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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


  

                         Laws of Minnesota 1983 

                        CHAPTER 312--S.F.No. 1234
           An act relating to the organization and operation of 
          state government; appropriating money for welfare, 
          corrections, health, and other purposes with certain 
          conditions; providing appropriations for the 
          departments of public welfare, economic security, 
          corrections, health, sentencing guidelines commission, 
          corrections ombudsman, and health related boards; 
          providing an entitlement to certain child care 
          services; increasing marriage license and dissolution 
          fees; providing for distribution of federal maternal 
          and child health block grant money; requiring cost 
          increase limits and other cost containment measures in 
          medical care programs; amending eligibility standards; 
          changing general assistance to allow employment 
          through grant diversion and work registration 
          requirements, and federal benefit application 
          incentives; providing for job training for certain 
          persons; allowing for certain changes in the services 
          for the mentally retarded; amending Minnesota Statutes 
          1982, sections 13.46, subdivision 2; 15.61; 129A.03; 
          144.653, subdivision 2; 144A.04, subdivision 5; 
          144A.10, subdivision 2; 145.881; 145.882; 145.921, 
          subdivision 1; 245.62; 245.66; 245.83; 245.84, 
          subdivisions 1, 2, and 5; 245.85; 245.86; 245.87; 
          246.57, by adding a subdivision; 251.011, subdivision 
          6; 252.24, subdivision 1; 252.28; 256.01, subdivision 
          2; 256.045, subdivision 3; 256.82, by adding a 
          subdivision; 256.966, subdivision 1; 256.967; 256.968; 
          256B.02, subdivision 8; 256B.04, subdivision 14, and 
          by adding a subdivision; 256B.041, subdivisions 2 and 
          5; 256B.06, subdivision 1; 256B.061; 256B.064, 
          subdivision 1a; 256B.07; 256B.14, subdivision 2; 
          256B.17, subdivision 4, and by adding subdivisions; 
          256B.19, by adding a subdivision; 256B.27, 
          subdivisions 3 and 4; 256D.01, subdivision 1; 256D.02, 
          subdivision 4, and by adding a subdivision; 256D.03, 
          subdivisions 3, 4, and by adding subdivisions; 
          256D.05, subdivision 1a; 256D.06, subdivision 5; 
          256D.09, subdivision 2, and by adding a subdivision; 
          256E.06, subdivision 2, and by adding a subdivision; 
          260.191, subdivision 2; 260.242, subdivision 2; 
          261.23; 268.12, subdivision 12; 357.021, subdivisions 
          2 and 2a; 401.14, by adding a subdivision; 401.15, 
          subdivision 1; 517.08, subdivisions 1b and 1c; Laws 
          1982, chapter 614, section 13; proposing new law coded 
          in Minnesota Statutes, chapters 145; 252; 256; 256B; 
          256D; and 268; repealing Minnesota Statutes 1982, 
          sections 256D.02, subdivision 14; 256D.05, subdivision 
          1a; 256D.06, subdivision 1a; Laws 1981, chapter 323, 
          section 4; chapter 360, article II, section 54, as 
          amended; and the section proposed to be coded as 
          section 471.365 contained in a bill styled as H.F. No. 
          1290 during the 1983 regular legislative session. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                               ARTICLE 1 
    Section 1.  [WELFARE, CORRECTIONS, HEALTH; APPROPRIATIONS.] 
    The sums set forth in the columns designated 
"APPROPRIATIONS" are appropriated from the general fund, or any 
other fund designated, to the agencies and for the purposes 
specified in the following sections of this act, to be available 
for the fiscal years indicated for each purpose.  The figures 
"1984," and "1985," wherever used in this act, mean that the 
appropriation or appropriations listed thereunder shall be 
available for the year ending June 30, 1984, or June 30, 1985, 
respectively.  
                      SUMMARY BY FUND 
                      1984           1985          TOTAL   
General         $958,190,700   $939,228,200   $1,897,418,900
Trunk Highway   $    386,000   $    389,700   $      775,700
Total           $958,576,700   $939,617,900   $1,898,194,600
                                           APPROPRIATIONS
                                       Available for the Year
                                          Ending June 30,
                                          1984        1985
     Sec. 2.  COMMISSIONER OF
PUBLIC WELFARE                      
   Subdivision 1.  Total Department 
Appropriation                         $738,072,000  $807,888,100
 The amounts that may be expended from 
this appropriation for each program and 
activity are more specifically 
described in the following subdivisions 
of this section.  
 Positions and administrative money may 
be transferred within the department of 
public welfare as deemed necessary by 
the commissioner, upon the advance 
approval of the commissioner of finance.
     Subd. 2.  Welfare Management         1,334,000    1,342,800 
 Estimated federal money to be deposited 
in the general fund that is earned by 
the various accounts of the department 
of public welfare is detailed on the 
worksheets of the conferees of the 
senate and house of representatives, a 
true copy of which is on file in the 
office of the commissioner of finance. 
If federal money anticipated is less 
than shown on the official worksheets, 
the commissioner of finance shall 
reduce the amount available from the 
specific appropriation by a like 
amount. The reductions shall be noted 
in the budget document submitted to the 
74th legislature in addition to an 
estimate of similar federal money 
anticipated for the 1985-1987 biennium. 
     Subd. 3.  Support Services           9,537,500    9,749,700 
 The provisions of section 256D.22 are 
suspended for the biennium ending June 
30, 1985. 
     Subd. 4.  Social Services           67,233,400   70,341,300 
 The amounts that may be expended from 
this appropriation for each activity 
are as follows:  
Community Social Services Subsidies 
   $54,862,200    $57,775,100
 Effective January 1, 1984, the 
commissioner of public welfare shall 
include in the community social service 
subsidies, the money authorized by this 
appropriation for purposes of providing 
semi-independent living services 
pursuant to 12 MCAR 2.023.  In calendar 
years 1984 and 1985, the county board 
shall not reduce the funding provided 
in calendar year 1983 for community 
services for the mentally retarded as 
authorized in the official worksheets 
of the house and senate conference 
committee for Laws 1981, chapter 360, 
except the amount of money for mentally 
retarded persons eligible for medical 
assistance.  
 Notwithstanding the provisions of 
chapter 256E, a county board may 
delegate to a county welfare board 
established pursuant to Minnesota 
Statutes, chapter 393, authority to 
provide or approve contracts for the 
purchase of the kinds of community 
social services that were provided or 
contracted for by the county welfare 
boards prior to the enactment of Laws 
1979, chapter 324.  Designation of the 
method for providing citizen 
participation in the planning process, 
final approval of the community social 
services plan and the distribution of 
community social services money shall 
be the responsibility of the county 
board. 
 The payments for the community social 
services subsidy for each county shall 
be based upon the formula in effect for 
calendar year 1983.  In addition the 
amount available for each county shall 
be increased by five percent on January 
1, 1984 for calendar year 1984 and by 
five percent on January 1, 1985 for the 
first six months of 1985.  No county 
shall receive less than the amount 
received in 1981; however, this 
appropriation shall be prorated if the 
amount is insufficient. 
Aging, Blind, and Deaf Services 
   $  6,517,000   $  6,546,500 
Social Services Support
   $  5,854,200   $  6,019,700
 This appropriation includes the sum of 
$30,000 in fiscal year 1984 for the 
purpose of providing a grant-in-aid to 
The Bridge for Runaway Youth, Inc. for 
expenses related to a program which 
offered support for teenage women who 
wish to stop their involvement in 
prostitution and short-term residence 
and support for teenage runaways. 
 This is the final and nonrecurring 
appropriation for The Bridge for 
Runaway Youths, Inc. 
     Subd. 5.  Income Maintenance     484,668,800  552,503,000
 The amounts that may be expended from 
this appropriation for each activity 
are as follows:  
Aid to Families with Dependent Children,
General Assistance, Minnesota 
Supplemental Assistance 
   $139,349,000   $153,970,600
 If the appropriation for aid to 
families with dependent children, 
general assistance, and Minnesota 
supplemental assistance is insufficient 
for either year, the appropriation for 
the other year shall be available by 
direction of the governor after 
consulting with the legislative 
advisory commission.  
 During the biennium ending June 30, 
1985, the commissioner of public 
welfare shall provide supplementary 
grants, not to exceed $150,000 per 
year, for aid to families with 
dependent children and shall include 
the following costs in determining the 
amount of the supplementary grants:  
major home repairs, repair of major 
home appliances, utility recaps, 
supplementary dietary needs not covered 
by medical assistance, and replacement 
of essential household furnishings and 
essential major appliances.  
 In determining the amount of the aid to 
families with dependent children 
grants, the commissioner of public 
welfare shall effect a five percent 
increase on July 1, 1983, and a five 
percent increase on July 1, 1984, 
unless federal statute or regulation 
requires otherwise. 
Medical Assistance, General Assistance
Medical Care and Preadmission Screening 
   $330,651,400  $383,554,100
 Notwithstanding any law requiring 
deposit of receipts in the general 
fund, all receipts from collection 
efforts for the state hospitals and 
state nursing homes shall be deposited 
in the medical assistance account and 
are appropriated for that purpose.  The 
commissioner shall make changes in the 
departmental financial reporting 
systems and internal accounting 
procedures as necessary to ensure 
compliance with federal standards for 
reimbursement for program and 
administrative expenditures and to 
fulfill the purpose of this paragraph. 
 The maximum monthly payment for 
attendant care shall be adjusted to 
$1,080 per month effective July 1, 1983.
 If the appropriation for medical 
assistance and general assistance 
medical care is insufficient for either 
year, the appropriation for the other 
year shall be available by direction of 
the governor after consulting with the 
legislative advisory commission.  
 The catastrophic health expense 
protection program is suspended for the 
fiscal year ending June 30, 1984.  
 To determine eligibility for medical 
assistance the commissioner shall 
disregard:  (1) from July 1 to December 
31, 1983, 23 percent; (2) from January 
1 to December 31, 1984, 25 percent; and 
(3) from January 1 to June 30, 1985, 28 
percent of the income from retired, 
survivor's, and disability insurance 
benefits, veterans' administration 
benefits, and railroad retirement 
benefits.  If this disregard is 
disallowed by the federal government 
and the waiver application denied, the 
commissioner shall disregard the 
increase for social security and 
supplemental security income recipients 
as provided under Minnesota Statutes 
1982, section 256B.06, subdivision 1, 
paragraph 10. 
Income Maintenance Support 
   $ 14,668,400  $ 14,978,300 
 For the child support enforcement 
activity, during the biennium ending 
June 30, 1985, sums received from the 
counties for providing data processing 
services shall be deposited in that 
activity's account.  Those sums are 
appropriated to the commissioner of 
public welfare for the purposes of the 
child support enforcement activity. 
 In determining the income contribution 
of parents of children in out-of-home 
placement, the state agency shall use 
the standard set forth in 12 MCAR 2.027 
until the promulgation of the rules 
required by section 256B.14, 
subdivision 2.  
   Subd. 6.  Mental Health          175,298,300  173,951,300
 Any federal money received in excess of 
the estimates shown in the 1983 
department of public welfare budget 
document shall reduce the state 
appropriation available by a like 
dollar amount, unless otherwise 
directed by the governor, after he has 
consulted with the legislative advisory 
commission.  
 The amounts that may be expended from 
this appropriation for each activity 
are as follows: 
State Hospitals
Approved Complement - 5447 
Salaries
   $127,700,000   $128,100,000
Of the 110 additional positions 
authorized under this appropriation, at 
least 55 shall be human services 
technician positions.  Human services 
technician positions shall not be 
converted to other positions.  
Current Expense 
   $ 14,900,000   $ 15,500,000
Repairs and Betterments
   $  2,088,900
Special Equipment
   $    639,800
Nursing Homes
Approved Complement 
   July 1, 1983   July 1, 1984 
       616.5          605.5 
Salaries
   $13,900,000    $13,664,900
 This appropriation includes $242,700 in 
fiscal year 1984 for the purpose of 
operating an experimental project for 
chronically chemically dependent people 
at Ah Gwah Ching state nursing home.  
The commissioner of public welfare 
shall augment the program with federal 
money and any additional money provided 
through shared service agreements 
pursuant to Minnesota Statutes 1982, 
section 246.57, after the amount of the 
state appropriation has been recovered 
and deposited in the medical assistance 
account. 
 The commissioner shall maintain records 
of the operations of this project, 
evaluate the efficiency and 
effectiveness of the treatment program, 
and report back to the legislature 
during the 1984 session on the amount 
deposited to the medical assistance 
account from the shared service 
agreements and the necessity and 
viability of operating this project in 
the future. 
Current Expense
   $ 1,950,000    $ 2,050,000
Repairs and Betterments
     $ 224,100
Special Equipment
     $  69,400
Mental Health Support
   $13,826,100    $14,636,400
 Any unexpended balance remaining in the 
first year for special equipment and 
repairs and betterments does not cancel 
but is available for the second year of 
the biennium.  
 If earnings under the various shared 
services agreements authorized are less 
than appropriated, the appropriation 
shall be reduced by a like dollar 
amount.  If any shared service 
agreement is reduced or terminated, the 
approved complement related to that 
shared service agreement shall be 
reduced accordingly. 
 Notwithstanding the provisions of 
sections 275.50 to 275.58 or any other 
law to the contrary, a county which 
transferred monies from its general 
revenue account to the public 
assistance administrative account prior 
to May 1, 1983, to cover 1983 
expenditures, may transfer without 
penalty from the special levy accounts 
delineated in section 275.50, 
subdivision 5, clauses (c) and (d), to 
the account for public assistance 
administration, an amount not to exceed 
the total amount originally transferred 
from the general revenue account.  The 
transfer of this sum may occur over a 
period of time to include calendar 
years 1983, 1984, and 1985. 
    Sec. 3.  COMMISSIONER OF ECONOMIC
SECURITY  
     Subdivision 1.  Total 
Department Appropriation              113,835,400  25,205,200 
 The amounts that may be expended from 
this appropriation for each program are 
more specifically described in the 
following subdivisions of this section. 
     Subd. 2.  Jobs Program
   $ 70,000,000 
Any unexpended balance remaining in the 
first year for the Minnesota emergency 
employment development program does not 
cancel but is available for the second 
year of the biennium.  To the extent 
permissible under federal and state 
law, the commissioner shall use money 
available from the federal government 
and the private sector to fund the 
program. 
     Subd. 3.  Special Allowances 
   $ 19,000,000 
Any unexpended balance remaining in the 
first year for special allowances does 
not cancel but is available for the 
second year of the biennium. 
     Subd. 4.  Job Service 
   $  4,634,900    $ 3,134,900
The commissioner may expend up to one 
percent of the appropriation for each 
fiscal year for the department's 
administrative costs and for program 
operators' administrative costs.  
 Of the money appropriated for the 
summer youth program for fiscal year 
1984, $750,000 is immediately 
available.  If that amount is 
insufficient for the costs incurred, an 
additional amount may be transferred 
upon the advance approval of the 
commissioner of finance.  Any 
unexpended balance of the immediately 
available money shall be available for 
the year in which it is appropriated.  
Contracts for the calendar year 1983 
program shall be written for the entire 
period of the calendar year 1983 
program. 
     Subd. 5.  Vocational Rehabilitation Services
   $15,063,100    $16,428,300
 Money received from workers' 
compensation carriers for vocational 
rehabilitation services to injured 
workers shall be deposited in the 
general fund. 
 Long-term sheltered workshops that 
receive funding through the department 
of economic security for long-term 
sheltered work operations shall:  (a) 
provide sheltered workers a grievance 
procedure having final and binding 
arbitration before a neutral third 
party mutually acceptable to the 
parties involved as the final step; (b) 
provide long-term sheltered workers 
with fundamental personnel benefits 
including, but not limited to, paid 
sick, vacation, and holiday leave; and 
(c) provide to workers wages certified 
pursuant to the sub-minimum wage 
provisions of the Fair Labor Standards 
Act, United States Code, title 29, 
sections 201 to 219, as amended through 
December 31, 1982, that are 
proportionately commensurate to 
prevailing wages in the vicinity for 
similar jobs.  Beginning in January, 
1984, the commissioner of economic 
security shall annually provide a 
report to the chairs of the house 
appropriations and senate finance 
committees on the operation of the 
long-term sheltered workshops including 
information on compliance with these 
requirements.  
     Subd. 6.  Training and Community Services 
   $4,587,400   $5,642,000
 If the appropriation for either year of 
the weatherization program is 
insufficient, the appropriation from 
the other year is available for the 
program. 
     Subd. 7.  Program and 
Management Support 
   $  550,000   
 The appropriation for the displaced 
homemaker program includes money for 
the purpose of making grants to 
programs to provide employment, 
training, and support services to 
displaced homemakers.  
This appropriation includes $550,000 
for article 6, for the biennium.  Any 
unexpended balance remaining in the 
first year does not cancel, but is 
available for the second year.  
     Sec. 4.  COMMISSIONER OF 
CORRECTIONS   
     Subdivision 1.  Total Department
Appropriation                          78,253,200  79,205,900
 The amounts that may be expended from 
the appropriation for each program and 
activity are more specifically 
described in the following subdivisions 
of this section.  
 Positions and administrative money may 
be transferred within the department of 
corrections as deemed necessary by the 
commissioner, upon the advance approval 
of the commissioner of finance. 
     Subd. 2.  Management Services      1,865,500   1,888,000
 No new positions eligible for county 
probation reimbursement under this 
activity shall be added by any county 
without the written approval of the 
commissioner of corrections.  
 When new positions are approved, the 
commissioner shall include the cost of 
those positions in calculating each 
county's share. 
 The commissioner of corrections, 
working with other appropriate state 
agencies and legislative staff, shall 
evaluate and study the feasibility of 
encouraging the private sector to 
construct a women's correctional 
facility at Shakopee to be leased by 
the state of Minnesota with an option 
to purchase after an agreed upon period 
of years.  This report shall include a 
comparative study of the fiscal 
implications of a leased/purchased plan 
versus the traditional construction 
approach utilizing the bonding 
process.  The commissioner may submit 
requests for proposals to develop the 
necessary information required to make 
the comparative study.  The new 
proposed facility must be designed to 
meet the program needs of the 
commissioner of corrections. 
 The commissioner shall report his 
findings to the chairs of the 
appropriate legislative committees in 
January, 1984. 
     Subd. 3.  Policy and Planning      1,368,700   1,505,100
     Subd. 4.  Community Services      21,076,100  20,239,300
 The amounts that may be expended from 
this appropriation for each activity 
are as follows:  
Support 
   $ 8,506,300     $ 8,717,000 
Community Corrections Act 
   $12,569,800     $11,522,300
 Notwithstanding the provisions of 
chapter 401, no county or group of 
counties participating in the community 
corrections act shall be charged any 
per diem cost of confinement for adults 
sentenced to the commissioner of 
corrections for crimes committed on or 
after January 1, 1981. 
 The commissioner of corrections may 
authorize the use of a percentage of a 
grant for the operation of an emergency 
shelter or make a separate grant for 
the rehabilitation of any facility 
owned by the grantee and used as a 
shelter to bring the facility into 
compliance with state and local laws 
pertaining to health, fire, and safety 
and to provide security. 
     Subd. 5.  Correctional
Institutions                           53,942,900  55,573,500
Salaries 
   $41,392,100    $42,541,800
Current Expense 
   $ 8,575,700    $ 8,986,400
Repairs and Betterments 
   $   569,600    $   531,100
Special Equipment
   $   171,200    $   180,100
 Any unexpended balances in special 
equipment, and repairs and betterments, 
and industry remaining in the first 
year does not cancel but is available 
for the second year of the biennium.  
 Notwithstanding section 15.059, 
subdivisions 5 and 6 or any other law 
to the contrary, the advisory task 
force on battered women established 
under Minnesota Statutes 1982, section 
241.64, and the advisory task force on 
the woman offender established under 
Minnesota Statutes 1982, section 241.71 
are continued in effect for the 
biennium ending June 30, 1985. 
 The commissioner of corrections is 
authorized to enter into an agreement 
with the appropriate Wisconsin 
officials for housing Wisconsin 
prisoners in Minnesota correctional 
institutions.  Money received from 
Wisconsin pursuant to the contract is 
appropriated to the commissioner of 
corrections for the purpose of 
operating MCF-Oak Park Heights and 
reimbursing MCF-Stillwater and MCF-St. 
Cloud for the cost of Wisconsin inmate 
care.  Any unexpended balances within 
correctional institutions in current 
expense and salaries remaining in the 
first year does not cancel but is 
available for the second year of the 
biennium if receipt projections in the 
first year show a deficit for the 
biennium. 
Institution Support 
   $3,234,300     $3,334,100
     Sec. 5.  SENTENCING GUIDELINES 
COMMISSION 
Salaries, Supplies, and Expense            154,000     145,000
     Sec. 6.  CORRECTIONS OMBUDSMAN       
Salaries, Supplies, and Expense            270,000     272,100
     Sec. 7.  COMMISSIONER OF HEALTH 
     Subdivision 1.  Total Department 
Appropriation                           25,002,600  24,685,900
 Of this appropriation $386,000 for 
fiscal year 1984 and $389,700 for 
fiscal year 1985 are appropriated from 
the trunk highway fund for emergency 
medical services activities.  
 The amounts that may be expended from 
this appropriation for each program and 
activity are more specifically 
described in the following subdivisions 
of this section.  
 Positions and administrative money may 
be transferred within the department of 
health as deemed necessary by the 
commissioner, upon the advance approval 
of the commissioner of finance. 
 Notwithstanding the provisions of 
section 144.145, the commissioner of 
health may enter into an agreement with 
the city of Brainerd to provide an 
alternate dental health plan.  If the 
commissioner, in consultation with the 
governor, approves the plan and the 
city provides the plan in accordance 
with the agreement, the city of 
Brainerd is exempt from the provisions 
of section 144.145 for the duration of 
the agreement. 
     Subd. 2.  Preventive and Personal 
Health Services                          8,827,200   9,205,100 
 Notwithstanding any law to the 
contrary, the commissioner of health 
shall charge a fee of not less than $5 
for medical laboratory services. 
 The commissioner of health may charge a 
fee for voluntary certification of 
medical laboratories and environmental 
laboratories.  The fee may be 
established without complying with 
chapter 14.  
 The commissioner of health may charge 
fees for environmental and medical 
laboratory services in amounts 
approximately equal to the costs of 
providing the services.  The fees may 
be established without complying with 
chapter 14.  
 The commissioner of health shall 
conduct a study and evaluation of lead 
exposure and the health effects on 
children.  The commissioner shall 
report the findings of the study to the 
legislature by February 1, 1984. 
     Subd. 3.  Health Systems Quality 
Assurance                               1,930,600   1,947,900 
 The commissioner of health shall 
require a fee of $1,000 prior to 
undertaking a study of a human service 
occupation under section 214.13. 
The fee shall be imposed on an 
applicant group at the time the 
application is filed with the 
commissioner.  The fee shall be 
deposited to the general fund and if 
the application is accepted it is not 
refundable.  
     Subd. 4.  Health Support
Services                               14,244,800  13,532,900 
The amounts that may be expended from 
this appropriation for each activity 
are as follows: 
General support
     $ 3,362,100    $ 3,414,100
Community Health Services Subsidy 
     $10,882,700    $10,118,800
 For the purposes of the community 
health services subsidy, the 
commissioner of finance may authorize 
the transfer of money to the community 
health services activity from the other 
programs in this section.  
 The payments for the community health 
services subsidy for each county shall 
be based upon the formula in effect in 
fiscal year 1983 except that the amount 
available for each county shall be 
increased by five percent each year of 
the biennium ending June 30, 1985, and 
be based upon the data used in arriving 
at the appropriation. 
 No county, city, group of cities, or 
group of counties shall receive less 
than the amount received in 1981; 
however, this appropriation shall be 
prorated if the amount is insufficient. 
 If the appropriation for community 
health services or services to children 
with handicaps is insufficient for 
either year, the appropriation for the 
other year shall be available by 
direction of the governor after 
consulting with the legislative 
advisory commission.  
 For the purposes of the community 
health services subsidy, the 
commissioner shall include public 
school swimming pool sanitation and 
safety within the definition of 
environmental health services. 
     Sec. 8.  HEALTH RELATED BOARDS  
   Subdivision 1.  Board of Chiropractic
Examiners                                87,900       89,400
   Subd. 2.  Board of Dentistry         256,700      263,500
   Subd. 3.  Board of Medical
Examiners                               421,300      414,300
   Subd. 4.  Board of Nursing           766,400      783,100
   Subd. 5.  Board of Examiners for
Nursing Home Administrators             105,500      107,400
   Subd. 6.  Board of Optometry          48,300       49,600
   Subd. 7.  Board of Pharmacy          327,900      327,400
   Subd. 8.  Board of Podiatry            5,800        6,000
   Subd. 9.  Board of Psychology        104,000      107,200
   Subd. 10.  Board of Veterinary
Medicine                                 65,700       67,800
 The commissioner of finance shall not 
permit the allotment, encumbrance, or 
expenditure of any money appropriated 
in this section in excess of the 
anticipated biennial revenues from fees 
collected by the boards.  
 Neither this provision nor section 
214.06 shall apply to transfers from 
the general contingent account, if the 
amount transferred does not exceed the 
amount of surplus revenue accumulated 
during the previous five years. 
    Sec. 9.  CONTINGENT FOR STATE
INSTITUTIONS                             500,000
 This appropriation shall be used for 
emergency purposes and for the purchase 
of food, clothing, drugs, utilities, 
and fuel for any of the institutions 
for which an appropriation is made in 
this act.  No expenditure shall be made 
from this appropriation without the 
direction of the governor after 
consultation with the legislative 
advisory commission.  
 Any unexpended balance remaining in the 
first year does not cancel but is 
available for the second year of the 
biennium.  
 The allowance for food may be adjusted 
annually according to the United States 
department of labor, bureau of labor 
statistics publication wholesale price 
index, upon the approval of the 
governor.  Adjustments shall be based 
on the June, 1983, wholesale food price 
index, but the adjustment shall be 
prorated if the wholesale food price 
index adjustment would require money in 
excess of this appropriation. 
     Sec. 10.  SPECIAL CONTINGENT           300,000
 This appropriation is available for use 
by the commissioner of public welfare 
to match federal money from the home 
and community based waiver under United 
States Code, title 42, section 
1396n(c), as amended through December 
31, 1982, for costs to establish a 
client information system and for 
positions to administer the mental 
retardation program.  This 
appropriation shall only be expended 
with the governor's approval after 
consultation with the legislative 
advisory commission under section 
3.30.  This money is not available to 
the commissioner if the home and 
community based waiver application is 
not approved by June 30, 1984.  
    Sec. 11.  [FEDERAL RECEIPTS.] 
    For the fiscal biennium ending June 30, 1985 federal 
receipts as shown in the biennial budget document or in working 
papers of the two appropriations committees to be used for 
financing activities, programs, and projects under the 
supervision and jurisdiction of the commissioner of public 
welfare as approved indicated in Article 1, section 10 and 
Article 5, section sections 9 and 12 shall be accredited to and 
become a part of the appropriations provided for in section 2. 
    Sec. 12.  [PROVISIONS.] 
    For the biennium ending June 30, 1985, money appropriated 
to the commissioner of corrections and the commissioner of 
public welfare under this act for the purchase of provisions 
within the item "current expense" shall be used solely for that 
purpose.  Any money so provided and not used for purchase of 
provisions shall be canceled into the fund from which 
appropriated, except that money so provided and not used for the 
purchase of provisions because of population decreases may be 
transferred and used for the purchase of medical and hospital 
supplies with the approval of the governor after consulting with 
the legislative advisory commission.  
    Sec. 13.  [TRANSFERS OF MONEY.] 
    Subdivision 1.  [GOVERNOR'S APPROVAL REQUIRED.] For the 
biennium ending June 30, 1985, the commissioner of public 
welfare, the commissioner of corrections, the commissioner of 
economic security, and the commissioner of health shall not 
transfer any money to or from the object of expenditure personal 
services to or from the object of expenditure claims and grants, 
as shown on the official worksheets of the conferees of the 
senate and house of representatives, a true copy of which is on 
file in the office of the commissioner of finance, except as 
provided in article 8, section 16 and for services for the blind 
and for those transfers that have the written approval of the 
governor after consulting with the legislative advisory 
commission.  
    Subd. 2.  [TRANSFERS OF UNOBLIGATED APPROPRIATIONS.] For 
the biennium ending June 30, 1985, the commissioners of public 
welfare, corrections, and health by direction of the governor 
after consulting with the legislative advisory commission may 
transfer unobligated appropriation balances and positions among 
all programs.  
    Sec. 14.  [APPROVED COMPLEMENT.] 
    For the biennium ending June 30, 1985, the approved 
complements indicated in this act are full-time equivalent 
positions and apply only to positions paid for with money 
appropriated by this act.  
    Additional employees over the number of the approved 
complement may be employed on the basis of public necessity or 
emergency with the written approval of the governor, but the 
governor shall not approve the additional personnel until he has 
consulted with the legislative advisory commission.  Any 
requests for increases in the approved complement shall be 
forwarded to the appropriate committees on finance of the 
legislature not less than 30 days prior to the legislative 
advisory commission meeting.  
    Sec. 15.  Minnesota Statutes 1982, section 129A.03, is 
amended to read: 
    129A.03 [POWERS AND DUTIES.] 
    The commissioner shall: 
    (a) Develop and administer the long-term sheltered 
workshops and work activity programs and perform the duties as 
specified in section 129A.08; 
    (b) Provide vocational rehabilitation services such as, but 
not limited to,:  diagnostic and related services incidental to 
the determination of eligibility for services to be provided, 
which services may include including medical diagnosis and 
vocational diagnosis; vocational counseling, training and 
instruction, including personal adjustment training; physical 
restoration, including corrective surgery, therapeutic 
treatment, hospitalization and prosthetic devices, all of which 
shall be secured obtained from appropriate established agencies; 
transportation; occupational and business licenses or permits, 
customary tools and equipment, maintenance, books, supplies and 
training materials; initial stocks and supplies; placement; the 
acquisition of vending stands or other equipment, initial stocks 
and supplies for small business enterprises; supervision and 
management of small business enterprises, merchandising programs 
or services rendered by severely disabled persons; the 
establishment, improvement, maintenance or extension of public 
and other non-profit rehabilitation facilities, centers, 
workshops, demonstration projects and research.  These services 
shall be provided for handicapped persons in the state whose 
capacity to earn a living has in any way been destroyed or 
impaired through industrial accident or otherwise, provided that 
such; these persons shall be are entitled to free choice of 
vendor for any medical or dental services thus provided under 
this paragraph; 
    (c) Formulate plans of cooperation with the commissioner of 
labor and industry with reference to for providing services to 
workers covered under the workers' compensation act.  Those 
plans shall be are effective only when if approved by the 
governor; 
    (d) Maintain a contractual relationship with the United 
States as authorized by the act of congress approved September 
1, 1954, known as the "Social Security Amendments of 1954," 
being Public Law 761, Section 221, and the act approved October 
30, 1972, known as the Social Security Amendments of 1972, being 
Public Law 92-603, and subsequent amendments thereto, in which 
agreement.  Under the contract, the state will undertake to make 
determinations referred to in those public laws with respect to 
all individuals in Minnesota, or with respect to such a class or 
classes of individuals in this state as may be that is 
designated in the agreement at the state's request, it being. It 
is the purpose of this relationship to permit the citizens of 
this state to obtain all benefits available under federal law; 
    (e) Provide an in-service training program for department 
employees by paying for the its direct costs thereof with state 
and federal funds; 
    (f) Conduct research and demonstration projects; provide 
training and instruction, including the establishment and 
maintenance of research fellowships and traineeships, along with 
all necessary stipends and allowances; disseminate information 
to the handicapped and general public; and provide technical 
assistance relating to vocational rehabilitation; 
    (g) Receive and disburse pursuant to law funds money and 
gifts available from governmental and private sources for the 
purpose of vocational rehabilitation; 
    (h) Design all state plans of vocational rehabilitation 
services required as a condition to the receipt and disbursement 
of any funds money available from the federal government; 
    (i) Cooperate with other public or private agencies or 
organizations for the purpose of vocational rehabilitation. 
Money received from school districts, governmental subdivisions, 
mental health centers or boards, and private nonprofit 
organizations is appropriated to the commissioner for conducting 
joint or cooperative vocational rehabilitation programs; 
    (j) Enter into contractual arrangements with 
instrumentalities of federal, state, or local government and 
with private individuals, organizations, agencies or facilities 
with respect to providing vocational rehabilitation services; 
    (k) Take other actions required by state and federal 
legislation relating to vocational rehabilitation and disability 
determination programs; 
    (l) Hire the staff and arrange for the provision of 
services and facilities necessary to perform the duties and 
powers specified in this section; and 
    (m) Adopt, amend, suspend or repeal rules necessary to 
implement or make specific programs which that the commissioner 
by sections 129A.01 to 129A.09 is empowered to administer. 
    Sec. 16.  Minnesota Statutes 1982, section 144.653, 
subdivision 2, is amended to read: 
    Subd. 2.  [PERIODIC INSPECTION.] All facilities required to 
be licensed under the provisions of sections 144.50 to 144.58 
shall be periodically inspected by the state commissioner of 
health to insure ensure compliance with its rules, regulations 
and standards.  Inspections shall occur at different times 
throughout the calendar year.  The state commissioner of health 
may enter into agreements with political subdivisions providing 
for the inspection of such facilities by locally employed 
inspectors. 
    The commissioner of health shall conduct inspections and 
reinspections of facilities licensed under the provisions of 
sections 144.50 to 144.56 with a frequency and in a manner 
calculated to produce the greatest benefit to residents within 
the limits of the resources available to the commissioner.  In 
performing this function, the commissioner may devote 
proportionately more resources to the inspection of those 
facilities in which conditions present the most serious concerns 
with respect to resident health, treatment, comfort, safety, and 
well-being.  
    These conditions include but are not limited to:  change in 
ownership; frequent change in administration in excess of normal 
turnover rates; complaints about care, safety, or rights; where 
previous inspections or reinspections have resulted in 
correction orders related to care, safety, or rights; and, where 
persons involved in ownership or administration of the facility 
have been indicted for alleged criminal activity.  Any health 
care facility that has none of the above conditions or any other 
condition established by the commissioner that poses a risk to 
resident care, safety, or rights shall be inspected once every 
two years.  
    Sec. 17.  Minnesota Statutes 1982, section 144A.04, 
subdivision 5, is amended to read: 
    Subd. 5.  [ADMINISTRATORS.] Except as otherwise provided by 
this subdivision, a nursing home must have a full time licensed 
nursing home administrator serving the facility.  In any nursing 
home of less than 25 beds, the director of nursing services may 
also serve as the licensed nursing home administrator.  Two 
nursing homes having a total of 100 beds or less and located 
within 50 miles of each other may share the services of a 
licensed administrator if the administrator divides his full 
time work week between the two facilities in proportion to the 
number of beds in each facility.  Every nursing home shall have 
a person-in-charge on the premises at all times in the absence 
of the licensed administrator.  The name of the person in charge 
must be posted in a conspicuous place in the facility.  The 
commissioner of health shall by rule promulgate minimum 
education and experience requirements for persons-in-charge, and 
may promulgate rules specifying the times of day during which a 
licensed administrator must be on the nursing home's premises.  
A nursing home may employ as its administrator the administrator 
of a hospital licensed pursuant to sections 144.50 to 144.56 if 
the individual is licensed as a nursing home administrator 
pursuant to section 144A.20 and the nursing home and hospital 
have a combined total of 150 beds or less and are located within 
one mile of each other.  A nonproprietary retirement home having 
fewer than 15 licensed nursing home beds may share the services 
of a licensed administrator with a nonproprietary nursing home, 
having fewer than 150 licensed nursing home beds, that is 
located within 25 miles of the retirement home.  A nursing home 
which is located in a facility licensed as a hospital pursuant 
to sections 144.50 to 144.56, may employ as its administrator 
the administrator of the hospital if the individual meets 
minimum education and long term care experience criteria set by 
rule of the commissioner of health. 
    Sec. 18.  Minnesota Statutes 1982, section 144A.10, 
subdivision 2, is amended to read: 
    Subd. 2.  [INSPECTIONS.] The commissioner of health shall 
annually inspect each nursing home to assure ensure compliance 
with sections 144A.01 to 144A.17 and the rules promulgated 
thereunder to implement them.  The annual inspection shall be a 
full inspection of the nursing home.  If upon a reinspection 
provided for in subdivision 5 the representative of the 
commissioner of health finds one or more uncorrected violations, 
a second inspection of the facility shall be conducted.  The 
second inspection need not be a full inspection.  No prior 
notice shall be given of an inspection conducted pursuant to 
this subdivision.  Any employee of the commissioner of health 
who willfully gives or causes to be given any advance notice of 
an inspection required or authorized by this subdivision shall 
be subject to suspension or dismissal in accordance with chapter 
43A.  An inspection required by a federal rule or statute may be 
conducted in conjunction with or subsequent to any other 
inspection.  Any inspection required by this subdivision may be 
in addition to or in conjunction with the reinspections required 
by subdivision 5.  Nothing in this subdivision shall be 
construed to prohibit the commissioner of health from making 
more than one unannounced inspection of any nursing home during 
its license year.  The commissioner of health shall coordinate 
his inspections of nursing homes with inspections by other state 
and local agencies. 
    The commissioner shall conduct inspections and 
reinspections of health facilities with a frequency and in a 
manner calculated to produce the greatest benefit to residents 
within the limits of the resources available to the 
commissioner.  In performing this function, the commissioner may 
devote proportionately more resources to the inspection of those 
facilities in which conditions present the most serious concerns 
with respect to resident health, treatment, comfort, safety, and 
well-being.  
    These conditions include but are not limited to:  change in 
ownership; frequent change in administration in excess of normal 
turnover rates; complaints about care, safety, or rights; where 
previous inspections or reinspections have resulted in 
correction orders related to care, safety, or rights; and, where 
persons involved in ownership or administration of the facility 
have been indicted for alleged criminal activity.  Any facility 
that has none of the above conditions or any other condition 
established by the commissioner that poses a risk to resident 
care, safety, or rights shall be inspected once every two years. 
    Sec. 19.  Minnesota Statutes 1982, section 145.921, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PAYMENT.] When a city, county, or group of 
cities or counties meets the requirements prescribed in section 
145.917, the state commissioner of health shall pay the amount 
of subsidy to the city or county in accordance with applicable 
rules and regulations from the funds appropriated for the 
purpose.  The state commissioner of health may make an 
advancement of funds on a quarterly basis.  The commissioner of 
health shall make payments for community health services to each 
county in 12 installments per year.  The commissioner shall 
ensure that the pertinent payment of the allotment for each 
month is made to each county on the first working day after the 
end of each month of the calendar year, except for the last 
month of the calendar year.  The commissioner shall ensure that 
each county receives its payment of the allotment for that month 
no later than the last working day of that month.  The payment 
described in this subdivision for services rendered during June, 
1985 shall be made on the first working day of July, 1985.  
    Sec. 20.  Minnesota Statutes 1982, section 246.57, is 
amended by adding a subdivision to read: 
    Subd. 3.  [LIMITED AGREEMENTS.] Notwithstanding the 
provisions of subdivision 1, the commissioner of public welfare 
may authorize a state hospital or state nursing home to enter 
into agreements with other governmental or nonprofit 
organizations for participation in limited shared service 
agreements that would be of mutual benefit to the state, the 
organization involved, and the public.  
    The duration of limited agreements may not exceed three 
calendar years and the total dollar amount attributable to a 
limited agreement may not exceed $100,000.  Consultation with 
the legislative advisory committee is not required for 
agreements made pursuant to this subdivision.  The charges for 
services must be on an actual cost basis and receipts are 
dedicated for the operations of the state hospitals or state 
nursing homes that provide the service, and are appropriated for 
that purpose.  
    Sec. 21.  Minnesota Statutes 1982, section 251.011, 
subdivision 6, is amended to read: 
    Subd. 6.  [RULES AND REGULATIONS.] The commissioner of 
public welfare shall have the power to make may promulgate rules 
and regulations for the operation of, for admission of residents 
in, and to establish charges for care in the state nursing homes 
at Ah-Gwah-Ching and Oak Terrace and for the admission of 
patients thereto, and to fix the charges to be made for care 
therein.  For the purposes of collecting from the federal 
government for the care of those residents in the state nursing 
homes eligible for medical care under the Social Security Act, 
"cost of care" shall be determined as set forth in the rules and 
regulations of the Department of Health and Human Services or 
its successor agency.  
    Sec. 22.  [252.32] [FAMILY SUBSIDY PROGRAM.] 
    Within the limits of appropriations, the commissioner of 
public welfare may provide subsidies to families with mentally 
retarded children in order to enable those families to continue 
caring for the children in their own homes.  The commissioner 
may establish criteria for determining eligibility for a subsidy 
and subsidy amounts and conditions for use of subsidies.  
    Sec. 23.  Minnesota Statutes 1982, section 256E.06, 
subdivision 2, is amended to read:  
    Subd. 2.  [MINIMUM FUNDING LEVEL; STATE AIDS MAXIMUM 
FUNDING; ALLOCATION.] No county shall receive less in state aids 
for community social services under subdivision 1 in calendar 
years 1982 and 1983 than 106 percent of the state money it 
received in the immediately preceding calendar year pursuant to 
section 256E.06.  For purposes of 1983, the state money the 
county received in 1982 shall be the community social service 
grant plus the state money it received for state fiscal year 
1982 as authorized by the health, welfare, and corrections 
appropriations act for the biennium ending June 30, 1983 for the 
following activities: cost of care for mentally retarded, 
epileptic or emotionally handicapped children pursuant to 
section 252.27, subdivision 1;  community mental health pilot 
program pursuant to section 245.72 and community-based 
residential programs for mentally ill persons.  
    The term state funds does not include any federal money 
received by the state or counties for financing these services.  
    No county shall receive more than 130 percent of the amount 
received in the immediately preceding year as specified in this 
subdivision.  If the amount allocated to any county pursuant to 
subdivision 1 is greater than this amount, the excess shall be 
reallocated to all counties in direct proportion to their 
initial allocations.  
    If the amount allocated to any county pursuant to 
subdivision 1 and the preceding paragraph is less than the 
minimum funding level of that county, its allocation shall be 
raised to its minimum share through an equal percentage 
reduction applied to all other county allocations.  
    Sec. 24.  Minnesota Statutes 1982, section 401.14, is 
amended by adding a subdivision to read: 
    Subd. 3.  [INSTALLMENT PAYMENTS.] The commissioner of 
corrections shall make payments for community corrections 
services to each county in 12 installments per year.  The 
commissioner shall ensure that the pertinent payment of the 
allotment for each month is made to each county on the first 
working day after the end of each month of the calendar year, 
except for the last month of the calendar year.  The 
commissioner shall ensure that each county receives its payment 
of the allotment for that month no later than the last working 
day of that month.  The payment described in this subdivision 
for services rendered during June, 1985 shall be made on the 
first working day of July, 1985.  
    Sec. 25.  Minnesota Statutes 1982, section 401.15, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CERTIFIED STATEMENTS; DETERMINATIONS; 
ADJUSTMENTS.] On or before the end of each calendar quarter, 
participating counties which have received the payments 
authorized by section 401.14 shall submit to the commissioner 
certified statements detailing the amounts expended and costs 
incurred in furnishing the correctional services provided in 
sections 401.01 to 401.16.  Upon receipt of certified 
statements, the commissioner shall, in the manner provided in 
sections 401.10 and 401.12, determine the amount each 
participating county is entitled to receive, making any 
adjustments necessary to rectify any disparity between the 
amounts received pursuant to the estimate provided in section 
401.14 and the amounts actually expended.  If the amount 
received pursuant to the estimate is greater than the amount 
actually expended during the quarter, the commissioner may 
withhold the difference from any subsequent quarterly monthly 
payments made pursuant to section 401.14.  Upon certification by 
the commissioner of the amount a participating county is 
entitled to receive under the provisions of section 401.14 or of 
this subdivision the commissioner of finance shall thereupon 
issue a state warrant to the chief fiscal officer of each 
participating county for the amount due together with a copy of 
the certificate prepared by the commissioner.  
    Sec. 26.  Laws 1982, chapter 614, section 13, is amended to 
read: 
    Sec. 13.  [EFFECTIVE DATE.] 
    Sections 1, 3 to 7 and 11 are effective the day following 
enactment.  Section 2 shall become effective for a specified 
provider group on March 1, 1983 if the commissioner of health 
certifies to the health and welfare committees of the house and 
senate that the voluntary efforts by the provider group to 
promote price competition and to implement the reporting 
requirements of section 2 have not made satisfactory progress.  
This certification shall take the form of a written report 
delivered to the chairmen of the house and senate committees by 
January 2, 1983.  Notice of the date of the delivery shall be 
published in the state register.  Sections 8 to 10 and 12 are 
effective March 15 June 30, 1984. 
    Sec. 27.  [REPEALER.] 
    Laws 1981, chapter 323, section 4 and chapter 360, article 
II, section 54, as amended by Laws 1981, First Special Session 
chapter 4, article IV, section 22, are repealed.  The section 
proposed to be coded as section 471.365 contained in a bill 
styled as H.F. No. 1290 during the 1983 regular legislative 
session is repealed.  
    Sec. 28.  [EFFECTIVE DATE.] 
    Sections 19, 24, and 25 are effective July 1, 1984.  

