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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1989 

                         CHAPTER 89-S.F.No. 787 
           An act relating to human services; establishing 
          reporting requirements; defining the functions and 
          responsibilities of the commissioner in supervising 
          community social services administered by the 
          counties; requiring the commissioner of human services 
          to ensure compliance with applicable program laws and 
          regulations; implementing corrective action plans; 
          providing sanctions and establishing an incentive 
          program; amending Minnesota Statutes 1988, sections 
          245.482; 245.716; 245.73, subdivision 4; 252.275, 
          subdivision 7; 256.01, subdivision 2; 256.72; 256.736, 
          subdivision 15; 256.871, subdivision 6; 256.935, 
          subdivision 1; 256B.05, subdivision 1; 256B.20; 
          256D.04; 256D.39; 256E.05, subdivision 3, and by 
          adding subdivisions; 256E.08, subdivisions 1 and 8; 
          256E.12, subdivision 3; 256F.06, subdivision 4; 
          256H.09, subdivision 1; and 257.3575, subdivision 2.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 245.482, is 
amended to read: 
    245.482 [REPORTING AND EVALUATION.] 
    Subdivision 1.  [REPORTS.] The commissioner shall specify 
requirements for reports, including quarterly fiscal reports, 
according to section 256.01, subdivision 2, paragraph (17).  
    Subd. 2.  [FISCAL REPORTS.] The commissioner shall develop 
a unified format for quarterly fiscal reports that will include 
information that the commissioner determines necessary to carry 
out sections 245.461 to 245.486 and section 256E.08.  The county 
board shall submit a completed fiscal report in the required 
format no later than 15 days after the end of each quarter.  
    Subd. 2 3.  [PROGRAM REPORTS.] The commissioner shall 
develop a unified format for an annual program report that will 
include information that the commissioner determines necessary 
to carry out sections 245.461 to 245.486 and section 256E.10.  
The county board shall submit a completed program report in the 
required format by March 15 of each year. 
    Subd. 3 4.  [PROVIDER REPORTS.] The commissioner may 
develop a format and procedures for direct reporting from 
providers to the commissioner to include information that the 
commissioner determines necessary to carry out sections 245.461 
to 245.486.  In particular, the provider reports must include 
aggregate information by county of residence about mental health 
services paid for by funding sources other than counties. 
    Subd. 4 5.  [INACCURATE OR INCOMPLETE REPORTS.] The 
commissioner shall promptly notify a county or provider if a 
required report is clearly inaccurate or incomplete.  The 
commissioner may delay all or part of a mental health fund 
payment if an appropriately completed report is not received as 
required by this section. 
    Subd. 5 6.  [STATEWIDE EVALUATION.] The commissioner shall 
use the county and provider reports required by this section to 
complete the statewide report required in section 245.461. 
    Sec. 2.  Minnesota Statutes 1988, section 245.716, is 
amended to read: 
    245.716 [REPORTS; DATA COLLECTION.] 
    Subdivision 1.  [PERIODIC REPORTS.] The commissioner shall 
require collection of data for compliance, monitoring, and 
evaluation purposes and shall require periodic reports from the 
counties on the use of funds under the federal block grant by 
counties for qualified community mental health centers. The 
commissioner shall specify requirements for reports, including 
quarterly fiscal reports, according to section 256.01, 
subdivision 2, paragraph (17).  
    Subd. 2.  [QUARTERLY FINANCIAL STATEMENTS.] Beginning in 
calendar year 1982, each county shall include in its quarterly 
financial accounting report to the commissioner of the county's 
community social services fund a separate statement identifying 
the use of funds, including those received under the federal 
block grant for qualified community mental health centers as 
specified in section 256E.08, subdivision 8, clauses (a) and 
(b).  The initial quarterly statement shall be submitted not 
later than 15 days after the end of the first calendar quarter 
in which funds are allocated to the counties in accordance with 
section 245.713, subdivisions 1 and 2.  
    Subd. 3.  [SOCIAL SERVICES REPORT.] Beginning in calendar 
year 1983, each county shall include in the report required by 
section 256E.10 a part or subpart which addresses the items 
specified in section 256E.10, subdivision 1, clauses (a) and 
(b), as they pertain to the use of funds available from the 
federal government for services of qualified community mental 
health centers.  
    Sec. 3.  Minnesota Statutes 1988, section 245.73, 
subdivision 4, is amended to read: 
    Subd. 4.  [RULES; REPORTS.] The commissioner shall 
promulgate an emergency and permanent rule to govern grant 
applications, approval of applications, allocation of grants, 
and maintenance of service and financial records by grant 
recipients.  The commissioner shall specify requirements for 
reports, including quarterly fiscal reports, according to 
section 256.01, subdivision 2, paragraph (17).  The commissioner 
shall require collection of data for compliance, monitoring and 
evaluation purposes and shall require periodic reports to 
demonstrate the effectiveness of the services in helping adult 
mentally ill persons remain and function in their own 
communities.  The commissioner shall report to the legislature 
no later than December 31 of each even-numbered year as to the 
effectiveness of this program and recommendations regarding 
continued funding.  
