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Minnesota Session Laws - 1985, 1st Special Session

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

 

                         Laws of Minnesota 1985 

                          CHAPTER 9-S.F.No. 19 
           An act relating to the organization and operation of 
          state government; appropriating money for human 
          services, corrections, health, economic security, and 
          other purposes with certain conditions; amending 
          Minnesota Statutes 1984, sections 62E.06, subdivision 
          1; 129A.01; 129A.03; 129A.07, subdivision 1; 129A.08, 
          subdivision 5; 144.70; 145.912, subdivision 15; 
          145.917, subdivision 2; 145.917, subdivisions 3 and 4; 
          145.921; 145.922; 171.29, subdivision 2; 214.06, 
          subdivision 1; 241.01, subdivision 7; 241.71; 252.025, 
          subdivision 1; 252.28, subdivision 1; 254.05; 256.737; 
          256.82, subdivision 2; 256.87, subdivision 1; 256.871, 
          subdivision 4; 256.969, subdivisions 1, 2, and by 
          adding a subdivision; 256B.04, subdivision 14; 
          256B.062; 256B.092, subdivisions 1, 2, 7, 8, and by 
          adding subdivisions; 256B.19, subdivision 1; 256B.41, 
          by adding a subdivision; 256B.421, subdivision 1; 
          256B.48, by adding subdivisions; 256B.503; 256D.01, 
          subdivisions 1a and 1b; 256D.03, subdivisions 4 and 6; 
          256D.05, subdivision 1; 256D.09, subdivision 1, and by 
          adding a subdivision; 256D.111, subdivision 5; 
          256D.37, subdivisions 1 and 2; 256E.08, subdivision 1; 
          256E.12, subdivision 3; 260.311, subdivision 5; 260.38;
          268.672, subdivisions 6 and 11; 268.673, subdivision 
          2; 268.674, subdivision 1; 268.675; 268.676, 
          subdivisions 1 and 2; 268.677; 268.678, subdivision 2; 
          268.679, subdivision 1; 268.68; 268.685; 390.11, by 
          adding subdivisions; 393.07, subdivision 2; 401.01, 
          subdivision 1; 401.13; 517.08, subdivisions 1b and 1c; 
          611A.34, subdivision 1; and 624.713, subdivision 1; 
          Laws 1984, chapter 616, section 1; proposing coding 
          for new law in Minnesota Statutes, chapters 62A, 129A, 
          144, 145, 256B, 256D, and 256F; repealing Minnesota 
          Statutes 1984, sections 62D.25; 62D.26; 62D.28; 
          62D.29; 62E.17; 145.912, subdivisions 16, 17, and 18; 
          256.967; 256D.111, subdivisions 1, 2, 3, and 4; 
          259.405; and 268.686. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1
    Section 1.  [HUMAN SERVICES, CORRECTIONS, HEALTH; 
APPROPRIATIONS.] 
    The sums shown in the columns marked "APPROPRIATIONS" are 
appropriated from the general fund, or any other fund named, 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 "1986," and "1987," 
where used in this act, mean that the appropriation or 
appropriations listed under them are available for the year 
ending June 30, 1986, or June 30, 1987, respectively.  
                      SUMMARY BY FUND 
                     1986             1987             TOTAL   
General         $1,009,714,600   $1,043,308,000   $2,053,022,600
Special         $    2,337,400   $    2,365,100   $    4,702,500
Metropolitan
  Landfill      $      140,000   $      140,000   $      280,000
Trunk Highway   $      461,600   $      484,600   $      946,200
Total           $1,012,653,600   $1,046,297,700   $2,058,951,300
                                           APPROPRIATIONS
                                       Available for the Year
                                          Ending June 30,
                                          1986        1987
    Sec. 2.  COMMISSIONER OF HUMAN SERVICES 
    Subdivision 1.  Total 
Appropriation                       $844,674,300  $904,838,800
 The amounts that may be spent from this 
appropriation for each program and 
activity are more specifically 
described in the following subdivisions.
 Federal money received in excess of the 
estimates shown in the 1985 department 
of human services budget document 
reduces the state appropriation by the 
amount of the excess receipts, unless 
otherwise directed by the governor, 
after consulting with the legislative 
advisory commission.  
 Positions and administrative money may 
be transferred within the department of 
human services as the commissioner 
considers necessary, with the advance 
approval of the commissioner of finance.
 Estimates of federal money that will be 
earned by the various accounts of the 
department of human services and 
deposited in the general fund are 
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 that 
shown on the official worksheets, the 
commissioner of finance shall reduce 
the amount available from the direct 
appropriation a corresponding amount. 
The reductions must be noted in the 
budget document submitted to the 75th 
legislature in addition to an estimate 
of similar federal money anticipated 
for the 1987-1989 biennium. 
    Subd. 2.  Human Services 
Management                               1,484,000    1,486,000 
    Subd. 3.  Support Services          15,067,000   14,914,000 
 Federal money received during the 
biennium for a study of home equity 
conversion to finance long-term care 
insurance is appropriated to the 
commissioner of human services for 
purposes of the study.  
 $140,000 of this appropriation is 
available to the commissioner of human 
services to administer a study of 
reimbursement mechanisms for providers 
of services for mentally retarded 
people.  Federal money received during 
the biennium to administer the study is 
appropriated to the commissioner.  Any 
unencumbered balance remaining in the 
first year does not cancel but is 
available for the second year of the 
biennium. 
    Subd. 4.  Social Services           69,830,200   72,012,700 
 The commissioner may use money from 
available social service appropriations 
to pay appropriate administrative and 
training costs associated with child 
foster care programs to maximize 
federal reimbursement under title IV-E 
of the social security act, United 
State Code, title 42, sections 670 to 
676.  State money may be used for this 
purpose only if the money is replaced 
by other federal or state money so that 
there is no reduction or delay in 
payments for any of the programs 
involved.  Notwithstanding any other 
law, transfers must be disregarded when 
applying the formula for allocation of 
state social service money and must not 
cause a reduction in the total amount 
of money available to grantees. 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a) Community Social Services Subsidies 
  $51,222,100  $51,222,100 
 The payments for the community social 
services subsidy for each county must 
be made in the same proportion as 
payments for the first six months of 
calendar year 1985.  
(b) Aging, Blind, and Deaf Services 
 $  7,132,000  $ 7,134,500  
 Notwithstanding any law to the 
contrary, all money allocated to the 
retired senior volunteer program is 
available for all services offered 
through the program; no money is 
designated specifically for peer 
counseling. 
 Of this appropriation, $100,000 of the 
money appropriated each year for deaf 
services is for grants for specialized 
mental health services for deaf and 
multiply handicapped deaf persons at 
St. Paul-Ramsey Medical Center. 
 $200,000 of this appropriation is for 
the following purposes:  For fiscal 
year 1986, $25,000 is for a deaf and 
blind service planning position and 
$75,000 is to provide services to 
persons who are both deaf and blind.  
For fiscal year 1987, $100,000 is for 
services to persons who are both deaf 
and blind. 
(c) Social Services Support
  $11,476,100   $13,656,100
     Subd. 5.  Income Maintenance      559,817,500  620,280,600 
 Notwithstanding any other law, money 
appropriated for income maintenance 
programs must not be transferred for 
other purposes except as allowed in 
this subdivision, subdivision 1, or 
section 12. 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a) Aid to Families with Dependent 
Children, General Assistance, 
Minnesota Supplemental Assistance 
  $143,329,500   $152,961,000 
 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 is available by 
direction of the governor after 
consulting with the legislative 
advisory commission.  
 During the biennium ending June 30, 
1987, the commissioner of human 
services shall provide supplementary 
grants not to exceed $816,800 a year 
for aid to families with dependent 
children and 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; replacement of 
essential household furnishings and 
essential major appliances; and 
employment-related child care, 
transportation, and educational 
expenses.  Of this amount, $616,800 is 
for employment-related child care, 
transportation, and educational 
expenses. 
 Notwithstanding any law to the 
contrary, when federal money is 
available to match state money, the 
commissioner of human services may 
transfer to the special needs account 
of the aid to families with dependent 
children program any part of the 
appropriation for day care sliding fee 
services, Minnesota Statutes, section 
245.84, provided to persons or families 
who are receiving aid to families with 
dependent children payments.  Federal 
money received during the biennium for 
child care services under this rider is 
appropriated to the commissioner of 
human services for day care sliding fee 
services. 
 Notwithstanding Minnesota Statutes 
1984, sections 256D.06, subdivision 4, 
and 256D.44, or any other law to the 
contrary, counties are directed to 
maintain services for adult mentally 
ill persons in community residential 
facilities at the level required by 
licensure standards. 
 $35,000 of the first year's 
appropriation is for an aid to families 
with dependent children alternative 
health insurance project.  An amount 
equal to the savings in the aid to 
families with dependent children 
program that result from the project 
may be transferred from the aid to 
families with dependent children 
appropriation to the assistance 
payments policy activity to continue 
the project until June 30, 1987, after 
approval by the chair of the senate 
finance subcommittee of health and 
human services and the chair of the 
house human services division of 
appropriations.  The commissioner may 
use this money as a state match to 
obtain commitments of private money for 
alternative health insurance projects 
for the uninsured poor. 
 The commissioner shall increase aid to 
families with dependent children and 
general assistance grants by one 
percent on July 1, 1985, and one 
percent on July 1, 1986, unless federal 
statute or regulation requires 
otherwise. 
 For the biennium ending June 30, 1987, 
all taxes paid to the county treasurer 
on or after July 1, 1985, under 
Minnesota Statutes, sections 287.01 to 
287.12, must be credited to the county 
revenue fund.  
 On or before the tenth day of each 
month, the county treasurer shall 
determine the receipts from the 
mortgage registration tax and the deed 
transfer tax during the preceding 
month.  The treasurer shall report to 
the county welfare agency on or before 
the tenth day of each month 95 percent 
of the receipts attributable to the 
statutory rate in Minnesota Statutes, 
section 287.05.  That amount, in 
addition to 97 percent of the amount 
determined under Minnesota Statutes, 
section 287.29, must be shown as a 
deduction from the report filed with 
the department of human services as 
required by Minnesota Statutes, section 
256.82. 
 Notwithstanding Minnesota Statutes 
1984, section 14.35, or any other law 
to the contrary, Minnesota Rules, part 
9555.3415, Emergency, is in effect 
until February 1, 1986, unless it is 
superseded by a permanent rule prior to 
that date and shall govern Minnesota 
Statutes, section 256D.05, subdivision 
1, paragraph (a), clause (12).  
(b) Medical Assistance, General 
Assistance Medical Care and 
Preadmission Screening 
  $394,950,300 $445,589,900
 The cost of a nursing home preadmission 
screening may not exceed $140. 
 The commissioner of human services 
shall not adopt emergency rules to 
implement the provisions of Minnesota 
Statutes, section 256B.02, subdivision 
8, clause (11), related to the drug 
formulary. 
 Notwithstanding any law requiring 
deposit of receipts in the general 
fund, all receipts from collection 
efforts for the state hospitals and 
state nursing homes must 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. 
 If the appropriation for medical 
assistance and general assistance 
medical care is insufficient for either 
year, the appropriation for the other 
year is available by direction of the 
governor after consulting with the 
legislative advisory commission.  
 $200,000 in fiscal year 1986 and 
$150,000 in fiscal year 1987 are 
appropriated for four positions to 
staff the prepayment initiatives under 
medical assistance and general 
assistance medical care. 
 Notwithstanding any law to the 
contrary, home and community-based 
alternative services for the mentally 
retarded provided under the federal 
waiver plan must be limited to 1,000 
people.  
 To determine eligibility for medical 
assistance, the commissioner shall 
disregard, from July 1, 1985, to June 
30, 1987, 20 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, the commissioner shall 
disregard the increase for social 
security and supplemental security 
income recipients, as provided under 
Minnesota Statutes 1984, section 
256B.06, subdivision 1, paragraph (12). 
 For general assistance medical care 
services rendered on or after November 
1, 1985, general assistance medical 
care payments to medical care vendors 
must be at the 50th percentile of usual 
and customary fees based on medical 
assistance billings during calendar 
year 1982.  
 For medical assistance services 
rendered on or after November 1, 1985, 
medical assistance payments to medical 
care vendors 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 shall be 
limited to the 50th percentile of the 
usual and customary fees based upon 
billings during calendar year 1982.  
Rates paid to private duty nurses under 
the medical assistance program must be 
increased by 20 percent from the rates 
paid during fiscal year 1985.  
 On or after July 1, 1986, the 
commissioner shall phase out the 
rateable reductions in the general 
assistance medical care program to the 
extent possible using any net surplus 
projected to exist at the end of the 
biennium within the appropriations for 
medical assistance and general 
assistance medical care after any 
transfers necessary because of deficits 
in the aid to families with dependent 
children, general assistance, or 
Minnesota supplemental aid programs.  
 The maximum pharmacy dispensing fee 
shall be $4.30 under medical assistance 
and general assistance medical care. 
 Federal money received during the 
biennium for administration of the home 
and community-based services waiver for 
persons with mental retardation is 
appropriated to the commissioner of 
human services for administration of 
the home and community-based services 
program and must be deposited in that 
activity's account. 
 The county agencies shall not 
authorize, nor shall the commissioner 
provide medical assistance funding for, 
services in an intermediate care 
facility for the mentally retarded 
unless an individual assessment of 
service needs documents that:  (1) the 
person has mental retardation; (2) the 
person requires 24-hour supervision and 
active treatment for medical, 
behavioral, or habilitation needs; and 
(3) less restrictive or less costly 
services appropriate to the client's 
needs cannot be made available to meet 
the person's assessed service needs.  
 The commissioner may determine whether 
medical assistance funding should 
continue to be authorized for services 
to an individual in an intermediate 
care facility for the mentally 
retarded.  The determination must be 
based on the review of the individual 
service plan and on the findings of the 
Minnesota department of health quality 
assurance and review survey and other 
information that the commissioner may 
request.  
(c) Income Maintenance Support 
  $21,537,700  $21,729,700 
 For the child support enforcement 
activity, during the biennium ending 
June 30, 1987, money received from the 
counties for providing data processing 
services must be deposited in that 
activity's account.  The money is 
appropriated to the commissioner of 
human services 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 in Minnesota Rules, parts 
9515.1200 to 9515.2600 until the 
adoption of the rules required by 
Minnesota Statutes, section 256B.14, 
subdivision 2. 
 If the preceding rider or Laws 1983, 
chapter 312, article 1, section 2, 
subdivision 5, paragraph 13, result in 
an increase in a parent's 
responsibility for the cost of their 
child's out-of-home placement, the 
county must not require the increase in 
payment until 30 days after the parent 
is sent notice of the amount of the 
increase. 
 Subd. 6.  Mental Health              198,475,600  196,145,500
 Notwithstanding any other law to the 
contrary, there is no appropriation in 
the budget for the department of human 
services for the position of assistant 
commissioner with responsibilities for 
state institutions and reimbursements. 
 $25,000 of the appropriation in Laws 
1984, chapter 616, section 3, for the 
demonstration project for treatment of 
compulsive gamblers is available until 
June 30, 1987. 
 That part of the appropriation for the 
adult mental illness residential grants 
appropriation that is attributable to 
savings realized in the general 
assistance and Minnesota supplemental 
aid programs because of the limits on 
payments to negotiated rate facilities, 
must be used for facilities affected by 
the limits to assure continuation of 
appropriate care and services to 
residents.  
 Of this appropriation, $1,200,000 is 
new money for the chronic mental 
illness grant program.  In fiscal year 
1987, up to $400,000 may be used for a 
demonstration project and the remainder 
of the appropriation is for existing 
programs. 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows: 
(a) State Hospitals
    Approved Complement 
      June 30, 1986     June 30, 1987 
           5472              5175
(1) Salaries
  $143,601,600   $140,372,800
 No human services technician positions 
shall be converted to any other 
positions until the commissioner has 
prepared and submitted a plan for any 
conversions to the chairs of the health 
and human services subcommittee of 
senate finance and human services 
division of house appropriations for 
review and comment. 
 Within the limits of available 
appropriations, the commissioner may 
establish pilot projects to demonstrate 
the feasibility of state-operated, 
community-based services for state 
hospital residents. 
 If a state-operated intermediate care 
facility for the mentally retarded is 
decertified other than by the direct 
request of the commissioner, the 
commissioners of health and human 
services shall cooperate to secure 
immediate recertification of the 
facility.  In this case, the 
restrictions of Minnesota Statutes, 
section 252.291 do not apply. 
 Notwithstanding any law to the 
contrary, the commissioner shall 
allocate no money to programs that 
adjust the number of state hospital 
beds available to the mentally ill. 
 Notwithstanding Minnesota Statutes, 
section 246.57, for the biennium ending 
June 30, 1987, the commissioner of 
human services may authorize any state 
hospital or state operated nursing home 
to enter into new shared service 
agreements or renew agreements with 
both nonprofit and profit health 
service organizations and other 
governmental entities.  Consultation 
with the chairman of the senate finance 
committee and the chairman of the house 
appropriation committee is required for 
contracts in excess of $100,000 per 
fiscal year.  Positions funded by 
shared services agreements may be 
authorized by the commissioner of 
finance for the duration of shared 
services agreements.  Charges for the 
services shall be deposited in the 
general fund, except that the portion 
of the receipts equal in amount to 
expenditures incurred in rendering 
shared services are dedicated to the 
state hospital or nursing home that 
provided the service and are 
appropriated for that purpose. 
(2) Current Expense 
  $14,850,900  $15,088,400
(3) Repairs and Betterments
  $ 1,773,700  $ 1,875,100 
(4) Special Equipment
  $   680,100                
 Any unencumbered balances in special 
equipment and repairs and betterments 
remaining in the first year do not 
cancel but are available for the second 
year of the biennium.  
 Notwithstanding any law to the 
contrary, and provided that there is no 
conflict with any collective bargaining 
agreement, any state hospital or state 
nursing home position reduction shall 
only be accomplished through attrition, 
transfers, and retirements and shall 
not be accomplished through layoffs. 
 Notwithstanding any law to the 
contrary, any state hospital employee 
position identified as being vacant by 
the state hospital and the commissioner 
of human services may only be declared 
so after review of the chair of the 
house human services division of 
appropriations and the chair of the 
senate health and human services 
subcommittee of finance. 
 Review by the chair of the house human 
services division of appropriations and 
the chair of the senate health and 
human services subcommittee of finance 
must precede closure of any unit in any 
state hospital or state nursing home. 
(b) Nursing Homes
    Approved Complement - 616.5
(1) Salaries
  $15,792,500  $15,806,000
 This appropriation includes $263,800 
for each year of the biennium for the 
program for chronically chemically 
dependent people at Ah Gwah Ching state 
nursing home.  The commissioner of 
human services shall augment the 
program with federal money and any 
additional money provided through 
shared service agreements under 
Minnesota Statutes, 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 to the legislature 
by January 1 of each year on the amount 
deposited to the medical assistance 
account from the shared service 
agreements. 
