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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1992 

                        CHAPTER 513-H.F.No. 2694 
           An act relating to the organization and operation of 
          state government; providing for programs relating to 
          higher education; environment and natural resources; 
          agriculture, transportation, semi-state, and 
          regulatory agencies; economic and state affairs; 
          health and human services; providing for regulation of 
          certain activities and practices; making fund and 
          account transfers; providing for fees; making grants; 
          appropriating money and reducing earlier 
          appropriations with certain conditions; amending 
          Minnesota Statutes 1990, sections 3.21; 3.305; 3.736, 
          subdivision 8; 5.09; 5.14; 10A.31, subdivision 4; 
          15.0597, subdivision 4; 16A.45, by adding a 
          subdivision; 16A.48, subdivision 1; 16B.85, 
          subdivision 5; 17.03, by adding subdivisions; 18B.26, 
          subdivision 3; 43A.191, subdivision 2; 44A.0311; 
          60A.1701, subdivision 5; 72B.04, subdivision 10; 
          80A.28, subdivision 2; 82.21, subdivision 1; 82B.09, 
          subdivision 1; 85A.04, subdivision 1; 89.035; 89.37, 
          by adding a subdivision; 115D.04, subdivision 2; 
          116J.9673, subdivision 4; 116P.11; 136.60, by adding a 
          subdivision; 136A.1354, subdivision 4; 136A.29, 
          subdivision 9; 138.56, by adding a subdivision; 
          138.763, subdivision 1; 138.766; 141.21, by adding a 
          subdivision; 144.122; 144.123, subdivision 2; 
          144A.071, subdivision 2; 144A.073, subdivisions 3, 3a, 
          and 5; 144A.43, subdivisions 3 and 4; 144A.46, 
          subdivision 5; 144A.51, subdivisions 4 and 6; 144A.52, 
          subdivisions 3 and 4; 144A.53, subdivisions 2, 3, and 
          4; 144A.54, subdivision 1; 147.01, by adding a 
          subdivision; 151.06, subdivision 1, and by adding a 
          subdivision; 169.01, subdivision 55; 169.965, by 
          adding a subdivision; 176.104, subdivision 2, and by 
          adding subdivisions; 176.129, subdivisions 1 and 11; 
          176.183, subdivision 1; 182.666, subdivision 7; 
          204B.11, subdivision 1; 204B.27, subdivision 2; 
          204D.11, subdivisions 1 and 2; 237.701, subdivision 1; 
          240.14, subdivision 3; 245A.02, by adding 
          subdivisions; 245A.07, subdivisions 2 and 3; 245A.11; 
          245A.13, subdivision 4; 252.025, subdivision 4; 
          254A.03, subdivision 2; 254B.06, subdivision 3; 
          256.12, by adding a subdivision; 256.81; 256.9655; 
          256.9695, subdivision 3; 256B.02, by adding 
          subdivisions; 256B.035; 256B.056, subdivisions 1a, 2, 
          3, 5, and by adding a subdivision; 256B.057, by adding 
          a subdivision; 256B.059, subdivisions 2 and 5; 
          256B.0595, subdivision 1; 256B.0625, by adding 
          subdivisions; 256B.064, by adding a subdivision; 
          256B.092, by adding a subdivision; 256B.14, 
          subdivision 2; 256B.15, subdivisions 1 and 2; 256B.19, 
          by adding a subdivision; 256B.36; 256B.41, 
          subdivisions 1 and 2; 256B.421, subdivision 1, and by 
          adding a subdivision; 256B.431, subdivisions 2i, 4, 
          and by adding subdivisions; 256B.432, by adding a 
          subdivision; 256B.433, subdivisions 1, 2, and 3; 
          256B.48, subdivisions 1b, 2, 3, 4, and by adding 
          subdivisions; 256B.495, subdivisions 1, 2, and by 
          adding subdivisions; 256B.50, subdivisions 1b and 2; 
          256B.501, subdivision 3c, and by adding subdivisions; 
          256C.28, subdivisions 2 and 3; 256D.02, subdivision 8, 
          and by adding subdivisions; 256D.03, by adding a 
          subdivision; 256D.051, by adding a subdivision; 
          256D.06, subdivision 5, and by adding a subdivision; 
          256D.35, subdivision 11; 256D.54, subdivision 3; 
          256E.14; 256H.01, subdivision 9, and by adding a 
          subdivision; 256H.10, subdivision 1; 256I.01; 256I.02; 
          256I.03, subdivisions 2 and 3; 256I.04, as amended; 
          256I.05, subdivisions 1, 3, 6, 8, 9, and by adding a 
          subdivision; 256I.06; 270.063; 270.71; 298.221; 
          299E.01, subdivision 1; 299F.011, subdivision 4a; 
          340A.301, subdivision 6; 340A.302, subdivision 3; 
          340A.315, subdivision 1; 340A.317, subdivision 2; 
          340A.408, subdivision 4; 345.32; 345.33; 345.34; 
          345.35; 345.36; 345.37; 345.38; 345.39; 345.42, 
          subdivision 3; 349.161, subdivision 4; 349.163, 
          subdivision 2; 352.04, subdivisions 2 and 3; 353.27, 
          subdivision 13; 356.65, subdivision 1; 357.021, 
          subdivision 1a; 357.18, by adding a subdivision; 
          359.01, subdivision 3; 363.071, by adding a 
          subdivision; 363.14, subdivisions 2 and 3; 466.06; 
          490.123, by adding a subdivision; 514.67; 518.551, 
          subdivisions 7 and 10; 609.131, by adding a 
          subdivision; 609.5315, by adding a subdivision; 
          611.27, by adding subdivisions; and 626.861, 
          subdivision 3; Minnesota Statutes 1991 Supplement, 
          sections 16A.45, subdivision 1; 16A.723, subdivision 
          2; 17.63; 28A.08; 41A.09, subdivision 3; 60A.14, 
          subdivision 1; 84.0855; 89.37, subdivision 4; 121.936, 
          subdivision 1; 135A.03, subdivisions 1a and 7; 
          136A.101, subdivision 8; 136A.121, subdivision 6; 
          136A.1353, subdivision 4; 144.50, subdivision 6; 
          144A.071, subdivision 3; 144A.31, subdivision 2a; 
          144A.46, subdivisions 1 and 2 ; 144A.49; 144A.51, 
          subdivision 5; 144A.53, subdivision 1; 144A.61, 
          subdivisions 3a and 6a; 144B.01, subdivisions 5, 6, 
          and by adding a subdivision; 144B.10, subdivision 2; 
          147.03; 148.91, subdivision 3; 148.921, subdivision 2; 
          148.925, subdivisions 1, 2, and by adding a 
          subdivision; 168.129, subdivisions 1 and 2; 182.666, 
          subdivision 2; 240.13, subdivisions 5 and 6; 240.15, 
          subdivision 6; 240.18, by adding a subdivision; 
          245A.03, subdivision 2; 245A.04, subdivision 3; 
          245A.16, subdivision 1; 251.011, subdivision 3; 
          252.28, subdivision 1; 252.46, subdivision 3; 252.50, 
          subdivision 2; 254B.04, subdivision 1; 256.031, 
          subdivision 3; 256.033, subdivisions 1, 2, 3, and 5; 
          256.034, subdivision 3; 256.035, subdivision 1; 
          256.0361, subdivision 2; 256.035, subdivision 1; 
          256.935, subdivision 1; 256.9656; 256.9657, 
          subdivisions 1, 2, 3, 4, 7, and by adding a 
          subdivision; 256.9685, subdivision 1; 256.969, 
          subdivisions 1, 2, 9, 20, and 21; 256.9751, 
          subdivisions 1 and 6; 256.98, subdivision 8; 
          256B.0625, subdivisions 2, 13, and 17; 256B.0627, 
          subdivision 5, as amended; 256B.064, subdivision 2; 
          256B.0911, subdivisions 3, 8, and by adding a 
          subdivision; 256B.0913, subdivisions 4, 5, 8, 11, 12, 
          and 14; 256B.0915, subdivision 3, and by adding 
          subdivisions; 256B.0917, subdivisions 2, 3, 4, 5, 6, 
          7, 8, and 11; 256B.0919, subdivision 1; 256B.092, 
          subdivisions 4 and 7; 256B.093, subdivisions 1, 2, and 
          3; 256B.431, subdivisions 2l, 2m, 2o, and 3f; 256B.49, 
          subdivision 4; 256B.74, subdivisions 1 and 3; 256D.03, 
          subdivisions 3 and 4; 256D.05, subdivision 1; 
          256D.051, subdivision 1; 256H.03, subdivisions 4 and 
          6; 256H.05, subdivision 1b, and by adding a 
          subdivision; 256I.05, subdivisions 1a, 1b, 2, and 10; 
          261.035; 340A.311; 340A.316; 340A.504, subdivision 3; 
          349A.10, subdivision 3; 357.021, subdivision 2; 
          508.82; 508A.82; 611.27, subdivision 7; 626.861, 
          subdivisions 1 and 4; Laws 1987, chapter 396, article 
          12, section 6, subdivision 2; Laws 1991, chapter 233, 
          section 2, subdivision 2; Laws 1991, chapter 254, 
          article 1, section 7, subdivision 5; and Laws 1991, 
          chapter 356, articles 1, section 5, subdivision 4; 2, 
          section 6, subdivision 3; and 6, section 4, by adding 
          a subdivision; proposing coding for new law in 
          Minnesota Statutes, chapter 4A; 16B; 44A; 84; 115B; 
          136C; 144; 144A; 149; 244; 245A; 246; 256; 256B; 256D; 
          256I; and 501B; repealing Minnesota Statutes 1990, 
