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


                         Laws of Minnesota 1987 

                        CHAPTER 369-H.F.No. 1054 
           An act relating to vocational rehabilitation; limiting 
          grants to sheltered workshops; providing for use of 
          community-based employment; regulating and defining 
          vocational rehabilitation programs; amending Minnesota 
          Statutes 1986, sections 129A.01; 129A.03; 129A.06; 
          129A.07; and 129A.08. 
    Section 1.  Minnesota Statutes 1986, section 129A.01, is 
amended to read: 
    129A.01 [DEFINITIONS.] 
    Subdivision 1.  [GENERAL.] For the purposes of this 
chapter, the following terms defined in this section shall have 
the meanings given them:. 
    (a) Subd. 2.  [DEPARTMENT.] "Department" means the 
department of jobs and training;. 
    (b) Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
commissioner of jobs and training;. 
"Vocational rehabilitation services" means those services and 
goods so defined in the federal Rehabilitation Act of 1973 and 
section 129A.03, clause (b);. 
    (d) Subd. 5.  [HANDICAPPED PERSON.] "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) Subd. 6.  [LONG-TERM SHELTERED WORKSHOP.] "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) Subd. 7.  [WORK ACTIVITY PROGRAM.] "Work activity 
program" means a program which utilizes manufacturing activities 
and other production paid work and training services for the 
primary purpose of providing basic vocational skills development 
for the handicapped; and which permits a level of production 
below that required for a long-term employment program.  
    (g) Subd. 8.  [SHELTERED EMPLOYEE.] "Sheltered employee" 
means a handicapped person working for pay while participating 
in a long-term sheltered workshop an extended employment program.
    (h) Subd. 9.  [CENTER FOR INDEPENDENT LIVING.] "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.  
    Subd. 10.  [LONG-TERM EMPLOYMENT PROGRAM.] "Long-term 
employment program" means a program which provides paid work on 
the premises of a long-term sheltered workshop and training 
services on or off the premises and which does not include work 
    Subd. 11.  [EXTENDED EMPLOYMENT PROGRAMS.] "Extended 
employment programs" means the following programs which may be 
offered by a long-term sheltered workshop: 
    (1) long-term employment program; 
    (2) work activity program; 
    (3) work component program; and 
    (4) community-based employment program. 
PROGRAM.] "Community-based employment program" means a program 
providing paid work and service hours in a position removed from 
a long-term sheltered workshop site. 
    Subd. 13.  [WORK COMPONENT PROGRAM.] "Work component 
program" means a cooperative effort agreed to between a 
long-term sheltered workshop for a long-term employment or a 
work activity program and a developmental achievement center 
licensed by the Minnesota department of human services or other 
facility to provide work activity on a limited scale so that the 
primary responsibility over vocational outcomes will be vested 
in the long-term employment or work activity program. 
     Sec. 2.  Minnesota Statutes 1986, section 129A.03, is 
amended to read: 
    129A.03 [POWERS AND DUTIES.] 
    The commissioner shall: 
    (a) develop and administer certify the long-term sheltered 
workshops and work activity to offer extended employment 
programs, grant funds to the extended employment 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 Number 761, section 221, and the act approved October 
30, 1972, known as the Social Security Amendments of 1972, 
Public Law Number 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 
     (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. 3.  Minnesota Statutes 1986, section 129A.06, is 
amended to read: 
    Subdivision 1.  Any city, town, county, nonprofit 
corporation, or any combination thereof, may apply to the 
commissioner for assistance in establishing or operating a 
community long-term sheltered workshop or work activity 
program.  Application for assistance shall be on forms supplied 
by the commissioner.  Each applicant shall annually submit to 
the commissioner its plan and budget for the next fiscal year.  
No applicant shall be eligible for a grant hereunder unless its 
plan and budget have been approved by the commissioner. 
    Subd. 2.  In order to provide the necessary funds for 
extended employment programs offered by a long-term sheltered 
workshop or work activity program, the governing body of any 
city, town, or county may expend money which may be available 
for such purposes in the general fund, and may levy a tax which, 
except when levied by a county, shall not exceed in any one year 
the following amounts per capita of the population, based upon 
the last federal census:  Cities of the first class, not to 
exceed ten cents per capita; cities of other than the first 
class, and towns, not to exceed 30 cents per capita.  A tax 
levied pursuant to this subdivision is not a special levy as 
defined in section 275.50, subdivision 5, and shall be subject 
to the limitation provided in sections 275.51 to 275.56.  Any 
city, town, county, or nonprofit corporation may accept gifts or 
grants from any source for the long term sheltered workshop or 
work activity program.  Any money appropriated, taxed, or 
received as a gift or grant may be used to match funds available 
on a matching basis. 
     Sec. 4.  Minnesota Statutes 1986, section 129A.07, 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 chair 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 chairs 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. 
    Subd. 2.  The term of office of each member of the 
community long-term sheltered workshop or work activity board 
shall be for four years, measured from the first day of the year 
of appointment, except as follows:  Of the members first 
appointed, at least three shall be appointed for a term of two 
years, at least three for a term of three years and at least 
three for a term of four years.  Vacancies shall be filled for 
the unexpired term in the same manner as original appointments.  
Any member of a board may be removed by the appointing authority 
for neglect of duty, misconduct or malfeasance in office, after 
being given a written statement of charges and an opportunity to 
be heard thereon. 
    Subd. 3.  Subject to the provisions of sections 129A.06 to 
129A.08 and the rules of the department, each community 
long-term sheltered workshop or work activity program board 
    (a) Review and evaluate the need for a extended employment 
programs offered by the long-term sheltered workshop services or 
work activity program provided pursuant to sections 129A.06 to 
129A.08 and report thereon to the commissioner and, when 
indicated, the public, together with recommendations for 
