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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1984 

                        CHAPTER 534-H.F.No. 1966
           An act relating to public welfare; providing for the 
          collection of statistical data by the department of 
          health on dissolutions and annulments; restricting the 
          use of certain descriptive words to certain licensed 
          facilities; providing for collection of health care 
          cost information; limiting relative responsibility for 
          state hospital costs; providing appeal rights for 
          former recipients of public assistance; limiting 
          medical assistance and general assistance 
          reimbursements for chemical dependency treatment; 
          extending temporary rulemaking authority for 
          prospective payments for inpatient hospital services; 
          extending administrative aid to counties; expanding 
          medical assistance eligibility for certain persons; 
          eliminating the requirement that the commissioner seek 
          a co-payment waiver for HMO enrollees under medical 
          assistance; clarifying existing language relating to 
          asset transfers; increasing the personal needs 
          allowance; reimbursement for additional services under 
          general assistance medical care; providing for 
          recovery of supplemental aid; requiring county 
          investigations; requiring a cost-of-living adjustment 
          to the schedule of contribution of a 
          noninstitutionalized spouse; appropriating money; 
          amending Minnesota Statutes 1982, sections 144.224; 
          144.695; 144.696; 144.698; 144.699; 144.701; 144.702; 
          144.703; 246.50, subdivision 6; 256.045, subdivisions 
          2, 4, 5, and 7; 256B.17, as amended; 256B.19, 
          subdivision 1; 256B.35, subdivision 1; 261.035; 
          Minnesota Statutes 1983 Supplement, sections 256.045, 
          subdivision 3; 256.968; 256.969, subdivisions 2 and 6; 
          and 256B.06, subdivision 1; proposing new law coded in 
          Minnesota Statutes, chapters 144; 256D and 518; 
          repealing Minnesota Statutes 1982, sections 144.7021; 
          144.704; and 144.705. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 144.224, is 
amended to read:  
    144.224 [REPORTS OF DISSOLUTION AND ANNULMENT OF MARRIAGE.] 
    Each month the clerk of court shall file a report with 
forward to the state registrar, reporting commissioner of health 
the dissolutions and annulments of marriage granted by the court 
in statistical report forms collected pursuant to section 3 
during the preceding month.  The report form shall include only 
the following information:  
    a.  Name and, date of birth, birthplace, residence, race, 
and educational attainment of the husband and wife;  
    b.  County of decree;  
    c.  Date and type of decree;  
    d.  Signature of the clerk of court; and Place and date of 
marriage;  
    e.  Date signed of separation;  
    f.  Number and ages of children of marriage;  
    g.  Amount and status of maintenance and child support;  
    h.  Custody of children;  
    i.  Income of the parties;  
    j.  Length of separation and length of marriage; and 
    k.  Number of previous marriages and reasons for ending the 
previous marriages (death, dissolution, or annulment).  
    The commissioner may publish data collected under this 
section in summary form only.  The statistical report form shall 
contain a statement that neither the report form, nor 
information contained in the form, shall be admissible in 
evidence in this or any subsequent proceeding.  
    Sec. 2.  [144.561] [RESTRICTION OF NAME AND DESCRIPTION OF 
CERTAIN MEDICAL FACILITIES.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the following words have the meanings given to them:  
    (a) "Person" means an individual, partnership, association, 
corporation, state, county or local governmental unit or a 
division, department, board or agency of a governmental unit.  
    (b) "Medical facility" means an institution, office, 
clinic, or building, not attached to a licensed hospital, where 
medical services for the diagnosis or treatment of illness or 
injury or the maintenance of health are offered in an outpatient 
or ambulatory setting.  
    Subd. 2.  [PROHIBITION.] No person shall use the words 
"emergency," "emergent," "trauma," "critical," or any form of 
these words which suggest, offer, or imply the availability of 
immediate care for any medical condition likely to cause death, 
disability or serious illness in the name of any medical 
facilities, or in advertising, publications or signs identifying 
the medical facility unless the facility is licensed under the 
provisions of section 144.50.  
    Sec. 3.  Minnesota Statutes 1982, section 144.695, is 
amended to read: 
    144.695 [CITATION.] 
    Sections 144.695 to 144.703 may be cited as the Minnesota 
hospital administration act of 1976 Health Care Cost Information 
Act of 1984. 
    Sec. 4.  Minnesota Statutes 1982, section 144.696, is 
amended to read: 
    144.696 [DEFINITIONS.] 
    Subdivision 1.  Unless the context clearly indicates 
otherwise, for the purposes of sections 144.695 to 144.703, the 
terms defined in this section have the meanings given them. 
    Subd. 2.  "Commissioner of health" means the state 
commissioner of health. 
    Subd. 3.  "Hospital" means any acute care institution 
licensed pursuant to sections 144.50 to 144.58, but does not 
include any health care institution conducted for those who rely 
primarily upon treatment by prayer or spiritual means in 
accordance with the creed or tenets of any church or 
denomination. 
    Subd. 4.  "Commissioner of insurance" means the 
commissioner of insurance.  
    Subd. 5.  "Insurer" means a person selling policies of 
accident and health insurance pursuant to chapter 62A, or 
nonprofit health service plan subscriber contracts pursuant to 
chapter 62C "Outpatient surgical center" means a facility other 
than a hospital offering elective outpatient surgery under a 
license issued under sections 144.50 to 144.58.  
    Sec. 5.  Minnesota Statutes 1982, section 144.698, is 
amended to read: 
    144.698 [REPORTING REQUIREMENTS.] 