          sections 41A.051; 84.0885; 89.036; 136A.143; 136C.13, 
          subdivision 2; 141.21, subdivision 2; 144A.15, 
          subdivision 6; 211A.04, subdivision 2; 245A.14, 
          subdivision 5; 245A.17; 252.46, subdivision 15; 
          256B.056, subdivision 3a; 256B.495, subdivision 3; 
          256D.09, subdivision 3; 256I.05, subdivision 7; and 
          270.185; Minnesota Statutes 1991 Supplement, sections 
          97A.485, subdivision 1a; 135A.50; 144A.071, 
          subdivision 3a; 256.9657, subdivision 5; 256.969, 
          subdivision 7; 256B.74, subdivisions 8 and 9; 256I.05, 
          subdivision 7a; 326.991; and Laws 1991, chapters 292, 
          article 4, section 77; and 356, article 3, section 14. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                            HIGHER EDUCATION 
Section 1.  HIGHER EDUCATION APPROPRIATIONS 
    The dollar amounts in the columns under "APPROPRIATIONS" 
are added to or, if shown in parentheses, are subtracted from 
the appropriations in Laws 1991, chapter 356, or other law to 
the specified agencies.  The appropriations are from the general 
fund or other named fund and are available for the fiscal years 
indicated for each purpose.  The figure 1992 or 1993 means that 
the addition to or subtraction from the appropriations listed 
under the figure are for the fiscal year ending June 30, 1992, 
or June 30, 1993, respectively.  If only one figure is shown in 
the text for a specified purpose, the addition or subtraction is 
for 1993 unless the context intends another fiscal year. 

                             SUMMARY BY FUND
                          1992          1993           TOTAL
General                  $15,000  ($29,015,000)   ($29,000,000)
Special Revenue         ($70,000)                     ($70,000)

                      SUMMARY BY AGENCY - ALL FUNDS
                          1992          1993           TOTAL
State Board for Technical Colleges
                                      (5,785,000)    (5,785,000)
State Board for Community Colleges
                                      (3,503,000)    (3,503,000)
State University Board
                           15,000     (4,014,000)    (3,999,000)
Board of Regents of the University of Minnesota
                                     (15,713,000)   (15,713,000)
                                           APPROPRIATIONS 
                                       Available for the Year 
                                           Ending June 30 
                                          1992         1993 
Sec. 2.  HIGHER EDUCATION
COORDINATING BOARD
Subdivision 1.  Special Revenue Fund
Cancellation
 $70,000 from the post-high school 
planning program is canceled to the 
general fund not later than June 30, 
1992. 
Subd. 2.  Agency Administration
 The legislature intends that the higher 
education coordinating board dedicate 
at least .7 of a position for the 
regulation of private proprietary 
schools under Minnesota Statutes, 
chapter 141. 
 During the biennium, the higher 
education coordinating board may expend 
money from the agency administration 
appropriation to continue membership in 
the Western Interstate Commission for 
Higher Education. 
Subd. 3.  State Grants
 The legislature intends that the higher 
education coordinating board make full 
grant awards in fiscal year 1993.  If 
the fiscal year 1993 appropriation is 
insufficient to make full awards, the 
commissioner of finance shall transfer 
up to $4,000,000 from appropriations to 
the post-secondary systems, in 
proportion to each system's 
appropriation, to the state grant 
program.  Any surplus remaining after 
making awards shall be returned to the 
systems in the same proportion in which 
it was transferred.  The board may 
request an appropriation in the 1993 
legislative session if the transfer is 
insufficient to make full awards. 
 During the biennium, if the cost of 
making full awards is less than the 
money available to the state grant 
program, the commissioner of finance 
shall transfer the excess appropriation 
from the state grant program to the 
post-secondary systems, in proportion 
to each system's appropriation. 
 To provide continuity in student 
financial aid, students enrolled for 
six or seven credits during the 
1992-1993 academic year shall be 
eligible to apply for state grants 
under Minnesota Statutes, section 
136A.121. 
Sec. 3.  STATE BOARD OF TECHNICAL COLLEGES
Total Appropriation Changes                          (5,785,000)
Sec. 4.  STATE BOARD FOR COMMUNITY 
COLLEGES 
Subdivision 1.  Total       
Appropriation Changes                                (3,503,000)
Subd. 2.  Worthington Community
College
 The appropriation in Laws 1990, chapter 
610, article 1, section 3, subdivision 
12, to renovate and construct space at 
Worthington community college, may also 
be used to construct a new learning 
resource center. 
Subd. 3.  Duluth Technical College
And Community College Center
 The state board for community colleges 
and the state board of technical 
colleges shall develop and implement an 
integrated administrative structure and 
coordinated program delivery for the 
technical college and the community 
college center at Duluth. 
Sec. 5.  STATE UNIVERSITY BOARD 
Total Appropriation Changes               15,000     (4,014,000)
 The legislature directs the state 
university board to resolve claims 
associated with the Kummer landfill.  
This direction is not an admission of 
liability for any purpose by the state 
or the board for any act or omission 
related to the release or clean up of 
hazardous substances, pollutants, or 
contaminants from the landfill. 
 $15,000 is for expenses associated with 
the task force on post-secondary 
funding. 
 The state university board may demolish 
and replace the Anishinabe Center on 
the Bemidji State University campus.  
The demolition and replacement must be 
carried out with Bemidji State 
University Foundation or other nonstate 
money.  The new center must be on state 
university land and must be state owned.
Sec. 6.  BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA 
Total Appropriation Changes                         (15,713,000)
Sec. 7.  POST-SECONDARY SYSTEMS 
 Subdivision 1.  During the biennium, it 
is the intent of the legislature to 
protect, to the extent possible, 
instructional and educational programs, 
and programs supportive of 
undergraduate and graduate students, by 
directing budget reductions at areas 
peripheral to the system missions. 
 Subd. 2.  The base budget for each 
higher education system shall be 
determined as follows: 
(a) Calculate the appropriation that 
was in effect prior to the passage of 
this article. 
(b) Reductions due to enrollment 
declines shall be calculated. 
(c) A comparison shall be made between 
the enrollment decline number and the 
reduction in this article. 
(d) Whichever figure, from clause (b) 
or (c), yields the greater reduction 
shall be subtracted from the amount 
calculated in clause (a) to develop the 
base budget for fiscal years 1994 and 
1995. 
 Subd. 3.  Notwithstanding Minnesota 
Statutes, sections 136C.36 and 137.025, 
during the biennium, the commissioner 
of finance may negotiate alternative 
payment schedules with the state board 
of technical colleges and the board of 
regents, if there is a determination 
that the state will experience cash 
flow imbalances. 
 Subd. 4.  The appropriation in Laws 
1991, chapter 233, section 5, 
subdivision 8 for fiscal year 1992 for 
costs relating to collegiate license 
plates for academic excellence 
scholarships is available for fiscal 
year 1993. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
121.936, subdivision 1, is amended to read: 
    Subdivision 1.  [MANDATORY PARTICIPATION.] (a) Every 
district shall perform financial accounting and reporting 
operations on a financial management accounting and reporting 
system utilizing multidimensional accounts and records defined 
in accordance with the uniform financial accounting and 
reporting standards adopted by the state board pursuant to 
sections 121.90 to 121.917.  
    (b) Every school district shall be affiliated with one and 
only one regional management information center.  This 
affiliation shall include at least the following components:  
    (1) the center shall provide financial management 
accounting reports to the department of education for the 
district to the extent required by the data acquisition 
calendar; 
    (2) the district shall process every detailed financial 
transaction using, at the district's option, either the ESV-IS 
finance subsystem through the center or an alternative system 
approved by the state board. 