(2) Current Expense 
  $ 2,155,100   $2,203,200 
(3) Repairs and Betterments
  $   219,800   $  232,300   
(4) Special Equipment
  $    73,900                 
(c) Mental Health Support
  $19,328,000  $20,567,700
 This appropriation includes $50,000 for 
purposes of article 2, sections 14, 15, 
and 91 to be transferred to the 
commissioner of health to pay the St. 
Paul Ramsey medical center for up to 
100 autopsies at a cost not to exceed 
$500 per autopsy and transportation to 
the medical center.  St. Paul Ramsey 
medical center is responsible for 
reimbursing physicians and pathologists 
outside of the metropolitan area for 
their services and other expenses 
related to the removal, transportation, 
and storage of the decedent's brain. 
 This appropriation includes $100,000 to 
be transferred to the director of the 
state planning agency for site-specific 
analyses of the potential for refuse 
burning and cogeneration at two state 
facilities.  No later than October 15, 
1985, the director shall submit two 
proposed sites for these analyses to 
the chairs of the health and human 
services subcommittee of the senate 
finance committee and the human 
services division of the house 
appropriations committee for their 
review and comment.  If no responses 
are received by the director within ten 
days after submission, the chairs shall 
be deemed to have consented to the 
selection of the two sites.  In 
selecting specific sites, the director 
shall consider the opportunities for 
receipt of matching funds to perform 
the analyses.  Funds so received shall 
serve to reduce the appropriation made 
by this subdivision.  The specific site 
analyses must assess market, cost, and 
other relevant factors.  The analyses 
shall be completed no later than 
January 31, 1986, and copies shall be 
distributed to the governor and the 
chairs of the health and human services 
subcommittee of the senate finance 
committee and the human services 
division of the house appropriations 
committee.  
 Notwithstanding any law to the 
contrary, no reallocation of chemical 
dependency funds or reorganization of 
chemical dependency treatment units may 
occur without the review of the chairs 
of the health and human services 
subcommittee of the senate finance 
committee and the human services 
division of the house appropriations 
committee. 
 The commissioner of human services 
shall study methods for implementing a 
consolidated chemical dependency 
treatment fund which includes the 
county case management or gatekeeper 
role with respect to all 
publicly-funded chemical dependency 
treatment dollars and a competitive 
model for all providers of 
publicly-funded chemical dependency 
treatment services.  The commissioner 
shall make recommendations to the chair 
of the senate finance subcommittee of 
health and human services and the chair 
of the house human services division of 
appropriations by September 15, 1985.  
The department's study group shall 
include representatives from county 
agencies and state hospital employees. 
 If earnings under the various shared 
services agreements authorized are less 
than appropriated, the appropriation is 
reduced by the amount of the earnings 
deficiency.  If a shared service 
agreement is reduced or terminated, the 
approved complement relating to that 
shared service agreement must be 
reduced accordingly. 
    Sec. 3.  COMMISSIONER OF ECONOMIC
SECURITY  
    Subdivision 1.  Total 
Appropriation                          50,589,200   21,858,100 
 The amounts that may be spent from this 
appropriation for each program are more 
specifically described in the following 
subdivisions. 
    Subd. 2.  Jobs Program
  $27,000,000
Any unencumbered balance remaining in 
the first year for the Minnesota 
employment and economic 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. 
 Notwithstanding Laws 1984, chapter 654, 
article 5, section 2, clause (a), the 
appropriation for the jobs program for 
fiscal year 1985 may be encumbered 
after May 31, 1985, and is available 
until expended.  
    Subd. 3.  Employment Programs 
  $ 3,900,000   $2,350,500 
 The commissioner may spend 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 employment program for 
fiscal year 1986, $750,000 is 
immediately available.  If that amount 
is insufficient for the costs incurred, 
an additional amount may be transferred 
with the advance approval of the 
commissioner of finance.  Any 
unexpended balance of the immediately 
available money is available for the 
year in which it is appropriated.  
Contracts for the calendar year 1985 
program must be written for the entire 
period of the calendar year 1985 
program.  
 The amount transferred from the 
department of human services to the 
department of economic security out of 
appropriations for the biennium ending 
June 30, 1985, for WIN match may be 
transferred from grants to salaries to 
meet the ten percent match requirement 
by the federal government for fiscal 
year 1985. 
 Of the money appropriated for the 
summer youth employment program, 
$150,000 each year is for youth 
intervention programs.  These amounts 
are to be transferred to the 
commissioner of energy and economic 
development who shall administer the 
program. 
    Subd. 4.  Vocational Rehabilitation 
Services 
  $18,171,200  $17,989,400
 Any unexpended balance remaining in the 
first year does not cancel and is 
available for the second year. 
    Subd. 5.  Training and Community Services  
  $ 1,368,000  $ 1,368,200 
 Notwithstanding any law to the 
contrary, for the biennium ending June 
30, 1987, the commissioner of economic 
security shall transfer to the 
low-income home weatherization program 
five percent of money received under 
the low-income home energy assistance 
block grant in each year of the 
biennium and shall expend all of the 
transferred funds during the year of 
the transfer.  The commissioner shall 
also transfer to the low-income home 
weatherization program any money 
remaining from the low-income home 
energy assistance block grant at the 
end of each program year.  None of the 
transferred money may be used by the 
commissioner of economic security for 
administrative costs. 
 Notwithstanding any law to the 
contrary, the commissioner of economic 
security shall transfer to the 
community services block grant program 
no less than five percent of money 
received under the low-income home 
energy assistance block grant in each 
year of the biennium and shall expend 
all of the transferred money during the 
year of the transfer.  None of the 
transferred money may be used by the 
department of economic security for its 
administrative costs. 
 To the extent allowed by federal 
regulations, the commissioner of 
economic security shall ensure that the 
same income eligibility criteria apply 
to both the weatherization program and 
the energy assistance program. 
 When determining eligibility for the 
energy assistance program, the 
commissioner of economic security shall 
consider the total home energy needs 
related to heat during the heating 
season, of applicants for assistance. 
 Notwithstanding any other law to the 
contrary, no more than 1.11 percent of 
funds received under the total 
low-income home energy assistance 
program may be used by the department 
of economic security for its 
administrative costs. 
    Subd. 6.  Program and Management 
Support 
  $150,000       $150,000    
 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.  
    Sec. 4.  MINNESOTA JOB SKILLS 
PARTNERSHIP BOARD                          500,000       -0-   
    Sec. 5.  COMMISSIONER OF 
CORRECTIONS 
    Subdivision 1.  Total 
Appropriation                           85,550,600   89,032,400 
 The amounts that may be spent from the 
appropriation for each program and 
activity are more specifically 
described in the following subdivisions.
 Positions and administrative money may 
be transferred within the department of 
corrections as the commissioner 
considers necessary, upon the advance 
approval of the commissioner of finance.
    Subd. 2.  Management Services        3,260,300    3,374,300  
    Subd. 3.  Community Services        21,511,100   21,866,400 
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a) Support 
  $ 8,942,100  $9,132,600 
 Any unencumbered balance remaining in 
the county probation reimbursement 
account at the end of fiscal year 1986 
does not cancel but is available for 
the second year of the biennium.  Any 
surplus remaining in the account on 
June 30, 1987 shall revert to the 
general fund. 
 This appropriation includes $416,000 
the first year for grants under 
Minnesota Statutes, section 241.022 for 
innovative pilot programs.  Of this 
amount, $170,000 must be used for a 
grant to the Northwest Regional 
Corrections Center in Crookston, 
$170,000 for a grant to the Northeast 
Regional Corrections Center in Duluth, 
and $76,000 for a grant to the West 
Central Juvenile Center in Moorhead. 
 Of this appropriation, $20,000 for 
fiscal year 1986, and $20,000 for 
fiscal year 1987 are for nonadjudicated 
community corrections programs serving 
White Bear Lake.  These amounts are to 
be transferred to the commissioner of 
energy and economic development who 
shall disburse the money. 
 Notwithstanding the provisions of any 
law to the contrary, $250,000 in fiscal 
year 1986 and $250,000 in fiscal year 
1987 of the unencumbered balances 
remaining from fiscal year 1985 money 
in Wisconsin dedicated receipts are 
appropriated to fund battered women 
services. 
(b) Community Corrections Act 
  $12,569,000  $12,733,800
 Up to $500,000 of the unallotted 
community corrections act money shall 
be used to allow additional qualified 
counties to participate in the 
community corrections act subsidy 
program during the fiscal year ending 
June 30, 1987. 
 Any unencumbered balances for 
department of corrections services 
currently provided to any county not 
included in the community corrections 
act shall be transferred to the 
community corrections act appropriation 
when that county is included in the 
community corrections act.  A list of 
those counties scheduled to come under 
the community corrections act during 
the biennium ending June 30, 1987, 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. 
    Subd. 4.  Correctional
Institutions                            60,779,200   63,791,700 
(a) Salaries 
  $46,560,000  $47,557,700
(b) Current Expense 
  $ 9,319,300  $11,431,100
(c) Repairs and Betterments 
  $ 1,064,600  $   817,800  
(d) Special Equipment
  $   131,300  $   195,600  
 Any unencumbered balances in special 
equipment, repairs and betterments, and 
industry remaining in the first year do 
not cancel but are available for the 
second year of the biennium.  
 The commissioner of corrections may 
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 
correctional purposes.  Any 
unencumbered balances within 
correctional institutions in current 
expense and salaries remaining in the 
first year do not cancel but are 
available for the second year of the 
biennium if receipt projections in the 
first year show a deficit for the 
biennium. 
(e) Institution Support 
  $3,704,000   $3,789,500 
    Sec. 6.  SENTENCING GUIDELINES 
COMMISSION                                 188,100      189,100
    Sec. 7.  CORRECTIONS OMBUDSMAN         316,000      302,000
    Sec. 8.  COMMISSIONER OF HEALTH 
    Subdivision 1.  Total 
Appropriation                           28,498,000   27,712,200
 The amounts that may be spent from this 
appropriation for each program and 
activity are more specifically 
described in the following subdivisions.
 The amounts shown in the program totals 
have been reduced by $341,000 in fiscal 
year 1986 and $341,000 in fiscal year 
1987.  The commissioner may determine 
which activities will be reduced. 
 Positions and administrative money may 
be transferred within the department of 
health as the commissioner considers 
necessary, with the advance approval of 
the commissioner of finance. 
 The appropriation in Laws 1984, chapter 
654, article 5, section 4, paragraph 
(a), for an epidemiologic feasibility 
study is available until spent. 
    Subd. 2.  Preventive and Protective 
Health Services                          5,349,300    5,474,200 
 Of this appropriation, $140,000 each 
year is appropriated from the 
metropolitan landfill contingency fund 
for monitoring well water supplies in 
the metropolitan area. 
 Notwithstanding any other law, the 
commissioner of health shall charge a 
fee of at least $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 
Minnesota Statutes, 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 
Minnesota Statutes, chapter 14.  
    Subd. 3.  Health Delivery 
Systems                                20,921,600   20,049,500 
 Of this appropriation, $461,600 the 
first year and $484,600 the second year 
are appropriated from the trunk highway 
fund for emergency medical services 
activities. 
 Of this appropriation, $1,500,000 is 
for the Minnesota emergency medical 
services system support act, to be 
available until June 30, 1987.  Of this 
amount, $200,000 is for the rural 
emergency response training site for 
rural peace officers, firefighters, and 
medical personnel, at the north campus 
of Staples Technical Institute in 
Staples, Minnesota, to be available 
until June 30, 1986.  The commissioner 
of health shall cooperate with the 
commissioner of public safety in 
establishing the rural emergency 
response training site.  
 $11,743,300 for fiscal year 1986 and 
$12,309,700 for fiscal year 1987 are 
for the community health services 
subsidy. 
 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.  
 If the appropriation for community 
health services or services to children 
with handicaps is insufficient for 
either year, the appropriation for the 
other year is available by direction of 
the governor after consulting with the 
legislative advisory commission.  
 Appropriations from the general fund 
for services to children with handicaps 
for fiscal years 1985, 1986, and 1987 
are available until June 30, 1987. 
    Subd. 4.  Health Support Services     2,568,100    2,529,500
    Sec. 9.  HEALTH RELATED BOARDS  
    Subdivision 1.  Total for this 
section                                   2,337,400    2,365,100
 The appropriations in this section are 
from the special revenue fund. 
    Subd. 2.  Board of Chiropractic
Examiners                                    65,600       66,800
    Subd. 3.  Board of Dentistry            233,700      237,500
    Subd. 4.  Board of Medical
Examiners                                   557,900      564,100
    Subd. 5.  Board of Nursing              775,500      786,700
    Subd. 6.  Board of Examiners for
Nursing Home Administrators                 113,700      115,400
    Subd. 7.  Board of Optometry             44,000       45,000
    Subd. 8.  Board of Pharmacy             349,900      353,400
    Subd. 9.  Board of Podiatry               5,700        5,900
    Subd. 10.  Board of Psychology          123,000      120,400
    Subd. 11.  Board of Veterinary
Medicine                                     68,400       69,900
    Subd. 12.  REVENUE 
 The commissioner of finance shall not 
permit the allotment, encumbrance, or 
expenditure of money appropriated in 
this section in excess of the 
anticipated biennial revenues from fees 
collected by the boards.  Neither this 
provision nor Minnesota Statutes, 
section 214.06, applies to transfers 
from the general contingent account, if 
the amount transferred does not exceed 
the amount of surplus revenue 
accumulated by the transferee during 
the previous five years. 
    Sec. 10.  FEDERAL RECEIPTS 
 For the biennium ending June 30, 1987, 
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 human services 
must be accredited to and become a part 
of the appropriations provided for in 
section 2. 
    Sec. 11.  MASTER LEASE-PURCHASE 
RESTRICTION
 The appropriations contained in this 
act do not include any funds for 
purchase of goods or equipment under a 
master lease-purchase program except 
for those items with a total cost 
exceeding $100,000 and with a projected 
useful life of at least ten years. 
    Sec. 12.  PROVISIONS 
 For the biennium ending June 30, 1987, 
money appropriated to the commissioner 
of corrections and the commissioner of 
human services in this act for the 
purchase of provisions within the item 
"current expense" must be used solely 
for that purpose. Money provided and 
not used for purchase of provisions 
must be canceled into the fund from 
which appropriated, except that money 
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.  
 The allowance for food may be adjusted 
annually according to the United States 
department of labor, bureau of labor 
statistics publication, producer price 
index, with the approval of the 
commissioner of finance.  Adjustments 
for fiscal year 1986 and fiscal year 
1987 must be based on the June 1985, 
and June 1986, producer price index 
respectively, but the adjustment must 
be prorated if the wholesale food price 
index adjustment would require money in 
excess of this appropriation. 
    Sec. 13.  TRANSFERS OF MONEY 
    Subdivision 1.  Governor's Approval Required 
 For the biennium ending June 30, 1987, 
the commissioner of human services, the 
commissioner of corrections, the 
commissioner of economic security, and 
the commissioner of health shall not 
transfer 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 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 Unencumbered 
Appropriations
For the biennium ending June 30, 1987, 
the commissioners of human services, 
corrections, and health by direction of 
the governor after consulting with the 
legislative advisory commission may 
transfer unencumbered appropriation 
balances and positions among all 
programs.  
    Sec. 14.  APPROVED COMPLEMENT 
 For the biennium ending June 30, 1987, 
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 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.  Requests for increases in 
the approved complement must be 
forwarded to the appropriate committees 
on finance of the legislature at least 
30 days before the legislative advisory 
commission meeting. 

                               ARTICLE 2 
    Section 1.  [62A.26] [COVERAGE FOR PHENYLKETONURIA 
TREATMENT.] 
    Subdivision 1.  [SCOPE OF COVERAGE.] This section applies 
to all policies of accident and health insurance, health 
maintenance contracts regulated under chapter 62D, health 
benefit certificates offered through a fraternal beneficiary 
association regulated under chapter 64A, and group subscriber 
contracts offered by nonprofit health service plan corporations 
regulated under chapter 62C, but does not apply to policies 
designed primarily to provide coverage payable on a per diem, 
fixed indemnity or nonexpense incurred basis, or policies that 
provide only accident coverage.  
    Subd. 2.  [REQUIRED COVERAGE.] Every policy, plan, 
certificate, or contract referred to in subdivision 1 issued or 
renewed after August 1, 1985, must provide coverage for special 
dietary treatment for phenylketonuria when recommended by a 
physician. 
    Sec. 2.  Minnesota Statutes 1984, section 62E.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  [NUMBER THREE PLAN.] A plan of health 
coverage shall be certified as a number three qualified plan if 
it otherwise meets the requirements established by chapters 62A 
and 62C, and the other laws of this state, whether or not the 
policy is issued in Minnesota, and meets or exceeds the 
following minimum standards: 
    (a) The minimum benefits for a covered individual shall, 
subject to the other provisions of this subdivision, be equal to 
at least 80 percent of the cost of covered services in excess of 
an annual deductible which does not exceed $150 per person.  The 
coverage shall include a limitation of $3,000 per person on 
total annual out-of-pocket expenses for services covered under 
this subdivision.  The coverage shall be subject to a maximum 
lifetime benefit of not less than $250,000. 
    The $3,000 limitation on total annual out-of-pocket 
expenses and the $250,000 maximum lifetime benefit shall not be 
subject to change or substitution by use of an actuarially 
equivalent benefit. 
    (b) Covered expenses shall be the usual and customary 
charges for the following services and articles when prescribed 
by a physician: 
    (1) Hospital services; 
    (2) Professional services for the diagnosis or treatment of 
injuries, illnesses, or conditions, other than outpatient mental 
or dental, which are rendered by a physician or at his direction;
     (3) Drugs requiring a physician's prescription; 
     (4) Services of a nursing home for not more than 120 days 
in a year if the services would qualify as reimbursable services 
under medicare; 
     (5) Services of a home health agency if the services would 
qualify as reimbursable services under medicare; 
     (6) Use of radium or other radioactive materials; 
     (7) Oxygen; 
     (8) Anesthetics; 
     (9) Prostheses other than dental; 
     (10) Rental or purchase, as appropriate, of durable medical 
equipment other than eyeglasses and hearing aids; 
     (11) Diagnostic X-rays and laboratory tests; 
     (12) Oral surgery for partially or completely unerupted 
impacted teeth, a tooth root without the extraction of the 
entire tooth, or the gums and tissues of the mouth when not 
performed in connection with the extraction or repair of teeth; 
     (13) Services of a physical therapist; and 
     (14) Transportation provided by licensed ambulance service 
to the nearest facility qualified to treat the condition; or a 
reasonable mileage rate for transportation to a kidney dialysis 
center for treatment. 