    Subdivision 1.  Each hospital and each outpatient surgical 
center, which has not filed the financial information required 
by this section with a voluntary, nonprofit rate review 
reporting organization pursuant to section 144.702, shall file 
annually with the commissioner of health after the close of the 
fiscal year: 
    (a) A balance sheet detailing the assets, liabilities, and 
net worth of the hospital; 
    (b) A detailed statement of income and expenses; and 
    (c) A copy of its most recent cost report, if any, filed 
pursuant to requirements of Title XVIII of the United States 
Social Security Act; and 
    (d) A copy of all changes to articles of incorporation or 
bylaws. 
    Subd. 2.  If more than one licensed hospital or outpatient 
surgical center is operated by the reporting organization, the 
commissioner of health may require that the information be 
reported separately for each hospital and each outpatient 
surgical center. 
    Subd. 3.  The commissioner of health may require 
attestation by responsible officials of the hospital or 
outpatient surgical center that the contents of the reports are 
true. 
    Subd. 4.  All reports, except privileged medical 
information, filed pursuant to this section, section 144.701 or 
section 144.702, subdivision 3 or 4 shall be open to public 
inspection. 
    Subd. 5.  The commissioner of health shall have the right 
to inspect hospital and outpatient surgical center books, 
audits, and records as reasonably necessary to verify hospital 
and outpatient surgical center reports. 
    Sec. 6.  Minnesota Statutes 1982, section 144.699, is 
amended to read: 
    144.699 [CONTINUING ANALYSIS.] 
    Subdivision 1.  [ACUTE CARE COSTS.] The commissioner of 
health may: 
    (a) Undertake analyses and studies relating to hospital 
acute care costs and to the financial status of any hospital or 
outpatient surgical center subject to the provisions of sections 
144.695 to 144.703; and 
    (b) Publish and disseminate the information relating to 
hospital acute care costs. 
    Subd. 2.  [FOSTERING PRICE COMPETITION.] The commissioner 
of health shall:  
    (a) Encourage hospitals, outpatient surgical centers, and 
professionals regulated by the health related licensing boards 
as defined in section 214.01, subdivision 2, and by the 
commissioner of health under section 214.13, to publish prices 
for procedures and services that are representative of the 
diagnoses and conditions for which citizens of this state seek 
treatment.  
    (b) Analyze and disseminate available price information and 
analyses so as to foster the development of price competition 
among hospitals, outpatient surgical centers, and health 
professionals.  
    Subd. 3.  [COOPERATION WITH ATTORNEY GENERAL.] Upon request 
of the attorney general, the commissioner of health shall make 
available to the attorney general all requested information 
provided under sections 144.695 to 144.703 in order to assist 
the attorney general in discharging the responsibilities of 
section 8.31.  
    Subd. 4.  The commissioner of health shall prepare and file 
summaries and compilations or other supplementary reports based 
on the information filed with or made available to the 
commissioner of health, which reports will advance the purposes 
of sections 144.695 to 144.703.  
    Sec. 7.  Minnesota Statutes 1982, section 144.701, is 
amended to read: 
    144.701 [INVESTIGATIVE POWER RATE DISCLOSURE.] 
    Subdivision 1.  The commissioner of health may initiate 
reviews or investigations as necessary to assure all purchasers 
of hospital health care services that the total costs of a 
hospital are reasonably related to the total services offered, 
that the hospital's aggregate revenues as expressed by rates are 
reasonably related to the hospital's aggregate costs, and that 
rates are set equitably.  The commissioner of health shall 
prohibit hospitals from discriminating among insurers in its 
rates.  
    Subd. 2.  In order to properly discharge these obligations, 
the commissioner of health may review projected annual revenues 
and expenses of hospitals and comment on them.  
    Subd. 3.  In the interest of promoting the most efficient 
and effective use of hospitals, the commissioner of health may 
promote experimental alternative methods of budgeting, cost 
control, rate determination and payment shall ensure that the 
total costs, total revenues, and total services of each hospital 
and each outpatient surgical center are reported to the public 
in a form understandable to consumers.  
    Subd. 4 2.  The commissioner of health shall begin to 
compile relevant financial and accounting data concerning 
hospitals and outpatient surgical centers in order to have 
statistical information available for legislative policy making. 
    Subd. 5 3.  The commissioner of health shall obtain from 
each hospital and outpatient surgical center a current rate 
schedule.  Any subsequent amendments or modifications of that 
schedule shall be filed with the commissioner of health at least 
60 days in advance of their effective date.  The commissioner of 
health may, by rule, exempt from this requirement rate increases 
which have a minimal impact on hospital costs.  If the hospital 
has not agreed to submit to a voluntary rate review in 
accordance with section 144.702, the commissioner of health may 
hold a public hearing pursuant to chapter 14, on any increase 
which he determines is excessive and may publicly comment on any 
increase.  
    Subd. 6 4.  Each report which is required to be submitted 
to the commissioner of health pursuant to subdivision 5 under 
sections 144.695 to 144.703 and which is not submitted to be 
reviewed by a voluntary, nonprofit rate review reporting 
organization in accordance with section 144.702 shall be 
accompanied by a filing fee in an amount prescribed by rule of 
the commissioner of health.  Filing fees shall be set at a level 
sufficient to cover the costs of any reviews undertaken pursuant 
to subdivision 5, and may take into consideration the length or 
complexity of the report being filed.  Fees received pursuant to 
this subdivision shall be deposited in the general fund of the 
state treasury. 