additional services and facilities extended employment programs; 
    (b) Recruit and promote local financial support for the 
program extended employment programs from private sources such 
as community chests, business, industrial and private 
foundations, voluntary agencies and other lawful sources and 
promote public support for municipal and county appropriations; 
    (c) Promote, arrange and implement working agreements with 
other educational and social service agencies both public and 
private and any other allied agencies; 
    (d) Advise the commissioner on the adoption and 
implementation of policies to stimulate effective community 
    (e) Review the annual plan and budget and make 
recommendations thereon; 
    (f) When so determined by the authority establishing the 
extended employment program offered by the long-term sheltered 
workshop is certified, act as the administrator of the program 
workshop and its programs for purposes of this chapter. 
     Sec. 5.  Minnesota Statutes 1986, section 129A.08, is 
amended to read: 
    Subdivision 1.  [GRANTS.] The commissioner may make grants 
to assist cities, towns, counties, nonprofit corporations, or 
any combination thereof in the establishment, operation and 
expansion of the extended employment programs offered by 
long-term sheltered workshops or work activity programs.  The 
commissioner may accept federal grants or aids and shall 
cooperate with federal agencies in any reasonable manner 
necessary to qualify for federal grants or aids for long-term 
sheltered workshops or work activity their programs. 
    Subd. 2.  [EVALUATION; STATE FUNDING.] At the beginning of 
each fiscal year, the commissioner shall allocate available 
funds to long-term sheltered workshops and work activity 
extended employment programs for disbursement during the fiscal 
year in accordance with approved plans or budgets.  The 
commissioner shall study and recommend to the legislature by 
March 1, 1985, new allocation formulas which take into 
consideration effectiveness of the workshop extended employment 
programs.  In its recommendation the commissioner shall 
calculate the fiscal impact of the various formulas on each 
workshop and the extent to which a workshop can utilize new 
allocation formulas.  The commissioner shall develop forms to 
assist the workshops in collecting data necessary to complete 
the program evaluation.  Information needed to conduct the 
evaluations must be submitted by the workshops along with the 
annual requests for funding.  Failure to submit documentation 
requested by the commissioner shall result in the withdrawal of 
all state funding for the extended employment programs offered 
by the workshop.  
    The commissioner shall from time to time during the fiscal 
year review the budgets and expenditures of the workshops and 
programs.  If funds are not needed for the workshop or program 
to which they were allocated, the commissioner may, after 
reasonable notice and opportunity for hearing, withdraw such 
funds as are unencumbered and reallocate them to other workshops 
or programs.  The commissioner may withdraw funds from any 
workshop or program which is not being administered in 
accordance with its approved plan and budget unless a modified 
plan and budget is submitted to and approved by the 
commissioner, and implemented within a reasonable time. 
    The commissioner shall also withdraw funds from a workshop 
or program not being administered according to department rules, 
or not meeting mandatory standards for certification, unless a 
plan bringing the workshop or program into compliance with the 
rules and standards is submitted to and approved by the 
commissioner and implemented within a reasonable time.  
    Subd. 3.  [OPERATING COSTS FUNDED.] The grant average of 
all grants under this section may not exceed an amount equal to 
75 percent of the normal operating expenses of the long-term 
sheltered workshop or work activity program for all individual 
programs for sheltered workshops.  Wages paid sheltered 
employees or work activity program participants are to be 
excluded in determining operating cost.  In the event that there 
are inadequate funds appropriated to meet the foregoing 
provisions in full, they shall be prorated proportionately.  
    Subd. 4.  [EVALUATION OF WORKSHOPS PROGRAMS.] The workshop 
program evaluation must include, but not be limited to, the 
following considerations:  
    (a) Wages and benefits paid to sheltered employees and 
number of hours worked;  
    (b) Rate of placement in competitive employment;  
    (c) Opportunities for sheltered employees to participate in 
decisions affecting their employment;  
    (d) Workshop responsiveness to sheltered employees 
    (e) Increases in individual sheltered employee productivity;
    (f) Implementing innovative ways to increase placement and 
retention of sheltered employees in competitive employment, or 
in sheltered positions with competitive employers, or innovative 
ways that increase sheltered employee wages;  
    (g) Efficiency of the workshops; and 
    (h) Types and levels of disability of the sheltered 
employees and willingness of the workshop to accept and assist 
persons with serious behavioral, mental, sensory or physical 
    The evaluation must take into account the disability levels 
of the sheltered employees, the geographic location and size of 
the workshop and the economic conditions of the surrounding 
    Subd. 5.  [RULE AUTHORITY.] In addition to the powers 
already conferred 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 allocation of 
state grant funds to extended employment programs; 
    (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 
extended employment programs; 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, 1986.  The rules must be 
used in making allocations for fiscal years beginning after June 
30, 1987.  
    Subd. 6.  [TECHNICAL ASSISTANCE.] The commissioner shall 
provide technical assistance within available resources to 
workshops and programs based on the need reflected in an 
    Subd. 7.  [GRANTS.] The commissioner may use money 
allocated to the division of vocational rehabilitation for 
management information systems to provide grants to long-term 
sheltered workshops to finance and purchase equipment necessary 
to:  (1) provide the information required to comply with the 
evaluation criteria developed under subdivision 5; (2) increase 
sheltered worker productivity; and (3) train severely disabled 
people in computer and other high-technology applications.  As a 
condition of receiving a grant for the purposes of (2) or (3), 
the commissioner shall require workshops to provide matching 
     Sec. 6.  [EFFECTIVE DATE.] 
     This act is effective the day following its final enactment.
    Approved June 2, 1987

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Revisor of Statutes