    Sec. 4.  Minnesota Statutes 1988, section 252.275, 
subdivision 7, is amended to read: 
    Subd. 7.  [REPORTS.] The commissioner shall require 
collection of data and periodic reports necessary to demonstrate 
the effectiveness of semi-independent living services in helping 
persons with mental retardation or related conditions achieve 
self-sufficiency and independence. The commissioner shall 
specify requirements for reports, including quarterly fiscal 
reports, according to section 256.01, subdivision 2, paragraph 
(17).  
    Sec. 5.  Minnesota Statutes 1988, section 256.01, 
subdivision 2, is amended to read: 
    Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
section 241.021, subdivision 2, the commissioner of human 
services shall: 
     (1) Administer and supervise all forms of public assistance 
provided for by state law and other welfare activities or 
services as are vested in the commissioner.  Administration and 
supervision of human services activities or services includes, 
but is not limited to, assuring timely and accurate distribution 
of benefits, completeness of service, and quality program 
management.  In addition to administering and supervising human 
services activities vested by law in the department, the 
commissioner shall have the authority to: 
     (a) require local agency participation in training and 
technical assistance programs to promote compliance with 
statutes, rules, federal laws, regulations, and policies 
governing human services; 
     (b) monitor, on an ongoing basis, the performance of local 
agencies in the operation and administration of human services, 
enforce compliance with statutes, rules, federal laws, 
regulations, and policies governing welfare services and promote 
excellence of administration and program operation; 
     (c) develop a quality control program or other monitoring 
program to review county performance and accuracy of benefit 
determinations; 
     (d) require local agencies to make an adjustment to the 
public assistance benefits issued to any individual consistent 
with federal law and regulation and state law and rule and to 
issue or recover benefits as appropriate; 
     (e) delay or deny payment of all or part of the state and 
federal share of benefits and administrative reimbursement 
according to the procedures set forth in section 256.017; and 
     (f) make contracts with and grants to public and private 
agencies and organizations, both profit and nonprofit, and 
individuals, using appropriated funds. 
     (2) Inform local agencies, on a timely basis, of changes in 
statute, rule, federal law, regulation, and policy necessary to 
local agency administration of the programs. 
     (3) Administer and supervise all child welfare activities; 
promote the enforcement of laws protecting handicapped, 
dependent, neglected and delinquent children, and children born 
to mothers who were not married to the children's fathers at the 
times of the conception nor at the births of the children; 
license and supervise child-caring and child-placing agencies 
and institutions; supervise the care of children in boarding and 
foster homes or in private institutions; and generally perform 
all functions relating to the field of child welfare now vested 
in the state board of control. 
     (4) Administer and supervise all noninstitutional service 
to handicapped persons, including those who are visually 
impaired, hearing impaired, or physically impaired or otherwise 
handicapped.  The commissioner may provide and contract for the 
care and treatment of qualified indigent children in facilities 
other than those located and available at state hospitals when 
it is not feasible to provide the service in state hospitals. 
     (5) Assist and actively cooperate with other departments, 
agencies and institutions, local, state, and federal, by 
performing services in conformity with the purposes of Laws 
1939, chapter 431. 
     (6) Act as the agent of and cooperate with the federal 
government in matters of mutual concern relative to and in 
conformity with the provisions of Laws 1939, chapter 431, 
including the administration of any federal funds granted to the 
state to aid in the performance of any functions of the 
commissioner as specified in Laws 1939, chapter 431, and 
including the promulgation of rules making uniformly available 
medical care benefits to all recipients of public assistance, at 
such times as the federal government increases its participation 
in assistance expenditures for medical care to recipients of 
public assistance, the cost thereof to be borne in the same 
proportion as are grants of aid to said recipients. 
     (7) Establish and maintain any administrative units 
reasonably necessary for the performance of administrative 
functions common to all divisions of the department. 
     (8) The commissioner is designated as guardian of both the 
estate and the person of all the wards of the state of 
Minnesota, whether by operation of law or by an order of court, 
without any further act or proceeding whatever, except as to 
persons committed as mentally retarded.  
     (9) Act as coordinating referral and informational center 
on requests for service for newly arrived immigrants coming to 
Minnesota. 
     (10) The specific enumeration of powers and duties as 
hereinabove set forth shall in no way be construed to be a 
limitation upon the general transfer of powers herein contained. 
     (11) Establish county, regional, or statewide schedules of 
maximum fees and charges which may be paid by local agencies for 
medical, dental, surgical, hospital, nursing and nursing home 
care and medicine and medical supplies under all programs of 
medical care provided by the state and for congregate living 
care under the income maintenance programs. 