    Sec. 8.  Minnesota Statutes 1982, section 144.702, is 
amended to read: 
    144.702 [VOLUNTARY REPORTING AND RATE REVIEW OF HOSPITAL 
AND OUTPATIENT SURGICAL CENTER COSTS.] 
    Subdivision 1.  A hospital or outpatient surgical center 
may agree to submit its financial reports to, and be subject to 
a review of its rates by, a voluntary, nonprofit rate review 
reporting organization whose reporting and review procedures 
have been approved by the commissioner of health in accordance 
with this section. 
    Subd. 2.  The commissioner of health may approve voluntary 
reporting and rate review procedures which are substantially 
equivalent to reporting requirements and rate review procedures 
adopted by the commissioner of health for reporting and rate 
reviews conducted pursuant to procedures under sections 144.698 
and 144.701 144.695 to 144.703.  The commissioner of health 
shall, by rule, prescribe standards for approval of voluntary 
rate review reporting procedures, which standards shall provide 
for: 
    (a) The filing of appropriate financial information with 
the rate review reporting organization; 
    (b) Adequate analysis and verification of that financial 
information; and 
    (c) Timely publication of the review organization's 
findings and comments costs, revenues, and rates of individual 
hospitals and outpatient surgical centers prior to the effective 
date of any proposed rate increase.  The commissioner of health 
shall annually review the procedures approved pursuant to this 
subdivision. 
    Subd. 3.  Any voluntary, nonprofit rate review reporting 
organization which conducts a review of the collects information 
on costs, revenues, and rates of a hospital or outpatient 
surgical center located in this state shall file a copy of its 
findings and comments the information received for each hospital 
and outpatient surgical center with the commissioner of health 
within 30 days of completion of the review information 
collection process, together with a summary of the financial 
information acquired by the organization during the course of 
its review. 
    Subd. 4.  Any voluntary, nonprofit rate review reporting 
organization which receives the financial information required 
in section 144.698 by sections 144.695 to 144.703 shall make the 
information and all summaries and analyses of the information 
available to the commissioner of health in accordance with 
procedures prescribed by the commissioner of health. 
    Subd. 5.  If the reporting and rate review procedures of a 
voluntary, nonprofit rate review reporting organization have 
been approved by the commissioner of health those reporting and 
rate reviewing activities of the organization shall be exempt 
from the provisions of sections 325D.49 to 325D.66. 
    Subd. 6.  For the purposes of this section "rate review 
reporting organization" means an association or other 
organization which has as one of its primary functions the peer 
review of hospital rates collection and dissemination of acute 
care cost information. 
    Sec. 9.  Minnesota Statutes 1982, section 144.703, is 
amended to read:  
    144.703 [ADDITIONAL POWERS.] 
    Subdivision 1.  In addition to the other powers granted to 
the commissioner of health and the commissioner of insurance by 
law, the commissioner of health and the commissioner of 
insurance may each: 
    (a) Adopt, amend, and repeal rules in accordance with 
chapter 14; 
    (b) Hold public hearings, conduct investigations, and 
administer oaths or affirmations in any hearing or investigation 
Adopt in rule a schedule of fines, ranging from $100 to $1,000, 
for failure of a hospital or an outpatient surgical center to 
submit, or to make a timely submission of, information called 
for by sections 144.695 to 144.703.  
    Subd. 2.  Any person aggrieved by a final determination of 
the commissioner of health or the commissioner of insurance as 
to any rule or determination under sections 144.695 to 144.703; 
or 62A.02, subdivision 3; or 62C.15, subdivision 2, shall be 
entitled to an administrative hearing and judicial review in 
accordance with the contested case provisions of chapter 14. 
    Sec. 10.  [REPORT.] 
    By January 15, 1985, the commissioner of health shall, in 
consultation with the state planning agency, conduct a study and 
prepare a report to the legislature describing recommendations 
for an integrated, comprehensive cost containment program for 
acute care health services.  At a minimum the commissioner shall 
consider:  
    (a) a proposal for a mechanism that would constrain 

expansion in the service capacity of the acute care health 
system by means of specific and quantifiable prospectively 
determined limits;  
    (b) a proposal for mechanisms that would prospectively 
control increases in charges for acute care health services;  
    (c) a proposal detailing appropriate competitive 
initiatives to achieve cost containment for acute care health 
services;  
    (d) a proposal that would ensure appropriate financial and 
geographic access to acute care health services; and 
    (e) any other related proposals and alternatives the 
commissioner deems prudent.  
    Sec. 11.  [SAVINGS CLAUSE.] 
    The following rules adopted by the commissioner of health 
under sections 144.695 to 144.703 are repealed.  
    (a) Rules prescribing standards for the investigation, 
analysis, and judging of the reasonableness of the use of 
finances in a hospital.  
    (b) Rules prescribing standards for allowable increase 
limits.  
    (c) Rules prescribing standards for acceptable increases in 
gross acute care charges.  
All other rules adopted by the commissioner under sections 
144.695 to 144.703 remain in effect.  
    Notwithstanding the time limitation prescribed in 7 MCAR S 
1.475 E.1., the experimental alternative reporting requirements 
contained in 7 MCAR S 1.475 shall be in effect until amended or 
repealed by the commissioner.  
    The rules not repealed by this section adopted under 
sections 144.695 to 144.703 apply to hospitals and outpatient 
surgical centers.  The commissioner may grant outpatient 
surgical centers a group variance from compliance with 
provisions of the rules if uniform alternative requirements 
substantially equivalent to those prescribed in the rules are 
reasonably necessary to achieve the purposes of sections 144.695 
to 144.703.  