     (c) Covered expenses for the services and articles 
specified in this subdivision do not include the following: 
     (1) Any charge for care for injury or disease either (i) 
arising out of an injury in the course of employment and subject 
to a workers' compensation or similar law, (ii) for which 
benefits are payable without regard to fault under coverage 
statutorily required to be contained in any motor vehicle, or 
other liability insurance policy or equivalent self-insurance, 
or (iii) for which benefits are payable under another policy of 
accident and health insurance, medicare or any other 
governmental program except as otherwise provided by law; 
     (2) Any charge for treatment for cosmetic purposes other 
than for reconstructive surgery when such service is incidental 
to or follows surgery resulting from injury, sickness or other 
diseases of the involved part or when such service is performed 
on a covered dependent child because of congenital disease or 
anomaly which has resulted in a functional defect as determined 
by the attending physician; 
     (3) Care which is primarily for custodial or domiciliary 
purposes which would not qualify as eligible services under 
medicare; 
     (4) Any charge for confinement in a private room to the 
extent it is in excess of the institution's charge for its most 
common semi-private room, unless a private room is prescribed as 
medically necessary by a physician, provided, however, that if 
the institution does not have semi-private rooms, its most 
common semi-private room charge shall be considered to be 90 
percent of its lowest private room charge; 
    (5) That part of any charge for services or articles 
rendered or prescribed by a physician, dentist, or other health 
care personnel which exceeds the prevailing charge in the 
locality where the service is provided; and 
    (6) Any charge for services or articles the provision of 
which is not within the scope of authorized practice of the 
institution or individual rendering the services or articles. 
    (d) The minimum benefits for a qualified plan shall 
include, in addition to those benefits specified in clauses (a) 
and (e), benefits for well baby care, effective July 1, 1980, 
subject to applicable deductibles, coinsurance provisions, and 
maximum lifetime benefit limitations. 
    (e) Effective July 1, 1979, the minimum benefits of a 
qualified plan shall include, in addition to those benefits 
specified in clause (a), a second opinion from a physician on 
all surgical procedures expected to cost a total of $500 or more 
in physician, laboratory and hospital fees, provided that the 
coverage need not include the repetition of any diagnostic tests.
    (f) Effective August 1, 1985, the minimum benefits of a 
qualified plan must include, in addition to the benefits 
specified in clauses (a), (d), and (e), coverage for special 
dietary treatment for phenylketonuria when recommended by a 
physician. 
    Sec. 3.  Minnesota Statutes 1984, section 129A.01, is 
amended to read:  
    129A.01 [DEFINITIONS.] 
     For the purposes of this chapter, the following terms shall 
have the meanings given them: 
     (a) "Department" means the department of economic security; 
     (b) "Commissioner" means the commissioner of economic 
security; 
     (c) "Vocational rehabilitation services" means those 
services and goods so defined in the federal Rehabilitation Act 
of 1973 and section 129A.03, clause (b); 
     (d) "Handicapped person" means a person who because of a 
substantial physical, mental or emotional disability or 
dysfunction requires special services in order to enjoy the 
benefits of society; 
     (e) "Long-term sheltered workshop" means a facility where 
any manufacture or handiwork is carried on and which is operated 
for the primary purpose of providing remunerative employment to 
those handicapped persons who, as a result of physical or mental 
disability, are unable to participate in competitive 
employment.  A long-term sheltered workshop shall supply such 
employment (1) as a step in the rehabilitation process for those 
who cannot be readily absorbed in the competitive labor market, 
or (2) during such time as employment opportunities for them in 
the competitive labor market do not exist; 
    (f) "Work activity program" means a program which utilizes 
manufacturing activities and other production work for the 
primary purpose of providing basic vocational skills development 
for the handicapped;  
    (g) "Sheltered employee" means a handicapped person working 
for pay while participating in a long-term sheltered workshop 
program.  
    (h) "Center for independent living" means a private 
nonprofit organization incorporated under Minnesota law and 
operated for the purpose of providing independent living 
services to persons with disabilities.  Boards of directors for 
the center for independent living are composed of community 
representatives.  Fifty-one percent of the board members must be 
individuals who are either severely disabled themselves or 
spouses or parents of severely disabled persons.  
    Sec. 4.  Minnesota Statutes 1984, 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:  
diagnostic and related services incidental to determination of 
eligibility for services to be provided, 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 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; 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; establishment, improvement, maintenance or extension of 
public and other nonprofit 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; these persons 
are entitled to free choice of vendor for any medical or dental 
services provided under this paragraph; 
     (c) Formulate plans of cooperation with the commissioner of 
labor and industry for providing services to workers covered 
under the workers' compensation act.  Those plans are effective 
only 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," 
Public Law 761, Section 221, and the act approved October 30, 
1972, known as the Social Security Amendments of 1972, Public 
Law 92-603, and subsequent amendments.  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 a class or classes of individuals in this state 
that is designated in the agreement at the state's request.  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 its direct costs with state and federal 
funds; 
     (f) Conduct research and demonstration projects; provide 
training and instruction, including 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 money and gifts 
available from governmental and private sources for the purpose 
of vocational rehabilitation.  Money received from workers' 
compensation carriers for vocational rehabilitation services to 
injured workers must be deposited in the general fund; 
    (h) Design all state plans of vocational rehabilitation 
services required as a condition to the receipt and disbursement 
of any 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 staff and arrange 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 that the commissioner by 
sections 129A.01 to 129A.09 is empowered to administer. 
    Sec. 5.  [129A.061] [REQUIREMENTS FOR CERTIFICATION.] 
    Subdivision 1.  [BENEFITS.] A long-term sheltered workshop 
must, as a condition for receiving program certification, 
provide employees in a long-term employment program the 
personnel benefits prescribed in rules adopted by the 
commissioner of the department of economic security. 
    Subd. 2.  [GRIEVANCE PROCEDURE.] A long-term sheltered 
workshop must, as a condition for receiving program 
certification, provide to employees in a long-term employment 
program a grievance procedure which has as its final step 
provisions for final and binding arbitration. 
    Sec. 6.  Minnesota Statutes 1984, section 129A.07, 
subdivision 1, is amended to read: 
    Subdivision 1.  Every city, town, county, nonprofit 
corporation, or combination thereof establishing a community 
long-term sheltered workshop or work activity program shall 
appoint a long-term sheltered workshop board of no fewer than 
nine members before becoming eligible for the assistance 
provided by sections 129A.06 to 129A.08. When any city, town, or 
county singly establishes such a workshop or work activity 
program, the board shall be appointed by the chief executive 
officer of the city or the chairman of the governing board of 
the county or town.  When any combination of cities, towns, 
counties or nonprofit corporations establishes a workshop or 
work activity program, the chief executive officers of the 
cities, nonprofit corporations and the chairmen of the governing 
bodies of the counties or towns shall appoint the board.  If a 
nonprofit corporation singly establishes a workshop or work 
activity program, the corporation shall appoint the board of 
directors. Membership on a board shall be representative of the 
community served and shall include a handicapped person.  
One-third to one-half of the board shall be representative of 
industry or business.  The remaining members should be 
representative of lay associations for the handicapped, labor, 
the general public, and education, welfare, medical, and health 
professions.  Nothing in sections 129A.06 to 129A.08 shall be 
construed to preclude the appointment of elected or appointed 
public officials or members of the board of directors of the 
sponsoring nonprofit corporation to the board, so long as 
representation described above is preserved.  If a county 
establishes a workshop or work activity program and manages the 
workshop with county employees, the governing board shall be the 
county board of commissioners and other provisions of this 
chapter pertaining to membership on the governing board do not 
apply. 
    Sec. 7.  Minnesota Statutes 1984, section 129A.08, 
subdivision 5, is amended to read: 
    Subd. 5.  [RULE AUTHORITY.] In addition to the powers 
already conferred on him by law, the commissioner shall 
promulgate rules on: 
    (a) state certification of all long-term sheltered 
workshops and work activity programs; 
    (b) eligibility of community long-term sheltered workshops 
and work activity programs to receive state grants; 
    (c) standards for qualification of personnel and quality of 
professional service and for in-service training and education 
leave programs for personnel; 
    (d) eligibility for service so that no person will be 
denied service on the basis of race, creed or color; 
    (e) regulatory fees for consultation services;  
    (f) standards and criteria by which handicapped persons are 
to be judged eligible for the services;  
    (g) evaluation criteria for long-term sheltered workshops; 
and 
    (h) program evaluation criteria for work activity programs 
in order to determine the extent to which these programs meet 
the goals and objectives established in state and federal law 
relating to work activity programs.  
    The rules on evaluation criteria for long-term sheltered 
workshops must be in effect by July 1, 1985 1986.  The rules 
must be used in making allocations for fiscal years beginning 
after June 30, 1986 1987.  
    Sec. 8.  [129A.10] [INDEPENDENT LIVING SERVICES.] 
    Subdivision 1.  [SERVICES OFFERED.] Independent living 
services are those services designed to materially improve 
opportunities for persons with disabilities to live and function 
more independently in their home, family, and community, and the 
services include:  
    (1) intake counseling to determine the individual's needs 
for services; 
    (2) referral and counseling services with respect to 
attendant care;  
    (3) counseling and advocacy with respect to legal and 
economic rights and benefits; 
    (4) independent living skills, training, and counseling;  
    (5) housing and transportation referral and assistance;  
    (6) surveys, directories, and other activities to identify 
appropriate housing and accessible transportation and other 
support services;  
    (7) peer counseling;  
    (8) education and training necessary to living in the 
community and participating in community affairs;  
    (9) individual and group social and recreational activities;
    (10) attendant care and training of personnel to provide 
the care; and 
    (11) other necessary services which are not inconsistent 
with sections 1 and 2. 
    Subd. 2.  [ADMINISTRATION.] This section shall be 
administered by the department of economic security through the 
division of vocational rehabilitation.  The department may 
employ staff as reasonably required to administer this section 
and may accept and receive funds from nonstate sources for the 
purpose of effectuating this section.  
    Subd. 3.  [CERTIFICATION.] No applicant center for 
independent living may receive funding under this section unless 
it has received certification from the division of vocational 
rehabilitation.  
    The division of vocational rehabilitation shall involve 
disabled consumers and other interested persons to consider 
performance evaluation criteria in order to formulate rules by 
which centers will be certified by July 1, 1986.  
    The division of vocational rehabilitation shall review the 
programs for centers of independent living receiving funds from 
this section to determine their adherence to standards adopted 
by rule and if the standards are substantially met, shall issue 
appropriate certifications.  
    Subd. 4.  [APPLICATION OF CENTERS FOR INDEPENDENT 
LIVING.] The division of vocational rehabilitation shall require 
centers for independent living to complete application forms, 
expenditure reports, and proposed plans and budgets.  These 
reports must be in the manner and on the form prescribed by the 
division.  When applying, the center for independent living 
shall agree to provide reports and records, and make available 
records for audit as may be required by the division of 
vocational rehabilitation. 
    The applicant center for independent living shall be 
notified in writing by the division concerning the approval of 
budgets and plans. 
    Sec. 9.  [144.126] [PHENYLKETONURIA TESTING PROGRAM.] 
    The commissioner shall provide on a statewide basis without 
charge to the recipient, treatment control tests for which 
approved laboratory procedures are available for phenylketonuria 
and other metabolic diseases causing mental retardation. 
    Sec. 10.  [144.128] [TREATMENT FOR POSITIVE DIAGNOSIS, 
REGISTRY OF CASES.] 
    The commissioner shall: 
    (1) make arrangements for the necessary treatment of 
diagnosed cases of phenylketonuria and other metabolic diseases 
when treatment is indicated and the family is uninsured and, 
because of a lack of available income, is unable to pay the cost 
of the treatment; 
    (2) maintain a registry of cases of phenylketonuria and 
other metabolic diseases for the purpose of follow-up services 
to prevent mental retardation; and 
    (3) adopt rules to carry out section 144.126 and this 
section. 
    Sec. 11.  Minnesota Statutes 1984, section 144.70, is 
amended to read:  
    144.70 [ANNUAL BIENNIAL REPORT.] 
    Subdivision 1.  [CONTENT.] The commissioner of health shall 
prepare and prior to each legislative session a report every two 
years concerning the status and operations of the health care 
markets in Minnesota.  The commissioner of health shall transmit 
the reports to the governor and to the members of the 
legislature an annual.  The first report of must be submitted on 
January 15, 1987, and succeeding reports on January 15 every two 
years.  Each report must contain information, analysis, and 
appropriate recommendations concerning the following issues 
associated with Minnesota health care markets:  
    (1) the overall status of the health care cost problem, 
including the costs faced by employers and individuals, and 
prospects for the problem's improving or getting worse; 
    (2) the status of competitive forces in the market for 
health services and the market for health plans, and the effect 
of the forces on the health care cost problem; 
    (3) the feasibility and cost-effectiveness of facilitating 
development of strengthened competitive forces through state 
initiatives; 
    (4) the feasibility of limiting health care costs by means 
other than competitive forces, including direct forms of 
government intervention such as price regulation; the 
commissioner of health may exclude this issue from the report if 
the report concludes that the overall status of the health care 
cost problem is improving, or that competitive forces are 
contributing significantly to health care cost containment; 
    (5) the overall status of access to adequate health 
services by citizens of Minnesota, the scope of financial and 
geographic barriers to access, the effect of competitive forces 
on access, and prospects for access improving or getting worse; 
    (6) the feasibility and cost-effectiveness of enhancing 
access to adequate health services by citizens of Minnesota 
through state initiatives; and 
    (7) the commissioner of health's operations and activities 
for the preceding fiscal year two years as they relate to the 
duties imposed on the commissioner of health by sections 144.695 
to 144.703.  This report shall include a compilation of all 
summaries and reports required by sections 144.695 to 144.703 
together with any findings and recommendations of the 
commissioner of health. 
    Subd. 2.  [INTERAGENCY COOPERATION.] In completing the 
report required by subdivision 1, in fulfilling the requirements 
of sections 144.695 to 144.703, and in undertaking other 
initiatives concerning health care costs, access, or quality, 
the commissioner of health shall cooperate with and consider 
potential benefits to other state agencies that have a role in 
the market for health services or the market for health plans.  
Other agencies include the department of employee relations, as 
administrator of the state employee health benefits program; the 
department of human services, as administrator of health 
services entitlement programs; the department of commerce, in 
its regulation of health plans; the department of labor and 
industry, in its regulation of health service costs under 
workers' compensation; and the state planning agency, in its 
planning for the state's health service needs.  
    Sec. 12.  [MANDATED BENEFITS COMMISSION.] 
    If the governor, during fiscal year 1986, establishes a 
special commission to study and make recommendations on the 
appropriate content of the mandated or minimum benefits to be 
required of health plans in Minnesota, representation on the 
commission must include: 
    (1) one member from the state planning agency, who shall 
chair the commission; 
    (2) two members from the senate of the state of Minnesota, 
one from the majority party and one from the minority party; 
    (3) two members from the house of representatives of the 
state of Minnesota, one from the majority party and one from the 
minority party; 
    (4) one member from the Minnesota department of commerce; 
    (5) one member from the Minnesota department of health; 
    (6) one member representing Minnesota counties; 
    (7) one member representing Minnesota employers; 
    (8) one member representing health insurance companies, one 
member representing health maintenance organizations, and one 
member representing nonprofit health service plans; 
    (9) two members representing the providers of health 
services; 
    (10) one member representing labor; and 
    (11) one member representing low income consumers. 
    Sec. 13.  [144.8093] [EMERGENCY MEDICAL SERVICES FUND.] 
    Subdivision 1.  [CITATION.] This section is the "Minnesota 
emergency medical services system support act."  
    Subd. 2.  [ESTABLISHMENT AND PURPOSE.] In order to develop, 
maintain, and improve regional emergency medical services 
systems, the department of health shall establish an emergency 
medical services system fund.  The fund shall be used for the 
general purposes of promoting systematic, cost effective 
delivery of emergency medical care throughout the state; 
identifying common local, regional, and state emergency medical 
system needs and providing assistance in addressing those needs; 
undertaking special projects of statewide significance that will 
enhance the provision of emergency medical care in Minnesota; 
providing for public education about emergency medical care; 
promoting the exchange of emergency medical care information; 
ensuring the ongoing coordination of regional emergency medical 
services systems; and establishing and maintaining training 
standards to ensure consistent quality of emergency medical 
services throughout the state.  
    Subd. 3.  [USE AND RESTRICTIONS.] Designated regional 
emergency medical services systems may use emergency medical 
services system funds to support local and regional emergency 
medical services as determined within the region, with 
particular emphasis given to supporting and improving emergency 
trauma and cardiac care and training.  No part of a region's 
share of the fund may be used to directly subsidize any life 
support transportation service operations or rescue service 
operations or to purchase any vehicles or parts of vehicles for 
a life support transportation service or a rescue service. 
    Subd. 4.  [DISTRIBUTION.] Money from the fund shall be 
distributed according to this subdivision.  Eighty percent of 
the fund shall be distributed annually on a contract for 
services basis with each of the eight regional emergency medical 
services systems designated by the commissioner of health.  The 
systems shall be governed by a body consisting of appointed 
representatives from each of the counties in that region and 
shall also include representatives from emergency medical 
services organizations.  The commissioner shall contract with a 
regional entity only if the contract proposal satisfactorily 
addresses proposed emergency medical services activities in the 
following areas:  personnel training, transportation 
coordination, public safety agency cooperation, communications 
systems maintenance and development, public involvement, health 
care facilities involvement, and system management.  If each of 
the regional emergency medical services systems submits a 
satisfactory contract proposal, then this part of the fund shall 
be distributed evenly among the regions.  If one or more of the 
regions does not contract for the full amount of its even share 
or if its proposal is unsatisfactory, then the commissioner may 
reallocate the unused funds to the remaining regions on a pro 
rata basis.  Six and two-thirds percent of the fund shall be 
used by the commissioner to support regionwide reporting systems 
and to provide other regional administration and technical 
assistance.  Thirteen and one-third percent shall be distributed 
by the commissioner as discretionary grants for special 
emergency medical services projects with potential statewide 
significance.  
    Sec. 14.  [145.131] [FINDINGS AND PURPOSE.] 
    The legislature finds that Alzheimer's and other dementia 
diseases occur in recipients of medical assistance.  The costs 
the state pays in terms of human suffering, lost productivity, 
and medical assistance expenditures are enormous.  The 
legislature also finds that research for the identification, 
cause, cure, and prevention of Alzheimer's and other dementia 
diseases requires autopsies and pathological studies of 
suspected victims.  Expenses for autopsies and pathological 
studies are not provided for recipients of medical assistance.  
    Sec. 15.  [145.132] [AUTHORIZED REMOVAL OF BRAIN.] 
    If the attending physician of a recipient of medical 
assistance is of the opinion that the deceased recipient was a 
victim of Alzheimer's disease, the physician or a designated 
pathologist may remove the brain of the decedent.  Before the 
physician removes the brain, the physician shall obtain the 
permission of the decedent's next of kin, the authorization of 
the county coroner or medical examiner, and the authorization of 
the appropriate department of the St. Paul Ramsey medical 
center.  The extracted brain shall be immediately transported to 
the St. Paul Ramsey medical center in a manner prescribed by the 
St. Paul Ramsey medical center.  