                                ARTICLE 2

                         CHILD CARE ENTITLEMENT
    Section 1.  Minnesota Statutes 1982, section 245.83, is 
amended to read: 
    245.83 [GRANTS FOR CHILD CARE SERVICES; DEFINITIONS.] 
    Subdivision 1.  As used in sections 245.83 to 245.87 the 
words defined in this section shall have the meanings given them.
    Subd. 2.  "Child care services" means family day care 
homes, group day care centers, nursery schools, day nurseries, 
child day care centers, play groups, head start and parent 
cooperatives, as defined by rules of the commissioner, and 
in-home child care as defined in the Minnesota plan for social 
services to families and children. 
    Subd. 3.  "Child" means any person 14 years of age or 
younger. 
    Subd. 4.  "Commissioner" means the commissioner of public 
welfare. 
    Subd. 5.  "Interim financing" means funds to carry out such 
activities as are necessary for family day care homes, group 
family day care homes and cooperative child care centers to 
receive and maintain state licensing, and operating funds for a 
period of six consecutive months following receipt of state 
licensing by a family day care home, group family day care home, 
or cooperative child care center. 
     Sec. 2.  Minnesota Statutes 1982, section 245.84, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORITY.] The county board is authorized 
to provide child care services, to make grants from the 
community social service fund or other sources to any 
municipality, corporation or combination thereof for the cost of 
providing technical assistance and child care services, or to 
contract for services with any licensed day care facility, as 
the board deems necessary or proper to carry out the purposes of 
sections 245.83 to 245.87. 
    The board is further authorized to make grants to or 
contract with any municipality, incorporated licensed child care 
facility, or corporation or combination thereof for any of the 
following purposes: 
    (a) For creating new licensed day care facilities and 
expanding existing facilities including, but not limited to, 
supplies, equipment, and facility renovation and remodeling; 
    (b) For improving licensed day care facility programs, 
including, but not limited to, staff specialists, staff 
training, supplies, equipment, and facility renovation and 
remodeling; 
    (c) For supportive child development services including, 
but not limited to, inservice training, curriculum development, 
consulting specialist, resource centers, and program and 
resource materials; 
    (d) For carrying out programs including, but not limited 
to, staff, supplies, equipment, facility renovation, and 
training; and, 
    (e) For interim financing. 
     Sec. 3.  Minnesota Statutes 1982, section 245.84, 
subdivision 2, is amended to read: 
    Subd. 2.  [ALLOCATION, ELIGIBILITY, SLIDING FEE.] (a) 
Within the limit of appropriations available and subject to the 
allocation requirements of section 245.87 the commissioner shall 
establish a program to make grants allocate available 
appropriations to counties for the purpose of reducing according 
to a sliding fee schedule the costs of child care for eligible 
families.  The commissioner shall promulgate rules to govern the 
program in accordance with this subdivision.  No later than 
April 1 of each odd-numbered year, the commissioner shall notify 
all county boards of the allocation procedures for applying for 
the sliding fee program grants.  No later than June 1 of each 
odd-numbered year, each county wishing to participate in the 
sliding fee program shall apply to inform the commissioner for a 
grant of the number of persons estimated to be entitled to child 
care services, the number of persons estimated to use the 
program, and the expected cost for the following two state 
fiscal years.  No later than July 1 of that year, the 
commissioner shall allocate to all counties that apply and agree 
to comply with the provisions of sections 245.84 to 245.87 
grants in the amounts determined by rule each county its 
proportionate share of the appropriation for that and the next 
fiscal year, determined according to the county's report.  If 
the appropriation is insufficient to meet the needs in all 
counties, the amount shall be prorated among the counties.  The 
commissioner shall require collection of data and periodic 
reports as the commissioner deems necessary to demonstrate the 
effectiveness of the program in preventing and reducing 
dependence of participants on public assistance and in providing 
other benefits.  The commissioner shall report to the 
legislature no later than January 15 of each odd-numbered year 
of the effectiveness of the program. 
    (b) In addition to payments from parents, contributions to 
the cost of the program shall be made by grantees counties as 
follows:  5 percent in the first grant year, and 15 percent in 
the second and subsequent grant years, that the county provides 
services under this subdivision. 
    The county board shall establish the income range for 
eligibility of families for the sliding fee program, which shall 
be not less than the minimum nor more than the maximum income 
range, as follows:  (a) the minimum income range includes 
families having income above 60 percent but less than 70 percent 
of the state median income for a family of four adjusted for 
family size; (b) the maximum income range includes families 
having income above 60 percent but less than 90 percent of the 
state median income for a family of four adjusted for family 
size.  Families having parents determined by the commissioner, 
according to criteria which the commissioner shall establish, to 
be unable to care for the child because of employment, school 
attendance or other circumstances are eligible for the sliding 
fee program.  
    (c) Families receiving child care services under this 
subdivision on July 1, 1983 are entitled to child care services 
under this paragraph (c).  As money that is allowed or required 
to be used for providing child care becomes available to the 
county from federal, state, or local sources, the county board 
shall to the extent practical make child care services available 
to single parent families in which the parent needs child care 
services under this section to secure or retain employment, or 
to obtain the training or education necessary to secure 
employment, or for other circumstances, established by the 
commissioner, related to education, training, or employment, 
and, in the following order of priority:  
    (1) who are receiving aid to families with dependent 
children under sections 256.72 to 256.87.  Child care services 
to these families shall be made available as in-kind services, 
to cover the difference between the actual cost and $160 per 
month per child or the amount disregarded under rules for 
persons not employed full-time; then 
    (2) whose household income is within the income range 
established by the county board.  Child care services to these 
families shall be made available on a sliding fee.  The minimum 
income range a county board may establish is between the aid to 
families with dependent children eligibility limit and household 
income of less than 70 percent of the state median income for a 
family of four adjusted for family size, and the maximum income 
range is between the aid to families with dependent children 
eligibility limit and household income of less than 90 percent 
of the state median income for a family of four adjusted for 
family size.  
    (d) In setting the sliding fee schedule, the commissioner 
shall exclude from the amount of income used to determine 
eligibility under the income range established by the county 
board an amount for federal and state income and social security 
taxes attributable to that income level according to federal and 
state standardized tax tables.  The total fee charged for child 
care to any family shall not exceed 75 percent of the income so 
determined to be above the maximum allowable for fully 
subsidized child care. 
    (e) In each case where the grantee county charges a fee 
that is less than the fee set by the commissioner for the same 
service, the state's payment shall be limited to the difference 
between the fee set by the commissioner and the charge for care. 
    In cases where the provider of the child care service 
charges in excess of 125 percent of the median charge for like 
care arrangements in the geographic area defined by the 
commissioner for the purposes of ascertaining such the median 
charge, the state's payment shall be limited to the difference 
between 125 percent of the median charge for like care 
arrangements in the geographic area and the parents' fee. 
    (f) The county board shall ensure that child care services 
are available to county residents entitled to them under 
paragraph (c), that the availability of services is 
well-advertised, and that all recipients of and applicants for 
aid to families with dependent children are informed of any 
availability of child care services under paragraph (c).  The 
county board may accept any gifts, grants, bequests, devises, or 
offers of inclusion of services as employees' fringe benefits 
for use in providing services under sections 1 to 8.  
    (g) The commissioner shall promulgate temporary and 
permanent rules in accordance with sections 14.05 to 14.36 to 
implement this section.  No more than seven percent of any grant 
allocation shall be used for the grantee's county's 
administration expenses. 
     Sec. 4.  Minnesota Statutes 1982, section 245.84, 
subdivision 5, is amended to read: 
    Subd. 5.  [BIENNIAL PLAN.] The county board shall 
biennially develop a plan for the distribution of funds money 
for child care services as part of the community social services 
plan prescribed in section 256E.09.  All licensed child care 
programs shall be given written notice concerning the 
availability of funds money and the application process. 
     Sec. 5.  Minnesota Statutes 1982, section 245.85, is 
amended to read: 
    245.85 [TERMINATION SUPERVISION OF ALL OR PART OF A GRANT 
SERVICES.] 
    The county board shall supervise and coordinate all child 
care services and programs for which a grant money has been made 
available pursuant to sections 245.83 to 245.87, and shall 
endeavor insofar as possible to establish a set of program 
standards and uniform regulations to coordinate child care 
services and programs at the local level.  The board shall, from 
time to time, review the budgets, expenditures and development 
of each child care service and program to which a grant money 
has been made available pursuant to sections 245.83 to 245.87. 
     Sec. 6.  Minnesota Statutes 1982, section 245.86, is 
amended to read: 
    245.86 [AUTHORIZATION TO COUNTIES AND MUNICIPALITIES TO 
CONTRACT OR MAKE GRANTS.] 
    Any county or municipality may contract for services or 
make grants from special tax revenues or from its general fund 
to any organization, governmental or corporate, for the same 
purposes for which the commissioner is authorized to make grants 
allocations by sections 245.83 to 245.87. 
     Sec. 7.  Minnesota Statutes 1982, section 245.87, is 
amended to read: 
    245.87 [ALLOCATIONS.] 
    For the purposes of section 245.84, subdivision 2 grants 
shall be distributed, the commissioner shall allocate money 
appropriated between the metropolitan area, comprising the 
counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and 
Washington, and the area outside the metropolitan area so that 
no more than 55 percent of the total fund goes to either area 
after excluding allocations for migrant day care services, 
administrative costs and statewide projects.  At least ten 
percent of the total program allocation under section 245.84, 
subdivision 1 shall be designated for interim financing.  The 
commissioner is further instructed that the allocation in each 
area be based on a need and population basis. 
     Sec. 8.  [DEADLINES.] 
     For state fiscal year 1984, counties shall inform the 
commissioner as required under section 3 no later than July 15, 
1983, and the commissioner shall allocate money as required 
under section 3 no later than September 1, 1983.  
    Sec. 9.  [SCHEDULE FOR PARTICIPATION.] 
    The commissioner of public welfare shall report to the 
legislature by January 1, 1984, with a schedule for requiring 
additional counties to provide child care services under section 
3.  
    Sec. 10.  [EFFECTIVE DATE.] 
    Sections 1 to 9 are effective July 1, 1983. 

