to the federal government for, or as appropriate,
89.5cooperate with counties, providers, or other entities that are applying for any applicable
89.6grant or demonstration under the Patient Protection and Affordable Health Care Act, Public
89.7Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law
89.8111-152, that would further the purposes of or assist in the creation of an integrated health
89.9care delivery network for the purposes of this subdivision, including, but not limited to, a
89.10global payment demonstration or the community-based collaborative care network grants.

89.11    Sec. 21. Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a,
89.12is amended to read:
89.13    Subd. 5a. Managed care contracts. (a) Managed care contracts under this section
89.14and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year
89.15basis beginning January 1, 1996. Managed care contracts which were in effect on June
89.1630, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995
89.17through December 31, 1995 at the same terms that were in effect on June 30, 1995. The
89.18commissioner may issue separate contracts with requirements specific to services to
89.19medical assistance recipients age 65 and older.
89.20    (b) A prepaid health plan providing covered health services for eligible persons
89.21pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms
89.22of its contract with the commissioner. Requirements applicable to managed care programs
89.23under chapters 256B, 256D, and 256L, established after the effective date of a contract
89.24with the commissioner take effect when the contract is next issued or renewed.
89.25    (c) Effective for services rendered on or after January 1, 2003, the commissioner
89.26shall withhold five percent of managed care plan payments under this section and
89.27county-based purchasing plan's payment rate plan payments under section 256B.692 for
89.28the prepaid medical assistance and general assistance medical care programs pending
89.29completion of performance targets. Each performance target must be quantifiable,
89.30objective, measurable, and reasonably attainable, except in the case of a performance target
89.31based on a federal or state law or rule. Criteria for assessment of each performance target
89.32must be outlined in writing prior to the contract effective date. The managed care plan
89.33must demonstrate, to the commissioner's satisfaction, that the data submitted regarding
89.34attainment of the performance target is accurate. The commissioner shall periodically
89.35change the administrative measures used as performance targets in order to improve plan
90.1performance across a broader range of administrative services. The performance targets
90.2must include measurement of plan efforts to contain spending on health care services and
90.3administrative activities. The commissioner may adopt plan-specific performance targets
90.4that take into account factors affecting only one plan, including characteristics of the
90.5plan's enrollee population. The withheld funds must be returned no sooner than July of the
90.6following year if performance targets in the contract are achieved. The commissioner may
90.7exclude special demonstration projects under subdivision 23.
90.8    (d) Effective for services rendered on or after January 1, 2009, through December 31,
90.92009, the commissioner shall withhold three percent of managed care plan payments under
90.10this section and county-based purchasing plan payments under section 256B.692 for the
90.11prepaid medical assistance and general assistance medical care programs. The withheld
90.12funds must be returned no sooner than July 1 and no later than July 31 of the following
90.13year. The commissioner may exclude special demonstration projects under subdivision 23.
90.14    The return of the withhold under this paragraph is not subject to the requirements of
90.15paragraph (c).
90.16(e) Effective for services provided on or after January 1, 2010, the commissioner
90.17shall require that managed care plans use the assessment and authorization processes,
90.18forms, timelines, standards, documentation, and data reporting requirements, protocols,
90.19billing processes, and policies consistent with medical assistance fee-for-service or the
90.20Department of Human Services contract requirements consistent with medical assistance
90.21fee-for-service or the Department of Human Services contract requirements for all
90.22personal care assistance services under section 256B.0659.
90.23(f) Effective for services rendered on or after January 1, 2010, through December
90.2431, 2010, the commissioner shall withhold 3.5 percent of managed care plan payments
90.25under this section and county-based purchasing plan payments under section 256B.692
90.26for the prepaid medical assistance program. The withheld funds must be returned no
90.27sooner than July 1 and no later than July 31 of the following year. The commissioner may
90.28exclude special demonstration projects under subdivision 23.
90.29(g) Effective for services rendered on or after January 1, 2011, the commissioner
90.30shall include as part of the performance targets described in paragraph (c) a reduction in
90.31the health plan's emergency room utilization rate for state health care program enrollees
90.32by a measurable rate of five percent from the plan's utilization rate for state health care
90.33program enrollees for the previous calendar year.
90.34The withheld funds must be returned no sooner than July 1 and no later than July 31
90.35of the following calendar year if the managed care plan demonstrates to the satisfaction of
90.36the commissioner that a reduction in the utilization rate was achieved.
91.1The withhold described in this paragraph shall continue for each consecutive
91.2contract period until the plan's emergency room utilization rate for state health care
91.3program enrollees is reduced by 25 percent of the plan's emergency room utilization
91.4rate for state health care program enrollees for calendar year 2009. Hospitals shall
91.5cooperate with the health plans in meeting this performance target and shall accept
91.6payment withholds that may be returned to the hospitals if the performance target is
91.7achieved. The commissioner shall structure the withhold so that the commissioner returns
91.8a portion of the withheld funds in amounts commensurate with achieved reductions in
91.9utilization less than the targeted amount. The withhold in this paragraph does not apply to
91.10county-based purchasing plans.
91.11(g) (h) Effective for services rendered on or after January 1, 2011, through December
91.1231, 2011, the commissioner shall withhold four percent of managed care plan payments
91.13under this section and county-based purchasing plan payments under section 256B.692
91.14for the prepaid medical assistance program. The withheld funds must be returned no
91.15sooner than July 1 and no later than July 31 of the following year. The commissioner may
91.16exclude special demonstration projects under subdivision 23.
91.17(h) (i) Effective for services rendered on or after January 1, 2012, through December
91.1831, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments
91.19under this section and county-based purchasing plan payments under section 256B.692
91.20for the prepaid medical assistance program. The withheld funds must be returned no
91.21sooner than July 1 and no later than July 31 of the following year. The commissioner may
91.22exclude special demonstration projects under subdivision 23.
91.23(i) (j) Effective for services rendered on or after January 1, 2013, through December
91.2431, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments
91.25under this section and county-based purchasing plan payments under section 256B.692
91.26for the prepaid medical assistance program. The withheld funds must be returned no
91.27sooner than July 1 and no later than July 31 of the following year. The commissioner may
91.28exclude special demonstration projects under subdivision 23.
91.29(j) (k) Effective for services rendered on or after January 1, 2014, the commissioner
91.30shall withhold three percent of managed care plan payments under this section and
91.31county-based purchasing plan payments under section 256B.692 for the prepaid medical
91.32assistance and prepaid general assistance medical care programs. The withheld funds must
91.33be returned no sooner than July 1 and no later than July 31 of the following year. The
91.34commissioner may exclude special demonstration projects under subdivision 23.
92.1(k) (l) A managed care plan or a county-based purchasing plan under section
92.2256B.692 may include as admitted assets under section 62D.044 any amount withheld
92.3under this section that is reasonably expected to be returned.
92.4(l) (m) Contracts between the commissioner and a prepaid health plan are exempt
92.5from the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph
92.6(a), and 7.
92.7EFFECTIVE DATE.This section is effective July 1, 2010.

92.8    Sec. 22. Minnesota Statutes 2008, section 256B.69, is amended by adding a
92.9subdivision to read:
92.10    Subd. 5l. Actuarial soundness. (a) Rates paid to managed care plans and
92.11county-based purchasing plans shall satisfy requirements for actuarial soundness. In order
92.12to comply with this subdivision, the rates must:
92.13(1) be neither inadequate nor excessive;
92.14(2) satisfy federal requirements;
92.15(3) in the case of contracts with incentive arrangements, not exceed 105 percent of
92.16the approved capitation payments attributable to the enrollees or services covered by
92.17the incentive arrangement;
92.18(4) be developed in accordance with generally accepted actuarial principles and
92.19practices;
92.20(5) be appropriate for the populations to be covered and the services to be furnished
92.21under the contract; and
92.22(6) be certified as meeting the requirements of federal regulations by actuaries who
92.23meet the qualification standards established by the American Academy of Actuaries and
92.24follow the practice standards established by the Actuarial Standards Board.
92.25(b) Each year within 30 days of the establishment of plan rates, the commissioner
92.26shall report to the chairs and ranking minority members of the senate Health and Human
92.27Services Budget Division and the house of representatives Health Care and Human
92.28Services Finance Division to certify how each of these conditions have been met by
92.29the new payment rates.

92.30    Sec. 23. Minnesota Statutes 2008, section 256B.69, subdivision 27, is amended to read:
92.31    Subd. 27. Information for persons with limited English-language proficiency.
92.32    Managed care contracts entered into under this section and sections 256D.03, subdivision
92.334
, paragraph (c), and section 256L.12 must require demonstration providers to provide
92.34language assistance to enrollees that ensures meaningful access to its programs and
93.1services according to Title VI of the Civil Rights Act and federal regulations adopted
93.2under that law or any guidance from the United States Department of Health and Human
93.3Services.
93.4EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

93.5    Sec. 24. Minnesota Statutes 2008, section 256B.692, subdivision 1, is amended to read:
93.6    Subdivision 1. In general. County boards or groups of county boards may elect
93.7to purchase or provide health care services on behalf of persons eligible for medical
93.8assistance and general assistance medical care who would otherwise be required to or may
93.9elect to participate in the prepaid medical assistance or prepaid general assistance medical
93.10care programs according to sections section 256B.69 and 256D.03. Counties that elect to
93.11purchase or provide health care under this section must provide all services included in
93.12prepaid managed care programs according to sections section 256B.69, subdivisions 1
93.13to 22
, and 256D.03. County-based purchasing under this section is governed by section
93.14256B.69 , unless otherwise provided for under this section.
93.15EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

93.16    Sec. 25. Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is
93.17amended to read:
93.18    Subdivision 1. Physician reimbursement. (a) Effective for services rendered on
93.19or after October 1, 1992, the commissioner shall make payments for physician services
93.20as follows:
93.21    (1) payment for level one Centers for Medicare and Medicaid Services' common
93.22procedural coding system codes titled "office and other outpatient services," "preventive
93.23medicine new and established patient," "delivery, antepartum, and postpartum care,"
93.24"critical care," cesarean delivery and pharmacologic management provided to psychiatric
93.25patients, and level three codes for enhanced services for prenatal high risk, shall be paid
93.26at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June
93.2730, 1992. If the rate on any procedure code within these categories is different than the
93.28rate that would have been paid under the methodology in section 256B.74, subdivision 2,
93.29then the larger rate shall be paid;
93.30    (2) payments for all other services shall be paid at the lower of (i) submitted charges,
93.31or (ii) 15.4 percent above the rate in effect on June 30, 1992; and
93.32    (3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th
93.33percentile of 1989, less the percent in aggregate necessary to equal the above increases
94.1except that payment rates for home health agency services shall be the rates in effect
94.2on September 30, 1992.
94.3    (b) Effective for services rendered on or after January 1, 2000, payment rates for
94.4physician and professional services shall be increased by three percent over the rates
94.5in effect on December 31, 1999, except for home health agency and family planning
94.6agency services. The increases in this paragraph shall be implemented January 1, 2000,
94.7for managed care.
94.8(c) Effective for services rendered on or after July 1, 2009, payment rates for
94.9physician and professional services shall be reduced by five percent over the rates in effect
94.10on June 30, 2009. This reduction does and the reductions in paragraph (d) do not apply
94.11to office or other outpatient visits, preventive medicine visits and family planning visits
94.12billed by physicians, advanced practice nurses, or physician assistants in a family planning
94.13agency or in one of the following primary care practices: general practice, general internal
94.14medicine, general pediatrics, general geriatrics, and family medicine. This reduction does
94.15and the reductions in paragraph (d) do not apply to federally qualified health centers,
94.16rural health centers, and Indian health services. Effective October 1, 2009, payments
94.17made to managed care plans and county-based purchasing plans under sections 256B.69,
94.18256B.692 , and 256L.12 shall reflect the payment reduction described in this paragraph.
94.19(d) Effective for services rendered on or after July 1, 2010, payment rates for
94.20physician and professional services shall be reduced an additional seven percent over
94.21the five percent reduction in rates described in paragraph (c). This additional reduction
94.22does not apply to physical therapy services, occupational therapy services, and speech
94.23pathology and related services provided on or after July 1, 2010. This additional reduction
94.24does not apply to physician services billed by a psychiatrist or an advanced practice nurse
94.25with a specialty in mental health. Effective October 1, 2010, payments made to managed
94.26care plans and county-based purchasing plans under sections 256B.69, 256B.692, and
94.27256L.12 shall reflect the payment reduction described in this paragraph.
94.28EFFECTIVE DATE.This section is effective July 1, 2010.

94.29    Sec. 26. Minnesota Statutes 2008, section 256B.76, subdivision 2, is amended to read:
94.30    Subd. 2. Dental reimbursement. (a) Effective for services rendered on or after
94.31October 1, 1992, the commissioner shall make payments for dental services as follows:
94.32    (1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25
94.33percent above the rate in effect on June 30, 1992; and
94.34    (2) dental rates shall be converted from the 50th percentile of 1982 to the 50th
94.35percentile of 1989, less the percent in aggregate necessary to equal the above increases.
95.1    (b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments
95.2shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.
95.3    (c) Effective for services rendered on or after January 1, 2000, payment rates for
95.4dental services shall be increased by three percent over the rates in effect on December
95.531, 1999.
95.6    (d) Effective for services provided on or after January 1, 2002, payment for
95.7diagnostic examinations and dental x-rays provided to children under age 21 shall be the
95.8lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.
95.9    (e) The increases listed in paragraphs (b) and (c) shall be implemented January 1,
95.102000, for managed care.
95.11(f) Effective for dental services rendered on or after October 1, 2010, by a
95.12state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based
95.13on the Medicare principles of reimbursement. This payment shall be effective for services
95.14rendered on or after January 1, 2011, to recipients enrolled in managed care plans or
95.15county-based purchasing plans.
95.16(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics
95.17in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal
95.18year, a supplemental state payment equal to the difference between the total payments
95.19in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated
95.20services for the operation of the dental clinics.
95.21(h) If the cost-based payment system for state-operated dental clinics described in
95.22paragraph (f) does not receive federal approval, then state-operated dental clinics shall be
95.23designated as critical access dental providers under subdivision 4, paragraph (b), and shall
95.24receive the critical access dental reimbursement rate as described under subdivision 4,
95.25paragraph (a).
95.26EFFECTIVE DATE.This section is effective July 1, 2010.

95.27    Sec. 27. Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:
95.28    Subd. 4. Critical access dental providers. (a) Effective for dental services
95.29rendered on or after January 1, 2002, the commissioner shall increase reimbursements
95.30to dentists and dental clinics deemed by the commissioner to be critical access dental
95.31providers. For dental services rendered on or after July 1, 2007, the commissioner shall
95.32increase reimbursement by 30 percent above the reimbursement rate that would otherwise
95.33be paid to the critical access dental provider. The commissioner shall pay the health plan
95.34companies managed care plans and county-based purchasing plans in amounts sufficient
95.35to reflect increased reimbursements to critical access dental providers as approved by the
96.1commissioner. In determining which dentists and dental clinics shall be deemed critical
96.2access dental providers, the commissioner shall review:
96.3(b) The commissioner shall designate the following dentists and dental clinics as
96.4critical access dental providers:
96.5    (1) the utilization rate in the service area in which the dentist or dental clinic operates
96.6for dental services to patients covered by medical assistance, general assistance medical
96.7care, or MinnesotaCare as their primary source of coverage nonprofit community clinics
96.8that:
96.9(i) have nonprofit status in accordance with chapter 317A;
96.10(ii) have tax exempt status in accordance with the Internal Revenue Code, section
96.11501(c)(3);
96.12(iii) are established to provide oral health services to patients who are low income,
96.13uninsured, have special needs, and are underserved;
96.14(iv) have professional staff familiar with the cultural background of the clinic's
96.15patients;
96.16(v) charge for services on a sliding fee scale designed to provide assistance to
96.17low-income patients based on current poverty income guidelines and family size;
96.18(vi) do not restrict access or services because of a patient's financial limitations
96.19or public assistance status; and
96.20(vii) have free care available as needed;
96.21    (2) the level of services provided by the dentist or dental clinic to patients covered
96.22by medical assistance, general assistance medical care, or MinnesotaCare as their primary
96.23source of coverage federally qualified health centers, rural health clinics, and public
96.24health clinics; and
96.25    (3) whether the level of services provided by the dentist or dental clinic is critical
96.26to maintaining adequate levels of patient access within the service area county owned
96.27and operated hospital-based dental clinics;
96.28(4) a dental clinic or dental group owned and operated by a nonprofit corporation in
96.29accordance with chapter 317A with more than 10,000 patient encounters per year with
96.30patients who are uninsured or covered by medical assistance, general assistance medical
96.31care, or MinnesotaCare; and
96.32(5) a dental clinic associated with an oral health or dental education program
96.33operated by the University of Minnesota or an institution within the Minnesota State
96.34Colleges and Universities system.
96.35    In the absence of a critical access dental provider in a service area, (c) The
96.36commissioner may designate a dentist or dental clinic as a critical access dental provider
97.1if the dentist or dental clinic is willing to provide care to patients covered by medical
97.2assistance, general assistance medical care, or MinnesotaCare at a level which significantly
97.3increases access to dental care in the service area.
97.4EFFECTIVE DATE.This section is effective July 1, 2010.

97.5    Sec. 28. Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read:
97.6256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.
97.7(a) Effective for services provided on or after July 1, 2009, total payments for
97.8basic care services, shall be reduced by three percent, prior to third-party liability and
97.9spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical
97.10therapy services, occupational therapy services, and speech language pathology and
97.11related services as basic care services. The reduction in this paragraph shall apply to
97.12physical therapy services, occupational therapy services, and speech language pathology
97.13and related services provided on or after July 1, 2010.
97.14(b) Payments made to managed care plans and county-based purchasing plans shall
97.15be reduced for services provided on or after October 1, 2009, to reflect this the reduction
97.16effective July 1, 2009, and payments made to the plans shall be reduced effective October
97.171, 2010, to reflect the reduction effective July 1, 2010.
97.18(b) (c) This section does not apply to physician and professional services, inpatient
97.19hospital services, family planning services, mental health services, dental services,
97.20prescription drugs, medical transportation, federally qualified health centers, rural health
97.21centers, Indian health services, and Medicare cost-sharing.

97.22    Sec. 29. [256B.767] MEDICARE PAYMENT LIMIT.
97.23(a) Effective for services rendered on or after July 1, 2010, fee-for-service payment
97.24rates for physician and professional services under section 256B.76, subdivision 1, and
97.25basic care services subject to the rate reduction specified in section 256B.766, shall not
97.26exceed the Medicare payment rate for the applicable service, as adjusted for any changes
97.27in Medicare payment rates after July 1, 2010. The commissioner shall implement this
97.28section after any other rate adjustment that is effective July 1, 2010, and shall reduce rates
97.29under this section by first reducing or eliminating provider rate add-ons.
97.30(b) This section does not apply to services provided by advanced practice certified
97.31nurse midwives licensed under chapter 148 or traditional midwives licensed under chapter
97.32147D. Notwithstanding this exemption, medical assistance fee-for-service payment rates
97.33for advanced practice certified nurse midwives and licensed traditional midwives shall
98.1equal and shall not exceed the medical assistance payment rate to physicians for the
98.2applicable service.
98.3(c) This section does not apply to mental health services or physician services billed
98.4by a psychiatrist or an advanced practice registered nurse with a specialty in mental health.

98.5    Sec. 30. Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 3, as
98.6amended by Laws 2010, chapter 200, article 1, section 11, is amended to read:
98.7    Subd. 3. General assistance medical care; eligibility. (a) Beginning April 1, 2010,
98.8the general assistance medical care program shall be administered according to section
98.9256D.031 , unless otherwise stated, except for outpatient prescription drug coverage,
98.10which shall continue to be administered under this section and funded under section
98.11256D.031, subdivision 9 , beginning June 1, 2010.
98.12(b) Outpatient prescription drug coverage under general assistance medical care is
98.13limited to prescription drugs that:
98.14(1) are covered under the medical assistance program as described in section
98.15256B.0625, subdivisions 13 and 13d; and
98.16(2) are provided by manufacturers that have fully executed general assistance
98.17medical care rebate agreements with the commissioner and comply with the agreements.
98.18Outpatient prescription drug coverage under general assistance medical care must conform
98.19to coverage under the medical assistance program according to section 256B.0625,
98.20subdivisions 13
to 13g 13h.
98.21    (c) Outpatient prescription drug coverage does not include drugs administered in a
98.22clinic or other outpatient setting.
98.23(d) For the period beginning April 1, 2010, to May 31, 2010, general assistance
98.24medical care covers the services listed in subdivision 4.
98.25EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

98.26    Sec. 31. Minnesota Statutes 2008, section 256D.03, subdivision 3b, is amended to read:
98.27    Subd. 3b. Cooperation. (a) General assistance or general assistance medical care
98.28applicants and recipients must cooperate with the state and local agency to identify
98.29potentially liable third-party payors and assist the state in obtaining third-party payments.
98.30Cooperation includes identifying any third party who may be liable for care and services
98.31provided under this chapter to the applicant, recipient, or any other family member for
98.32whom application is made and providing relevant information to assist the state in pursuing
98.33a potentially liable third party. General assistance medical care applicants and recipients
98.34must cooperate by providing information about any group health plan in which they may
99.1be eligible to enroll. They must cooperate with the state and local agency in determining
99.2if the plan is cost-effective. For purposes of this subdivision, coverage provided by the
99.3Minnesota Comprehensive Health Association under chapter 62E shall not be considered
99.4group health plan coverage or cost-effective by the state and local agency. If the plan is
99.5determined cost-effective and the premium will be paid by the state or local agency or is
99.6available at no cost to the person, they must enroll or remain enrolled in the group health
99.7plan. Cost-effective insurance premiums approved for payment by the state agency and
99.8paid by the local agency are eligible for reimbursement according to subdivision 6.
99.9    (b) Effective for all premiums due on or after June 30, 1997, general assistance
99.10medical care does not cover premiums that a recipient is required to pay under a qualified
99.11or Medicare supplement plan issued by the Minnesota Comprehensive Health Association.
99.12General assistance medical care shall continue to cover premiums for recipients who are
99.13covered under a plan issued by the Minnesota Comprehensive Health Association on June
99.1430, 1997, for a period of six months following receipt of the notice of termination or
99.15until December 31, 1997, whichever is later.
99.16EFFECTIVE DATE.This section is effective July 1, 2010.

99.17    Sec. 32. Minnesota Statutes 2008, section 256D.031, subdivision 5, as added by Laws
99.182010, chapter 200, article 1, section 12, subdivision 5, is amended to read:
99.19    Subd. 5. Payment rates and contract modification; April 1, 2010, to May 31,
99.202010. (a) For the period April 1, 2010, to May 31, 2010, general assistance medical
99.21care shall be paid on a fee-for-service basis. Fee-for-service payment rates for services
99.22other than outpatient prescription drugs shall be set at 37 percent of the payment rate in
99.23effect on March 31, 2010.
99.24(b) Outpatient prescription drugs covered under section 256D.03, subdivision 3,
99.25provided on or after April 1, 2010, to May 31, 2010, shall be paid on a fee-for-service
99.26basis according to section 256B.0625, subdivisions 13 to 13g.
99.27(c) If section 256B.055, subdivision 15, and section 256B.056, subdivisions 3 and 4
99.28are implemented effective July 1, 2010:
99.29(1) general assistance medical care must be paid on a fee-for-service basis for the
99.30period June 1 to June 30, 2010;
99.31(2) fee-for-service payment rates for services other than outpatient prescription drugs
99.32must be set at 27 percent of the payment rate in effect on March 31, 2010; and
99.33(3) outpatient prescription drugs considered under section 256D.03, subdivision 3,
99.34must be paid on a fee-for-service basis according to section 256B.0625, subdivisions
99.3513 to 13g.
100.1EFFECTIVE DATE.This section is effective the day following final enactment.

100.2    Sec. 33. Minnesota Statutes 2009 Supplement, section 256L.03, subdivision 5, is
100.3amended to read:
100.4    Subd. 5. Co-payments and coinsurance. (a) Except as provided in paragraphs (b)
100.5and (c), the MinnesotaCare benefit plan shall include the following co-payments and
100.6coinsurance requirements for all enrollees:
100.7    (1) ten percent of the paid charges for inpatient hospital services for adult enrollees,
100.8subject to an annual inpatient out-of-pocket maximum of $1,000 per individual;
100.9    (2) $3 per prescription for adult enrollees;
100.10    (3) $25 for eyeglasses for adult enrollees;
100.11    (4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an
100.12episode of service which is required because of a recipient's symptoms, diagnosis, or
100.13established illness, and which is delivered in an ambulatory setting by a physician or
100.14physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
100.15audiologist, optician, or optometrist; and
100.16    (5) $6 for nonemergency visits to a hospital-based emergency room for services
100.17provided through December 31, 2010, and $3.50 effective January 1, 2011.
100.18    (b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of
100.19children under the age of 21.
100.20    (c) Paragraph (a) does not apply to pregnant women and children under the age of 21.
100.21    (d) Paragraph (a), clause (4), does not apply to mental health services.
100.22    (e) Adult enrollees with family gross income that exceeds 200 percent of the federal
100.23poverty guidelines or 215 percent of the federal poverty guidelines on or after July 1, 2009,
100.24and who are not pregnant shall be financially responsible for the coinsurance amount, if
100.25applicable, and amounts which exceed the $10,000 inpatient hospital benefit limit.
100.26    (f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan,
100.27or changes from one prepaid health plan to another during a calendar year, any charges
100.28submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket
100.29expenses incurred by the enrollee for inpatient services, that were submitted or incurred
100.30prior to enrollment, or prior to the change in health plans, shall be disregarded.
100.31(g) MinnesotaCare reimbursements to fee-for-service providers and payments to
100.32managed care plans or county-based purchasing plans shall not be increased as a result of
100.33the reduction of the co-payments in paragraph (a), clause (5), effective January 1, 2011.
100.34EFFECTIVE DATE.This section is effective July 1, 2010.