    Notwithstanding the foregoing, a district may process and 
submit its financial data to a region or the state in summary 
form if it operates an approved alternative system or 
participates in a state approved pilot test of an alternative 
system and is reporting directly to the state as of January 1, 
1987.  A joint vocational technical district shall process and 
submit its financial data to a region or directly to the state 
board of technical colleges. 
    (c) The provisions of this subdivision shall not be 
construed to prohibit a district from purchasing services other 
than those described in clause (b) from a center other than the 
center with which it is affiliated pursuant to clause (b). 
    Districts operating an approved alternative system may 
transfer their affiliation from one regional management 
information center to another.  At least one year prior to July 
1 of the year in which the transfer is to occur, the district 
shall give written notice to its current region of affiliation 
of its intent to transfer to another region.  The one year 
notice requirement may be waived if the two regions mutually 
agree to the transfer. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
135A.03, subdivision 1a, is amended to read: 
    Subd. 1a.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
state share of the cost of instruction shall be 32 percent for 
the following categories: 
    (1) enrollment in credit bearing courses at an off-campus 
site or center, except those courses at Cambridge, Duluth, and 
Fond du Lac centers; the Arrowhead and Rochester 2 + 2 programs; 
those offered through telecommunications; those offered by the 
technical colleges; and those offered as part of a joint degree 
program; and 
    (2) enrollment of students who are concurrently enrolled in 
a secondary school and for whom the institution is receiving any 
compensation under the post-secondary enrollment options act. 
    Sec. 10.  Minnesota Statutes 1991 Supplement, section 
135A.03, subdivision 7, is amended to read: 
    Subd. 7.  [RESIDENCY RESTRICTIONS.] In calculating student 
enrollment for appropriations, only the following may be 
included: 
    (1) students who resided in the state for at least one 
calendar year prior to applying for admission; 
    (2) Minnesota residents who can demonstrate that they were 
temporarily absent from the state without establishing residency 
elsewhere; and 
    (3) residents of other states who are attending a Minnesota 
institution under a tuition reciprocity agreement.; and 
    (4) students who have been in Minnesota as migrant 
farmworkers, as defined in Code of Federal Regulations, title 
20, section 633.104, over a period of at least two years 
immediately before admission or readmission to a Minnesota 
public post-secondary institution, or students who are 
dependents of such migrant farmworkers. 
    Sec. 11.  Minnesota Statutes 1990, section 136.60, is 
amended by adding a subdivision to read: 
    Subd. 4.  [COMMUNITY COLLEGE CENTERS.] A community college 
center shall be located at Duluth.  
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
136A.101, subdivision 8, is amended to read: 
    Subd. 8.  "Resident student" means a student who meets one 
of the following conditions:  
    (1) an independent student who has resided in Minnesota for 
purposes other than post-secondary education for at least 12 
months; 
    (2) a dependent student whose parent or legal guardian 
resides in Minnesota at the time the student applies; 
    (3) a student who graduated from a Minnesota high school, 
unless if the student is a resident of a bordering state 
attending a was a resident of Minnesota during the student's 
period of attendance at the Minnesota high school; or 
    (4) a student who, after residing in the state for a 
minimum of one year, earned a high school equivalency 
certificate in Minnesota. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
136A.121, subdivision 6, is amended to read: 
    Subd. 6.  [COST OF ATTENDANCE.] The cost of attendance 
consists of allowances specified by the board for room and board 
and miscellaneous expenses, and 
    (1) for public institutions, tuition and fees charged by 
the institution; or 
    (2) for private institutions, an allowance for tuition and 
fees equal to the lesser of the actual tuition and fees charged 
by the institution, or the instructional costs per full-year 
equivalent student in comparable public institutions.  
    For students a student attending less than full time, the 
board shall prorate the cost of attendance to the actual number 
of credits for which the student is enrolled. 
    Sec. 14.  Minnesota Statutes 1991 Supplement, section 
136A.1353, subdivision 4, is amended to read: 
    Subd. 4.  [RESPONSIBILITIES OF THE HIGHER EDUCATION 
COORDINATING BOARD.] The higher education coordinating board 
shall distribute funds each year to the schools, colleges, or 
programs of nursing applying to participate in the nursing grant 
program based on the last academic year's enrollment of students 
in educational programs that would lead to licensure as a 
registered nurse.  Money not used by a recipient nursing program 
must be returned to the higher education coordinating board for 
redistribution under this section.  The board shall establish an 
application process for interested schools, colleges, or 
programs of nursing.  Initial applications are due by January 1, 
1991, and by January 1 of each later year.  By March 1, 1991, 
and by March 1 June 30 of each later year, the board shall 
notify each applicant school, college, or program of nursing of 
its approximate allocation of funds in order to allow the 
school, college, or program to determine the number of students 
that can be supported by the allocation.  The board shall 
distribute funds to the schools, colleges, or programs of 
nursing by August 1, 1991, and by August 1 of each later year. 
    Sec. 15.  Minnesota Statutes 1990, section 136A.1354, 
subdivision 4, is amended to read: 
    Subd. 4.  [RESPONSIBILITIES OF THE HIGHER EDUCATION 
COORDINATING BOARD.] The higher education coordinating board 
shall distribute funds each year to the schools or colleges of 
nursing, or programs of advanced nursing education, applying to 
participate in the nursing grant program based on the last 
academic year's enrollment of registered nurses in schools or 
colleges of nursing, or programs of advanced nursing education. 
Money not used by a recipient nursing program must be returned 
to the higher education coordinating board for redistribution 
under this section.  The board shall establish an application 
process for interested schools or colleges of nursing, or 
programs of advanced nursing education.  Initial applications 
are due by January 1, 1991, and by January 1 of each later 
year.  By March 1, 1991, and by March 1 June 30 of each later 
year, the board shall notify each applicant school or college of 
nursing, or program of advanced nursing education, of its 
approximate allocation of money to allow the school, college, or 
program to determine the number of students that can be 
supported by the allocation.  The board shall distribute money 
to the schools or colleges of nursing, or programs of advanced 
nursing education, by August 1, 1991, and by August 1 of each 
later year.  
    Sec. 16.  Minnesota Statutes 1990, section 136A.29, 
subdivision 9, is amended to read: 
    Subd. 9.  The authority is authorized and empowered to 
issue revenue bonds whose aggregate principal amount at any time 
shall not exceed $250,000,000 $350,000,000 and to issue notes, 
bond anticipation notes, and revenue refunding bonds of the 
authority under the provisions of sections 136A.25 to 136A.42, 
to provide funds for acquiring, constructing, reconstructing, 
enlarging, remodeling, renovating, improving, furnishing, or 
equipping one or more projects or parts thereof. 
    Sec. 17.  [136C.51] [WORKPLACE LITERACY RESOURCE CENTER; 
ESTABLISHMENT; PURPOSE.] 
    A workplace literacy resource center is established at 
Northeast Metro Technical College.  The resource center must act 
as a clearinghouse for Minnesota and neighboring states or 
entities to provide information on workplace skills enhancement 
curricula, available services, and methods of delivery. 
    The center may offer the following:  (1) formal classroom 
workplace literacy training; (2) functional literacy training; 
(3) workplace skills enhancement; (4) prevocational training and 
upgrading; (5) assessment and evaluation; (6) career 
exploration; and (7) preapprenticeship counseling.  The center 
shall not offer any program for credit.  
    Sec. 18.  Minnesota Statutes 1990, section 141.21, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [BOARD.] "Board" means the higher education 
coordinating board. 
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
168.129, subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] The 
commissioner of public safety shall issue special collegiate 
license plates to an applicant who: 
    (1) is an owner or joint owner of a passenger automobile, 
pickup truck, or van; 
    (2) pays a fee determined by the commissioner to cover the 
costs of handling and manufacturing the plates; 
    (3) pays the registration tax required under section 
168.12; 
    (4) pays the fees required under this chapter; 
    (5) contributes at least $100 $25 annually to the 
scholarship account established in subdivision 6; and 
    (6) complies with laws and rules governing registration and 
licensing of vehicles and drivers.  
    Sec. 20.  Minnesota Statutes 1991 Supplement, section 
168.129, subdivision 2, is amended to read: 
    Subd. 2.  [DESIGN.] After consultation with each 
participating college, university or post-secondary system, the 
commissioner shall design the special collegiate plates.  