    Promptly after enactment of sections 1 to 10, the 
commissioner shall publish in the State Register rules adopted 
under sections 144.695 to 144.703 that are not repealed by this 
section.  
    Sec. 12.  Minnesota Statutes 1982, section 246.50, 
subdivision 6, is amended to read: 
    Subd. 6.  "Relatives" means the spouse, and parents and, in 
the case of the mentally ill or chemically dependent, children 
of a patient, in that order of liability for cost of care. 
    Sec. 13.  [ACTIONS DISCONTINUED.] 
    The commissioner of public welfare shall discontinue all 
collection activities currently pending against persons who have 
been determined to be 
    (1) responsible relatives because they are children of 
current or former state hospital patients; and 
    (2) liable for relative contributions under sections 246.50 
to 246.55.  
    Sec. 14.  Minnesota Statutes 1982, section 256.045, 
subdivision 2, is amended to read: 
    Subd. 2.  [LOCAL WELFARE HEARINGS.] In counties in which 
the commissioner of public welfare has appointed a local welfare 
referee, any person applying for or, receiving, or having 
received public assistance granted by a local agency pursuant to 
Minnesota Statutes, Sections 256.72 to 256.87, Chapters 256B, 
256D, 261, the Federal Food Stamp Act or a program of social 
services whose application for assistance is denied, or not 
acted upon with reasonable promptness, or whose assistance is 
suspended, reduced, or terminated by a local agency, or claimed 
to have been incorrectly paid, or any patient or relative 
aggrieved by an order of the commissioner under section 252.27, 
may contest that action or decision before the local welfare 
referee by submitting a written request for a hearing to the 
local 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 shows good cause why the request 
was not submitted within the 30 day time limit.  The local 
welfare referee shall conduct a hearing on the matter and shall 
issue a ruling affirming, reversing, or modifying the action or 
decision of the local agency.  The ruling of the local welfare 
referee shall be binding upon the local agency and the aggrieved 
party unless appeal is taken in the manner provided by 
subdivision 3. 
    Sec. 15.  Minnesota Statutes 1983 Supplement, 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 or having 
received 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 claimed 
to have been incorrectly paid, 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, recipient, patient or relative shows good cause why 
the request was not submitted within the 30 day time limit.  A 
local agency, applicant, recipient, patient or relative or party 
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. 16.  Minnesota Statutes 1982, section 256.045, 
subdivision 4, is amended to read: 
    Subd. 4.  [CONDUCT OF HEARINGS.] All hearings held pursuant 
to subdivisions 2 or 3 shall be conducted according to the 
provisions of the federal Social Security Act and the 
regulations implemented in accordance with that act to enable 
this state to qualify for federal grants-in-aid, and according 
to the rules and written policies of the commissioner of public 
welfare.  The hearing shall not be held earlier than five days 
after filing of the required notice with the local or state 
agency.  The local welfare referee or state welfare referee 
shall notify all interested persons of the time, date and 
location of the hearing at least five days before the date of 
the hearing.  Interested persons may be represented by legal 
counsel or other spokesman of their choice at the hearing and 
may appear personally, testify and offer evidence, and examine 
and cross-examine witnesses.  The applicant or, recipient, or 
former recipient shall have the opportunity to examine the 
contents of his case file and all documents and records to be 
used by the local agency at the hearing at a reasonable time 
before the date of the hearing and during the hearing.  All 
evidence, except that privileged by law, commonly accepted by 
reasonable men in the conduct of their affairs as having 
probative value with respect to the issues shall be submitted at 
the hearing and such hearing shall not be "a contested case" 
within the meaning of section 14.02, subdivision 3. 
    Sec. 17.  Minnesota Statutes 1982, section 256.045, 
subdivision 5, is amended to read: 
    Subd. 5.  [ORDERS OF THE COMMISSIONER OF WELFARE.] The 
commissioner of public welfare may accept the recommended order 
of a state welfare referee and issue the order to the local 
agency and the applicant or, recipient, or former recipient.  If 
the commissioner refuses to accept the recommended order of the 
state welfare referee, he shall notify the local agency and the 
applicant or, recipient, or former recipient of that fact and 
shall state his reasons therefor and shall allow each party ten 
days' time to submit additional written argument on the matter.  
After the expiration of the ten day period, the commissioner 
shall issue an order on the matter to the local agency and the 
applicant or, recipient, or former recipient.  Any order of the 
commissioner issued in accordance with this subdivision shall be 
conclusive upon the parties unless appeal is taken in the manner 
provided by subdivision 7. 
    Sec. 18.  Minnesota Statutes 1982, section 256.045, 
subdivision 7, is amended to read: 
    Subd. 7.  [JUDICIAL REVIEW.] An applicant or recipient or 
local agency Any party who is aggrieved by an order of the 
commissioner of welfare may appeal the order to the district 
court of the county responsible for furnishing assistance by 
serving a written copy of a notice of appeal upon the 
commissioner and any adverse party of record within 30 days 
after the date the commissioner issued the order, and by filing 
the original notice and proof of service with the clerk of the 
district court.  Service may be made personally or by mail; 
service by mail is complete upon mailing; no filing fee shall be 
required by the clerk of court in appeals taken pursuant to this 
subdivision.  The commissioner may elect to become a party to 
the proceedings in the district court.  Any party may demand 
that the commissioner furnish all parties to the proceedings 
with a copy of his decision, and a transcript of any testimony, 
evidence, or other supporting papers from the hearing held 
before the state welfare referee, by serving a written demand 
upon the commissioner within 30 days after service of the notice 
of appeal. 