101.1    Sec. 34. Minnesota Statutes 2008, section 256L.11, subdivision 6, is amended to read:
101.2    Subd. 6. Enrollees 18 or older. Payment by the MinnesotaCare program for
101.3inpatient hospital services provided to MinnesotaCare enrollees eligible under section
101.4256L.04, subdivision 7 , or who qualify under section 256L.04, subdivisions 1 and 2,
101.5with family gross income that exceeds 175 percent of the federal poverty guidelines
101.6and who are not pregnant, who are 18 years old or older on the date of admission to the
101.7inpatient hospital must be in accordance with paragraphs (a) and (b). Payment for adults
101.8who are not pregnant and are eligible under section 256L.04, subdivisions 1 and 2, and
101.9whose incomes are equal to or less than 175 percent of the federal poverty guidelines,
101.10shall be as provided for under paragraph (c).
101.11(a) If the medical assistance rate minus any co-payment required under section
101.12256L.03, subdivision 4 , is less than or equal to the amount remaining in the enrollee's
101.13benefit limit under section 256L.03, subdivision 3, payment must be the medical
101.14assistance rate minus any co-payment required under section 256L.03, subdivision 4. The
101.15hospital must not seek payment from the enrollee in addition to the co-payment. The
101.16MinnesotaCare payment plus the co-payment must be treated as payment in full.
101.17(b) If the medical assistance rate minus any co-payment required under section
101.18256L.03, subdivision 4 , is greater than the amount remaining in the enrollee's benefit limit
101.19under section 256L.03, subdivision 3, payment must be the lesser of:
101.20(1) the amount remaining in the enrollee's benefit limit; or
101.21(2) charges submitted for the inpatient hospital services less any co-payment
101.22established under section 256L.03, subdivision 4.
101.23The hospital may seek payment from the enrollee for the amount by which usual and
101.24customary charges exceed the payment under this paragraph. If payment is reduced under
101.25section 256L.03, subdivision 3, paragraph (b), the hospital may not seek payment from the
101.26enrollee for the amount of the reduction.
101.27(c) For admissions occurring during the period of July 1, 1997, through June 30,
101.281998, for adults who are not pregnant and are eligible under section 256L.04, subdivisions
101.291 and 2
, and whose incomes are equal to or less than 175 percent of the federal poverty
101.30guidelines, the commissioner shall pay hospitals directly, up to the medical assistance
101.31payment rate, for inpatient hospital benefits in excess of the $10,000 annual inpatient
101.32benefit limit. For admissions occurring on or after July 1, 2011, for single adults and
101.33households without children who are eligible under section 256L.04, subdivision 7, the
101.34commissioner shall pay hospitals directly, up to the medical assistance payment rate, for
101.35inpatient hospital benefits up to the $10,000 annual inpatient benefit limit, minus any
101.36co-payment required under section 256L.03, subdivision 5.

102.1    Sec. 35. Minnesota Statutes 2008, section 256L.07, is amended by adding a subdivision
102.2to read:
102.3    Subd. 9. Firefighters; volunteer ambulance attendants. (a) For purposes of this
102.4subdivision, "qualified individual" means:
102.5(1) a volunteer firefighter with a department as defined in section 299N.01,
102.6subdivision 2, who has passed the probationary period; and
102.7(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15.
102.8(b) A qualified individual who documents to the satisfaction of the commissioner
102.9status as a qualified individual by completing and submitting a one-page form developed
102.10by the commissioner is eligible for MinnesotaCare without meeting other eligibility
102.11requirements of this chapter, but must pay premiums equal to the average expected
102.12capitation rate for adults with no children paid under section 256L.12. Individuals eligible
102.13under this subdivision shall receive coverage for the benefit set provided to adults with no
102.14children.
102.15EFFECTIVE DATE.This section is effective April 1, 2011.

102.16    Sec. 36. Minnesota Statutes 2008, section 256L.12, subdivision 5, is amended to read:
102.17    Subd. 5. Eligibility for other state programs. MinnesotaCare enrollees who
102.18become eligible for medical assistance or general assistance medical care will remain in
102.19the same managed care plan if the managed care plan has a contract for that population.
102.20Effective January 1, 1998, MinnesotaCare enrollees who were formerly eligible for
102.21general assistance medical care pursuant to section 256D.03, subdivision 3, within six
102.22months of MinnesotaCare enrollment and were enrolled in a prepaid health plan pursuant
102.23to section 256D.03, subdivision 4, paragraph (c), must remain in the same managed care
102.24plan if the managed care plan has a contract for that population. Managed care plans must
102.25participate in the MinnesotaCare and general assistance medical care programs program
102.26under a contract with the Department of Human Services in service areas where they
102.27participate in the medical assistance program.
102.28EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

102.29    Sec. 37. Minnesota Statutes 2008, section 256L.12, subdivision 9, is amended to read:
102.30    Subd. 9. Rate setting; performance withholds. (a) Rates will be prospective,
102.31per capita, where possible. The commissioner may allow health plans to arrange for
102.32inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with
102.33an independent actuary to determine appropriate rates.
103.1    (b) For services rendered on or after January 1, 2003, to December 31, 2003, the
103.2commissioner shall withhold .5 percent of managed care plan payments under this section
103.3pending completion of performance targets. The withheld funds must be returned no
103.4sooner than July 1 and no later than July 31 of the following year if performance targets
103.5in the contract are achieved. A managed care plan may include as admitted assets under
103.6section 62D.044 any amount withheld under this paragraph that is reasonably expected
103.7to be returned.
103.8    (c) For services rendered on or after January 1, 2004, the commissioner shall
103.9withhold five percent of managed care plan payments and county-based purchasing
103.10plan payments under this section pending completion of performance targets. Each
103.11performance target must be quantifiable, objective, measurable, and reasonably attainable,
103.12except in the case of a performance target based on a federal or state law or rule. Criteria
103.13for assessment of each performance target must be outlined in writing prior to the
103.14contract effective date. The managed care plan must demonstrate, to the commissioner's
103.15satisfaction, that the data submitted regarding attainment of the performance target is
103.16accurate. The commissioner shall periodically change the administrative measures used
103.17as performance targets in order to improve plan performance across a broader range of
103.18administrative services. The performance targets must include measurement of plan
103.19efforts to contain spending on health care services and administrative activities. The
103.20commissioner may adopt plan-specific performance targets that take into account factors
103.21affecting only one plan, such as characteristics of the plan's enrollee population. The
103.22withheld funds must be returned no sooner than July 1 and no later than July 31 of the
103.23following calendar year if performance targets in the contract are achieved. A managed
103.24care plan or a county-based purchasing plan under section 256B.692 may include as
103.25admitted assets under section 62D.044 any amount withheld under this paragraph that is
103.26reasonably expected to be returned.
103.27(c) For services rendered on or after January 1, 2011, the commissioner shall
103.28withhold an additional three percent of managed care plan or county-based purchasing
103.29plan payments under this section. The withheld funds must be returned no sooner than
103.30July 1 and no later than July 31 of the following calendar year. The return of the withhold
103.31under this paragraph is not subject to the requirements of paragraph (b).
103.32(d) Effective for services rendered on or after January 1, 2011, the commissioner
103.33shall include as part of the performance targets described in paragraph (b) a reduction in
103.34the plan's emergency room utilization rate for state health care program enrollees by a
103.35measurable rate of five percent from the plan's utilization rate for the previous calendar
103.36year.
104.1The withheld funds must be returned no sooner than July 1 and no later than July 31
104.2of the following calendar year if the managed care plan demonstrates to the satisfaction of
104.3the commissioner that a reduction in the utilization rate was achieved.
104.4The withhold described in this paragraph shall continue for each consecutive
104.5contract period until the plan's emergency room utilization rate for state health care
104.6program enrollees is reduced by 25 percent of the plan's emergency room utilization rate
104.7for state health care program enrollees for calendar year 2009. Hospitals shall cooperate
104.8with the health plans in meeting this performance target and shall accept payment
104.9withholds that may be returned to the hospitals if the performance target is achieved. The
104.10commissioner shall structure the withhold so that the commissioner returns a portion of
104.11the withheld funds in amounts commensurate with achieved reductions in utilization less
104.12than the targeted amount. The withhold described in this paragraph does not apply to
104.13county-based purchasing plans.
104.14(e) A managed care plan or a county-based purchasing plan under section 256B.692
104.15may include as admitted assets under section 62D.044 any amount withheld under this
104.16section that is reasonably expected to be returned.
104.17EFFECTIVE DATE.This section is effective July 1, 2010.

104.18    Sec. 38. Laws 2009, chapter 79, article 5, section 75, subdivision 1, is amended to read:
104.19    Subdivision 1. Medical assistance coverage. The commissioner of human services
104.20shall establish a demonstration project to provide additional medical assistance coverage
104.21for a maximum of 200 American Indian children in Minneapolis, St. Paul, and Duluth
104.22who are burdened by health disparities associated with the cumulative health impact
104.23of toxic environmental exposures. Under this demonstration project, the additional
104.24medical assistance coverage for this population must include, but is not limited to, home
104.25environmental assessments for triggers of asthma, and in-home asthma education on the
104.26proper medical management of asthma by a certified asthma educator or public health
104.27nurse with asthma management training, and must be limited to two visits per child. The
104.28home visit payment rates must be based on a rate commensurate with a first-time visit rate
104.29and follow-up visit rate. Coverage also includes the following durable medical equipment:
104.30high efficiency particulate air (HEPA) cleaners, HEPA vacuum cleaners, allergy bed and
104.31pillow encasements, high filtration filters for forced air gas furnaces, and dehumidifiers
104.32with medical tubing to connect the appliance to a floor drain, if the listed item is medically
104.33necessary useful to reduce asthma symptoms. Provision of these items of durable medical
104.34equipment must be preceded by a home environmental assessment for triggers of asthma
105.1and in-home asthma education on the proper medical management of asthma by a Certified
105.2Asthma Educator or public health nurse with asthma management training.

105.3    Sec. 39. Laws 2009, chapter 79, article 5, section 78, subdivision 5, is amended to read:
105.4    Subd. 5. Expiration. This section, with the exception of subdivision 4, expires
105.5December 31, 2010 August 31, 2011. Subdivision 4 expires February 28, 2012.

105.6    Sec. 40. Laws 2010, chapter 200, article 1, section 12, subdivision 6, is amended to
105.7read:
105.8    Subd. 6. Coordinated care delivery systems. (a) Effective June 1, 2010, the
105.9commissioner shall contract with hospitals or groups of hospitals that qualify under
105.10paragraph (b) and agree to deliver services according to this subdivision. Contracting
105.11hospitals shall develop and implement a coordinated care delivery system to provide
105.12health care services to individuals who are eligible for general assistance medical care
105.13under this section and who either choose to receive services through the coordinated
105.14care delivery system or who are enrolled by the commissioner under paragraph (c). The
105.15health care services provided by the system must include: (1) the services described in
105.16subdivision 4 with the exception of outpatient prescription drug coverage but shall include
105.17drugs administered in a clinic or other outpatient setting; or (2) a set of comprehensive
105.18and medically necessary health services that the recipients might reasonably require to be
105.19maintained in good health and that has been approved by the commissioner, including at a
105.20minimum, but not limited to, emergency care, medical transportation services, inpatient
105.21hospital and physician care, outpatient health services, preventive health services, mental
105.22health services, and prescription drugs administered in a clinic or other outpatient setting.
105.23Outpatient prescription drug coverage is covered on a fee-for-service basis in accordance
105.24with section 256D.03, subdivision 3, and funded under subdivision 9. A hospital
105.25establishing a coordinated care delivery system under this subdivision must ensure that the
105.26requirements of this subdivision are met.
105.27(b) A hospital or group of hospitals may contract with the commissioner to develop
105.28and implement a coordinated care delivery system as follows:
105.29(1) effective June 1, 2010, a hospital qualifies under this subdivision if: (i) during
105.30calendar year 2008, it received fee-for-service payments for services to general assistance
105.31medical care recipients (A) equal to or greater than $1,500,000, or (B) equal to or greater
105.32than 1.3 percent of net patient revenue; or (ii) a contract with the hospital is necessary to
105.33provide geographic access or to ensure that at least 80 percent of enrollees have access to
105.34a coordinated care delivery system; and
106.1(2) effective December 1, 2010, a Minnesota hospital not qualified under clause
106.2(1) may contract with the commissioner under this subdivision if it agrees to satisfy the
106.3requirements of this subdivision.
106.4Participation by hospitals shall become effective quarterly on June 1, September 1,
106.5December 1, or March 1. Hospital participation is effective for a period of 12 months and
106.6may be renewed for successive 12-month periods.
106.7(c) Applicants and recipients may enroll in any available coordinated care delivery
106.8system statewide. If more than one coordinated care delivery system is available, the
106.9applicant or recipient shall be allowed to choose among the systems. The commissioner
106.10may assign an applicant or recipient to a coordinated care delivery system if no choice
106.11is made by the applicant or recipient. The commissioner shall consider a recipient's zip
106.12code, city of residence, county of residence, or distance from a participating coordinated
106.13care delivery system when determining default assignment. An applicant or recipient
106.14may decline enrollment in a coordinated care delivery system. Upon enrollment into a
106.15coordinated care delivery system, the recipient must agree to receive all nonemergency
106.16services through the coordinated care delivery system. Enrollment in a coordinated care
106.17delivery system is for six months and may be renewed for additional six-month periods,
106.18except that initial enrollment is for six months or until the end of a recipient's period
106.19of general assistance medical care eligibility, whichever occurs first. A recipient who
106.20continues to meet the eligibility requirements of this section is not eligible to enroll in
106.21MinnesotaCare during a period of enrollment in a coordinated care delivery system.
106.22From June 1, 2010, to November 30, 2010 February 28, 2011, applicants and recipients
106.23not enrolled in a coordinated care delivery system may seek services from a hospital
106.24eligible for reimbursement under the temporary uncompensated care pool established
106.25under subdivision 8. After November 30, 2010 February 28, 2011, services are available
106.26only through a coordinated care delivery system.
106.27(d) The hospital may contract and coordinate with providers and clinics for the
106.28delivery of services and shall contract with essential community providers as defined
106.29under section 62Q.19, subdivision 1, paragraph (a), clauses (1) and (2), to the extent
106.30practicable. If a provider or clinic contracts with a hospital to provide services through the
106.31coordinated care delivery system, the provider may not refuse to provide services to any
106.32recipient enrolled in the system, and payment for services shall be negotiated with the
106.33hospital and paid by the hospital from the system's allocation under subdivision 7.
106.34(e) A coordinated care delivery system must:
107.1(1) provide the covered services required under paragraph (a) to recipients enrolled
107.2in the coordinated care delivery system, and comply with the requirements of subdivision
107.34, paragraphs (b) to (g);
107.4(2) establish a process to monitor enrollment and ensure the quality of care provided;
107.5and
107.6(3) in cooperation with counties, coordinate the delivery of health care services with
107.7existing homeless prevention, supportive housing, and rent subsidy programs and funding
107.8administered by the Minnesota Housing Finance Agency under chapter 462A; and
107.9(4) adopt innovative and cost-effective methods of care delivery and coordination,
107.10which may include the use of allied health professionals, telemedicine, patient educators,
107.11care coordinators, and community health workers.
107.12(f) The hospital may require a recipient to designate a primary care provider or
107.13a primary care clinic. The hospital may limit the delivery of services to a network of
107.14providers who have contracted with the hospital to deliver services in accordance with
107.15this subdivision, and require a recipient to seek services only within this network. The
107.16hospital may also require a referral to a provider before the service is eligible for payment.
107.17A coordinated care delivery system is not required to provide payment to a provider who
107.18is not employed by or under contract with the system for services provided to a recipient
107.19enrolled in the system, except in cases of an emergency. For purposes of this section,
107.20emergency services are defined in accordance with Code of Federal Regulations, title
107.2142, section 438.114 (a).
107.22(g) A recipient enrolled in a coordinated care delivery system has the right to appeal
107.23to the commissioner according to section 256.045.
107.24(h) The state shall not be liable for the payment of any cost or obligation incurred
107.25by the coordinated care delivery system.
107.26(i) The hospital must provide the commissioner with data necessary for assessing
107.27enrollment, quality of care, cost, and utilization of services. Each hospital must provide,
107.28on a quarterly basis on a form prescribed by the commissioner for each recipient served by
107.29the coordinated care delivery system, the services provided, the cost of services provided,
107.30and the actual payment amount for the services provided and any other information the
107.31commissioner deems necessary to claim federal Medicaid match. The commissioner must
107.32provide this data to the legislature on a quarterly basis.
107.33(j) Effective June 1, 2010, the provisions of section 256.9695, subdivision 2,
107.34paragraph (b), do not apply to general assistance medical care provided under this section.
107.35(k) Notwithstanding any other provision in this section to the contrary, for
107.36participation beginning September 1, 2010, the commissioner shall offer the same contract
108.1terms related to an enrollment threshold formula and financial liability protections to a
108.2hospital or group of hospitals qualified under this subdivision to develop and implement
108.3a coordinated care delivery system as those contained in the coordinated care delivery
108.4system contracts effective June 1, 2010.
108.5(l) If section 256B.055, subdivision 15, and section 256B.056, subdivisions 3 and 4
108.6are implemented effective July 1, 2010, this subdivision must not be implemented.

108.7    Sec. 41. Laws 2010, chapter 200, article 1, section 12, subdivision 7, is amended to
108.8read:
108.9    Subd. 7. Payments; rate setting for the hospital coordinated care delivery
108.10system. (a) Effective for general assistance medical care services, with the exception
108.11of outpatient prescription drug coverage, provided on or after June 1, 2010, through a
108.12coordinated care delivery system, the commissioner shall allocate the annual appropriation
108.13for the coordinated care delivery system to hospitals participating under subdivision
108.146 in quarterly payments, beginning on the first scheduled warrant on or after June 1,
108.152010. The payment shall be allocated among all hospitals qualified to participate on the
108.16allocation date. Each hospital or group of hospitals shall receive a pro rata share of the
108.17allocation based on the hospital's or group of hospitals' calendar year 2008 payments for
108.18general assistance medical care services, provided that, for the purposes of this allocation,
108.19payments to Hennepin County Medical Center, Regions Hospital, Saint Mary's Medical
108.20Center, and University of Minnesota Medical Center, Fairview, shall be weighted at 110
108.21percent of the actual amount. as follows:
108.22(1) each hospital or group of hospitals shall be allocated an initial amount based on
108.23the hospital's or group of hospitals' pro rata share of calendar year 2008 payments for
108.24general assistance medical care services to all participating hospitals;
108.25(2) the initial allocations to Hennepin County Medical Center; Regions Hospital;
108.26Saint Mary's Medical Center; and the University of Minnesota Medical Center, Fairview,
108.27shall be increased to 110 percent of the value determined in clause (1);
108.28(3) the initial allocation to hospitals not listed in clause (2) shall be reduced a pro rata
108.29amount in order to keep the allocations within the limit of available appropriations; and
108.30(4) the amounts determined under clauses (1) to (3) shall be allocated to participating
108.31hospitals.
108.32The commissioner may prospectively reallocate payments to participating hospitals on
108.33a biannual basis to ensure that final allocations reflect actual coordinated care delivery
108.34system enrollment. The 2008 base year shall be updated by one calendar year each June 1,
108.35beginning June 1, 2011.
109.1(b) Beginning June 1, 2010, and every quarter beginning in June thereafter, the
109.2commissioner shall make one-third of the quarterly payment in June and the remaining
109.3two-thirds of the quarterly payment in July to each participating hospital or group of
109.4hospitals.
109.5(c) In order to be reimbursed under this section, nonhospital providers of health
109.6care services shall contract with one or more hospitals described in paragraph (a) to
109.7provide services to general assistance medical care recipients through the coordinated care
109.8delivery system established by the hospital. The hospital shall reimburse bills submitted
109.9by nonhospital providers participating under this paragraph at a rate negotiated between
109.10the hospital and the nonhospital provider.
109.11(c) (d) The commissioner shall apply for federal matching funds under section
109.12256B.199 , paragraphs (a) to (d), for expenditures under this subdivision.
109.13(d) (e) Outpatient prescription drug coverage is provided in accordance with section
109.14256D.03, subdivision 3 , and paid on a fee-for-service basis under subdivision 9.
109.15EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

109.16    Sec. 42. Laws 2010, chapter 200, article 1, section 12, subdivision 8, is amended to
109.17read:
109.18    Subd. 8. Temporary uncompensated care pool. (a) The commissioner shall
109.19establish a temporary uncompensated care pool, effective June 1, 2010. Payments from
109.20the pool must be distributed, within the limits of the available appropriation, to hospitals
109.21that are not part of a coordinated care delivery system established under subdivision 6.
109.22(b) Hospitals seeking reimbursement from this pool must submit an invoice to
109.23the commissioner in a form prescribed by the commissioner for payment for services
109.24provided to an applicant or recipient not enrolled in a coordinated care delivery system. A
109.25payment amount, as calculated under current law, must be determined, but not paid, for
109.26each admission of or service provided to a general assistance medical care recipient on or
109.27after June 1, 2010, to November 30, 2010 February 28, 2011.
109.28(c) The aggregated payment amounts for each hospital must be calculated as a
109.29percentage of the total calculated amount for all hospitals.
109.30(d) Distributions from the uncompensated care pool for each hospital must be
109.31determined by multiplying the factor in paragraph (c) by the amount of money in the
109.32uncompensated care pool that is available for the six-month period.
109.33(e) The commissioner shall apply for federal matching funds under section
109.34256B.199 , paragraphs (a) to (d), for expenditures under this subdivision.
109.35(f) Outpatient prescription drugs are not eligible for payment under this subdivision.

110.1    Sec. 43. Laws 2010, chapter 200, article 1, section 16, is amended by adding an
110.2effective date to read:
110.3EFFECTIVE DATE.This section is effective June 1, 2010.

110.4    Sec. 44. Laws 2010, chapter 200, article 1, section 21, is amended to read:
110.5    Sec. 21. REPEALER.
110.6(a) Minnesota Statutes 2008, sections 256.742; 256.979, subdivision 8; and 256D.03,
110.7subdivision 9, are repealed effective April 1, 2010.
110.8(b) Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, is repealed
110.9effective April June 1, 2010.
110.10(c) Minnesota Statutes 2008, section 256B.195, subdivisions 4 and 5, are repealed
110.11effective for federal fiscal year 2010.
110.12(d) Minnesota Statutes 2009 Supplement, section 256B.195, subdivisions 1, 2, and
110.133, are repealed effective for federal fiscal year 2010.
110.14(e) Minnesota Statutes 2008, sections 256L.07, subdivision 6; 256L.15, subdivision
110.154; and 256L.17, subdivision 7, are repealed January 1, 2011 July 1, 2010.
110.16EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

110.17    Sec. 45. PREPAID HEALTH PLAN RATES.
110.18In negotiating the prepaid health plan contract rates for services rendered on or
110.19after January 1, 2011, the commissioner of human services shall take into consideration
110.20and the rates shall reflect the anticipated savings in the medical assistance program due
110.21to extending medical assistance coverage to services provided in licensed birth centers,
110.22the anticipated use of these services within the medical assistance population, and the
110.23reduced medical assistance costs associated with the use of birth centers for normal,
110.24low-risk deliveries.
110.25EFFECTIVE DATE.This section is effective July 1, 2010.

110.26    Sec. 46. STATE PLAN AMENDMENT; FEDERAL APPROVAL.
110.27(a) The commissioner of human services shall submit a Medicaid state plan
110.28amendment to receive federal fund participation for adults without children whose income
110.29is equal to or less than 75 percent of federal poverty guidelines in accordance with the
110.30Patient Protection and Affordable Care Act, Public Law 111-148, or the Health Care and
110.31Education Reconciliation Act of 2010, Public Law 111-152. The effective date of the
110.32state plan amendment shall be July 1, 2010.
111.1(b) The commissioner of human services shall submit a federal waiver or an
111.2amendment to the MinnesotaCare health care reform waiver to include in the waiver
111.3single adults and households without children.
111.4EFFECTIVE DATE.This section is effective the day following final enactment.

111.5    Sec. 47. REPEALER.
111.6(a) Minnesota Statutes 2008, section 256D.03, subdivisions 3, 3a, 5, 6, 7, and 8, are
111.7repealed contingently upon implementation of Minnesota Statutes, sections 256B.055,
111.8subdivision 15, and 256B.056, subdivisions 3 and 4.
111.9(b) Laws 2010, chapter 200, article 1, sections 12, subdivisions 1, 2, 3, and 5; 18;
111.10and 19, are repealed contingently upon implementation of Minnesota Statutes, sections
111.11256B.055, subdivision 15, and 256B.056, subdivisions 3 and 4.
111.12(c) Laws 2010, chapter 200, article 1, section 12, subdivisions 4, 6, 7, 8, 9, and 10,
111.13are repealed contingently upon implementation of Minnesota Statutes, sections 256B.055,
111.14subdivision 15, and 256B.056, subdivisions 3 and 4.
111.15EFFECTIVE DATE.This section is effective the day following final enactment.