                                ARTICLE 3

                              FEE INCREASES
    Section 1.  Minnesota Statutes 1982, section 357.021, 
subdivision 2, is amended to read: 
    Subd. 2.  [FEE AMOUNTS.] The fees to be charged and 
collected by the clerk of district court shall be as follows: 
    (1) In every civil action or proceeding in said court, the 
plaintiff, petitioner, or other moving party shall pay, when the 
first paper on his part is filed in said action, a fee of $20, 
except that in an action for marriage dissolution, a the fee of 
$35 is $55. 
    The defendant or other adverse or intervening party, or any 
one or more of several defendants or other adverse or 
intervening parties appearing separately from the others, shall 
pay, when the first paper on his or their part is filed in said 
action, a fee of $15. 
    The party requesting a trial by jury shall pay $15. 
    The fees above stated shall be the full trial fee 
chargeable to said parties irrespective of whether trial be to 
the court alone, to the court and jury, or disposed of without 
trial, and shall include the entry of judgment in the action, 
but does not include copies or certified copies of any papers so 
filed or proceedings under chapter 106, except the provisions 
therein as to appeals. 
    (2) Certified copy of any instrument from a civil or 
criminal proceeding $5 and $3.50 for an uncertified copy. 
     (3) Issuing a subpoena $1 for each name. 
     (4) Issuing an execution and filing the return thereof; 
issuing a writ of attachment, injunction, habeas corpus, 
mandamus, quo warranto, certiorari, or other writs not 
specifically mentioned, $5. 
     (5) Issuing a transcript of judgment, or for filing and 
docketing a transcript of judgment from another court, $5. 
     (6) Filing and entering a satisfaction of judgment, partial 
satisfaction or assignment of judgment, $5. 
     (7) Certificate as to existence or non-existence of 
judgments docketed, $1 for each name certified to and $1 for 
each judgment certified to. 
     (8) Filing and indexing trade name; or recording notary 
commission; or recording basic science certificate; or recording 
certificate of physicians, osteopaths, chiropractors, 
veterinarians or optometrists, $5. 
     (9) For the filing of each partial, final, or annual 
account in all trusteeships, $10. 
     (10) All other services required by law for which no fee is 
provided such fee as compares favorably with those herein 
provided, or such as may be fixed by rule or order of the court. 
    Sec. 2.  Minnesota Statutes 1982, section 357.021, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [CERTAIN FEE PURPOSES.] Of the marriage 
dissolution fee collected pursuant to subdivision 1, the clerk 
shall pay $15 $35 to the state treasurer to be deposited in the 
general fund to be used as follows:  $15 for the purposes of 
funding grant programs for emergency shelter services and 
support services to battered women under sections 241.61 to 
241.66 and for administering displaced homemaker programs 
established under section 4.40; and $20 is appropriated to the 
commissioner of corrections for the purpose of funding emergency 
shelter services and support services to battered women, on a 
matching basis with local money for 20 percent of the costs and 
state money for 80 percent.  Of the $15 for the purposes of 
funding grant programs for emergency shelter services and 
support services to battered women under sections 241.61 to 
241.66 and for administering displaced homemaker programs 
established under section 4.40, $6.75 is appropriated to the 
commissioner of corrections and $8.25 is appropriated to the 
commissioner of economic security.  The state treasurer shall 
identify and report to the commissioner of finance all amounts 
deposited in the general fund under this section. 
    Sec. 3.  Minnesota Statutes 1982, section 517.08, 
subdivision 1b, is amended to read:  
    Subd. 1b.  [TERM OF LICENSE; FEE.] The clerk shall examine 
upon oath the party applying for a license relative to the 
legality of the contemplated marriage.  If at the expiration of 
a five-day period, he is satisfied that there is no legal 
impediment to it, he shall issue the license, containing the 
full names of the parties before and after marriage, and county 
and state of residence, with the district court seal attached, 
and make a record of the date of issuance.  The license shall be 
valid for a period of six months.  In case of emergency or 
extraordinary circumstances, a judge of the county court or a 
judge of the district court of the county in which the 
application is made, may authorize the license to be issued at 
any time before the expiration of the five days.  The clerk 
shall collect from the applicant a fee of $30 $40 for 
administering the oath, issuing, recording, and filing all 
papers required, and preparing and transmitting to the state 
registrar of vital statistics the reports of marriage required 
by this section.  If the license should not be used within the 
period of six months due to illness or other extenuating 
circumstances, it may be surrendered to the clerk for 
cancellation, and in that case a new license shall issue upon 
request of the parties of the original license without fee.  A 
clerk who knowingly issues or signs a marriage license in any 
manner other than as provided in this section shall pay to the 
parties aggrieved an amount not to exceed $1,000. 
    Sec. 4.  Minnesota Statutes 1982, section 517.08, 
subdivision 1c, is amended to read:  
    Subd. 1c.  [DISPOSITION OF LICENSE FEE.] Of the marriage 
license fee collected pursuant to subdivision 1b, the clerk 
shall pay $15 $25 to the state treasurer to be deposited in the 
general fund to be used as follows:  $15 for the purposes of 
funding grant programs for emergency shelter services and 
support services to battered women under sections 241.61 to 
241.66 and for administering displaced homemaker programs 
established by July 1, 1983, under section 4.40; and $10 is 
appropriated to the commissioner of economic security for the 
purpose of funding displaced homemaker programs established 
after July 1, 1983, under section 4.40 in areas of the state 
where those programs previously did not exist or adjunct 
programs that extend access to current programs in northeastern 
Minnesota, on a matching basis with local funds providing 20 
percent of the costs and state funds providing 80 percent.  Of 
the $15 for the purposes of funding grant programs for emergency 
shelter services and support services to battered women under 
sections 241.61 to 241.66 and for administering displaced 
homemaker programs established by July 1, 1983, under section 
4.40, $6.75 is appropriated to the commissioner of corrections 
and $8.25 is appropriated to the commissioner of economic 
security.  
    The state treasurer shall identify and report to the 
commissioner of finance all amounts deposited in the general 
fund and appropriated under this section.  
    Sec. 5.  [EFFECTIVE DATE.] 
    This article is effective July 1, 1983, and applies to all 
licenses issued and dissolution petitions filed on or after that 
date. 

                               ARTICLE 4

                       MATERNAL AND CHILD HEALTH
    Section 1.  Minnesota Statutes 1982, section 145.881, is 
amended to read: 
    145.881 [MATERNAL AND CHILD HEALTH ADVISORY TASK FORCE.] 
    Subdivision 1.  [COMPOSITION OF TASK FORCE.] The 
commissioner shall establish and appoint a maternal and child 
health advisory task force consisting of 15 members who will 
provide equal representation from:  
    (1) professionals with expertise in maternal and child 
health services;  
    (2) representatives of local health boards as defined in 
section 145.913; and 
    (3) consumer representatives interested in the health of 
mothers and children.  
    No members shall be employees of the state department of 
health.  Task force members shall be appointed and removed and 
terms shall expire as provided in section 15.059, subdivision 
6.  Notwithstanding section 15.059, subdivisions 5 and 6, the 
maternal and child health advisory task force shall terminate on 
June 30, 1987.  
    Subd. 2.  [DUTIES.] The advisory task force shall meet on a 
regular basis to perform the following duties:  
    (a) Review and report on the health care needs of mothers 
and children throughout the state of Minnesota;  
    (b) Review and report on the type, frequency and impact of 
maternal and child health care services provided to mothers and 
children under existing maternal and child health care programs, 
including programs administered by the commissioner of health;  
    (c) Establish, review, and report to the commissioner a 
list of program guidelines and criteria which the advisory task 
force considers essential to providing an effective maternal and 
child health care program to low income, populations and high 
risk patients persons and fulfilling the purposes defined in 
section 145.88;  
    (d) Review staff recommendations of the department of 
health regarding maternal and child health grant awards before 
the awards are made;  
    (e) Make recommendations to the commissioner for the use of 
other federal and state funds available to meet maternal and 
child health needs;  
    (f) Make recommendations to the commissioner of health on 
priorities for funding the following maternal and child health 
services:  (1) prenatal, delivery and postpartum care, (2) 
comprehensive health care for children, especially from birth 
through five years of age, (3) adolescent health services, (4) 
family planning services, (5) preventive dental care, (6) 
special services for chronically ill and handicapped children 
and (7) any other services which promote the health of mothers 
and children; and 
    (g) Make recommendations to the commissioner of health on a 
the process to distribute, award and administer the maternal and 
child health block grant funds after July 1, 1983 that will 
fulfill the purposes of section 145.88.  
    Sec. 2.  Minnesota Statutes 1982, section 145.882, is 
amended to read: 
    145.882 [MATERNAL AND CHILD HEALTH BLOCK GRANT 
DISTRIBUTION.] 
    The maternal and child health care block grant shall be 
distributed to the same recipients that received funds during 
the previous year until July 1, 1983.  A reduction in federal 
funding shall be distributed to reflect a proportional reduction 
for each recipient.  
     Recipients of maternal and child health grants for special 
projects in state fiscal year 1983 shall continue to be funded 
at the same level as in state fiscal year 1983 until September 
30, 1985, if they comply with the provisions of sections 
145.881, and 2 to 7.  These recipients are also eligible to 
apply for state grants under sections 3 to 7.  Any decrease in 
the amount of federal funding to the state for the maternal and 
child health block grant shall be apportioned to reflect a 
proportional decrease for each recipient until September 30, 
1985.  Any increase in the amount of federal funding to the 
state shall be distributed for services to children with 
handicaps and to special projects as provided in sections 3 to 
7, except that an amount not to exceed ten percent may be 
retained by the commissioner of health to address cost of living 
increases and increases in supplies and services.  
     After September 30, 1985, the advisory task force shall 
review and recommend the proportion of maternal and child health 
block grant funds to be expended for indirect costs, direct 
services and special projects.  The proportion of funds expended 
in direct services through special projects shall be maintained 
at not less than the level expended in state fiscal year 1984.  
    The commissioner shall prepare, with the advice of the 
advisory task force, an annual report to the legislature which 
details the distribution of maternal and child health block 
grant funds, including the amounts to be expended for indirect 
costs, direct services, and special projects.  The report shall 
also identify the statewide needs of low income and high risk 
populations and the department of health's plans for meeting 
their needs.  The legislature must receive the report no later 
than January of each year.  
    Sec. 3.  [145.883] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For purposes of sections 145.881, 
145.882, and 3 to 7, the terms defined in this section shall 
have the meanings given them.  
    Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of health.  
    Subd. 3.  [QUALIFIED PROGRAM.] "Qualified program" means a 
program with professional maternal and child health care staff 
which is established for the purpose of providing one or more 
essential services in maternal and child health care to target 
populations of low income and high risk persons.  Nothing in 
this subdivision shall imply that every person served must take 
a means test.  
    Subd. 4.  [ESSENTIAL SERVICES.] "Essential services" means 
(a) prenatal, delivery, and post partum care; (b) comprehensive 
health care for children from birth through five years of age; 
(c) adolescent health services; (d) family planning services, as 
defined in section 145.912, subdivision 9; (e) preventive dental 
care; or (f) special services for chronically ill children and 
for handicapped children.  
    Subd. 5.  [LOW INCOME.] "Low income" means an individual or 
family with an income determined to be at or below 175 percent 
of the income official poverty line defined by the office of 
management and budget and revised annually in accordance with 
United States Code, title 42, section 9902, as amended through 
December 31, 1982.  With respect to an individual who is a high 
risk person, "low income" means that the income of the high risk 
person or the person's family is determined to be at or below 
200 percent of the income official poverty line defined by the 
office of management and budget and revised annually in 
accordance with United States Code, title 42, section 9902, as 
amended through December 31, 1982.  The commissioner shall 
establish the low income level for eligibility for services to 
children with handicaps.  
    Subd. 6.  [HIGH RISK PERSON.] "High risk person" means a 
mother or child with a condition which significantly increases 
the probability of disease, injury, death, or other adverse 
health-related problem.  Determination that a condition results 
in high risk shall be based on well validated, scientific 
studies.  
    Subd. 7.  [SPECIAL PROJECT.] "Special project" means a 
qualified program that receives maternal and child health block 
grant money and is administered by a public or private nonprofit 
agency other than the Minnesota department of health.  A special 
project may not impose residency requirements, other than state 
residence, as a condition of receiving essential services.  A 
special project that can demonstrate a need to reduce services 
as a result of high demand for these services from outside the 
project's proposed service area may apply for additional funds. 
Any special project providing statewide essential services may 
serve a population that is low income or high risk.  
    Subd. 8.  [MATERNAL AND CHILD HEALTH BLOCK GRANT MONEY.] 
"Maternal and child health block grant money" means the money 
received by the state from the federal maternal and child health 
block grant.  The commissioner shall carry forward from state 
fiscal year 1985, and succeeding years, only sufficient funds 
for qualified programs approved through the federal fiscal year. 
    Sec. 4.  [145.884] [GRANTS TO QUALIFIED PROGRAMS.] 
    Subdivision 1.  [RULES.] The commissioner shall, in the 
name of the state and within the limit of the federal maternal 
and child health block grant appropriation, make grants to 
public and private nonprofit agencies administering qualified 
programs of maternal and child health care services.  The 
commissioner shall promulgate rules for the administration of 
grants authorized by this subdivision.  The rules shall 
establish and contain as a minimum:  
    (a) procedures for grant applications;  
    (b) conditions and procedures for the administration of 
grants;  
    (c) criteria of eligibility for grants; and 
    (d) other matters the commissioner finds necessary for the 
proper administration of the grant program.  
    Subd. 2.  [PRIORITY CRITERIA FOR GRANTS.] Any public or 
private nonprofit agency providing or planning to provide 
services in maternal and child health care to an identified low 
income and high risk population may apply to the commissioner 
for a maternal and child health care grant.  The commissioner 
shall, when making grants, give priority to qualified programs 
that provide essential services in maternal and child health 
care to a target population of low income and high risk 
persons.  In distributing any increase in federal funding to 
special projects, the commissioner shall give priority to grant 
applications for special projects located outside the 
metropolitan area for at least 50 percent of the increased 
funding.  
    Sec. 5.  [145.885] [APPLICATION FOR A GRANT.] 
    An application for a grant shall be submitted to the 
commissioner at a time and in a form and manner as the 
commissioner prescribes.  Department of health technical staff 
shall be available to provide technical assistance in 
development of grant applications.  The application must contain:
    (a) A complete description of the program and the manner in 
which the applicant intends to conduct the program;  
    (b) A budget and justification for the amount of grant 
funds requested;  
    (c) A description of the target population served by the 
qualified program and estimates of the number of low income or 
high risk patients the program is expected to serve;  
    (d) The name or names of the person or persons who shall 
have primary responsibility for the administration and delivery 
of services of the qualified program; and 
    (e) The reporting and accounting procedures to be followed 
by the qualified agency to enable the commissioner to evaluate 
the activities of the qualified program.  
    Sec. 6.  [145.886] [GRANT REVIEW PROCESS.] 
    Primary review of all grant applications shall be conducted 
by the department of health technical staff.  All technically 
completed applications will be forwarded for secondary review to 
a grants review panel established by the commissioner.  A 
majority of the grants review panel must be professionals with 
expertise in maternal and child health care.  No member of the 
panel may be an employee of a public or private nonprofit agency 
receiving or applying for maternal and child health block grant 
money.  The advisory task force shall review the recommendations 
of the grants review panel for comment to the commissioner.  The 
commissioner shall award grants under sections 5 and 6 only 
after receiving the comments and recommendation of the grants 
review panel and the advisory task force on completed grant 
applications.  
    Sec. 7.  [145.888] [LIMITATIONS.] 
    Grants awarded to qualified programs under sections 5 to 7 
shall not exceed 75 percent of the estimated annual cost of the 
qualified program for the fiscal year for which the grant is 
awarded.  
    Sec. 8.  [145.889] [RULES.] 
    The commissioner may adopt temporary and permanent rules 
for the efficient administration of sections 1 to 8.  The 
temporary rules need not be adopted in compliance with chapter 
14 and shall be effective for 360 days or until the permanent 
rules are adopted, whichever occurs first.  The temporary rules 
shall be effective upon adoption by the commissioner and shall 
be published in the State Register as soon thereafter as 
possible.  
    Sec. 9.  [EFFECTIVE DATE.] 
    Sections 1 to 8 are effective the day following final 
enactment. 