    In consultation with the commissioner, a participating 
college or university annually shall indicate the anticipated 
number of plates needed.  Plates will be produced when the 
commissioner has received at least 200 applications. 
    Sec. 21.  Minnesota Statutes 1990, section 169.965, is 
amended by adding a subdivision to read: 
    Subd. 8.  [ALLOCATION OF FINES.] The fines collected in 
Hennepin, St. Louis, and Stevens counties shall be paid into the 
treasury of the University of Minnesota, except that the portion 
of the fines necessary to cover all costs and disbursements 
incurred in processing and prosecuting the violations in the 
court shall be transferred to the court administrator. 
    Sec. 22.  Laws 1987, chapter 396, article 12, section 6, 
subdivision 2, is amended to read: 
    Subd. 2.  [PRIVATE CONTRIBUTIONS REQUIRED.] The 
appropriation under subdivision 1 is not effective until 
sufficient private contributions or pledges have been made so 
that the private contributions and pledges, plus the 
appropriation under subdivision 1, are sufficient to establish 
the endowment for a chair in sustainable agriculture.  The 
appropriation cancels on June 30, 1992 1994, if sufficient 
private contributions and pledges have not been made. 
    Sec. 23.  Laws 1991, chapter 356, article 1, section 5, 
subdivision 4, is amended to read: 
Subd. 4.  Campus Initiatives 
 The state university board may begin 
implementation of its quality education 
plans through campus initiatives that 
enhance the quality of student and 
institutional performances.  The state 
university board may internally 
allocate up to $250,000 for money 
during the biennium to provide funding 
for these initiatives.  The board shall 
evaluate the results of the initiatives 
and report its findings to the 
education divisions of the 
appropriations and finance committees 
by January 15, 1993. 
    Sec. 24.  Laws 1991, chapter 356, article 2, section 6, 
subdivision 3, is amended to read: 
    Subd. 3.  [REPORT.] The task force shall report its 
recommendations to the appropriations and finance committees of 
the legislature by September 1, 1992 1993. 
    Sec. 25.  Laws 1991, chapter 356, article 6, section 4, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [CURRENT EMPLOYEES.] It is the policy of the 
state of Minnesota that restructuring of peace officer education 
be accomplished while ensuring that fair and equitable 
arrangements are carried out to protect the interests of higher 
education system employees, and while facilitating the best 
possible service to the public.  The affected governing boards 
shall make every effort to train and retrain existing employees 
for a changing work environment. 
    Options presented to employees whose positions might be 
eliminated by integrating peace officer education programs must 
include, but not be limited to, job and training opportunities 
necessary to qualify for another job within their current 
institution or a similar job in another institution. 
    Sec. 26.  [LICENSING PRIVATE BUSINESS, TRADE, AND 
CORRESPONDENCE SCHOOLS; RESPONSIBILITIES TRANSFERRED.] 
    The responsibilities of the commissioner of education, the 
department of education, and the state board of education 
conferred and specified under Minnesota Statutes, chapter 141, 
are transferred under Minnesota Statutes, section 15.039, to the 
higher education coordinating board. 
    Sec. 27.  [INSTRUCTION TO REVISOR.] 
    The revisor of statutes is directed to change the terms 
"commissioner," "commissioner's," "department," and "state board 
of education" wherever they appear in Minnesota Statutes, 
chapter 141, to "board" or "board's," as appropriate. 
    Sec. 28.  [REPEALER.] 
    Minnesota Statutes 1990, sections 136A.143; 136C.13, 
subdivision 2; and 141.21, subdivision 2; Minnesota Statutes 
1991 Supplement, section 135A.50; and Laws 1991, chapter 356, 
article 3, section 14, are repealed. 
    Sec. 29.  [EFFECTIVE DATE.] 
    This article is effective the day following final 
enactment, except that sections 10, 13, 18, and 26 to 28 are 
effective July 1, 1992, section 11 is effective July 1, 1993, 
and section 21 is effective July 1, 1992, for offenses committed 
on or after that date. 

                                ARTICLE 2

                    ENVIRONMENT AND NATURAL RESOURCES
    Section 1.  [APPROPRIATIONS.] 
    Unless otherwise indicated, all sums set forth in the 
columns designated "1992 and 1993 APPROPRIATION CHANGE" are to 
be added to or reduced from general fund appropriations made by 
Laws 1991, chapter 254, or other law, for the fiscal years 
ending June 30, 1992 and June 30, 1993, respectively.  Amounts 
to be reduced are designated by parentheses. 

                             SUMMARY BY FUND
                          1992          1993           TOTAL
APPROPRIATION
CHANGE             $   (3,576,000)$   (4,550,000)$   ( 8,126,000)
General-Direct     $   (4,734,000)$   (6,382,000)$   (11,116,000)
Environmental      $       50,000 $    1,499,000 $    1,549,000
Natural Resources  $      306,000 $      281,000 $      587,000
Game and Fish      $       42,000 $       52,000 $       94,000
Minnesota Resources$      760,000 $              $      760,000
                                          APPROPRIATION CHANGE
                                          1992           1993
Sec. 2.  POLLUTION CONTROL
AGENCY
Subdivision 1.  Total
Appropriation Change                    (639,000)       689,000 
The amounts in subdivision 1 are 
distributed among agency programs as 
specified in the following subdivisions.
              Summary by Fund
General                (639,000)     (511,000)
Environmental                       1,200,000
The approved environmental fund 
complement is increased by 18 positions 
effective July 1, 1992. 
Subd. 2.  Water Pollution Control       (186,000)      (146,000)
The appropriation in fiscal year 1992 
for grants to local units of government 
for the clean water partnership program 
is reduced by $134,000. 
The appropriation in fiscal year 1993 
must provide $24,000 for a grant to the 
city of Garrison for ongoing testing of 
the sewage system. 
Subd. 3.  Groundwater and Solid 
Waste Pollution Control                  (98,000)     1,015,000
              Summary by Fund
General                 (98,000)     (185,000)
Environmental                       1,200,000
$1,200,000 is appropriated in fiscal 
year 1993 from the landfill cleanup 
account for evaluation of mixed 
municipal solid waste disposal 
facilities to determine the adequacy of 
final cover, slopes, vegetation, and 
erosion control; to determine the 
presence and concentration of hazardous 
substances, pollutants or contaminants, 
and decomposition gases; and to 
determine the boundaries of fill areas. 
The appropriation for a grant to the 
department of administration for 
assistance in funding a central 
materials recovery facility is not 
reduced. 
Subd. 4.  Hazardous Waste
Pollution Control                       (250,000)       (75,000)
Subd. 5.  General Support               (105,000)      (105,000)
Any unencumbered balance of the fiscal 
year 1992 appropriation authorized in 
Laws 1991, chapter 347, article 3, 
section 5, subdivision 1, paragraph 
(a), is available for fiscal year 1993. 
The pollution control agency shall 
continue its regionalization efforts 
and shall report to the legislature by 
January 15, 1993, on the progress made 
toward implementing Phase II as 
described in the agency's 
regionalization report dated January 
1992. 
Sec. 3.  OFFICE OF WASTE    
MANAGEMENT                              (238,000)      (158,000)
              Summary by Fund
General                (288,000)     (308,000)
Environmental            50,000       150,000
The appropriation for SCORE block 
grants is not changed by these 
reductions. 
 $50,000 the first year and $150,000 the 
second year is from the pollution 
prevention account in the environmental 
fund.  The complement is increased by 
an additional position for citizen 
education in the pollution prevention 
area, effective July 1, 1992. 
Sec. 4.  ZOOLOGICAL BOARD                            (3,468,000)
This reduction is partially offset by a 
reduction in nondedicated general fund 
revenue of $3,174,000. 
 Board action to increase admission fees 
effective April 1, 1992, is estimated 
to increase nondedicated general fund 
revenue by $182,000 in fiscal year 1992.
An additional $160,000 is expected 
through increased attendance. 
 The approved general fund complement is 
decreased by 49 positions and the 
approved special revenue fund 
complement is increased by 80 positions.
Sec. 5.  NATURAL RESOURCES                                      
Subdivision 1.  Total       
Appropriation Change                  (1,962,000)    (1,435,000)
              Summary by Fund
General              (2,310,000)   (1,768,000)
Natural Resources       306,000       281,000
Game and Fish            42,000        52,000
The amounts in subdivision 1 are to be 
distributed among agency programs as 
specified in the following subdivisions.
Subd. 2.  Mineral Resources 
Management                              (271,000)      (270,000)
Subd. 3.  Water Resources 
Management                              (375,000)      (375,000)
Subd. 4.  Forest Management             (300,000)       139,000
$300,000 the first year and $821,000 
the second year are reduced from the 
forest management appropriation.  