111.16    Sec. 48. EFFECTIVE DATE OF EARLY ENROLLMENT IN MEDICAL
111.17ASSISTANCE.
111.18(a) In order for sections 5 to 7 and 20 to be effective, the governor in office at the
111.19time of enactment of this section must direct, by executive order issued at any time
111.20during that governor's term, the commissioner of human services to implement them,
111.21notwithstanding any other effective dates for those sections.
111.22(b) If the governor in office at the time of enactment of this section does not issue an
111.23executive order under paragraph (a) directing implementation, the succeeding governor,
111.24from the start of that governor's term until January 15, 2011, may by executive order direct
111.25the commissioner of human services to implement sections 5 to 7 and 20.
111.26(c) If a governor does not issue an executive order under paragraph (a) or (b),
111.27sections 5 to 7 and 20 are not effective and do not have the force of law.
111.28(d) In making the determinations under this section whether to issue an executive
111.29order under paragraph (a) or (b), the governor shall consider the cost of implementation
111.30and the availability of funds in the state treasury, the potential for increased federal
111.31funding, the effect of implementation on access to health care services in the state, and
111.32alternative approaches that may be available to pursue policy goals.
112.1(e) If this section is determined by a court of competent jurisdiction to be
112.2unconstitutional, sections 5 to 7 and 20 are not effective and do not have the force of law.
112.3EFFECTIVE DATE.This section is effective the day following final enactment.

112.4ARTICLE 17
112.5CONTINUING CARE

112.6    Section 1. Minnesota Statutes 2008, section 144D.03, subdivision 2, is amended to
112.7read:
112.8    Subd. 2. Registration information. The establishment shall provide the following
112.9information to the commissioner in order to be registered:
112.10(1) the business name, street address, and mailing address of the establishment;
112.11(2) the name and mailing address of the owner or owners of the establishment and, if
112.12the owner or owners are not natural persons, identification of the type of business entity
112.13of the owner or owners, and the names and addresses of the officers and members of the
112.14governing body, or comparable persons for partnerships, limited liability corporations, or
112.15other types of business organizations of the owner or owners;
112.16(3) the name and mailing address of the managing agent, whether through
112.17management agreement or lease agreement, of the establishment, if different from the
112.18owner or owners, and the name of the on-site manager, if any;
112.19(4) verification that the establishment has entered into a housing with services
112.20contract, as required in section 144D.04, with each resident or resident's representative;
112.21(5) verification that the establishment is complying with the requirements of section
112.22325F.72 , if applicable;
112.23(6) the name and address of at least one natural person who shall be responsible
112.24for dealing with the commissioner on all matters provided for in sections 144D.01 to
112.25144D.06, and on whom personal service of all notices and orders shall be made, and who
112.26shall be authorized to accept service on behalf of the owner or owners and the managing
112.27agent, if any; and
112.28(7) the signature of the authorized representative of the owner or owners or, if
112.29the owner or owners are not natural persons, signatures of at least two authorized
112.30representatives of each owner, one of which shall be an officer of the owner; and
112.31(8) whether services are included in the base rate to be paid by the resident.
112.32Personal service on the person identified under clause (6) by the owner or owners in
112.33the registration shall be considered service on the owner or owners, and it shall not be a
112.34defense to any action that personal service was not made on each individual or entity. The
113.1designation of one or more individuals under this subdivision shall not affect the legal
113.2responsibility of the owner or owners under sections 144D.01 to 144D.06.

113.3    Sec. 2. Minnesota Statutes 2008, section 144D.04, subdivision 2, is amended to read:
113.4    Subd. 2. Contents of contract. A housing with services contract, which need not be
113.5entitled as such to comply with this section, shall include at least the following elements
113.6in itself or through supporting documents or attachments:
113.7(1) the name, street address, and mailing address of the establishment;
113.8(2) the name and mailing address of the owner or owners of the establishment and, if
113.9the owner or owners is not a natural person, identification of the type of business entity
113.10of the owner or owners;
113.11(3) the name and mailing address of the managing agent, through management
113.12agreement or lease agreement, of the establishment, if different from the owner or owners;
113.13(4) the name and address of at least one natural person who is authorized to accept
113.14service of process on behalf of the owner or owners and managing agent;
113.15(5) a statement describing the registration and licensure status of the establishment
113.16and any provider providing health-related or supportive services under an arrangement
113.17with the establishment;
113.18(6) the term of the contract;
113.19(7) a description of the services to be provided to the resident in the base rate to be
113.20paid by resident, including a delineation of the portion of the base rate that constitutes rent
113.21and a delineation of charges for each service included in the base rate;
113.22(8) a description of any additional services, including home care services, available
113.23for an additional fee from the establishment directly or through arrangements with the
113.24establishment, and a schedule of fees charged for these services;
113.25(9) a description of the process through which the contract may be modified,
113.26amended, or terminated;
113.27(10) a description of the establishment's complaint resolution process available
113.28to residents including the toll-free complaint line for the Office of Ombudsman for
113.29Long-Term Care;
113.30(11) the resident's designated representative, if any;
113.31(12) the establishment's referral procedures if the contract is terminated;
113.32(13) requirements of residency used by the establishment to determine who may
113.33reside or continue to reside in the housing with services establishment;
113.34(14) billing and payment procedures and requirements;
114.1(15) a statement regarding the ability of residents to receive services from service
114.2providers with whom the establishment does not have an arrangement;
114.3(16) a statement regarding the availability of public funds for payment for residence
114.4or services in the establishment; and
114.5(17) a statement regarding the availability of and contact information for
114.6long-term care consultation services under section 256B.0911 in the county in which the
114.7establishment is located.

114.8    Sec. 3. [144D.08] UNIFORM CONSUMER INFORMATION GUIDE.
114.9All housing with services establishments shall make available to all prospective
114.10and current residents information consistent with the uniform format and the required
114.11components adopted by the commissioner under section 144G.06.

114.12    Sec. 4. [144D.09] TERMINATION OF LEASE.
114.13The housing with services establishment shall include with notice of termination
114.14of lease information about how to contact the ombudsman for long-term care, including
114.15the address and phone number along with a statement of how to request problem-solving
114.16assistance.

114.17    Sec. 5. Minnesota Statutes 2008, section 144G.06, is amended to read:
114.18144G.06 UNIFORM CONSUMER INFORMATION GUIDE.
114.19(a) The commissioner of health shall establish an advisory committee consisting
114.20of representatives of consumers, providers, county and state officials, and other
114.21groups the commissioner considers appropriate. The advisory committee shall present
114.22recommendations to the commissioner on:
114.23(1) a format for a guide to be used by individual providers of assisted living, as
114.24defined in section 144G.01, that includes information about services offered by that
114.25provider, which services may be covered by Medicare, service costs, and other relevant
114.26provider-specific information, as well as a statement of philosophy and values associated
114.27with assisted living, presented in uniform categories that facilitate comparison with guides
114.28issued by other providers; and
114.29(2) requirements for informing assisted living clients, as defined in section 144G.01,
114.30of their applicable legal rights.
114.31(b) The commissioner, after reviewing the recommendations of the advisory
114.32committee, shall adopt a uniform format for the guide to be used by individual providers,
114.33and the required components of materials to be used by providers to inform assisted
115.1living clients of their legal rights, and shall make the uniform format and the required
115.2components available to assisted living providers.

115.3    Sec. 6. Minnesota Statutes 2009 Supplement, section 252.27, subdivision 2a, is
115.4amended to read:
115.5    Subd. 2a. Contribution amount. (a) The natural or adoptive parents of a minor
115.6child, including a child determined eligible for medical assistance without consideration of
115.7parental income, must contribute to the cost of services used by making monthly payments
115.8on a sliding scale based on income, unless the child is married or has been married,
115.9parental rights have been terminated, or the child's adoption is subsidized according to
115.10section 259.67 or through title IV-E of the Social Security Act. The parental contribution
115.11is a partial or full payment for medical services provided for diagnostic, therapeutic,
115.12curing, treating, mitigating, rehabilitation, maintenance, and personal care services as
115.13defined in United States Code, title 26, section 213, needed by the child with a chronic
115.14illness or disability.
115.15    (b) For households with adjusted gross income equal to or greater than 100 percent
115.16of federal poverty guidelines, the parental contribution shall be computed by applying the
115.17following schedule of rates to the adjusted gross income of the natural or adoptive parents:
115.18    (1) if the adjusted gross income is equal to or greater than 100 percent of federal
115.19poverty guidelines and less than 175 percent of federal poverty guidelines, the parental
115.20contribution is $4 per month;
115.21    (2) if the adjusted gross income is equal to or greater than 175 percent of federal
115.22poverty guidelines and less than or equal to 545 percent of federal poverty guidelines,
115.23the parental contribution shall be determined using a sliding fee scale established by the
115.24commissioner of human services which begins at one percent of adjusted gross income
115.25at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted
115.26gross income for those with adjusted gross income up to 545 percent of federal poverty
115.27guidelines;
115.28    (3) if the adjusted gross income is greater than 545 percent of federal poverty
115.29guidelines and less than 675 percent of federal poverty guidelines, the parental
115.30contribution shall be 7.5 percent of adjusted gross income;
115.31    (4) if the adjusted gross income is equal to or greater than 675 percent of federal
115.32poverty guidelines and less than 975 percent of federal poverty guidelines, the parental
115.33contribution shall be determined using a sliding fee scale established by the commissioner
115.34of human services which begins at 7.5 percent of adjusted gross income at 675 percent of
116.1federal poverty guidelines and increases to ten percent of adjusted gross income for those
116.2with adjusted gross income up to 975 percent of federal poverty guidelines; and
116.3    (5) if the adjusted gross income is equal to or greater than 975 percent of federal
116.4poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross
116.5income.
116.6    If the child lives with the parent, the annual adjusted gross income is reduced by
116.7$2,400 prior to calculating the parental contribution. If the child resides in an institution
116.8specified in section 256B.35, the parent is responsible for the personal needs allowance
116.9specified under that section in addition to the parental contribution determined under this
116.10section. The parental contribution is reduced by any amount required to be paid directly to
116.11the child pursuant to a court order, but only if actually paid.
116.12    (c) The household size to be used in determining the amount of contribution under
116.13paragraph (b) includes natural and adoptive parents and their dependents, including the
116.14child receiving services. Adjustments in the contribution amount due to annual changes
116.15in the federal poverty guidelines shall be implemented on the first day of July following
116.16publication of the changes.
116.17    (d) For purposes of paragraph (b), "income" means the adjusted gross income of the
116.18natural or adoptive parents determined according to the previous year's federal tax form,
116.19except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds
116.20have been used to purchase a home shall not be counted as income.
116.21    (e) The contribution shall be explained in writing to the parents at the time eligibility
116.22for services is being determined. The contribution shall be made on a monthly basis
116.23effective with the first month in which the child receives services. Annually upon
116.24redetermination or at termination of eligibility, if the contribution exceeded the cost of
116.25services provided, the local agency or the state shall reimburse that excess amount to
116.26the parents, either by direct reimbursement if the parent is no longer required to pay a
116.27contribution, or by a reduction in or waiver of parental fees until the excess amount is
116.28exhausted. All reimbursements must include a notice that the amount reimbursed may be
116.29taxable income if the parent paid for the parent's fees through an employer's health care
116.30flexible spending account under the Internal Revenue Code, section 125, and that the
116.31parent is responsible for paying the taxes owed on the amount reimbursed.
116.32    (f) The monthly contribution amount must be reviewed at least every 12 months;
116.33when there is a change in household size; and when there is a loss of or gain in income
116.34from one month to another in excess of ten percent. The local agency shall mail a written
116.35notice 30 days in advance of the effective date of a change in the contribution amount.
117.1A decrease in the contribution amount is effective in the month that the parent verifies a
117.2reduction in income or change in household size.
117.3    (g) Parents of a minor child who do not live with each other shall each pay the
117.4contribution required under paragraph (a). An amount equal to the annual court-ordered
117.5child support payment actually paid on behalf of the child receiving services shall be
117.6deducted from the adjusted gross income of the parent making the payment prior to
117.7calculating the parental contribution under paragraph (b).
117.8    (h) The contribution under paragraph (b) shall be increased by an additional five
117.9percent if the local agency determines that insurance coverage is available but not
117.10obtained for the child. For purposes of this section, "available" means the insurance is a
117.11benefit of employment for a family member at an annual cost of no more than five percent
117.12of the family's annual income. For purposes of this section, "insurance" means health
117.13and accident insurance coverage, enrollment in a nonprofit health service plan, health
117.14maintenance organization, self-insured plan, or preferred provider organization.
117.15    Parents who have more than one child receiving services shall not be required
117.16to pay more than the amount for the child with the highest expenditures. There shall
117.17be no resource contribution from the parents. The parent shall not be required to pay
117.18a contribution in excess of the cost of the services provided to the child, not counting
117.19payments made to school districts for education-related services. Notice of an increase in
117.20fee payment must be given at least 30 days before the increased fee is due.
117.21    (i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if,
117.22in the 12 months prior to July 1:
117.23    (1) the parent applied for insurance for the child;
117.24    (2) the insurer denied insurance;
117.25    (3) the parents submitted a complaint or appeal, in writing to the insurer, submitted
117.26a complaint or appeal, in writing, to the commissioner of health or the commissioner of
117.27commerce, or litigated the complaint or appeal; and
117.28    (4) as a result of the dispute, the insurer reversed its decision and granted insurance.
117.29    For purposes of this section, "insurance" has the meaning given in paragraph (h).
117.30    A parent who has requested a reduction in the contribution amount under this
117.31paragraph shall submit proof in the form and manner prescribed by the commissioner or
117.32county agency, including, but not limited to, the insurer's denial of insurance, the written
117.33letter or complaint of the parents, court documents, and the written response of the insurer
117.34approving insurance. The determinations of the commissioner or county agency under this
117.35paragraph are not rules subject to chapter 14.
118.1(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30,
118.22013, the parental contribution shall be computed by applying the following contribution
118.3schedule to the adjusted gross income of the natural or adoptive parents:
118.4(1) if the adjusted gross income is equal to or greater than 100 percent of federal
118.5poverty guidelines and less than 175 percent of federal poverty guidelines, the parental
118.6contribution is $4 per month;
118.7(2) if the adjusted gross income is equal to or greater than 175 percent of federal
118.8poverty guidelines and less than or equal to 525 percent of federal poverty guidelines,
118.9the parental contribution shall be determined using a sliding fee scale established by the
118.10commissioner of human services which begins at one percent of adjusted gross income
118.11at 175 percent of federal poverty guidelines and increases to eight percent of adjusted
118.12gross income for those with adjusted gross income up to 525 percent of federal poverty
118.13guidelines;
118.14(3) if the adjusted gross income is greater than 525 percent of federal poverty
118.15guidelines and less than 675 percent of federal poverty guidelines, the parental contribution
118.16shall be 9.5 percent of adjusted gross income;
118.17(4) if the adjusted gross income is equal to or greater than 675 percent of federal
118.18poverty guidelines and less than 900 percent of federal poverty guidelines, the parental
118.19contribution shall be determined using a sliding fee scale established by the commissioner
118.20of human services which begins at 9.5 percent of adjusted gross income at 675 percent of
118.21federal poverty guidelines and increases to 12 percent of adjusted gross income for those
118.22with adjusted gross income up to 900 percent of federal poverty guidelines; and
118.23(5) if the adjusted gross income is equal to or greater than 900 percent of federal
118.24poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross
118.25income. If the child lives with the parent, the annual adjusted gross income is reduced by
118.26$2,400 prior to calculating the parental contribution. If the child resides in an institution
118.27specified in section 256B.35, the parent is responsible for the personal needs allowance
118.28specified under that section in addition to the parental contribution determined under this
118.29section. The parental contribution is reduced by any amount required to be paid directly to
118.30the child pursuant to a court order, but only if actually paid.

118.31    Sec. 7. [256.4825] REPORT REGARDING PROGRAMS AND SERVICES FOR
118.32PEOPLE WITH DISABILITIES.
118.33The Minnesota State Council on Disability, the Minnesota Consortium for Citizens
118.34with Disabilities, and the Arc of Minnesota may submit an annual report by January 15 of
118.35each year, beginning in 2012, to the chairs and ranking minority members of the legislative
119.1committees with jurisdiction over programs serving people with disabilities as provided in
119.2this section. The report must describe the existing state policies and goals for programs
119.3serving people with disabilities including, but not limited to, programs for employment,
119.4transportation, housing, education, quality assurance, consumer direction, physical and
119.5programmatic access, and health. The report must provide data and measurements to
119.6assess the extent to which the policies and goals are being met. The commissioner of
119.7human services and the commissioners of other state agencies administering programs for
119.8people with disabilities shall cooperate with the Minnesota State Council on Disability,
119.9the Minnesota Consortium for Citizens with Disabilities, and the Arc of Minnesota and
119.10provide those organizations with existing published information and reports that will assist
119.11in the preparation of the report.

119.12    Sec. 8. Minnesota Statutes 2009 Supplement, section 256.975, subdivision 7, is
119.13amended to read:
119.14    Subd. 7. Consumer information and assistance and long-term care options
119.15counseling; Senior LinkAge Line. (a) The Minnesota Board on Aging shall operate a
119.16statewide service to aid older Minnesotans and their families in making informed choices
119.17about long-term care options and health care benefits. Language services to persons with
119.18limited English language skills may be made available. The service, known as Senior
119.19LinkAge Line, must be available during business hours through a statewide toll-free
119.20number and must also be available through the Internet.
119.21    (b) The service must provide long-term care options counseling by assisting older
119.22adults, caregivers, and providers in accessing information and options counseling about
119.23choices in long-term care services that are purchased through private providers or available
119.24through public options. The service must:
119.25    (1) develop a comprehensive database that includes detailed listings in both
119.26consumer- and provider-oriented formats;
119.27    (2) make the database accessible on the Internet and through other telecommunication
119.28and media-related tools;
119.29    (3) link callers to interactive long-term care screening tools and make these tools
119.30available through the Internet by integrating the tools with the database;
119.31    (4) develop community education materials with a focus on planning for long-term
119.32care and evaluating independent living, housing, and service options;
119.33    (5) conduct an outreach campaign to assist older adults and their caregivers in
119.34finding information on the Internet and through other means of communication;
120.1    (6) implement a messaging system for overflow callers and respond to these callers
120.2by the next business day;
120.3    (7) link callers with county human services and other providers to receive more
120.4in-depth assistance and consultation related to long-term care options;
120.5    (8) link callers with quality profiles for nursing facilities and other providers
120.6developed by the commissioner of health;
120.7    (9) incorporate information about the availability of housing options, as well as
120.8registered housing with services and consumer rights within the MinnesotaHelp.info
120.9network long-term care database to facilitate consumer comparison of services and costs
120.10among housing with services establishments and with other in-home services and to
120.11support financial self-sufficiency as long as possible. Housing with services establishments
120.12and their arranged home care providers shall provide information to the commissioner of
120.13human services that is consistent with information required by the commissioner of health
120.14under section 144G.06, the Uniform Consumer Information Guide that will facilitate price
120.15comparisons, including delineation of charges for rent and for services available. The
120.16commissioners of health and human services shall align the data elements required by
120.17section 144G.06, the Uniform Consumer Information Guide, and this section to provide
120.18consumers standardized information and ease of comparison of long-term care options.
120.19The commissioner of human services shall provide the data to the Minnesota Board on
120.20Aging for inclusion in the MinnesotaHelp.info network long-term care database;
120.21(10) provide long-term care options counseling. Long-term care options counselors
120.22shall:
120.23(i) for individuals not eligible for case management under a public program or public
120.24funding source, provide interactive decision support under which consumers, family
120.25members, or other helpers are supported in their deliberations to determine appropriate
120.26long-term care choices in the context of the consumer's needs, preferences, values, and
120.27individual circumstances, including implementing a community support plan;
120.28(ii) provide Web-based educational information and collateral written materials to
120.29familiarize consumers, family members, or other helpers with the long-term care basics,
120.30issues to be considered, and the range of options available in the community;
120.31(iii) provide long-term care futures planning, which means providing assistance to
120.32individuals who anticipate having long-term care needs to develop a plan for the more
120.33distant future; and
120.34(iv) provide expertise in benefits and financing options for long-term care, including
120.35Medicare, long-term care insurance, tax or employer-based incentives, reverse mortgages,
121.1private pay options, and ways to access low or no-cost services or benefits through
121.2volunteer-based or charitable programs; and
121.3(11) using risk management and support planning protocols, provide long-term care
121.4options counseling to current residents of nursing homes deemed appropriate for discharge
121.5by the commissioner. In order to meet this requirement, the commissioner shall provide
121.6designated Senior LinkAge Line contact centers with a list of nursing home residents
121.7appropriate for discharge planning via a secure Web portal. Senior LinkAge Line shall
121.8provide these residents, if they indicate a preference to receive long-term care options
121.9counseling, with initial assessment, review of risk factors, independent living support
121.10consultation, or referral to:
121.11(i) long-term care consultation services under section 256B.0911;
121.12(ii) designated care coordinators of contracted entities under section 256B.035 for
121.13persons who are enrolled in a managed care plan; or
121.14(iii) the long-term care consultation team for those who are appropriate for relocation
121.15service coordination due to high-risk factors or psychological or physical disability.

121.16    Sec. 9. Minnesota Statutes 2008, section 256B.057, subdivision 9, is amended to read:
121.17    Subd. 9. Employed persons with disabilities. (a) Medical assistance may be paid
121.18for a person who is employed and who:
121.19(1) but for excess earnings or assets, meets the definition of disabled under the
121.20supplemental security income program;
121.21(2) is at least 16 but less than 65 years of age;
121.22(3) meets the asset limits in paragraph (c); and
121.23(4) effective November 1, 2003, pays a premium and other obligations under
121.24paragraph (e).
121.25Any spousal income or assets shall be disregarded for purposes of eligibility and premium
121.26determinations.
121.27(b) After the month of enrollment, a person enrolled in medical assistance under
121.28this subdivision who:
121.29(1) is temporarily unable to work and without receipt of earned income due to a
121.30medical condition, as verified by a physician, may retain eligibility for up to four calendar
121.31months; or
121.32(2) effective January 1, 2004, loses employment for reasons not attributable to the
121.33enrollee, may retain eligibility for up to four consecutive months after the month of job
121.34loss. To receive a four-month extension, enrollees must verify the medical condition or
122.1provide notification of job loss. All other eligibility requirements must be met and the
122.2enrollee must pay all calculated premium costs for continued eligibility.
122.3(c) For purposes of determining eligibility under this subdivision, a person's assets
122.4must not exceed $20,000, excluding:
122.5(1) all assets excluded under section 256B.056;
122.6(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans,
122.7Keogh plans, and pension plans; and
122.8(3) medical expense accounts set up through the person's employer.
122.9(d)(1) Effective January 1, 2004, for purposes of eligibility, there will be a $65
122.10earned income disregard. To be eligible, a person applying for medical assistance under
122.11this subdivision must have earned income above the disregard level.
122.12(2) Effective January 1, 2004, to be considered earned income, Medicare, Social
122.13Security, and applicable state and federal income taxes must be withheld. To be eligible,
122.14a person must document earned income tax withholding.
122.15(e)(1) A person whose earned and unearned income is equal to or greater than 100
122.16percent of federal poverty guidelines for the applicable family size must pay a premium
122.17to be eligible for medical assistance under this subdivision. The premium shall be based
122.18on the person's gross earned and unearned income and the applicable family size using a
122.19sliding fee scale established by the commissioner, which begins at one percent of income
122.20at 100 percent of the federal poverty guidelines and increases to 7.5 percent of income
122.21for those with incomes at or above 300 percent of the federal poverty guidelines. Annual
122.22adjustments in the premium schedule based upon changes in the federal poverty guidelines
122.23shall be effective for premiums due in July of each year.
122.24(2) Effective January 1, 2004, all enrollees must pay a premium to be eligible for
122.25medical assistance under this subdivision. An enrollee shall pay the greater of a $35
122.26premium or the premium calculated in clause (1).
122.27(3) Effective November 1, 2003, all enrollees who receive unearned income must
122.28pay one-half of one percent of unearned income in addition to the premium amount.
122.29(4) Effective November 1, 2003, for enrollees whose income does not exceed 200
122.30percent of the federal poverty guidelines and who are also enrolled in Medicare, the
122.31commissioner must reimburse the enrollee for Medicare Part B premiums under section
122.32256B.0625, subdivision 15 , paragraph (a).
122.33(5) Increases in benefits under title II of the Social Security Act shall not be counted
122.34as income for purposes of this subdivision until July 1 of each year.
123.1(f) A person's eligibility and premium shall be determined by the local county
123.2agency. Premiums must be paid to the commissioner. All premiums are dedicated to
123.3the commissioner.
123.4(g) Any required premium shall be determined at application and redetermined at
123.5the enrollee's six-month income review or when a change in income or household size is
123.6reported. Enrollees must report any change in income or household size within ten days
123.7of when the change occurs. A decreased premium resulting from a reported change in
123.8income or household size shall be effective the first day of the next available billing month
123.9after the change is reported. Except for changes occurring from annual cost-of-living
123.10increases, a change resulting in an increased premium shall not affect the premium amount
123.11until the next six-month review.
123.12(h) Premium payment is due upon notification from the commissioner of the
123.13premium amount required. Premiums may be paid in installments at the discretion of
123.14the commissioner.
123.15(i) Nonpayment of the premium shall result in denial or termination of medical
123.16assistance unless the person demonstrates good cause for nonpayment. Good cause exists
123.17if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to
123.18D, are met. Except when an installment agreement is accepted by the commissioner,
123.19all persons disenrolled for nonpayment of a premium must pay any past due premiums
123.20as well as current premiums due prior to being reenrolled. Nonpayment shall include
123.21payment with a returned, refused, or dishonored instrument. The commissioner may
123.22require a guaranteed form of payment as the only means to replace a returned, refused,
123.23or dishonored instrument.
123.24(j) The commissioner shall notify enrollees annually beginning at least 24 months
123.25before the person's 65th birthday of the medical assistance eligibility rules affecting
123.26income, assets, and treatment of a spouse's income and assets that will be applied upon
123.27reaching age 65.
123.28EFFECTIVE DATE.This section is effective January 1, 2011.