                               ARTICLE 5 

         MEDICAL ASSISTANCE AND GENERAL ASSISTANCE MEDICAL CARE
    Section 1.  Minnesota Statutes 1982, section 245.62, is 
amended to read: 
    245.62 [COMMUNITY MENTAL HEALTH PROGRAM; TAX LEVY CENTER.] 
    Subdivision 1.  [ESTABLISHMENT.] Any city, county, town, or 
any combination thereof, or private nonprofit corporation may 
establish a community mental health services program and may 
establish clinics and staff same with persons specially trained 
in psychiatry and related fields center.  
    Subd. 2.  [DEFINITION.] A community mental health center is 
a private nonprofit corporation or public agency approved under 
the temporary and permanent rules promulgated by the 
commissioner pursuant to subdivision 4.  
    Subd. 3.  [CLINICAL DIRECTOR.] All community mental health 
center services shall be provided under the clinical direction 
of a licensed consulting psychologist licensed under sections 
148.88 to 148.98, or a physician who is board certified or 
eligible for board certification in psychiatry, and who is 
licensed under section 147.02.  
    Subd. 4.  [RULES.] The commissioner shall promulgate 
temporary and permanent rules to establish standards for the 
designation of an agency as a community mental health center. 
These standards shall include, but are not limited to:  
    (a) provision of mental health services in the prevention, 
identification, treatment and aftercare of emotional disorders, 
chronic and acute mental illness, mental retardation and 
developmental disabilities, and alcohol and drug abuse and 
dependency, including the services listed in section 245.61 
except detoxification services;  
    (b) establishment of a community mental health center board 
pursuant to section 245.66; and 
    (c) approval pursuant to section 245.69, subdivision 2.  
    Sec. 2.  Minnesota Statutes 1982, section 245.66, is 
amended to read: 
    245.66 [COMMUNITY MENTAL HEALTH CENTER BOARDS.] 
    Every city, county, town, combination thereof or nonprofit 
corporation establishing a community mental health center under 
contract with a county board or human service board shall, 
before it may come within the provisions of sections 245.61 to 
245.69 and receive funds from the county board or human service 
board, shall establish a community mental health center board.  
The community mental health center boards board may include 
county commissioner representatives from each participating 
county and shall be representative of local health departments, 
medical societies, hospital boards, lay associations concerned 
with mental health, mental retardation and chemical dependency, 
labor, agriculture, business, civic and professional groups and 
the general public.  Membership may include a representative 
from any county which purchases substantial services from the 
community mental health board. the local population, including 
at least health and human service professions and advocate 
associations, other fields of employment, and the general 
public.  Each community mental health center board shall be 
responsible for the governing governance and performance of its 
center and shall be responsible for the performance of the 
center under any contracts entered into with a county board of 
commissioners or human services board.  This governing shall 
include determination of the services to be provided by the 
community mental health center, establishment of the annual 
budget, appointment of the center director, and establishment of 
personnel standards and compensation for employees of the center.
    Sec. 3.  Minnesota Statutes 1982, section 256.01, 
subdivision 2, is amended to read:  
    Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
section 241.021, subdivision 2, the commissioner of public 
welfare shall: 
    (1) Administer and supervise all forms of public assistance 
provided for by state law and other welfare activities or 
services as may from time to time be vested in the commissioner. 
    (2) Administer and supervise all child welfare activities; 
promote the enforcement of laws protecting defective, 
illegitimate, dependent, neglected and delinquent children; 
license and supervise child-caring and child-placing agencies 
and institutions; supervise the care of children in boarding and 
foster homes or in private institutions; and generally perform 
all functions relating to the field of child welfare now vested 
in the state board of control. 
    (3) Administer and supervise all non-institutional service 
to handicapped persons, including the blind, the deaf, the 
tuberculous, the crippled, and otherwise handicapped persons.  
The authority and power conferred by this subdivision shall 
include the authority and power to provide and contract for the 
care and treatment of qualified indigent children in facilities 
other than those located and available at state hospitals when 
it is not feasible to provide the service in state hospitals. 
    (4) Assist and actively cooperate with other departments, 
agencies and institutions, local, state, and federal, by 
performing services in conformity with the purposes of Laws 
1939, Chapter 431. 
    (5) Act as the agent of and cooperate with the federal 
government in matters of mutual concern relative to and in 
conformity with the provisions of Laws 1939, Chapter 431, 
including the administration of any federal funds granted to the 
state to aid in the performance of any functions of the 
commissioner as specified in Laws 1939, Chapter 431, and 
including the promulgation of rules making uniformly available 
medical care benefits to all recipients of public assistance, at 
such times as the federal government increases its participation 
in assistance expenditures for medical care to recipients of 
public assistance, the cost thereof to be borne in the same 
proportion as are grants of aid to said recipients. 
    (6) Establish and maintain any administrative units 
reasonably necessary for the performance of administrative 
functions common to all divisions of the department. 
    (7) Administer and supervise any additional welfare 
activities and services as may, from time to time, hereafter be 
vested by law in the state department. 
    (8) The commissioner is hereby specifically constituted as 
guardian of both the estate and the person of all the wards of 
the state of Minnesota and other persons the guardianship of 
whom has been heretofore vested in the state board of control, 
whether by operation of law or by an order of court, without any 
further act or proceeding whatever, except as to persons 
committed as mentally retarded or epileptic.  All of said 
guardianships, and the funds and property of the same, are 
hereby transferred to and vested in said commissioner, and said 
commissioner is hereby constituted a legal entity and is hereby 
empowered to act as guardian under any laws of this state 
heretofore conferring such powers upon the state board of 
control. 
    (9) Act as coordinating referral and informational center 
on requests for service for newly arrived immigrants coming to 
Minnesota. 
    (10) The specific enumeration of powers and duties as 
hereinabove set forth shall in no way be construed to be a 
limitation upon the general transfer of powers herein contained. 
    (11) Establish county, regional, or state-wide schedules of 
maximum fees and charges which may be paid by local agencies for 
medical, dental, surgical, hospital, nursing and nursing home 
care and medicine and medical supplies under all programs of 
medical care provided by the state and for congregate living 
care under the income maintenance programs. 
    (12) Have the authority to conduct and administer 
experimental projects to test methods and procedures of 
administering assistance and services to recipients or potential 
recipients of public welfare.  To carry out such experimental 
projects, it is further provided that the commissioner of public 
welfare is authorized to waive the enforcement of existing 
specific statutory program requirements, regulations, and 
standards in one or more counties.  The order establishing the 
waiver shall provide alternative methods and procedures of 
administration, shall not be in conflict with the basic 
purposes, coverage, or benefits provided by law, and in no event 
shall the duration of a project exceed two years.  It is further 
provided that no order establishing an experimental project as 
authorized by the provisions of this section shall become 
effective until the following conditions have been met: 
    (a) The proposed comprehensive plan including estimated 
project costs and the proposed order establishing the waiver 
shall be filed with the secretary of the senate and chief clerk 
of the house of representatives at least 60 days prior to its 
effective date. 
    (b) The secretary of health, education, and welfare of the 
United States has agreed, for the same project, to waive state 
plan requirements relative to state-wide uniformity. 
    (c) A comprehensive plan, including estimated project 
costs, shall be approved by the legislative advisory commission 
and filed with the commissioner of administration.  
    (13) In accordance with federal requirements establish 
procedures to be followed by local welfare boards in creating 
citizen advisory committees, including procedures for selection 
of committee members. 
    (14) Promulgate, by rule, standards of administration to be 
applied by local welfare boards administering state and county 
financed programs of medical assistance pursuant to chapter 
256B, general relief medical care pursuant to section 256D.02, 
subdivision 4 and medical, hospital, and surgical care for 
persons eligible for general assistance pursuant to chapter 
256D, or for indigent persons whose costs of hospitalization are 
paid pursuant to sections 261.21 to 261.232.  The rules shall 
specify a uniform standard of performance and a tolerated error 
rate, but shall not specify the minimum number of personnel to 
be employed by a local agency if the agency operates at the 
specified standard of performance or at or below the tolerated 
error rate.  The commissioner may deduct from the earned 
administrative reimbursements of a county a penalty for the 
county's failure to comply with the standards of 
administration.  The penalty shall be fixed by the commissioner 
as a percentage of the overexpenditure caused by improper 
administration, beyond an initial tolerated amount of 
overexpenditure.  In the event that fiscal sanctions are imposed 
by the federal government because of improper administration of 
the programs, one half of the amount of the sanctions 
attributable to local agency performance shall be deducted from 
administrative reimbursement otherwise due the county Allocate 
federal fiscal disallowances or sanctions which are based on 
quality control error rates for the aid to families with 
dependent children, medical assistance, or food stamp program in 
the following manner:  
    (a) One-half of the total amount of the disallowance shall 
be borne by the county boards responsible for administering the 
programs and shall be shared by each county board in the same 
proportion as that county's expenditures for the sanctioned 
program are to the total of all counties' expenditures for that 
program.  Each county shall pay its share of the disallowance to 
the state of Minnesota.  When a county fails to pay the amount 
due hereunder, the commissioner may deduct the amount from 
reimbursement otherwise due the county, or the attorney general, 
upon the request of the commissioner, may institute civil action 
to recover the amount due. 
    (b) Notwithstanding the provisions of paragraph (a), if the 
disallowance results from knowing noncompliance by one or more 
counties with a specific program instruction, and that knowing 
noncompliance is a matter of official county board record, the 
commissioner may require payment or recover from the county or 
counties, in the manner prescribed in paragraph (a), an amount 
equal to the portion of the total disallowance which resulted 
from the noncompliance, and may distribute the balance of the 
disallowance according to paragraph (a).  
    Sec. 4.  Minnesota Statutes 1982, section 256.045, 
subdivision 3, is amended to read: 
    Subd. 3.  [STATE AGENCY HEARINGS.] In counties in which the 
commissioner of welfare has not appointed a local welfare 
referee, any person applying for or receiving any of the forms 
of public assistance described in subdivision 2 whose 
application for assistance is denied, not acted upon with 
reasonable promptness, or whose assistance is suspended, 
reduced, or terminated by a local agency, or any patient or 
relative aggrieved by an order of the commissioner under section 
252.27, may contest that action or decision before the state 
agency by submitting a written request for a hearing to the 
state agency within 30 days after receiving written notice of 
the action or decision, or within 90 days of such written notice 
if the applicant or, recipient, patient or relative shows good 
cause why the request was not submitted within the 30 day time 
limit.  A local agency or, applicant or, recipient, patient or 
relative aggrieved by a ruling of a local welfare referee may 
appeal the ruling to the state agency by filing a notice of 
appeal with the state agency within 30 days after receiving the 
ruling of the local welfare referee.  A state welfare referee 
shall conduct a hearing on the matter and shall recommend an 
order to the commissioner of public welfare.  In appeals from 
rulings of local welfare referees, the hearing may be limited, 
upon stipulation of the parties, to a review of the record of 
the local welfare referee. 
    Sec. 5.  Minnesota Statutes 1982, section 256.82, is 
amended by adding a subdivision to read: 
    Subd. 3.  [SETTING FOSTER CARE STANDARD RATES.] The 
commissioner shall annually establish minimum standard 
maintenance payment rates for foster care maintenance for all 
children in foster care, and require county boards to establish 
difficulty of care payment rates for all children in foster care.
    Sec. 6.  Minnesota Statutes 1982, section 256.966, 
subdivision 1, is amended to read: 
    Subdivision 1.  [IN GENERAL.] For the biennium ending June 
30, 1983 1985, the annual increase in the cost per service unit 
paid to any vendor under medical assistance and general 
assistance medical care shall not exceed eight five percent. The 
period for measuring growth shall be the state fiscal year., 
except that the five percent annual increase limitation applied 
to vendors under this subdivision does not apply to nursing 
homes licensed under chapter 144A or boarding care homes 
licensed under sections 144.50 to 144.56.  The estimated 
acquisition cost of prescription drug ingredients is not subject 
to the five percent increase limit, any general state payment 
reduction, or cost limitation described in this section, except 
as required under federal law or regulation.  For vendors 
enrolled in the general assistance medical care program, the 
annual increase in cost per service unit allowable during state 
fiscal year 1984 shall not exceed five percent.  The basis for 
measuring growth shall be the cost per service unit that would 
have been reimbursable in state fiscal year 1983 if payments had 
not been rateably reduced and if payments had been based on the 
50th percentile of usual and customary billings for medical 
assistance in 1978.  The increase in cost per service unit 
allowable for vendors in the general assistance medical care 
program during state fiscal year 1985 shall not exceed five 
percent.  The basis for measuring growth shall be state fiscal 
year 1984.  
    Sec. 7.  Minnesota Statutes 1982, section 256.967, is 
amended to read: 
    256.967 [MEDICAL CARE PAYMENTS; LIMITATIONS ON FEES.] 
    For the biennium ending June 30, 1985, all payments for 
vendors of medical care under general assistance medical care 
shall be based upon this standard:  the 50th percentile of usual 
and customary fees based upon medical assistance billings during 
calendar year 1978.  All payments for vendors of medical care 
under medical assistance shall be limited to the 50th percentile 
of usual and customary fees based upon billings during calendar 
year 1979 for physician services, dental care, vision care, 
podiatric services, chiropractic care, physical therapy, 
occupational therapy, speech pathologists, audiologists, mental 
health centers, psychologists, public health clinics, and 
independent laboratory and x-ray services. 
    Sec. 8.  Minnesota Statutes 1982, section 256.968, is 
amended to read: 
    256.968 [LIMITATION ON INPATIENT CHEMICAL DEPENDENCY 
TREATMENT.] 
    The commissioner of public welfare shall limit medical 
assistance and general assistance medical care reimbursement for 
treatment of alcoholism, chemical dependency or drug addiction 
which is rendered in a licensed hospital or certified nursing 
home to 10 30 days unless need for extended care is certified by 
the attending physician and has received prior approval from the 
commissioner. 
    Sec. 9.  [256.969] [INPATIENT HOSPITALS.] 
    Subdivision 1.  [ANNUAL COST INDEX.] The commissioner of 
public welfare shall develop a prospective payment system for 
inpatient hospital service under the medical assistance and 
general assistance medical care programs.  Rates paid to 
licensed hospitals for rate years beginning during the fiscal 
biennium ending June 30, 1985, shall not exceed an annual 
hospital cost index for the final rate allowed to the hospital 
for the preceding year not to exceed five percent in any event. 
The annual hospital cost index shall be obtained from an 
independent source representing a statewide average of inflation 
estimates determined for expense categories to include salaries, 
employee benefits, medical fees, raw food, medical supplies, 
pharmaceuticals, utilities, repairs and maintenance, insurance 
other than malpractice insurance, and other applicable expenses 
as determined by the commissioner.  The index shall reflect the 
regional differences within the state and include a one percent 
increase to reflect changes in technology.  The annual hospital 
cost index shall be published 30 days before the start of each 
calendar quarter and shall be applicable to all hospitals whose 
fiscal years start on or during the calendar quarter.  
     Subd. 2.  [RATES FOR INPATIENT HOSPITALS.] Rates paid to 
inpatient hospitals shall be based on a rate per admission.  
     Subd. 3.  [SPECIAL CONSIDERATIONS.] In determining the 
rate, the commissioner of public welfare will take into 
consideration whether the following circumstances exist:  
     (a) minimal medical assistance and general assistance 
medical care utilization;  
     (b) unusual length of stay experience; and 
     (c) disproportionate numbers of low income patients served. 
     Subd. 4.  [APPEALS BOARD.] An appeals board shall be 
established for purposes of hearing reports for changes in the 
rate per admission.  The appeals board shall consist of two 
public representatives, two representatives of the hospital 
industry, and one representative of the business or consumer 
community.  The appeals board shall advise the commissioner on 
adjustments to hospital rates under this section.  
     Subd. 5.  [APPEAL RIGHTS.] Nothing in this section 
supersedes the contested case provisions of chapter 14, the 
Administrative Procedure Act.  
    Subd. 6.  [RULES.] The commissioner of public welfare shall 
promulgate temporary and permanent rules to implement a system 
of prospective payment for inpatient hospital services pursuant 
to chapter 14, the Administrative Procedure Act.  
    Sec. 10.  Minnesota Statutes 1982, section 256B.02, 
subdivision 8, is amended to read:  
    Subd. 8.  "Medical assistance" or "medical care" means 
payment of part or all of the cost of the following care and 
services for eligible individuals whose income and resources are 
insufficient to meet all of such cost: 
    (1) Inpatient hospital services.  A second medical opinion 
is required prior to reimbursement for elective surgeries.  The 
commissioner shall publish in the State Register a proposed list 
of elective surgeries that require a second medical opinion 
prior to reimbursement.  The list is not subject to the 
requirements of sections 14.01 to 14.70.  The commissioner's 
decision whether a second medical opinion is required, made in 
accordance with rules governing that decision, is not subject to 
administrative appeal.  
    (2) Skilled nursing home services and services of 
intermediate care facilities. 
    (3) Physicians' services. 
    (4) Outpatient hospital or nonprofit community health 
clinic services or physician-directed clinic services.  The 
physician-directed clinic staff shall include at least two 
physicians, one of whom is on the premises whenever the clinic 
is open, and all services shall be provided under the direct 
supervision of the physician who is on the premises.  Hospital 
outpatient departments are subject to the same limitations and 
reimbursements as other enrolled vendors for all services, 
except initial triage, emergency services, and services not 
provided or immediately available in clinics, physicians' 
offices, or by other enrolled providers.  "Emergency services" 
means those medical services required for the immediate 
diagnosis and treatment of medical conditions that, if not 
immediately diagnosed and treated, could lead to serious 
physical or mental disability or death or are necessary to 
alleviate severe pain.  Neither the hospital, its employees, nor 
any physician or dentist, shall be liable in any action arising 
out of a determination not to render emergency services or care 
if reasonable care is exercised in determining the condition of 
the person, or in determining the appropriateness of the 
facilities, or the qualifications and availability of personnel 
to render these services consistent with this section.  
    (5) Community mental health center services, as defined in 
rules adopted by the commissioner pursuant to section 256B.04, 
subdivision 2, and provided by a community mental health center 
as defined in section 245.62, subdivision 2.  
    (5) (6) Home health care services. 
    (6) (7) Private duty nursing services. 
    (7) (8) Physical therapy and related services. 
    (8) (9) Dental services, excluding cast metal restorations. 
    (9) (10) Laboratory and x-ray services. 
    (10)(11) The following if prescribed by a licensed 
practitioner: drugs, eyeglasses, dentures, and prosthetic 
devices.  The commissioner shall designate a formulary committee 
which shall advise the commissioner on the names of drugs for 
which payment shall be made, recommend a system for reimbursing 
providers on a set fee or charge basis rather than the present 
system, and develop methods encouraging use of generic drugs 
when they are less expensive and equally effective as trademark 
drugs.  The commissioner shall appoint the formulary committee 
members no later than 30 days following July 1, 1981.  The 
formulary committee shall consist of nine members, four of whom 
shall be physicians who are not employed by the department of 
public welfare, and a majority of whose practice is for persons 
paying privately or through health insurance, three of whom 
shall be pharmacists who are not employed by the department of 
public welfare, and a majority of whose practice is for persons 
paying privately or through health insurance, a consumer 
representative, and a nursing home representative.  Committee 
members shall serve two year terms and shall serve without 
compensation.  The commissioner may establish a drug formulary.  
Its establishment and publication shall not be subject to the 
requirements of the administrative procedure act, but the 
formulary committee shall review and comment on the formulary 
contents.  Prior authorization may be required by the 
commissioner, with the consent of the drug formulary committee, 
before certain formulary drugs are eligible for payment.  The 
formulary shall not include:  drugs or products for which there 
is no federal funding; over the counter drugs, except for 
antacids, acetaminophen, family planning products, aspirin, 
insulin, prenatal vitamins, and vitamins for children under the 
age of seven; or any other over the counter drug identified by 
the commissioner, in consultation with the appropriate 
professional consultants under contract with or employed by the 
state agency, as necessary, appropriate and cost effective for 
the treatment of certain specified chronic diseases, conditions 
or disorders, and this determination shall not be subject to the 
requirements of chapter 14, the Administrative Procedure Act; 
nutritional products, except for those products needed for 
treatment of phenylketonuria, hyperlysinemia, maple syrup urine 
disease, a combined allergy to human milk, cow milk, and soy 
formula, or any other childhood or adult diseases, conditions, 
or disorders identified by the commissioner as requiring a 
similarly necessary nutritional product; anorectics; and drugs 
for which medical value has not been established.  Separate 
payment shall not be made for nutritional products for residents 
of long-term care facilities; payment for dietary requirements 
is a component of the per diem rate paid to these facilities.  
Payment to drug vendors shall not be modified before the 
formulary is established except that the commissioner shall not 
permit payment for any drugs which may not by law be included in 
the formulary, and his determination shall not be subject to 
chapter 14, the Administrative Procedure Act.  The commissioner 
may promulgate shall publish conditions for prohibiting payment 
for specific drugs after considering the formulary committee's 
recommendations.  
    The basis for determining the amount of payment shall be 
the actual acquisition costs of the drugs plus a fixed 
dispensing fee established by the commissioner.  Actual 
acquisition cost includes quantity and other special discounts 
except time and cash discounts.  Establishment of this fee shall 
not be subject to the requirements of the administrative 
procedure act.  Whenever a generically equivalent product is 
available, payment shall be on the basis of the actual 
acquisition cost of the generic drug, unless the prescriber 
specifically indicates "dispense as written" on the prescription 
as required by section 151.21, subdivision 2.  
     Notwithstanding the above provisions, implementation of any 
change in the fixed dispensing fee which has not been subject to 
the administrative procedure act shall be limited to not more 
than 180 days, unless, during that time, the commissioner shall 
have initiated rulemaking through the administrative procedure 
act.  
    (11) (12) Diagnostic, screening, and preventive services. 
    (12) (13) Health care pre-payment plan premiums and 
insurance premiums if paid directly to a vendor and 
supplementary medical insurance benefits under Title XVIII of 
the Social Security Act. 
    (13) (14) Abortion services, but only if one of the 
following conditions is met: 
     (a) The abortion is a medical necessity.  "Medical 
necessity" means (1) the signed written statement of two 
physicians indicating the abortion is medically necessary to 
prevent the death of the mother, and (2) the patient has given 
her consent to the abortion in writing unless the patient is 
physically or legally incapable of providing informed consent to 
the procedure, in which case consent will be given as otherwise 
provided by law; 
     (b) The pregnancy is the result of criminal sexual conduct 
as defined in section 609.342, clauses (c), (d), (e)(i), and 
(f), and the incident is reported within 48 hours after the 
incident occurs to a valid law enforcement agency for 
investigation, unless the victim is physically unable to report 
the criminal sexual conduct, in which case the report shall be 
made within 48 hours after the victim becomes physically able to 
report the criminal sexual conduct; or 
     (c) The pregnancy is the result of incest, but only if the 
incident and relative are reported to a valid law enforcement 
agency for investigation prior to the abortion. 
    (14) (15) Transportation costs incurred solely for 
obtaining emergency medical care or transportation costs 
incurred by non-ambulatory persons in obtaining emergency or 
non-emergency medical care when paid directly to an ambulance 
company, common carrier, or other recognized providers of 
transportation services.  For the purpose of this clause, a 
person who is incapable of transport by taxicab or bus shall be 
considered to be non-ambulatory. 
    (15) (16) To the extent authorized by rule of the state 
agency, costs of bus or taxicab transportation incurred by any 
ambulatory eligible person for obtaining non-emergency medical 
care. 
    (16) (17) Personal care attendant services provided by an 
individual, not a relative, who is qualified to provide the 
services, where the services are prescribed by a physician in 
accordance with a plan of treatment and are supervised by a 
registered nurse.  Payments to personal care attendants shall be 
adjusted annually to reflect changes in the cost of living or of 
providing services by the average annual adjustment granted to 
vendors such as nursing homes and home health agencies.  
    (16) (18) Any other medical or remedial care licensed and 
recognized under state law unless otherwise prohibited by law. 
    Sec. 11.  Minnesota Statutes 1982, section 256B.04, 
subdivision 14, is amended to read: 
    Subd. 14.  [COMPETITIVE BIDDING.] The commissioner shall 
utilize volume purchase through competitive bidding under the 
provisions of chapter 16, to provide the following items:  
    (1) Eyeglasses;  
    (2) Oxygen.  The commissioner shall provide for oxygen 
needed in an emergency situation on a short-term basis, until 
the vendor can obtain the necessary supply from the contract 
dealer;  
    (2) (3) Hearing aids and supplies; and 
    (3) (4) Durable medical equipment, including but not 
limited to: 
    (a) hospital beds;  
    (b) commodes;  
    (c) glide-about chairs;  
    (d) patient lift apparatus;  
    (e) wheelchairs and accessories;  
    (f) oxygen administration equipment;  
    (g) respiratory therapy equipment; and 
    (h) electronic diagnostic, therapeutic and life support 
systems.  
    Sec. 12.  Minnesota Statutes 1982, section 256B.04, is 
amended by adding a subdivision to read: 
    Subd. 15.  [UTILIZATION REVIEW.] Establish on a statewide 
basis a new program to safeguard against unnecessary or 
inappropriate use of medical assistance services, against excess 
payments, against unnecessary or inappropriate hospital 
admissions or lengths of stay, and against underutilization of 
services in pre-paid health plans, long-term care facilities or 
any health care delivery system subject to fixed rate 
reimbursement.  In implementing the program, the state agency 
shall utilize both pre-payment and post-payment review systems 
to determine if utilization is reasonable and necessary.  The 
determination of whether services are reasonable and necessary 
shall be made by the commissioner in consultation with a 
professional services advisory group appointed by the 
commissioner.  An aggrieved party may appeal the commissioner's 
determination pursuant to the contested case procedures of 
chapter 14.  
    Sec. 13.  Minnesota Statutes 1982, section 256B.041, 
subdivision 2, is amended to read: 
    Subd. 2.  [ACCOUNT.] An account is established in the state 
treasury from which medical assistance payments to vendors shall 
be made.  Into such this account there shall be deposited 
federal funds, state funds, county funds, and other moneys which 
are available and which may be paid to the state agency for 
medical assistance payments and reimbursements from counties or 
others for their share of such payments. 
    Sec. 14.  Minnesota Statutes 1982, section 256B.041, 
subdivision 5, is amended to read:  
    Subd. 5.  [PAYMENT BY COUNTY TO STATE TREASURER.] If 
required by federal law or rules promulgated thereunder, or by 
authorized regulation of the state agency, each county shall pay 
to the state treasurer the portion of medical assistance paid by 
the state for which it is responsible.  The county's share of 
cost shall be ten percent of that portion not met by federal 
funds. 
    The county shall advance its portion of medical assistance 
costs, based upon estimates submitted by the state agency to the 
county agency, stating the estimated expenditures for the 
succeeding month.  Upon the direction of the county agency, 
payment shall be made monthly by the county to the state for the 
estimated expenditures for each month.  Adjustment of any 
overestimate or underestimate based on actual expenditures shall 
be made by the state agency by adjusting the estimate for any 
succeeding month.  
    Sec. 15.  Minnesota Statutes 1982, section 256B.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  Medical assistance may be paid for any 
person: 
    (1) Who is a child eligible for or receiving adoption 
assistance payments under Title IV-E of the Social Security Act, 
42 U.S.C. Sections 670 to 676; or 
    (2) Who is a child eligible for or receiving foster care 
maintenance payments under Title IV-E of the Social Security 
Act, 42 U.S.C. Sections 670 to 676; or 
    (1) Who is a child eligible for or receiving adoption 
assistance payments under Title IV-E of the Social Security Act, 
42 U.S.C. Sections 670 to 676 United States Code, title 42, 
sections 670 to 676; or 
    (2) Who is a child eligible for or receiving foster care 
maintenance payments under Title IV-E of the Social Security 
Act, 42 U.S.C. Sections 670 to 676 United States Code, title 42, 
sections 670 to 676; or 
    (3) Who is eligible for or receiving public assistance, or 
a woman who is pregnant, as medically verified, and who would be 
eligible for assistance under the aid to families with dependent 
children program if the child had been born and living with the 
woman; or 
    (4) Who is eligible for or receiving meets the categorical 
eligibility requirements of the supplemental security income for 
the aged, blind and disabled program and the other eligibility 
requirements of this section; or 
    (5) Who except for the amount of income or resources would 
qualify for supplemental security income for the aged, blind and 
disabled, or aid to families with dependent children and is in 
need of medical assistance; or 
    (6) Who is under 21 years of age and in need of medical 
care that neither he nor his relatives responsible under 
sections 256B.01 to 256B.26 are financially able to provide; or 
     (7) Who is residing in a hospital for treatment of mental 
disease or tuberculosis and is 65 years of age or older and 
without means sufficient to pay the per capita hospital charge; 
and 
     (8) Who resides in Minnesota, or, if absent from the state, 
is deemed to be a resident of Minnesota in accordance with the 
regulations of the state agency; and 
     (9) Who alone, or together with his spouse, does not own 
real property other than the homestead.  For the purposes of 
this section, "homestead" means the house owned and occupied by 
the applicant as his dwelling place, together with the land upon 
which it is situated and an area no greater than two contiguous 
lots in a platted or laid out city or town or 80 contiguous 
acres in unplatted land.  Occupancy or exemption shall be 
determined as provided in chapter 510 and applicable law, 
including continuing exemption by filing notice under section 
510.07.  Real estate not used as a home may not be retained 
unless it produces net income applicable to the family's needs 
or the family is making a continuing effort to sell it at a fair 
and reasonable price or unless sale of the real estate would net 
an insignificant amount of income applicable to the family's 
needs, or unless the commissioner determines that sale of the 
real estate would cause undue hardship; and 
    (10) Who individually does not own more than $2,000 $3,000 
in cash or liquid assets, or if a member of a household with two 
family members (husband and wife, or parent and child), does not 
own more than $4,000 $6,000 in cash or liquid assets, plus $200 
for each additional legal dependent.  Cash and liquid assets may 
include a prepaid funeral contract and insurance policies with 
cash surrender value.  The value of the following shall not be 
included: 
    (a) the homestead, and (b) one motor vehicle licensed 
pursuant to chapter 168 and defined as:  (1) passenger 
automobile, (2) station wagon, (3) motorcycle, (4) motorized 
bicycle or (5) truck of the weight found in categories A to E, 
of section 168.013, subdivision 1e; and 
    (11) Who has or anticipates receiving an annual income not 
in excess of $2,600 for a single person, or $3,250 for two 
family members (husband and wife, parent and child, or two 
siblings), plus $625 for each additional legal dependent, or who 
has income in excess of these maxima and in the month of 
application, or during the three months prior to the month of 
application, incurs expenses for medical care that total more 
than one-half of the annual excess income in accordance with the 
regulations of the state agency.  In computing income to 
determine eligibility of persons who are not residents of long 
term care facilities, the commissioner shall disregard increases 
in income of social security or supplementary security income 
recipients due solely to increases required by sections 215(i) 
and 1617 of the social security act, and shall disregard income 
of disabled persons that is also disregarded in determining 
eligibility for supplemental aid under section 256D.37, 
subdivision 1, due solely to increases in federal retiree, 
survivor's, and disability insurance benefits, veterans 
administration benefits, and railroad retirement benefits in the 
percentage amount established in the biennial appropriations law 
unless prohibited by federal law or regulation.  If prohibited, 
the commissioner shall first seek a waiver.  In excess income 
cases, eligibility shall be limited to a period of six months 
beginning with the first of the month in which these medical 
obligations are first incurred; and 
    (12) Who has continuing monthly expenses for medical care 
that are more than the amount of his excess income, computed on 
a monthly basis, in which case eligibility may be established 
before the total income obligation referred to in the preceding 
paragraph is incurred, and medical assistance payments may be 
made to cover the monthly unmet medical need.  In licensed 
nursing home and state hospital cases, income over and above 
that required for justified needs, determined pursuant to a 
schedule of contributions established by the commissioner of 
public welfare, is to be applied to the cost of institutional 
care.  The commissioner of public welfare may establish a 
schedule of contributions to be made by the spouse of a nursing 
home resident to the cost of care and shall seek a waiver from 
federal regulations which establish the amount required to be 
contributed by either spouse when one spouse is a nursing home 
resident; and 
     (13) Who has applied or agrees to apply all proceeds 
received or receivable by him or his spouse from automobile 
accident coverage and private health care coverage to the costs 
of medical care for himself, his spouse, and children.  The 
state agency may require from any applicant or recipient of 
medical assistance the assignment of any rights accruing under 
private health care coverage.  Any rights or amounts so assigned 
shall be applied against the cost of medical care paid for under 
this chapter.  Any assignment shall not be effective as to 
benefits paid or provided under automobile accident coverage and 
private health care coverage prior to receipt of the assignment 
by the person or organization providing the benefits. 
    Sec. 16.  Minnesota Statutes 1982, section 256B.061, is 
amended to read: 
    256B.061 [ELIGIBILITY.] 
    If any individual has been determined to be eligible for 
medical assistance, it will be made available to him for care 
and services included under the plan and furnished in or after 
the third month before the month in which he made application 
for such assistance, if such individual was, or upon application 
would have been, eligible for medical assistance at the time the 
care and services were furnished.  The commissioner may limit, 
restrict, or suspend the eligibility of an individual for up to 
one year upon that individual's conviction of a criminal offense 
related to his application for or receipt of medical assistance 
benefits.  
    Sec. 17.  Minnesota Statutes 1982, section 256B.064, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [GROUNDS FOR MONETARY RECOVERY AND SANCTIONS 
AGAINST VENDORS.] The commissioner may seek monetary recovery 
and impose sanctions against vendors of medical care for any of 
the following:  fraud, theft, or abuse in connection with the 
provision of medical care to recipients of public assistance; a 
pattern of presentment of false or duplicate claims or claims 
for services not medically necessary; a pattern of making false 
statements of material facts for the purpose of obtaining 
greater compensation than that to which the vendor is legally 
entitled; suspension or termination as a Medicare vendor; and 
refusal to grant the state agency access during regular business 
hours to examine all records necessary to disclose the extent of 
services provided to program recipients.  No sanction may be 
imposed or monetary recovery obtained against any vendor of 
nursing home or convalescent care for providing services not 
medically necessary when the services provided were ordered by a 
licensed health professional not an employee of the vendor.  The 
determination of abuse or services not medically necessary shall 
be made by the commissioner in consultation with a review 
organization as defined in section 145.61 or other provider 
advisory committees as committee appointed by the commissioner 
on the recommendation of appropriate professional organizations. 
    Sec. 18.  Minnesota Statutes 1982, section 256B.07, is 
amended to read: 
    256B.07 [EXCEPTIONS IN DETERMINING RESOURCES.] 
    A local agency may, within the scope of regulations set by 
the commissioner of public welfare, waive the requirement of 
liquidation of excess assets when the liquidation would cause 
undue hardship.  Household goods and furniture in use in the 
home, wearing apparel, insurance policies with cash surrender 
value not in excess of $1,500 per insured person, and personal 
property used as a regular abode by the applicant or recipient, 
a prepaid funeral contract not in excess of $750 per person plus 
accrued interest of not more than $200, and a lot in a burial 
plot shall not be considered as resources available to meet 
medical needs. 
    Sec. 19.  Minnesota Statutes 1982, section 256B.14, 
subdivision 2, is amended to read: 
    Subd. 2.  [ACTIONS TO OBTAIN PAYMENT.] The state agency 
shall promulgate rules to determine the ability of responsible 
relatives to contribute partial or complete repayment of medical 
assistance furnished to recipients for whom they are responsible.
In determining the resource contribution of a spouse at the time 
of the first medical assistance application, all medical 
assistance exclusions shall be allowed, and a resource limit of 
$10,000 for nonexcluded resources shall be implemented.  Above 
these limits, a contribution of one-third of the excess 
resources shall be required.  These rules shall not require 
repayment when payment would cause undue hardship to the 
responsible relative or his or her immediate family.  The county 
agency shall give the responsible relative notice of the amount 
of the repayment. If the state agency or county agency finds 
that notice of the payment obligation was given to the 
responsible relative, but that the relative failed or refused to 
pay, a cause of action exists against the responsible relative 
for that portion of medical assistance granted after notice was 
given to the responsible relative, which the relative was 
determined to be able to pay.  
    The action may be brought by the state agency or the county 
agency in the county where assistance was granted, for the 
assistance, together with the costs of disbursements incurred 
due to the action.  
    In addition to granting the county or state agency a money 
judgment, the court may, upon a motion or order to show cause, 
order continuing contributions by a responsible relative found 
able to repay the county or state agency.  The order shall be 
effective only for the period of time during which the recipient 
receives medical assistance from the county or state agency. 
    Sec. 20.  Minnesota Statutes 1982, section 256B.17, 
subdivision 4, is amended to read: 
    Subd. 4.  [PERIOD OF INELIGIBILITY.] In any case where the 
uncompensated value of transferred resources exceeds $12,000, 
the commissioner shall require a period of ineligibility which 
exceeds 24 months, provided that the period of ineligibility 
bears a reasonable relationship to the excess uncompensated 
value of the transferred asset For any uncompensated transfer, 
the period of ineligibility shall be calculated by dividing the 
transferred amount by the statewide average monthly skilled 
nursing facility per diem for the previous calendar year to 
determine the number of months of ineligibility.  The individual 
shall remain ineligible until this fixed ineligibility period 
has expired, subject to the exclusions contained in section 15.  
    Sec. 21.  Minnesota Statutes 1982, section 256B.17, is 
amended by adding a subdivision to read: 
    Subd. 5.  [EXCLUSIONS FOR HOMESTEAD TRANSFERS.] 
Notwithstanding subdivision 4, an individual shall not be 
ineligible if the transferred property is a homestead as defined 
by section 256B.06, subdivision 1, and one of the following 
conditions applies:  
    (1) a satisfactory showing is made that the individual can 
reasonably be expected to return to the homestead as a permanent 
residence;  
    (2) title to the home was transferred to the individual's 
spouse, child who is under age 21, or blind or permanently and 
totally disabled child as defined in the supplemental security 
income program;  
    (3) a satisfactory showing is made that the individual 
intended to dispose of the home at fair market value or for 
other valuable consideration; or 
    (4) the local agency determines that denial of eligibility 
would cause undue hardship for the individual, based on imminent 
threat to the individual's health and well-being.  
    Sec. 22.  Minnesota Statutes 1982, section 256B.17, is 
amended by adding a subdivision to read: 
    Subd. 6.  [EXCEPTION FOR ASSET TRANSFERS.] Notwithstanding 
the provisions of subdivisions 1 through 5, an institutionalized 
spouse who applies for medical assistance on or after July 1, 
1983, may transfer liquid assets to his or her 
noninstitutionalized spouse without loss of eligibility if all 
of the following conditions apply:  
    (a) The noninstitutionalized spouse is not applying for or 
receiving assistance;  
    (b) The noninstitutionalized spouse has less than $10,000 
in liquid assets, including assets singly owned and 50 percent 
of assets owned jointly with the institutionalized spouse;  
    (c) The amount transferred, together with the 
noninstitutionalized spouse's own assets, totals no more than 
$10,000 in liquid assets; and 
    (d) The transfer may be effected only once, at the time of 
initial medical assistance application.  
    Sec. 23.  Minnesota Statutes 1982, section 256B.17, is 
amended by adding subdivision to read:  
    Subd. 7.  [CONFORMANCE WITH FEDERAL LAW.] Notwithstanding 
the other provisions of this section, uncompensated property 
transfers shall be treated no more restrictively than allowed by 
federal law.  
     Sec. 24.  Minnnsota Statutes 1982, section 256B.17, is 
amended by adding a subdivision to read: 
    Subd. 8.  [EFFECTIVE DATE.] Subdivisions 5, 6, and 7, and 
the changes in subdivision 4 made by section 20 apply to 
transfers made on or after the effective date of sections 20 to 
23, regardless of the individual's status in relation to 
eligibility for medical assistance.  
    Sec. 25.  Minnesota Statutes 1982, section 256B.27, 
subdivision 3, is amended to read: 
    Subd. 3.  The commissioner of public welfare, with the 
written consent of the recipient, on file wih the local welfare 
agency, shall be allowed access to all personal medical records 
of medical assistance recipients solely for the purposes of 
investigating whether or not:  (a) a vendor of medical care has 
submitted a claim for reimbursement, a cost report or a rate 
application which the vendor knows to be false in whole or in 
part; or (b) the medical care was medically necessary.  The 
vendor of medical care shall receive notification from the 
commissioner at least 24 hours before the commissioner gains 
access to such records.  The determination of abuse or provision 
of services not medically necessary shall be made by the 
commissioner in consultation with a review organization as 
defined in section 145.61 or other an advisory committees 
committee of vendors as appointed by the commissioner on the 
recommendation of appropriate professional organizations. 
Notwithstanding any other law to the contrary, a vendor of 
medical care shall not be subject to any civil or criminal 
liability for providing access to medical records to the 
commissioner of public welfare pursuant to this section.  
    Sec. 26.  Minnesota Statutes 1982, section 256B.27, 
subdivision 4, is amended to read: 
    Subd. 4.  [AUTHORIZATION OF COMMISSIONER TO EXAMINE 
RECORDS.] No A person shall determined to be eligible for 
medical assistance unless he has shall be deemed to have 
authorized the commissioner of public welfare in writing to 
examine all personal medical records developed while receiving 
medical assistance for the purpose of investigating whether or 
not a vendor has submitted a claim for reimbursement, a cost 
report or a rate application which the vendor knows to be false 
in whole or in part, or in order to determine whether or not the 
medical care provided was medically necessary.  A vendor of 
medical care shall require presentation of this written 
authorization before the state agency can obtain access to the 
records unless the vendor already has received written 
authorization.  
    Sec. 27.  [256B.69] [PREPAYMENT DEMONSTRATION PROJECT.] 
    Subdivision 1.  [PURPOSE.] The commissioner of public 
welfare shall establish a medical assistance demonstration 
project to determine whether prepayment combined with better 
management of health care services is an effective mechanism to 
ensure that all eligible individuals receive necessary health 
care in a coordinated fashion while containing costs.  For the 
purposes of this project, waiver of certain statutory provisions 
is necessary in accordance with this section.  
    Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
the following terms have the meanings given.  
    (a) "Commissioner" means the commissioner of public welfare.
For the remainder of this section, the commissioner's 
responsibilities for methods and policies for implementing the 
project will be proposed by the project advisory committees and 
approved by the commissioner.  
    (b) "Demonstration provider" means an individual, agency, 
organization, or group of these entities that participates in 
the demonstration project according to criteria, standards, 
methods, and other requirements established for the project and 
approved by the commissioner.  
    (c) "Eligible individuals" means those persons eligible for 
medical assistance benefits as defined in section 256B.06.  
    (d) "Limitation of choice" means suspending freedom of 
choice while allowing eligible individuals to choose among the 
demonstration providers.  
    Subd. 3.  [GEOGRAPHIC AREA.] The commissioner shall 
designate the geographic areas in which eligible individuals may 
be included in the demonstration project.  The geographic areas 
shall include one urban, one suburban, and at least one rural 
county.  In order to encourage the participation of long-term 
care providers, the project area may be expanded beyond the 
designated counties for eligible individuals over age 65.  
    Subd. 4.  [LIMITATION OF CHOICE.] The commissioner shall 
develop criteria to determine when limitation of choice may be 
implemented in the experimental counties.  The criteria shall 
ensure that all eligible individuals in the county have 
continuing access to the full range of medical assistance 
services as specified in subdivision 6.  Before limitation of 
choice is implemented, eligible individuals shall be notified 
and after notification, shall be allowed to choose only among 
demonstration providers.  After initially choosing a provider, 
the recipient is allowed to change that choice only at specified 
times as allowed by the commissioner.  
    Subd. 5.  [PROSPECTIVE PER CAPITA PAYMENT.] The project 
advisory committees with the commissioner shall establish the 
method and amount of payments for services.  The commissioner 
shall annually contract with demonstration providers to provide 
services consistent with these established methods and amounts 
for payment.  Notwithstanding section 62D.02, subdivision 1, 
payments for services rendered as part of the project may be 
made to providers that are not licensed health maintenance 
organizations on a risk-based, prepaid capitation basis.  
    If allowed by the commissioner, a demonstration provider 
may contract with an insurer, health care provider, nonprofit 
health service plan corporation, or the commissioner, to provide 
insurance or similar protection against the cost of care 
provided by the demonstration provider or to provide coverage 
against the risks incurred by demonstration providers under this 
section.  The recipients enrolled with a demonstration provider 
are a permissible group under group insurance laws and chapter 
62C, the Nonprofit Health Service Plan Corporations Act.  Under 
this type of contract, the insurer or corporation may make 
benefit payments to a demonstration provider for services 
rendered or to be rendered to a recipient.  Any insurer or 
nonprofit health service plan corporation licensed to do 
business in this state is authorized to provide this insurance 
or similar protection.  
    Payments to providers participating in the project are 
exempt from the requirements of sections 256.966 and 256B.03, 
subdivision 2.  The commissioner shall complete development of 
capitation rates for payments before delivery of services under 
this section is begun.  
    Subd. 6.  [SERVICE DELIVERY.] Each demonstration provider 
shall be responsible for the health care coordination for 
eligible individuals.  Demonstration providers:  
    (a) Shall authorize and arrange for the provision of all 
needed health services including but not limited to the full 
range of services listed in section 256B.02, subdivision 8, in 
order to ensure appropriate health care is delivered to 
enrollees;  
    (b) Shall accept the prospective, per capita payment from 
the commissioner in return for the provision of comprehensive 
and coordinated health care services for eligible individuals 
enrolled in the program;  
    (c) May contract with other health care and social service 
practitioners to provide services to enrollees; and 
    (d) Shall institute recipient grievance procedures 
according to the method established by the project, utilizing 
applicable requirements of chapter 62D.  Disputes not resolved 
through this process shall be appealable to the commissioner as 
provided in subdivision 11.  
    Subd. 7.  [ENROLLEE BENEFITS.] All eligible individuals 
enrolled by demonstration providers shall receive all needed 
health care services as defined in subdivision 6.  
    All enrolled individuals have the right to appeal if 
necessary services are not being authorized as defined in 
subdivision 11.  
    Subd. 8.  [PREADMISSION SCREENING WAIVER.] Except as 
applicable to the project's operation, the provisions of section 
256B.091 are waived for the purposes of this section for 
recipients enrolled with demonstration providers.  
    Subd. 9.  [REPORTING.] Each demonstration provider shall 
submit information as required by the commissioner, including 
data required for assessing client satisfaction, quality of 
care, cost, and utilization of services for purposes of project 
evaluation.  Required information shall be specified before the 
commissioner contracts with a demonstration provider.  
     Subd. 10.  [INFORMATION.] Notwithstanding any law or rule 
to the contrary, the commissioner may allow disclosure of the 
recipient's identity solely for the purposes of (a) allowing 
demonstration providers to provide the information to the 
recipient regarding services, access to services, and other 
provider characteristics, and (b) facilitating monitoring of 
recipient satisfaction and quality of care.  The commissioner 
shall develop and implement measures to protect recipients from 
invasions of privacy and from harassment.  
     Subd. 11.  [APPEALS.] A recipient may appeal to the 
commissioner a demonstration provider's delay or refusal to 
provide services.  The commissioner shall appoint a panel of 
health practitioners, including social service practitioners, as 
necessary to determine the necessity of services provided or 
refused to a recipient.  The deliberations and decisions of the 
panel replace the administrative review process otherwise 
available under chapter 256B.  The panel shall follow the time 
requirements and other provisions of the Code of Federal 
Regulations, title 42, sections 431.200 to 431.246.  The time 
requirements shall be expedited based on request by the 
individual who is appealing for emergency services.  If a 
service is determined to be necessary and is included among the 
benefits for which a recipient is enrolled, the service must be 
provided by the demonstration provider as specified in 
subdivision 5.  The panel's decision is a final agency action 
that may be appealed under the contested case provisions of 
chapter 14.  
    Sec. 28.  [256B.70] [DEMONSTRATION PROJECT WAIVER.] 
    Each hospital that participates as a provider in a 
demonstration project, established by the commissioner of public 
welfare to deliver medical assistance services on a prepaid, 
capitation basis, is exempt from the prospective payment system 
for inpatient hospital service during the period of its 
participation in that project.  
    Sec. 29.  Minnesota Statutes 1982, section 256D.03, 
subdivision 3, is amended to read: 
    Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
State aid shall be paid to local agencies or counties for 90 
percent of the cost of general assistance medical care paid by 
the local agency or county pursuant to section 256D.02, 
subdivision 4a on behalf of persons eligible according to 
standards established by the commissioner of public welfare in 
accordance with the rates established by rule of the 
commissioner.  Persons eligible for benefits under sections 
256D.01 to 256D.21 and persons not eligible for federal health 
care benefits whose nonexempt property, as determined according 
to medical assistance standards, has an equity value no greater 
than $1,000 and whose income is not in excess of the medical 
assistance standards shall be eligible for general assistance 
medical care and have free choice in the selection of a vendor 
of the medical care.  Any local agency or county may, from its 
own resources, make payments for medical care for persons not 
otherwise eligible for the care pursuant to standards 
established by the commissioner.  Persons with excess income and 
resources may qualify for benefits under this subdivision by 
spending down.  Treatment of income and resources in calculation 
of the spenddown shall be the same as in the medical assistance 
program pursuant to chapter 256B.  
    The commissioner of public welfare shall promulgate rules 
to establish administrative and fiscal procedures for payment of 
the state share of the medical costs incurred by the counties 
under section 256D.02, subdivision 4a.  The rules may include:  
    (a) procedures by which state liability for the costs of 
medical care incurred pursuant to section 256D.02, subdivision 
4a may be deducted from county liability to the state under any 
other public assistance program authorized by law;  
    (b) procedures for processing claims of counties for 
reimbursement by the state for expenditures for medical care 
made by the counties pursuant to section 256D.02, subdivision 4a;
    (c) procedures by which the local agencies may contract 
with the commissioner of public welfare for state administration 
of general assistance medical care payments;  
    (d) standards of eligibility, utilization of services and 
payment levels which shall conform to those of medical 
assistance pursuant to chapter 256B; and 
    (e) general criteria and procedures for the identification 
and prompt investigation of suspected fraud, theft, abuse, 
presentment of false or duplicate claims, presentment of claims 
for services not medically necessary, or false statements or 
representations of material facts by a vendor of general 
assistance medical care, and for the imposition of sanctions 
against such vendor of medical care.  The rules relating to 
sanctions shall be consistent with the provisions of section 
256B.064, subdivisions 1a to 2.  
    Sec. 30.  Minnesota Statutes 1982, section 256D.03, 
subdivision 4, is amended to read: 
    Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
Notwithstanding the provisions of sections 256D.01 to 256D.21 
and 261.23, or any other law to the contrary, for the biennium 
ending June 30, 1983, state aid shall be paid to local agencies 
or counties for 90 percent of general assistance medical care 
paid by the local agency or county on behalf of persons eligible 
for general assistance or persons meeting the income and 
resource criteria established in the program for aid to families 
with dependent children.  Nothing in this provision shall be 
construed to modify the spenddown required in appropriate cases 
for general assistance medical care.  Reimbursement for medical 
care provided under sections 256D.01 to 256D.21 or 261.23 under 
the general assistance medical care program shall be limited to 
the following categories of service only:  inpatient hospital 
care, outpatient hospital care, services provided by medicare 
certified rehabilitation agencies, prescription drugs, 
eyeglasses and eye examinations provided by a physician or 
optometrist, physician's services, medical transportation, and 
dental care.  In addition, payments of state aid shall be made 
for day treatment services provided by a mental health center 
established under sections 245.61 to 245.69, subdivision 1, and 
funded through chapter 256E and for prescribed medications for 
persons who have been diagnosed as mentally ill as necessary to 
prevent more restrictive institutionalization. 
    (b) At the option of In order to contain costs, the county 
board and shall, with the approval of the commissioner of public 
welfare, reimbursement for inpatient hospital care, outpatient 
hospital care, and prescription drugs may be limited to 
designated select vendors of medical care providers who can 
provide the most economical care consistent with high medical 
standards and may contract with organizations on a prepaid 
capitation basis to provide these services.  The commissioner 
shall encourage county boards to submit proposals for 
demonstration projects designed to provide services in an 
economical manner or to control utilization, with safeguards to 
ensure that necessary services are provided.  Payment for 
services provided pursuant to this subdivision shall be as 
provided to medical assistance vendors of these services under 
section 256B.02, subdivision 8, except that where counties enter 
into prepaid capitation agreements, payments shall be as 
provided in section 256.966, subdivision 2. 
    (c) The commissioner of public welfare may reduce payments 
provided under sections 256D.01 to 256D.21 and 261.23 in order 
to remain within the amount appropriated for general assistance 
medical care, within the following restrictions.  For the period 
July 1, 1983 to June 30, 1984, reductions below the cost per 
service unit allowable under section 256.966, shall be are 
permitted only as follows:  payments for inpatient and 
outpatient hospital care provided in response to a primary 
diagnosis of chemical dependency or mental illness may be 
reduced no more than 45 percent; payments for all other 
inpatient hospital care may be reduced no more than 35 percent.  
Reductions below the payments allowable under section 256.967 
for the remaining general assistance medical care services 
allowable under this provision subdivision may be reduced no 
more than 25 percent.  For the period July 1, 1984 to June 30, 
1985, reductions below the cost per service unit allowable under 
section 256.966 are permitted only as follows:  payments for 
inpatient and outpatient hospital care provided in response to a 
primary diagnosis of chemical dependency or mental illness may 
be reduced no more than 30 percent; payments for all other 
inpatient hospital care may be reduced no more than 20 percent. 
Reductions below the payments allowable under section 256.967 
for the remaining general assistance medical care services 
allowable under this subdivision may be reduced no more than ten 
percent.  There shall be no copayment required of any recipient 
of benefits for any services provided under this subdivision.  
    (d) If the commissioner or county refuses to pay all or 
part of the charge for a health service, they shall not be 
liable for the unpaid portion of the charge.  Any county may, 
from its own resources, provide medical payments for which state 
payments are not made. 
    Sec. 31.  Minnesota Statutes 1982, section 256D.03, is 
amended by adding a subdivision to read:  
    Subd. 5.  [CERTAIN LOCAL AGENCIES TO PAY STATE FOR COUNTY 
SHARE.] The local agencies that contract with the commissioner 
of public welfare for state administration of general assistance 
medical care payments shall make payment to the state for the 
county share of those payments in the manner described for 
medical assistance advances in section 256B.041, subdivision 5.  
    Sec. 32.  Minnesota Statutes 1982, section 256D.03, is 
amended by adding a subdivision to read: 
    Subd. 6.  [DIVISION OF COSTS.] The state shall pay 90 
percent of the cost of general assistance medical care paid by 
the local agency or county pursuant to this section.  However, 
for counties who contract with health maintenance organizations 
or other providers to deliver services under a prepaid 
capitation agreement, the state shall pay 95 percent of the cost 
per person enrolled.  
    Sec. 33.  Minnesota Statutes 1982, section 256D.03, is 
amended by adding a subdivision to read: 
    Subd. 7.  [DUTIES OF THE COMMISSIONER.] The commissioner 
shall promulgate temporary and permanent rules as necessary to 
establish:  
    (a) standards of eligibility, utilization of services, and 
payment levels;  
    (b) standards for quality assurance, surveillance, and 
utilization review procedures that conform to those established 
for the medical assistance program pursuant to chapter 256B, 
including general criteria and procedures for the identification 
and prompt investigation of suspected fraud, theft, abuse, 
presentment of false or duplicate claims, presentment of claims 
for services not medically necessary, or false statements or 
representations of material facts by a vendor of general 
assistance medical care, and for the imposition of sanctions 
against such vendor of medical care.  The rules relating to 
sanctions shall be consistent with the provisions of section 
256B.064, subdivisions 1a and 2; and 
    (c) administrative and fiscal procedures for payment of the 
state share of the medical costs incurred by the counties under 
section 256D.02, subdivision 4a.  Rules promulgated pursuant to 
this clause may include:  (1) procedures by which state 
liability for the costs of medical care incurred pursuant to 
section 256D.02, subdivision 4a may be deducted from county 
liability to the state under any other public assistance program 
authorized by law; (2) procedures for processing claims of 
counties for reimbursement by the state for expenditures for 
medical care made by the counties pursuant to section 256D.02, 
subdivision 4a; and (3) procedures by which the local agencies 
may contract with the commissioner of public welfare for state 
administration of general assistance medical care payments.  
    Sec. 34.  Minnesota Statutes 1982, section 260.191, 
subdivision 2, is amended to read: 
    Subd. 2.  [ORDER DURATION.] All orders under this section 
shall be for a specified length of time set by the court not to 
exceed one year.  However, before the order has expired and upon 
its own motion or that of any interested party, the court has 
continuing jurisdiction to renew the order or shall, after 
notice to the parties and a hearing, renew the order for another 
year or make some other disposition of the case, until the 
individual is no longer a minor.  Any person to whom legal 
custody is transferred shall report to the court in writing at 
such periods as the court may direct. 
    Sec. 35.  Minnesota Statutes 1982, section 260.242, 
subdivision 2, is amended to read: 
    Subd. 2.  [GUARDIAN'S RESPONSIBILITIES.] (a) A guardian 
appointed under the provisions of subdivision 1 has legal 
custody of his ward unless the court which appoints him gives 
legal custody to some other person.  If the court awards custody 
to a person other than the guardian, the guardian nonetheless 
has the right and responsibility of reasonable visitation, 
except as limited by court order.  
     (b) The guardian may make major decisions affecting the 
person of his ward, including but not limited to giving consent 
(when consent is legally required) to the marriage, enlistment 
in the armed forces, medical, surgical, or psychiatric 
treatment, or adoption of the ward.  When, pursuant to 
subdivision 1, clause (a), the commissioner of public welfare is 
appointed guardian, he may delegate to the welfare board of the 
county in which, after the appointment, the ward resides, the 
authority to act for him in decisions affecting the person of 
his ward, including but not limited to giving consent to the 
marriage, enlistment in the armed forces, medical, surgical, or 
psychiatric treatment of the ward.  
    (c) A guardianship created under the provisions of 
subdivision 1 shall not of itself include the guardianship of 
the estate of the ward.  
     (d) If the ward is in foster care, the court shall, upon 
its own motion or that of the guardian, conduct a dispositional 
hearing within 18 months of the foster care placement and once 
every two years thereafter to determine the future status of the 
ward including, but not limited to, whether the child should be 
continued in foster care for a specified period, should be 
placed for adoption, or should, because of the child's special 
needs or circumstances, be continued in foster care on a 
permanent or long-term basis.  When the court has determined 
that the special needs of the ward are met through a permanent 
or long-term foster care placement, no subsequent dispositional 
hearings are required.  
    Sec. 36.  Minnesota Statutes 1982, section 261.23, is 
amended to read: 
    261.23 [COSTS OF HOSPITALIZATION.] 
    The costs of hospitalization of such indigent persons 
exclusive of medical and surgical care and treatment shall not 
exceed in amount the full rates fixed and charged by the 
Minnesota general hospital under the provisions of sections 
158.01 to 158.11 for the hospitalization of such indigent 
patients.  For indigent persons hospitalized pursuant to 
sections 261.21 to 261.232, the state shall pay ninety percent 
of the cost of the hospitalization of indigent persons under the 
provisions of sections 261.21 to 261.232 shall be paid by the 
state and ten percent allowable under the general assistance 
medical care program and ten percent of the allowable cost of 
hospitalization shall be paid by the county of the residence of 
such the indigent persons at such the times as may be provided 
for in such the contract; and in case of an injury or emergency 
requiring immediate surgical or medical treatment, for a period 
not to exceed 72 hours, 90 percent of the cost allowable under 
the general assistance medical care program shall be paid by the 
state and ten percent of the cost shall be paid by the county 
from which such the patient, if indigent, is certified.  State 
payments for services rendered pursuant to this section shall be 
rateably reduced to the same extent and during the same time 
period as payments are reduced under section 256D.03, 
subdivision 4, paragraph (c).  If the county of residence of the 
patient is not the county in which the patient has legal 
settlement for the purposes of poor relief, then the county of 
residence may seek reimbursement from the county in which the 
patient has settlement for the purposes of poor relief for all 
costs it has necessarily incurred and paid in connection with 
the hospitalization of said patient. 
    Sec. 37.  [LEGISLATIVE AUDIT COMMISSION STUDY.] 
    The legislative audit commission shall consider an 
evaluation of the feasibility, costs, benefits, and related 
issues associated with the state assuming the powers, duties and 
responsibilities of the fiscal intermediary for the medicare 
program under United States Code, title 42, sections 1395 to 
1395xx.  The commission shall make any recommendations it deems 
appropriate to the legislature and the governor no later than 
January 15, 1984.  
    Sec. 38.  [256B.503] [RULES.] 
    The commissioner of public welfare may promulgate temporary 
and permanent rules as necessary to implement sections 5, 6, 8, 
29, 30, 32, 33, and 36.  The commissioner shall promulgate 
temporary and permanent rules to establish standards and 
criteria for deciding which medical assistance services require 
prior authorization and for deciding whether a second medical 
opinion is required for an elective surgery.  The commissioner 
shall promulgate permanent and temporary rules as necessary to 
establish the methods and standards for determining 
inappropriate utilization of medical assistance services.  
    The commissioner of public welfare shall adopt temporary 
rules which meet the requirements of sections 14.29 to 14.36 for 
the medical assistance demonstration project.  Notwithstanding 
the provisions of section 14.35, the temporary rules promulgated 
to implement section 27 shall be effective for 360 days and may 
be continued in effect for an additional 900 days if the 
commissioner gives notice by publishing a notice in the state 
register and mailing notice to all persons registered with the 
commissioner to receive notice of rulemaking proceedings in 
connection with the project.  The temporary rules shall not be 
effective beyond December 31, 1986, without meeting the 
requirements of sections 14.13 to 14.20.  
    Sec. 39.  [APPLICATION; MAXIMUM RATE INCREASE.] 
    The prospective payment system for inpatient hospital 
service shall be applied, beginning July 1, 1983, to hospitals 
with a fiscal year beginning on that date.  Each remaining 
hospital shall continue to be paid on a cost per case basis, 
limited to a maximum increase of five percent per state fiscal 
year, until the first date of its first full fiscal year that 
begins after July 1, 1983; on and after that date it shall be 
paid through the prospective payment system.  
    Sec. 40.  [REPEALER.] 
    Sections 27 and 28 are repealed effective July 1, 1985, if 
the project implementation phase has not begun by that date.  
    Sec. 41.  [EFFECTIVE DATE.] 
    Sections 1 to 5, 8 to 12, 16, 17, 19 to 28, 34, 35, 37, and 
38 are effective the day following final enactment.  Sections 
29, 32, 33, and 36 are effective October 1, 1983.  Sections 13, 
14, and 31 are effective July 1, 1984. 