 $960,000 in the second year is 
appropriated exclusively for 
reforestation under Minnesota Statutes, 
section 89.002.  
The commissioner shall continue to sell 
fuelwood on state lands. 
  Department of natural resources 
forestry area and district boundaries 
existing on January 1, 1992, may not be 
changed unless supported by a 
cost-benefit analysis of delivery of 
services within the current boundaries 
and the proposed boundaries.  Proposed 
boundary changes may be implemented 90 
days after the proposal and supporting 
cost-benefit analysis have been 
provided to the chairs of the 
environment and natural resources 
divisions of the senate finance and 
house appropriations committees. 
Subd. 5.  Parks and Recreation
Management                               (400,000)       195,000
Hill Annex Mine state park must be kept 
open and operated with no state 
appropriations used for water pumping. 
No more than $110,000 may be spent for 
operating the park in fiscal year 1993. 
The commissioner shall not utilize 
appropriations from the general fund 
for the purpose of hiring or 
contracting for staff to administer or 
manage the adopt-a-park program as 
provided in Minnesota Statutes, section 
85.045. 
Subd. 6.  Trails and Waterways            (39,000)        27,000 
The appropriation in fiscal year 1993 
must provide $120,000 for construction 
of shore fishing structure projects on 
the Mississippi river in South St. Paul 
and Brooklyn Center. 
Subd. 7.  Fish and Wildlife 
Management                                (32,000)       (33,000)
              Summary by Fund
General                (198,000)     (199,000)
Natural Resources       166,000       166,000
 $166,000 for the fiscal year ending 
June 30, 1992, and $166,000 for the 
fiscal year ending June 30, 1993, are 
appropriated to the commissioner of 
natural resources from the water 
recreation account for control, public 
awareness, law enforcement, monitoring, 
and research of nuisance aquatic exotic 
species such as zebra mussel, purple 
loosestrife, and Eurasian water milfoil 
in public waters and public wetlands.  
Any unencumbered balance in the first 
year does not cancel and is available 
for the second year. 
Subd. 8.  Field Operations Support      (106,000)      (485,000)
Subd. 9.  Regional Operations
Support                                 (151,000)      (160,000)
Subd. 10.  Special Services 
and Programs                            (190,000)      (190,000)
 Any reductions in the department of 
natural resources' agency operating 
budget or reductions in agency program 
efforts prompted by specific 
legislative action or economic 
conditions during the biennium shall 
not be applied against the budget for 
the Minnesota Conservation Corps in a 
greater proportion than the average if 
applied against all of the department's 
general fund programs.  Any reductions 
must be accomplished in a manner that 
does not reduce the amount of federal 
grants for which the department is 
eligible. 
Subd. 11.  Administrative   
Management Services                       82,000         67,000
              Summary by Fund
General                (100,000)     (100,000)
Natural Resources       140,000       115,000
Game and Fish            42,000        52,000
 $140,000 the first year and $115,000 
the second year are appropriated from 
the water recreation account in the 
natural resources fund for watercraft 
titling.  
 $42,000 the first year and $52,000 the 
second year are appropriated from the 
game and fish fund for hunting license 
administration.  
Subd. 12.  Wetland Administration       (180,000)      (350,000)
These reductions are from the 
appropriation in Laws 1991, chapter 
354, article 11, section 1, subdivision 
2, paragraph (b).  These are one-time 
reductions and must not be considered 
reductions in the department of natural 
resources' base budget for the 
1994-1995 biennium. 
Subd. 13.  Miscellaneous
 The commissioners of transportation and 
natural resources shall confer and make 
every reasonable effort to obtain a 
permanent resolution of the problem of 
excessive sedimentation and vegetation 
in the Mississippi river resulting from 
the construction of a bridge over the 
river on marked trunk highway No. 10 
near the city of Little Falls. 
 If the commissioners of transportation 
and natural resources are unable to 
reach a mutually agreeable resolution 
by February 1, 1993, the commissioner 
of natural resources shall file with 
the commissioner of transportation, the 
chair of the house committee on 
appropriations, and the senate 
committee on finance, a notification 
that specifies the project or projects 
that in the judgment of the 
commissioner of natural resources must 
be undertaken to achieve a permanent 
resolution of the excessive 
sedimentation and vegetation.  The 
notification must contain an estimate 
of the total cost of the project or 
projects.  
As part of the budget process for the 
1994-1995 biennium, the department of 
natural resources shall meet and confer 
to develop a plan in cooperation with 
representatives of employee bargaining 
units for the consolidation, 
enhancement, and realignment of 
division, region, and area 
responsibilities.  The plan must 
specify how DNR direct services are 
increased and management and 
supervisory positions minimized.  The 
department is not precluded from taking 
actions, after meeting and conferring 
with representatives of employee 
bargaining units, before submission of 
the 1994-1995 biennial budget.  A 
report with specific recommendations 
shall be submitted to the environment 
and natural resources division of the 
house appropriations committee and to 
the environment and natural resources 
division of the senate finance 
committee by January 15, 1993. 
Sec. 6.  AGRICULTURE                                            
Subdivision 1.  Total       
Appropriation Change                    (357,000)       100,000 
              Summary by Fund
General                (357,000)      (49,000)
Environmental                         149,000
The amounts in subdivision 1 are to be 
distributed among agency programs as 
specified in the following subdivisions.
Subd. 2.  Protection Service            (240,000)       (42,000)
              Summary by Fund
General                (240,000)     (191,000)
Environmental                         149,000
 $149,000 the second year is from the 
environmental response, compensation, 
and compliance account in the 
environmental fund.  The approved 
complement in the environmental fund is 
increased by two positions effective 
July 1, 1992.  
Subd. 3.  Promotion and Marketing        (36,000)       (55,000)
 $50,000 shall be spent in fiscal year 
1993 for the WIC Coupon program in the 
Minnesota Grown budget activity. 
Subd. 4.  Family Farm Services           (67,000)        10,000
 $2,200,000 from the balance in the 
special account created in Minnesota 
Statutes, section 41.61, shall be 
transferred to the general fund by June 
30, 1992. 
Authority to charge fees for farm 
crisis assistance services authorized 
elsewhere in this legislation is 
expected to increase nondedicated 
general fund revenues by $100,000 in 
fiscal year 1993. 
 $200,000 is appropriated in fiscal year 
1993 for transfer to the Minnesota 
extension service for farmer-lender 
mediation services.  This is a one-time 
appropriation and is not part of the 
department's base budget for the 
1994-1995 biennium. 
 Amounts available for agricultural 
information centers must be divided 
equally between the centers in Thief 
River Falls and St. Charles. 
Subd. 5.  Administrative    
Support and Grants                       (14,000)       187,000
 The appropriation in fiscal year 1993 
must provide $50,000 to the 
commissioner of agriculture for legal 
challenges to discriminatory aspects of 
the current federal milk market order 
system.  This amount, in whole or in 
part, may be used at the discretion of 
the commissioner as a contribution to 
the costs of initiating or continuing 
court challenges in cooperation with 
Minnesota or regional dairy 
organizations.  The commissioner may 
use up to an additional $50,000 from 
the dairy industry unfair trade 
practices account established under 
Minnesota Statutes, section 32A.05, 
subdivision 4.  
$150,000 the second year is for the 
commissioner of agriculture to conduct, 
in consultation with the commissioners 
of transportation, public service, and 
the pollution control agency, a public 
outreach and training program to 
educate the public, automobile 
mechanics, and representatives of the 
gasoline distribution network about the 
oxygenated gasoline program.  This is a 
one-time appropriation and is not part 
of the department's base budget for the 
1994-1995 biennium. 
Sec. 7.  CITIZENS COUNCIL ON
VOYAGEURS NATIONAL PARK                  (10,000)        (8,000)
Unencumbered balances remaining at the 
end of the first year do not cancel but 
are available for the second year. 
 The council must retain its 
headquarters in International Falls. 
Sec. 8.  SCIENCE MUSEUM OF  
MINNESOTA                                (30,000)       (30,000)
Sec. 9.  MINNESOTA RESOURCES                                   
 The following amounts are appropriated 
from the Minnesota future resources 
fund.  The appropriations are available 
immediately following enactment and are 
otherwise subject to the provisions of 
Laws 1991, chapter 254, article 1, 
section 14. 
Upper Mississippi River 
Environmental Education Center           600,000
 This appropriation is to the 
commissioner of natural resources for a 
grant to the city of Winona to develop 
detailed architectural designs 
necessary to obtain federal 
construction funding for an Upper 
Mississippi River Environmental 
Education Center.  This appropriation 
is contingent upon federal commitment 
of at least $6,000,000 for construction 
and for future operation and 
maintenance.  The deadline for the 
contingent match commitment is January 
1, 1993. 