    Sec. 16.  Minnesota Statutes 1984, section 145.912, 
subdivision 15, is amended to read: 
    Subd. 15.  "Population" means the total resident population 
as enumerated during the most recent federal census or, the 
annual population estimate prepared by the commissioner of 
energy and economic development in cooperation with the bureau 
of the census shall be used in order to have the most current 
data available number of residents of the state or of any city 
or county as established by the last federal census, by a 
special census taken by the United States Bureau of the Census, 
by the state demographer pursuant to section 116K.04, 
subdivision 4, or an estimate of city population prepared by the 
metropolitan council, whichever is the most recent as to the 
stated date of count or estimate. 
    Sec. 17.  Minnesota Statutes 1984, section 145.917, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBILITY OF CITIES.] A city having a city 
health department organized under the provisions of this chapter 
and located in a county having a population of 300,000 or more 
persons, or two or more contiguous cities combined under the 
provisions of section 471.59, having an aggregate population of 
65,000 or more persons and located in a county having a 
population of 300,000 or more persons, shall be eligible for the 
community health services subsidy under the provisions of 
sections 145.911 to 145.922 if: 
    (a) There is a board of health organized under the 
provisions of section 145.913, subdivision 2; 
    (b) There is substantial compliance with the requirements 
established by the state commissioner of health under the 
provisions of section 145.918; 
    (c) There are local matching funds provided to support the 
community health services as provided in section 145.921; 
    (d) The plan developed under the provisions of section 
145.92 shall be consistent with the plan developed by the county 
and shall be approved by both the city council and the county 
board. 
    The city's proportionate share of the community health 
services subsidy shall be determined by calculating the 
proportion of local expenditures for community health services 
within the county that were expended by the city. In a county 
which has, or hereafter establishes, an operational human 
services board pursuant to section 145.913, subdivision 1, the 
subsidy payment shall be made to the human services board 
pursuant to section 402.02, subdivision 4.  The human services 
board shall assure that those cities which establish eligibility 
under this subdivision receive their proportional share of the 
subsidy by entering into a contract with the city under which 
the city shall provide community health services in return for 
their share of the subsidy. 
    Sec. 18.  Minnesota Statutes 1984, section 145.917, 
subdivision 3, is amended to read: 
    Subd. 3.  [ELIGIBILITY OF CITIES.] A city located within 
three or more counties and any contiguous political subdivision 
or subdivisions shall have the authority to combine, for the 
purposes of sections 145.911 to 145.922, under the provisions of 
section 471.59, and shall be eligible for a proportional share 
of the subsidy provided in section 145.921 for the counties 
under the following conditions: 
    (a) There shall be an aggregate population of 40,000 or 
more persons; 
    (b) There is a board of health organized under the 
provisions of section 145.913; 
    (c) There is substantial compliance with the requirements 
established by the state commissioner of health under the 
provisions of section 145.918; 
    (d) There are local matching funds provided to support the 
community health services as provided in section 145.921; 
    (e) The plan developed under the provisions of section 
145.92 shall be approved by the city council and the governing 
bodies of each of the political subdivisions and by the state 
commissioner of health. 
    The proportionate share of the subsidy for the city and any 
contiguous political subdivision combined with such city shall 
be determined by calculating the proportion of total county 
population that live in the city and the contiguous political 
subdivisions.  When all three counties within which the city is 
located have combined under the provisions of sections 145.911 
to 145.922, the subsidy payment shall be made to the 
multi-county board of health.  The multi-county board of health 
shall enter into a purchase of service contract to provide a 
proportional share of the subsidy to the city and any contiguous 
political subdivisions that establish eligibility under the 
provisions of this subdivision. 
    Sec. 19.  Minnesota Statutes 1984, section 145.917, 
subdivision 4, is amended to read: 
    Subd. 4.  [WITHDRAWAL.] Any participating county or city, 
may by resolution of its governing body, indicate its intention 
to withdraw from the subsidy program established by sections 
145.911 to 145.922 145.921. 
    (a) Notification shall be given to the state commissioner 
of health and to each county or city in any multi-county or 
multi-city combination, at least one year before the beginning 
of the fiscal year in which it takes effect. 
    (b) When two or more counties or cities have combined for 
the purposes of sections 145.911 to 145.921, the withdrawal 
provision shall not be applicable during the first two years 
following the adoption of the initial agreement to combine. 
    (c) The withdrawal of a county or city from a group of two 
or more counties or cities combined for the purposes of sections 
145.911 to 145.921 shall not affect the eligibility for the 
community health services subsidy of the remaining counties or 
cities for at least one year following the withdrawal. 
    (d) The amount of any additional annual payment for 
calendar year 1985 made pursuant to Laws 1976, section 11, 
subdivision 4, shall be subtracted from the subsidy for a county 
that, due to withdrawal from a multi-county combination, ceases 
to meet the terms and conditions under which that additional 
annual payment was made. 
    Sec. 20.  Minnesota Statutes 1984, section 145.921, is 
amended to read: 
    145.921 [COMMUNITY HEALTH SERVICES SUBSIDY.] 
    Subdivision 1.  [PAYMENT SUBSIDY FORMULA.] 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 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.  
    Subd. 2.  [FORMULA.] To determine the amount to be paid 
participating cities and counties, the state commissioner of 
health shall apply the following formula using the most current 
data available: 
    (a) All counties will be ranked in accordance with a 
formula involving three factors: 
    (1) Per capita income; 
    (2) Per capita taxable value; and 
    (3) Per capita local expenditure per 1,000 population for 
community health services. 
    (b) Each county is then ranked as follows: 
    (1) On the basis of per capita income the ranking is from 
the lowest to the highest; 
    (2) Per capita taxable value is ranked from lowest to 
highest; 
    (3) Per capita expenditure is ranked from highest to lowest.
    (c) The ranking given each county on each of the foregoing 
three factors is then totaled and the counties ranked in 
numerical order according to score. 
    (d) The total score for each county thus determined is then 
divided into a median total score.  The quotient thus obtained 
is then multiplied by $2.25 times the county population.  The 
resulting product is the amount of subsidy to which the county 
is eligible under this formula, provided that no city or county 
shall receive less than $1.75 or more than $2.75 per capita, 
provided that such computation shall not include additional 
subsidies granted pursuant to subdivisions 4 or 5 The 
commissioner of health shall distribute a subsidy for the 
operations of boards of health organized and operating under 
sections 145.911 to 145.92. 
    (a) Each city or county eligible for a subsidy under 
section 145.917 shall receive no less for any calendar year than 
the total community health services subsidy that was allocated 
for that city or county by the commissioner of health under this 
section for calendar year 1985. 
    (b) Additional money appropriated for the operations of 
local boards of health organized and operating under sections 
145.911 to 145.92 shall be distributed in proportion to 
population. 
    Subd. 3 2.  [LOCAL MATCH.] The amount of local matching 
funds required to receive the full subsidy shall be determined 
by multiplying the population by $4.50 and subtracting the 
community health services subsidy allocated under the provisions 
of this section.  Each board of health that receives a subsidy 
shall provide local matching money equal to that subsidy during 
the year for which the subsidy is made, subject to the following 
provisions: 
    (a) the local matching funds may include local tax levies, 
gifts, fees for services and revenues from contracts.; 
    (b) when the amount of local matching funds for a board of 
health is less than the amount specified, the state formula 
subsidy provided for that board of health under this section 
shall be reduced proportionally.; 
    (c) when a participating city or county board of health 
fails to expend the full amount of the subsidy to which it would 
be entitled in any one year under the provisions of sections 
145.911 to 145.922, the state commissioner of health may, at his 
discretion, retain the surplus, subject to disbursement in the 
following year to the city or county board of health in the 
following calendar year if it the board of health can 
demonstrate a need for and ability to expend the surplus for the 
purposes provided in section 145.918.; and 
    (d) a city organized under the provisions of sections 
145.911 to 145.922 that levies a tax for provision of community 
health services shall be exempted from any county levy for the 
same services to the extent of the levy imposed by the city. 
    Subd. 4.  [PAYMENT.] A city, county, or group of cities or 
counties with an aggregate population of 50,000 or more persons 
which meet the eligibility requirements of section 145.915 shall 
be entitled to an additional annual payment of $.25 per capita. 
    Each county that combines with another county or counties 
for the purposes of sections 145.911 to 145.921 shall be 
entitled to an additional annual payment of $5,000. 
    Subd. 5 3.  [PLANNING GRANTS PAYMENT.] The state 
commissioner of health may provide grants to any county or group 
of counties showing intent to come within the provisions of 
sections 145.911 to 145.921 for the purpose of planning for the 
development, implementation, and operation of community health 
services.  No single county shall receive more than $25,000 to 
conduct the planning.  The state commissioner of health shall 
specify the terms and conditions of grants. When a board of 
health meets the requirements prescribed in section 145.917, the 
state commissioner of health shall pay the amount of subsidy to 
the board of health or its designee according to applicable 
rules and regulations from the money appropriated for the 
purpose and according to the following: 
    (a) the commissioner of health shall make payments for 
community health services to each board of health or its 
designee in 12 installments a year; 
    (b) the commissioner shall ensure that the pertinent 
payment of the allotment for each month is made on the first 
working day after the end of each month of the calendar year, 
except for the last month of the calendar year; 
    (c) the commissioner shall ensure that each board of health 
or its designee 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; and 
   (d) the commissioner shall make payment to a human services 
board organized and operating under section 145.913, subdivision 
1, paragraph (a), or to its designee, as prescribed in section 
402.02, subdivision 4. 
    Sec. 21.  Minnesota Statutes 1984, section 145.922, is 
amended to read: 
    145.922 [SPECIAL GRANTS.] 
    Subdivision 1.  [PLANNING GRANTS.] The state commissioner 
of health may provide grants not to exceed $25,000 to any county 
for the purpose of planning to participate under sections 
145.911 to 145.921.  The commissioner of health shall specify 
the terms and conditions of grants. 
    Subd. 2.  [MIGRANT HEALTH GRANTS.] The state commissioner 
of health may make special grants to cities, counties, groups of 
cities or counties, or nonprofit corporations to establish, 
operate or subsidize clinic facilities and services, including 
mobile clinics, to furnish health services for migrant 
agricultural workers and their families in areas of the state in 
which significant numbers of migrant workers are located.  
Applicants shall submit for approval a plan and budget for the 
use of the funds in the form and detail specified by the state 
commissioner of health.  They shall maintain records, including 
records of expenditures to be audited, as the state commissioner 
of health specifies. 
    Subd. 2 3.  [INDIAN HEALTH GRANTS.] The state commissioner 
of health may make special grants to local boards of health to 
establish, operate, or subsidize clinic facilities and services 
to furnish health services for American Indians who have no 
established county of residence.  The community health services 
plan submitted by the local board of health must contain a 
proposal for the delivery of the services and documentation of 
input by affected segments of the community to the plan in order 
to qualify for a grant under this subdivision. 
    Sec. 22.  [PINE COUNTY COMMUNITY HEALTH SERVICES.] 
    Subdivision 1.  [REQUIREMENTS.] Notwithstanding the 
population requirement of section 145.917, subdivision 1, 
paragraph (a), Pine county is eligible for a subsidy under 
section 145.921, effective July 1, 1985, provided: 
    (1) the county meets all other requirements of sections 
145.913 and 145.917; 
    (2) the county meets the population requirement of section 
145.917, subdivision 1, paragraph (a), on or before January 1, 
1986; and 
    (3) sufficient funds are appropriated for this purpose.  
    Subd. 2.  [PAYMENT.] Payment of the subsidy authorized by 
this special law must begin on the last day of the month 
following the month in which the county complies with 
subdivision 1.  The subsidy for the period July 1, 1985, through 
December 31, 1985, must be provided in a single payment.  
Subsequent payments must be made as prescribed in section 
145.921.  
    Sec. 23.  Minnesota Statutes 1984, section 171.29, 
subdivision 2, is amended to read: 
    Subd. 2.  Any (a) A person whose drivers license has been 
revoked as provided in subdivision 1, except under section 
169.121 or 169.123, shall pay a $30 fee before his drivers 
license is reinstated. 
    (b) A person whose drivers license has been revoked as 
provided in subdivision 1 under section 169.121 or 169.123 shall 
pay a $100 $150 fee before his or her drivers license is 
reinstated; 75 50 percent of this fee shall be credited to the 
trunk highway fund and 25 50 percent shall be credited to the 
general fund a separate account to be known as the county 
probation reimbursement account.  Money in this account is 
appropriated to the commissioner of corrections for the costs 
that counties assume under Laws 1959, chapter 698, of providing 
probation and parole services to wards of the commissioner of 
corrections.  This money is provided in addition to any money 
which the counties currently receive under section 260.311, 
subdivision 5. 
    Sec. 24.  Minnesota Statutes 1984, section 214.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  Notwithstanding any law to the contrary, 
the commissioner of health as authorized by section 214.13, all 
health related licensing boards and all nonhealth related 
licensing boards shall by rule, with the approval of the 
commissioner of finance, adjust any fee which the commissioner 
of health or the board is empowered to assess a sufficient 
amount so that the total fees collected by each board will as 
closely as possible equal anticipated expenditures during the 
fiscal biennium, as provided in section 16A.128.  For members of 
an occupation registered after July 1, 1984 by the commissioner 
of health under the provisions of section 214.13, the fee 
established must include an amount necessary to recover, over a 
five year period, the commissioner's direct expenditures for 
adoption of the rules providing for registration of members of 
the occupation.  All fees received shall be deposited with in 
the state treasurer and treasury.  Fees received by health 
related licensing boards must be credited to the general special 
revenue fund.  
    Sec. 25.  Minnesota Statutes 1984, section 241.01, 
subdivision 7, is amended to read: 
    Subd. 7.  [USE OF FACILITIES BY OUTSIDE AGENCIES.] The 
commissioner of corrections may authorize and permit public or 
private social service, educational, or rehabilitation agencies 
or organizations, and their clients; or lawyers, insurance 
companies, or others; to use the facilities, staff, and other 
resources of correctional facilities under his control and may 
require the participating agencies or organizations to pay all 
or part of the costs thereof.  All sums of money received 
pursuant to the agreements herein authorized shall not cancel 
until the end of the fiscal year immediately following the 
fiscal year in which the funds were received. The funds are 
available for use by the commissioner during that period, and 
are hereby appropriated annually to the commissioner of 
corrections for the purposes of this subdivision. 
    Sec. 26.  Minnesota Statutes 1984, section 241.71, is 
amended to read: 
    241.71 [CREATION OF ADVISORY TASK FORCE.] 
    The commissioner of corrections may appoint an advisory 
task force on the woman offender in corrections.  The task force 
shall have no more than 20 members and shall reflect a statewide 
geographical representation.  The provisions of section 15.059, 
subdivision 6, shall govern the expiration, terms, expenses, and 
removal of members of the advisory task force.  Notwithstanding 
section 15.059, the advisory task force shall continue until it 
is terminated by the commissioner.  
    Sec. 27.  Minnesota Statutes 1984, section 252.025, 
subdivision 1, is amended to read: 
    Subdivision 1.  State hospitals for mentally retarded 
persons and persons having epilepsy shall be established and 
maintained at Faribault, Cambridge and Brainerd, and 
notwithstanding any provision to the contrary they shall be 
respectively known as the Faribault State Hospital, the 
Cambridge State Hospital, and the Brainerd State Hospital. Each 
of the foregoing state hospitals shall also be known by the name 
of regional center at the discretion of the commissioner of 
human services.  The terms "human services" or "treatment" may 
be included in the designation. 
    Sec. 28.  Minnesota Statutes 1984, section 252.28, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DETERMINATIONS; BIENNIAL 
REDETERMINATIONS.] In conjunction with the appropriate county 
boards, the commissioner of human services 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. 
    Sec. 29.  Minnesota Statutes 1984, section 254.05, is 
amended to read: 
    254.05 [DESIGNATION OF STATE HOSPITALS.] 
    The state hospital for the insane located at Anoka shall 
hereafter be known and designated as the Anoka state hospital; 
the state hospital for the insane located at Hastings shall 
hereafter be known and designated as the Hastings state 
hospital; the state hospital for the insane and the hospital 
farm for inebriates located at Willmar shall hereafter be known 
and designated as the Willmar state hospital; the state hospital 
for the insane located at Moose Lake shall hereafter be known 
and designated as the Moose Lake state hospital; the state 
hospital for the insane located at Fergus Falls shall hereafter 
be known and designated as the Fergus Falls state hospital; the 
state hospital for the insane located at Rochester shall 
hereafter be known and designated as the Rochester state 
hospital; and the state hospital for the insane located at St. 
Peter shall hereafter be known and designated as the St. Peter 
state hospital.  Each of the foregoing state hospitals shall 
also be known by the name of regional center at the discretion 
of the commissioner of human services.  The terms "human 
services" or "treatment" may be included in the designation. 
    Sec. 30.  Minnesota Statutes 1984, section 256.737, is 
amended to read: 
    256.737 [COMMUNITY WORK EXPERIENCE PROGRAM.] 
    In order that persons receiving aid under this chapter may 
be assisted in achieving self-sufficiency by enhancing their 
employability through meaningful work experience and training 
and the development of job search skills, the commissioner of 
human services may continue the pilot community work experience 
demonstration programs that were approved by January 1, 1984.  
No new pilot community work experience demonstration programs 
may be established.  The commissioner shall:  (a) assist 
counties in the design, implementation, and evaluation of these 
demonstration programs; (b) promulgate, in accordance with 
chapter 14, emergency rules necessary for the implementation of 
this section, except that the time restrictions of section 14.35 
shall not apply and the rules may be in effect until the 
termination of the demonstration programs; and (c) seek any 
federal waivers necessary for proper implementation of this 
section in accordance with federal law.  The commissioner shall 
prohibit use of participants in the programs to do work that was 
part or all of the duties or responsibilities of an authorized 
public employee position established as of January 1, 1983.  The 
exclusive bargaining representative shall be notified no less 
than 14 days in advance of any placement by the community work 
experience program.  Concurrence with respect to job duties of 
persons placed under the community work experience program shall 
be obtained from the appropriate exclusive bargaining 
representative.  The appropriate oversight committee shall be 
given monthly lists of all job placements under a community work 
experience program. 
    Projects shall end no later than June 30, 1985 1987, and a 
preliminary report shall be made to the legislature by February 
15, 1985 1987, on the feasibility of permanent implementation 
and on the cost effectiveness of each of the demonstration 
programs. 
    Sec. 31.  Minnesota Statutes 1984, section 256.82, 
subdivision 2, is amended to read: 
    Subd. 2.  [FOSTER CARE MAINTENANCE PAYMENTS.] 
Notwithstanding subdivision 1, for the purposes of foster care 
maintenance payments under Title IV-E of the federal Social 
Security Act, 42 U.S.C. Sections 670 to 676, during the biennium 
ending June 30, 1983 period beginning July 1, 1985, and ending 
December 31, 1985, the county paying the maintenance costs shall 
be reimbursed for the costs from those federal funds available 
for that purpose together with an amount of state funds equal to 
a percentage of the difference between the total cost and the 
federal funds made available for payment.  This percentage shall 
not exceed the percentage specified in subdivision 1 for the aid 
to families with dependent children program.  In the event that 
the state appropriation for this purpose is less than the state 
percentage set in subdivision 1, the reimbursement shall be 
rateably reduced to the county.  Beginning January 1, 1986, for 
the purpose of foster care maintenance payments under Title IV-E 
of the Social Security Act, United States Code, title 42, 
sections 670 to 676, the county paying the maintenance costs 
must be reimbursed for the costs from the federal money 
available for the purpose.  