                                ARTICLE 6

                              JOB TRAINING 
    Section 1.  [268.60] [PURPOSE.] 
    It is the purpose of sections 1 to 5 to provide financial 
assistance for comprehensive job training and related services 
for economically disadvantaged, unemployed, and underemployed 
individuals through opportunities industrialization centers.  
    Sec. 2.  [268.61] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] When used in sections 1 to 5 the 
terms in this section have the meanings given them.  
    Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of economic security.  
    Subd. 3.  [COUNCIL.] "Council" means the Minnesota state 
council of the opportunities industrialization centers of 
America.  
    Subd. 4.  [ECONOMICALLY DISADVANTAGED.] "Economically 
disadvantaged" means an individual who meets the criteria for an 
economically disadvantaged person established by rule by the 
commissioner.  
    Subd. 5.  [UNDEREMPLOYED.] "Underemployed" means an 
individual:  
    (a) Working part-time but seeking full-time work; or 
    (b) Working full-time but receiving wages below the greater 
of:  
    (1) the poverty level determined in accordance with 
criteria established by the department of economic security; or 
    (2) 70 percent of the lower living standard income level as 
determined by the United States bureau of labor statistics.  
    Subd. 6.  [UNEMPLOYED.] "Unemployed" means an individual 
who is without a job, and who wants and is available for work.  
    Sec. 3.  [268.62] [DISTRIBUTION AND USE OF STATE MONEY.] 
    The commissioner shall distribute the money appropriated 
for:  
    (a) comprehensive job training and related services or job 
opportunities programs for economically disadvantaged, 
unemployed, and underemployed individuals, including persons of 
limited English speaking ability, through opportunities 
industrialization centers; and 
    (b) the establishment and operation in Minnesota of these 
centers.  
    Comprehensive job training and related services include: 
recruitment, counseling, remediation, motivational pre-job 
training, vocational training, job development, job placement, 
and other appropriate services enabling individuals to secure 
and retain employment at their maximum capacity.  
    Sec. 4.  [268.63] [CRITERIA FOR DISTRIBUTION OF MONEY.] 
    The commissioner, with the advice of the council, shall 
establish criteria for the distribution of state money for the 
purpose of section 3.  The criteria shall include requirements 
that:  
    (a) the program receiving state assistance:  
    (1) involve residents in the area to be served by the 
program in the planning and operation of the program; and 
    (2) involve the business community in the area to be served 
by the program in its development and operation;  
    (b) the distribution of assistance among areas within the 
state be equitable, with priority being given to areas with high 
unemployment or underemployment;  
    (c) financial assistance under sections 1 to 5 to any 
program may not exceed 25 percent of the cost of the program 
including costs of administration; and 
    (d) a program receiving financial assistance has adequate 
internal administrative controls, accounting procedures, 
personnel standards, evaluation procedures, availability of 
in-service training and technical assistance programs, and other 
policies necessary to promote the effective use of state money.  
    The commissioner may make a distribution in excess of the 
limit prescribed in clause (c) if the commissioner determines 
that the excess distribution is necessary to further the 
objectives of sections 1 and 3.  
    Sec. 5.  [268.64] [MONEY DISTRIBUTION.] 
    The commissioner may make a distribution of money directly 
to a program, or make a distribution subject to conditions that 
ensure use consistent with the distribution and utilization of 
money under federal legislation regarding job training and 
related services. 