Biological Control of Eurasian
Water Milfoil                            160,000
This appropriation is to the 
commissioner of natural resources for a 
research program leading to biological 
control of Eurasian water milfoil. 
 As cash flow in the Minnesota future 
resources fund permits, but no later 
than June 30, 1993, the commissioner of 
finance, in consultation with the 
director of the legislative commission 
on Minnesota resources, shall transfer 
$876,000 from the unencumbered balance 
in the fund to the general fund.  This 
transfer is in addition to the transfer 
specified in Laws 1991, chapter 254, 
article 1, section 14, subdivision 15. 
Sec. 10.  BOARD OF WATER AND 
SOIL RESOURCES                        (1,100,000)       200,000
$100,000 of this appropriation is for 
grants to the Minnesota association of 
soil and water conservation districts 
for education and training of local 
government officials relating to the 
implementation of Laws 1991, chapter 
354. 
$100,000 is for grants to counties for 
local administration and enforcement of 
Laws 1991, chapter 354. 
$1,100,000 appropriated in Laws 1991, 
chapter 354, article 11, section 1, 
subdivision 2, paragraph (a), clause 
(3), is canceled. 
Sec. 11.  BOARD OF ANIMAL HEALTH                         10,000
 This appropriation is to cover the cost 
of testing turkeys and chickens in 
Minnesota for avian influenza.  
    Sec. 12.  Minnesota Statutes 1990, section 17.03, is 
amended by adding a subdivision to read: 
    Subd. 9.  [FARM CRISIS ASSISTANCE FEES; LIABILITY.] (a) The 
department may charge a fee for farm crisis assistance services 
it provides to persons outside of the department.  
    (b) The state is not liable for the actions of persons 
under contract with the department who provide farm crisis 
assistance services as part of their contractual duties.  
Persons who provide farm crisis assistance are not subject to 
liability for their actions that are within the scope of their 
contract.  The immunity from liability in this subdivision is in 
addition to and not a limitation of immunity otherwise accorded 
to the state and its contractors under law.  
    (c) Fees collected by the department under this subdivision 
must be deposited in the general fund. 
    Sec. 13.  Minnesota Statutes 1990, section 17.03, is 
amended by adding a subdivision to read: 
    Subd. 10.  [GIFTS; PUBLICATION FEES; ADVERTISING; 
APPROPRIATION.] (a) The commissioner may accept for and on 
behalf of the state any gift, bequest, devise, grant, or 
interest in money or personal property of any kind tendered to 
the state for any purpose pertaining to the activities of the 
department of agriculture or any of its divisions. 
    (b) The commissioner may charge a fee for reports, 
publications, or other promotional or informational material 
produced by the department of agriculture.  The commissioner may 
solicit and accept advertising revenue for any departmental 
publications or promotional materials. 
    (c) The fees collected by the commissioner under this 
section are to recover all or part of the costs of providing 
services for which the fees are paid.  These fees are not 
subject to chapter 14 or sections 16A.128 and 16A.1281. 
    (d) Money received by the commissioner for these activities 
may be credited to one or more special accounts in the state 
treasury.  Money in those special accounts is annually 
appropriated to the commissioner to provide the services for 
which the money was received. 
    Sec. 14.  Minnesota Statutes 1991 Supplement, section 
17.63, is amended to read: 
    17.63 [REFUND OF FEES.] 
    (a) Any producer, except a producer of potatoes in area 
number one, as listed in section 17.54, subdivision 9, or a 
producer of paddy wild rice, may, by the use of forms to be 
provided by the commissioner and upon presentation of such proof 
as the commissioner requires, have the checkoff fee paid 
pursuant to sections 17.51 to 17.69 fully or partially refunded, 
provided the checkoff fee was remitted on a timely basis.  The 
request for refund must be received in the office of the 
commissioner within the time specified in the promotion order 
following the payment of the checkoff fee.  In no event shall 
these requests for refund be accepted more often than 12 times 
per year.  Refund shall be made by the commissioner and council 
within 30 days of the request for refund provided that the 
checkoff fee sought to be refunded has been received.  Rules 
governing the refund of checkoff fees for all commodities shall 
be formulated by the commissioner, shall be fully outlined in 
the promotion order, and shall be available for the information 
of all producers concerned with the referendum. 
    (b) The commissioner must allow partial refund requests 
from corn producers who have checked off and must allow for 
assignment of payment to the Minnesota corn growers association 
if the Minnesota corn research and promotion council requests 
such action by the commissioner.  
    (c) The Minnesota corn research and promotion council shall 
not elect to impose membership on any individual producer not 
requesting a partial refund or assignment of payment to the 
association. 
    Sec. 15.  Minnesota Statutes 1990, section 18B.26, 
subdivision 3, is amended to read: 
    Subd. 3.  [APPLICATION FEE.] (a) A registrant shall pay an 
annual application fee for each pesticide to be registered, and 
this fee is set at one-tenth of one percent for calendar year 
1990 and, at one-fifth of one percent for calendar year 1991, 
and at two-fifths of one percent for calendar year 1992 and 
thereafter of annual gross sales within the state and annual 
gross sales of pesticides used in the state, with a minimum 
nonrefundable fee of $150 plus an additional one-tenth of one 
percent for each pesticide for which the United States 
Environmental Protection Agency, Office of Water, has published 
a Health Advisory Summary by December 1 of the previous 
year $250.  The registrant shall determine when and which 
pesticides are sold or used in this state.  The registrant shall 
secure sufficient sales information of pesticides distributed 
into this state from distributors and dealers, regardless of 
distributor location, to make a determination.  Sales of 
pesticides in this state and sales of pesticides for use in this 
state by out-of-state distributors are not exempt and must be 
included in the registrant's annual report, as required under 
paragraph (c), and fees shall be paid by the registrant based 
upon those reported sales.  Sales of pesticides in the state for 
use outside of the state are exempt from the application fee in 
this paragraph if the registrant properly documents the sale 
location and distributors.  A registrant paying more than the 
minimum fee shall pay the balance due by March 1 based on the 
gross sales of the pesticide by the registrant for the preceding 
calendar year.  The fee for disinfectants and sanitizers is $150 
shall be the minimum.  The minimum fee is due by December 31 
preceding the year for which the application for registration is 
made.  Of the amount collected after calendar year 
1990, $600,000 at least $500,000 per fiscal year must be 
credited to the waste pesticide account under section 18B.065, 
subdivision 5, and the additional amount collected for 
pesticides with Health Advisory Summaries and $100,000 per 
fiscal year shall be credited to the agricultural project 
utilization account under section 116O.13 to be used for 
pesticide use reduction grants by the agricultural utilization 
research institute. 
    (b) An additional fee of $100 must be paid by the applicant 
for each pesticide to be registered if the application is a 
renewal application that is submitted after December 31. 
    (c) A registrant must annually report to the commissioner 
the amount and type of each registered pesticide sold, offered 
for sale, or otherwise distributed in the state.  The report 
shall be filed by March 1 for the previous year's registration.  
The commissioner shall specify the form of the report and 
require additional information deemed necessary to determine the 
amount and type of pesticides annually distributed in the 
state.  The information required shall include the brand name, 
amount, and formulation of each pesticide sold, offered for 
sale, or otherwise distributed in the state, but the information 
collected, if made public, shall be reported in a manner which 
does not identify a specific brand name in the report. 
    Sec. 16.  [INCREASE IN PESTICIDE REGISTRATION FEES.] 
    A registrant may not charge a customer for the increase in 
fees under section 15 for sales made before the effective date 
of that section. 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
28A.08, is amended to read: 
    28A.08 [LICENSE FEES; PENALTIES.] 
    License fees, penalties for late renewal of licenses, and 
penalties for not obtaining a license before conducting business 
in food handling that are set in this section apply to the 
sections named except as provided under section 28A.09.  Except 
as specified herein, bonds and assessments based on number of 
units operated or volume handled or processed which are provided 
for in said laws shall not be affected, nor shall any penalties 
for late payment of said assessments, nor shall inspection fees, 
be affected by this chapter.  The penalties may be waived by the 
commissioner. 