123.29    Sec. 10. Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11,
123.30is amended to read:
123.31    Subd. 11. Personal care assistant; requirements. (a) A personal care assistant
123.32must meet the following requirements:
123.33(1) be at least 18 years of age with the exception of persons who are 16 or 17 years
123.34of age with these additional requirements:
123.35(i) supervision by a qualified professional every 60 days; and
124.1(ii) employment by only one personal care assistance provider agency responsible
124.2for compliance with current labor laws;
124.3(2) be employed by a personal care assistance provider agency;
124.4(3) enroll with the department as a personal care assistant after clearing a background
124.5study. Before a personal care assistant provides services, the personal care assistance
124.6provider agency must initiate a background study on the personal care assistant under
124.7chapter 245C, and the personal care assistance provider agency must have received a
124.8notice from the commissioner that the personal care assistant is:
124.9(i) not disqualified under section 245C.14; or
124.10(ii) is disqualified, but the personal care assistant has received a set aside of the
124.11disqualification under section 245C.22;
124.12(4) be able to effectively communicate with the recipient and personal care
124.13assistance provider agency;
124.14(5) be able to provide covered personal care assistance services according to the
124.15recipient's personal care assistance care plan, respond appropriately to recipient needs,
124.16and report changes in the recipient's condition to the supervising qualified professional
124.17or physician;
124.18(6) not be a consumer of personal care assistance services;
124.19(7) maintain daily written records including, but not limited to, time sheets under
124.20subdivision 12;
124.21(8) effective January 1, 2010, complete standardized training as determined by the
124.22commissioner before completing enrollment. Personal care assistant training must include
124.23successful completion of the following training components: basic first aid, vulnerable
124.24adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of
124.25personal care assistants including information about assistance with lifting and transfers
124.26for recipients, emergency preparedness, orientation to positive behavioral practices, fraud
124.27issues, and completion of time sheets. Upon completion of the training components,
124.28the personal care assistant must demonstrate the competency to provide assistance to
124.29recipients;
124.30(9) complete training and orientation on the needs of the recipient within the first
124.31seven days after the services begin; and
124.32(10) be limited to providing and being paid for up to 310 275 hours per month of
124.33personal care assistance services regardless of the number of recipients being served or the
124.34number of personal care assistance provider agencies enrolled with.
124.35(b) A legal guardian may be a personal care assistant if the guardian is not being paid
124.36for the guardian services and meets the criteria for personal care assistants in paragraph (a).
125.1(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant
125.2include parents and stepparents of minors, spouses, paid legal guardians, family foster
125.3care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or
125.4staff of a residential setting.
125.5EFFECTIVE DATE.This section is effective July 1, 2011.

125.6    Sec. 11. Minnesota Statutes 2008, section 256B.0915, is amended by adding a
125.7subdivision to read:
125.8    Subd. 3i. Rate reduction for customized living and 24-hour customized living
125.9services. (a) Effective July 1, 2010, the commissioner shall reduce service component
125.10rates and service rate limits for customized living services and 24-hour customized living
125.11services, from the rates in effect on June 30, 2010, by five percent.
125.12(b) To implement the rate reductions in this subdivision, capitation rates paid by the
125.13commissioner to managed care organizations under section 256B.69 shall reflect a ten
125.14percent reduction for the specified services for the period January 1, 2011, to June 30,
125.152011, and a five percent reduction for those services on and after July 1, 2011.

125.16    Sec. 12. Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55,
125.17is amended to read:
125.18    Subd. 55. Phase-in of rebased operating payment rates. (a) For the rate years
125.19beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated
125.20under this section shall be phased in by blending the operating rate with the operating
125.21payment rate determined under section 256B.434. For purposes of this subdivision, the
125.22rate to be used that is determined under section 256B.434 shall not include the portion of
125.23the operating payment rate related to performance-based incentive payments under section
125.24256B.434, subdivision 4 , paragraph (d). For the rate year beginning October 1, 2008, the
125.25operating payment rate for each facility shall be 13 percent of the operating payment rate
125.26from this section, and 87 percent of the operating payment rate from section 256B.434.
125.27For the rate year beginning October 1, 2009, the operating payment rate for each facility
125.28shall be 14 percent of the operating payment rate from this section, and 86 percent of
125.29the operating payment rate from section 256B.434. For rate years beginning October 1,
125.302010; October 1, 2011; and October 1, 2012, For the rate period from October 1, 2009, to
125.31September 30, 2013, no rate adjustments shall be implemented under this section, but shall
125.32be determined under section 256B.434. For the rate year beginning October 1, 2013, the
125.33operating payment rate for each facility shall be 65 percent of the operating payment rate
125.34from this section, and 35 percent of the operating payment rate from section 256B.434.
126.1For the rate year beginning October 1, 2014, the operating payment rate for each facility
126.2shall be 82 percent of the operating payment rate from this section, and 18 percent of the
126.3operating payment rate from section 256B.434. For the rate year beginning October 1,
126.42015, the operating payment rate for each facility shall be the operating payment rate
126.5determined under this section. The blending of operating payment rates under this section
126.6shall be performed separately for each RUG's class.
126.7    (b) For the rate year beginning October 1, 2008, the commissioner shall apply limits
126.8to the operating payment rate increases under paragraph (a) by creating a minimum
126.9percentage increase and a maximum percentage increase.
126.10    (1) Each nursing facility that receives a blended October 1, 2008, operating payment
126.11rate increase under paragraph (a) of less than one percent, when compared to its operating
126.12payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00,
126.13shall receive a rate adjustment of one percent.
126.14    (2) The commissioner shall determine a maximum percentage increase that will
126.15result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing
126.16facilities with a blended October 1, 2008, operating payment rate increase under paragraph
126.17(a) greater than the maximum percentage increase determined by the commissioner, when
126.18compared to its operating payment rate on September 30, 2008, computed using rates with
126.19a RUG's weight of 1.00, shall receive the maximum percentage increase.
126.20    (3) Nursing facilities with a blended October 1, 2008, operating payment rate
126.21increase under paragraph (a) greater than one percent and less than the maximum
126.22percentage increase determined by the commissioner, when compared to its operating
126.23payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00,
126.24shall receive the blended October 1, 2008, operating payment rate increase determined
126.25under paragraph (a).
126.26    (4) The October 1, 2009, through October 1, 2015, operating payment rate for
126.27facilities receiving the maximum percentage increase determined in clause (2) shall be
126.28the amount determined under paragraph (a) less the difference between the amount
126.29determined under paragraph (a) for October 1, 2008, and the amount allowed under clause
126.30(2). This rate restriction does not apply to rate increases provided in any other section.
126.31    (c) A portion of the funds received under this subdivision that are in excess of
126.32operating payment rates that a facility would have received under section 256B.434, as
126.33determined in accordance with clauses (1) to (3), shall be subject to the requirements in
126.34section 256B.434, subdivision 19, paragraphs (b) to (h).
126.35    (1) Determine the amount of additional funding available to a facility, which shall be
126.36equal to total medical assistance resident days from the most recent reporting year times
127.1the difference between the blended rate determined in paragraph (a) for the rate year being
127.2computed and the blended rate for the prior year.
127.3    (2) Determine the portion of all operating costs, for the most recent reporting year,
127.4that are compensation related. If this value exceeds 75 percent, use 75 percent.
127.5    (3) Subtract the amount determined in clause (2) from 75 percent.
127.6    (4) The portion of the fund received under this subdivision that shall be subject to
127.7the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal
127.8the amount determined in clause (1) times the amount determined in clause (3).
127.9EFFECTIVE DATE.This section is effective retroactive to October 1, 2009.

127.10    Sec. 13. Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 23,
127.11is amended to read:
127.12    Subd. 23. Alternative services; elderly and disabled persons. (a) The
127.13commissioner may implement demonstration projects to create alternative integrated
127.14delivery systems for acute and long-term care services to elderly persons and persons
127.15with disabilities as defined in section 256B.77, subdivision 7a, that provide increased
127.16coordination, improve access to quality services, and mitigate future cost increases.
127.17The commissioner may seek federal authority to combine Medicare and Medicaid
127.18capitation payments for the purpose of such demonstrations and may contract with
127.19Medicare-approved special needs plans to provide Medicaid services. Medicare funds and
127.20services shall be administered according to the terms and conditions of the federal contract
127.21and demonstration provisions. For the purpose of administering medical assistance funds,
127.22demonstrations under this subdivision are subject to subdivisions 1 to 22. The provisions
127.23of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations,
127.24with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1,
127.25items B and C, which do not apply to persons enrolling in demonstrations under this
127.26section. An initial open enrollment period may be provided. Persons who disenroll from
127.27demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450
127.28to 9500.1464. When a person is enrolled in a health plan under these demonstrations and
127.29the health plan's participation is subsequently terminated for any reason, the person shall
127.30be provided an opportunity to select a new health plan and shall have the right to change
127.31health plans within the first 60 days of enrollment in the second health plan. Persons
127.32required to participate in health plans under this section who fail to make a choice of
127.33health plan shall not be randomly assigned to health plans under these demonstrations.
127.34Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220,
127.35subpart 1, item A, if adopted, for the purpose of demonstrations under this subdivision,
128.1the commissioner may contract with managed care organizations, including counties, to
128.2serve only elderly persons eligible for medical assistance, elderly and disabled persons, or
128.3disabled persons only. For persons with a primary diagnosis of developmental disability,
128.4serious and persistent mental illness, or serious emotional disturbance, the commissioner
128.5must ensure that the county authority has approved the demonstration and contracting
128.6design. Enrollment in these projects for persons with disabilities shall be voluntary. The
128.7commissioner shall not implement any demonstration project under this subdivision for
128.8persons with a primary diagnosis of developmental disabilities, serious and persistent
128.9mental illness, or serious emotional disturbance, without approval of the county board of
128.10the county in which the demonstration is being implemented.
128.11    (b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501
128.12to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to
128.139525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement
128.14under this section projects for persons with developmental disabilities. The commissioner
128.15may capitate payments for ICF/MR services, waivered services for developmental
128.16disabilities, including case management services, day training and habilitation and
128.17alternative active treatment services, and other services as approved by the state and by the
128.18federal government. Case management and active treatment must be individualized and
128.19developed in accordance with a person-centered plan. Costs under these projects may not
128.20exceed costs that would have been incurred under fee-for-service. Beginning July 1, 2003,
128.21and until four years after the pilot project implementation date, subcontractor participation
128.22in the long-term care developmental disability pilot is limited to a nonprofit long-term
128.23care system providing ICF/MR services, home and community-based waiver services,
128.24and in-home services to no more than 120 consumers with developmental disabilities in
128.25Carver, Hennepin, and Scott Counties. The commissioner shall report to the legislature
128.26prior to expansion of the developmental disability pilot project. This paragraph expires
128.27four years after the implementation date of the pilot project.
128.28    (c) Before implementation of a demonstration project for disabled persons, the
128.29commissioner must provide information to appropriate committees of the house of
128.30representatives and senate and must involve representatives of affected disability groups
128.31in the design of the demonstration projects.
128.32    (d) A nursing facility reimbursed under the alternative reimbursement methodology
128.33in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity
128.34provide services under paragraph (a). The commissioner shall amend the state plan and
128.35seek any federal waivers necessary to implement this paragraph.
129.1    (e) The commissioner, in consultation with the commissioners of commerce and
129.2health, may approve and implement programs for all-inclusive care for the elderly (PACE)
129.3according to federal laws and regulations governing that program and state laws or rules
129.4applicable to participating providers. The process for approval of these programs shall
129.5begin only after the commissioner receives grant money in an amount sufficient to cover
129.6the state share of the administrative and actuarial costs to implement the programs during
129.7state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an
129.8account in the special revenue fund and are appropriated to the commissioner to be used
129.9solely for the purpose of PACE administrative and actuarial costs. A PACE provider is
129.10not required to be licensed or certified as a health plan company as defined in section
129.1162Q.01, subdivision 4 . Persons age 55 and older who have been screened by the county
129.12and found to be eligible for services under the elderly waiver or community alternatives
129.13for disabled individuals or who are already eligible for Medicaid but meet level of
129.14care criteria for receipt of waiver services may choose to enroll in the PACE program.
129.15Medicare and Medicaid services will be provided according to this subdivision and
129.16federal Medicare and Medicaid requirements governing PACE providers and programs.
129.17PACE enrollees will receive Medicaid home and community-based services through the
129.18PACE provider as an alternative to services for which they would otherwise be eligible
129.19through home and community-based waiver programs and Medicaid State Plan Services.
129.20The commissioner shall establish Medicaid rates for PACE providers that do not exceed
129.21costs that would have been incurred under fee-for-service or other relevant managed care
129.22programs operated by the state.
129.23    (f) The commissioner shall seek federal approval to expand the Minnesota disability
129.24health options (MnDHO) program established under this subdivision in stages, first to
129.25regional population centers outside the seven-county metro area and then to all areas of
129.26the state. Until July 1, 2009, expansion for MnDHO projects that include home and
129.27community-based services is limited to the two projects and service areas in effect on
129.28March 1, 2006. Enrollment in integrated MnDHO programs that include home and
129.29community-based services shall remain voluntary. Costs for home and community-based
129.30services included under MnDHO must not exceed costs that would have been incurred
129.31under the fee-for-service program. Notwithstanding whether expansion occurs under
129.32this paragraph, in determining MnDHO payment rates and risk adjustment methods for
129.33contract years starting in 2012, the commissioner must consider the methods used to
129.34determine county allocations for home and community-based program participants. If
129.35necessary to reduce MnDHO rates to comply with the provision regarding MnDHO costs
129.36for home and community-based services, the commissioner shall achieve the reduction
130.1by maintaining the base rate for contract years year 2010 and 2011 for services provided
130.2under the community alternatives for disabled individuals waiver at the same level as for
130.3contract year 2009. The commissioner may apply other reductions to MnDHO rates to
130.4implement decreases in provider payment rates required by state law. Effective January
130.51, 2011, enrollment and operation of the MnDHO program in effect during 2010 shall
130.6cease. The commissioner may reopen the program provided all applicable conditions of
130.7this section are met. In developing program specifications for expansion of integrated
130.8programs, the commissioner shall involve and consult the state-level stakeholder group
130.9established in subdivision 28, paragraph (d), including consultation on whether and how
130.10to include home and community-based waiver programs. Plans for further expansion of to
130.11reopen MnDHO projects shall be presented to the chairs of the house of representatives
130.12and senate committees with jurisdiction over health and human services policy and finance
130.13by February 1, 2007 prior to implementation.
130.14    (g) Notwithstanding section 256B.0261, health plans providing services under this
130.15section are responsible for home care targeted case management and relocation targeted
130.16case management. Services must be provided according to the terms of the waivers and
130.17contracts approved by the federal government.

130.18    Sec. 14. Laws 2009, chapter 79, article 8, section 51, the effective date, is amended to
130.19read:
130.20EFFECTIVE DATE.This section is effective January July 1, 2011.

130.21    Sec. 15. Laws 2009, chapter 79, article 8, section 84, is amended to read:
130.22    Sec. 84. HOUSING OPTIONS.
130.23The commissioner of human services, in consultation with the commissioner of
130.24administration and the Minnesota Housing Finance Agency, and representatives of
130.25counties, residents' advocacy groups, consumers of housing services, and provider
130.26agencies shall explore ways to maximize the availability and affordability of housing
130.27choices available to persons with disabilities or who need care assistance due to other
130.28health challenges. A goal shall also be to minimize state physical plant costs in order to
130.29serve more persons with appropriate program and care support. Consideration shall be
130.30given to:
130.31(1) improved access to rent subsidies;
130.32(2) use of cooperatives, land trusts, and other limited equity ownership models;
130.33(3) whether a public equity housing fund should be established that would maintain
130.34the state's interest, to the extent paid from state funds, including group residential housing
131.1and Minnesota supplemental aid shelter-needy funds in provider-owned housing, so that
131.2when sold, the state would recover its share for a public equity fund to be used for future
131.3public needs under this chapter;
131.4(4) the desirability of the state acquiring an ownership interest or promoting the
131.5use of publicly owned housing;
131.6(5) promoting more choices in the market for accessible housing that meets the
131.7needs of persons with physical challenges; and
131.8(6) what consumer ownership models, if any, are appropriate; and
131.9(7) a review of the definition of home and community services and appropriate
131.10settings where these services may be provided, including the number of people who
131.11may reside under one roof, through the home and community-based waivers for seniors
131.12and individuals with disabilities.
131.13The commissioner shall provide a written report on the findings of the evaluation of
131.14housing options to the chairs and ranking minority members of the house of representatives
131.15and senate standing committees with jurisdiction over health and human services policy
131.16and funding by December 15, 2010. This report shall replace the November 1, 2010,
131.17annual report by the commissioner required in Minnesota Statutes, sections 256B.0916,
131.18subdivision 7
, and 256B.49, subdivision 21.

131.19    Sec. 16. COMMISSIONER TO SEEK FEDERAL MATCH.
131.20(a) The commissioner of human services shall seek federal financial participation
131.21for eligible activity related to fiscal years 2010 and 2011 grants to Advocating Change
131.22Together to establish a statewide self-advocacy network for persons with developmental
131.23disabilities and for eligible activities under any future grants to the organization.
131.24(b) The commissioner shall report to the chairs and ranking minority members of
131.25the senate Health and Human Services Budget Division and the house of representatives
131.26Health Care and Human Services Finance Division by December 15, 2010, with the
131.27results of the application for federal matching funds.

131.28    Sec. 17. ICF/MR RATE INCREASE.
131.29    The daily rate at an intermediate care facility for the developmentally disabled
131.30located in Clearwater County and classified as a Class A facility with 15 beds shall be
131.31increased from $112.73 to $138.23 for the rate period July 1, 2010, to June 30, 2011.

132.1ARTICLE 18
132.2CHILDREN AND FAMILY SERVICES

132.3    Section 1. Minnesota Statutes 2008, section 256D.0515, is amended to read:
132.4256D.0515 ASSET LIMITATIONS FOR FOOD STAMP HOUSEHOLDS.
132.5All food stamp households must be determined eligible for the benefit discussed
132.6under section 256.029. Food stamp households must demonstrate that:
132.7(1) their gross income meets the federal Food Stamp requirements under United
132.8States Code, title 7, section 2014(c); and
132.9(2) they have financial resources, excluding vehicles, of less than $7,000 is equal to
132.10or less than 165 percent of the federal poverty guidelines for the same family size.
132.11EFFECTIVE DATE.This section is effective November 1, 2010.

132.12    Sec. 2. Minnesota Statutes 2008, section 256I.05, is amended by adding a subdivision
132.13to read:
132.14    Subd. 1n. Supplemental rate; Mahnomen County. Notwithstanding the
132.15provisions of this section, for the rate period July 1, 2010, to June 30, 2011, a county
132.16agency shall negotiate a supplemental service rate in addition to the rate specified in
132.17subdivision 1, not to exceed $753 per month or the existing rate, including any legislative
132.18authorized inflationary adjustments, for a group residential provider located in Mahnomen
132.19County that operates a 28-bed facility providing 24-hour care to individuals who are
132.20homeless, disabled, chemically dependent, mentally ill, or chronically homeless.

132.21    Sec. 3. Minnesota Statutes 2008, section 256J.24, subdivision 6, is amended to read:
132.22    Subd. 6. Family cap. (a) MFIP assistance units shall not receive an increase in the
132.23cash portion of the transitional standard as a result of the birth of a child, unless one of
132.24the conditions under paragraph (b) is met. The child shall be considered a member of the
132.25assistance unit according to subdivisions 1 to 3, but shall be excluded in determining
132.26family size for purposes of determining the amount of the cash portion of the transitional
132.27standard under subdivision 5. The child shall be included in determining family size for
132.28purposes of determining the food portion of the transitional standard. The transitional
132.29standard under this subdivision shall be the total of the cash and food portions as specified
132.30in this paragraph. The family wage level under this subdivision shall be based on the
132.31family size used to determine the food portion of the transitional standard.
133.1(b) A child shall be included in determining family size for purposes of determining
133.2the amount of the cash portion of the MFIP transitional standard when at least one of
133.3the following conditions is met:
133.4(1) for families receiving MFIP assistance on July 1, 2003, the child is born to the
133.5adult parent before May 1, 2004;
133.6(2) for families who apply for the diversionary work program under section 256J.95
133.7or MFIP assistance on or after July 1, 2003, the child is born to the adult parent within
133.8ten months of the date the family is eligible for assistance;
133.9(3) the child was conceived as a result of a sexual assault or incest, provided that the
133.10incident has been reported to a law enforcement agency;
133.11(4) the child's mother is a minor caregiver as defined in section 256J.08, subdivision
133.1259
, and the child, or multiple children, are the mother's first birth; or
133.13(5) the child is the mother's first child subsequent to a pregnancy that did not result
133.14in a live birth; or
133.15(6) any child previously excluded in determining family size under paragraph
133.16(a) shall be included if the adult parent or parents have not received benefits from the
133.17diversionary work program under section 256J.95 or MFIP assistance in the previous ten
133.18months. An adult parent or parents who reapply and have received benefits from the
133.19diversionary work program or MFIP assistance in the past ten months shall be under the
133.20ten-month grace period of their previous application under clause (2).
133.21(c) Income and resources of a child excluded under this subdivision, except child
133.22support received or distributed on behalf of this child, must be considered using the same
133.23policies as for other children when determining the grant amount of the assistance unit.
133.24(d) The caregiver must assign support and cooperate with the child support
133.25enforcement agency to establish paternity and collect child support on behalf of the
133.26excluded child. Failure to cooperate results in the sanction specified in section 256J.46,
133.27subdivisions 2 and 2a
. Current support paid on behalf of the excluded child shall be
133.28distributed according to section 256.741, subdivision 15.
133.29(e) County agencies must inform applicants of the provisions under this subdivision
133.30at the time of each application and at recertification.
133.31(f) Children excluded under this provision shall be deemed MFIP recipients for
133.32purposes of child care under chapter 119B.
133.33EFFECTIVE DATE.This section is effective September 1, 2010.

133.34    Sec. 4. Minnesota Statutes 2009 Supplement, section 256J.425, subdivision 3, is
133.35amended to read:
134.1    Subd. 3. Hard-to-employ participants. (a) An assistance unit subject to the time
134.2limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under
134.3a hardship extension if the participant who reached the time limit belongs to any of the
134.4following groups:
134.5    (1) a person who is diagnosed by a licensed physician, psychological practitioner, or
134.6other qualified professional, as developmentally disabled or mentally ill, and the condition
134.7severely limits the person's ability to obtain or maintain suitable employment;
134.8    (2) a person who:
134.9    (i) has been assessed by a vocational specialist or the county agency to be
134.10unemployable for purposes of this subdivision; or
134.11    (ii) has an IQ below 80 who has been assessed by a vocational specialist or a county
134.12agency to be employable, but the condition severely limits the person's ability to obtain or
134.13maintain suitable employment. The determination of IQ level must be made by a qualified
134.14professional. In the case of a non-English-speaking person: (A) the determination must
134.15be made by a qualified professional with experience conducting culturally appropriate
134.16assessments, whenever possible; (B) the county may accept reports that identify an
134.17IQ range as opposed to a specific score; (C) these reports must include a statement of
134.18confidence in the results;
134.19    (3) a person who is determined by a qualified professional to be learning disabled,
134.20and the condition severely limits the person's ability to obtain or maintain suitable
134.21employment. For purposes of the initial approval of a learning disability extension, the
134.22determination must have been made or confirmed within the previous 12 months. In the
134.23case of a non-English-speaking person: (i) the determination must be made by a qualified
134.24professional with experience conducting culturally appropriate assessments, whenever
134.25possible; and (ii) these reports must include a statement of confidence in the results. If a
134.26rehabilitation plan for a participant extended as learning disabled is developed or approved
134.27by the county agency, the plan must be incorporated into the employment plan. However,
134.28a rehabilitation plan does not replace the requirement to develop and comply with an
134.29employment plan under section 256J.521; or
134.30    (4) a person who has been granted a family violence waiver, and who is complying
134.31with an employment plan under section 256J.521, subdivision 3.
134.32    (b) For purposes of this section chapter, "severely limits the person's ability to obtain
134.33or maintain suitable employment" means:
134.34    (1) that a qualified professional has determined that the person's condition prevents
134.35the person from working 20 or more hours per week; or
135.1    (2) for a person who meets the requirements of paragraph (a), clause (2), item (ii), or
135.2clause (3), a qualified professional has determined the person's condition:
135.3    (i) significantly restricts the range of employment that the person is able to perform;
135.4or
135.5    (ii) significantly interferes with the person's ability to obtain or maintain suitable
135.6employment for 20 or more hours per week.