    Sec. 32.  Minnesota Statutes 1984, section 256.87, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ACTIONS AGAINST PARENTS FOR ASSISTANCE 
FURNISHED.] At any time during the continuance of assistance to 
a child granted under sections 256.72 to 256.87 except as set 
forth below, A parent of a child is liable for the amount of 
assistance furnished during the two years immediately preceding 
the commencement of the action under sections 256.72 to 256.87 
to and for the benefit of the child, including any assistance 
furnished for the benefit of the caretaker of the child, which 
the parent is reasonably able has had the ability to pay.  
Provided, however, The parent's liability is limited to the 
amount of assistance furnished during the two years immediately 
preceding the commencement of the action, except that where 
child support has been previously ordered, the state or county 
agency providing the assistance, as assignee of the obligee, 
shall be entitled to judgments for child support payments 
accruing within ten years preceding the date of the commencement 
of the action to collect up to the full amount of assistance 
furnished.  The action may be ordered by the state agency or 
county agency and shall be brought in the name of the county by 
the county attorney of the county in which the assistance was 
granted, or by the state agency against the parent for the 
recovery of the amount of assistance granted, together with the 
costs and disbursements of the action. 
    Sec. 33.  Minnesota Statutes 1984, section 256.871, 
subdivision 4, is amended to read: 
    Subd. 4.  [EMERGENCY DEFINED.] An emergency is a situation 
or set of circumstances which endangers or threatens to endanger 
the health or safety of a child or his or her relative 
caretaker.  Examples of emergencies which create the need for 
such assistance include natural disasters such as floods, fires, 
or storms; civil disorders,; strikes,; illness,; accident 
,; death,; eviction from shelter,; migrant families in 
necessitous circumstances,; or other crises, as defined by the 
commissioner, in accordance with directives of the United States 
secretary of health, education, and welfare human services.  The 
commissioner shall limit, entirely or in part, emergency 
assistance payments for utilities and housing when eligible 
families do not demonstrate that they have made a good faith 
effort to meet those payments.  
    Sec. 34.  Minnesota Statutes 1984, section 256.969, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ANNUAL COST INDEX.] The commissioner of 
human services shall develop a prospective payment system for 
inpatient hospital service under the medical assistance and 
general assistance medical care programs.  Rates paid to 
established for licensed hospitals for rate years beginning 
during the fiscal biennium ending June 30, 1985 1987, 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.  
    Sec. 35.  Minnesota Statutes 1984, 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 may 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.  The commissioner may selectively contract with 
hospitals for services within the diagnostic classifications 
relating to mental illness and chemical dependency under 
competitive bidding when reasonable geographic access by 
recipients can be assured.  No physician shall be denied the 
privilege of treating a recipient required to utilize a hospital 
under contract with the commissioner, as long as the physician 
meets credentialing standards of the individual hospital. 
    Sec. 36.  Minnesota Statutes 1984, section 256.969, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [AUDIT ADJUSTMENTS TO INPATIENT HOSPITAL RATES.] 
Inpatient hospital rates established under subdivision 2 using 
1981 historical medicare cost-report data may be adjusted based 
on the findings of audits of hospital billings and patient 
records performed by the commissioner that identify billings for 
services that were not delivered or never ordered.  The audit 
findings may be based on a statistically valid sample of 
billings of the hospital.  After the audits are complete, the 
commissioner shall adjust rates paid in subsequent years to 
reflect the audit findings and recover payments in excess of the 
adjusted rates or reimburse hospitals when audit findings 
indicate that underpayments were made to the hospital. 
    Sec. 37.  Minnesota Statutes 1984, 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;  
    (3) Hearing aids and supplies; and 
    (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; and 
    (5) wheelchair transportation services. 
    Sec. 38.  Minnesota Statutes 1984, section 256B.062, is 
amended to read: 
    256B.062 [CONTINUED ELIGIBILITY.] 
    Subdivision 1.  Any family which was eligible for aid to 
families with dependent children in at least three of the six 
months immediately preceding the month in which the family 
became ineligible for aid to families with dependent children 
because of increased income from employment shall, while a 
member of the family is employed, remain eligible for medical 
assistance for four calendar months following the month in which 
the family would otherwise be determined to be ineligible due to 
the income and resources limitations of this chapter. 
    Subd. 2.  A family whose eligibility for aid to families 
with dependent children is terminated because of the loss of the 
$30, or the $30 and one-third earned income disregard is 
eligible for medical assistance for 12 calendar months following 
the month in which the family loses medical assistance 
eligibility as an aid to families with dependent children 
recipient.  
    Sec. 39.  [256B.0641] [RECOVERY OF OVERPAYMENTS.] 
    Subdivision 1.  Notwithstanding section 256B.72 or any law 
or rule to the contrary, when the commissioner or the federal 
government determines that an overpayment has been made by the 
state to any medical assistance vendor, the commissioner shall 
recover the overpayment as follows:  
    (1) if the federal share of the overpayment amount is due 
and owing to the federal government under federal law and 
regulations, the commissioner shall recover from the medical 
assistance vendor the federal share of the determined 
overpayment amount paid to that provider using the schedule of 
payments required by the federal government; and 
    (2) if the overpayment to a medical assistance vendor is 
due to a retroactive adjustment made because the medical 
assistance vendor's temporary payment rate was higher than the 
established desk audit payment rate or because of a department 
error in calculating a payment rate, the commissioner shall 
recover from the medical assistance vendor the total amount of 
the overpayment within 120 days after the date on which written 
notice of the adjustment is sent to the medical assistance 
vendor or according to a schedule of payments approved by the 
commissioner. 
    Sec. 40.  Minnesota Statutes 1984, section 256B.092, 
subdivision 1, is amended to read: 
    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, provide ongoing case 
management services at the level identified in the 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.  
    Sec. 41.  Minnesota Statutes 1984, section 256B.092, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [CASE MANAGEMENT SERVICES.] Case management 
services include diagnosis, an assessment of the individual's 
service needs, an individual service plan, an individual 
habilitation plan, and methods for providing, evaluating and 
monitoring the services identified in the plan. 
    Sec. 42.  Minnesota Statutes 1984, section 256B.092, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [INDIVIDUAL SERVICE AND HABILITATION PLANS.] The 
individual service and habilitation plans must 
    (1) include the results of the diagnosis and assessment, 
    (2) identify goals and objectives for the client, and 
    (3) identify specific services to be provided to the client.
    The individual habilitation plan shall carry out the goals 
and objectives of the individual service plan. 
    Sec. 43.  Minnesota Statutes 1984, section 256B.092, 
subdivision 2, is amended to read: 
    Subd. 2.  [MEDICAL ASSISTANCE.] To assure quality case 
management to those county clients who are eligible for medical 
assistance, the commissioner shall, upon request by the county 
board:  (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.  
    Sec. 44.  Minnesota Statutes 1984, section 256B.092, 
subdivision 7, is amended to read: 
    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 require the level of care provided by an intermediate 
care facility.  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.  For 
individuals determined to have overriding health care needs, a 
registered nurse must be designated as either the case manager 
or the qualified mental retardation professional.  The case 
manager shall consult with the client's physician, other health 
professionals or other persons as necessary to make this 
evaluation.  Other persons may be invited The case manager, with 
the concurrence of the client or the client's legal 
representative, may invite other persons 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.  
    Sec. 45.  Minnesota Statutes 1984, section 256B.092, 
subdivision 8, is amended to read: 
    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 assess 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) identify the cost implications of recommendations in 
(f), above; 
     (h) make recommendations to a court as may be needed to 
assist the court in making commitments of mentally retarded 
persons; and 
    (h) (i) inform clients that appeal may be made to the 
commissioner pursuant to section 256.045.  
    Sec. 46.  Minnesota Statutes 1984, 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 that participate in a medicaid 
demonstration project under sections 256B.69 and 256B.71, the 
division of the nonfederal share of medical assistance 
expenses for payments made to prepaid health plans or 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, 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 In counties where prepaid health plans are 
under contract to the commissioner to provide services to 
medical assistance recipients, the cost of court ordered 
treatment that does not include diagnostic evaluation, 
recommendation, or referral for treatment by the prepaid health 
plan is the responsibility of the county of financial 
responsibility.  
    Sec. 47.  Minnesota Statutes 1984, section 256B.41, is 
amended by adding a subdivision to read: 
    Subd. 3.  [PAYMENT RATES.] Payment rates paid to any 
nursing home receiving medical assistance payments must be those 
rates established pursuant to this chapter and rules adopted 
under it.  
    Sec. 48.  [256B.411] [COMPLIANCE WITH STATE STATUTES.] 
    Subdivision 1.  [FUNDING.] Subject to exceptions in section 
256B.25, subdivision 3, no nursing home may receive any state or 
local payment for providing care to a person eligible for 
medical assistance, except under the medical assistance program. 
    Subd. 2.  [REQUIREMENTS.] No medical assistance payments 
shall be made to any nursing home unless the nursing home is 
certified to participate in the medical assistance program under 
title XIX of the federal Social Security Act and has in effect a 
provider agreement with the commissioner meeting the 
requirements of state and federal statutes and rules.  No 
medical assistance payments shall be made to any nursing home 
unless the nursing home complies with all requirements of 
Minnesota Statutes including, but not limited to, chapter 256B 
and rules adopted under it that govern participation in the 
program.  This section applies whether the nursing home 
participates fully in the medical assistance program or is 
withdrawing from the medical assistance program.  No future 
payments may be made to any nursing home which has withdrawn or 
is withdrawing from the medical assistance program except as 
provided in section 50; provided, however, that payments may 
also be made under a court order entered on or before June 7, 
1985, unless the court order is reversed on appeal. 
    Sec. 49.  Minnesota Statutes 1984, section 256B.421, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SCOPE.] For the purposes of sections 
256B.41, 256B.411, 256B.421, 256B.431, 256B.47, 256B.48, 
256B.50, and 256B.502, the following terms and phrases shall 
have the meaning given to them. 
    Sec. 50.  Minnesota Statutes 1984, section 256B.48, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [TERMINATION.] If a nursing home terminates its 
participation in the medical assistance program, whether 
voluntarily or involuntarily, the commissioner may authorize the 
nursing home to receive continued medical assistance 
reimbursement only on a temporary basis until medical assistance 
residents can be relocated to nursing homes participating in the 
medical assistance program. 
    Sec. 51.  Minnesota Statutes 1984, section 256B.48, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [EXCEPTION.] Notwithstanding any agreement 
between a nursing home and the department of human services or 
the provisions of this section or section 256B.411, other than 
subdivision 1a of this section, the commissioner may authorize 
continued medical assistance payments to a nursing home which 
ceased intake of medical assistance recipients prior to July 1, 
1983, and which charges private paying residents rates that 
exceed those permitted by subdivision 1, paragraph (a), for (i) 
residents who resided in the nursing home before July 1, 1983, 
or (ii) residents for whom the commissioner or any predecessors 
of the commissioner granted a permanent individual waiver prior 
to October 1, 1983.  In the event that the state is determined 
by the federal government to be no longer eligible for the 
federal share of medical assistance payments made to a nursing 
home under this subdivision, the commissioner may cease medical 
assistance payments, under this subdivision, to that nursing 
home. 
    Sec. 52.  Minnesota Statutes 1984, section 256B.48, is 
amended by adding a subdivision to read: 
    Subd. 6.  [MEDICARE CERTIFICATION.] All nursing homes 
certified as skilled nursing facilities under the medical 
assistance program shall participate in medicare part A and part 
B unless, after submitting an application, medicare 
certification is denied by the federal health care financing 
administration.  Medicare review will be conducted at the time 
of the annual medical assistance review.  Charges for 
medicare-covered services provided to residents who are 
simultaneously eligible for medical assistance and medicare must 
be billed to medicare part A or part B prior to billing medical 
assistance.  Medical assistance may be billed only for charges 
not reimbursed by medicare.  
    Sec. 53.  Minnesota Statutes 1984, section 256B.503, is 
amended to read: 
    256B.503 [RULES.] 
    To implement Laws 1983, chapter 312, article 9, sections 1 
to 7, the commissioner shall promulgate emergency and permanent 
rules in accordance with sections 14.01 to 14.38.  Rules adopted 
to implement Laws 1983, chapter 312, article 9, section 5, must 
(a) be in accord with the provisions of Minnesota Statutes, 
chapter 256E, (b) set standards for case management which 
include, encourage and enable flexible administration, (c) 
require the county boards to develop individualized procedures 
governing case management activities, (d) consider criteria 
promulgated under section 256B.092, subdivision 3, and the 
federal waiver plan, (e) identify cost implications to the state 
and to county boards, and (f) require the screening teams to 
make recommendations to the county case manager for development 
of the individual service plan. 
    The commissioner shall adopt permanent rules to implement 
this section by July 1, 1986.  Emergency rules adopted under 
this section are effective until that date. 
    Sec. 54.  [256B.72] [RIGHT OF APPEAL.] 
    The commissioner shall not recover overpayments from 
medical assistance vendors if an administrative appeal or 
judicial action challenging the proposed recovery is pending. 
    Sec. 55.  Minnesota Statutes 1984, section 256D.01, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [STANDARDS.] A principal objective in providing 
general assistance 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 of assistance determines the total amount of the 
general assistance grant without separate standards for shelter, 
utilities, or other needs and. 
    For a recipient who is a member of a one-person assistance 
unit, the standard 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.  The standards of assistance for recipients who are 
members of an assistance unit composed of more than one person 
must be equal to the aid to families with dependent children 
standard of assistance for a family of similar size and 
composition. 
    The standards shall be lowered for recipients who share a 
residence with a responsible relative who also receives general 
assistance or who receives AFDC person who is a responsible 
relative of one or more members of the assistance unit if the 
responsible relative also receives general assistance or aid to 
families with dependent children.  The standards must also be 
lowered for recipients who share a residence with a responsible 
relative if the relative is not receiving general assistance or 
aid to families with dependent children because the relative has 
been sanctioned or disqualified.  If the responsible relative is 
receiving AFDC general assistance or aid to families with 
dependent children, or would be receiving them but for sanction 
or disqualification, then the amount payable standard applicable 
to the general assistance recipient recipient's assistance unit 
must not exceed equal the amount that would be attributable to 
him if he were included in the AFDC to the members of the 
assistance unit if the members were included as additional 
recipients in the responsible relative's general assistance or 
aid to families with dependent children grant.  When determining 
the amount attributable to members of an assistance unit that 
must receive a reduced standard, the amount attributed to adults 
must be the amount attributed to another child added to the 
responsible relative's assistance unit.  When an assistance unit 
is subject to a reduced standard, the reduced standard must not 
exceed the standard that applies to an assistance unit that does 
not share a residence with a responsible relative.  
    For recipients who are not exempt from registration with 
the department of economic security pursuant to section 
256D.111, subdivision 2, clauses (a), (f), (g), and (h), and, 
except recipients who are eligible under section 256D.05, 
subdivision 1, paragraph (a), clauses (1), (7), (8), (9), and 
(14), who share a residence with a responsible relative who is 
not eligible for receiving general assistance or aid to families 
with dependent children but who receives other income, the 
standards shall be lowered, subject to these limitations:  
    (a) The general assistance grant to the one-person 
assistance unit shall be in an amount such that total household 
income is equal to the AFDC aid to families with dependent 
children standard for a household of like size and composition, 
except that the grant shall not exceed that paid to a general 
assistance recipient living independently. 
    (b) Benefits received by a responsible relative under the 
supplemental security income program, the social security 
retirement program if the relative was receiving benefits under 
the social security disability program at the time he or she 
became eligible for the social security retirement program or if 
the relative is a person described in section 256D.05, 
subdivision 1, paragraph (a), clauses (1), (7), or (9), the 
social security disability program, a workers' compensation 
program, the Minnesota supplemental aid program, or on the basis 
of the relative's disability, must not be included in the 
household income calculation.  
    Sec. 56.  Minnesota Statutes 1984, section 256D.01, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [RULES.] The commissioner shall may adopt 
emergency rules and shall adopt permanent rules to set standards 
of assistance and methods of calculating payment to conform with 
subdivision 1a.  The minimum standards of assistance shall 
authorize the payment of rates negotiated by local agencies for 
recipients living in a room and board arrangement.  Except for 
payments made to a secure crisis shelter under section 256D.05, 
subdivision 3, monthly general assistance payments for rates 
negotiated by a local agency on behalf of recipients living in a 
room and board, boarding care, supervised living, or adult 
foster care arrangement must not exceed the limits established 
under the Minnesota supplemental aid program.  In order to 
maximize the use of federal funds, the commissioner shall 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 use of the emergency 
program under aid to families with dependent children as the 
primary financial resource when available.  The commissioner 
shall provide by rule for 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. 57.  Minnesota Statutes 1984, section 256D.03, 
subdivision 4, is amended to read: 
    Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
Reimbursement under the general assistance medical care program 
shall be limited to the following categories of service: 
inpatient hospital care, outpatient hospital care, services 
provided by medicare certified rehabilitation agencies, 
prescription drugs, equipment necessary to administer insulin 
and diagnostic supplies and equipment for diabetics to monitor 
blood sugar level, eyeglasses and eye examinations provided by a 
physician or optometrist, hearing aids, prosthetic devices, 
laboratory and x-ray services, physician's services, medical 
transportation, chiropractic services as covered under the 
medical assistance program, podiatric services, 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) In order to contain costs, the county board shall, with 
the approval of the commissioner of human services, shall select 
vendors of medical care who can provide the most economical care 
consistent with high medical standards and may shall where 
possible contract with organizations on a prepaid capitation 
basis to provide these services.  The commissioner 
shall encourage county boards to submit consider proposals by 
counties and vendors for demonstration projects prepaid health 
plans, competitive bidding programs, block grants, or other 
vendor payment mechanisms designed to provide services in an 
economical manner or to control utilization, with safeguards to 
ensure that necessary services are provided.  Before 
implementing prepaid programs in counties with a county operated 
or affiliated public teaching hospital or a hospital or clinic 
operated by the University of Minnesota, the commissioner shall 
consider the risks the prepaid program creates for the hospital 
and allow the county or hospital the opportunity to participate 
in the program in a manner that reflects the risk of adverse 
selection and the nature of the patients served by the hospital, 
provided the terms of participation in the program are 
competitive with the terms of other participants considering the 
nature of the population served.  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.  The rates payable under this section 
must be calculated according to section 256.966, subdivision 2. 
    (c) The commissioner of human services 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 1985, to June 30, 1984 
December 31, 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 45 30 percent; payments for 
all other inpatient hospital care may be reduced no more than 35 
20 percent.  Reductions below the payments allowable 
under section 256.967 general assistance medical care for the 
remaining general assistance medical care services allowable 
under this subdivision may be reduced no more than 25 ten 
percent. 