    Sec. 19.  Minnesota Statutes 1983 Supplement, 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 inpatient hospital to one 
treatment episode per calendar year per recipient if the 
hospital is being reimbursed on a per episode basis or to 30 
days per calendar year in a licensed hospital or certified 
nursing home to 30 days reimbursed under other methodologies 
unless need for extended care is certified by the attending 
physician and has received prior approval from the commissioner. 
    Sec. 20.  Minnesota Statutes 1983 Supplement, section 
256.969, subdivision 2, is amended to read: 
    Subd. 2.  [RATES FOR INPATIENT HOSPITALS.] Rates paid to 
inpatient hospitals shall be based on a rate per admission until 
the commissioner can begin to reimburse hospitals for services 
under the medical assistance and general assistance medical care 
programs based upon a diagnostic classification system 
appropriate to the service populations.  On July 1, 1984, the 
commissioner shall begin to utilize to the extent possible 
existing classification systems, including medicare.  The 
commissioner shall incorporate the grouping of hospitals with 
similar characteristics for uniform rates upon the development 
and implementation of the diagnostic classification system. 
Prior to implementation of the diagnostic classification system, 
the commissioner shall report the proposed grouping of hospitals 
to the senate health and human services committee and the house 
health and welfare committee.  Medical assistance and general 
assistance medical care reimbursement for treatment of mental 
illness shall be reimbursed based upon diagnosis classifications.
    Sec. 21.  Minnesota Statutes 1983 Supplement, section 
256.969, subdivision 6, is amended to read: 
    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.  
Notwithstanding section 14.53, temporary rule authority 
authorized by Laws 1983, chapter 312, Article 5, section 9, 
subdivision 6, shall extend to August 1, 1985.  
    Sec. 22.  Minnesota Statutes 1983 Supplement, 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, 
United States Code, title 42, sections 670 to 676 under 
Minnesota Statutes, section 259.40; or 
    (2) Who is a child eligible for or receiving foster care 
maintenance payments under Title IV-E of the Social Security 
Act, 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, the Minnesota supplemental aid program; or 
    (4) Who is a pregnant woman, as certified in writing by a 
physician or nurse midwife, and who (a) meets the other 
eligibility criteria of this section, and (b) would be 
categorically eligible for assistance under the aid to families 
with dependent children program if the child had been born and 
was living with the woman; or 
    (5) Who meets the categorical eligibility requirements of 
the supplemental security income program and the other 
eligibility requirements of this section; or 
    (5) (6) 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 who meets the other 
eligibility requirements of this section; or 
    (6) (7) 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) (8) 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) (9) 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) (10) 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 or recipient as his dwelling place primary place 
of residence, together with the contiguous 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.  The homestead 
shall continue to be excluded for persons residing in a 
long-term care facility if it is used as a primary residence by 
the spouse, minor child, or disabled child of any age; or the 
applicant/recipient is expected to return to the home as a 
principal residence within six calendar months of entry to the 
long-term care facility.  Certification of expected return to 
the homestead shall be documented in writing by the attending 
physician.  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) (11) Who individually does not own more than $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 $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) (12) 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 the 
income standards by family size used in the aid to families with 
dependent children program, 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 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) (13) 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) (14) 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. 23.  Minnesota Statutes 1982, section 256B.17, as 
amended by Laws 1983, chapter 312, article 5, sections 20, 21, 
22, 23, and 24, is amended to read: 
    256B.17 [TRANSFERS OF PROPERTY.] 
    Subdivision 1.  [TRANSFERS FOR LESS THAN MARKET VALUE.] In 
determining the resources of an individual and an eligible 
spouse, there shall be included any resource or interest therein 
which was given away or, sold, or disposed of for less than fair 
market value within the 24 months preceding application for 
medical assistance or during the period of eligibility.  
    Subd. 2.  [PRESUMPTION OF PURPOSE.] Any transaction 
described in subdivision 1 shall be presumed to have been for 
the purpose of establishing eligibility for benefits or 
assistance under this chapter unless the individual or eligible 
spouse furnishes convincing evidence to establish that the 
transaction was exclusively for another purpose.  
    Subd. 3.  [RESOURCE VALUE.] For purposes of subdivision 1, 
the value of the resource or interest shall be the fair market 
value at the time it was given away, sold, or given away 
disposed of, less the amount of compensation received.  
    Subd. 4.  [PERIOD OF INELIGIBILITY.] For any uncompensated 
transfer, the period of ineligibility shall be calculated by 
dividing the uncompensated 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 256B.06, subdivision 1.  The 
period of ineligibility may exceed 24 months, and a 
reapplication for benefits after 24 months from the date of the 
transfer shall not result in eligibility unless and until the 
period of ineligibility has expired.  
    Subd. 5.  [EXCLUSIONS FOR HOMESTEAD TRANSFERS EXCLUDED 
RESOURCES.] 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: Except for the limitations 
contained in subdivision 6, a resource which is transferred 
while otherwise excluded under sections 256B.06 and 256B.07 
shall not be considered an available resource for purposes of 
medical assistance eligibility.  This exception shall not apply 
to applicants for or recipients of general assistance medical 
care benefits under chapter 256D.  