135.7    Sec. 5. Minnesota Statutes 2009 Supplement, section 256J.621, is amended to read:
135.8256J.621 WORK PARTICIPATION CASH BENEFITS.
135.9    (a) Effective October 1, 2009, upon exiting the diversionary work program (DWP)
135.10or upon terminating the Minnesota family investment program with earnings, a participant
135.11who is employed may be eligible for work participation cash benefits of $50 $25 per
135.12month to assist in meeting the family's basic needs as the participant continues to move
135.13toward self-sufficiency.
135.14    (b) To be eligible for work participation cash benefits, the participant shall not
135.15receive MFIP or diversionary work program assistance during the month and the
135.16participant or participants must meet the following work requirements:
135.17    (1) if the participant is a single caregiver and has a child under six years of age, the
135.18participant must be employed at least 87 hours per month;
135.19    (2) if the participant is a single caregiver and does not have a child under six years of
135.20age, the participant must be employed at least 130 hours per month; or
135.21    (3) if the household is a two-parent family, at least one of the parents must be
135.22employed an average of at least 130 hours per month.
135.23    Whenever a participant exits the diversionary work program or is terminated from
135.24MFIP and meets the other criteria in this section, work participation cash benefits are
135.25available for up to 24 consecutive months.
135.26    (c) Expenditures on the program are maintenance of effort state funds under
135.27a separate state program for participants under paragraph (b), clauses (1) and (2).
135.28Expenditures for participants under paragraph (b), clause (3), are nonmaintenance of effort
135.29funds. Months in which a participant receives work participation cash benefits under this
135.30section do not count toward the participant's MFIP 60-month time limit.
135.31EFFECTIVE DATE.This section is effective October 1, 2010.

136.1ARTICLE 19
136.2MISCELLANEOUS

136.3    Section 1. [62Q.545] COVERAGE OF PRIVATE DUTY NURSING SERVICES.
136.4(a) Private duty nursing services, as provided under section 256B.0625, subdivision
136.57, with the exception of section 256B.0654, subdivision 4, shall be covered under a health
136.6plan for persons who are concurrently covered by both the health plan and enrolled in
136.7medical assistance under chapter 256B.
136.8(b) For purposes of this section, a period of private duty nursing services may
136.9be subject to the co-payment, coinsurance, deductible, or other enrollee cost-sharing
136.10requirements that apply under the health plan. Cost-sharing requirements for private
136.11duty nursing services must not place a greater financial burden on the insured or enrollee
136.12than those requirements applied by the health plan to other similar services or benefits.
136.13Nothing in this section is intended to prevent a health plan company from requiring
136.14prior authorization by the health plan company for such services as required by section
136.15256B.0625, subdivision 7, or use of contracted providers under the applicable provisions
136.16of the health plan.
136.17EFFECTIVE DATE.This section is effective July 1, 2010, and applies to health
136.18plans offered, sold, issued, or renewed on or after that date.

136.19    Sec. 2. [137.32] MINNESOTA COUPLES ON THE BRINK PROJECT.
136.20    Subdivision 1. Establishment. Within the limits of available appropriations, the
136.21Board of Regents of the University of Minnesota is requested to develop and implement
136.22a Minnesota couples on the brink project, as provided for in this section. The regents
136.23may administer the project with federal grants, state appropriations, and in-kind services
136.24received for this purpose.
136.25    Subd. 2. Purpose. The purpose of the project is to develop, evaluate, and
136.26disseminate best practices for promoting successful reconciliation between married
136.27persons who are considering or have commenced a marriage dissolution proceeding and
136.28who choose to pursue reconciliation.
136.29    Subd. 3. Implementation. The regents shall:
136.30(1) enter into contracts or manage a grant process for implementation of the project;
136.31and
136.32(2) develop and implement an evaluation component for the project.

137.1    Sec. 3. Minnesota Statutes 2008, section 152.126, as amended by Laws 2009, chapter
137.279, article 11, sections 9, 10, and 11, is amended to read:
137.3152.126 SCHEDULE II AND III CONTROLLED SUBSTANCES
137.4PRESCRIPTION ELECTRONIC REPORTING SYSTEM.
137.5    Subdivision 1. Definitions. For purposes of this section, the terms defined in this
137.6subdivision have the meanings given.
137.7    (a) "Board" means the Minnesota State Board of Pharmacy established under
137.8chapter 151.
137.9    (b) "Controlled substances" means those substances listed in section 152.02,
137.10subdivisions 3 to 5, and those substances defined by the board pursuant to section 152.02,
137.11subdivisions 7
, 8, and 12.
137.12    (c) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision
137.1330. Dispensing does not include the direct administering of a controlled substance to a
137.14patient by a licensed health care professional.
137.15    (d) "Dispenser" means a person authorized by law to dispense a controlled substance,
137.16pursuant to a valid prescription. For the purposes of this section, a dispenser does not
137.17include a licensed hospital pharmacy that distributes controlled substances for inpatient
137.18hospital care or a veterinarian who is dispensing prescriptions under section 156.18.
137.19    (e) "Prescriber" means a licensed health care professional who is authorized to
137.20prescribe a controlled substance under section 152.12, subdivision 1.
137.21    (f) "Prescription" has the meaning given in section 151.01, subdivision 16.
137.22    Subd. 1a. Treatment of intractable pain. This section is not intended to limit or
137.23interfere with the legitimate prescribing of controlled substances for pain. No prescriber
137.24shall be subject to disciplinary action by a health-related licensing board for prescribing a
137.25controlled substance according to the provisions of section 152.125.
137.26    Subd. 2. Prescription electronic reporting system. (a) The board shall establish
137.27by January 1, 2010, an electronic system for reporting the information required under
137.28subdivision 4 for all controlled substances dispensed within the state.
137.29    (b) The board may contract with a vendor for the purpose of obtaining technical
137.30assistance in the design, implementation, operation, and maintenance of the electronic
137.31reporting system.
137.32    Subd. 3. Prescription Electronic Reporting Advisory Committee. (a) The
137.33board shall convene an advisory committee. The committee must include at least one
137.34representative of:
137.35    (1) the Department of Health;
137.36    (2) the Department of Human Services;
138.1    (3) each health-related licensing board that licenses prescribers;
138.2    (4) a professional medical association, which may include an association of pain
138.3management and chemical dependency specialists;
138.4    (5) a professional pharmacy association;
138.5    (6) a professional nursing association;
138.6    (7) a professional dental association;
138.7    (8) a consumer privacy or security advocate; and
138.8    (9) a consumer or patient rights organization.
138.9    (b) The advisory committee shall advise the board on the development and operation
138.10of the electronic reporting system, including, but not limited to:
138.11    (1) technical standards for electronic prescription drug reporting;
138.12    (2) proper analysis and interpretation of prescription monitoring data; and
138.13    (3) an evaluation process for the program.
138.14    (c) The Board of Pharmacy, after consultation with the advisory committee, shall
138.15present recommendations and draft legislation on the issues addressed by the advisory
138.16committee under paragraph (b), to the legislature by December 15, 2007.
138.17    Subd. 4. Reporting requirements; notice. (a) Each dispenser must submit the
138.18following data to the board or its designated vendor, subject to the notice required under
138.19paragraph (d):
138.20    (1) name of the prescriber;
138.21    (2) national provider identifier of the prescriber;
138.22    (3) name of the dispenser;
138.23    (4) national provider identifier of the dispenser;
138.24    (5) prescription number;
138.25    (6) name of the patient for whom the prescription was written;
138.26    (7) address of the patient for whom the prescription was written;
138.27    (8) date of birth of the patient for whom the prescription was written;
138.28    (9) date the prescription was written;
138.29    (10) date the prescription was filled;
138.30    (11) name and strength of the controlled substance;
138.31    (12) quantity of controlled substance prescribed;
138.32    (13) quantity of controlled substance dispensed; and
138.33    (14) number of days supply.
138.34    (b) The dispenser must submit the required information by a procedure and in a
138.35format established by the board. The board may allow dispensers to omit data listed in this
138.36subdivision or may require the submission of data not listed in this subdivision provided
139.1the omission or submission is necessary for the purpose of complying with the electronic
139.2reporting or data transmission standards of the American Society for Automation in
139.3Pharmacy, the National Council on Prescription Drug Programs, or other relevant national
139.4standard-setting body.
139.5    (c) A dispenser is not required to submit this data for those controlled substance
139.6prescriptions dispensed for:
139.7    (1) individuals residing in licensed skilled nursing or intermediate care facilities;
139.8    (2) individuals receiving assisted living services under chapter 144G or through a
139.9medical assistance home and community-based waiver;
139.10    (3) individuals receiving medication intravenously;
139.11    (4) individuals receiving hospice and other palliative or end-of-life care; and
139.12    (5) individuals receiving services from a home care provider regulated under chapter
139.13144A.
139.14    (d) A dispenser must not submit data under this subdivision unless a conspicuous
139.15notice of the reporting requirements of this section is given to the patient for whom the
139.16prescription was written.
139.17    Subd. 5. Use of data by board. (a) The board shall develop and maintain a database
139.18of the data reported under subdivision 4. The board shall maintain data that could identify
139.19an individual prescriber or dispenser in encrypted form. The database may be used by
139.20permissible users identified under subdivision 6 for the identification of:
139.21    (1) individuals receiving prescriptions for controlled substances from prescribers
139.22who subsequently obtain controlled substances from dispensers in quantities or with a
139.23frequency inconsistent with generally recognized standards of use for those controlled
139.24substances, including standards accepted by national and international pain management
139.25associations; and
139.26    (2) individuals presenting forged or otherwise false or altered prescriptions for
139.27controlled substances to dispensers.
139.28    (b) No permissible user identified under subdivision 6 may access the database
139.29for the sole purpose of identifying prescribers of controlled substances for unusual or
139.30excessive prescribing patterns without a valid search warrant or court order.
139.31    (c) No personnel of a state or federal occupational licensing board or agency may
139.32access the database for the purpose of obtaining information to be used to initiate or
139.33substantiate a disciplinary action against a prescriber.
139.34    (d) Data reported under subdivision 4 shall be retained by the board in the database
139.35for a 12-month period, and shall be removed from the database no later than 12 months
139.36from the date the last day of the month during which the data was received.
140.1    Subd. 6. Access to reporting system data. (a) Except as indicated in this
140.2subdivision, the data submitted to the board under subdivision 4 is private data on
140.3individuals as defined in section 13.02, subdivision 12, and not subject to public disclosure.
140.4    (b) Except as specified in subdivision 5, the following persons shall be considered
140.5permissible users and may access the data submitted under subdivision 4 in the same or
140.6similar manner, and for the same or similar purposes, as those persons who are authorized
140.7to access similar private data on individuals under federal and state law:
140.8    (1) a prescriber or an agent or employee of the prescriber to whom the prescriber has
140.9delegated the task of accessing the data, to the extent the information relates specifically to
140.10a current patient, to whom the prescriber is prescribing or considering prescribing any
140.11controlled substance and with the provision that the prescriber remains responsible for the
140.12use or misuse of data accessed by a delegated agent or employee;
140.13    (2) a dispenser or an agent or employee of the dispenser to whom the dispenser has
140.14delegated the task of accessing the data, to the extent the information relates specifically
140.15to a current patient to whom that dispenser is dispensing or considering dispensing any
140.16controlled substance and with the provision that the dispenser remains responsible for the
140.17use or misuse of data accessed by a delegated agent or employee;
140.18    (3) an individual who is the recipient of a controlled substance prescription for
140.19which data was submitted under subdivision 4, or a guardian of the individual, parent or
140.20guardian of a minor, or health care agent of the individual acting under a health care
140.21directive under chapter 145C;
140.22    (4) personnel of the board specifically assigned to conduct a bona fide investigation
140.23of a specific licensee;
140.24    (5) personnel of the board engaged in the collection of controlled substance
140.25prescription information as part of the assigned duties and responsibilities under this
140.26section;
140.27    (6) authorized personnel of a vendor under contract with the board who are engaged
140.28in the design, implementation, operation, and maintenance of the electronic reporting
140.29system as part of the assigned duties and responsibilities of their employment, provided
140.30that access to data is limited to the minimum amount necessary to carry out such duties
140.31and responsibilities;
140.32    (7) federal, state, and local law enforcement authorities acting pursuant to a valid
140.33search warrant; and
140.34    (8) personnel of the medical assistance program assigned to use the data collected
140.35under this section to identify recipients whose usage of controlled substances may warrant
141.1restriction to a single primary care physician, a single outpatient pharmacy, or a single
141.2hospital.
141.3    For purposes of clause (3), access by an individual includes persons in the definition
141.4of an individual under section 13.02.
141.5    (c) Any permissible user identified in paragraph (b), who directly accesses
141.6the data electronically, shall implement and maintain a comprehensive information
141.7security program that contains administrative, technical, and physical safeguards that
141.8are appropriate to the user's size and complexity, and the sensitivity of the personal
141.9information obtained. The permissible user shall identify reasonably foreseeable internal
141.10and external risks to the security, confidentiality, and integrity of personal information
141.11that could result in the unauthorized disclosure, misuse, or other compromise of the
141.12information and assess the sufficiency of any safeguards in place to control the risks.
141.13    (d) The board shall not release data submitted under this section unless it is provided
141.14with evidence, satisfactory to the board, that the person requesting the information is
141.15entitled to receive the data.
141.16    (e) The board shall not release the name of a prescriber without the written consent
141.17of the prescriber or a valid search warrant or court order. The board shall provide a
141.18mechanism for a prescriber to submit to the board a signed consent authorizing the release
141.19of the prescriber's name when data containing the prescriber's name is requested.
141.20    (f) The board shall maintain a log of all persons who access the data and shall ensure
141.21that any permissible user complies with paragraph (c) prior to attaining direct access to
141.22the data.
141.23(g) Section 13.05, subdivision 6, shall apply to any contract the board enters into
141.24pursuant to subdivision 2. A vendor shall not use data collected under this section for
141.25any purpose not specified in this section.
141.26    Subd. 7. Disciplinary action. (a) A dispenser who knowingly fails to submit data to
141.27the board as required under this section is subject to disciplinary action by the appropriate
141.28health-related licensing board.
141.29    (b) A prescriber or dispenser authorized to access the data who knowingly discloses
141.30the data in violation of state or federal laws relating to the privacy of health care data
141.31shall be subject to disciplinary action by the appropriate health-related licensing board,
141.32and appropriate civil penalties.
141.33    Subd. 8. Evaluation and reporting. (a) The board shall evaluate the prescription
141.34electronic reporting system to determine if the system is negatively impacting appropriate
141.35prescribing practices of controlled substances. The board may contract with a vendor to
141.36design and conduct the evaluation.
142.1    (b) The board shall submit the evaluation of the system to the legislature by January
142.2July 15, 2011.
142.3    Subd. 9. Immunity from liability; no requirement to obtain information. (a) A
142.4pharmacist, prescriber, or other dispenser making a report to the program in good faith
142.5under this section is immune from any civil, criminal, or administrative liability, which
142.6might otherwise be incurred or imposed as a result of the report, or on the basis that the
142.7pharmacist or prescriber did or did not seek or obtain or use information from the program.
142.8    (b) Nothing in this section shall require a pharmacist, prescriber, or other dispenser
142.9to obtain information about a patient from the program, and the pharmacist, prescriber,
142.10or other dispenser, if acting in good faith, is immune from any civil, criminal, or
142.11administrative liability that might otherwise be incurred or imposed for requesting,
142.12receiving, or using information from the program.
142.13    Subd. 10. Funding. (a) The board may seek grants and private funds from nonprofit
142.14charitable foundations, the federal government, and other sources to fund the enhancement
142.15and ongoing operations of the prescription electronic reporting system established under
142.16this section. Any funds received shall be appropriated to the board for this purpose. The
142.17board may not expend funds to enhance the program in a way that conflicts with this
142.18section without seeking approval from the legislature.
142.19(b) The administrative services unit for the health-related licensing boards shall
142.20apportion between the Board of Medical Practice, the Board of Nursing, the Board of
142.21Dentistry, the Board of Podiatric Medicine, the Board of Optometry, and the Board
142.22of Pharmacy an amount to be paid through fees by each respective board. The amount
142.23apportioned to each board shall equal each board's share of the annual appropriation to
142.24the Board of Pharmacy from the state government special revenue fund for operating the
142.25prescription electronic reporting system under this section. Each board's apportioned
142.26share shall be based on the number of prescribers or dispensers that each board identified
142.27in this paragraph licenses as a percentage of the total number of prescribers and dispensers
142.28licensed collectively by these boards. Each respective board may adjust the fees that the
142.29boards are required to collect to compensate for the amount apportioned to each board by
142.30the administrative services unit.

142.31    Sec. 4. [246.125] CHEMICAL AND MENTAL HEALTH SERVICES
142.32TRANSFORMATION ADVISORY TASK FORCE.
142.33    Subdivision 1. Establishment. The Chemical and Mental Health Services
142.34Transformation Advisory Task Force is established to make recommendations to the
142.35commissioner of human services and the legislature on the continuum of services needed
143.1to provide individuals with complex conditions including mental illness, chemical
143.2dependency, traumatic brain injury, and developmental disabilities access to quality care
143.3and the appropriate level of care across the state to promote wellness, reduce cost, and
143.4improve efficiency.
143.5    Subd. 2. Duties. The Chemical and Mental Health Services Transformation
143.6Advisory Task Force shall make recommendations to the commissioner and the legislature
143.7no later than December 15, 2010, on the following:
143.8(1) transformation needed to improve service delivery and provide a continuum of
143.9care, such as transition of current facilities, closure of current facilities, or the development
143.10of new models of care, including the redesign of the Anoka-Metro Regional Treatment
143.11Center;
143.12(2) gaps and barriers to accessing quality care, system inefficiencies, and cost
143.13pressures;
143.14(3) services that are best provided by the state and those that are best provided
143.15in the community;
143.16(4) an implementation plan to achieve integrated service delivery across the public,
143.17private, and nonprofit sectors;
143.18(5) an implementation plan to ensure that individuals with complex chemical and
143.19mental health needs receive the appropriate level of care to achieve recovery and wellness;
143.20and
143.21(6) financing mechanisms that include all possible revenue sources to maximize
143.22federal funding and promote cost efficiencies and sustainability.
143.23    Subd. 3. Membership. The advisory task force shall be composed of the following,
143.24who will serve at the pleasure of their appointing authority:
143.25(1) the commissioner of human services or the commissioner's designee, and two
143.26additional representatives from the department;
143.27(2) two legislators appointed by the speaker of the house, one from the minority
143.28and one from the majority;
143.29(3) two legislators appointed by the senate rules committee, one from the minority
143.30and one from the majority;
143.31(4) one representative appointed by AFSCME Council 5;
143.32(5) one representative appointed by the ombudsman for mental health and
143.33developmental disabilities;
143.34(6) one representative appointed by the Minnesota Association of Professional
143.35Employees;
143.36(7) one representative appointed by the Minnesota Hospital Association;
144.1(8) one representative appointed by the Minnesota Nurses Association;
144.2(9) one representative appointed by NAMI-MN;
144.3(10) one representative appointed by the Mental Health Association of Minnesota;
144.4(11) one representative appointed by the Minnesota Association Of Community
144.5Mental Health Programs;
144.6(12) one representative appointed by the Minnesota Dental Association;
144.7(13) three clients or client family members representing different populations
144.8receiving services from state-operated services, who are appointed by the commissioner;
144.9(14) one representative appointed by the chair of the state-operated services
144.10governing board;
144.11(15) one representative appointed by the Minnesota Disability Law Center;
144.12(16) one representative appointed by the Consumer Survivor Network;
144.13(17) one representative appointed by the Association of Residential Resources
144.14in Minnesota;
144.15(18) one representative appointed by the Minnesota Council of Child Caring
144.16Agencies;
144.17(19) one representative appointed by the Association of Minnesota Counties; and
144.18(20) one representative appointed by the Minnesota Pharmacists Association.
144.19The commissioner may appoint additional members to reflect stakeholders who
144.20are not represented above.
144.21    Subd. 4. Administration. The commissioner shall convene the first meeting of the
144.22advisory task force and shall provide administrative support and staff.
144.23    Subd. 5. Recommendations. The advisory task force must report its
144.24recommendations to the commissioner and to the legislature no later than December
144.2515, 2010.
144.26    Subd. 6. Member requirement. The commissioner shall provide per diem and
144.27travel expenses pursuant to section 256.01, subdivision 6, for task force members who
144.28are consumers or family members and whose participation on the task force is not as a
144.29paid representative of any agency, organization, or association. Notwithstanding section
144.3015.059, other task force members are not eligible for per diem or travel reimbursement.

144.31    Sec. 5. [246.128] NOTIFICATION TO LEGISLATURE REQUIRED.
144.32The commissioner shall notify the chairs and ranking minority members of
144.33the relevant legislative committees regarding the redesign, closure, or relocation of
144.34state-operated services programs. The notification must include the advice of the Chemical
144.35and Mental Health Services Transformation Advisory Task Force under section 246.125.

145.1    Sec. 6. [246.129] LEGISLATIVE APPROVAL REQUIRED.
145.2If the closure of a state-operated facility is proposed, and the department and
145.3respective bargaining units fail to arrive at a mutually agreed upon solution to transfer
145.4affected state employees to other state jobs, the closure of the facility requires legislative
145.5approval. This does not apply to state-operated enterprise services.

145.6    Sec. 7. Minnesota Statutes 2008, section 246.18, is amended by adding a subdivision
145.7to read:
145.8    Subd. 8. State-operated services account. The state-operated services account is
145.9established in the special revenue fund. Revenue generated by new state-operated services
145.10listed under this section established after July 1, 2010, that are not enterprise activities must
145.11be deposited into the state-operated services account, unless otherwise specified in law:
145.12(1) intensive residential treatment services;
145.13(2) foster care services; and
145.14(3) psychiatric extensive recovery treatment services.

145.15    Sec. 8. Minnesota Statutes 2008, section 254B.01, subdivision 2, is amended to read:
145.16    Subd. 2. American Indian. For purposes of services provided under section
145.17254B.09, subdivision 7 8 , "American Indian" means a person who is a member of an
145.18Indian tribe, and the commissioner shall use the definitions of "Indian" and "Indian tribe"
145.19and "Indian organization" provided in Public Law 93-638. For purposes of services
145.20provided under section 254B.09, subdivision 4 6, "American Indian" means a resident of
145.21federally recognized tribal lands who is recognized as an Indian person by the federally
145.22recognized tribal governing body.

145.23    Sec. 9. Minnesota Statutes 2008, section 254B.02, subdivision 1, is amended to read:
145.24    Subdivision 1. Chemical dependency treatment allocation. The chemical
145.25dependency funds appropriated for allocation treatment appropriation shall be placed in
145.26a special revenue account. The commissioner shall annually transfer funds from the
145.27chemical dependency fund to pay for operation of the drug and alcohol abuse normative
145.28evaluation system and to pay for all costs incurred by adding two positions for licensing
145.29of chemical dependency treatment and rehabilitation programs located in hospitals for
145.30which funds are not otherwise appropriated. Six percent of the remaining money must
145.31be reserved for tribal allocation under section 254B.09, subdivisions 4 and 5. The
145.32commissioner shall annually divide the money available in the chemical dependency
145.33fund that is not held in reserve by counties from a previous allocation, or allocated to the
146.1American Indian chemical dependency tribal account. Six percent of the remaining money
146.2must be reserved for the nonreservation American Indian chemical dependency allocation
146.3for treatment of American Indians by eligible vendors under section 254B.05, subdivision
146.41
. The remainder of the money must be allocated among the counties according to the
146.5following formula, using state demographer data and other data sources determined by
146.6the commissioner:
146.7    (a) For purposes of this formula, American Indians and children under age 14 are
146.8subtracted from the population of each county to determine the restricted population.
146.9    (b) The amount of chemical dependency fund expenditures for entitled persons for
146.10services not covered by prepaid plans governed by section 256B.69 in the previous year is
146.11divided by the amount of chemical dependency fund expenditures for entitled persons for
146.12all services to determine the proportion of exempt service expenditures for each county.
146.13    (c) The prepaid plan months of eligibility is multiplied by the proportion of exempt
146.14service expenditures to determine the adjusted prepaid plan months of eligibility for
146.15each county.
146.16    (d) The adjusted prepaid plan months of eligibility is added to the number of
146.17restricted population fee for service months of eligibility for the Minnesota family
146.18investment program, general assistance, and medical assistance and divided by the county
146.19restricted population to determine county per capita months of covered service eligibility.
146.20    (e) The number of adjusted prepaid plan months of eligibility for the state is added
146.21to the number of fee for service months of eligibility for the Minnesota family investment
146.22program, general assistance, and medical assistance for the state restricted population and
146.23divided by the state restricted population to determine state per capita months of covered
146.24service eligibility.
146.25    (f) The county per capita months of covered service eligibility is divided by the
146.26state per capita months of covered service eligibility to determine the county welfare
146.27caseload factor.
146.28    (g) The median married couple income for the most recent three-year period
146.29available for the state is divided by the median married couple income for the same period
146.30for each county to determine the income factor for each county.
146.31    (h) The county restricted population is multiplied by the sum of the county welfare
146.32caseload factor and the county income factor to determine the adjusted population.
146.33    (i) $15,000 shall be allocated to each county.
146.34    (j) The remaining funds shall be allocated proportional to the county adjusted
146.35population in the special revenue account must be used according to the requirements
146.36in this chapter.

147.1    Sec. 10. Minnesota Statutes 2008, section 254B.02, subdivision 5, is amended to read:
147.2    Subd. 5. Administrative adjustment. The commissioner may make payments to
147.3local agencies from money allocated under this section to support administrative activities
147.4under sections 254B.03 and 254B.04. The administrative payment must not exceed
147.5the lesser of: (1) five percent of the first $50,000, four percent of the next $50,000, and
147.6three percent of the remaining payments for services from the allocation special revenue
147.7account according to subdivision 1; or (2) the local agency administrative payment for
147.8the fiscal year ending June 30, 2009, adjusted in proportion to the statewide change in
147.9the appropriation for this chapter.