     For the period July 1, 1984 January 1, 1986 to June 30, 
1985 December 31, 1986, 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 20 
percent; payments for all other inpatient hospital care may be 
reduced no more than 20 15 percent.  Reductions below the 
payments allowable under section 256.967 general assistance 
medical care for the remaining general assistance medical care 
services allowable under this subdivision may be reduced no more 
than ten five percent. 
    For the period January 1, 1987 to June 30, 1987, 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 15 percent; payments for all other 
inpatient hospital care may be reduced no more than ten 
percent.  Reductions below the payments allowable under medical 
assistance for the remaining general assistance medical care 
services allowable under this subdivision may be reduced no more 
than five percent.  
    There shall be no copayment required of any recipient of 
benefits for any services provided under this subdivision.  A 
hospital receiving a reduced payment as a result of this section 
may apply the unpaid balance toward satisfaction of the 
hospital's bad debts. 
    (d) Any county may, from its own resources, provide medical 
5 payments for which state payments are not made. 
    Sec. 58.  Minnesota Statutes 1984, section 256D.03, 
subdivision 6, is amended 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.  In counties where prepaid health plans are 
under contract to the commissioner to provide services to 
general assistance medical care recipients, the cost of court 
ordered treatment that does not include diagnostic evaluation, 
recommendation, or referral for treatment by the prepaid health 
plan is the responsibility of the county of financial 
responsibility.  
    Sec. 59.  Minnesota Statutes 1984, section 256D.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [STANDARDS ELIGIBILITY.] (a) Each person or 
family whose income and resources are less than the standard of 
assistance established by the commissioner shall be eligible for 
and entitled to general assistance; provided that no individual 
shall be eligible for general assistance if the individual is 
eligible for any of the following federally aided assistance 
programs:  emergency assistance, aid to families with dependent 
children, or any successor to the above if the person or family 
is: 
    (1) 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;
    (2) 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; 
    (3) 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; 
    (4) a person who resides in a shelter facility described in 
section 256D.05, subdivision 3; 
    (5) 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; 
    (6) a person who is unable to secure suitable employment 
due to inability to communicate in the English language, 
provided that the person is not an illegal alien, and who, if 
assigned to a language skills program by the local agency, is 
participating in that program; 
    (7) a person not described in clause (1) or (3) 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; 
    (8) 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; 
    (9) a person who is unable to obtain or retain employment 
because advanced age significantly affects his or her ability to 
seek or engage in substantial work; 
    (10) a person completing a secondary education program; 
    (11) a family with one or more minor children; provided 
that, if all the children are six years of age or older, all the 
adult members of the family register for and cooperate in the 
work readiness program under section 256D.051; and provided 
further that, if one or more of the children are under the age 
of six and if the family contains more than one adult member, 
all the adult members except one adult member register for and 
cooperate in the work readiness program under section 256D.051.  
The adult members required to register for and cooperate with 
the work readiness program are not eligible for financial 
assistance under section 256D.051, except as provided in section 
256D.051, subdivision 6, and shall be included in the general 
assistance grant.  If an adult member fails to cooperate with 
requirements of section 256D.051, the local agency shall not 
take his needs into account in making the grant determination.  
The time limits of section 256D.051, subdivisions 4 and 5, do 
not apply to people eligible under this clause. 
    (12) a person who has substantial barriers to employment, 
including but not limited to factors relating to work or 
training history, as determined by the local agency in 
accordance with permanent or emergency rules adopted by the 
commissioner after consultation with the commissioner of 
economic security; 
    (13) a person who is certified by the commissioner of 
economic security before August 1, 1985, as lacking work skills 
or training or as being unable to obtain work skills or training 
necessary to secure employment, as defined in a permanent or 
emergency rule adopted by the commissioner of economic security 
in consultation with the commissioner; or 
    (14) a person who is determined by the local agency, in 
accordance with emergency and permanent rules adopted by the 
commissioner, to be functionally illiterate or learning disabled.
    (b) The following persons or families with income and 
resources that are less than the standard of assistance 
established by the commissioner are eligible for and entitled to 
a maximum of six months of general assistance during any 
consecutive 12-month period, after registering with and 
completing six months in a work readiness program under section 
256D.051: 
    (1) a person who has borderline mental retardation; and 
    (2) a person who exhibits perceptible symptoms of mental 
illness as certified by a qualified professional but who is not 
eligible for general assistance under paragraph (a), because the 
mental illness interferes with the medical certification 
process; provided that the person cooperates with social 
services, treatment, or other plans developed by the local 
agency to address the illness. 
    In order to retain eligibility under this paragraph, a 
recipient must continue to cooperate with work and training 
requirements as determined by the local agency. 
    Sec. 60.  [256D.051] [WORK READINESS PROGRAM.] 
    Subdivision 1.  [WORK REGISTRATION.] A person or family 
whose income and resources are less than the standard of 
assistance established by the commissioner, but who are not 
eligible to receive general assistance under section 256D.05, 
subdivision 1, are eligible for a work readiness program.  Upon 
registration, a registrant is eligible to receive assistance in 
an amount equal to general assistance under section 256D.05, 
subdivision 1, for a maximum of six months during any 
consecutive 12-month period, subject to subdivisions 3, 4, and 5.
The local agency shall pay work readiness assistance in monthly 
payments beginning at the time of registration.  
    Subd. 2.  [LOCAL AGENCY DUTIES.] (a) The local agency shall 
provide to registrants under subdivision 1 a work readiness 
program.  The work readiness program must include: 
    (1) an employability assessment and development plan in 
which the local agency estimates the length of time it will take 
the registrant to obtain employment; 
    (2) referral to available employment assistance programs 
including the Minnesota employment and economic development 
program; 
    (3) a job search program; and 
    (4) other activities designed by the local agency to 
prepare the registrant for permanent employment. 
    In order to allow time for job search, the local agency 
shall not require an individual to participate in the work 
readiness program for more than 32 hours a week.  The local 
agency shall require an individual to spend at least eight hours 
a week in job search or other work readiness program activities. 
    (b) The local agency may provide a work readiness program 
to recipients under section 256D.05, subdivision 1, paragraph 
(b). 
    Subd. 3.  [REGISTRANT DUTIES.] In order to receive work 
readiness assistance, a registrant shall cooperate with the 
local agency in all aspects of the work readiness program and 
shall accept any suitable employment, including employment 
offered through the Job Training Partnership Act, Minnesota 
employment and economic development act, and other employment 
and training options.  The local agency may terminate assistance 
to a registrant who fails to cooperate in the work readiness 
program.  A registrant who is terminated for failure to 
cooperate is not eligible, for a period of two months, for any 
remaining or additional work readiness assistance for which the 
registrant would otherwise be eligible. 
    Subd. 4.  [TWO-MONTH ASSISTANCE.] The local agency shall 
terminate a registrant after two months in the work readiness 
program if the local agency determines that registrant is not 
eligible for assistance under subdivision 5.  During the second 
month of work readiness assistance, the local agency must assess 
the registrant's eligibility under subdivision 5 and inform the 
registrant of the outcome of the assessment.  A registrant who 
is not eligible under subdivision 5 is eligible for a maximum of 
two months of work readiness assistance in any consecutive 
24-month period. 
    Subd. 5.  [SIX-MONTH ASSISTANCE.] The following registrants 
are eligible for work readiness assistance for a maximum of six 
months in any consecutive 12-month period: 
    (1) a person who has borderline mental retardation; 
    (2) a person who exhibits perceptible symptoms of mental 
illness as certified by a qualified professional but who is not 
eligible for general assistance under section 256D.05, 
subdivision 1 because the mental illness interferes with the 
medical certification process; and 
    (3) a person who is certified by the commissioner of 
economic security as being unable to secure suitable employment 
because the person lives in a distressed county or who is unable 
to secure suitable employment because the local agency has 
determined that no jobs are available that a person with the 
registrant's work history, skills, and ability has the physical 
and mental ability to perform.  For purposes of this paragraph, 
a county is distressed if it has an average unemployment rate of 
ten percent or more for the one-year period ending on April 30 
of the year in which the designation is made.  The commissioner 
shall designate a contiguous portion of a county containing a 
city of the first class located outside of the metropolitan area 
as a distressed county if: 
    (a) that portion of the county has an unemployment rate of 
ten percent or more for the one-year period ending on April 30 
of the year in which the designation is made; and 
    (b) that portion of the county has a population of at least 
50,000 as determined by the 1980 federal census. 
    Subd. 6.  [LOCAL AGENCY OPTIONS.] The local agency may, at 
its option, provide up to $100 per registrant for direct 
expenses incurred by the registrant for transportation, clothes, 
and tools necessary for employment.  The local agency may 
provide an additional $100 for direct expenses of registrants 
remaining in the work readiness program for more than two 
months.  After paying direct expenses as needed by individual 
registrants, the local agency may use any remaining money to 
provide additional services as needed by any registrant 
including education, orientation, placement, other work 
experience, on-the-job training, and other appropriate 
activities. 
    Subd. 7.  [REGISTRANT STATUS.] A registrant under this 
section is not an employee for the purposes of workers' 
compensation, unemployment insurance compensation, retirement, 
or civil service laws, and shall not perform work ordinarily 
performed by a regular public employee.  
    Subd. 8.  [INELIGIBILITY.] A person who is otherwise 
eligible to receive work readiness assistance under subdivision 
1 must be terminated from work readiness assistance if he or she 
quits work without good cause, is fired for misconduct, or 
refuses to accept an offer of suitable employment. 
    Subd. 9.  [SUBCONTRACTORS.] A local agency may, at its 
option, subcontract any or all of the duties under subdivision 2.
    Subd. 10.  [STATE AID.] State aid shall be paid to local 
agencies according to the formula in section 256D.03, 
subdivision 2, for the costs of providing assistance under this 
section. 
    Subd. 11.  [ADMINISTRATIVE COSTS.] Administrative costs 
incurred under subdivision 2 must not exceed $50 per registrant. 
    Subd. 12.  [SEPARATE APPLICATION REQUIRED.] An application 
for general assistance medical care must be made independently 
of an application for general assistance and intake interviews 
for the programs must not be conducted concurrently.  The local 
agency may use information and verifications received for either 
program to complete an application and determine eligibility for 
the other program. 
    Subd. 13.  [RIGHT TO NOTICE AND HEARING.] The local agency 
shall provide notice and opportunity for hearings for adverse 
actions under this section according to sections 256D.10 and 
256D.101.  A determination made under section 256D.051, 
subdivision 1, that a person is not eligible for general 
assistance is a denial of general assistance for purposes of 
notice, appeal, and hearing requirements.  The local agency must 
notify the person that this determination will result in a limit 
on the number of months of assistance for which the person will 
be eligible. 
    Subd. 14.  [RULEMAKING.] In consultation with local 
agencies, the commissioner may adopt permanent and emergency 
rules to implement this section.  The rules must facilitate the 
employment and training of participants. 
    Sec. 61.  Minnesota Statutes 1984, section 256D.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PRESUMPTIVE ELIGIBILITY; VENDOR PAYMENTS.] 
Until the local agency has determined the initial eligibility of 
the applicant in accordance with the provisions of section 
256D.07 or section 256D.051, grants for emergency general 
assistance shall and work readiness assistance must be in the 
form of vouchers or vendor payments unless the local agency 
determines that a cash grant will best resolve the applicant's 
need for emergency assistance.  Thereafter, grants of general 
assistance shall must be paid in cash and shall be paid once per 
month on the first day of the month, except as allowed in this 
section. 
    Sec. 62.  Minnesota Statutes 1984, section 256D.09, is 
amended by adding a subdivision to read: 
    Subd. 4.  [TEMPORARY SHELTER AND FOOD.] The local agency 
may provide general assistance, emergency general assistance, or 
work readiness assistance in the form of vouchers or vendor 
payments to an applicant or recipient who does not have an 
address at which he or she resides.  The local agency may 
provide separate vouchers or vendor payments for food, shelter, 
and other needs and may divide the monthly assistance standard 
into daily or weekly payments, whether in cash or by voucher or 
vendor payment, until the applicant or recipient has secured a 
permanent residence. 
    Sec. 63.  [256D.101] [FAILURE TO COMPLY WITH WORK 
REQUIREMENTS; NOTICE.] 
    Subdivision 1.  [DISQUALIFICATION.] If the local agency 
determines that a registrant has failed to comply with the 
requirements of section 256D.051, the local agency shall notify 
the registrant of the determination.  The notification shall be 
in writing; shall state the facts that support the local 
agency's determination; shall specify the particular actions 
that must be taken by the registrant to achieve compliance; 
shall state that the recipient must take the specified actions 
by a date certain, which must be at least 15 days following the 
date the notification is mailed or delivered to the registrant; 
shall explain the ramifications of the registrant's failure to 
take the required actions by the specified date; and shall 
advise the registrant that the registrant may request and have a 
conference with the local agency to discuss the notification. 
    Subd. 2.  [NOTICE OF GRANT REDUCTION, SUSPENSION, OR 
TERMINATION.] No notice of grant reduction, suspension, or 
termination on the ground that a registrant has failed to comply 
with section 256D.051 shall be given by the local agency until 
the notification required by subdivision 1 has been given, the 
time for compliance stated in the notification has lapsed, and 
the local agency has, subsequent to giving the notification, 
assessed the registrant's eligibility for general assistance 
under section 256D.05 and determined that the registrant is not 
eligible under that section.  The determination that the 
registrant is not eligible shall be stated in the notice of 
grant reduction, suspension, or termination. 
    Sec. 64.  Minnesota Statutes 1984, section 256D.111, 
subdivision 5, is amended to read: 
    Subd. 5.  [RULEMAKING.] The commissioner shall adopt rules 
and is authorized to adopt emergency rules:  
    (a) providing for a reasonable period of the 
disqualification from the receipt of general assistance or work 
readiness 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 work requirements or the requirements of subdivision 
1, provided that the period of disqualification for the first 
failure to comply shall not exceed one month, unless a recipient 
is disqualified as unavailable for work due to full-time student 
status as defined in section 256D.02, subdivision 15 the work 
readiness program;  
    (b) providing for the use of vouchers or vendor payments 
with respect to the family of a recipient described in clause 
(a) or section 256D.09, subdivision 4; 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. 65.  Minnesota Statutes 1984, section 256D.37, 
subdivision 1, is amended to read: 
    Subdivision 1.  (a) For all applicants for supplemental 
security income who did not receive aid pursuant to any 
categorical aid program referred to in section 256D.36 during 
December, 1973, and who make application individuals who apply 
to the appropriate local agency for supplemental aid, the local 
agency shall determine whether the individual meets the 
eligibility criteria prescribed in subdivision 2.  For each 
individual who meets the relevant eligibility criteria 
prescribed in subdivision 2, the local agency shall certify to 
the commissioner the amount of supplemental aid to which the 
individual is entitled in accordance with all of the standards 
in effect December 31, 1973, for the appropriate categorical aid 
program.  
    (b) When a recipient is a resident of a state hospital or a 
dwelling with a negotiated rate, the recipient is not eligible 
for a shelter standard, a basic needs standard, or for special 
needs payments.  The state standard of assistance for those 
recipients is the clothing and personal needs allowance for 
medical assistance recipients under section 256B.35.  Minnesota 
supplemental aid may be paid to negotiated rate facilities at 
the rates in effect on March 1, 1985, for services provided 
under the supplemental aid program to residents of the facility, 
up to the maximum negotiated rate specified in this section.  
The rate for room and board or a licensed facility must not 
exceed $800.  The maximum negotiated rate does not apply to a 
facility that, on August 1, 1984, was licensed by the 
commissioner of health only as a boarding care home, certified 
by the commissioner of health as an intermediate care facility, 
and licensed by the commissioner of human services under 
Minnesota Rules, parts 9520.0500 to 9520.0690.  The following 
facilities are exempt from the limit on negotiated rates and 
must be reimbursed for documented actual costs, until June 30, 
1987:  
    (1) a facility that only provides services to persons with 
mental retardation; and 
    (2) a facility not certified to participate in the medical 
assistance program that is licensed as a boarding care facility 
as of March 1, 1985, and only provides care to persons aged 65 
or older.  Beginning July 1, 1987, these facilities are subject 
to applicable supplemental aid limits, and mental retardation 
facilities must meet all applicable licensing and reimbursement 
requirements for programs for persons with mental retardation.  
The negotiated rates may be paid for persons who are placed by 
the local agency or who elect to reside in a room and board 
facility or a licensed facility for the purpose of receiving 
physical, mental health, or rehabilitative care, provided the 
local agency agrees that this care is needed by the person.  
When Minnesota supplemental aid is used to pay a negotiated 
rate, the rate payable to the facility must not exceed the rate 
paid by an individual not receiving Minnesota supplemental aid.  
To receive payment for a negotiated rate, the dwelling must 
comply with applicable laws and rules establishing standards 
necessary for health, safety, and licensure.  The negotiated 
rate must be adjusted by the annual percentage change in the 
urban consumer price index (CPI-U) for Minneapolis-St. Paul as 
published by the Bureau of Labor Statistics between the previous 
two Octobers, new series index (1967-100).  In computing the 
amount of supplemental aid under this section, the local agency 
shall deduct from the gross amount of the individual's 
determined needs all income, subject to the criteria for income 
disregards in effect December 31, 1973, for the appropriate 
categorical aid program, except that the earned income disregard 
for disabled persons who are not residents of long term care 
facilities shall be the same as the earned income disregard 
available to disabled persons in the supplemental security 
income program and all actual work expenses shall be deducted 
when determining the amount of income for the individual.  From 
and after the first of the month in which an effective 
application is filed, the state and the county shall share 
responsibility for the payment of the supplemental aid to which 
the individual is entitled under this section as provided in 
section 256D.36. 
    Sec. 66.  Minnesota Statutes 1984, section 256D.37, 
subdivision 2, is amended to read: 
    Subd. 2.  The eligibility criteria resource standards for 
supplemental aid under this section shall be those in effect 
December 31, 1973 for the categorical aid programs of old age 
assistance, aid to the blind, and aid to the disabled, except 
that in determining eligibility for disabled individuals who are 
not residents of long term care facilities, all actual work 
expenses shall be disregarded and the earned income disregard 
shall be the same as the earned income disregard used to 
determine eligibility for disabled individuals in the 
supplemental security income program, and except that net equity 
of $25,000 in one home used as a residence, one automobile the 
market value of which does not exceed $1,650, and real estate 
not used as a home which produces net income applicable to the 
family's needs or which the family is making a continuing effort 
to sell at a fair and reasonable price, are to be disregarded in 
determining eligibility.  The commissioner of human services 
shall annually adjust the limitation on net equity in real 
property used as a home by the same percentage as the homestead 
base value index provided in section 273.122, subdivision 2.  
The local agency shall apply the relevant criteria to each 
application.  The local agency in its discretion may permit 
eligibility of an applicant having assets in excess of the 
amount prescribed in this section if liquidation of the assets 
would cause undue loss or hardship. 
    Sec. 67.  Minnesota Statutes 1984, section 256E.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  [RESPONSIBILITIES.] The county board of 
each county shall be responsible for administration, planning 
and funding of community social services.  Each county board 
shall singly or in combination with other county boards as 
provided in section 256E.09 prepare a social services plan and 
shall update the plan biennially.  Upon final approval of the 
plan by the county board or boards, the plan shall be submitted 
to the commissioner.  The county board shall distribute money 
available pursuant to sections 256E.06 and 256E.07 for community 
social services. 