    Subd. 6.  [PROHIBITED TRANSFERS OF EXCLUDED RESOURCES.] Any 
individual who is an inpatient in a skilled nursing facility or 
an intermediate care facility who, at any time during or after 
the 24-month period immediately prior to application for medical 
assistance, disposed of a homestead for less than fair market 
value shall be ineligible for medical assistance in accordance 
with subdivisions 1 to 4.  An individual shall not be ineligible 
for medical assistance if one of the following conditions 
applies to the homestead transfer:  
    (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 homestead 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 homestead 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. 
    Subd. 6 7.  [EXCEPTION FOR ASSET TRANSFERS.] 
Notwithstanding the provisions of subdivisions 1 to 5 6, 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.  
    Subd. 7 8.  [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.  
    Subd. 8.  [EFFECTIVE DATE.] Subdivisions 5, 6, and 7, and 
the changes in subdivision 4 made by Laws 1983, chapter 312, 
article 5, section 20 apply to transfers made on or after June 
10, 1983, regardless of the individual's status in relation to 
eligibility for medical assistance.  
    Sec. 24.  Minnesota Statutes 1982, section 256B.19, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DIVISION OF COST.] The cost of medical 
assistance paid by each county of financial responsibility shall 
be borne as follows:  Payments shall be made by the state to the 
county for that portion of medical assistance paid by the 
federal government and the state on or before the 20th day of 
each month for the succeeding month upon requisition from the 
county showing the amount required for the succeeding month.  
Ninety percent of the expense of assistance not paid by federal 
funds available for that purpose shall be paid by the state and 
ten percent shall be paid by the county of financial 
responsibility.  
    For counties where health maintenance organizations are 
under contract to the state to provide services to medical 
assistance recipients, the division of the nonfederal share of 
medical assistance expenses for payments made to health 
maintenance organizations in the form of prepaid capitation 
payments, this division of medical assistance expenses shall be 
95 percent by the state and five percent by the county of 
financial responsibility.  
    State contracts with health maintenance organizations shall 
assure medical assistance recipients of at least the 
comprehensive health maintenance services defined in section 
62D.02, subdivision 7.  The contracts shall require health 
maintenance organizations to provide information to the 
commissioner concerning the number of people receiving services, 
the number of encounters, the type of services received, 
evidence of an operational quality assurance program pursuant to 
section 62D.04 and information about utilization.  Persons who 
become eligible for medical assistance after July 1, 1982 and 
who choose to receive services from a health maintenance 
organization under contract to the state pursuant to this 
section shall be guaranteed six months medical assistance 
eligibility.  
    The commissioner of public welfare shall seek a waiver to 
charge a coinsurance fee to recipients of medical assistance who 
become eligible for medical assistance benefits and who choose 
not to receive the benefits of a health maintenance organization 
contracted for by the state pursuant to this section.  The 
coinsurance fee shall be limited to the maximum monthly charge 
allowed by 42 CFR, sections 447.50 to 447.59, as amended through 
December 31, 1981.  The local welfare agency may waive the 
coinsurance fee when it determines that the medical needs of the 
recipient would not be best served by enrollment in a health 
maintenance organization.  The coinsurance fee shall be charged 
only to recipients who become eligible for medical assistance 
after the commissioner has reported to the legislature regarding 
the proposed method of implementing this paragraph Persons who 
become eligible for medical assistance after July 1, 1984, who 
are not participating in any medicaid demonstration project as 
defined under sections 256B.70 and 256B.71, and who choose at 
the time of application for assistance to receive services from 
a health maintenance organization, shall be guaranteed six 
months of coverage by a state contracted health maintenance 
organization if the recipient remains in the health maintenance 
organization from the time of initial enrollment.  The continued 
eligibility guarantee shall not be granted when ineligibility 
for medical assistance is due to death, loss of state or county 
residency, failure to respond to the county's efforts to contact 
the recipient, failure to locate the recipient, or when the 
recipient is eligible for continued eligibility as defined in 
section 256B.062.  
    Sec. 25.  Minnesota Statutes 1982, section 256B.35, 
subdivision 1, is amended to read: 
    Subdivision 1.  Notwithstanding any law to the contrary, 
welfare allowances for clothing and personal needs for 
individuals receiving medical assistance while residing in any 
skilled nursing home or intermediate care facility, including 
recipients of supplemental security income, in this state shall 
not be less than $35 $40 per month from all sources.  
    Provided that this personal needs allowance may be paid as 
part of the Minnesota supplemental aid program, notwithstanding 
the provisions of section 256D.37, subdivision 2, and payments 
to the recipients from Minnesota supplemental aid funds may be 
made once each three months beginning in October, 1977 covering 
liabilities that accrued during the preceding three months. 
    Sec. 26.  [256D.43] [RECOVERIES OF SUPPLEMENTAL AID UNDER 
INTERIM ASSISTANCE AGREEMENTS.] 
    Any applicant, otherwise eligible for supplemental aid and 
possibly eligible for maintenance benefits from any other source 
shall (a) make application for those benefits within 30 days of 
the supplemental aid 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 supplemental aid is 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 supplemental aid paid during the time period to 
which the other maintenance benefits apply and shall not exceed 
the state standard applicable to that time period. Reimbursement 
may be sought directly from the other source of maintenance 
income but shall remain the primary obligation of the recipient 
in those instances where an interim assistance agreement has 
been executed.  The commissioner shall adopt rules, and may 
adopt temporary rules, in accordance with chapter 14, 
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 subdivision does not require 
repayment of per diem payments made to shelters for battered 
women pursuant to section 256D.05, subdivision 3.  