147.10    Sec. 11. Minnesota Statutes 2008, section 254B.03, subdivision 4, is amended to read:
147.11    Subd. 4. Division of costs. Except for services provided by a county under
147.12section 254B.09, subdivision 1, or services provided under section 256B.69 or 256D.03,
147.13subdivision 4
, paragraph (b), the county shall, out of local money, pay the state for
147.1415 16.14 percent of the cost of chemical dependency services, including those services
147.15provided to persons eligible for medical assistance under chapter 256B and general
147.16assistance medical care under chapter 256D. Counties may use the indigent hospitalization
147.17levy for treatment and hospital payments made under this section. Fifteen 16.14 percent
147.18of any state collections from private or third-party pay, less 15 percent of for the cost
147.19of payment and collections, must be distributed to the county that paid for a portion of
147.20the treatment under this section. If all funds allocated according to section 254B.02 are
147.21exhausted by a county and the county has met or exceeded the base level of expenditures
147.22under section 254B.02, subdivision 3, the county shall pay the state for 15 percent of the
147.23costs paid by the state under this section. The commissioner may refuse to pay state funds
147.24for services to persons not eligible under section 254B.04, subdivision 1, if the county
147.25financially responsible for the persons has exhausted its allocation.

147.26    Sec. 12. Minnesota Statutes 2008, section 254B.03, is amended by adding a
147.27subdivision to read:
147.28    Subd. 4a. Division of costs for medical assistance services. Notwithstanding
147.29subdivision 4, for chemical dependency services provided on or after October 1, 2008, and
147.30reimbursed by medical assistance, the county share is 30 percent of the nonfederal share.

147.31    Sec. 13. Minnesota Statutes 2008, section 254B.05, subdivision 4, is amended to read:
147.32    Subd. 4. Regional treatment centers. Regional treatment center chemical
147.33dependency treatment units are eligible vendors. The commissioner may expand the
148.1capacity of chemical dependency treatment units beyond the capacity funded by direct
148.2legislative appropriation to serve individuals who are referred for treatment by counties
148.3and whose treatment will be paid for with a county's allocation under section 254B.02 by
148.4funding under this chapter or other funding sources. Notwithstanding the provisions of
148.5sections 254B.03 to 254B.041, payment for any person committed at county request to
148.6a regional treatment center under chapter 253B for chemical dependency treatment and
148.7determined to be ineligible under the chemical dependency consolidated treatment fund,
148.8shall become the responsibility of the county.

148.9    Sec. 14. Minnesota Statutes 2008, section 254B.06, subdivision 2, is amended to read:
148.10    Subd. 2. Allocation of collections. The commissioner shall allocate all federal
148.11financial participation collections to the reserve fund under section 254B.02, subdivision 3
148.12a special revenue account. The commissioner shall retain 85 allocate 83.86 percent of
148.13patient payments and third-party payments to the special revenue account and allocate
148.14the collections to the treatment allocation for the county that is financially responsible
148.15for the person. Fifteen 16.14 percent of patient and third-party payments must be paid
148.16to the county financially responsible for the patient. Collections for patient payment and
148.17third-party payment for services provided under section 254B.09 shall be allocated to the
148.18allocation of the tribal unit which placed the person. Collections of federal financial
148.19participation for services provided under section 254B.09 shall be allocated to the tribal
148.20reserve account under section 254B.09, subdivision 5.

148.21    Sec. 15. Minnesota Statutes 2008, section 254B.09, subdivision 8, is amended to read:
148.22    Subd. 8. Payments to improve services to American Indians. The commissioner
148.23may set rates for chemical dependency services to American Indians according to the
148.24American Indian Health Improvement Act, Public Law 94-437, for eligible vendors.
148.25These rates shall supersede rates set in county purchase of service agreements when
148.26payments are made on behalf of clients eligible according to Public Law 94-437.

148.27    Sec. 16. [254B.13] PILOT PROJECTS; CHEMICAL HEALTH CARE.
148.28    Subdivision 1. Authorization for pilot projects. The commissioner may approve
148.29and implement pilot projects developed under the planning process required under Laws
148.302009, chapter 79, article 7, section 26, to provide alternatives to and enhance coordination
148.31of the delivery of chemical health services required under section 254B.03.
149.1    Subd. 2. Program design and implementation. (a) The commissioner and counties
149.2participating in the pilot projects shall continue to work in partnership to refine and
149.3implement the pilot projects initiated under Laws 2009, chapter 79, article 7, section 26.
149.4(b) The commissioner and counties participating in the pilot projects shall
149.5complete the planning phase by June 30, 2010, and, if approved by the commissioner for
149.6implementation, enter into agreements governing the operation of the pilot projects with
149.7implementation scheduled no earlier than July 1, 2010.
149.8    Subd. 3. Program evaluation. The commissioner shall evaluate pilot projects under
149.9this section and report the results of the evaluation to the chairs and ranking minority
149.10members of the legislative committees with jurisdiction over chemical health issues by
149.11January 15, 2013. Evaluation of the pilot projects must be based on outcome evaluation
149.12criteria negotiated with the pilot projects prior to implementation.
149.13    Subd. 4. Notice of project discontinuation. Each county's participation in the
149.14pilot project may be discontinued for any reason by the county or the commissioner of
149.15human services after 30 days' written notice to the other party. Any unspent funds held
149.16for the exiting county's pro rata share in the special revenue fund under the authority in
149.17subdivision 5, paragraph (d), shall be transferred to the consolidated chemical dependency
149.18treatment fund following discontinuation of the pilot project.
149.19    Subd. 5. Duties of commissioner. (a) Notwithstanding any other provisions in
149.20this chapter, the commissioner may authorize pilot projects to use chemical dependency
149.21treatment funds to pay for nontreatment pilot services:
149.22(1) in addition to those authorized under section 254B.03, subdivision 2, paragraph
149.23(a); and
149.24(2) by vendors in addition to those authorized under section 254B.05 when not
149.25providing chemical dependency treatment services.
149.26(b) For purposes of this section, "nontreatment pilot services" include navigator
149.27services, peer support, family engagement and support, housing support, rent subsidies,
149.28supported employment, and independent living skills.
149.29(c) State expenditures for chemical dependency services and nontreatment pilot
149.30services provided by or through the pilot projects must not be greater than the chemical
149.31dependency treatment fund expected share of forecasted expenditures in the absence of
149.32the pilot projects. The commissioner may restructure the schedule of payments between
149.33the state and participating counties under the local agency share and division of cost
149.34provisions under section 254B.03, subdivisions 3 and 4, as necessary to facilitate the
149.35operation of the pilot projects.
150.1(d) To the extent that state fiscal year expenditures within a pilot project are less
150.2than the expected share of forecasted expenditures in the absence of the pilot projects,
150.3the commissioner shall deposit the unexpended funds in a separate account within the
150.4consolidated chemical dependency treatment fund, and make these funds available for
150.5expenditure by the pilot projects the following year. To the extent that treatment and
150.6nontreatment pilot services expenditures within the pilot project exceed the amount
150.7expected in the absence of the pilot projects, the pilot project county or counties are
150.8responsible for the portion of nontreatment pilot services expenditures in excess of the
150.9otherwise expected share of forecasted expenditures.
150.10(e) The commissioner may waive administrative rule requirements that are
150.11incompatible with the implementation of the pilot project, except that any chemical
150.12dependency treatment funded under this section must continue to be provided by a
150.13licensed treatment provider.
150.14(f) The commissioner shall not approve or enter into any agreement related to pilot
150.15projects authorized under this section that puts current or future federal funding at risk.
150.16    Subd. 6. Duties of county board. The county board, or other county entity that is
150.17approved to administer a pilot project, shall:
150.18(1) administer the pilot project in a manner consistent with the objectives described
150.19in subdivision 2 and the planning process in subdivision 5;
150.20(2) ensure that no one is denied chemical dependency treatment services for which
150.21they would otherwise be eligible under section 254A.03, subdivision 3; and
150.22(3) provide the commissioner with timely and pertinent information as negotiated
150.23in agreements governing operation of the pilot projects.

150.24    Sec. 17. Minnesota Statutes 2009 Supplement, section 517.08, subdivision 1b, is
150.25amended to read:
150.26    Subd. 1b. Term of license; fee; premarital education. (a) The local registrar
150.27shall examine upon oath the parties applying for a license relative to the legality of the
150.28contemplated marriage. If one party is unable to appear in person, the party appearing
150.29may complete the absent applicant's information. The local registrar shall provide a copy
150.30of the marriage application to the party who is unable to appear, who must verify the
150.31accuracy of the party's information in a notarized statement. The marriage license must
150.32not be released until the verification statement has been received by the local registrar. If
150.33at the expiration of a five-day period, on being satisfied that there is no legal impediment
150.34to it, including the restriction contained in section 259.13, the local registrar shall issue
150.35the license, containing the full names of the parties before and after marriage, and county
151.1and state of residence, with the county seal attached, and make a record of the date of
151.2issuance. The license shall be valid for a period of six months. Except as provided in
151.3paragraph (c), the local registrar shall collect from the applicant a fee of $110 $115 for
151.4administering the oath, issuing, recording, and filing all papers required, and preparing
151.5and transmitting to the state registrar of vital statistics the reports of marriage required
151.6by this section. If the license should not be used within the period of six months due to
151.7illness or other extenuating circumstances, it may be surrendered to the local registrar for
151.8cancellation, and in that case a new license shall issue upon request of the parties of the
151.9original license without fee. A local registrar who knowingly issues or signs a marriage
151.10license in any manner other than as provided in this section shall pay to the parties
151.11aggrieved an amount not to exceed $1,000.
151.12(b) In case of emergency or extraordinary circumstances, a judge of the district court
151.13of the county in which the application is made may authorize the license to be issued at
151.14any time before expiration of the five-day period required under paragraph (a). A waiver
151.15of the five-day waiting period must be in the following form:
151.16STATE OF MINNESOTA, COUNTY OF .................... (insert county name)
151.17APPLICATION FOR WAIVER OF MARRIAGE LICENSE WAITING PERIOD:
151.18................................................................................. (legal names of the applicants)
151.19Represent and state as follows:
151.20That on ......................... (date of application) the applicants applied to the local
151.21registrar of the above-named county for a license to marry.
151.22That it is necessary that the license be issued before the expiration of five days
151.23from the date of the application by reason of the following: (insert reason for requesting
151.24waiver of waiting period)
151.25.............................................................................................................
151.26.............................................................................................................
151.27.............................................................................................................
151.28WHEREAS, the applicants request that the judge waive the required five-day
151.29waiting period and the local registrar be authorized and directed to issue the marriage
151.30license immediately.
151.31Date: .............................
151.32.......................................................................................
151.33.......................................................................................
151.34(Signatures of applicants)
151.35Acknowledged before me on this ....... day of .................... .
151.36..........................................
152.1NOTARY PUBLIC
152.2COURT ORDER AND AUTHORIZATION:
152.3STATE OF MINNESOTA, COUNTY OF .................... (insert county name)
152.4After reviewing the above application, I am satisfied that an emergency or
152.5extraordinary circumstance exists that justifies the issuance of the marriage license before
152.6the expiration of five days from the date of the application. IT IS HEREBY ORDERED
152.7that the local registrar is authorized and directed to issue the license forthwith.
152.8.....................................................
152.9................................ (judge of district court)
152.10................................ (date).
152.11(c) The marriage license fee for parties who have completed at least 12 hours of
152.12premarital education is $40. In order to qualify for the reduced license fee, the parties
152.13must submit at the time of applying for the marriage license a signed, dated, and notarized
152.14statement from the person who provided the premarital education on their letterhead
152.15confirming that it was received. The premarital education must be provided by a licensed
152.16or ordained minister or the minister's designee, a person authorized to solemnize marriages
152.17under section 517.18, or a person authorized to practice marriage and family therapy under
152.18section 148B.33. The education must include the use of a premarital inventory and the
152.19teaching of communication and conflict management skills.
152.20    (d) The statement from the person who provided the premarital education under
152.21paragraph (b) must be in the following form:
152.22    "I, .......................... (name of educator), confirm that .......................... (names of
152.23both parties) received at least 12 hours of premarital education that included the use of a
152.24premarital inventory and the teaching of communication and conflict management skills.
152.25I am a licensed or ordained minister, a person authorized to solemnize marriages under
152.26Minnesota Statutes, section 517.18, or a person licensed to practice marriage and family
152.27therapy under Minnesota Statutes, section 148B.33."
152.28    The names of the parties in the educator's statement must be identical to the legal
152.29names of the parties as they appear in the marriage license application. Notwithstanding
152.30section 138.17, the educator's statement must be retained for seven years, after which
152.31time it may be destroyed.
152.32    (e) If section 259.13 applies to the request for a marriage license, the local registrar
152.33shall grant the marriage license without the requested name change. Alternatively, the local
152.34registrar may delay the granting of the marriage license until the party with the conviction:
153.1    (1) certifies under oath that 30 days have passed since service of the notice for a
153.2name change upon the prosecuting authority and, if applicable, the attorney general and no
153.3objection has been filed under section 259.13; or
153.4    (2) provides a certified copy of the court order granting it. The parties seeking the
153.5marriage license shall have the right to choose to have the license granted without the
153.6name change or to delay its granting pending further action on the name change request.

153.7    Sec. 18. Minnesota Statutes 2008, section 517.08, subdivision 1c, as amended by Laws
153.82010, chapter 200, article 1, section 17, is amended to read:
153.9    Subd. 1c. Disposition of license fee. (a) Of the marriage license fee collected
153.10pursuant to subdivision 1b, paragraph (a), $25 must be retained by the county. The
153.11local registrar must pay $85 $90 to the commissioner of management and budget to be
153.12deposited as follows:
153.13    (1) $55 in the general fund;
153.14    (2) $3 in the state government special revenue fund to be appropriated to the
153.15commissioner of public safety for parenting time centers under section 119A.37;
153.16    (3) $2 in the special revenue fund to be appropriated to the commissioner of health
153.17for developing and implementing the MN ENABL program under section 145.9255; and
153.18    (4) $25 in the special revenue fund is appropriated to the commissioner of
153.19employment and economic development for the displaced homemaker program under
153.20section 116L.96; and
153.21    (5) $5 in the special revenue fund, which is appropriated to the Board of Regents
153.22of the University of Minnesota for the Minnesota couples on the brink project under
153.23section 137.32.
153.24    (b) Of the $40 fee under subdivision 1b, paragraph (b), $25 must be retained by the
153.25county. The local registrar must pay $15 to the commissioner of management and budget
153.26to be deposited as follows:
153.27    (1) $5 as provided in paragraph (a), clauses (2) and (3); and
153.28    (2) $10 in the special revenue fund is appropriated to the commissioner of
153.29employment and economic development for the displaced homemaker program under
153.30section 116L.96.

153.31    Sec. 19. Laws 2009, chapter 79, article 3, section 18, is amended to read:
153.32    Sec. 18. REQUIRING THE DEVELOPMENT OF COMMUNITY-BASED
153.33MENTAL HEALTH SERVICES FOR PATIENTS COMMITTED TO THE
153.34ANOKA-METRO REGIONAL TREATMENT CENTER.
154.1In consultation with community partners, the commissioner of human services
154.2The Chemical and Mental Health Services Transformation Advisory Task Force shall
154.3develop recommend an array of community-based services in the metro area to transform
154.4the current services now provided to patients at the Anoka-Metro Regional Treatment
154.5Center. The community-based services may be provided in facilities with 16 or fewer
154.6beds, and must provide the appropriate level of care for the patients being admitted to
154.7the facilities established in partnership with private and public hospital organizations,
154.8community mental health centers and other mental health community services providers,
154.9and community partnerships, and must be staffed by state employees. The planning
154.10for this transition must be completed by October 1, 2009 2010, with an initial a report
154.11detailing the transition plan, services that will be provided, including incorporating peer
154.12specialists where appropriate, the location of the services, and the number of patients
154.13that will be served, to the committee chairs of health and human services by November
154.1430, 2009, and a semiannual report on progress until the transition is completed. The
154.15commissioner of human services shall solicit interest from stakeholders and potential
154.16community partners 2010. The individuals working in employed by the community-based
154.17services facilities under this section are state employees supervised by the commissioner
154.18of human services. No layoffs shall occur as a result of restructuring under this section.
154.19Savings generated as a result of transitioning patients from the Anoka-Metro Regional
154.20Treatment Center to community-based services may be used to fund supportive housing
154.21staffed by state employees.

154.22    Sec. 20. REPORT ON HUMAN SERVICES FISCAL NOTES.
154.23The commissioner of management and budget shall issue a report to the legislature
154.24no later than November 15, 2010, making recommendations for improving the preparation
154.25and delivery of fiscal notes under Minnesota Statutes, section 3.98, relating to human
154.26services. The report shall consider: (1) the establishment of an independent fiscal
154.27note office in the human services department and (2) transferring the responsibility for
154.28preparing human services fiscal notes to the legislature. The report must include detailed
154.29information regarding the financial costs, staff resources, training, access to information,
154.30and data protection issues relative to the preparation of human services fiscal notes. The
154.31report shall describe methods and procedures used by other states to insure independence
154.32and accuracy of fiscal estimates on legislative proposals for changes in human services.

154.33    Sec. 21. PRESCRIPTION DRUG WASTE REDUCTION.
155.1The Minnesota Board of Pharmacy, in cooperation with the commissioners of
155.2human services, pollution control, health, veterans affairs, and corrections, shall study
155.3prescription drug waste reduction techniques and technologies applicable to long-term
155.4care facilities, veterans nursing homes, and correctional facilities. In conducting the
155.5study, the commissioners shall consult with the Minnesota Pharmacists Association, the
155.6University of Minnesota College of Pharmacy, University of Minnesota's Minnesota
155.7Technical Assistance Project, consumers, long-term care providers, and other interested
155.8parties. The board shall evaluate the extent to which new prescription drug waste reduction
155.9techniques and technologies can reduce the amount of prescription drugs that enter the
155.10waste stream and reduce state prescription drug costs. The techniques and technologies
155.11studied must include, but are not limited to, daily, weekly, and automated dose dispensing.
155.12The study must provide an estimate of the cost of adopting these and other techniques
155.13and technologies, and an estimate of waste reduction and state prescription drug savings
155.14that would result from adoption. The study must also evaluate methods of encouraging
155.15the adoption of effective drug waste reduction techniques and technologies. The board
155.16shall present recommendations on the adoption of new prescription drug waste reduction
155.17techniques and technologies to the legislature by December 15, 2011.

155.18    Sec. 22. VETERINARY PRACTICE AND CONTROLLED SUBSTANCE
155.19ABUSE STUDY.
155.20The Board of Pharmacy, in consultation with the Prescription Electronic Reporting
155.21Advisory Committee and the Board of Veterinary Medical Practice, shall study the issue
155.22of the diversion of controlled substances from veterinary practice and report to the chairs
155.23and ranking minority members of the senate health and human services policy and finance
155.24division and the house of representatives health care and human services policy and
155.25finance division by December 15, 2011, on recommendations to include veterinarians in
155.26the prescription electronic reporting system in Minnesota Statutes, section 152.126.

155.27    Sec. 23. DATA COLLECTION ON HEALTH DISPARITIES.
155.28    Subdivision 1. Inventory. The commissioners of health and human services shall
155.29conduct an inventory on the health-related data collected by each respective department
155.30including, but not limited to, health care programs and activities, vital statistics, disease
155.31surveillance registries and screenings, and health outcome measurements.
155.32The inventory must review the categories of data that are collected, describe the
155.33methods of collecting, organizing, and reporting data relating to race, ethnicity, country of
156.1origin, primary language, tribal enrollment status, and socioeconomic status, and specify
156.2whether the data being collected in these categories is currently required.
156.3    Subd. 2. Review. (a) Upon completion of the inventory in subdivision 1, the
156.4commissioners of health and human services shall consult with representatives of culturally
156.5based community groups, community health boards, tribal governments, hospitals, and
156.6health plan companies to review the compiled inventory and make recommendations on:
156.7(1) whether the data currently being collected is sufficient to identify and describe
156.8health disparities for particular communities or if the collection of additional types and
156.9categories of data is necessary in order to better identify health disparities and to facilitate
156.10efforts to reduce these disparities;
156.11(2) if additional types and categories of data collection is determined necessary, what
156.12additional types and categories should be collected and in what areas;
156.13(3) whether there is a need to aggregate data to make data in the categories identified
156.14in subdivision 1 more accessible to community groups, researchers, and to the legislature;
156.15and
156.16(4) other ways to improve data collection efforts in order to ensure the collection
156.17of high-quality, reliable data in clauses (1) to (3) that will ensure accurate research and
156.18the ability to create measurable program outcomes in order to facilitate public policy
156.19decisions regarding the elimination of health disparities.
156.20(b) In making recommendations, the work group shall consider national and state
156.21standardized data classification systems, as well as federal or state requirements for
156.22collection of certain data based on predetermined classification systems that may impact
156.23some data collection efforts.
156.24    Subd. 3. Report. By January 15, 2011, the commissioners of health and human
156.25services shall submit to the chairs and ranking minority members of the legislative
156.26committees and divisions with jurisdiction over health and human services the inventory
156.27compiled in subdivision 1 and the recommendations developed in subdivision 2.

156.28    Sec. 24. REPEALER.
156.29(a) Minnesota Statutes 2008, sections 254B.02, subdivisions 2, 3, and 4; and
156.30254B.09, subdivisions 4, 5, and 7, are repealed.
156.31(b) Laws 2009, chapter 79, article 7, section 26, subdivision 3, is repealed.

156.32    Sec. 25. EFFECTIVE DATE.
156.33Sections 8 to 11, 13 to 15, and 24, paragraph (a) are effective for claims paid on or
156.34after July 1, 2010.

157.1ARTICLE 20
157.2DEPARTMENT OF HEALTH

157.3    Section 1. Minnesota Statutes 2008, section 13.3806, subdivision 13, is amended to
157.4read:
157.5    Subd. 13. Traumatic injury. Data on individuals with a brain or spinal injury or
157.6who sustain major trauma that are collected by the commissioner of health are classified
157.7under section sections 144.6071 and 144.665.

157.8    Sec. 2. Minnesota Statutes 2008, section 62D.08, is amended by adding a subdivision
157.9to read:
157.10    Subd. 7. Consistent administrative expenses and investment income reporting.
157.11(a) Every health maintenance organization must directly allocate administrative expenses
157.12to specific lines of business or products when such information is available. Remaining
157.13expenses that cannot be directly allocated must be allocated based on other methods, as
157.14recommended by the Advisory Group on Administrative Expenses. Health maintenance
157.15organizations must submit this information, including administrative expenses for dental
157.16services, using the reporting template provided by the commissioner of health.
157.17(b) Every health maintenance organization must allocate investment income based
157.18on cumulative net income over time by business line or product and must submit this
157.19information, including investment income for dental services, using the reporting template
157.20provided by the commissioner of health.
157.21EFFECTIVE DATE.This section is effective January 1, 2013.

157.22    Sec. 3. [62D.31] ADVISORY GROUP ON ADMINISTRATIVE EXPENSES.
157.23    Subdivision 1. Establishment. The Advisory Group on Administrative Expenses
157.24is established to make recommendations on the development of consistent guidelines
157.25and reporting requirements, including development of a reporting template, for health
157.26maintenance organizations and county-based purchasing plans that participate in publicly
157.27funded programs.
157.28    Subd. 2. Membership. The membership of the advisory group shall be comprised
157.29of the following, who serve at the pleasure of their appointing authority:
157.30(1) the commissioner of health or the commissioner's designee;
157.31(2) the commissioner of human services or the commissioner's designee;
157.32(3) the commissioner of commerce or the commissioner's designee; and
158.1(4) representatives of health maintenance organizations and county-based purchasers
158.2appointed by the commissioner of health.
158.3    Subd. 3. Administration. The commissioner of health shall convene the first
158.4meeting of the advisory group by December 1, 2010, and shall provide administrative
158.5support and staff. The commissioner of health may contract with a consultant to provide
158.6professional assistance and expertise to the advisory group.
158.7    Subd. 4. Recommendations. The Advisory Group on Administrative Expenses
158.8must report its recommendations, including any proposed legislation necessary to
158.9implement the recommendations, to the commissioner of health and to the chairs and
158.10ranking minority members of the legislative committees and divisions with jurisdiction
158.11over health policy and finance by February 15, 2012.
158.12    Subd. 5. Expiration. This section expires after submission of the report required
158.13under subdivision 4 or June 30, 2012, whichever is sooner.

158.14    Sec. 4. Minnesota Statutes 2008, section 62Q.19, subdivision 1, is amended to read:
158.15    Subdivision 1. Designation. (a) The commissioner shall designate essential
158.16community providers. The criteria for essential community provider designation shall be
158.17the following:
158.18(1) a demonstrated ability to integrate applicable supportive and stabilizing services
158.19with medical care for uninsured persons and high-risk and special needs populations,
158.20underserved, and other special needs populations; and
158.21(2) a commitment to serve low-income and underserved populations by meeting the
158.22following requirements:
158.23(i) has nonprofit status in accordance with chapter 317A;
158.24(ii) has tax exempt status in accordance with the Internal Revenue Service Code,
158.25section 501(c)(3);
158.26(iii) charges for services on a sliding fee schedule based on current poverty income
158.27guidelines; and
158.28(iv) does not restrict access or services because of a client's financial limitation;
158.29(3) status as a local government unit as defined in section 62D.02, subdivision 11, a
158.30hospital district created or reorganized under sections 447.31 to 447.37, an Indian tribal
158.31government, an Indian health service unit, or a community health board as defined in
158.32chapter 145A;
158.33(4) a former state hospital that specializes in the treatment of cerebral palsy, spina
158.34bifida, epilepsy, closed head injuries, specialized orthopedic problems, and other disabling
158.35conditions; or
159.1(5) a sole community hospital. For these rural hospitals, the essential community
159.2provider designation applies to all health services provided, including both inpatient and
159.3outpatient services. For purposes of this section, "sole community hospital" means a
159.4rural hospital that:
159.5(i) is eligible to be classified as a sole community hospital according to Code
159.6of Federal Regulations, title 42, section 412.92, or is located in a community with a
159.7population of less than 5,000 and located more than 25 miles from a like hospital currently
159.8providing acute short-term services;
159.9(ii) has experienced net operating income losses in two of the previous three
159.10most recent consecutive hospital fiscal years for which audited financial information is
159.11available; and
159.12(iii) consists of 40 or fewer licensed beds; or
159.13(6) a birth center licensed under section 144.615.
159.14(b) Prior to designation, the commissioner shall publish the names of all applicants
159.15in the State Register. The public shall have 30 days from the date of publication to submit
159.16written comments to the commissioner on the application. No designation shall be made
159.17by the commissioner until the 30-day period has expired.
159.18(c) The commissioner may designate an eligible provider as an essential community
159.19provider for all the services offered by that provider or for specific services designated by
159.20the commissioner.
159.21(d) For the purpose of this subdivision, supportive and stabilizing services include at
159.22a minimum, transportation, child care, cultural, and linguistic services where appropriate.