     (12) Have the authority to conduct and administer 
experimental projects to test methods and procedures of 
administering assistance and services to recipients or potential 
recipients of public welfare.  To carry out such experimental 
projects, it is further provided that the commissioner of human 
services is authorized to waive the enforcement of existing 
specific statutory program requirements, rules, and standards in 
one or more counties.  The order establishing the waiver shall 
provide alternative methods and procedures of administration, 
shall not be in conflict with the basic purposes, coverage, or 
benefits provided by law, and in no event shall the duration of 
a project exceed four years.  It is further provided that no 
order establishing an experimental project as authorized by the 
provisions of this section shall become effective until the 
following conditions have been met: 
     (a) The proposed comprehensive plan including estimated 
project costs and the proposed order establishing the waiver 
shall be filed with the secretary of the senate and chief clerk 
of the house of representatives at least 60 days prior to its 
effective date. 
     (b) The secretary of health, education, and welfare of the 
United States has agreed, for the same project, to waive state 
plan requirements relative to statewide uniformity. 
     (c) A comprehensive plan, including estimated project 
costs, shall be approved by the legislative advisory commission 
and filed with the commissioner of administration.  
     (13) In accordance with federal requirements establish 
procedures to be followed by local welfare boards in creating 
citizen advisory committees, including procedures for selection 
of committee members. 
     (14) Allocate federal fiscal disallowances or sanctions 
which are based on quality control error rates for the aid to 
families with dependent children, medical assistance, or food 
stamp program in the following manner:  
     (a) One-half of the total amount of the disallowance shall 
be borne by the county boards responsible for administering the 
programs.  For the medical assistance and AFDC programs, 
disallowances shall be shared by each county board in the same 
proportion as that county's expenditures for the sanctioned 
program are to the total of all counties' expenditures for the 
AFDC and medical assistance programs.  For the food stamp 
program, sanctions shall be shared by each county board, with 50 
percent of the sanction being distributed to each county in the 
same proportion as that county's administrative costs for food 
stamps are to the total of all food stamp administrative costs 
for all counties, and 50 percent of the sanctions being 
distributed to each county in the same proportion as that 
county's value of food stamp benefits issued are to the total of 
all benefits issued for all counties.  Each county shall pay its 
share of the disallowance to the state of Minnesota.  When a 
county fails to pay the amount due hereunder, the commissioner 
may deduct the amount from reimbursement otherwise due the 
county, or the attorney general, upon the request of the 
commissioner, may institute civil action to recover the amount 
due. 
     (b) Notwithstanding the provisions of paragraph (a), if the 
disallowance results from knowing noncompliance by one or more 
counties with a specific program instruction, and that knowing 
noncompliance is a matter of official county board record, the 
commissioner may require payment or recover from the county or 
counties, in the manner prescribed in paragraph (a), an amount 
equal to the portion of the total disallowance which resulted 
from the noncompliance, and may distribute the balance of the 
disallowance according to paragraph (a).  
    (15) Develop and implement special projects that maximize 
reimbursements and result in the recovery of money to the 
state.  For the purpose of recovering state money, the 
commissioner may enter into contracts with third parties.  Any 
recoveries that result from projects or contracts entered into 
under this paragraph shall be deposited in the state treasury 
and credited to a special account until the balance in the 
account reaches $400,000.  When the balance in the account 
exceeds $400,000, the excess shall be transferred and credited 
to the general fund.  All money in the account is appropriated 
to the commissioner for the purposes of this paragraph. 
    (16) Have the authority to make direct payments to 
facilities providing shelter to women and their children 
pursuant to section 256D.05, subdivision 3.  Upon the written 
request of a shelter facility that has been denied payments 
under section 256.05, subdivision 3, the commissioner shall 
review all relevant evidence and make a determination within 30 
days of the request for review regarding issuance of direct 
payments to the shelter facility.  Failure to act within 30 days 
shall be considered a determination not to issue direct payments.
    (17) Have the authority to establish and enforce the 
following county reporting requirements:  
    (a) The commissioner shall establish fiscal and statistical 
reporting requirements necessary to account for the expenditure 
of funds allocated to counties for human services programs.  
When establishing financial and statistical reporting 
requirements, the commissioner shall evaluate all reports, in 
consultation with the counties, to determine if the reports can 
be simplified or the number of reports can be reduced. 
    (b) The county board shall submit monthly or quarterly 
reports to the department as required by the commissioner.  
Monthly reports are due no later than 15 working days after the 
end of the month.  Quarterly reports are due no later than 30 
calendar days after the end of the quarter, unless the 
commissioner determines that the deadline must be shortened to 
20 calendar days to avoid jeopardizing compliance with federal 
deadlines or risking a loss of federal funding.  Only reports 
that are complete, legible, and in the required format shall be 
accepted by the commissioner.  
    (c) If the required reports are not received by the 
deadlines established in clause (b), the commissioner may delay 
payments and withhold funds from the county board until the next 
reporting period.  When the report is needed to account for the 
use of federal funds and the late report results in a reduction 
in federal funding, the commissioner shall withhold from the 
county boards with late reports an amount equal to the reduction 
in federal funding until full federal funding is received.  