                                                  Penalties 
Type of food handler                    License  Late     No
                                        Fee      Renewal  License
1.   Retail food handler
     (a) Having gross sales of only
     prepackaged nonperishable food
     of less than $15,000 for 
     the immediately previous 
     license or fiscal year and 
     filing a statement with the 
     commissioner                       $ 40     $ 15     $ 25
     (b) Having under $15,000 gross
     sales including food preparation 
     or having $15,000 to $50,000 
     gross sales for the immediately 
     previous license or fiscal year    $ 55     $ 15     $ 25
     (c) Having $50,000 to $250,000 
     gross sales for the immediately                          
     previous license or fiscal year    $105     $ 35     $ 75
     (d) Having $250,000 to 
     $1,000,000 gross sales for the 
     immediately previous license or 
     fiscal year                        $180     $ 50     $100
     (e) Having $1,000,000 to 
     $5,000,000 gross sales for the 
     immediately previous license or 
     fiscal year                        $500     $100     $175
     (f) Having $5,000,000 to
     $10,000,000 gross sales for the
     immediately previous license or
     fiscal year                        $700     $150     $300
     (g) Having over $10,000,000
     gross sales for the immediately
     previous license or fiscal year    $800     $200     $350
2.   Wholesale food handler
     (a) Having gross sales or
     service of less than $250,000
     for the immediately previous 
     license or fiscal year             $200     $ 50      $100
     (b) Having $250,000 to
     $1,000,000 gross sales or
     service for the immediately 
     previous license or fiscal year    $400     $100      $200
     (c) Having $1,000,000
     to $5,000,000 gross sales or
     service for the immediately 
     previous license or fiscal year    $500     $125      $250
     (d) Having over $5,000,000
     gross sales for the immediately
     previous license or fiscal year    $575     $150      $300
3.   Food broker                        $100     $ 30      $ 50
4.   Wholesale food processor
     or manufacturer 
     (a) Having gross sales of less 
     than $250,000 for the immediately
     previous license or fiscal year    $275     $ 75      $150
     (b) Having $250,000 to $1,000,000 
     gross sales for the immediately 
     previous license or fiscal year    $400     $100      $200
     (c) Having $1,000,000 to
     $5,000,000 gross sales for the 
     immediately previous license or 
     fiscal year                        $500     $125      $250
     (d) Having over $5,000,000
     gross sales for the immediately
     previous license or fiscal year    $575     $150      $300
5.   Wholesale food processor of
     meat or poultry products
     under supervision of the
     U. S. Department of Agriculture 
     (a) Having gross sales of less 
     than $250,000 for the immediately 
     previous license or fiscal year    $150     $ 50      $ 75
     (b) Having $250,000 to $1,000,000 
     gross sales for the immediately
     previous license or fiscal year    $225     $ 75      $125
     (c) Having $1,000,000 to
     $5,000,000 gross sales for the
     immediately previous license or 
     fiscal year                        $275     $ 75      $150
     (d) Having over $5,000,000
     gross sales for the immediately
     previous license or fiscal year    $325     $100      $175
6.   Wholesale food manufacturer
     having the permission of the
     commissioner to use the name
     Minnesota farmstead cheese         $ 30     $ 10      $ 15
7.   Nonresident frozen dairy 
     manufacturer                       $200     $ 50      $ 75
8.   Wholesale food manufacturer
     processing less than 70,000
     pounds per year of cultured
     dairy food as defined in section
     32.486, subdivision 1,
     paragraph (b)                      $ 30     $ 10      $ 15
9.   A milk marketing organization
     without facilities for processing
     or manufacturing that
     purchases milk from milk
     producers for delivery to a
     licensed wholesale food processor
     or manufacturer                    $ 50     $ 15      $ 25
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
41A.09, subdivision 3, is amended to read: 
    Subd. 3.  [PAYMENTS FROM ACCOUNT.] The commissioner of 
revenue shall make cash payments from the account to producers 
of ethanol or wet alcohol located in the state.  These payments 
shall apply only to ethanol or wet alcohol fermented in the 
state.  The amount of the payment for each producer's annual 
production shall be as follows: 
    (a) For each gallon of ethanol produced on or before June 
30, 2000, 20 cents per gallon. 
    (b) For each gallon produced of wet alcohol on or before 
June 30, 2000, a payment in cents per gallon calculated by the 
formula "alcohol purity in percent divided by five," and rounded 
to the nearest cent per gallon, but not less than 11 cents per 
gallon.  The producer payment for wet alcohol under this section 
may be paid to either the original producer of wet alcohol or 
the secondary processor, at the option of the original producer, 
but not to both. 
    (c) The total payments from the account to all producers 
during the period beginning July 1, 1991 and ending June 30, 
1993 may not exceed $9,000,000 $8,550,000.  This amount may be 
paid in either fiscal year of the biennium.  Total payments from 
the account to any producer in each fiscal year may not exceed 
$3,000,000. 
    (d) The total payments from the account to all producers 
may not exceed $10,000,000 in any fiscal year during the period 
beginning July 1, 1993, and ending June 30, 2000.  Total 
payments from the account to any producer in any fiscal year may 
not exceed $3,000,000. 
     By the last day of October, January, April, and July, each 
producer shall file a claim for payment for production during 
the preceding three calendar months.  The volume of production 
must be verified by a certified financial audit performed by an 
independent certified public accountant using generally accepted 
accounting procedures. 
     Payments shall be made November 15, February 15, May 15, 
and August 15.  
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
84.0855, is amended to read: 
    84.0855 [SPECIAL RECEIPTS; APPROPRIATION.] 
    Money received by the commissioner of natural resources as 
fees for seminars or workshops, from the sale of publications 
and maps, from the sale of other natural resource related 
merchandise at the state fair, or to buy supplies for the use of 
volunteers, may be credited to one or more special accounts in 
the state treasury and is appropriated to the commissioner for 
the purposes for which the money was received.  Money received 
from sales at the state fair shall be available for state fair 
related costs.  
    Sec. 20.  [84.0887] [YOUTH PROGRAMS.] 
    Subdivision 1.  [PROGRAM CONTENT.] The commissioner shall 
operate youth corps programs which may include summer youth 
programs and year-round young adult programs.  The commissioner 
shall insure that youths in all parts of the state have an equal 
opportunity for employment and that equal numbers of male and 
female youth are selected for the summer programs.  Youth corps 
members must be 15 to 18 years old and young adult corps members 
must be 18 to 26 years old.  Corps members are not public 
employees under chapter 43A or 179A.  Youth corps programs may 
provide services that include but are not limited to the 
following: 
    (1) conservation, rehabilitation, and the improvement of 
wildlife habitat, prairie, parks, and recreational areas; 
    (2) urban and rural revitalization, historical and cultural 
site preservation, and reforestation of both urban and rural 
areas; 
    (3) fish culture, wildlife habitat maintenance and 
improvement, and other fishery assistance; 
    (4) road and trail development, maintenance, and 
improvement; 
    (5) erosion, flood, drought, and storm damage assistance 
and controls; 
    (6) stream, lake, waterfront harbor, and port improvement; 
    (7) wetlands protection and pollution control; 
    (8) insect, disease, rodent, and fire prevention and 
control; 
    (9) the improvement of abandoned railroad beds and 
rights-of-way; 
    (10) energy conservation projects, renewable resource 
enhancement, and recovery of biomass; 
    (11) reclamation and improvement of strip-mined land; and 
    (12) forestry, nursery, and cultural operations. 
    Subd. 2.  [ADDITIONAL SERVICES.] In addition to services 
under subdivision 1, youth corps programs may coordinate with or 
provide services to: 
    (1) making public facilities accessible to individuals with 
disabilities; 
    (2) federal, state, local, and regional governmental 
agencies; 
    (3) nursing homes, hospices, senior centers, hospitals, 
local libraries, parks, recreational facilities, child and adult 
day care centers, programs servicing individuals with 
disabilities, and schools; 
    (4) law enforcement agencies, and penal and probation 
systems; 
    (5) private nonprofit organizations that primarily focus on 
social service such as community action agencies; 
    (6) activities that focus on the rehabilitation or 
improvement of public facilities, neighborhood improvements, 
literacy training that benefits educationally disadvantaged 
individuals, weatherization of and basic repairs to low-income 
housing including housing occupied by older adults, activities 
that focus on drug and alcohol abuse education, prevention, and 
treatment; and 
    (7) any other nonpartisan civic activities and services 
that the commissioner determines to be of a substantial social 
benefit in meeting unmet human, educational, or environmental 
needs, particularly needs related to poverty, or in the 
community where volunteer service is to be performed. 
    Subd. 3.  [INELIGIBLE SERVICES.] Ineligible service 
categories include: 
    (1) business organized for profit; 
    (2) labor unions; 
    (3) partisan political organizations; 
    (4) organizations engaged in religious activities, unless 
such activities do not involve the use of funds provided under 
this title by program participants and program staff to give 
religious instruction, conduct worship services, or engage in 
any form of proselytization; or 
    (5) domestic or personal service companies or organizations.