    The authority and responsibilities of county boards for 
social services for groups of persons identified in section 
256E.03, subdivision 2, shall include contracting for or 
directly providing:  (1) an assessment of the needs of each 
person applying for services which estimates the nature and 
extent of the problem to be addressed and identifies the means 
available to meet the person's needs for services; (2) 
protection for safety, health or well-being by providing 
services directed at the goal of attaining the highest level of 
independent functioning appropriate to the individual preferably 
without removing those persons from their homes; (3) a means of 
facilitating access of physically handicapped or impaired 
persons to services appropriate to their needs.  
    A county board may delegate to a county welfare board 
established under 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 before the enactment of Laws 1979, chapter 324. 
The county board must determine how citizens will participate in 
the planning process, give final approval to the community 
social services plan, and distribute community social services 
money. 
    Sec. 68.  Minnesota Statutes 1984, section 256E.12, 
subdivision 3, is amended to read: 
    Subd. 3.  The commissioner shall allocate grants under this 
section to finance up to 90 percent of each county's costs for 
services for chronically mentally ill persons.  The commissioner 
shall promulgate emergency and permanent rules to govern grant 
applications, approval of applications, allocation of grants, 
and maintenance of financial statements by grant recipients.  
The commissioner shall require collection of data and periodic 
reports as the commissioner deems necessary to demonstrate the 
effectiveness of the services in helping chronically mentally 
ill persons remain and function in their own communities.  The 
commissioner shall report to the legislature no later than 
January 15, 1983 on the effectiveness of the experimental 
program and his recommendations regarding making this program an 
integral part of the social development programs administered by 
counties.  The experimental program shall expire no later than 
June 30, 1983 1987. 
    Sec. 69.  [256F.01] [PUBLIC POLICY.] 
    It is the policy of this state that all children, 
regardless of minority racial or ethnic heritage, are entitled 
to live in families that offer a safe, permanent relationship 
with nurturing parents or caretakers and have the opportunity to 
establish lifetime relationships.  To help assure this 
opportunity, public social services must be directed toward 
accomplishment of the following purposes: 
    (1) preventing the unnecessary separation of children from 
their families by identifying family problems, assisting 
families in resolving their problems, and preventing breakup of 
the family if the prevention of child removal is desirable and 
possible; 
    (2) restoring to their families children who have been 
removed, by continuing to provide services to the reunited child 
and the families; 
    (3) placing children in suitable adoptive homes, in cases 
where restoration to the biological family is not possible or 
appropriate; and 
    (4) assuring adequate care of children away from their 
homes, in cases where the child cannot be returned home or 
cannot be placed for adoption. 
    Sec. 70.  [256F.02] [CITATION.] 
    Sections 69 to 75 may be cited as the "permanency planning 
grants to counties act." 
    Sec. 71.  [256F.03] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For purposes of sections 69 to 75, 
the terms defined in this section have the meanings given them, 
unless the context clearly indicates otherwise. 
    Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
commissioner of human services.  
    Subd. 3.  [COUNTY PLAN.] "County plan" means the community 
social services plan required by section 256E.09. 
    Subd. 4.  [COUNTY BOARD.] "County board" means the board of 
county commissioners in each county. 
    Subd. 5.  [FAMILY-BASED SERVICES.] "Family-based services" 
means intensive family-centered services to families primarily 
in their own home and for a limited time. 
    Subd. 6.  [HUMAN SERVICES BOARD.] "Human services board" 
means a board established under section 402.02, Laws 1974, 
chapter 293, or Laws 1976, chapter 340. 
    Subd. 7.  [PERMANENCY PLANNING.] "Permanency planning" 
means the systematic process of carrying out, within a short 
time, a set of goal-oriented activities designed to help 
children live in families that offer continuity of relationships 
with nurturing parents or caretakers, and the opportunity to 
establish lifetime relationships. 
    Subd. 8.  [PLACEMENT PREVENTION AND FAMILY REUNIFICATION 
SERVICES.] "Placement prevention and family reunification 
services" means a continuum of services designed to help 
children remain with their families or to facilitate 
reunification of children with their parents. 
    Subd. 9.  [RESIDENTIAL FACILITY.] "Residential facility" 
means a residential facility as defined in section 257.071, 
subdivision 1.  
    Sec. 72.  [256F.04] [DUTIES OF COMMISSIONER OF HUMAN 
SERVICES.] 
    Subdivision 1.  [GRANT PROGRAM.] The commissioner shall 
establish a statewide permanency planning grant program to 
assist counties in providing placement prevention and family 
reunification services. 
    Subd. 2.  [FORMS AND INSTRUCTIONS.] The commissioner shall 
provide necessary forms and instructions to the counties for 
their community social services plan, as required in section 
256E.09, that incorporate the permanency plan format and 
information necessary to apply for a permanency planning grant.  
For calendar year 1986, the local social services agency shall 
submit an amendment to their approved biennial community social 
services plan using the forms and instructions provided by the 
commissioner.  Beginning January 1, 1986, the biennial community 
social services plan must include the permanency plan. 
    Subd. 3.  [MONITORING.] The commissioner shall design and 
implement methods for monitoring the delivery and evaluating the 
effectiveness of placement prevention and family reunification 
services including family-based services within the state 
according to section 256E.05, subdivision 3, paragraph (e).  An 
evaluation report describing program implementation, client 
outcomes, cost, and the effectiveness of those services in 
relation to measurable objectives and performance criteria to 
keep families unified and minimize the use of out-of-home 
placements for children must be prepared by the commissioner for 
the period from January 1, 1986 through June 30, 1988. 
    Sec. 73.  [256F.05] [DISTRIBUTION OF GRANTS.] 
    Subdivision 1.  [MONEY AVAILABLE DUE TO TRANSFER; MINIMUM 
FUNDING LEVEL.] A county must not receive less in state aids 
under the permanency planning grant program in calendar years 
1986 and 1987 than the amount of reimbursement received under 
title IV-E foster care and children under state guardianship 
accounts in state fiscal year 1984.  Beginning calendar year 
1988, the reimbursement received under title IV-E foster care 
and children under state guardianship accounts must be 
distributed according to the formula in subdivision 3. 
    Subd. 2.  [ADDITIONAL MONEY.] Additional money appropriated 
for family-based services, together with an amount as determined 
by the commissioner of title IV-B funds distributed to Minnesota 
according to the Social Security Act, United States Code, title 
42, section 621, must be distributed to counties according to 
the formula in subdivision 3. 
    Subd. 3.  [FORMULA.] The amount of money distributed to 
counties under subdivision 2 must be based on the following two 
factors: 
    (1) the population of the county under age 19 years as 
compared to the state as a whole as determined by the most 
recent data from the state demographer's office; and 
    (2) the county's percentage share of the number of minority 
children in substitute care as determined by the most recent 
department of human services annual report on children in foster 
care. 
    The amount of money allocated according to formula factor 
(1) must not be less than 90 percent of the total distributed 
under subdivision 2. 
    Subd. 4.  [PAYMENTS.] The commissioner shall make grant 
payments to each county whose biennial community social services 
plan includes a permanency plan under section 53, subdivision 2. 
The payment must be made in four installments per year.  The 
commissioner may certify the payments for the first three months 
of a calendar year.  Subsequent payments must be made on April 
1, July 1, and October 1, of each calendar year. 
    Subd. 5.  [INAPPROPRIATE EXPENDITURES.] Permanency planning 
grant money must not be used for: 
    (1) child day care necessary solely because of the 
employment or training to prepare for employment, of a parent or 
other relative with whom the child is living; 
    (2) residential facility payments; 
    (3) adoption assistance payments; 
    (4) public assistance payments for aid to families with 
dependent children, supplemental aid, medical assistance, 
general assistance, general assistance medical care, or 
community health services authorized by sections 145.911 to 
145.922; or 
    (5) administrative costs for local social services agency 
public assistance staff.  
    Subd. 6.  [TERMINATION OF GRANT.] A grant may be reduced or 
terminated by the commissioner when the county agency has failed 
to comply with the terms of the grant or sections 69 to 75. 
    Subd. 7.  [TRANSFER OF FUNDS.] Notwithstanding subdivision 
1, the commissioner may transfer money from the appropriation 
for permanency planning grants to counties into the subsidized 
adoption account when a deficit in the subsidized adoption 
program occurs.  The amount of the transfer must not exceed five 
percent of the appropriation for permanency planning grants to 
counties.  
    Sec. 74.  [256F.06] [DUTIES OF COUNTY BOARDS.] 
    Subdivision 1.  [RESPONSIBILITIES.] A county board may, 
alone or in combination with other county boards, apply for a 
permanency planning grant as provided in section 53, subdivision 
2.  Upon approval of the permanency planning grant, the county 
board may contract for or directly provide placement prevention 
and family reunification services. 
    Subd. 2.  [USES OF GRANTS.] The grant must be used 
exclusively for placement prevention, family reunification 
services and training for family-based service and permanency 
planning.  The grant may not be used as a match for other 
federal money or to meet the requirements of section 256E.06, 
subdivision 5. 
    Subd. 3.  [DESCRIPTION OF FAMILY-BASED SERVICE.] When a 
county board elects to provide family-based service as a part of 
its permanency plan, its written description of family-based 
service must include the number of families to be served in each 
caseload, the provider of the service, the planned frequency of 
contacts with the families, and the maximum length of time 
family-based service will be provided to families. 
    Subd. 4.  [FINANCIAL STATEMENT BY COUNTIES.] A county 
receiving a permanency planning grant shall submit to the 
commissioner an accounting of the county's expenditures of grant 
money.  A quarterly statement must be submitted no later than 15 
days after the end of the calendar quarter and must include: 
    (1) a detailed statement of expenses attributable to the 
grant during the preceding quarter; and 
    (2) a statement of the expenditure of money for placement 
prevention and family reunification services by the county 
during the preceding quarter, including the number of clients 
served and the expenditures, by client, for each service 
provided.  
    Sec. 75.  [256F.07] [PLACEMENT PREVENTION AND FAMILY 
REUNIFICATION SERVICES.] 
    Subdivision 1.  [PREPLACEMENT REVIEW.] Each county board 
shall establish a preplacement procedure to review each request 
for substitute care placement and determine if appropriate 
community resources have been utilized before making a 
substitute care placement. 
    Subd. 2.  [PROCEDURE FOR PLACEMENT.] When the preplacement 
review has determined that a substitute care placement is 
required because the child is in imminent risk of abuse or 
neglect; or requires treatment of an emotional disorder, 
chemical dependency, or mental retardation; the agency shall 
determine the level of care most appropriate to meet the child's 
needs in the least restrictive setting and in closest proximity 
to the child's family; and estimate the length of time of the 
placement, project a placement goal, and provide a statement of 
the anticipated outcome of the placement. 
    Subd. 3.  [TYPES OF SERVICES.] Placement prevention and 
family reunification services include: 
    (1) family-based service; 
    (2) individual and family counseling; 
    (3) crisis intervention and crisis counseling;  
    (4) day care; 
    (5) 24-hour emergency caretaker and homemaker services; 
    (6) emergency shelter care up to 30 days in 12 months; 
    (7) access to emergency financial assistance; 
    (8) arrangements to provide temporary respite care to the 
family for up to 72 hours consecutively or 30 days in 12 months; 
and 
    (9) transportation services to the child and parents in 
order to prevent placement or accomplish reunification of the 
family.  
    Subd. 4.  [RIGHTS OF THE CHILD AND FAMILY.] The child and 
the family may refuse placement prevention and family 
reunification services or appeal the denial of the services. 
    Sec. 76.  Minnesota Statutes 1984, section 260.311, 
subdivision 5, is amended to read: 
    Subd. 5.  [REIMBURSEMENT OF COUNTIES.] In order to 
reimburse the counties for the cost which they assume under Laws 
1959, Chapter 698, of providing probation and parole services to 
wards of the commissioner of corrections and to aid the counties 
in achieving the purposes of this section, the commissioner 
shall annually, from funds appropriated for that purpose, pay 50 
percent of the costs of probation officers' salaries to all 
counties of not more than 200,000 population.  Nothing herein 
shall be deemed to invalidate any payments to counties made 
pursuant to this section before the effective date of Laws 1963, 
Chapter 694.  Salary costs include fringe benefits, but only to 
the extent that fringe benefits do not exceed those provided for 
state civil service employees.  On or before July 1 of each even 
numbered year each county or group of counties shall submit to 
the commissioner of corrections an estimate of its costs under 
this section.  Reimbursement shall be made on the basis of the 
estimate or actual expenditures incurred, whichever is less.  
Salary costs shall not be reimbursed unless county probation 
officers are paid salaries commensurate with the salaries paid 
to comparable positions in the classified service of the state 
civil service. The salary range to which each county probation 
officer is assigned shall be determined by the authority having 
power to appoint probation officers, and shall be based on the 
officer's length of service and performance. The appointing 
authority shall annually assign each county probation officer to 
a position on the salary scale commensurate with the officer's 
experience, tenure, and responsibilities.  The judge shall file 
with the county auditor an order setting each county probation 
officer's salary.  Time spent by a county probation officer as a 
court referee shall not qualify for reimbursement. Reimbursement 
shall be prorated if the appropriation is insufficient.  A new 
position eligible for reimbursement under this section may not 
be added by a county without the written approval of the 
commissioner of corrections.  When a new position is approved, 
the commissioner shall include the cost of the position in 
calculating each county's share. 
    Sec. 77.  Minnesota Statutes 1984, section 260.38, is 
amended to read: 
    260.38 [COST, PAYMENT.] 
    In addition to the usual care and services given by public 
and private agencies, the necessary cost incurred by the 
commissioner of human services in providing care for such child 
shall be paid by the county committing such child which, subject 
to uniform regulations established by the commissioner of human 
services, may receive a reimbursement not exceeding one-half of 
such costs from funds made available for this purpose by the 
legislature during the period beginning July 1, 1985, and ending 
December 31, 1985.  Beginning January 1, 1986, the necessary 
cost incurred by the commissioner of human services in providing 
care for the child must be paid by the county committing the 
child.  Where such child is eligible to receive a grant of aid 
to families with dependent children or supplemental security 
income for the aged, blind, and disabled, or a foster care 
maintenance payment under Title IV-E of the Social Security Act, 
United States Code, title 42, sections 670 to 676, his needs 
shall be met through these programs.  
    Sec. 78.  Minnesota Statutes 1984, section 268.672, 
subdivision 6, is amended to read: 
    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.  
    In addition, A farmer who resides in a county qualified 
under Federal Disaster Relief and or any member of a farm family 
household who can demonstrate severe household financial 
need may shall be considered unemployed under this subdivision.  
    Sec. 79.  Minnesota Statutes 1984, section 268.672, 
subdivision 11, is amended to read: 
    Subd. 11.  [PROGRAM.] "Program" means the Minnesota 
emergency employment and economic development program created by 
sections 268.671 to 268.686 consisting of temporary work relief 
projects in the government and nonprofit agencies and 
new permanent job creation in the private sector.  
    Sec. 80.  Minnesota Statutes 1984, section 268.673, 
subdivision 2, is amended to read: 
    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 and economic 
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 and aid to families with dependent 
children programs and make maximum use of grant diversions from 
those programs;  
    (f) Set policy regarding disbursement of program funds; and 
    (g) Perform general program marketing and monitoring 
functions.  
    Sec. 81.  Minnesota Statutes 1984, section 268.674, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CREATION.] There is created a 
Minnesota emergency employment and economic development task 
force to advise the coordinator in the administration of 
sections 268.671 to 268.686. 
    Sec. 82.  Minnesota Statutes 1984, section 268.675, is 
amended to read: 
    268.675 [ALLOCATION OF FUNDS AMONG SERVICE DELIVERY AREAS.] 
    Subdivision 1.  [SERVICE DELIVERY AREA PORTION.] Eighty (a) 
Seventy percent of the funds available for allocation to 
employment administrators for the program must be allocated 
among service delivery areas as follows:  (1) 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; (2) however, 15 percent of the 
amount which would be allocated under paragraph (1) to each 
service delivery area in which the unemployment rate, for the 
12-month period ending the most recent March 31, is less than 
the statewide unemployment rate on that date shall not be 
allocated according to paragraph (1).  This amount shall be 
pooled and distributed at the discretion of the coordinator only 
to employment administrators in these service delivery areas 
with lower than average unemployment rates who have demonstrated 
outstanding performance from May 1, 1984, to August 1, 1984, in 
placement of persons applicants whose income and resources are 
less than the standard of assistance established under section 
256D.05, subdivision 1, or who would otherwise be eligible to 
receive general assistance aid to families with dependent 
children, as shown by:  
    (i) the proportion of general assistance-eligible the 
applicants who have been placed in permanent private sector jobs 
under the program, relative to the total number of general 
assistance-eligible the applicants placed under the program; or 
    (ii) the proportion of general assistance-eligible the 
applicants placed in all jobs under the program, relative to 
total job placements under the program.  
    (b) Ten Five 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);  
    (3) who have demonstrated outstanding performance in job 
creation; or 
    (4) who have demonstrated that the unemployed persons in 
the service delivery area incur unusual costs related to 
employment under sections 268.671 to 268.686.  
    (c) Five percent of the funds available to employment 
administrators under the program must be allocated for necessary 
costs of relocation.  
    Subd. 2.  [HIGH UNEMPLOYMENT REGIONS.] Ten (a) Twenty 
percent of the funds available for allocation to employment 
administrators under the program must be allocated by the 
coordinator to employment administrators for use in regions that 
have unemployment rates for the 12-month period ending the most 
recent March 31 which meet or exceed 140 percent of the 
statewide unemployment rate.  Funds must be allocated to regions 
in proportion to the number of unemployed persons within the 
region distressed counties.  A county is distressed if it has an 
average unemployment rate of ten percent or more for the 
one-year period ending on April 30 of the year in which the 
designation is made. 
    (b) The commissioner shall designate a contiguous portion 
of a county containing a city of the first class located outside 
of the metropolitan area as a distressed county if: 
    (1) that portion of the county has an unemployment rate of 
ten percent or more for the one-year period ending on April 30 
of the year in which the designation is made; and 
    (2) that portion of the county has a population of at least 
50,000 as determined by the 1980 federal census. 
    Sec. 83.  Minnesota Statutes 1984, section 268.676, 
subdivision 1, is amended to read: 
    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 whose income and resources are less than the 
standard of assistance established under section 256D.05, 
subdivision 1; 
    (3) applicants who are eligible to receive aid to families 
with dependent children; and 
    (4) applicants living in farm households who can 
demonstrate severe household financial need. 
    In service delivery areas where the unemployment rate for 
the 12-month period ending the most recent March 31 is below the 
statewide unemployment rate at that time, the employment 
administrator shall give higher priority to only those 
applicants described in clause(2) than to those described in 
clause (1) clauses (1) to (4), and who otherwise satisfy the 
definition of an "eligible job applicant" in section 268.672, 
subdivision 6, are eligible for a job or job training program 
under section 268.677. 