                               ARTICLE 7 

                         EMERGENCY JOBS PROGRAM 
    Section 1.  [268.671] [CITATION.] 
    Sections 1 to 16 may be cited as the "Minnesota Emergency 
Employment Development (MEED) Act."  
    Sec. 2.  [268.672] [DEFINITIONS.] 
    Subdivision 1.  [TERMS.] For the purposes of sections 1 to 
16, the following terms have the meanings given them.  
    Subd. 2.  [COORDINATOR.] "Coordinator" means the Minnesota 
emergency employment development coordinator appointed under 
section 4.  
    Subd. 3.  [ELIGIBLE BUSINESS.] "Eligible business" means a 
for-profit business.  
    Subd. 4.  [ELIGIBLE EMPLOYER.] "Eligible employer" means an 
eligible government agency, an eligible nonprofit agency, or an 
eligible business.  
    Subd. 5.  [ELIGIBLE GOVERNMENT AGENCY.] "Eligible 
government agency" means a county, municipality, school 
district, or other local governmental subdivision, a state 
agency, or a federal agency office in Minnesota.  
    Subd. 6.  [ELIGIBLE JOB APPLICANT.] "Eligible job 
applicant" means a person who:  (1) has been a resident of this 
state for at least one month, (2) is unemployed, (3) is not 
receiving and is not qualified to receive unemployment 
compensation or workers' compensation, and (4) is determined by 
the employment administrator to be likely to be available for 
employment by an eligible employer for the duration of the job.  
    Subd. 7.  [ELIGIBLE NONPROFIT AGENCY.] "Eligible nonprofit 
agency" means an organization exempt from taxation under the 
Internal Revenue Code of 1954, section 501(c)(3), as amended 
through December 31, 1982.  
    Subd. 8.  [EMPLOYMENT ADMINISTRATOR.] "Employment 
administrator" means the administrative entity designated by the 
coordinator to administer the provisions of this act in each 
service delivery area.  The coordinator may designate an 
administrative entity authorized under the Job Training 
Partnership Act or its predecessor administrative entity 
authorized under United States Code, title 29, section 801, et 
seq., or a job training or placement agency with proven 
effectiveness.  
    Subd. 9.  [HOUSEHOLD.] "Household" means a group of persons 
living at the same residence consisting of, at a maximum, 
spouses and the minor children of each.  
    Subd. 10.  [JOB TRAINING PARTNERSHIP ACT.] "Job Training 
Partnership Act" means the federal Job Training Partnership Act 
of 1982 (JTPA), Statutes at Large, volume 92, page 1322.  
    Subd. 11.  [PROGRAM.] "Program" means the Minnesota 
emergency employment development program created by sections 1 
to 16 consisting of temporary work relief projects in the 
government and nonprofit agencies and new job creation in the 
private sector.  
    Subd. 12.  [SERVICE DELIVERY AREA.] "Service delivery area" 
means an area designated as a service delivery area by the 
coordinator.  
    Sec. 3.  [268.673] [MINNESOTA EMERGENCY EMPLOYMENT 
DEVELOPMENT COORDINATOR.] 
    Subdivision 1.  [APPOINTMENT.] The governor shall appoint a 
Minnesota emergency employment development coordinator to 
administer the provisions of sections 1 to 16.  The coordinator 
shall be within the department of economic security, but shall 
be responsible directly to the governor.  The coordinator shall 
have the powers necessary to carry out the purposes of the 
program.  
    Subd. 2.  [RESPONSIBILITIES.] The coordinator shall:  
    (a) Obtain an inventory of community needs from each local 
governmental subdivision and compile a statewide inventory of 
needs within 30 days after his appointment;  
    (b) Enter into a contract with one or more employment 
administrators in each service delivery area;  
    (c) Review the emergency employment development plan 
submitted by the employment administrator of each service 
delivery area and approve satisfactory plans.  If an employment 
administrator submits an unsatisfactory plan, the coordinator 
shall assist the employment administrator in developing a 
satisfactory one;  
    (d) Coordinate the program with other state agencies;  
    (e) Coordinate administration of the program with the 
general assistance program;  
    (f) Set policy regarding disbursement of program funds; and 
    (g) Perform general program marketing and monitoring 
functions.  
    Subd. 3.  [DEPARTMENT OF ECONOMIC SECURITY.] The 
coordinator shall administer the program within the department 
of economic security.  The commissioner of economic security 
shall provide administrative support services to the coordinator 
for the purposes of the program.  
    Subd. 4.  [ENFORCEMENT.] (a) The coordinator shall ensure 
that all eligible employers and employment administrators comply 
with sections 1 to 16 and all other applicable state and federal 
laws, including those relating to:  (1) affirmative action; (2) 
occupational health and safety standards; (3) environmental 
standards; and (4) fair labor practices.  
    (b) The coordinator may:  
    (1) make public or private investigations within or without 
this state necessary to determine whether any person has 
violated or is about to violate sections 1 to 16, a contract 
entered into under them, or any rule or order adopted under 
them, or to aid in the enforcement of sections 1 to 16 or in 
rules and forms adopted under them;  
    (2) require or permit any person to file a written 
statement under oath or otherwise, as the commissioner 
determines, as to all the facts and circumstances concerning the 
matter being investigated;  
    (3) publish information contained in any order issued by 
the coordinator;  
    (4) hold hearings, upon reasonable notice, on any matter 
arising out of the administration of sections 1 to 16; and 
    (5) conduct investigations and hold hearings for the 
purpose of compiling information with a view to recommending 
changes in sections 1 to 16 to the legislature.  
    (c) The attorney general shall assign from his staff one or 
more assistant attorneys general to the coordinator and shall 
conduct all proceedings involving the violation of sections 1 to 
16 and all other enforcement proceedings.  
    (d) Whenever it appears to the coordinator that any person 
has violated a provision of sections 1 to 16, a contract entered 
into under them, or a rule or order adopted under them:  
    (1) He may issue and cause to be served upon the person an 
order requiring the person to cease and desist from the 
violation.  The order must be calculated to give reasonable 
notice of the right of the person to request a hearing on it and 
must state the reasons for the entry of the order.  A hearing 
must be held not later than seven days after a request for the 
hearing is received by the coordinator, after which and within 
20 days of the date of the hearing the coordinator shall issue a 
further order vacating the cease and desist order or making it 
permanent as the facts require.  If no hearing is requested 
within 30 days of service of the order, the order becomes final 
and remains in effect until it is modified or vacated by the 
coordinator.  If the person to whom a cease and desist order is 
issued fails to appear at the hearing after being duly notified, 
the person shall be deemed in default, and the proceeding may be 
determined against him upon consideration of the cease and 
desist order, the allegations of which may be deemed to be true; 
    (2) He may bring an action in the district court of the 
appropriate county to enjoin the violation and to enforce 
compliance with the provisions of sections 1 to 16, a contract 
entered into under them, or any rule or order adopted under 
them, and he may refer the matter to the attorney general.  Upon 
a proper showing, a permanent or temporary injunction, 
restraining order, or writ of mandamus shall be granted.  The 
court may not require the coordinator to post a bond.  
    Any injunction proceeding under the provisions of sections 
1 to 16 may be brought on for hearing and disposition upon an 
order to show cause returnable upon not more than eight days 
notice to the defendant.  The case has precedence over other 
cases upon the court calendar and may not be continued without 
the consent of the state, except upon good cause shown to the 
court, and then only for a reasonable length of time necessary 
in the opinion of the court to protect the rights of the 
defendant.  
    Subd. 5.  [REPORT TO GOVERNOR AND LEGISLATURE.] The 
coordinator shall report to the legislative advisory commission 
and the governor on a quarterly basis:  (1) the number of 
persons employed; (2) the number and type of employers under the 
program; (3) the amount of money spent in each service delivery 
area for wages for each type of employment and each type of 
other expense; (4) the number of persons who have completed 
participation in the program and their current employment, 
educational, or training status; and (5) any other information 
requested by the commission or the governor or deemed pertinent 
by the coordinator.  
    Subd. 6.  [RULES.] The commissioner of economic security 
may adopt rules necessary to implement this article.  These 
rules are not subject to chapter 14, the Administrative 
Procedure Act.  
    Sec. 4.  [268.674] [MINNESOTA EMERGENCY EMPLOYMENT 
DEVELOPMENT TASK FORCE.] 
    Subdivision 1.  [CREATION.] There is created a Minnesota 
emergency employment development task force to advise the 
coordinator in the administration of sections 1 to 16.  
    Subd. 2.  [MEMBERSHIP.] The task force shall consist of 
nine members as follows:  the coordinator, the commissioner of 
economic security, the commissioner of energy and economic 
development, the commissioner of labor and industry, the 
commissioner of public welfare, a representative of labor, a 
representative of business, a representative of nonprofit 
employers, and an employment administrator.  The coordinator 
shall be the chairman and shall appoint the noncommissioner 
members.  
    Subd. 3.  [TERMS; COMPENSATION; REMOVAL.] The terms, 
compensation, and removal of the noncommissioner members are 
governed by section 15.059.  
    Subd. 4.  [MEETINGS.] The task force shall meet at the call 
of the coordinator.  
    Sec. 5.  [268.675] [ALLOCATION OF FUNDS AMONG SERVICE 
DELIVERY AREAS.] 
    (a) Ninety percent of the funds available for allocation to 
employment administrators for the program must be allocated 
among service delivery areas as follows: each service delivery 
area shall be eligible to receive that proportion of the funds 
available which equals the number of unemployed persons in the 
service delivery area divided by the total number of unemployed 
persons in the state for the 12-month period ending the most 
recent March 31.  
    (b) Ten percent of the funds available for allocation to 
employment administrators under the program must be allocated at 
the discretion of the coordinator to employment administrators:  
    (1) who will maximize the use of the funds through 
coordination with other programs and state, local, and federal 
agencies, through the use of matching funds or through the 
involvement of low-income constituent groups;  
    (2) who have demonstrated need beyond the allocation 
available under clause (1); or 
     (3) who have demonstrated outstanding performance in job 
creation.  
    Sec. 6.  [268.676] [ALLOCATION WITHIN SERVICE DELIVERY 
AREAS; PRIORITIES.] 
    Subdivision 1.  [AMONG JOB APPLICANTS.] Allocation of funds 
among eligible job applicants within a service delivery area 
shall be determined by the employment administrator in each 
service delivery area.  The employment administrator shall give 
priority to:  
    (1) applicants living in households with no other income 
source; and 
    (2) applicants who would otherwise be eligible to receive 
general assistance under Minnesota Statutes 1980, section 
256D.05.  
    Subd. 2.  [AMONG EMPLOYERS.] Allocation of funds among 
eligible employers within a service area shall be determined by 
the employment administrator within each service delivery area 
according to the priorities in sections 10 and 11.  The 
employment administrator shall give priority to funding private 
sector jobs to the extent that eligible businesses apply for 
funds.  If possible, no more than 60 percent of the funds may be 
allocated for jobs with eligible government and nonprofit 
agencies during the biennium.  
    Subd. 3.  [AMONG EMPLOYMENT ADMINISTRATORS.] If the 
coordinator designates more than one employment administrator in 
a service delivery, the coordinator shall determine the 
allocation of funds to be distributed by each employment 
administrator in the service delivery area.  
    Sec. 7.  [268.677] [USE OF FUNDS.] 
    Funds appropriated for the purposes of sections 1 to 16 may 
be used as follows:  
    (a) To provide a state contribution for wages and fringe 
benefits for eligible job applicants for a maximum of 1,040 
hours over a maximum period of 26 weeks per job applicant.  For 
eligible job applicants participating in a job training program, 
the state contribution for wages may be used for a maximum 
period of 52 weeks per job applicant.  The state contribution 
for wages shall be up to $4 per hour for each eligible job 
applicant employed.  The state contribution for fringe benefits 
may be up to $1 per hour for each eligible job applicant 
employed.  However, the employer may use funds from other 
sources to provide increased wages to the applicants it 
employs.  At least 75 percent of the funds appropriated for the 
program must be used to pay wages for eligible job applicants; 
    (b) To reimburse the commissioner of economic security in 
an amount not to exceed one percent of the funds appropriated 
for the actual cost of administering sections 1 to 16, and to 
reimburse the employment administrators in an amount not to 
exceed 4-1/2 percent of the funds appropriated for their actual 
cost of administering sections 1 to 16.  The commissioner of 
economic security and the employment administrators shall 
reallocate funds from other sources to cover the administrative 
costs of this program whenever possible;  
    (c) To provide child care services or subsidies to 
applicants employed under sections 1 to 16;  
    (d) To provide workers' compensation coverage to applicants 
employed by government or nonprofit agencies under sections 1 to 
16;  
    (e) To provide job search assistance, labor market 
orientation, job seeking skills, and referral for other services;
    (f) To purchase supplies and materials for projects 
creating permanent improvements to public property in an amount 
not to exceed one percent of the funds appropriated.  
    The employment administrator of each service delivery area 
shall submit to the coordinator a spending plan establishing 
that funds allocated to the service delivery area will be used 
by October 1, 1984, in the manner required by sections 1 to 16. 
Any funds allocated to the service delivery area for which there 
is no spending plan approved by the coordinator shall cancel 
back to the Minnesota emergency employment development account 
and may be reallocated by the coordinator to other employment 
administrators.  
    Sec. 8.  [268.678] [EMPLOYMENT ADMINISTRATORS; POWERS AND 
DUTIES.] 
    Subdivision 1.  [IN GENERAL.] The employment administrator 
for each service delivery area has the powers and duties given 
in this section and any additional duties given by the 
coordinator.  
    Subd. 2.  [EMPLOYMENT PLAN.] Each employment administrator 
shall develop an emergency employment development plan for his 
service delivery area under guidelines developed by the 
coordinator and submit it to the coordinator within the period 
allowed by the coordinator.  To the extent feasible, the 
employment administrator shall seek input from potential 
eligible employers and the public.  
    Subd. 3.  [OUTREACH.] Each employment administrator shall 
publicize the program within his service delivery area to seek 
maximum participation by eligible job applicants and employers.  
    Subd. 4.  [CONTRACTS.] Each employment administrator shall 
enter into contracts with eligible employers setting forth the 
terms of their participation in the program as required by 
sections 1 to 16.  
     Subd. 5.  [SCREENING AND COORDINATION.] Each employment 
administrator shall screen job applicants and employers to 
achieve the best possible placement of eligible job applicants 
with eligible employers.  
     Subd. 6.  [ELIGIBLE JOB APPLICANT PRIORITY LISTS.] Each 
employment administrator shall maintain a list of eligible job 
applicants unable to secure employment under the program at the 
time of application.  The list shall prioritize eligible job 
applicants and shall be used to fill jobs with eligible 
employers as they become available.  
     Subd. 7.  [COORDINATION OF EDUCATION AND TRAINING 
PROGRAMS.] Each employment administrator shall cooperate with 
local educational and training institutions to coordinate and 
publicize the availability of their resources to assure that 
applicants may receive training needed before or while employed 
in jobs which are available under the program.  
    Subd. 8.  [MATERIALS.] Each employment administrator may 
disburse funds not to exceed one percent of the amount allocated 
to his service delivery area for the purchase of supplies and 
materials for projects creating permanent improvements to public 
property.  
    Sec. 9.  [268.679] [DUTIES OF OTHER AGENCIES.] 
    Subdivision 1.  [ENERGY AND ECONOMIC DEVELOPMENT 
AUTHORITY.] The energy and economic development authority shall 
publicize the Minnesota emergency employment development program 
and shall provide staff assistance as requested by employment 
administrators in the screening of businesses and the collection 
of data to the extent feasible under its existing budget and 
staff complement.  
    Subd. 2.  [EDUCATION AGENCIES.] The state board for 
vocational education shall review its policies for 
post-secondary vocational education to ensure that the programs 
serve the training needs of economically disadvantaged persons. 
Education programs shall attempt to provide training that will 
help individuals to obtain and retain employment.  The training 
may include customized short-term training, basic skills 
training, programs to develop work habits, and other services 
designed for eligible job applicants and persons employed under 
sections 1 to 16.  Examples of education programs include, but 
are not limited to adult vocational programs, adult basic or 
continuing education, area vocational-technical institutes, 
colleges, secondary education programs, and private and 
proprietary schools.  
    Subd. 3.  [DEPARTMENT OF PUBLIC WELFARE.] The commissioner 
of public welfare shall provide to each employment administrator 
lists of currently licensed local day care facilities, updated 
quarterly, to be available to all persons employed under 
sections 1 to 16.  
    Sec. 10.  [268.68] [ELIGIBLE GOVERNMENT AND NONPROFIT 
AGENCY EMPLOYMENT.] 
    A government or nonprofit agency is an eligible employer 
with respect to temporary work relief projects that are 
determined by the employment administrator to have long-term 
benefit to or are needed by the community including, but not 
limited to, jobs in permanent public improvement projects, 
residential or public building weatherization projects, 
reforestation projects, mineland reclamation projects, planting 
or tree trimming projects, soil conservation projects, natural 
resource development projects, and community social service 
programs such as child care and home health care.  
    Sec. 11.  [268.681] [BUSINESS EMPLOYMENT.] 
     Subdivision 1.  [ELIGIBLE BUSINESSES.] A business employer 
is an eligible employer if it enters into a written contract, 
signed and subscribed to under oath, with the employment 
administrator in its service delivery area, containing 
assurances that:  
    (a) funds received by a business shall be used only as 
permitted under sections 1 to 16;  
    (b) the business has submitted a plan to the employment 
administrator (1) describing the duties and proposed 
compensation of each employee proposed to be hired under the 
program; and (2) demonstrating that, with the funds provided 
under sections 1 to 16, the business is likely to succeed and 
continue to employ persons hired under the program;  
    (c) the business will use funds exclusively for 
compensation and fringe benefits of eligible job applicants and 
will provide employees hired with these funds with fringe 
benefits and other terms and conditions of employment comparable 
to those provided to other employees of the business who do 
comparable work;  
    (d) the funds are necessary to allow the business to begin, 
or to employ additional people, but not to fill positions which 
would be filled even in the absence of funds from this program;  
    (e) the business will cooperate with the coordinator and 
the employment administrator in collecting data to assess the 
result of the program; and 
    (f) the business is in compliance with all applicable 
affirmative action, fair labor, health, safety, and 
environmental standards.  
    Subd. 2.  [PRIORITIES.] In allocating funds among eligible 
businesses, the employment administrator shall give priority to 
businesses which best satisfy the following criteria:  
    (a) have a high potential for growth and long-term job 
creation;  
     (b) are labor intensive;  
     (c) meet the definition of a small business as defined in 
section 645.445;  
    (d) make high use of local and Minnesota resources;  
    (e) are under ownership of women and minorities;  
    (f) make high use of new technology;  
    (g) produce energy conserving materials or services or are 
involved in development of renewable sources of energy; and 
    (h) have their primary place of business in Minnesota.  
    Subd. 3.  [PAYBACK.] A business receiving funds under this 
program shall repay 70 percent of the amount initially received 
for each eligible job applicant employed, if the employee does 
not continue in the employment of the business beyond the 
six-month subsidized period.  If the employee continues in the 
employment of the business for one year or longer after the 
six-month subsidized period, the business need not repay any of 
the funds received for that employee's wages.  If the employee 
continues in the employment of the business for a period of less 
than one year after the expiration of the six-month subsidized 
period, the business shall receive a proportional reduction in 
the amount it must repay.  If an employer dismisses an employee 
for good cause and works in good faith with the program 
administrator to employ and train another person referred by the 
employment administrator, the payback formula shall apply as if 
the original person had continued in employment.  
    A repayment schedule shall be negotiated and agreed to by 
the employment administrator and the business prior to the 
disbursement of the funds and is subject to renegotiation.  The 
employment administrator shall forward payments received under 
this subdivision to the coordinator on a monthly basis.  The 
coordinator shall deposit these payments in the Minnesota 
emergency employment development account created by subdivision 
4.  
    Subd. 4.  [MINNESOTA EMERGENCY EMPLOYMENT DEVELOPMENT 
ACCOUNT.] The Minnesota emergency employment development account 
is created in the state treasury.  All payments from businesses 
pursuant to subdivision 3 shall be deposited in this account, 
and all funds in the account are appropriated to the 
commissioner of economic security for the purpose of making 
disbursements pursuant to section 5.  
    Sec. 12.  [268.682] [WORKER DISPLACEMENT PROHIBITED.] 
     Subdivision 1.  [LAYOFFS; WORK REDUCTIONS.] An eligible 
employer may not terminate, lay off, or reduce the working hours 
of an employee for the purpose of hiring an individual with 
funds available under sections 1 to 16.  
    Subd. 2.  [HIRING DURING LAYOFFS.] An eligible employer may 
not hire an individual with funds available under sections 1 to 
16 if any other person is on layoff from the same or a 
substantially equivalent job.  
    Subd. 3.  [EMPLOYER CERTIFICATION.] In order to qualify as 
an eligible employer, a government or nonprofit agency or 
business must certify to the employment administrator that each 
job created and funded under sections 1 to 16:  
    (a) will result in an increase in employment opportunities 
over those which would otherwise be available;  
    (b) will not result in the displacement of currently 
employed workers, including partial displacement such as 
reduction in hours of nonovertime work, wages, or employment 
benefits; and 
    (c) will not impair existing contracts for service or 
result in the substitution of program funds for other funds in 
connection with work that would otherwise be performed.  
    Sec. 13.  [268.683] [WORK INCENTIVE DEMONSTRATION PROJECT.] 
    Subdivision 1.  [AVAILABILITY OF PROGRAM.] In order to 
maximize the opportunity for recipients of aid to families with 
dependent children to take full advantage of the jobs created by 
sections 1 to 16, the commissioner of public welfare shall 
inform each applicant or recipient of the availability of this 
program.  
    Subd. 2.  [CHANGES IN STATE PLAN AND RULES; WAIVERS.] The 
commissioner shall make changes in the state plan and rules, or 
seek any waivers or demonstration authority necessary to 
minimize the barriers to participation in the programs or to 
employment.  Changes shall be sought in the following areas, 
including but not limited to:  allowances, child care, work 
expenses, the amount and duration of earning incentives, medical 
care coverage, limitations on the hours of employment, and the 
diversion of payments to wage subsidies.  The commissioner shall 
implement each change as soon as possible.  
    Subd. 3.  [REFERRALS.] Persons required to register for the 
work incentive program under section 256.736 or to register with 
job services shall be referred to the program for the required 
orientation, appraisal, and job search activities.  
    Subd. 4.  [MEDICAL ASSISTANCE.] Participants shall receive 
medical assistance and other benefits provided under the aid to 
families with dependent children program according to the 
applicable standards and any authority granted by the department 
of health and human services.  
    Subd. 5.  [RULES.] The commissioner of public welfare may 
adopt rules, including temporary rules, for the implementation 
of this section.  
    Sec. 14.  [268.684] [WORK INCENTIVE FUNDS.] 
    Funds made available to the commissioner of economic 
security for purposes of administration of the jobs program may 
be used in part, at the discretion of the commissioner, to 
ensure that persons eligible for or receiving income maintenance 
grants have access to work and training programs.  
    Sec. 15.  [268.685] [TERMINATION; NOTIFICATION.] 
    The commissioner of economic security shall immediately 
terminate the Minnesota emergency employment development program 
if and when none of the money appropriated under article 1, 
section 3 remains.  The commissioner of economic security shall 
immediately notify the commissioner of public welfare of the 
program's termination.  The commissioner of public welfare shall 
immediately notify each local agency referring recipients under 
article 8, section 11 of the program's termination and require 
the local agency to cease transferring recipients.  
    On the date the program is terminated, any balance 
remaining in the Minnesota emergency employment development 
account established under section 11, subdivision 4 shall cancel 
to the general fund.  Any payments received under section 11, 
subdivisions 3 and 4 on or after that date shall be deposited in 
the general fund.  
    Sec. 16.  [268.686] [SUNSET.] 
    Sections 1 to 18 are repealed June 30, 1985.  
    Sec. 17.  Minnesota Statutes 1982, section 15.61, is 
amended to read: 
    15.61 [UNEMPLOYED AND UNDEREMPLOYED; EMPLOYMENT BY STATE 
AND OTHER GOVERNMENTAL UNITS.] 
    Subdivision 1.  The state of Minnesota, its departments, 
agencies and instrumentalities, and any county, city, town, 
school district or other body corporate and politic, may employ 
unemployed and underemployed persons as defined in the federal 
Emergency Employment Act of 1971, as amended, and Comprehensive 
Employment and Training Act of 1973, as amended, and eligible 
job applicants under sections 1 to 16 pursuant to the terms of 
those acts. 
    Subd. 2.  The provisions of Minnesota Statutes 1969, 
Sections 197.455 to 197.48 and 43A.11 and any other law or 
ordinance relating to preference in employment and promotion of 
persons having served in the armed services, the provisions of 
any law, rule or regulation, the provisions of any city charter 
or any ordinance or resolution, or the provisions of any other 
law or statute in conflict with the provisions of the federal 
Emergency Employment Act of 1971, as amended, and Comprehensive 
Employment and Training Act of 1973, as amended, and eligible 
job applicants under sections 1 to 16 shall not be applicable to 
the employment of the persons specified in subdivision 1. 
    Sec. 18.  [SEVERABILITY.] 
    If the durational residency requirement authorized by 
section 2, subdivision 6 is found to be unconstitutional and 
void, the remaining provisions of the law shall remain valid.  
    Sec. 19.  [EFFECTIVE DATE.] 
    Sections 1 to 18 are effective the day after final 
enactment. 