    Sec. 27.  [STATE ADMINISTRATIVE AIDS.] 
    Subdivision 1.  [SUSPENSION.] Notwithstanding Laws 1983, 
chapter 312, article 1, section 2, subdivision 3, the provisions 
of section 256D.22 are suspended until December 31, 1984.  
    Subd. 2.  [APPROPRIATIONS.] The sum of $2,000,000 is 
appropriated from the general fund to the commissioner of public 
welfare for purposes of section 256D.22.  
    Sec. 28.  Minnesota Statutes 1982, section 261.035, is 
amended to read: 
    When a person dies in any county, not leaving without 
apparent means to provide for his own burial and without 
relatives of sufficient ability to procure the burial, the 
county board shall first investigate to determine whether the 
person who has died has contracted for any prepaid burial 
arrangements.  If such arrangements have been made, the county 
shall authorize burial in accord with the written instructions 
of the deceased.  If it is determined that the person did not 
leave sufficient means to defray the necessary expenses of his 
burial, nor any relatives therein of sufficient ability to 
procure his burial, the county board shall cause a decent burial 
of his remains to be made at the expense of the county.  
    Sec. 29.  [518.147] [STATISTICAL REPORT FORM.] 
    On or before the time a final decree of dissolution or 
annulment of marriage is entered, the petitioner or the moving 
party, if other than the petitioner, shall complete and file 
with the clerk of court a statistical report form provided by 
the commissioner of health.  After entry of the final decree, 
the clerk shall forward the form to the commissioner of health 
pursuant to section 144.224.  The clerk of court shall not 
refuse entry of a decree on the basis that the statistical 
report form is incomplete.  Neither the statistical report form, 
nor information contained in the form, shall be admissible in 
evidence in this or any subsequent proceeding.  
    Sec. 30.  [CONTRIBUTION OF NONINSTITUTIONALIZED SPOUSE.] 
    The commissioner of public welfare shall adjust the 
schedule for determining the contribution required from the 
noninstitutionalized spouse of a resident or patient of a 
nursing home or hospital to reflect an increase of at least 50 
percent in the cost of living of the noninstitutionalized spouse 
and shall provide for subsequent periodic adjustments to reflect 
future increases using the RSD1 cost of living charge.  
    Sec. 31.  [CITIZEN REVIEW BOARD PILOT PROJECT.] 
    Subdivision 1.  [PURPOSE.] The purpose of a citizen review 
board pilot project is to determine (1) the need for and 
feasibility of establishing a statewide system of citizen review 
boards for children placed in substitute care for more than six 
months; (2) the optimal methods of achieving statewide 
compliance with the requirements of Public Law 96-272, Sections 
427 and 475; (3) a comparison of the citizen review board 
concept with local social service agency administrative review 
panels; (4) whether a citizen review facilitates the timely 
return of children to their birth parents, placement for 
adoption, or other permanency plans; and (5) whether the citizen 
review process provides benefits to children that are comparable 
to those provided by the juvenile court.  
    Subd. 2.  [PILOT PROJECT; ESTABLISHMENT.] The commissioner 
of public welfare, hereinafter the commissioner, shall establish 
a citizen review board pilot project in at least one judicial 
district to be determined by the commissioner.  The citizen 
review boards shall review one-half of the cases of children in 
substitute care for more than six months in each project 
district.  The other one-half will be reviewed under existing 
administrative review procedures.  
    Subd. 3.  [CITIZEN REVIEW BOARD.] There shall be one 
citizen review board for every 75 children eligible for review 
by a citizen board in each project area.  Each board shall 
consist of five members who are residents of the judicial 
district and have shown an interest in the welfare of children. 
Each board shall, to the extent feasible, represent the various 
socio-economic, racial, and ethnic groups of the district in 
which it serves.  At least one member shall be a foster parent. 
No more than one person may be employed by the department of 
public welfare, by a child welfare agency, or by the juvenile 
court.  Board members shall be appointed by the commissioner in 
consultation with the administrator of the local social services 
agency and the presiding judge of the juvenile court.  Board 
members shall be required to attend in-service training sessions 
sponsored by the commissioner.  Board members shall be appointed 
to serve a term that expires June 30, 1987.  Appointments to 
fill vacancies on the board shall be made in the same manner and 
subject to the same conditions as the initial appointments to 
the board.  Members shall continue to serve until a successor is 
appointed.  Members of the board shall not receive compensation 
but shall be reimbursed for expenses.  
    Subd. 4.  [REVIEW.] For purposes of determining what 
efforts have been made by the supervising agency or child caring 
institution to carry out the plan for permanent placement of 
each child subject to review under the project, citizen review 
boards shall, every six months from the date of the child's 
initial placement, review the cases of participating children 
who have resided in public or private foster care for a period 
of more than six months and who are under the jurisdiction of 
(1) the commissioner of corrections; (2) the designated social 
service agency; (3) the commissioner of public welfare pursuant 
to Minnesota Statutes, section 260.242; or (4) a child placing 
agency, a facility licensed pursuant to Minnesota Statutes, 
sections 245.781 to 245.812, a county home school, or a licensed 
group foster home.  All children in care who are subject to 
citizen board review shall be reviewed within a year and every 
six months thereafter until the project expires.  The review 
procedure established by this subdivision shall replace 
administrative reviews required by Minnesota Statutes, section 
257.071, subdivision 2, for children reviewed under the pilot 
project.  