    Sec. 84.  Minnesota Statutes 1984, section 268.676, 
subdivision 2, is amended to read: 
    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 268.68 and 268.681.  The 
employment administrator shall give priority to 
funding permanent private sector jobs to the extent that 
eligible businesses apply for funds.  If possible, no more 
than 40 25 percent of the funds may be allocated for temporary 
nonprofit jobs with eligible government and nonprofit agencies 
during the biennium.  
    Sec. 85.  Minnesota Statutes 1984, section 268.677, is 
amended to read: 
    268.677 [USE OF FUNDS.] 
    Funds appropriated for the purposes of sections 268.671 to 
268.686 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) Notwithstanding the limitations of paragraph (a), funds 
may be used to provide a state contribution for wages and fringe 
benefits in permanent private sector jobs for eligible job 
applicants who had previously held temporary nonprofit jobs with 
eligible government and nonprofit agencies for which a state 
contribution had been made, and who: 
    (1) are priority job applicants provided by section 
268.676, subdivision 1; and 
    (2) have been unemployed for a period of one year. 
The use of funds under this paragraph shall be for a maximum of 
1,040 hours over a maximum period of 26 weeks per job applicant. 
    (b) (c) 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 268.671 to 
268.686, and to reimburse the employment administrators in an 
amount not to exceed 4-1/2 five percent of the funds 
appropriated for their actual cost of administering sections 
268.671 to 268.686.  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) (d) To provide child care services or subsidies to 
applicants employed under sections 268.671 to 268.686;  
    (d) (e) To provide workers' compensation coverage to 
applicants employed in temporary nonprofit jobs by government or 
nonprofit agencies under sections 268.671 to 268.686;  
    (e) (f) To provide job search assistance, labor market 
orientation, job seeking skills, and referral for other services;
    (f) (g) 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 
in the manner required by sections 268.671 to 268.686.  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 and economic development 
account and may be reallocated by the coordinator to other 
employment administrators.  
    Sec. 86.  Minnesota Statutes 1984, section 268.678, 
subdivision 2, is amended to read: 
    Subd. 2.  [EMPLOYMENT AND ECONOMIC DEVELOPMENT PLAN.] Each 
employment administrator shall develop an emergency employment 
and economic 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.  
    Sec. 87.  Minnesota Statutes 1984, section 268.679, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ENERGY AND ECONOMIC DEVELOPMENT 
AUTHORITY.] The energy and economic development authority shall 
publicize the Minnesota emergency employment and economic 
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.  
    Sec. 88.  Minnesota Statutes 1984, section 268.68, is 
amended to read: 
    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.  Employment 
administrators to the greatest extent practicable shall place 
only those applicants deemed hard to employ by the administrator 
in temporary nonprofit jobs. 
    Sec. 89.  Minnesota Statutes 1984, section 268.685, is 
amended to read: 
    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 Laws 1983, 
chapter 312, article 1, section 3 or under this act for the 
program remains.  The commissioner of economic security shall 
immediately notify the commissioner of human services of the 
program's termination.  The commissioner of human services shall 
immediately notify each local agency referring recipients under 
section 256D.112 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 268.681, subdivision 4 shall cancel, cancels to the 
general fund.  Any Payments received under section 268.681, 
subdivisions 3 and 4, on or after that date shall must be 
deposited in the general fund.  
    Sec. 90.  Minnesota Statutes 1984, section 390.11, is 
amended by adding a subdivision to read: 
    Subd. 11.  [AUTOPSY FEES.] The coroner may charge a 
reasonable fee to a person requesting an autopsy if the autopsy 
would not otherwise be conducted under subdivisions 1, 2, or 3. 
    Sec. 91.  Minnesota Statutes 1984, section 390.11, is 
amended by adding a subdivision to read:  
    Subd. 12.  [AUTHORIZED REMOVAL OF THE BRAIN.] If the 
coroner is informed by a physician or pathologist that a dead 
person is suspected of having had Alzheimer's disease, the 
coroner shall authorize the removal of the brain of the dead 
person for the purposes of sections 14 and 15. 
    Sec. 92.  Minnesota Statutes 1984, section 393.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [ADMINISTRATION OF PUBLIC WELFARE.] The county 
welfare board, subject to the supervision of the commissioner of 
human services, shall administer all forms of public welfare, 
both for children and adults, responsibility for which now or 
hereafter may be imposed on the commissioner of human services 
by law, including general assistance, aid to dependent children, 
county supplementation, if any, or state aid to recipients of 
supplemental security income for aged, blind and disabled, child 
welfare services, mental health services, and other public 
assistance or public welfare services, provided that the county 
welfare board shall not employ public health nursing or home 
health service personnel other than homemaker-home help aides, 
but shall contract for or purchase the necessary services from 
existing community agencies.  The duties of the county welfare 
board shall be performed in accordance with the standards, rules 
and regulations which may be promulgated by the commissioner of 
human services to achieve the purposes intended by law and in 
order to comply with the requirements of the federal social 
security act in respect to public assistance and child welfare 
services, so that the state may qualify for grants-in-aid 
available under that act.  The county welfare board shall 
supervise wards of the commissioner and, when so designated, act 
as agent of the commissioner of human services in the placement 
of his wards in adoptive homes or in other foster care 
facilities.  The county welfare board may contract with a bank 
or other financial institution to provide services associated 
with the processing of public assistance checks and pay a 
service fee for these services, provided the fee charged does 
not exceed the fee charged to other customers of the institution 
for similar services. 
    Sec. 93.  Minnesota Statutes 1984, section 401.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  For the purpose of more effectively 
protecting society and to promote efficiency and economy in the 
delivery of correctional services, the commissioner is hereby 
authorized to make grants to assist counties in the development, 
implementation, and operation of community based corrections 
programs including, but not limited to preventive or 
diversionary correctional programs, probation, parole, community 
corrections centers, and facilities for the detention or 
confinement, care and treatment of persons convicted of crime or 
adjudicated delinquent.  The commissioner 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 a 
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. 
    Sec. 94.  Minnesota Statutes 1984, section 401.13, is 
amended to read: 
    401.13 [CHARGES MADE TO COUNTIES.] 
    Each participating county will be charged a sum equal to 
the per diem cost of confinement of those juveniles committed to 
the commissioner after August 1, 1973, and confined in a state 
correctional facility.  Provided, however, that the amount 
charged a participating county for the costs of confinement 
shall not exceed the amount of subsidy to which the county is 
eligible, and provided further that the counties of commitment 
shall also pay the per diem herein provided for all persons 
convicted of a felony for which the penalty provided by law does 
not exceed five years and confined in a state correctional 
facility prior to January 1, 1981.  A county or group of 
counties participating in the community corrections act may not 
be charged for 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 shall 
annually determine costs and deduct them from the subsidy due 
and payable to the respective participating counties, making 
necessary adjustments to reflect the actual costs of 
confinement.  However, in no case shall the percentage increase 
in the amount charged to the counties exceed the percentage by 
which the appropriation for the purposes of sections 401.01 to 
401.16 was increased over the preceding biennium.  All charges 
shall be a charge upon the county of commitment. 
    Sec. 95.  Minnesota Statutes 1984, 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 $40 $45 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. 96.  Minnesota Statutes 1984, 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 $25 $30 to the state treasurer to be deposited in the 
special revenue fund to be used as follows:  $15 $6.75 is 
appropriated to the commissioner of corrections for the purposes 
of funding grant programs for emergency shelter services and 
support services to battered women under sections 611A.31 to 
611A.36, and $23.25 is appropriated to the commissioner of 
economic security 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 611A.31 to 611A.36 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 commissioner of economic security may transfer 
money to and from the appropriation designated in this 
subdivision for the administration of displaced homemaker 
programs established by July 1, 1983, and the appropriation 
designated for programs established after July 1, 1983, if 
necessary to continue the administration of programs established 
by July 1, 1983, while developing and administering programs 
established after that date as required in this 
subdivision.  The commissioner of economic security may use 
money appropriated in this subdivision for the administration of 
a displaced homemaker program regardless of the date on which 
the program was established. 
    Sec. 97.  Minnesota Statutes 1984, section 611A.34, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CREATION.] Within 60 days after the 
effective date of sections 611A.31 to 611A.36, the commissioner 
shall appoint a nine member advisory council to advise him on 
the implementation of sections 611A.31 to 611A.36.  The 
provisions of section 15.059 shall govern the terms, and removal 
of members, and expiration of the advisory council.  
Notwithstanding section 15.059, the council shall not expire.  
Council members shall not receive per diem, but shall receive 
expenses in the same manner and amount as state employees.  
    Sec. 98.  Minnesota Statutes 1984, section 624.713, 
subdivision 1, is amended to read:  
    Subdivision 1.  [INELIGIBLE PERSONS.] The following persons 
shall not be entitled to possess a pistol: 
    (a) A person under the age of 18 years except that a person 
under 18 may carry or possess a pistol (i) in the actual 
presence or under the direct supervision of his parent or 
guardian, (ii) for the purpose of military drill under the 
auspices of a legally recognized military organization and under 
competent supervision, (iii) for the purpose of instruction, 
competition, or target practice on a firing range approved by 
the chief of police or county sheriff in whose jurisdiction the 
range is located and under direct supervision; or (iv) if the 
person has successfully completed a course designed to teach 
marksmanship and safety with a pistol and approved by the 
commissioner of natural resources; 
    (b) A person who has been convicted in this state or 
elsewhere of a crime of violence unless ten years have elapsed 
since the person has been restored his civil rights or the 
sentence has expired, whichever occurs first, and during that 
time he has not been convicted of any other crime of violence.  
For purposes of this section, crime of violence includes crimes 
in other states or jurisdictions which would have been crimes of 
violence as herein defined if they had been committed in this 
state; 
    (c) A person who is or has ever been confined or committed 
in Minnesota or elsewhere as a "mentally ill," "mentally 
retarded," or "mentally ill and dangerous to the public" person 
as defined in section 253B.02, to a treatment facility, unless 
he possesses a certificate of a medical doctor or psychiatrist 
licensed in Minnesota, or other satisfactory proof that he is no 
longer suffering from this disability; 
    (d) A person who has been convicted in Minnesota or 
elsewhere for the unlawful use, possession, or sale of a 
controlled substance other than conviction for possession of a 
small amount of marijuana, as defined in section 152.01, 
subdivision 16, or a person who is or has ever been hospitalized 
or committed for treatment for the habitual use of a controlled 
substance or marijuana, as defined in sections 152.01 and 
152.02, unless he possesses a certificate of a medical doctor or 
psychiatrist licensed in Minnesota, or other satisfactory proof, 
that he has not abused a controlled substance or marijuana 
during the previous two years;  
    (e) A person who has been confined or committed to a 
treatment facility in Minnesota or elsewhere as "chemically 
dependent" as defined in section 253B.02, or for alcoholic 
problems, unless he possesses a certificate of a medical doctor 
or psychiatrist licensed in Minnesota, or other satisfactory 
proof, that he has not abused alcohol during the previous two 
years or she has completed treatment.  Property rights may not 
be abated but access may be restricted by the courts; or 
    (f) A peace officer who is informally admitted to a 
treatment facility pursuant to section 253B.04 for chemical 
dependency, unless he possesses a certificate from the head of 
the treatment facility that he has been discharged or 
provisionally discharged from the treatment facility.  Property 
rights may not be abated but access may be restricted by the 
courts. 
    A person who issues a certificate pursuant to this 
subdivision in good faith shall is not be liable for damages in 
an action arising out of the issuance resulting or arising from 
the actions or misconduct with a firearm committed by the 
individual who is the subject of the certificate. 
    Sec. 99.  Laws 1984, chapter 616, section 1, is amended to 
read: 
    Section 1.  [DEMONSTRATION PROJECT FOR TREATMENT OF 
COMPULSIVE GAMBLERS.] 
    Subdivision 1.  [AUTHORIZATION.] The commissioner of public 
welfare human services is authorized to establish a pilot 
demonstration project to be completed no later than June 
30, 1985 1987, for the treatment of compulsive gamblers.  For 
purposes of this act, a "compulsive gambler" means a person who 
is chronically and progressively preoccupied with gambling and 
the urge to gamble, and with gambling behavior that compromises, 
disrupts, or damages personal, family, or vocational pursuits. 
    Subd. 2.  [SERVICES.] The services provided shall may 
include outpatient services, consultation and educational 
services, and other forms of preventive treatment, or 
rehabilitation services for compulsive gamblers.  The 
commissioner may enter into agreements with county agencies or 
other organizations and may employ consultants as necessary to 
assist in providing these services or in training individuals to 
qualify them to provide these services. 
    Subd. 3.  [REPORT.] The commissioner shall report to the 
legislature during the 1985 1986 session on the progress of the 
demonstration project.  The commissioner shall deliver a final 
report to the legislature by January 15, 1986 1987.  The report 
shall consider, among other things, the following issues: 
    (1) the nature of compulsive gambling and current practices 
in diagnosing and treating it; 
    (2) the extent of compulsive gambling in this state and the 
effect of current and proposed forms of legalized gambling on 
the incidence of compulsive gambling; 
    (3) existing programs in this state to deal with compulsive 
gambling; 
    (4) proposals for additional efforts to deal with 
compulsive gambling by both public and private agencies; 
    (5) coverage of compulsive gambling under existing health 
insurance policies and proposals to change that coverage; 
    (6) recommendations for a coordinated program of public and 
private action to deal with compulsive gambling by means of both 
treatment and public information, with recommended funding 
levels and implementation strategy; and 
    (7) the estimated annual cost of establishing compulsive 
gambling treatment programs. 
    Sec. 100.  [REIMBURSEMENT STUDY; REPORTS.] 
    Subdivision 1.  The commissioner of human services shall 
study mechanisms for reimbursement of providers of services for 
mentally retarded people in intermediate care facilities, 
developmental achievement centers and waivered services under 
section 256B.501.  The mechanisms studied must base 
reimbursement on the developmental progress of people receiving 
those services and the individual needs and resource use of the 
people served by the provider, with incentives designed to 
encourage quality care.  The commissioner shall report to the 
legislative long-term care commission no later than July 1, 
1986, with recommendations on the implementation of a new 
reimbursement system.  
    Subd. 2.  The commissioner of economic security shall 
report to the commission no later than March 1, 1986, on the 
proposed rules to evaluate sheltered workshops. 
    Sec. 101.  [FEASIBILITY STUDY OF HOME EQUITY CONVERSION FOR 
LONG-TERM HEALTH CARE.] 
    Subdivision 1.  [FEASIBILITY STUDY.] The commissioner of 
human services, with the assistance of the commissioner of 
commerce, shall contract with the director of the housing 
finance agency to study and report to the legislature concerning 
the feasibility of a home equity conversion program to finance 
long-term health care insurance.  The study must examine and 
provide recommendations concerning: 
    (1) methods of encouraging participation, including public 
subsidy mechanisms; 
    (2) the characteristics of target populations; 
    (3) federal and state legislative and regulatory barriers; 
    (4) the role of the medical assistance program, insurance 
carriers and other forms of health care coverage, lending 
institutions, employers, investors, consumer organizations, and 
other programs and interests; 
    (5) estimates of demand and participation; 
    (6) estimates of cost; 
    (7) methods of addressing adverse selection; and 
    (8) other considerations affecting the desirability and 
feasibility of home equity conversion to finance long-term 
health care and long-term health care insurance. 
    Subd. 2.  [REPORT.] By February 15, 1986, the director of 
the housing finance agency shall report to the legislature on 
the study required under subdivision 1.  In addition to the 
information required under subdivision 1, the report must 
include recommendations concerning the value of a project to 
demonstrate the use of home equity conversion to finance 
long-term health care and long-term health care insurance.  If 
the report recommends establishing a demonstration project, the 
report must include recommendations for designing, implementing, 
and funding the project. 
    Sec. 102.  [PUBLIC GUARDIANSHIP STUDY.] 
    Subdivision 1.  [TASK FORCE.] The commissioner of human 
services shall establish a task force to study public 
guardianship under Minnesota Statutes, chapter 252A.  The task 
force shall consist of representatives from counties, the 
legislature, state agencies and councils, attorneys, and other 
groups that act as advocates for mentally retarded, chemically 
dependent, mentally ill, and elderly persons.  
    Subd. 2.  [FOCUS OF STUDY.] The task force shall collect 
information on at least the following items: 
    (1) the number of people under public guardianship and 
their place of residence; 
    (2) the amount of staff resources available to perform the 
role of state guardian; 
    (3) the duties of the county case manager as the 
commissioner's designee; and 
    (4) the types of disabilities of people who are under 
public guardianship. 
    The task force shall make recommendations for changes in 
the public guardianship system.  In developing the 
recommendations, the task force shall consider at least the 
following factors: 
    (1) the extent that persons who are in need of some form of 
guardianship are not receiving protective services; 
    (2) the feasibility and economic impact of extending public 
guardianship to persons with other disabilities; 
    (3) the success of models used in other states to provide 
protective services; 
    (4) methods to improve the accountability for and increase 
visits to persons under public guardianship; 
    (5) differences between public and private guardianship 
systems; and 
    (6) the feasibility of alternatives to the present public 
guardianship system. 
    Subd. 3.  [REPORT.] The commissioner shall submit a report 
to the appropriate standing committees of the legislature by 
January 1, 1986, containing the findings and recommendations of 
the task force and proposals for legislative action. 
    Sec. 103.  [INSTRUCTION TO REVISOR.] 
    The revisor of statutes is directed to change the 
references to "Minnesota emergency employment development (MEED)"
wherever they appear in Minnesota Statutes to "Minnesota 
employment and economic development (MEED)" in Minnesota 
Statutes 1985 Supplement and subsequent editions of the statutes.
    Sec. 104.  [REPEALER.] 
    Minnesota Statutes 1984, sections 62D.25; 62D.26; 62D.28; 
62D.29; 62E.17; 145.912, subdivisions 16, 17, and 18; and 
268.686, are repealed. 
    Minnesota Statutes 1984, section 256D.111, subdivisions 1, 
2, 3, and 4, are repealed effective August 1, 1985.  
    Minnesota Statutes 1984, section 256.967, is repealed 
effective November 1, 1985.  
    Minnesota Statutes 1984, section 259.405, is repealed 
effective December 31, 1985.  
    Section 22 is repealed effective January 2, 1986. 
    Sec. 105.  [EFFECTIVE DATE.] 
    Sections 5, 9, and 10 are effective August 1, 1985.  
Section 6 is effective retroactively to October 1, 1984.  
Section 22 is effective without local approval the day following 
final enactment.  Sections 39, 47 to 51, and 54 are effective 
the day following final enactment.  Section 55 is effective July 
1, 1986, except that paragraph (b) is effective July 1, 1985.  
Sections 59, 60, 61, 62, 63, and 64, are effective August 1, 
1985.  Sections 65 and 66 are effective January 1, 1986.  
Sections 78 to 88 are effective if no other law is enacted 
during the 1985 special session that amends these sections. 
    Approved June 27, 1985

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569