                                ARTICLE 8

               GENERAL ASSISTANCE:  GRANTS AND ALLOWANCES
    Section 1.  Minnesota Statutes 1982, section 13.46, 
subdivision 2, is amended to read: 
    Subd. 2.  [GENERAL.] Unless the data is summary data or a 
statute specifically provides a different classification, data 
on individuals collected, maintained, used or disseminated by 
the welfare system is private data on individuals, and shall not 
be disclosed except:  
    (a) Pursuant to section 13.05;  
    (b) Pursuant to a valid court order;  
    (c) Pursuant to a statute specifically authorizing access 
to the private data;  
    (d) To an agent of the welfare system, including 
appropriate law enforcement personnel, who are acting in the 
investigation, prosecution, criminal or civil proceeding 
relating to the administration of a program;  
    (e) To personnel of the welfare system who require the data 
to determine eligibility, amount of assistance, and the need to 
provide services of additional programs to the individual;  
    (f) To administer federal funds or programs; or 
    (g) Between personnel of the welfare system working in the 
same program; or 
     (h) To the Minnesota department of economic security for 
the purpose of monitoring the eligibility of the data subject 
for unemployment compensation or for any employment or training 
program administered by that agency, whether alone or in 
conjunction with the welfare system.  
    Sec. 2.  Minnesota Statutes 1982, section 268.12, 
subdivision 12, is amended to read: 
    Subd. 12.  [INFORMATION.] Except as hereinafter otherwise 
provided, data gathered from any employing unit, employer or 
individual pursuant to the administration of sections 268.03 to 
268.24, and from any determination as to the benefit rights of 
any individual shall be private data on individuals or nonpublic 
data not on individuals as defined in section 13.02, 
subdivisions 9 and 12 and shall not be disclosed except pursuant 
to this subdivision or pursuant to a valid court order.  This 
private data may be disseminated to and used by the following 
agencies without the consent of the subject of the data:  
    (a) State and federal agencies specifically authorized 
access to the data by state or federal law;  
    (b) Any agency of this or any other state; or any federal 
agency charged with the administration of an employment security 
law or the maintenance of a system of public employment offices; 
    (c) Local human rights groups within the state which have 
enforcement powers;  
    (d) The Minnesota department of revenue on an 
interchangeable basis with the department of economic security 
subject to the following restrictions and notwithstanding any 
law to the contrary:  
     (1) The department of revenue may have access to department 
of economic security data on individuals and employing units 
only to the extent necessary for proper enforcement of tax laws; 
and 
     (2) The department of economic security may have access to 
department of revenue data pertaining only to individuals who 
have claimed benefits under sections 268.03 to 268.24 and only 
if the individuals are the subject of investigations based on 
other information available to the department of economic 
security.  The data provided by the department of revenue shall 
be limited to the amount of gross income earned by an 
individual, the total amount of earnings from each employer and 
the employers' names.  Upon receipt of the data, the department 
of economic security may not disseminate the data to any 
individual or agency except in connection with a prosecution for 
violation of the provisions of sections 268.03 to 268.24.  This 
clause shall not be construed to be a restriction on the 
exchange of information pertaining to corporations or other 
employing units to the extent necessary for the proper 
enforcement of this chapter;  
    (e) Public and private agencies responsible for 
administering publicly financed assistance programs for the 
purpose of monitoring the eligibility of the program's 
recipients;  
    (f) The department of labor and industry for the purpose of 
determining the eligibility of the data subject;  
    (g) Local and state welfare agencies for monitoring the 
eligibility of the data subject for assistance programs, or for 
any employment or training program administered by those 
agencies, whether alone, in combination with another welfare 
agency, or in conjunction with the department of economic 
security; and 
    (h) Local, state and federal law enforcement agencies for 
the sole purpose of ascertaining the last known address and 
employment location of the data subject, provided the data 
subject is the subject of a criminal investigation.  
    Data on individuals, employers, and employing units which 
are collected, maintained, or used by the department in an 
investigation pursuant to section 268.18, subdivision 3 are 
confidential as to data on individuals and protected nonpublic 
data as defined in section 13.02, subdivisions 3 and 13 as to 
nonindividual employers and employing units, and shall not be 
disclosed except pursuant to statute or valid court order or to 
a party named in a criminal proceeding, administrative or 
judicial, for preparation of a defense.  
     Data on individuals, employers, and employing units which 
are collected, maintained, or used by the department in the 
adjudication of a separation or eligibility issue pursuant to 
the administration of section 268.10, subdivision 2 are 
confidential as to data on individuals and protected nonpublic 
data as to nonindividual employers and employing units as 
defined in section 13.02, subdivisions 3 and 13 and shall not be 
disclosed except pursuant to the administration of section 
268.10, subdivisions 3 to 8 or pursuant to a valid court order.  
     Aggregate data about employers compiled from individual job 
orders placed with the department of economic security are 
nonpublic data as defined in section 13.02, subdivision 9 if the 
commissioner determines that divulging the data would result in 
disclosure of the identity of the employer.  The general 
aptitude test battery and the nonverbal aptitude test battery as 
administered by the department are also classified as nonpublic 
data.  
      Data on individuals collected, maintained or created 
because an individual applies for benefits or services provided 
by the energy assistance and weatherization programs 
administered by the department of economic security is private 
data on individuals and shall not be disseminated except 
pursuant to section 13.05, subdivisions 3 and 4.  
      Data gathered by the department pursuant to the 
administration of sections 268.03 to 268.24 shall not be made 
the subject or the basis for any suit in any civil proceedings, 
administrative or judicial, unless the action is initiated by 
the department. 
    Sec. 3.  Minnesota Statutes 1982, section 256D.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  [POLICY; STANDARDS OF ASSISTANCE.] The 
objectives of sections 256D.01 to 256D.21 are to provide a sound 
administrative structure for public assistance programs; to 
maximize the use of federal funds money for public assistance 
purposes; and to provide an integrated public assistance program 
for those all persons in the state meeting the eligibility 
criteria contained in this chapter without adequate income or 
resources to maintain a subsistence reasonably compatible with 
decency and health. 
    It is hereby declared to be the policy of this state that 
persons unable to provide for themselves and not otherwise 
provided for by law and who meet the eligibility requirements of 
sections 256D.01 to 256D.21 shall be are entitled to receive 
such grants of general assistance, within the time limits set 
forth in this chapter as may be necessary to maintain a 
subsistence reasonably compatible with decency and health.  The 
furnishing of such Providing this assistance and services is a 
matter of public concern and a necessity in promoting the public 
health and welfare. 
    A principal objective in providing general assistance shall 
be is to provide for persons ineligible for federal programs who 
are unable to provide for themselves.  To achieve these aims, 
the commissioner shall establish minimum standards of assistance 
for general assistance.  The minimum standard for cash payments 
to recipients shall be:  as to shelter and utilities, 100 
percent of the actual need or state standards therefor, subject 
to the maximum established for shelter in the aid to the blind, 
aid to the disabled, and old age assistance programs in 
December, 1973; and as to other budgetary items, 50 percent, of 
those established for said items in the aid to the blind, aid to 
the disabled, and old age assistance programs in December, 1973 
of assistance determines the total amount of the general 
assistance grant without separate standards for shelter, 
utilities, or other needs and shall not be less than the 
combined total of the minimum standards of assistance for 
shelter and basic needs in effect on February 1, 1983.  The 
standards of assistance shall not be lower for a recipient 
sharing a residence with another person unless that person is a 
responsible relative of the recipient who is also eligible for 
general assistance.  The minimum standards of assistance shall 
authorize the payment of rates negotiated by local agencies for 
recipients living in a room and board arrangement.  In order to 
maximize the use of federal funds, the commissioner shall 
promulgate regulations adopt rules, to the extent permitted by 
federal law for eligibility for the emergency assistance program 
under aid to families with dependent children, and under the 
terms of sections 256D.01 to 256D.21 for general assistance, to 
require the use of the emergency program under aid to families 
with dependent children as the primary financial resource when 
available.  The commissioner shall provide by regulation rule 
for the eligibility for general assistance of persons with 
seasonal income, and may attribute seasonal income to other 
periods not in excess of one year from receipt by an applicant 
or recipient.  
    Sec. 4.  Minnesota Statutes 1982, section 256D.02, 
subdivision 4, is amended to read: 
    Subd. 4.  [GENERAL ASSISTANCE.] "General assistance" means 
cash payments to persons unable to provide themselves with a 
reasonable subsistence compatible with decency and health and 
who are not otherwise provided for under the laws of this state 
or the United States.  It shall include cash payments for goods, 
shelter, fuel, food, clothing, light, necessary household 
supplies, and personal need items.  General assistance shall not 
include payments for foster care, child welfare services, or 
other social services.  Vendor payments and vouchers may be made 
issued only as provided for in section 256D.09.  
    Sec. 5.  Minnesota Statutes 1982, section 256D.02, is 
amended by adding a subdivision to read: 
    Subd. 8a.  [JOBS PROGRAM ALLOWANCE.] An allowance received 
pursuant to section 13 is unearned income under subdivision 8.  
    Sec. 6.  Minnesota Statutes 1982, section 256D.05, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [TEMPORARY STANDARDS.] Notwithstanding the 
provisions of subdivision 1, from March 24, 1982 until June 30 
to September 30, 1983, each person or family whose income and 
resources are less than the standard of assistance established 
by the commissioner, and who is not eligible for the federally 
aided assistance programs of emergency assistance or aid to 
families with dependent children, or any successor to those 
programs, shall be eligible for and entitled to general 
assistance if the person or family is:  
    (a) A person who is suffering from a permanent or temporary 
illness, injury, or incapacity which is both medically certified 
and prevents the person from engaging in suitable employment, 
and who, if the medical certification establishes that the 
illness, injury, or incapacity is temporary and recommends a 
reasonable plan for rehabilitation, is following the plan;  
    (b) A person whose presence in the home on a substantially 
continuous basis is required because of the certified illness or 
incapacity of another member of the household;  
    (c) A person who has been placed in a licensed or certified 
facility for purposes of physical or mental health or 
rehabilitation, if the placement is based on illness or 
incapacity, and is pursuant to a plan developed or approved by 
the local agency through its director or designated 
representative;  
     (d) A person who resides in a shelter facility described in 
subdivision 3;  
     (e) A person who is or may be eligible for displaced 
homemaker services, programs, or assistance under section 4.40. 
In determining eligibility of the person for general assistance, 
income received as a stipend shall be disregarded as provided in 
section 4.40;  
     (f) A person who is unable to secure suitable employment 
due to inability to communicate in the English language, and 
who, if assigned to a language skills program by the local 
agency, is participating in that program;  
     (g) A person not described in clause (a) or (c) who is 
diagnosed by a licensed physician or licensed consulting 
psychologist as mentally ill or mentally retarded;  
     (h) A person who is unable to secure suitable employment 
due to a lack of marketable skills and who, if assigned to a 
vocational counseling, vocational rehabilitation, or work 
training program by the local agency, is participating in that 
program.  Eligibility for general assistance under clause (h) is 
limited to five weeks per calendar year;  
    (i) A person who has an application pending for the program 
of supplemental security income for the aged, blind and disabled 
or has been terminated from that program and has an appeal from 
that termination pending, and who has executed an interim 
assistance authorization agreement pursuant to the provisions of 
section 256D.06, subdivision 5; or 
    (j) A person who is unable to secure suitable employment 
because his advanced age significantly affects his ability to 
engage in substantial work.  This clause is effective January 1, 
1983.  
    The commissioner is authorized to adopt temporary rules as 
necessary to implement this subdivision.  
    This subdivision is repealed July October 1, 1983. 
    Sec. 7.  Minnesota Statutes 1982, section 256D.06, 
subdivision 5, is amended to read: 
    Subd. 5.  Any applicant, otherwise eligible for general 
assistance and possibly eligible for maintenance benefits from 
any other source shall be obligated to (a) make application for 
those benefits within 30 days of the general assistance 
application; and (b) execute an interim assistance authorization 
agreement on a form as directed by the commissioner.  If found 
eligible for benefits from other sources, and a payment received 
from another source relates to the period during which general 
assistance was also being received, the recipient shall be 
required to reimburse the local agency for the interim 
assistance paid.  Reimbursement shall not exceed the amount of 
general assistance paid during the time period to which the 
other maintenance benefits apply and shall not exceed the state 
standard applicable to that time period.  The commissioner shall 
adopt rules, and may adopt temporary rules, authorizing local 
agencies to retain from the amount recovered under an interim 
assistance agreement 25 percent plus actual reasonable fees, 
costs, and disbursements of appeals and litigation, of providing 
special assistance to the recipient in processing the 
recipient's claim for maintenance benefits from another source. 
The money retained under this section shall be from the state 
share of the recovery.  The local agency may contract with 
qualified persons to provide the special assistance.  The rules 
adopted by the commissioner shall include the methods by which 
local agencies shall identify, refer, and assist recipients who 
may be eligible for benefits under federal programs for the 
disabled.  This provision subdivision shall does not require 
repayment of per diem payments made to shelters for battered 
women pursuant to section 256D.05, subdivision 3.  
    Sec. 8.  Minnesota Statutes 1982, section 256D.09, 
subdivision 2, is amended to read: 
    Subd. 2.  Notwithstanding the provisions of subdivision 1, 
the commissioner shall provide by rule and regulation, and may 
adopt temporary rules, for situations in which vouchers or 
vendor payments may be made issued by local agencies because of 
the inability of the recipient to manage his general assistance 
grant for his own or family's benefit.  
    Sec. 9.  Minnesota Statutes 1982, section 256D.09, is 
amended by adding a subdivision to read: 
    Subd. 3.  [EMPLOYMENT PAYMENTS BY GRANT DIVERSION.] 
Notwithstanding the provisions of subdivision 1, the 
commissioner may establish by rule or temporary rule a grant 
diversion program for payment of all or a part of a recipient's 
grant to a private, non-profit, or public employer who agrees to 
employ the recipient.  The commissioner shall design the program 
to provide, to the extent possible, employment or 
employment-related training that will enable recipients to 
become self-supporting.  A recipient shall be eligible for 
general assistance medical care during the term of the grant 
diversion contract to the extent that medical care coverage is 
not provided by the employer.  Any rule adopted by the 
commissioner:  
    (a) Shall require the local agencies to administer the 
grant diversion program directly or to delegate administration 
of the program to another unit of government;  
    (b) Shall require that grants paid to employers be paid 
pursuant to a written grant diversion contract;  
    (c) Shall determine the amount of the grant to be paid to 
the employer and the term of the grant diversion contract;  
    (d) Shall establish standards to ensure that recipients 
hired pursuant to grant diversion contracts do not displace 
other workers;  
    (e) Shall provide for the amount of the wage to be paid to 
the recipient, which shall not be less than the minimum wage for 
jobs with non-profit and public employers and the usual and 
customary wage for jobs with private employers;  
    (f) Shall provide for the minimum number of hours per month 
the recipient must work, which shall be sufficient to provide a 
net monthly wage equal to or exceeding the difference between 
the amount of the grant retained by the recipient and 150 
percent of the recipient's monthly grant; and 
    (g) May establish other terms and conditions for the 
operation of the grant diversion program.  
    Sec. 10.  [256D.111] [REGISTRATION FOR WORK; 
DISQUALIFICATION.] 
    Subdivision 1.  [REGISTRATION REQUIREMENT.] Unless exempt 
in accordance with the provisions of subdivision 2, an adult who 
is a recipient of general assistance and who is not employed is 
required to register for employment services with the department 
of economic security, be available for work and comply with 
reasonable reporting and job search requirements as established 
by the commissioner of economic security in permanent or 
temporary rule, and accept any offer of suitable employment.  
    Subd. 2.  [EXEMPTIONS.] A recipient is not required to 
register for employment services with the department of economic 
security and comply with the other requirements of subdivision 1 
if he is:  
    (a) a person who is suffering from a permanent or temporary 
illness, injury, or incapacity which is medically certified and 
which prevents the person from obtaining or retaining employment;
    (b) a person whose presence in the home on a substantially 
continuous basis is required because of the certified illness, 
injury, incapacity, or the age of another member of the 
household;  
    (c) a person who has been placed in a licensed or certified 
facility for purposes of physical or mental health or 
rehabilitation, or in an approved chemical dependency 
domiciliary facility, if the placement is based on illness or 
incapacity and is pursuant to a plan developed or approved by 
the local agency through its director or designated 
representative;  
    (d) a person who resides in a shelter facility described in 
section 256D.05, subdivision 3;  
    (e) a person who is or may be eligible for displaced 
homemaker services, programs, or assistance under section 4.40, 
but only if that person is enrolled as a full-time student;  
    (f) a person not described in clause (a) or (c) who is 
diagnosed by a licensed physician or licensed consulting 
psychologist as mentally retarded or mentally ill, and that 
condition prevents the person from obtaining or retaining 
employment;  
    (g) a person who has an application pending for the social 
security disability program or the program of supplemental 
security income for the aged, blind and disabled, or who has 
been terminated from either program and has an appeal from that 
termination pending;  
    (h) a person who is unable to obtain or retain employment 
because his advanced age significantly affects his ability to 
seek or engage in substantial work;  
    (i) a person who has been referred to, has applied for, or 
is in a work training, work experience, vocational 
rehabilitation, or other employment related educational program; 
but the period of time the person is exempted pursuant to this 
clause, while awaiting acceptance into the program, shall not 
exceed two months;  
    (j) an adult member of a household with children in which 
another adult is employed full time or has registered for 
employment services with the department of economic security or 
been accepted in a work training program; or 
    (k) a person who has been certified as unemployable by the 
commissioner of economic security.  
    Subd. 3.  [RIGHT TO HEARING.] Any person required by the 
local agency to register in accordance with the provisions of 
subdivision 1 is entitled, prior to grant reduction, suspension, 
or termination, to a hearing pursuant to the provisions of 
section 256D.10 on the issue of whether the person comes within 
the exemptions contained in subdivision 2.  
    Subd. 4.  [NOTICE OF NONCOMPLIANCE.] No notice of grant 
reduction, suspension, or termination on the ground that a 
recipient has failed to comply with the requirements of 
subdivision 1 shall be given by the local agency pursuant to 
section 256D.10 until the commissioner of economic security 
certifies in writing to the local agency that the recipient has 
been finally determined, in accordance with the notice, hearing, 
and appeal rights and procedures applicable to the work 
incentive program, as prescribed in section 256.736, subdivision 
4, clause (4), to have failed to comply with the requirements of 
subdivision 1.  A final determination, if made in accordance 
with these procedures, shall be binding upon the local agency 
and the recipient.  
    Subd. 5.  [RULEMAKING.] The commissioner shall adopt rules 
and is authorized to adopt temporary rules:  
    (a) providing for a reasonable period of disqualification 
from the receipt of general assistance for a recipient who is 
not exempt pursuant to subdivision 2 and who has been finally 
determined pursuant to the procedure prescribed in subdivision 4 
to have failed to comply with the requirements of subdivision 1, 
provided that the period of disqualification for the first 
failure to comply shall not exceed one month;  
    (b) providing for the use of vouchers or vendor payments 
with respect to the family of a recipient described in clause 
(a); and 
    (c) providing that at the time of the approval of an 
application for general assistance, the local agency gives to 
the recipient a written notice in plain and easily understood 
language describing the recipient's job registration, search, 
and acceptance obligations under this section, and the period of 
disqualification that will be imposed for a failure to comply 
with those obligations.  
    Sec. 11.  [256D.112] [TEMPORARY AUTHORITY TO REFER CERTAIN 
RECIPIENTS TO COMMISSIONER OF ECONOMIC SECURITY.] 
    The local agency shall refer a recipient to the 
commissioner of economic security for services under the 
Minnesota Emergency Employment Development Act jobs program upon 
the payment to the recipient of a one-month grant.  A referral 
shall be in writing; shall describe the jobs program for which 
the referral is being made; shall state the address of the 
office to which the recipient is being referred; and shall state 
that if the recipient is not accepted for participation in the 
jobs program, the recipient should return to the local agency. 
Notwithstanding the provisions of section 10, subdivision 3, and 
section 256D.10, assistance to a general assistance recipient 
referred to the commissioner of economic security pursuant to 
this section shall be suspended at the time of the referral for 
a period of 30 days following the period for which a grant has 
been issued.  If the recipient does not return to the local 
agency within the 30-day period, assistance shall be 
terminated.  This section does not apply:  
    (1) to persons that the commissioner of economic security 
has determined, pursuant to section 12, are not eligible for the 
Minnesota Emergency Employment Development jobs program; are not 
likely to secure a job through the jobs program; or are not able 
to successfully perform a job available through the jobs program;
    (2) to persons who are recipients of general assistance on 
October 1, 1983; and 
    (3) to persons whom the local agency has substantial reason 
to believe are covered by section 10, subdivision 2.  
    Nothing in this section shall be construed as prohibiting 
any recipient who has not been referred by the local agency from 
applying to the commissioner of economic security for services 
under the Minnesota emergency employment development jobs 
program.  The local agency shall provide to all recipients a 
written description of the Minnesota emergency employment 
development jobs program.  
     Upon receipt of notice from the commissioner of public 
welfare that the Minnesota emergency employment development jobs 
program is terminated, this section is ineffective and the local 
agency shall not refer any recipient to the commissioner of 
economic security under this section.  
    Sec. 12.  [268.80] [APPLICATION PROCESS; DETERMINATIONS.] 
    Any person may apply to the commissioner for services under 
the Minnesota emergency employment development jobs program. 
Upon receiving an application, the commissioner shall promptly 
determine the person's eligibility for services under the 
program; the person's ability to successfully perform a job 
available through the program; and, within three business days, 
the person's eligibility for an allowance pursuant to section 
13.  In determining the eligibility of a person for the 
allowance, the commissioner shall apply the eligibility 
standards set forth in sections 256D.01 to 256D.21.  A person 
referred by a local agency pursuant to the provisions of section 
11 shall be deemed to be eligible for the allowance.  If the 
commissioner finds at any time that a person is not eligible for 
services under the jobs program, or if the commissioner 
determines after a three-month period that the person is 
unlikely to secure a job through the jobs program, then the 
commissioner shall issue a written determination stating the 
findings and provide the person with a written referral to the 
appropriate local agency.  If the commissioner finds at any 
time, pursuant to standards established by the commissioner by 
rule or temporary rule, that a person is not able to 
successfully perform a job available through the jobs program, 
the commissioner shall issue a written determination stating the 
findings and explaining the person's right to appeal pursuant to 
section 14, and shall provide the person with a written referral 
to the appropriate local agency. If the commissioner finds that 
a person is not eligible for an allowance pursuant to section 
13, the commissioner shall advise the person in writing that the 
person may make an application for general assistance with the 
appropriate local agency.  
    Sec. 13.  [268.81] [PAYMENT OF ALLOWANCE.] 
    A person accepted pursuant to section 12 for participation 
in the Minnesota emergency employment development jobs program 
and determined by the commissioner to satisfy the eligibility 
standards set forth in sections 256D.01 to 256D.21, shall be 
paid a cash allowance by the commissioner in an amount which is 
not less than the amount of the general assistance grant that 
the person would otherwise receive pursuant to sections 256D.01 
to 256D.21.  The commissioner shall adopt a permanent or 
temporary rule establishing the amounts of allowances to be paid 
pursuant to this section.  The initial allowance shall be paid 
to the person as soon as administratively feasible.  A person 
referred by a local agency pursuant to section 11 shall be paid 
the initial allowance upon the expiration of the period covered 
by the one-month grant received from the local agency. 
Thereafter, the allowance shall be paid at intervals as the 
commissioner shall prescribe by rule or temporary rule.  Until 
June 30, 1985, a person receiving an allowance when the 
Minnesota emergency employment development jobs program is 
terminated under article 8, section 11, shall continue to be 
paid an allowance under this section if he continues to meet the 
eligibility standards set forth in sections 256D.01 to 256D.21.  
    Sec. 14.  [268.82] [APPEAL PROCEDURE.] 
    A person aggrieved by a determination issued pursuant to 
section 12 that the person is not able to successfully perform a 
job available through the Minnesota emergency employment 
development jobs program may appeal that determination, in 
accordance with the time limits and procedures applicable to the 
work incentive program, as prescribed in section 256.736, 
subdivision 4, clause (4).  If otherwise eligible under section 
13, the person shall receive the allowance prescribed by section 
13 until a final decision on the appeal is rendered.  
    Sec. 15.  [268.83] [SUITABLE EMPLOYMENT FOR PURPOSES OF 
GENERAL ASSISTANCE.] 
    For purposes of eligibility for general assistance pursuant 
to sections 256D.01 to 256D.21, a job provided through the 
Minnesota emergency employment development jobs program is 
"suitable employment," as that term is defined in section 
256D.02, subdivision 13.  
    Sec. 16. [TRANSFER OF FUNDS.] 
    If the utilization of the Minnesota emergency employment 
development jobs program, the allowances program, and the 
general assistance program is significantly different from the 
projected utilization, then the commissioners of economic 
security and public welfare may, upon approval by the 
legislative advisory commission and the governor according to 
section 3.30, transfer money from the Minnesota emergency 
employment development (MEED) account to either (1) the special 
account established for the purpose of funding allowances paid 
pursuant to section 13; or (2) the general assistance account. 
Money may also be transferred pursuant to this section between 
the department of economic security special allowances account 
and the general assistance account in the department of public 
welfare.  
    Sec. 17.  [REPEALER.] 
    Minnesota Statutes 1982, sections 256D.02, subdivision 14; 
and 256D.06, subdivision 1a, are repealed.  Minnesota Statutes 
1982, section 256D.05, subdivision 1a is repealed effective 
October 1, 1983.  
    Sec. 18.  [268.84] [SUNSET PROVISION.] 
    Sections 5 and 11 to 16 of this article are repealed June 
30, 1985.  
    Sec. 19.  [EFFECTIVE DATE.] 
    Sections 6 to 9, 17, and 18 of this article are effective 
the day following final enactment.  Sections 1 to 5, and 10 to 
16 of this article are effective October 1, 1983. 