    (d) A county board that submits reports that are late, 
illegible, incomplete, or not in the required format for two out 
of three consecutive reporting periods is considered 
noncompliant.  When a county board is found to be noncompliant, 
the commissioner shall notify the county board of the reason the 
county board is considered noncompliant and request that the 
county board develop a corrective action plan stating how the 
county board plans to correct the problem.  The corrective 
action plan must be submitted to the commissioner within 45 days 
after the date the county board received notice of noncompliance.
    (e) The final deadline for fiscal reports or amendments to 
fiscal reports is one year after the date the report was 
originally due.  If the commissioner does not receive a report 
by the final deadline, the county board forfeits the funding 
associated with the report for that reporting period and the 
county board must repay any funds associated with the report 
received for that reporting period. 
    (f) The commissioner may not delay payments, withhold 
funds, or require repayment under paragraph (c) or (e) if the 
county demonstrates that the commissioner failed to provide 
appropriate forms, guidelines, and technical assistance to 
enable the county to comply with the requirements.  If the 
county board disagrees with an action taken by the commissioner 
under paragraph (c) or (e), the county board may appeal the 
action according to sections 14.57 to 14.69. 
     (g) Counties subject to withholding of funds under 
paragraph (c) or forfeiture or repayment of funds under 
paragraph (e) shall not reduce or withhold benefits or services 
to clients to cover costs incurred due to actions taken by the 
commissioner under paragraph (c) or (e). 
    Sec. 6.  Minnesota Statutes 1988, section 256.72, is 
amended to read: 
    256.72 [DUTIES OF COUNTY AGENCIES.] 
    The county agencies shall: 
    (1) Administer the provisions of sections 256.72 to 256.87 
in the respective counties subject to the rules prescribed by 
the state agency pursuant to the provisions of those sections 
and to the supervision of the commissioner of human services 
specified in section 256.01;.  
    (2) Report to the state agency at such times and in such 
manner and form as the state agency may from time to time 
direct; and required under section 256.01, subdivision 2, 
paragraph (17). 
    (3) Submit quarterly and annually to the county board of 
commissioners a budget containing an estimate and supporting 
data setting forth the amount of money needed to carry out the 
provisions of those sections.  
    (4) In addition to providing financial assistance, provide 
such services as will help to maintain and strengthen family 
life and promote the support and personal independence of 
parents and relatives insofar as such help is consistent with 
continuing parental care and protection.  
    Sec. 7.  Minnesota Statutes 1988, section 256.736, 
subdivision 15, is amended to read: 
    Subd. 15.  [REPORTING.] The commissioner of human services, 
in cooperation with the commissioner of jobs and training shall 
develop reporting requirements for local agencies and employment 
and training service providers according to section 256.01, 
subdivision 2, paragraph (17).  Reporting requirements must, to 
the extent possible, use existing client tracking systems and 
must be within the limits of funds available.  The requirements 
must include summary information necessary for state agencies 
and the legislature to evaluate the effectiveness of the 
services.  
    Sec. 8.  Minnesota Statutes 1988, section 256.871, 
subdivision 6, is amended to read: 
    Subd. 6.  [REPORTS OF ESTIMATED EXPENDITURES; PAYMENTS.] 
The county agency shall submit to the state agency an estimate 
of reports required under section 256.01, subdivision 2, 
paragraph (17).  Fiscal reports shall estimate expenditures for 
each succeeding month in such form as required by the state 
agency.  For the period from January 1 to June 30, payment shall 
be made monthly in advance by the state agency to the counties, 
of federal funds available for that purpose for each succeeding 
month, together with an amount of state funds equal to ten 
percent of the difference between the total estimated cost and 
the federal funds so available, except as provided for in 
section 256.017.  Subsequent to July 1 of each year the state 
agency shall reimburse the county agency for the funds expended 
during the January 1 to June 30 period, except as provided for 
in section 256.017.  For the period from July 1 to December 31, 
payment shall be made monthly in advance by the state agency to 
the counties, of all state and federal funds available for that 
purpose for the succeeding month, except as provided for in 
section 256.017.  Payment shall be made on the basis of federal 
and state participation rates described in this subdivision.  
Effective January 1, 1989, the state rate of participation shall 
be determined as a percentage that equals the difference between 
100 percent and the percentage rate of federal financial 
participation.  Adjustment of any overestimate or underestimate 
made by any county shall be made upon the direction of the state 
agency in any succeeding month.  