159.23    Sec. 5. Minnesota Statutes 2008, section 144.05, is amended by adding a subdivision
159.24to read:
159.25    Subd. 5. Firearms data. Notwithstanding any law to the contrary, the commissioner
159.26of health is prohibited from collecting data on individuals regarding lawful firearm
159.27ownership in the state or data related to an individual's right to carry a weapon under
159.28section 624.714.

159.29    Sec. 6. Minnesota Statutes 2008, section 144.226, subdivision 3, is amended to read:
159.30    Subd. 3. Birth record surcharge. (a) In addition to any fee prescribed under
159.31subdivision 1, there shall be a nonrefundable surcharge of $3 for each certified birth or
159.32stillbirth record and for a certification that the vital record cannot be found. The local or
159.33state registrar shall forward this amount to the commissioner of management and budget
159.34for deposit into the account for the children's trust fund for the prevention of child abuse
160.1established under section 256E.22. This surcharge shall not be charged under those
160.2circumstances in which no fee for a certified birth or stillbirth record is permitted under
160.3subdivision 1, paragraph (a). Upon certification by the commissioner of management and
160.4budget that the assets in that fund exceed $20,000,000, this surcharge shall be discontinued.
160.5(b) In addition to any fee prescribed under subdivision 1, there shall be a
160.6nonrefundable surcharge of $10 for each certified birth record. The local or state registrar
160.7shall forward this amount to the commissioner of management and budget for deposit in
160.8the general fund. This surcharge shall not be charged under those circumstances in which
160.9no fee for a certified birth record is permitted under subdivision 1, paragraph (a).
160.10EFFECTIVE DATE.This section is effective July 1, 2010.

160.11    Sec. 7. Minnesota Statutes 2008, section 144.293, subdivision 4, is amended to read:
160.12    Subd. 4. Duration of consent. Except as provided in this section, a consent is
160.13valid for one year or for a lesser period specified in the consent or for a different period
160.14provided by law.

160.15    Sec. 8. Minnesota Statutes 2008, section 144.603, is amended to read:
160.16144.603 STATEWIDE TRAUMA SYSTEM CRITERIA.
160.17    Subdivision 1. Criteria established. The commissioner shall adopt criteria to
160.18ensure that severely injured people are promptly transported and treated at trauma
160.19hospitals appropriate to the severity of injury. Minimum criteria shall address emergency
160.20medical service trauma triage and transportation guidelines as approved under section
160.21144E.101, subdivision 14 , designation of hospitals as trauma hospitals, interhospital
160.22transfers, a trauma registry, and a trauma system governance structure.
160.23    Subd. 2. Basis; verification. The commissioner shall base the establishment,
160.24implementation, and modifications to the criteria under subdivision 1 on the
160.25department-published Minnesota comprehensive statewide trauma system plan. The
160.26commissioner shall seek the advice of the Trauma Advisory Council in implementing
160.27and updating the criteria, using accepted and prevailing trauma transport, treatment,
160.28and referral standards of the American College of Surgeons, the American College of
160.29Emergency Physicians, the Minnesota Emergency Medical Services Regulatory Board,
160.30the national Trauma Resources Network Center Association of America, and other widely
160.31recognized trauma experts. The commissioner shall adapt and modify the standards as
160.32appropriate to accommodate Minnesota's unique geography and the state's hospital and
161.1health professional distribution and shall verify that the criteria are met by each hospital
161.2voluntarily participating in the statewide trauma system.
161.3    Subd. 3. Rule exemption and report to legislature. In developing and adopting
161.4the criteria under this section, the commissioner of health is exempt from chapter 14,
161.5including section 14.386. By September 1, 2009, the commissioner must report to the
161.6legislature on implementation of the voluntary trauma system, including recommendations
161.7on the need for including the trauma system criteria in rule.

161.8    Sec. 9. Minnesota Statutes 2008, section 144.605, subdivision 2, is amended to read:
161.9    Subd. 2. Designation; reverification. The commissioner shall designate four six
161.10levels of trauma hospitals. A hospital that voluntarily meets the criteria for a particular
161.11level of trauma hospital shall apply to the commissioner for designation and, upon the
161.12commissioner's verifying the hospital meets the criteria, be designated a trauma hospital
161.13at the appropriate level for a three-year period. Prior to the expiration of the three-year
161.14designation, a hospital seeking to remain part of the voluntary system must apply for
161.15and successfully complete a reverification process, be awaiting the site visit for the
161.16reverification, or be awaiting the results of the site visit. The commissioner may extend a
161.17hospital's existing designation for up to 18 months on a provisional basis if the hospital has
161.18applied for reverification in a timely manner but has not yet completed the reverification
161.19process within the expiration of the three-year designation and the extension is in the
161.20best interest of trauma system patient safety. To be granted a provisional extension, the
161.21hospital must be:
161.22(1) scheduled and awaiting the site visit for reverification;
161.23(2) awaiting the results of the site visit; or
161.24(3) responding to and correcting identified deficiencies identified in the site visit.

161.25    Sec. 10. Minnesota Statutes 2008, section 144.605, subdivision 3, is amended to read:
161.26    Subd. 3. ACS verification. The commissioner shall grant the appropriate level I, II,
161.27or III trauma hospital or level I or II pediatric trauma hospital designation to a hospital that
161.28successfully completes and passes the American College of Surgeons (ACS) verification
161.29standards at the hospital's cost, submits verification documentation to the Trauma Advisory
161.30Council, and formally notifies the Trauma Advisory Council of ACS verification.

161.31    Sec. 11. Minnesota Statutes 2008, section 144.605, is amended by adding a subdivision
161.32to read:
162.1    Subd. 9. Designation process protection. Data on patients in information and
162.2reports related to the designation and redesignation of trauma hospitals pursuant to
162.3subdivisions 3 to 5 are private data on individuals, as defined in section 13.02, subdivision
162.412.

162.5    Sec. 12. [144.6071] TRAUMA REGISTRY.
162.6    Subdivision 1. Registry. The commissioner of health shall establish and maintain
162.7a central registry of persons who sustain major trauma as defined in section 144.602,
162.8subdivision 3. The registry shall collect information to facilitate the development of
162.9clinical and system quality improvement, injury prevention, treatment, and rehabilitation
162.10programs.
162.11    Subd. 2. Registry participation required. A trauma hospital must participate in
162.12the statewide trauma registry. The consent of the injured person is not required.
162.13    Subd. 3. Registry information. Trauma hospitals must electronically submit the
162.14following information to the registry:
162.15(1) demographic information of the injured person;
162.16(2) information about the date, location, and cause of the injury;
162.17(3) information about the condition of the injured person;
162.18(4) information about the treatment, comorbidities, and diagnosis of the injured
162.19person;
162.20(5) information about the outcome and disposition of the injured person; and
162.21(6) other trauma-related information required by the commissioner, if necessary to
162.22facilitate the development of clinical and system quality improvement, treatment, and
162.23rehabilitation programs.
162.24    Subd. 4. Rules. The commissioner may adopt rules to collect other information
162.25required to facilitate the development of clinical and system quality improvement, injury
162.26prevention, treatment, and rehabilitation programs. The commissioner may adopt rules at
162.27any time to implement this section and is not subject to the requirements of section 14.125.
162.28    Subd. 5. Reporting without liability. Any person or facility furnishing information
162.29required in this section shall not be subject to any action for damages or other relief,
162.30provided that the person or facility is acting in good faith.
162.31    Subd. 6. Data classification. Data on individuals collected by the commissioner
162.32of health under this section are private data on individuals, as defined in section 13.02,
162.33subdivision 12. Data not on individuals are nonpublic data as defined in section 13.02,
162.34subdivision 9. The commissioner shall provide summary registry data to public and
162.35private entities to conduct studies using data collected by the registry. The commissioner
163.1may charge a fee under section 13.03, subdivision 3, for all out-of-pocket expenses
163.2associated with the provision of data or data analysis.
163.3    Subd. 7. Report requirements. The commissioner shall use the registry to annually
163.4publish a report that includes comparative demographic and risk-adjusted epidemiological
163.5data on designated trauma hospitals. Any analyses or reports that identify providers
163.6may only be published after the provider has been provided the opportunity by the
163.7commissioner to review the underlying data and submit comments. The provider shall
163.8have 21 days to review the data for accuracy.

163.9    Sec. 13. Minnesota Statutes 2008, section 144.608, subdivision 1, is amended to read:
163.10    Subdivision 1. Trauma Advisory Council established. (a) A Trauma Advisory
163.11Council is established to advise, consult with, and make recommendations to the
163.12commissioner on the development, maintenance, and improvement of a statewide trauma
163.13system.
163.14(b) The council shall consist of the following members:
163.15(1) a trauma surgeon certified by the American College of Surgeons Board of
163.16Surgery or the American Osteopathic Board of Surgery who practices in a level I or
163.17II trauma hospital;
163.18(2) a general surgeon certified by the American College of Surgeons Board
163.19of Surgery or the American Osteopathic Board of Surgery whose practice includes
163.20trauma and who practices in a designated rural area as defined under section 144.1501,
163.21subdivision 1
, paragraph (b);
163.22(3) a neurosurgeon certified by the American Board of Neurological Surgery who
163.23practices in a level I or II trauma hospital;
163.24(4) a trauma program nurse manager or coordinator practicing in a level I or II
163.25trauma hospital;
163.26(5) an emergency physician certified by the American College Board of Emergency
163.27Physicians Medicine or the American Osteopathic Board of Emergency Medicine whose
163.28practice includes emergency room care in a level I, II, III, or IV trauma hospital;
163.29(6) an emergency room nurse manager a trauma program manager or coordinator
163.30who practices in a level III or IV trauma hospital;
163.31(7) a family practice physician certified by the American Board of Family Medicine
163.32or the American Osteopathic Board of Family Practice whose practice includes emergency
163.33room department care in a level III or IV trauma hospital located in a designated rural area
163.34as defined under section 144.1501, subdivision 1, paragraph (b);
164.1(8) a nurse practitioner, as defined under section 144.1501, subdivision 1, paragraph
164.2(h), or a physician assistant, as defined under section 144.1501, subdivision 1, paragraph
164.3(j), whose practice includes emergency room care in a level IV trauma hospital located in
164.4a designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
164.5(9) a pediatrician certified by the American Academy Board of Pediatrics or the
164.6American Osteopathic Board of Pediatrics whose practice includes emergency room
164.7department care in a level I, II, III, or IV trauma hospital;
164.8(10) an orthopedic surgeon certified by the American Board of Orthopaedic Surgery
164.9or the American Osteopathic Board of Orthopedic Surgery whose practice includes trauma
164.10and who practices in a level I, II, or III trauma hospital;
164.11(11) the state emergency medical services medical director appointed by the
164.12Emergency Medical Services Regulatory Board;
164.13(12) a hospital administrator of a level III or IV trauma hospital located in a
164.14designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
164.15(13) a rehabilitation specialist whose practice includes rehabilitation of patients
164.16with major trauma injuries or traumatic brain injuries and spinal cord injuries as defined
164.17under section 144.661;
164.18(14) an attendant or ambulance director who is an EMT, EMT-I, or EMT-P within
164.19the meaning of section 144E.001 and who actively practices with a licensed ambulance
164.20service in a primary service area located in a designated rural area as defined under section
164.21144.1501, subdivision 1 , paragraph (b); and
164.22(15) the commissioner of public safety or the commissioner's designee.
164.23(c) Council members whose appointment is dependent on practice in a level III or IV
164.24trauma hospital may be appointed to an initial term based upon their statements that the
164.25hospital intends to become a level III or IV facility by July 1, 2009.

164.26    Sec. 14. [144.615] BIRTH CENTERS.
164.27    Subdivision 1. Definitions. (a) For purposes of this section, the following definitions
164.28have the meanings given them.
164.29(b) "Birth center" means a facility licensed for the primary purpose of performing
164.30low-risk deliveries that is not a hospital or licensed as part of a hospital and where births are
164.31planned to occur away from the mother's usual residence following a low-risk pregnancy.
164.32(c) "CABC" means the Commission for the Accreditation of Birth Centers.
164.33(d) "Low-risk pregnancy" means a normal, uncomplicated prenatal course as
164.34determined by documentation of adequate prenatal care and the anticipation of a normal
165.1uncomplicated labor and birth, as defined by reasonable and generally accepted criteria
165.2adopted by professional groups for maternal, fetal, and neonatal health care.
165.3    Subd. 2. License required. (a) Beginning January 1, 2011, no birth center shall be
165.4established, operated, or maintained in the state without first obtaining a license from the
165.5commissioner of health according to this section.
165.6(b) A license issued under this section is not transferable or assignable and is subject
165.7to suspension or revocation at any time for failure to comply with this section.
165.8(c) A birth center licensed under this section shall not assert, represent, offer,
165.9provide, or imply that the center is or may render care or services other than the services it
165.10is permitted to render within the scope of the license or the accreditation issued.
165.11(d) The license must be conspicuously posted in an area where patients are admitted.
165.12    Subd. 3. Temporary license. For new birth centers planning to begin operations
165.13after January 1, 2011, the commissioner may issue a temporary license to the birth center
165.14that is valid for a period of six months from the date of issuance. The birth center must
165.15submit to the commissioner an application and applicable fee for licensure as required
165.16under subdivision 4. The application must include the information required in subdivision
165.174, clauses (1) to (3) and (5) to (7), and documentation that the birth center has submitted
165.18an application for accreditation to the CABC. Upon receipt of accreditation from the
165.19CABC, the birth center must submit to the commissioner the information required in
165.20subdivision 4, clause (4), and the applicable fee under subdivision 8. The commissioner
165.21shall issue a new license.
165.22    Subd. 4. Application. An application for a license to operate a birth center and the
165.23applicable fee under subdivision 8 must be submitted to the commissioner on a form
165.24provided by the commissioner and must contain:
165.25(1) the name of the applicant;
165.26(2) the site location of the birth center;
165.27(3) the name of the person in charge of the center;
165.28(4) documentation that the accreditation described under subdivision 6 has been
165.29issued, including the effective date and the expiration date of the accreditation, and the
165.30date of the last site visit by the CABC;
165.31(5) the number of patients the birth center is capable of serving at a given time;
165.32(6) the names and license numbers, if applicable, of the health care professionals
165.33on staff at the birth center; and
165.34(7) any other information the commissioner deems necessary.
165.35    Subd. 5. Suspension, revocation, and refusal to renew. The commissioner may
165.36refuse to grant or renew, or may suspend or revoke, a license on any of the grounds
166.1described under section 144.55, subdivision 6, paragraph (a), clause (2), (3), or (4), or
166.2upon the loss of accreditation by the CABC. The applicant or licensee is entitled to notice
166.3and a hearing as described under section 144.55, subdivision 7, and a new license may be
166.4issued after proper inspection of the birth center has been conducted.
166.5    Subd. 6. Standards for licensure. (a) To be eligible for licensure under this
166.6section, a birth center must be accredited by the CABC or must obtain accreditation
166.7within six months of the date of the application for licensure. If the birth center loses its
166.8accreditation, the birth center must immediately notify the commissioner.
166.9(b) The center must have procedures in place specifying criteria by which risk status
166.10will be established and applied to each woman at admission and during labor.
166.11(c) Upon request, the birth center shall provide the commissioner of health with any
166.12material submitted by the birth center to the CABC as part of the accreditation process,
166.13including the accreditation application, the self-evaluation report, the accreditation
166.14decision letter from the CABC, and any reports from the CABC following a site visit.
166.15    Subd. 7. Limitations of services. (a) The following limitations apply to the services
166.16performed at a birth center:
166.17(1) surgical procedures must be limited to those normally accomplished during an
166.18uncomplicated birth, including episiotomy and repair;
166.19(2) no abortions may be administered; and
166.20(3) no general or regional anesthesia may be administered.
166.21(b) Notwithstanding paragraph (a), local anesthesia may be administered at a birth
166.22center if the administration of the anesthetic is performed within the scope of practice of a
166.23health care professional.
166.24    Subd. 8. Fees. (a) The biennial license fee for a birth center is $365.
166.25(b) The temporary license fee is $365.
166.26(c) Fees shall be collected and deposited according to section 144.122.
166.27    Subd. 9. Renewal. (a) Except as provided in paragraph (b), a license issued under
166.28this section expires two years from the date of issue.
166.29(b) A temporary license issued under subdivision 3 expires six months from the date
166.30of issue, and may be renewed for one additional six-month period.
166.31(c) An application for renewal shall be submitted at least 60 days prior to expiration
166.32of the license on forms prescribed by the commissioner of health.
166.33    Subd. 10. Records. All health records maintained on each client by a birth center
166.34are subject to sections 144.292 to 144.298.
166.35    Subd. 11. Report. (a) The commissioner of health, in consultation with the
166.36commissioner of human services and representatives of the licensed birth centers,
167.1the American College of Obstetricians and Gynecologists, the American Academy
167.2of Pediatrics, the Minnesota Hospital Association, and the Minnesota Ambulance
167.3Association, shall evaluate the quality of care and outcomes for services provided in
167.4licensed birth centers, including, but not limited to, the utilization of services provided at a
167.5birth center, the outcomes of care provided to both mothers and newborns, and the numbers
167.6of transfers to other health care facilities that are required and the reasons for the transfers.
167.7The commissioner shall work with the birth centers to establish a process to gather and
167.8analyze the data within protocols that protect the confidentiality of patient identification.
167.9(b) The commissioner of health shall report the findings of the evaluation to the
167.10legislature by January 15, 2014.

167.11    Sec. 15. Minnesota Statutes 2008, section 144.651, subdivision 2, is amended to read:
167.12    Subd. 2. Definitions. For the purposes of this section, "patient" means a person
167.13who is admitted to an acute care inpatient facility for a continuous period longer than
167.1424 hours, for the purpose of diagnosis or treatment bearing on the physical or mental
167.15health of that person. For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20,
167.16"patient" also means a person who receives health care services at an outpatient surgical
167.17center or at a birth center licensed under section 144.615. "Patient" also means a minor
167.18who is admitted to a residential program as defined in section 253C.01. For purposes of
167.19subdivisions 1, 3 to 16, 18, 20 and 30, "patient" also means any person who is receiving
167.20mental health treatment on an outpatient basis or in a community support program or other
167.21community-based program. "Resident" means a person who is admitted to a nonacute care
167.22facility including extended care facilities, nursing homes, and boarding care homes for
167.23care required because of prolonged mental or physical illness or disability, recovery from
167.24injury or disease, or advancing age. For purposes of all subdivisions except subdivisions
167.2528 and 29, "resident" also means a person who is admitted to a facility licensed as a board
167.26and lodging facility under Minnesota Rules, parts 4625.0100 to 4625.2355, or a supervised
167.27living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which operates
167.28a rehabilitation program licensed under Minnesota Rules, parts 9530.4100 to 9530.4450.

167.29    Sec. 16. Minnesota Statutes 2008, section 144.9504, is amended by adding a
167.30subdivision to read:
167.31    Subd. 12. Blood lead level guidelines. (a) By January 1, 2011, the commissioner
167.32must revise clinical and case management guidelines to include recommendations
167.33for protective health actions and follow-up services when a child's blood lead level
168.1exceeds five micrograms of lead per deciliter of blood. The revised guidelines must be
168.2implemented to the extent possible using available resources.
168.3(b) In revising the clinical and case management guidelines for blood lead levels
168.4greater than five micrograms of lead per deciliter of blood under this subdivision,
168.5the commissioner of health must consult with a statewide organization representing
168.6physicians, the public health department of Minneapolis and other public health
168.7departments, one representative of the residential construction industry, and a nonprofit
168.8organization with expertise in lead abatement.

168.9    Sec. 17. Minnesota Statutes 2008, section 144A.51, subdivision 5, is amended to read:
168.10    Subd. 5. Health facility. "Health facility" means a facility or that part of a facility
168.11which is required to be licensed pursuant to sections 144.50 to 144.58, 144.615, and a
168.12facility or that part of a facility which is required to be licensed under any law of this state
168.13which provides for the licensure of nursing homes.

168.14    Sec. 18. Minnesota Statutes 2008, section 144E.37, is amended to read:
168.15144E.37 COMPREHENSIVE ADVANCED LIFE SUPPORT.
168.16The board commissioner of health shall establish a comprehensive advanced
168.17life-support educational program to train rural medical personnel, including physicians,
168.18physician assistants, nurses, and allied health care providers, in a team approach to
168.19anticipate, recognize, and treat life-threatening emergencies before serious injury or
168.20cardiac arrest occurs.
168.21EFFECTIVE DATE.This section is effective July 1, 2010.

168.22    Sec. 19. HEALTH PLAN AND COUNTY ADMINISTRATIVE COST
168.23REDUCTION; REPORTING REQUIREMENTS.
168.24(a) Minnesota health plans and county-based purchasing plans may complete an
168.25inventory of existing data collection and reporting requirements for health plans and
168.26county-based purchasing plans and submit to the commissioners of health and human
168.27services a list of data, documentation, and reports that:
168.28(1) are collected from the same health plan or county-based purchasing plan more
168.29than once;
168.30(2) are collected directly from the health plan or county-based purchasing plan but
168.31are available to the state agencies from other sources;
168.32(3) are not currently being used by state agencies; or
169.1(4) collect similar information more than once in different formats, at different
169.2times, or by more than one state agency.
169.3(b) The report to the commissioners may also identify the percentage of health
169.4plan and county-based purchasing plan administrative time and expense attributed to
169.5fulfilling reporting requirements and include recommendations regarding ways to reduce
169.6duplicative reporting requirements.
169.7(c) Upon receipt, the commissioners shall submit the inventory and recommendations
169.8to the chairs of the appropriate legislative committees, along with their comments
169.9and recommendations as to whether any action should be taken by the legislature to
169.10establish a consolidated and streamlined reporting system under which data, reports, and
169.11documentation are collected only once and only when needed for the state agencies to
169.12fulfill their duties under law and applicable regulations.

169.13    Sec. 20. VENDOR ACCREDITATION SIMPLIFICATION.
169.14The Minnesota Hospital Association must coordinate with the Minnesota
169.15Credentialing Collaborative to make recommendations by January 1, 2012, on the
169.16development of standard accreditation methods for vendor services provided within
169.17hospitals and clinics. The recommendations must be consistent with requirements of
169.18hospital credentialing organizations and applicable federal requirements.

169.19    Sec. 21. APPLICATION PROCESS FOR HEALTH INFORMATION
169.20EXCHANGE.
169.21To the extent that the commissioner of health applies for additional federal funding
169.22to support the commissioner's responsibilities of developing and maintaining state level
169.23health information exchange under section 3013 of the HITECH Act, the commissioner of
169.24health shall ensure that applications are made through an open process that provides health
169.25information exchange service providers equal opportunity to receive funding.

169.26    Sec. 22. TRANSFER.
169.27The powers and duties of the Emergency Medical Services Regulatory Board with
169.28respect to the comprehensive advanced life-support educational program under Minnesota
169.29Statutes, section 144E.37, are transferred to the commissioner of health under Minnesota
169.30Statutes, section 15.039.
169.31EFFECTIVE DATE.This section is effective July 1, 2010.

169.32    Sec. 23. REVISOR'S INSTRUCTION.
170.1The revisor of statutes shall renumber Minnesota Statutes, section 144E.37, as
170.2Minnesota Statutes, section 144.6062, and make all necessary changes in statutory
170.3cross-references in Minnesota Statutes and Minnesota Rules.
170.4EFFECTIVE DATE.This section is effective July 1, 2010.