                               ARTICLE 9

                   SERVICES FOR THE MENTALLY RETARDED 
    Section 1.  Minnesota Statutes 1982, section 252.24, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SELECTION OF DEVELOPMENTAL ACHIEVEMENT 
CENTERS.] The county board shall administer developmental 
achievement services, including training and habilitation 
services provided by licensed developmental achievement centers 
to residents of intermediate care facilities for the mentally 
retarded.  The county board shall ensure that transportation is 
provided for persons who fulfill the eligibility requirements of 
section 252.23, clause (1), utilizing the most efficient and 
reasonable means available.  The county board may contract for 
developmental achievement services and transportation from a 
center which is licensed under the provisions of sections 
245.781 to 245.813, 252.28, and 257.175, and in the board's 
opinion, best provides daytime developmental achievement 
services for mentally retarded and cerebral palsied persons 
within the appropriation and medical assistance resources made 
available for this purpose.  Daytime developmental achievement 
services administered by the county board shall comply with 
standards established by the commissioner pursuant to 
subdivision 2 and applicable federal regulations.  
     Sec. 2.  Minnesota Statutes 1982, section 252.28, is 
amended to read: 
    252.28 [COMMISSIONER OF PUBLIC WELFARE; DUTIES.] 
    Subdivision 1.  [DETERMINATIONS; BIENNIAL 
REDETERMINATIONS.] The commissioner of public welfare may shall 
determine, and shall redetermine biennially, the need, location, 
size, and program of public and private residential and day care 
facilities and services for mentally retarded children and 
adults. 
    Subd. 2.  [RULES; PROGRAM STANDARDS; LICENSES.] The 
commissioner of public welfare shall: 
    (1) Establish uniform rules, regulations and program 
standards for each type of residential and day facility or 
service for more than four mentally retarded persons, including 
state institutions under control of the commissioner and serving 
mentally retarded persons, and excluding mentally retarded 
persons residing with their families. 
    (2) Grant licenses according to the provisions of Laws 
1976, chapter 243, sections 2 to 13. 
    Subd. 3.  [LICENSING DETERMINATIONS.] (1) No new license 
shall be granted pursuant to this section when the issuance of 
the license would substantially contribute to an excessive 
concentration of community residential facilities within any 
town, municipality or county of the state. 
    (2) In determining whether a license shall be issued 
pursuant to this subdivision, the commissioner of public welfare 
shall specifically consider the population, size, land use plan, 
availability of community services and the number and size of 
existing public and private community residential facilities in 
the town, municipality or county in which a licensee seeks to 
operate a residence.  Under no circumstances may the 
commissioner newly license any facility pursuant to this section 
except as provided in section 245.812.  The commissioner of 
public welfare shall establish uniform rules and regulations to 
implement the provisions of this subdivision. 
             (3) Licenses for community facilities and services shall 
be issued pursuant to section 245.821. 
    Subd. 4.  [RULES; DECERTIFICATION OF BEDS.] The 
commissioner shall promulgate in rule criteria for 
decertification of beds in intermediate care facilities for the 
mentally retarded, and shall encourage providers in voluntary 
decertification efforts.  The commissioner shall not recommend 
to the commissioner of health the involuntary decertification of 
an intermediate care facility for beds for the mentally retarded 
prior to the availability of appropriate services for those 
residents affected by the decertification.  The commissioner of 
health shall decertify those intermediate care beds determined 
to be not needed by the commissioner of welfare.  
    Sec. 3.  [252.291] [LIMITATION ON DETERMINATION OF NEED.] 
    Subdivision 1.  [MORATORIUM.] Notwithstanding section 
252.28, subdivision 1, or any other law or rule to the contrary, 
the commissioner of public welfare shall deny any request for a 
determination of need and refuse to grant a license pursuant to 
section 245.782 for any new intermediate care facility for 
mentally retarded persons or for an increase in the licensed 
capacity of an existing facility except as provided in 
subdivision 2.  In no event shall the total of certified 
intermediate care beds for mentally retarded persons in 
community facilities and state hospitals exceed 7,500 beds as of 
July 1, 1983, and 7,000 beds as of July 1, 1986.  "Certified 
bed" means an intermediate care bed for the mentally retarded 
certified by the commissioner of health for the purposes of the 
medical assistance program under United States Code, title 42, 
sections 1396 to 1396p, as amended through December 31, 1982.  
    Subd. 2.  [EXCEPTIONS.] The commissioner of public welfare 
in coordination with the commissioner of health may approve a 
new intermediate care facility for mentally retarded persons 
only in the following circumstances:  
    (a) when the facility is developed in accordance with a 
request for proposal system established pursuant to subdivision 
3, clause (b);  
    (b) when the facility is necessary to serve the needs of 
identifiable mentally retarded persons who are seriously 
behaviorally disordered or who are physically or sensorily 
impaired; or 
    (c) to license beds in new facilities where need was 
determined by the commissioner prior to the effective date of 
this section.  
    Subd. 3.  [DUTIES OF COMMISSIONER OF PUBLIC WELFARE.] The 
commissioner shall:  
    (a) establish standard admission criteria for state 
hospitals and county utilization targets to limit and reduce the 
number of intermediate care beds in state hospitals and 
community facilities in accordance with approved waivers under 
United States Code, title 42, sections 1396 to 1396p, as amended 
through December 31, 1982, to assure that appropriate services 
are provided in the least restrictive setting;  
    (b) provide technical assistance so that county boards may 
establish a request for proposal system for meeting individual 
service plan objectives through home and community-based 
services; alternative community services; or, if no other 
alternative will meet the needs of identifiable individuals for 
whom the county is financially responsible, a new intermediate 
care facility for mentally retarded persons; and 
    (c) establish a client tracking and evaluation system as 
required under applicable federal waiver regulations, Code of 
Federal Regulations, title 42, sections 431, 435, 440, and 441, 
as amended through December 31, 1982.  
    (d) develop a state plan for the delivery and funding of 
residential day and support services to the mentally retarded in 
Minnesota and submit that plan to the clerk of each house of the 
Minnesota legislature on or before the 15th of January of each 
biennium beginning January 15, 1985.  The biennial mental 
retardation plan shall include but not be limited to: 
     (1) county by county maximum intermediate care bed 
utilization quotas;  
    (2) plans for the development of the number and types of 
services alternative to intermediate care beds;  
    (3) procedures for the administration and management of the 
plan;  
    (4) procedures for the evaluation of the implementation of 
the plan; and 
     (5) the number, type, and location of intermediate care 
beds targeted for decertification. 
     The commissioner shall modify the plan to ensure 
conformance with the medical assistance home and community-based 
services waiver.  
    Subd. 4.  [MONITORING.] The commissioner of public welfare, 
in coordination with the commissioner of health, shall implement 
mechanisms to monitor and analyze the effect of the bed 
moratorium in the different geographic areas of the state.  The 
commissioner of public welfare shall submit to the legislature 
annually beginning January 15, 1984, an assessment of the impact 
of the moratorium by geographic areas.  
     Subd. 5.  [RULEMAKING.] The commissioner of public welfare 
shall promulgate temporary and permanent rules pursuant to 
chapter 14, the Administrative Procedure Act, to implement this 
section.  
    Sec. 4.  Minnesota Statutes 1982, section 256B.02, 
subdivision 8, is amended to read: 
    Subd. 8.  [MEDICAL ASSISTANCE; MEDICAL CARE.] "Medical 
assistance" or "medical care" means payment of part or all of 
the cost of the following care and services for eligible 
individuals whose income and resources are insufficient to meet 
all of such this cost: 
    (1) inpatient hospital services.;  
    (2) skilled nursing home services and services of 
intermediate care facilities., including training and 
habilitation services, as defined in section 256B.50, 
subdivision 1, for mentally retarded individuals residing in 
intermediate care facilities for the mentally retarded;  
    (3) physicians' services.;  
    (4) outpatient hospital or clinic services.;  
    (5) home health care services.;  
    (6) private duty nursing services.;  
    (7) physical therapy and related services.;  
    (8) dental services, excluding cast metal restorations.;  
    (9) laboratory and x-ray services.;  
    (10) the following if prescribed by a licensed practitioner:
drugs, eyeglasses, dentures, and prosthetic devices.  The 
commissioner shall designate a formulary committee which shall 
advise the commissioner on the names of drugs for which payment 
shall be made, recommend a system for reimbursing providers on a 
set fee or charge basis rather than the present system, and 
develop methods encouraging use of generic drugs when they are 
less expensive and equally effective as trademark drugs.  The 
commissioner shall appoint the formulary committee members no 
later than 30 days following July 1, 1981.  The formulary 
committee shall consist of nine members, four of whom shall be 
physicians who are not employed by the department of public 
welfare, and a majority of whose practice is for persons paying 
privately or through health insurance, three of whom shall be 
pharmacists who are not employed by the department of public 
welfare, and a majority of whose practice is for persons paying 
privately or through health insurance, a consumer 
representative, and a nursing home representative.  Committee 
members shall serve two year terms and shall serve without 
compensation.  The commissioner may establish a drug formulary.  
Its establishment and publication shall not be subject to the 
requirements of the administrative procedure act, but the 
formulary committee shall review and comment on the formulary 
contents.  The formulary shall not include:  drugs for which 
there is no federal funding; over the counter drugs, except for 
antacids, acetaminophen, family planning products, aspirin, 
insulin, prenatal vitamins, and vitamins for children under the 
age of seven; nutritional products; anorectics; and drugs for 
which medical value has not been established.  Payment to drug 
vendors shall not be modified before the formulary is 
established.  The commissioner may promulgate conditions for 
prohibiting payment for specific drugs after considering the 
formulary committee's recommendations.  
      The basis for determining the amount of payment shall be 
the actual acquisition costs of the drugs plus a fixed 
dispensing fee established by the commissioner.  Actual 
acquisition cost includes quantity and other special discounts 
except time and cash discounts.  Establishment of this fee shall 
not be subject to the requirements of the administrative 
procedure act.  Whenever a generically equivalent product is 
available, payment shall be on the basis of the actual 
acquisition cost of the generic drug, unless the prescriber 
specifically indicates "dispense as written" on the prescription 
as required by section 151.21, subdivision 2.  
     Notwithstanding the above provisions, implementation of any 
change in the fixed dispensing fee which has not been subject to 
the administrative procedure act shall be limited to not more 
than 180 days, unless, during that time, the commissioner shall 
have initiated rulemaking through the administrative procedure 
act.;  
    (11) diagnostic, screening, and preventive services.;  
    (12) health care pre-payment plan premiums and insurance 
premiums if paid directly to a vendor and supplementary medical 
insurance benefits under Title XVIII of the Social Security Act.;
    (13) abortion services, but only if one of the following 
conditions is met: 
     (a) The abortion is a medical necessity.  "Medical 
necessity" means (1) the signed written statement of two 
physicians indicating the abortion is medically necessary to 
prevent the death of the mother, and (2) the patient has given 
her consent to the abortion in writing unless the patient is 
physically or legally incapable of providing informed consent to 
the procedure, in which case consent will be given as otherwise 
provided by law; 
     (b) The pregnancy is the result of criminal sexual conduct 
as defined in section 609.342, clauses (c), (d), (e)(i), and 
(f), and the incident is reported within 48 hours after the 
incident occurs to a valid law enforcement agency for 
investigation, unless the victim is physically unable to report 
the criminal sexual conduct, in which case the report shall be 
made within 48 hours after the victim becomes physically able to 
report the criminal sexual conduct; or 
     (c) The pregnancy is the result of incest, but only if the 
incident and relative are reported to a valid law enforcement 
agency for investigation prior to the abortion.;  
    (14) transportation costs incurred solely for obtaining 
emergency medical care or transportation costs incurred by 
non-ambulatory persons in obtaining emergency or non-emergency 
medical care when paid directly to an ambulance company, common 
carrier, or other recognized providers of transportation 
services.  For the purpose of this clause, a person who is 
incapable of transport by taxicab or bus shall be considered to 
be non-ambulatory.;  
    (15) to the extent authorized by rule of the state agency, 
costs of bus or taxicab transportation incurred by any 
ambulatory eligible person for obtaining non-emergency medical 
care.; and 
    (16) any other medical or remedial care licensed and 
recognized under state law unless otherwise prohibited by law. 
    Sec. 5.  [256B.092] [CASE MANAGEMENT OF MENTALLY RETARDED 
PERSONS.] 
    Subdivision 1.  [COUNTY OF FINANCIAL RESPONSIBILITY; 
DUTIES.] Before any services shall be rendered to mentally 
retarded persons in need of social service and medical 
assistance, the county of financial responsibility shall conduct 
a diagnostic evaluation in order to determine whether the person 
is or may be mentally retarded.  If a client is diagnosed 
mentally retarded, that county must conduct a needs assessment, 
develop an individual service plan, and authorize placement for 
services.  If the county of financial responsibility places a 
client in another county for services, the placement shall be 
made in cooperation with the host county of service, and 
arrangements shall be made between the two counties for ongoing 
social service, including annual reviews of the client's 
individual service plan.  The host county may not make changes 
in the service plan without approval by the county of financial 
responsibility.  
    Subd. 2.  [MEDICAL ASSISTANCE.] To assure quality case 
management to those county clients who are eligible for medical 
assistance, the commissioner shall:  (a) provide consultation on 
the case management process; (b) assist county agencies in the 
screening and annual reviews of clients to assure that 
appropriate levels of service are provided; (c) provide 
consultation on service planning and development of services 
with appropriate options; (d) provide training and technical 
assistance to county case managers; and (e) authorize payment 
for medical assistance services.  
     Subd. 3.  [TERMINATION OF SERVICES.] County agency case 
managers, under rules of the commissioner, shall authorize and 
terminate services of community and state hospital providers in 
accordance with individual service plans.  Medical assistance 
services not needed shall not be authorized by county agencies 
nor funded by the commissioner.  
    Subd. 4.  [ALTERNATIVE HOME AND COMMUNITY BASED SERVICES.] 
The commissioner shall make payments to county boards 
participating in the medical assistance program to pay costs of 
providing alternative home and community based services to 
medical assistance eligible mentally retarded persons screened 
under subdivision 7.  Payment is available under this 
subdivision only for persons who, if not provided these 
services, would require the level of care provided in an 
intermediate care facility for mentally retarded persons.  
    Subd. 5.  [FEDERAL WAIVERS.] The commissioner shall apply 
for any federal waivers necessary to secure, to the extent 
allowed by law, federal financial participation under United 
States Code, title 42, sections 1396 to 1396p, as amended 
through December 31, 1982, for the provision of services to 
persons who, in the absence of the services, would need the 
level of care provided in a state hospital or a community 
intermediate care facility for mentally retarded persons.  The 
commissioner may seek amendments to the waivers or apply for 
additional waivers under United States Code, title 42, sections 
1396 to 1396p, as amended through December 31, 1982, to contain 
costs.  The commissioner shall ensure that payment for the cost 
of providing home and community based alternative services under 
the federal waiver plan shall not exceed the cost of 
intermediate care services that would have been provided without 
the waivered services.  
    Subd. 6.  [RULES.] The commissioner shall adopt temporary 
and permanent rules to establish required controls, 
documentation, and reporting of services provided in order to 
assure proper administration of the approved waiver plan.  
    Subd. 7.  [SCREENING TEAMS ESTABLISHED.] Each county agency 
shall establish a screening team which, under the direction of 
the county case manager, shall make an evaluation of need for 
home and community based services of persons who are entitled to 
the level of care provided by an intermediate care facility for 
mentally retarded persons or for whom there is a reasonable 
indication that they might need the services in the near 
future.  The screening team shall make an evaluation of need 
within 15 working days of the request for service and within 
five working days of an emergency admission of an individual to 
an intermediate care facility for mentally retarded persons. The 
screening team shall consist of the case manager, the client, a 
parent or guardian, a qualified mental retardation professional, 
as defined in the Code of Federal Regulations, title 42, section 
442.401, as amended through December 31, 1982, assigned by the 
commissioner.  The case manager shall consult with the client's 
physician or other persons as necessary to make this 
evaluation.  Other persons may be invited to attend meetings of 
the screening team.  No member of the screening team shall have 
any direct or indirect service provider interest in the case.  
    Subd. 8.  [SCREENING TEAM DUTIES.] The screening team shall:
    (a) review diagnostic data;  
    (b) review health, social, and developmental assessment 
data using a uniform screening tool specified by the 
commissioner;  
     (c) identify the level of services needed to maintain the 
person in the most normal and least restrictive setting that is 
consistent with treatment needs;  
     (d) identify other noninstitutional public assistance or 
social service that may prevent or delay long-term residential 
placement;  
     (e) determine whether a client is in serious need of 
long-term residential care;  
    (f) make recommendations to the county agency regarding 
placement and payment for:  (1) social service or public 
assistance support to maintain a client in the client's own home 
or other place of residence; (2) training and habilitation 
service, vocational rehabilitation, and employment training 
activities; (3) community residential placement; (4) state 
hospital placement; or (5) a home and community based 
alternative to community residential placement or state hospital 
placement;  
    (g) make recommendations to a court as may be needed to 
assist the court in making commitments of mentally retarded 
persons; and 
    (h) inform clients that appeal may be made to the 
commissioner pursuant to section 256.045.  
    Subd. 9.  [REIMBURSEMENT.] Payment shall not be provided to 
a service provider for any recipient placed in an intermediate 
care facility for the mentally retarded prior to the recipient 
being screened by the screening team.  The commissioner shall 
not deny reimbursement for:  (a) an individual admitted to an 
intermediate care facility for mentally retarded who is assessed 
to need long-term supportive services, if long-term supportive 
services other than intermediate care are not available in that 
community; (b) any individual admitted to an intermediate care 
facility for the mentally retarded under emergency circumstances;
(c) any eligible individual placed in the intermediate care 
facility for the mentally retarded pending an appeal of the 
screening team's decision; or (d) any medical assistance 
recipient when, after full discussion of all appropriate 
alternatives including those that are expected to be less costly 
than intermediate care for mentally retarded, the individual or 
the individual's legal representative insists on intermediate 
care placement.  The screening team shall provide documentation 
that the most cost effective alternatives available were offered 
to this individual or the individual's legal representative.  
    Sec. 6.  Minnesota Statutes 1982, section 256B.19, is 
amended by adding a subdivision to read: 
    Subd. 3.  [STUDY OF MEDICAL ASSISTANCE FINANCIAL 
PARTICIPATION.] The commissioner shall study the feasibility and 
outcomes of implementing a variable medical assistance county 
financial participation rate for long-term care services to 
mentally retarded persons in order to encourage the utilization 
of alternative services to long-term intermediate care for the 
mentally retarded.  The commissioner shall submit his findings 
and recommendations to the legislature by January 20, 1984.  
    Sec. 7.  [256B.501] [RATES FOR COMMUNITY-BASED SERVICES FOR 
THE MENTALLY RETARDED.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the following terms have the meaning given them.  
    (a) "Commissioner" means the commissioner of public welfare.
    (b) "Facility" means a facility licensed as a mental 
retardation residential facility under section 252.28, licensed 
as a supervised living facility under chapter 144, and certified 
as an intermediate care facility for the mentally retarded.  
    (c) "Waivered service" means home or community-based 
service authorized under United States Code, title 42, section 
1396n(c), as amended through December 31, 1982, and defined in 
the Minnesota state plan for the provision of medical assistance 
services.  Waivered services include, at a minimum, case 
management, family training and support, developmental training 
homes, supervised living arrangements, semi-independent living 
services, respite care, and training and habilitation services.  
    (d) "Training and habilitation services" are those health 
and social services needed to ensure optimal functioning of 
persons who are mentally retarded or have related conditions. 
Training and habilitation services shall be provided to a client 
away from the residence unless medically contraindicated by an 
organization which does not have a direct or indirect financial 
interest in the organization which provides the person's 
residential services.  This requirement shall not apply to any 
developmental achievement center which has applied for licensure 
prior to April 15, 1983.  
    Subd. 2.  [AUTHORITY.] The commissioner shall establish 
procedures and rules for determining rates for care of residents 
of intermediate care facilities for the mentally retarded which 
qualify as vendors of medical assistance, waivered services, and 
for provision of training and habilitation services.  Approved 
rates shall be established on the basis of methods and standards 
that the commissioner finds adequate to provide for the costs 
that must be incurred for the quality care of residents in 
efficiently and economically operated facilities and services. 
The procedures shall specify the costs that are allowable for 
payment through medical assistance.  The commissioner may use 
experts from outside the department in the establishment of the 
procedures.  
    Subd. 3.  [RATES FOR INTERMEDIATE CARE FACILITIES FOR THE 
MENTALLY RETARDED.] The commissioner shall establish, by rule, 
procedures for determining rates for care of residents of 
intermediate care facilities for the mentally retarded.  The 
procedures shall be based on methods and standards that the 
commissioner finds are adequate to provide for the costs that 
must be incurred for the care of residents in efficiently and 
economically operated facilities.  In developing the procedures, 
the commissioner shall include: 
    (a) cost containment measures that assure efficient and 
prudent management of capital assets and operating cost 
increases which do not exceed increases in other sections of the 
economy;  
    (b) limits on the amounts of reimbursement for property, 
general and administration, and new facilities;  
    (c) requirements to ensure that the accounting practices of 
the facilities conform to generally accepted accounting 
principles; and 
    (d) incentives to reward accumulation of equity.  
    In establishing rules and procedures for setting rates for 
care of residents in intermediate care facilities for mentally 
retarded persons, the commissioner shall consider the 
recommendations contained in the February 11, 1983, Report of 
the Legislative Auditor on Community Residential Programs for 
the Mentally Retarded and the recommendations contained in the 
1982 Report of the Department of Public Welfare Rule 52 Task 
Force.  Rates paid to supervised living facilities for rate 
years beginning during the fiscal biennium ending June 30, 1985, 
shall not exceed the final rate allowed the facility for the 
previous rate year by more than five percent.  
    Subd. 4.  [WAIVERED SERVICES.] In establishing rates for 
waivered services the commissioner shall consider the need for 
flexibility in the provision of those services to meet 
individual needs identified by the screening team.  
    Subd. 5.  [TRAINING AND HABILITATION SERVICES.] (a) Except 
as provided in subdivision 6, rates for reimbursement under 
medical assistance for training and habilitation services 
provided by a developmental achievement center either as a 
waivered service or to residents of an intermediate care 
facility for mentally retarded persons shall be established and 
paid in acccordance with this subdivision effective January 1, 
1984.  
    (b) Prior to August 1, 1983, the county board shall submit 
to the commissioner its contractual per diem rate and its 
maximum per client annual payment limitations, if any, for each 
developmental achievement center it administers pursuant to 
section 252.24, subdivision 1, for the period from July 1, 1983, 
through December 31, 1983, which shall be the medical assistance 
reimbursement rate established for that developmental 
achievement center for 1983.  If the county rate is based on 
average daily attendance which is less than 93 percent of the 
developmental achievement center's average enrollment for the 
period from July 1, 1983, to December 31, 1983, the commissioner 
shall adjust that rate based on 93 percent average daily 
attendance.  
     (c) The base per diem reimbursement rate established for 
1983 may be increased by the commissioner in 1984 in an amount 
up to the projected percentage change in the average value of 
the consumer price index (all urban) for 1984 over 1983.  In 
subsequent years, the increase in the per diem rate shall not 
exceed the projected percentage change in the average annual 
value of the consumer price index (all urban) for the same time 
period.  
    (d) The county board in which an intermediate care facility 
for mentally retarded persons is located shall contract annually 
with that facility and with the appropriate developmental 
achievement center or training and habilitation service provider 
for provision of training and habilitation services for each 
resident of the facility for whom the services are required by 
the resident's individual service plan.  This contract shall 
specify the county payment rate or the medical assistance 
reimbursement rate, as appropriate; the training and 
habilitation services to be provided; and the performance 
standards for program provision and evaluation.  A similar 
contract shall be entered into between the county and the 
developmental achievement center for persons receiving training 
and habilitation services from that center as a waivered service.
    (e) The commissioner shall reimburse under medical 
assistance up to 210 days of training and habilitation services 
at developmental achievement centers for those centers which 
provided less than or equal to 210 days of training and 
habilitation services in calendar year 1982.  For developmental 
achievement centers providing more than 210 days of services in 
1982, the commissioner shall not reimburse under medical 
assistance in excess of the number of days provided by those 
programs in 1982.  
     (f) Medical assistance payments for training and 
habilitation services shall be made directly to the training and 
habilitation provider after submission of invoices to the 
medical assistance program following procedures established by 
the medical assistance program. 
     (g) Nothing in this subdivision shall prohibit county 
boards from contracting for rates for services not reimbursed 
under medical assistance.  
    Subd. 6.  [NEW DEVELOPMENTAL ACHIEVEMENT PROGRAMS; RATES.] 
The commissioner, upon the recommendation of the local county 
board, shall determine the medical assistance reimbursement rate 
for new developmental achievement programs.  The payment rate 
shall not exceed 125 percent of the average payment rate in the 
region.  
    Subd. 7.  [ALTERNATIVE RATES FOR TRAINING AND HABILITATION 
SERVICES.] Alternative methods may be proposed by the counties 
or the commissioner for provision of training and habilitation 
services during daytime hours apart from a residential facility 
to persons for whom needs identified in their individual service 
plan are not met by the training and habilitation services 
provided at a developmental achievement center.  The 
commissioner shall establish procedures for approval of the 
proposals and for medical assistance payment of rates which 
shall not exceed the average rate allowed in that county for 
training and habilitation services pursuant to subdivision 5. 
Nothing in this subdivision prohibits a county from contracting 
with a developmental achievement center for those purposes.  
    Subd. 8.  [PAYMENT FOR PERSONS WITH SPECIAL NEEDS.] The 
commissioner shall establish by December 31, 1983, procedures to 
be followed by the counties to seek authorization from the 
commissioner for medical assistance reimbursement for waivered 
services or training and habilitation services for very 
dependent persons with special needs in an amount in excess of 
the rates allowed pursuant to subdivisions 2, 4, 5, and 6, and 
procedures to be followed for rate limitation exemptions for 
intermediate care facilities for mentally retarded persons.  No 
excess payment or limitation exemption shall be authorized 
unless the need for the service is documented in the individual 
service plan of the person or persons to be served, the type and 
duration of the services needed are stated, and there is a basis 
for estimated cost of the services.  
    The commissioner shall evaluate the services provided 
pursuant to this subdivision through program and fiscal audits.  
     Subd. 9.  [REPORTING REQUIREMENTS.] The developmental 
achievement center shall submit to the county and the 
commissioner no later than March 1 of each year an annual report 
which includes the actual program revenues and expenditures, 
client information, and program information.  The information 
shall be submitted on forms prescribed by the commissioner.  
    Subd. 10.  [RULES.] To implement this section, the 
commissioner shall promulgate temporary and permanent rules in 
accordance with chapter 14.  To implement subdivision 3, the 
commissioner shall promulgate temporary rules by October 1, 
1983, and permanent rules in accordance with sections 14.01 to 
14.38.  Notwithstanding the provisions of section 14.35, the 
temporary rule promulgated to implement subdivision 3 shall be 
effective for up to 720 days.  
    Sec. 8.  [256B.503] [RULES.] 
     To implement sections 1 to 7, the commissioner shall 
promulgate temporary and permanent rules in accordance with 
sections 14.01 to 14.38.  
    Sec. 9.  Minnesota Statutes 1982, section 256E.06, is 
amended by adding a subdivision to read:  
    Subd. 2a.  [STATE TRANSFER OF FUNDS.] Notwithstanding 
subdivisions 1 and 2, for the purpose of funding training and 
habilitation services provided to residents of intermediate care 
facilities for mentally retarded persons as required under 
federal regulation, the commissioner is authorized to transfer 
on a quarterly basis to the medical assistance state account 
from each county's Community Social Services Act allocation an 
amount equal to the state share of medical assistance 
reimbursement for such services provided to clients for whom the 
county is financially responsible.  Upon federal approval and 
state implementation of the state medical assistance plan, 
county boards will not be responsible for the funding of 
training and habilitation services as a social service to 
residents of intermediate care facilities for the mentally 
retarded.  County board responsibility for training and 
habilitation services shall be assumed under section 256B.20. 
County boards continue to be responsible for funding 
developmental achievement center services not covered under the 
medical assistance program established by United States Code, 
title 42, sections 1396 to 1396p, as amended through December 
31, 1982, and shall develop contractual agreements for these 
services under the authority of chapter 256E.  
    Sec. 10.  [IMPLEMENTATION; USE OF APPROPRIATION.] 
    (a) Up to 15 line item positions are authorized for the 
implementation of provisions of the case management plan, the 
home and community based services waiver program, assisting 
county agencies in screening clients for medical assistance 
services, technical assistance in developing community-based 
alternatives, and management of the mental retardation medical 
assistance program.  
    (b) The contingent appropriation for development and 
implementation of this project shall be expended with the 
approval of the governor after consulting with the legislative 
advisory commission as provided in section 3.30.  Release of 
these funds shall also be contingent upon submission of a plan 
prepared by the commissioner.  The plan shall describe the 
following:  
    (1) the organization, development, and responsibilities of 
requested staff;  
    (2) specification of all the administrative costs 
associated with the program;  
    (3) how the information system will be integrated into the 
community services information system, the medicaid management 
information system, and any other data processing operations of 
the department;  
    (4) the methods for implementing the system; and 
    (5) the projected costs for the maintenance and operation 
of the system.  
    The plan shall be submitted to the chairmen of the house 
appropriations and senate finance committees.  
    Sec. 11.  [REPEALER.] 
    The provisions of sections 2, 3, 5, 7, subdivisions 1, 4, 
and 10 are repealed effective June 30, 1984, if a home and 
community based waiver under United States Code, title 42, 
section 1396n(c), as amended through December 31, 1982, is not 
approved by June 30, 1984.  
    Sec. 12.  [EFFECTIVE DATE.] 
    Sections 1 to 11 are effective the day following final 
enactment. 
    Approved June 9, 1983