    Sec. 9.  Minnesota Statutes 1988, section 256.935, 
subdivision 1, is amended to read: 
    Subdivision 1.  On the death of any person receiving public 
assistance through aid to dependent children, the county agency 
shall pay an amount for funeral expenses not exceeding $370 and 
actual cemetery charges.  No funeral expenses shall be paid if 
the estate of the deceased is sufficient to pay such expenses or 
if the children, or spouse, who were legally responsible for the 
support of the deceased while living, are able to pay such 
expenses; provided, that the additional payment or donation of 
the cost of cemetery lot, interment, religious service, or for 
the transportation of the body into or out of the community in 
which the deceased resided, shall not limit payment by the 
county agency as herein authorized.  Freedom of choice in the 
selection of a funeral director shall be granted to persons 
lawfully authorized to make arrangements for the burial of any 
such deceased recipient.  In determining the sufficiency of such 
estate, due regard shall be had for the nature and marketability 
of the assets of the estate.  The county agency may grant 
funeral expenses where the sale would cause undue loss to the 
estate.  Any amount paid for funeral expenses shall be a prior 
claim against the estate, as provided in section 524.3-805, and 
any amount recovered shall be reimbursed to the agency which 
paid the expenses.  The commissioner shall specify requirements 
for reports, including fiscal reports, according to section 
256.01, subdivision 2, paragraph (17).  For the period from 
January 1 to June 30, the state shall reimburse the county for 
50 percent of any payments made for funeral expenses except as 
provided for in section 256.017.  Subsequent to July 1 of each 
year, the state agency shall reimburse the county agency for the 
funds expended during the January 1 to June 30 period.  For the 
period from July 1 to December 31, the state shall reimburse the 
county for 100 percent of any payments made for funeral expenses 
except as provided for in section 256.017. 
    Sec. 10.  Minnesota Statutes 1988, section 256B.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  The county agencies shall administer 
medical assistance in their respective counties under the 
supervision of the state agency and the commissioner of human 
services as specified in section 256.01, and shall make such 
reports, prepare such statistics, and keep such records and 
accounts in relation to medical assistance as the state agency 
may require under section 256.01, subdivision 2, paragraph (17). 
    Sec. 11.  Minnesota Statutes 1988, section 256B.20, is 
amended to read: 
     256B.20 [COUNTY APPROPRIATIONS.] 
     The providing of funds necessary to carry out the 
provisions hereof on the part of the counties and the manner of 
administering the funds of the counties and the state shall be 
as follows: 
    (1) The board of county commissioners of each county shall 
annually set up in its budget an item designated as the county 
medical assistance fund and levy taxes and fix a rate therefor 
sufficient to produce the full amount of such item, in addition 
to all other tax levies and tax rate, however fixed or 
determined, sufficient to carry out the provisions hereof and 
sufficient to pay in full the county share of assistance and 
administrative expense for the ensuing year; and annually on or 
before October 10 shall certify the same to the county auditor 
to be entered by the auditor on the tax rolls.  Such tax levy 
and tax rate shall make proper allowance and provision for 
shortage in tax collections.  
    (2) Any county may transfer surplus funds from any county 
fund, except the sinking or ditch fund, to the general fund or 
to the county medical assistance fund in order to provide money 
necessary to pay medical assistance awarded hereunder.  The 
money so transferred shall be used for no other purpose, but any 
portion thereof no longer needed for such purpose shall be 
transferred back to the fund from which taken.  
    (3) Upon the order of the county agency the county auditor 
shall draw a warrant on the proper fund in accordance with the 
order, and the county treasurer shall pay out the amounts 
ordered to be paid out as medical assistance hereunder.  When 
necessary by reason of failure to levy sufficient taxes for the 
payment of the medical assistance in the county, the county 
auditor shall carry any such payments as an overdraft on the 
medical assistance funds of the county until sufficient tax 
funds shall be provided for such assistance payments.  The board 
of county commissioners shall include in the tax levy and tax 
rate in the year following the year in which such overdraft 
occurred, an amount sufficient to liquidate such overdraft in 
full.  
    (4) Claims for reimbursement and reports shall be presented 
to the state agency by the respective counties in such manner as 
the state agency shall prescribe, not later than ten days after 
the close of the month in which the expenditures were made as 
required under section 256.01, subdivision 2, paragraph (17).  
The state agency shall audit such claims and certify to the 
commissioner of finance the amounts due the respective counties 
without delay.  The amounts so certified shall be paid within 
ten days after such certification, from the state treasury upon 
warrant of the commissioner of finance from any money available 
therefor.  The money available to the state agency to carry out 
the provisions hereof, including all federal funds available to 
the state, shall be kept and deposited by the state treasurer in 
the revenue fund and disbursed upon warrants in the same manner 
as other state funds.  
    Sec. 12.  Minnesota Statutes 1988, section 256D.04, is 
amended to read: 
    256D.04 [DUTIES OF THE COMMISSIONER.] 
    In addition to any other duties imposed by law, the 
commissioner shall: 
    (1) Supervise according to section 256.01 the 
administration of general assistance and general assistance 
medical care by local agencies as provided in sections 256D.01 
to 256D.21; 
    (2) Promulgate uniform rules consistent with law for 
carrying out and enforcing the provisions of sections 256D.01 to 
256D.21 to the end that general assistance may be administered 
as uniformly as possible throughout the state; rules shall be 
furnished immediately to all local agencies and other interested 
persons; in promulgating rules, the provisions of sections 14.01 
to 14.69, shall apply; 
    (3) Allocate money appropriated for general assistance and 
general assistance medical care to local agencies as provided in 
section 256D.03, subdivisions 2 and 3; 
    (4) Accept and supervise the disbursement of any funds that 
may be provided by the federal government or from other sources 
for use in this state for general assistance and general 
assistance medical care; 
    (5) Cooperate with other agencies including any agency of 
the United States or of another state in all matters concerning 
the powers and duties of the commissioner under sections 256D.01 
to 256D.21; 
    (6) Cooperate to the fullest extent with other public 
agencies empowered by law to provide vocational training, 
rehabilitation, or similar services; and 
    (7) Gather and study current information and report at 
least annually to the governor and legislature on the nature and 
need for general assistance and general assistance medical care, 
the amounts expended under the supervision of each local agency, 
and the activities of each local agency and publish such reports 
for the information of the public.  