    Subd. 5.  [RETURN OF CHILDREN TO PARENTS; ADOPTION.] 
Citizen review boards shall encourage and facilitate the timely 
return to their birth parents of foster children reviewed under 
this program or, where appropriate, shall encourage the 
appropriate agency to initiate procedures to make the child free 
for adoption and to exert maximum effort to place the child for 
adoption.  
    Subd. 6.  [RECOMMENDATIONS TO JUVENILE COURT AND THE LOCAL 
SOCIAL SERVICES AGENCY.] The citizen review board shall submit 
to the juvenile court and the local social services agency, 
within ten days following review of any placement, findings and 
recommendations regarding the efforts and progress made by the 
designated local social services agency to carry out the case 
placement plan established pursuant to Minnesota Statutes, 
section 257.071, together with any other recommendations 
regarding the child.  The findings and recommendations shall 
include the date of the next review; the signature of all 
persons attending the review; documentation of the procedural 
safeguards as required in Public Law 96-272, Section 475; and 
any comments the birth parents or the child wish to communicate 
to the agency or the court.  
    Subd. 7.  [UNNECESSARY CHANGES IN PLACEMENT.] Citizen 
review boards shall promote and encourage the department of 
public welfare and all agencies involved in placing children in 
foster care to maximize stability and family continuity for 
children in foster care by discouraging unnecessary changes in 
the placement of foster children.  
    Subd. 8.  [APPROPRIATENESS OF PLACEMENT.] Citizen review 
boards shall review foster care placements and family 
recruitment policies of agencies involved in placing children 
for adoption to ensure that the best interests of minority 
children are met by having due consideration given to their 
racial and ethnic heritage.  
    Subd. 9.  [INFORMATION ON RIGHTS.] Citizen review boards 
shall assist the local social services agencies in informing 
birth parents, foster parents, and other interested parties of 
their rights and responsibilities with respect to any child in 
foster care.  Birth parents, foster parents, the child, and 
other interested parties shall be allowed to participate in the 
review process.  
    Subd. 10.  [DEFICIENCY REPORTS.] Citizen review boards 
shall report to the department of public welfare, the local 
social services agency, and other adoptive or foster care 
agencies deficiencies in the agencies' efforts to secure 
permanent homes for children whose cases have been reviewed by 
the board.  
    Subd. 11.  [AGENCY COOPERATION; DATA PRIVACY REQUIREMENTS.] 
All public and private agencies and institutions that provide or 
arrange foster care services for children shall cooperate with 
the citizen review boards by furnishing information required for 
effective implementation of this section.  Information in the 
possession of a public agency or institution shall be provided 
pursuant to Minnesota Statutes, section 13.05, subdivision 9, 
and shall retain the same classification in the possession of a 
citizen review board as it had in the possession of the public 
agency or institution.  Information supplied by a private agency 
or institution that identifies an individual shall not be 
disclosed or disseminated by a citizen review board for any 
purpose except as required to implement this section.  
    Subd. 12.  [LIMITATIONS.] This section shall not be 
construed to limit or delay actions by agencies or institutions 
to arrange for adoptions, foster care, termination of parental 
rights, or other related matters on their own initiative; or to 
alter or restrict the duties and authority of those agencies and 
institutions in those matters.  
    Subd. 13.  [REVIEW; REPORT.] The commissioner shall monitor 
each pilot project.  The commissioner, the local social services 
agency, and the presiding judge of the juvenile court in each 
project area shall review the quality, efficiency, and 
effectiveness of the pilot project.  The commissioner shall 
evaluate the projects and report to the legislature by November 
15, 1986.  The report shall include:  (1) a comparison of the 
citizen review board process and the local social services 
agency administrative review panels; (2) the cost-effectiveness 
of the citizen review board; (3) the effect upon the numbers of 
children in substitute care for longer than six months; (4) the 
number of children served; (5) the extent of compliance with 
federal requirements; (6) the quality and efficiency of the 
citizen review board pilot projects; and (7) recommendations 
regarding establishment of citizen review boards statewide in 
order to maximize achievement of statewide compliance with 
requirements of Public Law 96-272, Sections 427 and 475.  
    Sec. 32.  [RULES OF THE DEPARTMENT.] 
    For purposes of the pilot projects the department of public 
welfare shall promulgate permanent rules necessary to implement 
section 1.  
    Sec. 33.  [REPEALER.] 
    Minnesota Statutes 1982, sections 144.7021, 144.704, and 
144.705 are repealed.  
    Sec. 34.  [APPROPRIATIONS.] 
    Subdivision 1.  There is appropriated to the commissioner 
of public welfare from the general fund for the purposes of 
sections 25 and 31, $776,000, for the fiscal year ending June 
30, 1985.  This appropriation is added to the appropriation for 
medical assistance in Laws 1983, chapter 312, article 1, section 
2, subdivisions 1 and 5.  
    Subd. 2.  There is appropriated from the general fund to 
the commissioner of health, $10,000 for the biennium ending June 
30, 1985, for the purpose of processing the data received 
pursuant to sections 1 and 30.  
    Sec. 35.  [EFFECTIVE DATE.] 
    Sections 14 to 22, 24, 28, and 31 are effective July 1, 
1984.  Section 23 is effective for all transfers which occur on 
or after the effective date of this act.  Sections 12 and 13 of 
this act are effective the day after final enactment and apply 
to all claims which have not yet been reduced to judgment. 
Section 25 is effective October 1, 1984. 
    Approved April 25, 1984