170.5    Sec. 24. REPEALER.
170.6Minnesota Statutes 2008, section 144.607, is repealed.

170.7ARTICLE 21
170.8PUBLIC HEALTH

170.9    Section 1. Minnesota Statutes 2008, section 62J.692, subdivision 4, is amended to read:
170.10    Subd. 4. Distribution of funds. (a) Following the distribution described under
170.11paragraph (b), the commissioner shall annually distribute the available medical education
170.12funds to all qualifying applicants based on a distribution formula that reflects a summation
170.13of two factors:
170.14    (1) a public program volume factor, which is determined by the total volume of
170.15public program revenue received by each training site as a percentage of all public
170.16program revenue received by all training sites in the fund pool; and
170.17    (2) a supplemental public program volume factor, which is determined by providing
170.18a supplemental payment of 20 percent of each training site's grant to training sites whose
170.19public program revenue accounted for at least 0.98 percent of the total public program
170.20revenue received by all eligible training sites. Grants to training sites whose public
170.21program revenue accounted for less than 0.98 percent of the total public program revenue
170.22received by all eligible training sites shall be reduced by an amount equal to the total
170.23value of the supplemental payment.
170.24    Public program revenue for the distribution formula includes revenue from medical
170.25assistance, prepaid medical assistance, general assistance medical care, and prepaid
170.26general assistance medical care. Training sites that receive no public program revenue
170.27are ineligible for funds available under this subdivision. For purposes of determining
170.28training-site level grants to be distributed under paragraph (a), total statewide average
170.29costs per trainee for medical residents is based on audited clinical training costs per trainee
170.30in primary care clinical medical education programs for medical residents. Total statewide
170.31average costs per trainee for dental residents is based on audited clinical training costs
170.32per trainee in clinical medical education programs for dental students. Total statewide
171.1average costs per trainee for pharmacy residents is based on audited clinical training costs
171.2per trainee in clinical medical education programs for pharmacy students.
171.3    (b) $5,350,000 of the available medical education funds shall be distributed as
171.4follows:
171.5    (1) $1,475,000 to the University of Minnesota Medical Center-Fairview;
171.6    (2) $2,075,000 to the University of Minnesota School of Dentistry; and
171.7    (3) $1,800,000 to the Academic Health Center. $150,000 of the funds distributed to
171.8the Academic Health Center under this paragraph shall be used for a program to assist
171.9internationally trained physicians who are legal residents and who commit to serving
171.10underserved Minnesota communities in a health professional shortage area to successfully
171.11compete for family medicine residency programs at the University of Minnesota.
171.12    (c) Funds distributed shall not be used to displace current funding appropriations
171.13from federal or state sources.
171.14    (d) Funds shall be distributed to the sponsoring institutions indicating the amount
171.15to be distributed to each of the sponsor's clinical medical education programs based on
171.16the criteria in this subdivision and in accordance with the commissioner's approval letter.
171.17Each clinical medical education program must distribute funds allocated under paragraph
171.18(a) to the training sites as specified in the commissioner's approval letter. Sponsoring
171.19institutions, which are accredited through an organization recognized by the Department
171.20of Education or the Centers for Medicare and Medicaid Services, may contract directly
171.21with training sites to provide clinical training. To ensure the quality of clinical training,
171.22those accredited sponsoring institutions must:
171.23    (1) develop contracts specifying the terms, expectations, and outcomes of the clinical
171.24training conducted at sites; and
171.25    (2) take necessary action if the contract requirements are not met. Action may
171.26include the withholding of payments under this section or the removal of students from
171.27the site.
171.28    (e) Any funds not distributed in accordance with the commissioner's approval letter
171.29must be returned to the medical education and research fund within 30 days of receiving
171.30notice from the commissioner. The commissioner shall distribute returned funds to the
171.31appropriate training sites in accordance with the commissioner's approval letter.
171.32    (f) A maximum of $150,000 of the funds dedicated to the commissioner under
171.33section 297F.10, subdivision 1, clause (2), may be used by the commissioner for
171.34administrative expenses associated with implementing this section.

172.1    Sec. 2. Minnesota Statutes 2009 Supplement, section 157.16, subdivision 3, is
172.2amended to read:
172.3    Subd. 3. Establishment fees; definitions. (a) The following fees are required
172.4for food and beverage service establishments, youth camps, hotels, motels, lodging
172.5establishments, public pools, and resorts licensed under this chapter. Food and beverage
172.6service establishments must pay the highest applicable fee under paragraph (d), clause
172.7(1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable
172.8fee under paragraph (d), clause (6) or (7). The license fee for new operators previously
172.9licensed under this chapter for the same calendar year is one-half of the appropriate annual
172.10license fee, plus any penalty that may be required. The license fee for operators opening
172.11on or after October 1 is one-half of the appropriate annual license fee, plus any penalty
172.12that may be required.
172.13    (b) All food and beverage service establishments, except special event food stands,
172.14and all hotels, motels, lodging establishments, public pools, and resorts shall pay an
172.15annual base fee of $150.
172.16    (c) A special event food stand shall pay a flat fee of $50 annually. "Special event
172.17food stand" means a fee category where food is prepared or served in conjunction with
172.18celebrations, county fairs, or special events from a special event food stand as defined
172.19in section 157.15.
172.20    (d) In addition to the base fee in paragraph (b), each food and beverage service
172.21establishment, other than a special event food stand, and each hotel, motel, lodging
172.22establishment, public pool, and resort shall pay an additional annual fee for each fee
172.23category, additional food service, or required additional inspection specified in this
172.24paragraph:
172.25    (1) Limited food menu selection, $60. "Limited food menu selection" means a fee
172.26category that provides one or more of the following:
172.27    (i) prepackaged food that receives heat treatment and is served in the package;
172.28    (ii) frozen pizza that is heated and served;
172.29    (iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;
172.30    (iv) soft drinks, coffee, or nonalcoholic beverages; or
172.31    (v) cleaning for eating, drinking, or cooking utensils, when the only food served
172.32is prepared off site.
172.33    (2) Small establishment, including boarding establishments, $120. "Small
172.34establishment" means a fee category that has no salad bar and meets one or more of
172.35the following:
173.1    (i) possesses food service equipment that consists of no more than a deep fat fryer, a
173.2grill, two hot holding containers, and one or more microwave ovens;
173.3    (ii) serves dipped ice cream or soft serve frozen desserts;
173.4    (iii) serves breakfast in an owner-occupied bed and breakfast establishment;
173.5    (iv) is a boarding establishment; or
173.6    (v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum
173.7patron seating capacity of not more than 50.
173.8    (3) Medium establishment, $310. "Medium establishment" means a fee category
173.9that meets one or more of the following:
173.10    (i) possesses food service equipment that includes a range, oven, steam table, salad
173.11bar, or salad preparation area;
173.12    (ii) possesses food service equipment that includes more than one deep fat fryer,
173.13one grill, or two hot holding containers; or
173.14    (iii) is an establishment where food is prepared at one location and served at one or
173.15more separate locations.
173.16    Establishments meeting criteria in clause (2), item (v), are not included in this fee
173.17category.
173.18    (4) Large establishment, $540. "Large establishment" means either:
173.19    (i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a
173.20medium establishment, (B) seats more than 175 people, and (C) offers the full menu
173.21selection an average of five or more days a week during the weeks of operation; or
173.22    (ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium
173.23establishment, and (B) prepares and serves 500 or more meals per day.
173.24    (5) Other food and beverage service, including food carts, mobile food units,
173.25seasonal temporary food stands, and seasonal permanent food stands, $60.
173.26    (6) Beer or wine table service, $60. "Beer or wine table service" means a fee
173.27category where the only alcoholic beverage service is beer or wine, served to customers
173.28seated at tables.
173.29    (7) Alcoholic beverage service, other than beer or wine table service, $165.
173.30    "Alcohol beverage service, other than beer or wine table service" means a fee
173.31category where alcoholic mixed drinks are served or where beer or wine are served from
173.32a bar.
173.33    (8) Lodging per sleeping accommodation unit, $10, including hotels, motels,
173.34lodging establishments, and resorts, up to a maximum of $1,000. "Lodging per sleeping
173.35accommodation unit" means a fee category including the number of guest rooms, cottages,
174.1or other rental units of a hotel, motel, lodging establishment, or resort; or the number of
174.2beds in a dormitory.
174.3    (9) First public pool, $325; each additional public pool, $175. "Public pool" means a
174.4fee category that has the meaning given in section 144.1222, subdivision 4.
174.5    (10) First spa, $175; each additional spa, $100. "Spa pool" means a fee category that
174.6has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.
174.7    (11) Private sewer or water, $60. "Individual private water" means a fee category
174.8with a water supply other than a community public water supply as defined in Minnesota
174.9Rules, chapter 4720. "Individual private sewer" means a fee category with an individual
174.10sewage treatment system which uses subsurface treatment and disposal.
174.11    (12) Additional food service, $150. "Additional food service" means a location at
174.12a food service establishment, other than the primary food preparation and service area,
174.13used to prepare or serve food to the public.
174.14    (13) Additional inspection fee, $360. "Additional inspection fee" means a fee to
174.15conduct the second inspection each year for elementary and secondary education facility
174.16school lunch programs when required by the Richard B. Russell National School Lunch
174.17Act.
174.18    (e) A fee for review of construction plans must accompany the initial license
174.19application for restaurants, hotels, motels, lodging establishments, resorts, seasonal food
174.20stands, and mobile food units. The fee for this construction plan review is as follows:
174.21
Service Area
Type
Fee
174.22
Food
limited food menu
$275
174.23
small establishment
$400
174.24
medium establishment
$450
174.25
large food establishment
$500
174.26
additional food service
$150
174.27
Transient food service
food cart
$250
174.28
seasonal permanent food stand
$250
174.29
seasonal temporary food stand
$250
174.30
mobile food unit
$350
174.31
Alcohol
beer or wine table service
$150
174.32
alcohol service from bar
$250
174.33
Lodging
less than 25 rooms
$375
174.34
25 to less than 100 rooms
$400
174.35
100 rooms or more
$500
174.36
less than five cabins
$350
174.37
five to less than ten cabins
$400
174.38
ten cabins or more
$450
175.1    (f) When existing food and beverage service establishments, hotels, motels, lodging
175.2establishments, resorts, seasonal food stands, and mobile food units are extensively
175.3remodeled, a fee must be submitted with the remodeling plans. The fee for this
175.4construction plan review is as follows:
175.5
Service Area
Type
Fee
175.6
Food
limited food menu
$250
175.7
small establishment
$300
175.8
medium establishment
$350
175.9
large food establishment
$400
175.10
additional food service
$150
175.11
Transient food service
food cart
$250
175.12
seasonal permanent food stand
$250
175.13
seasonal temporary food stand
$250
175.14
mobile food unit
$250
175.15
Alcohol
beer or wine table service
$150
175.16
alcohol service from bar
$250
175.17
Lodging
less than 25 rooms
$250
175.18
25 to less than 100 rooms
$300
175.19
100 rooms or more
$450
175.20
less than five cabins
$250
175.21
five to less than ten cabins
$350
175.22
ten cabins or more
$400
175.23    (g) Special event food stands are not required to submit construction or remodeling
175.24plans for review.
175.25(h) Youth camps shall pay an annual single fee for food and lodging as follows:
175.26(1) camps with up to 99 campers, $325;
175.27(2) camps with 100 to 199 campers, $550; and
175.28(3) camps with 200 or more campers, $750.
175.29(i) A youth camp which pays fees under paragraph (d) is not required to pay fees
175.30under paragraph (h).

175.31    Sec. 3. Minnesota Statutes 2009 Supplement, section 327.15, subdivision 3, is
175.32amended to read:
175.33    Subd. 3. Fees, manufactured home parks and recreational camping areas. (a)
175.34The following fees are required for manufactured home parks and recreational camping
175.35areas licensed under this chapter. Recreational camping areas and manufactured home
175.36parks shall pay the highest applicable base fee under paragraph (c) (b). The license fee
175.37for new operators of a manufactured home park or recreational camping area previously
175.38licensed under this chapter for the same calendar year is one-half of the appropriate annual
176.1license fee, plus any penalty that may be required. The license fee for operators opening
176.2on or after October 1 is one-half of the appropriate annual license fee, plus any penalty
176.3that may be required.
176.4(b) All manufactured home parks and recreational camping areas shall pay the
176.5following annual base fee:
176.6(1) a manufactured home park, $150; and
176.7(2) a recreational camping area with:
176.8(i) 24 or less sites, $50;
176.9(ii) 25 to 99 sites, $212; and
176.10(iii) 100 or more sites, $300.
176.11In addition to the base fee, manufactured home parks and recreational camping areas shall
176.12pay $4 for each licensed site. This paragraph does not apply to special event recreational
176.13camping areas or to. Operators of a manufactured home park or a recreational camping
176.14area also licensed under section 157.16 for the same location shall pay only one base fee,
176.15whichever is the highest of the base fees found in this section or section 157.16.
176.16(c) In addition to the fee in paragraph (b), each manufactured home park or
176.17recreational camping area shall pay an additional annual fee for each fee category
176.18specified in this paragraph:
176.19(1) Manufactured home parks and recreational camping areas with public swimming
176.20pools and spas shall pay the appropriate fees specified in section 157.16.
176.21(2) Individual private sewer or water, $60. "Individual private water" means a fee
176.22category with a water supply other than a community public water supply as defined in
176.23Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with a
176.24subsurface sewage treatment system which uses subsurface treatment and disposal.
176.25(d) The following fees must accompany a plan review application for initial
176.26construction of a manufactured home park or recreational camping area:
176.27(1) for initial construction of less than 25 sites, $375;
176.28(2) for initial construction of 25 to 99 sites, $400; and
176.29(3) for initial construction of 100 or more sites, $500.
176.30(e) The following fees must accompany a plan review application when an existing
176.31manufactured home park or recreational camping area is expanded:
176.32(1) for expansion of less than 25 sites, $250;
176.33(2) for expansion of 25 to 99 sites, $300; and
176.34(3) for expansion of 100 or more sites, $450.

176.35    Sec. 4. FOOD SUPPORT FOR CHILDREN WITH SEVERE ALLERGIES.
177.1The commissioner of human services must seek a federal waiver from the federal
177.2Department of Agriculture, Food and Nutrition Service, for the supplemental nutrition
177.3assistance program, to increase the income eligibility requirements to 375 percent of the
177.4federal poverty guidelines, in order to cover nutritional food products required to treat
177.5or manage severe food allergies, including allergies to wheat and gluten, for infants and
177.6children who have been diagnosed with life-threatening severe food allergies.

177.7ARTICLE 22
177.8HEALTH CARE REFORM

177.9    Section 1. [62E.20] RELATIONSHIP TO TEMPORARY FEDERAL HIGH-RISK
177.10POOL.
177.11    Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in
177.12this subdivision have the meanings given.
177.13(b) "Association" means the Minnesota Comprehensive Health Association.
177.14(c) "Federal law" means Title I, subtitle B, section 1101, of the federal Patient
177.15Protection and Affordable Care Act, Public Law 111-148, including any federal
177.16regulations adopted under it.
177.17(d) "Federal qualified high-risk pool" means an arrangement established by the
177.18federal secretary of health and human services that meets the requirements of the federal
177.19law.
177.20    Subd. 2. Timing of this section. This section applies beginning the date the
177.21temporary federal qualified high-risk health pool created under the federal law begins
177.22to provide coverage in this state.
177.23    Subd. 3. Maintenance of effort. The assessments made by the comprehensive
177.24health association on its member insurers must comply with the maintenance of effort
177.25requirement contained in paragraph (b), clause (3), of the federal law, to the extent that the
177.26requirement applies to assessments made by the association.
177.27    Subd. 4. Coordination with state health care programs. The commissioner
177.28of commerce and the Minnesota Comprehensive Health Association shall ensure that
177.29applicants for coverage through the federal qualified high-risk pool, or through the
177.30Minnesota Comprehensive Health Association, are referred to the medical assistance or
177.31MinnesotaCare programs if they are determined to be potentially eligible for coverage
177.32through those programs. The commissioner of human services shall ensure that applicants
177.33for coverage under medical assistance or MinnesotaCare who are determined not to be
177.34eligible for those programs are provided information about coverage through the federal
177.35qualified high-risk pool and the Minnesota Comprehensive Health Association.
178.1    Subd. 5. Federal funding. Minnesota shall coordinate its efforts with the United
178.2States Department of Health and Human Services (HHS) to obtain the federal funds to
178.3implement in Minnesota the federal qualified high-risk pool.

178.4    Sec. 2. [256B.0756] COORDINATED CARE THROUGH A HEALTH HOME.
178.5    Subdivision 1. Provision of coverage. (a) The commissioner shall provide
178.6medical assistance coverage of health home services for eligible individuals with chronic
178.7conditions who select a designated provider, a team of health care professionals, or a
178.8health team as the individual's health home.
178.9(b) The commissioner shall implement this section in compliance with the
178.10requirements of the state option to provide health homes for enrollees with chronic
178.11conditions, as provided under the Patient Protection and Affordable Care Act, Public
178.12Law 111-148, sections 2703 and 3502. Terms used in this section have the meaning
178.13provided in that act.
178.14    Subd. 2. Eligible individual. An individual is eligible for health home services
178.15under this section if the individual is eligible for medical assistance under this chapter
178.16and has at least:
178.17(1) two chronic conditions;
178.18(2) one chronic condition and is at risk of having a second chronic condition; or
178.19(3) one serious and persistent mental health condition.
178.20    Subd. 3. Health home services. (a) Health home services means comprehensive and
178.21timely high-quality services that are provided by a health home. These services include:
178.22(1) comprehensive care management;
178.23(2) care coordination and health promotion;
178.24(3) comprehensive transitional care, including appropriate follow-up, from inpatient
178.25to other settings;
178.26(4) patient and family support, including authorized representatives;
178.27(5) referral to community and social support services, if relevant; and
178.28(6) use of health information technology to link services, as feasible and appropriate.
178.29(b) The commissioner shall maximize the number and type of services
178.30included in this subdivision to the extent permissible under federal law, including
178.31physician, outpatient, mental health treatment, and rehabilitation services necessary for
178.32comprehensive transitional care following hospitalization.
178.33    Subd. 4. Health teams. The commissioner shall establish health teams to support
178.34the patient-centered health home and provide the services described in subdivision 3 to
178.35individuals eligible under subdivision 2. The commissioner shall apply for grants or
179.1contracts as provided under section 3502 of the Patient Protection and Affordable Care
179.2Act to establish health teams and provide capitated payments to primary care providers.
179.3For purposes of this section, "health teams" means community-based, interdisciplinary,
179.4inter-professional teams of health care providers that support primary care practices.
179.5These providers may include medical specialists, nurses, advanced practice registered
179.6nurses, pharmacists, nutritionists, social workers, behavioral and mental health providers,
179.7doctors of chiropractic, licensed complementary and alternative medicine practitioners,
179.8and physician assistants.
179.9    Subd. 5. Payments. The commissioner shall make payments to each health home
179.10and each health team for the provision of health home services to each eligible individual
179.11with chronic conditions that selects the health home as a provider.
179.12    Subd. 6. Coordination. The commissioner, to the extent feasible, shall ensure that
179.13the requirements and payment methods for health homes and health teams developed
179.14under this section are consistent with the requirements and payment methods for health
179.15care homes established under sections 256B.0751 and 256B.0753. The commissioner may
179.16modify requirements and payment methods under sections 256B.0751 and 256B.0753 in
179.17order to be consistent with federal health home requirements and payment methods.
179.18    Subd. 7. State plan amendment. The commissioner shall submit a state plan
179.19amendment to implement this section to the federal Centers for Medicare and Medicaid
179.20Services by January 1, 2011.
179.21EFFECTIVE DATE.This section is effective January 1, 2011, or upon federal
179.22approval, whichever is later.

179.23    Sec. 3. FEDERAL HEALTH CARE REFORM DEMONSTRATION PROJECTS
179.24AND GRANTS.
179.25(a) The commissioner of human services shall seek to participate in the following
179.26demonstration projects, or apply for the following grants, as described in the federal
179.27Patient Protection and Affordable Care Act, Public Law 111-148:
179.28(1) the demonstration project to evaluate integrated care around a hospitalization,
179.29Public Law 111-148, section 2704;
179.30(2) the Medicaid global payment system demonstration project, Public Law 111-148,
179.31section 2705, including a demonstration project for the specific population of childless
179.32adults under 75 percent of federal poverty guidelines that were to be served by the general
179.33assistance medical care program;
179.34(3) the pediatric accountable care organization demonstration project, Public Law
179.35111-148, section 2706;
180.1(4) the Medicaid emergency psychiatric demonstration project, Public Law 111-148,
180.2section 2707; and
180.3(5) grants to provide incentives for prevention of chronic diseases in Medicaid,
180.4Public Law 111-148, section 4108.
180.5(b) The commissioner of human services shall report to the chairs and ranking
180.6minority members of the house of representatives and senate committees or divisions with
180.7jurisdiction over health care policy and finance on the status of the demonstration project
180.8and grant applications. If the state is accepted as a demonstration project participant, or is
180.9awarded a grant, the commissioner shall notify the chairs and ranking minority members
180.10of those committees or divisions of any legislative changes necessary to implement the
180.11demonstration projects or grants.
180.12(c) The commissioner of health shall apply for federal grants available under the
180.13federal Patient Protection and Affordable Care Act, Public Law 111-148, for purposes
180.14of funding wellness and prevention, and health improvement programs. To the extent
180.15possible under federal law, the commissioner of health must utilize the state health
180.16improvement program, established under Minnesota Statutes, section 145.986, to
180.17implement grant programs related to wellness and prevention, and health improvement,
180.18for which the state receives funding under the federal Patient Protection and Affordable
180.19Care Act, Public Law 111-148.

180.20    Sec. 4. HEALTH CARE REFORM TASK FORCE.
180.21    Subdivision 1. Task force. (a) The governor shall convene a Health Care
180.22Reform Task Force to advise and assist the governor and the legislature regarding state
180.23implementation of federal health care reform legislation. For purposes of this section,
180.24"federal health care reform legislation" means the Patient Protection and Affordable Care
180.25Act, Public Law 111-148, and the health care reform provisions in the Health Care and
180.26Education Reconciliation Act of 2010, Public Law 111-152. The task force shall consist of:
180.27(1) two legislators from the house of representatives appointed by the speaker and
180.28two legislators from the senate appointed by the Subcommittee on Committees of the
180.29Committee on Rules and Administration;
180.30    (2) two representatives appointed by the governor to represent the governor and
180.31state agencies;
180.32    (3) three persons appointed by the governor who have demonstrated leadership in
180.33health care organizations, health plan companies, or health care trade or professional
180.34associations;
181.1    (4) three persons appointed by the governor who have demonstrated leadership in
181.2employer and group purchaser activities related to health system improvement of whom
181.3two must be from a labor organization and one from the business community; and
181.4    (5) five persons appointed by the governor who have demonstrated expertise in the
181.5areas of health care financing, access, and quality.
181.6    The governor is exempt from the requirements of the open appointments process
181.7for purposes of appointing task force members. Members shall be appointed for one-year
181.8terms and may be reappointed.
181.9    (b) The Department of Health, Department of Human Services, and Department of
181.10Commerce shall provide staff support to the task force. The task force may accept outside
181.11resources to help support its efforts.
181.12    (c) Task force members must be appointed by July 1, 2010. The task force must hold
181.13its first meeting by July 15, 2010.
181.14    Subd. 2. Duties. (a) By December 15, 2010, the task force shall develop and
181.15present to the legislature and the governor a preliminary report and recommendations on
181.16state implementation of federal health care reform legislation. The report must include
181.17recommendations for state law and program changes necessary to comply with the federal
181.18health care reform legislation, and also recommendations for implementing provisions of
181.19the federal legislation that are optional for states. In developing recommendations, the task
181.20force shall consider the extent to which an approach maximizes federal funding to the state.
181.21(b) The task force, in consultation with the governor and the legislature, shall also
181.22establish timelines and criteria for future reports on state implementation of the federal
181.23health care reform legislation.

181.24    Sec. 5. AMERICAN HEALTH BENEFIT EXCHANGE; PLANNING
181.25PROVISIONS.
181.26    Subdivision 1. Federal planning grants. The commissioners of commerce, health,
181.27and human services shall jointly or separately apply to the federal secretary of health and
181.28human services for one or more planning grants, including renewal grants, authorized
181.29under section 1311 of the Patient Protection and Affordable Care Act, Public Law
181.30111-148, including any future amendments of that provision, relating to state creation
181.31of American Health Benefit Exchanges.
181.32    Subd. 2. Consideration of early creation and operation of exchange. (a) The
181.33commissioners referenced in subdivision 1 shall analyze the advantages and disadvantages
181.34to the state of planning to have a state health insurance exchange, similar to an American
182.1Health Benefit Exchange referenced in subdivision 1, begin prior to the federal deadline
182.2of January 1, 2014.
182.3(b) The commissioners shall provide a written report to the legislature on the results
182.4of the analysis required under paragraph (a) no later than December 15, 2010. The written
182.5report must comply with Minnesota Statutes, sections 3.195 and 3.197.

182.6ARTICLE 23
182.7HUMAN SERVICES FORECAST ADJUSTMENTS

182.8
Section 1. SUMMARY OF APPROPRIATIONS.
182.9The amounts shown in this section summarize direct appropriations, by fund, made
182.10in this article.
182.11
2010
2011
Total
182.12
General
$
(109,876,000)
$
(28,344,000)
$
(138,220,000)
182.13
Health Care Access
$
99,654,000
$
276,500,000
$
376,154,000
182.14
Federal TANF
$
(9,830,000)
$
15,133,000
$
5,303,000
182.15
Total
$
(20,052,000)
$
263,289,000
$
243,237,000

182.16
Sec. 2. DEPARTMENT OF HUMAN SERVICES APPROPRIATION.
182.17    The sums shown in the columns marked "Appropriations" are added to or, if shown
182.18in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13,
182.19as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes
182.20specified in this article. The appropriations are from the general fund, or another named
182.21fund, and are available for the fiscal years indicated for each purpose. The figures "2010"
182.22and "2011" used in this article mean that the addition to or subtraction from appropriations
182.23listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011,
182.24respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011.
182.25"The biennium" is fiscal years 2010 and 2011. Supplemental appropriations and reductions
182.26for the fiscal year ending June 30, 2010, are effective the day following final enactment
182.27unless a different effective date is explicit.
182.28
APPROPRIATIONS
182.29
Available for the Year
182.30
Ending June 30
182.31
2010
2011

182.32
182.33
Sec. 3. DEPARTMENT OF HUMAN
SERVICES
182.34
Subdivision 1.Total Appropriation
$
(20,052,000)
$
263,289,000
183.1
Appropriations by Fund
183.2
2010
2011
183.3
General
(109,876,000)
(28,344,000)
183.4
Health Care Access