    (8) Specify requirements for general assistance and general 
assistance medical care reports, including fiscal reports, 
according to section 256.01, subdivision 2, paragraph (17). 
    Sec. 13.  Minnesota Statutes 1988, section 256D.39, is 
amended to read: 
    256D.39 [FISCAL AND ADMINISTRATIVE PROCEDURES.] 
    The commissioner of human services shall supervise county 
administration of supplemental aid, and shall, by rule, 
establish necessary administrative and fiscal procedures.  The 
procedures may include, but not be limited to: 
    (a) Procedures for processing claims of the counties for 
reimbursement by the state for expenditures made by the counties 
that include requirements for reports, including fiscal reports, 
required under section 256.01, subdivision 2, paragraph (17); 
    (b) Procedures by which county liability for supplemental 
aid may be deducted from state liability to the county under any 
other public assistance program authorized by law; 
    (c) Procedures by which the local agencies may contract 
with the commissioner of human services for state administration 
of supplemental aid.  
    Sec. 14.  Minnesota Statutes 1988, section 256E.05, 
subdivision 3, is amended to read: 
    Subd. 3.  [ADDITIONAL DUTIES.] The commissioner shall also: 
    (a) Provide necessary forms and instructions to the 
counties for plan format and information; 
    (b) Identify and then amend or repeal the portions of all 
applicable department rules which mandate counties to provide 
specific community social services or programs, unless state or 
federal law requires the commissioner to mandate a service or 
program.  The commissioner shall be exempt from the rulemaking 
provisions of chapter 14 in amending or repealing rules pursuant 
to this clause.  However, when the commissioner proposes to 
amend or repeal any rule under the authority granted by this 
clause, notice shall be provided by publication in the State 
Register.  When the commissioner proposes to amend a rule, the 
notice shall include that portion of the existing rule necessary 
to provide adequate notice of the nature of the proposed 
change.  On proposing to repeal an entire rule, the commissioner 
need only publish that fact, giving the exact citation to the 
rule to be repealed.  In all cases, the notice shall contain a 
statement indicating that interested persons may submit comment 
on the proposed repeal or amendment for a period of 30 days 
after publication of the notice.  The commissioner shall take no 
final action until after the close of the comment period.  The 
commissioner's actions shall not be effective until five days 
after the commissioner publishes notice of adoption in the State 
Register.  If the final action is the same as the action 
originally proposed, publication may be made by notice in the 
State Register that the amendment and repeals have been adopted 
as proposed, and by citing the prior publication.  If the final 
action differs from the action as previously proposed in the 
State Register, the text which differs from the original 
proposal shall be included in the notice of adoption together 
with a citation to the prior State Register publication.  The 
commissioner shall provide to all county boards separate notice 
of all final actions which become effective under this clause, 
advising the boards with respect to services or programs which 
have now become optional, to be provided at county discretion; 
    (c) Provide to the chair of each county board, in addition 
to notice required pursuant to sections 14.05 to 14.36, timely 
advance notice and a written summary of the fiscal impact of any 
proposed new rule or changes in existing rule which will have 
the effect of increasing county costs for community social 
services; 
    (d) (c) Provide training, technical assistance, and other 
support services to county boards to assist in needs assessment, 
planning, implementing, and monitoring social services programs 
in the counties; 
    (e) (d) Design and implement a method of monitoring and 
evaluating social services, including site visits that utilize 
quality control audits to assure county compliance with 
applicable standards, guidelines, and the county and state 
social services plans; 
    (f) (e) Design and implement a system that uses corrective 
action procedures as established in subdivision 5 and a schedule 
of fines to ensure county compliance with statutes, rules, 
federal laws, and federal regulations governing community social 
services.  In determining the amount of the fine, the 
commissioner may consider the number of community social 
services clients or applicants affected by the county's failure 
to comply with the law or rule, the severity of the 
noncompliance, and the duration of the noncompliance as 
determined by the commissioner.  Fines levied against a county 
under this subdivision must not exceed ten percent of the 
county's community social services allocation for the year in 
which the fines are levied; 
    (f) Design and implement an incentive program for the 
benefit of counties that perform at a level that consistently 
meets or exceeds the minimum standards in law and rule.  Fines 
collected under paragraph (e) may be placed in an incentive fund 
and used for the benefit of counties that meet and exceed the 
minimum standards; 
    (g) Specify requirements for reports, including fiscal 
reports, according to section 256.01, subdivision 2, paragraph 
(17), to account for aids distributed under section 256E.06, 
funds from Title XX of the Social Security Act distributed under 
Minnesota Statutes, section 256E.07, claims under Title IV-E of 
the Social Security Act, mental health funding, and other social 
service expenditures and activities; 
    (h) Annually publish a report on community social services 
which shall reflect the contents of the individual county 
reports.  The report shall be submitted to the governor and the 
legislature with an evaluation of community social services and 
recommendations for changes needed to fully implement state 
social service policies; and 
    (g) (i) Request waivers from federal programs as necessary 
to implement sections 256E.01 to 256E.12.  
    Sec. 15.  Minnesota Statutes 1988, section 256E.05, is 
amended by adding a subdivision to read: 
    Subd. 4.  [REDUCTION OF FEDERAL FISCAL SANCTIONS.] The 
commissioner shall establish and maintain a monitoring program 
designed to reduce the possibility of noncompliance with federal 
laws and federal regulations that may result in federal fiscal 
sanctions.  If a county is not complying with federal law or 
federal regulation and the noncompliance may result in federal 
fiscal sanctions, the commissioner may withhold a portion of the 
county's share of state and federal funds for that program.  The 
amount withheld must be equal to the percentage difference 
between the level of compliance maintained by the county and the 
level of compliance required by the federal regulations, 
multiplied by the county's share of state and federal funds for 
the program.  The state and federal funds may be withheld until 
the county is found to be in compliance with all federal laws or 
federal regulations applicable to the program.  If a county 
remains out of compliance for more than six consecutive months, 
the commissioner may reallocate the funds withheld to counties 
that are in compliance with the federal regulations. 
    Sec. 16.  Minnesota Statutes 1988, section 256E.05, is 
amended by adding a subdivision to read: 
     Subd. 5.  [CORRECTIVE ACTION PROCEDURE.] The commissioner 
must comply with the following procedures when imposing fines 
under subdivision 3, paragraph (e), or reducing county funds 
under subdivision 4. 
     (a) The commissioner shall notify the county, by certified 
mail, of the statute, rule, federal law, or federal regulation 
with which the county has not complied. 
     (b) The commissioner shall give the county 30 days to 
demonstrate to the commissioner that the county is in compliance 
with the statute, rule, federal law, or federal regulation cited 
in the notice or to develop a corrective action plan to address 
the problem.  Upon request from the county, the commissioner 
shall provide technical assistance to the county in developing a 
corrective action plan.  The county shall have 30 days from the 
date the technical assistance is provided to develop the 
corrective action plan. 
     (c) The commissioner shall take no further action if the 
county demonstrates compliance. 
     (d) The commissioner shall review and approve or disapprove 
the corrective action plan within 30 days after the commissioner 
receives the corrective action plan. 
     (e) If the commissioner approves the corrective action plan 
submitted by the county, the county has 90 days after the date 
of approval to implement the corrective action plan. 
     (f) If the county fails to demonstrate compliance or fails 
to implement the corrective action plan approved by the 
commissioner, the commissioner may fine the county according to 
subdivision 3, paragraph (e), or may reduce the county's share 
of state or federal funds according to subdivision 4. 
     (g) The commissioner may not impose a fine or reduce funds 
under this subdivision if the county demonstrates that the 
commissioner failed to provide appropriate forms, guidelines, 
and technical assistance to enable the county to comply with the 
requirements. 
    (h) The county may appeal the fine or the reduction in 
funds under section 256E.06, subdivision 10. 
    Sec. 17.  Minnesota Statutes 1988, section 256E.05, is 
amended by adding a subdivision to read: 
    Subd. 6.  [COUNTY OBLIGATION TO FUND COMMUNITY SOCIAL 
SERVICES.] Counties subject to a fine or reduction of funds 
under subdivision 5, paragraph (f), shall not reduce the level 
of funding of community social services to cover the cost of the 
fine or reduction of funds. 
    Sec. 18.  Minnesota Statutes 1988, 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) information about the symptoms and characteristics of 
specific problems of the identified groups to increase 
understanding and acceptance by the general public, to help 
alleviate fears of seeking help, and to enable access to 
appropriate assistance; 
     (2) an assessment of the needs of each person applying for 
assistance which estimates the nature and extent of the problem 
to be addressed and identifies the means available to meet the 
person's needs.  These diagnostic and evaluation activities 
shall evaluate the functioning of each person with regard to an 
illness or disability, screen for placement, and determine the 
need for services; 
    (3) protection aimed at alleviating urgent needs of each 
person by determining urgent need, shielding persons in 
hazardous conditions when they are unable to care for 
themselves, and providing urgently needed assistance; 
    (4) supportive and rehabilitative activities that assist 
each person to function at the highest level of independence 
possible for the person, preferably without removing the person 
from home.  These activities include both increasing the 
client's level of functioning and maintaining current levels of 
functioning; 
    (5) a means of facilitating access of physically 
handicapped or impaired persons to activities appropriate to 
their needs; and 
    (6) administrative activities to coordinate and facilitate 
the effective use of formal and informal helping systems to best 
address client needs and goals.  This includes assisting the 
client in making informed decisions about opportunities and 
services, assuring timely access to needed assistance, providing 
opportunities and encouragement for self-help activities, and 
coordinating all services to meet the client's needs and goals.  
County case management shall be responsible for determining 
appropriate care and activities. 
    If, after appropriate notice, a county does not fulfill its 
responsibilities or is not in compliance with the applicable 
department rule, the commissioner shall certify a reduction of 
up to 20 percent of the county's annual community social 
services act funding, or an equivalent amount from state 
administrative aids, and the state shall assume the 
responsibilities in this subdivision.  When a county is notified 
of this action, it may appeal according to the provisions in 
section 256E.06, subdivision 10.  
    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. 19.  Minnesota Statutes 1988, section 256E.08, 
subdivision 8, is amended to read: 
   Subd. 8.  [FINANCIAL REPORTING BY COUNTIES.] Beginning in 
calendar year 1980 each county shall submit to the commissioner 
of human services a financial accounting of the county's 
community social services fund.  A quarterly statement shall be 
submitted no later than 15 days after the end of the calendar 
quarter, and, and other data required by the commissioner under 
section 256E.05, subdivision 3, paragraph (g), shall include:  
    (a) A detailed statement of income and expenses 
attributable to the fund in the preceding quarter; and 
    (b) A statement of the source and application of all money 
used for social services programs by the county during the 
preceding quarter, including the number of clients served and 
expenditures for each service provided, as required by the 
commissioner of human services.  
    In addition, each county shall submit to the commissioner 
of human services no later than February 15 of each year, a 
detailed balance sheet of the community social development fund 
for the preceding calendar year.  
    If county boards have joined or designated human service 
boards for purposes of providing community social services 
programs, the county boards may submit a joint statement or the 
human service board shall submit the statement, as applicable.  
     Sec. 20.  Minnesota Statutes 1988, 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 to persons with serious and persistent mental illness.  
The commissioner shall promulgate permanent rules to govern 
grant applications, approval of applications, allocation of 
grants, and maintenance of financial statements by grant 
recipients.  The commissioner shall specify requirements for 
reports, including quarterly fiscal reports, according to 
section 256.01, subdivision 2, paragraph (17).  The commissioner 
shall require collection of data and periodic reports as the 
commissioner deems necessary to demonstrate the effectiveness of 
the services in helping persons with serious and persistent 
mental illness remain and function in their own communities. 
    Sec. 21.  Minnesota Statutes 1988, section 256F.06, 
subdivision 4, is amended to read: 
    Subd. 4.  [FINANCIAL STATEMENT BY COUNTIES REPORTING.] 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 The commissioner 
shall specify requirements for reports, including quarterly 
fiscal reports, according to section 256.01, subdivision 2, 
paragraph (17).  The reports 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. 22.  Minnesota Statutes 1988, section 256H.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [QUARTERLY REPORTS.] The commissioner shall 
specify requirements for reports, including quarterly fiscal 
reports, according to section 256.01, subdivision 2, paragraph 
(17).  Counties and post-secondary educational systems shall 
submit on forms prescribed by the commissioner a quarterly 
financial and program activity report which is due 20 calendar 
days after the end of each quarter.  The financial and program 
activity report must include: 
    (1) a detailed accounting of the expenditures and revenues 
for the program during the preceding quarter by funding source 
and by eligibility group; 
    (2) a description of activities and concomitant 
expenditures that are federally reimbursable under the AFDC 
employment special needs program; 
    (3) a description of activities and concomitant 
expenditures of set-aside money; 
    (4) information on money encumbered at the quarter's end 
but not yet reimbursable, for use in adjusting allocations as 
provided in section 256H.05, subdivision 4; 256H.06, subdivision 
3; and 256H.07, subdivision 3; and 
    (5) other data the commissioner considers necessary to 
account for the program or to evaluate its effectiveness in 
preventing and reducing participants' dependence on public 
assistance and in providing other benefits, including 
improvement in the care provided to children.  
    Sec. 23.  Minnesota Statutes 1988, section 257.3575, 
subdivision 2, is amended to read: 
    Subd. 2.  [QUARTERLY REPORT.] The commissioner shall 
specify requirements for reports, including quarterly fiscal 
reports, according to section 256.01, subdivision 2, paragraph 
(17).  Each quarter, an approved program receiving an Indian 
child welfare grant shall submit a report to the commissioner 
that includes: 
    (1) a detailed accounting of grant money expended during 
the preceding quarter, specifying expenditures by line item and 
year to date; and 
    (2) a description of Indian child welfare activities 
conducted during the preceding quarter, including the number of 
clients served and the type of services provided.  
    The quarterly reports must be submitted no later than 15 30 
days after the end of each quarter of the state fiscal year. 
    Presented to the governor May 5, 1989 
    Signed by the governor May 9, 1989, 11:50 a.m.