    Subd. 4.  [ADVISORY COMMITTEE.] The commissioner shall 
establish a youth corps advisory committee with broad state 
representation including youth. 
    Subd. 5.  [OLDER MEMBERS.] Youth corps programs may enroll 
a limited number of special corps members over age 26 so that 
the corps may draw on their unique knowledge, skills, or 
abilities to fulfill the purposes of the programs. 
    Subd. 6.  [EXPENDITURES FROM SPECIAL FUNDS.] An 
appropriation from a special revenue fund or account to the 
commissioner for youth corps programs must be spent for projects 
that are consistent with the purposes of the fund or account 
from which the appropriation was made. 
    Sec. 21.  [84.525] [MAINTENANCE OF CAMPSITES IN THE BWCA.] 
    All reservation fees paid to the state attributable to 
state-owned lands within the boundary waters canoe area must be 
credited to an account in the special revenue fund and are 
appropriated to the commissioner of natural resources for 
maintenance of state-owned campsites within the boundary waters 
canoe area.  The commissioner may enter into cooperative 
agreements with the federal government for maintenance of the 
campsites. 
    Sec. 22.  Minnesota Statutes 1990, section 85A.04, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEPOSIT.] All receipts from parking and 
admission to the Minnesota zoological garden shall be deposited 
in the state treasury and credited to an account in the 
general special revenue fund, and are annually appropriated to 
the board for operations and maintenance. 
    Sec. 23.  Minnesota Statutes 1990, section 89.035, is 
amended to read: 
    89.035 [INCOME FROM STATE FOREST LANDS, DISPOSITION.] 
    All income which may be received from lands acquired by the 
state heretofore or hereafter for state forest purposes by gift, 
purchase or eminent domain and tax-forfeited lands to which the 
county has relinquished its equity to the state for state forest 
purposes shall be paid into the state treasury and credited to 
the state forest account general fund except where the 
conveyance to and acceptance by the state of lands for state 
forest purposes provides for other disposition of receipts.  
    Sec. 24.  Minnesota Statutes 1991 Supplement, section 
89.37, subdivision 4, is amended to read: 
    Subd. 4.  [PROCEEDS OF SALE.] All moneys received in 
payment for tree planting stock supplied under this section 
shall be deposited in the state treasury and credited to the 
state a forest nursery account pursuant to section 89.035 and 
are available to the commissioner of natural resources for the 
purposes of sections 89.35 to 89.37. 
    Sec. 25.  Minnesota Statutes 1990, section 89.37, is 
amended by adding a subdivision to read: 
    Subd. 5.  [INVESTMENT INCOME.] Income earned from the 
investment of funds in the forest nursery account beginning July 
1, 1989, shall be credited to the account and are annually 
appropriated to the commissioner of natural resources for the 
purposes of sections 89.35 to 89.37. 
     Sec. 26.  [115B.42] [LANDFILL CLEANUP ACCOUNT.] 
    Subdivision 1.  [ESTABLISHMENT.] The landfill cleanup 
account is established in the environmental fund in the state 
treasury.  The account consists of money credited to the account 
and interest earned on the money in the account. 
    Subd. 2.  [EXPENDITURES.] Subject to appropriation, money 
in the account may be spent for inspection of mixed municipal 
solid waste disposal facilities to: 
    (1) evaluate the adequacy of final cover, slopes, 
vegetation, and erosion control; 
    (2) determine the presence and concentration of hazardous 
substances, pollutants or contaminants, and decomposition gases; 
and 
    (3) determine the boundaries of fill areas. 
    Sec. 27.  Minnesota Statutes 1990, section 116P.11, is 
amended to read: 
    116P.11 [AVAILABILITY OF FUNDS FOR DISBURSEMENT.] 
    (a) The amount biennially available from the trust fund for 
the budget plan developed by the commission consists of the 
interest earnings generated from the trust fund. 
    (b) For funding projects through fiscal year 1997, the 
following additional amounts are available from the trust fund 
for the budget plans developed by the commission:  
    (1) for the 1991-1993 biennium, up to 25 percent of the 
revenue deposited in the trust fund in fiscal years 1990 and 
1991; 
    (2) for the 1993-1995 biennium, up to 20 percent of the 
revenue deposited in the trust fund in fiscal year 1992 and up 
to 15 percent of the revenue deposited in the fund in fiscal 
year 1993; and 
    (3) for the 1993-1995 biennium, up to 25 percent of the 
revenue deposited in the trust fund in fiscal years 1994 and 
1995, to be expended only for capital investments in parks and 
trails; and 
    (4) for the 1995-1997 biennium, up to ten percent of the 
revenue deposited in the fund in fiscal year 1994 and up to five 
percent of the revenue deposited in the fund in fiscal year 1995 
1996. 
    (c) Any appropriated funds not encumbered in the biennium 
in which they are appropriated cancel and must be credited to 
the principal of the trust fund. 
    Sec. 28.  Laws 1991, chapter 254, article 1, section 7, 
subdivision 5, is amended to read: 
Subd. 5.  Administrative Support 
and Grants 
     5,688,000      5,533,000
              Summary by Fund
General               5,503,000     5,348,000
Special Revenue         185,000       185,000
 $185,000 the first year and $185,000 
the second year are from the 
commodities research and promotion 
account in the special revenue fund. 
 $80,000 the first year and $80,000 the 
second year are for grants to farmers 
for demonstration projects involving 
sustainable agriculture.  If a project 
cost is more than $25,000, the amount 
above $25,000 must be cost-shared at a 
state-applicant ratio of one to one.  
Priorities must be given for projects 
involving multiple parties.  Up to 
$20,000 each year may be used for 
dissemination of information about the 
demonstration grant projects.  If the 
appropriation for either year is 
insufficient, the appropriation for the 
other is available. 
 The unexpended balance appropriated for 
grants to farmers for demonstration 
projects involving sustainable 
agriculture in Laws 1989, chapter 269, 
section 7, subdivision 5, does not 
cancel and is reappropriated to the 
commissioner and added to other 
appropriations for the biennium ending 
June 30, 1993, to carry out such 
demonstrations to be used in either 
year of the biennium. 
 $70,000 the first year and $70,000 the 
second year are for the Northern Crops 
Institute.  These appropriations may be 
spent to purchase equipment and are 
available until spent.  
 $40,000 the first year and $40,000 the 
second year are for payment of claims 
relating to livestock damaged by 
endangered animal species.  If the 
appropriation for either year is 
insufficient, the appropriation for the 
other year is available for it. 
 $80,000 the first year and $80,000 the 
second year are for the seaway port 
authority of Duluth. 
 $10,000 the first year is for payment 
of claims relating to agricultural 
crops damaged by elk and is available 
until June 30, 1993. 
 $19,000 the first year and $19,000 the 
second year is for a grant to the 
Minnesota livestock breeder's 
association. 
 $100,000 the first year and $100,000 
the second year are for a base 
adjustment to grants to the state 
agricultural society to be spent as 
grants to county agricultural societies 
for premiums for county fair 
competitions in arts and crafts.  This 
appropriation must be included in the 
1994-1995 biennial budget base. 
 $160,000 the first year is for farm 
safety programs.  $120,000 is for 
payment to instructors in a youth farm 
safety program and $40,000 is for a 
farm safety audit pilot project.  This 
appropriation is available for either 
year of the biennium.  If any amount of 
the appropriation for either program 
remains unencumbered on September 1, 
1992, it becomes available for the 
other program or for other farm safety 
projects and programs at the discretion 
of the commissioner. 
    Sec. 29.  [CHECKOFF FEE REFUND TRANSFER POLICY; REPORT.] 
    Not later than August 1, 1992, the commissioner of 
agriculture shall appoint a task force to review the issue of 
direct transfer of commodity checkoff fee refunds to commodity 
associations and/or farm organizations.  The task force must 
include representatives of farm organizations, research and 
promotion councils, commodity associations, and commodity 
producers.  Not later than February 1, 1993, the commissioner 
shall report to the legislature on the findings and 
recommendations of the task force. 
    Sec. 30.  [SOLID WASTE FEES.] 
    Subdivision 1.  [METROPOLITAN AREA LANDFILLS.] (a) The 
proceeds of fees paid from July 1, 1992 to June 30, 1993, under 
Minnesota Statutes, section 473.843, including interest and 
penalties, must be deposited as follows: 
    (1) three-fourths of the proceeds must be deposited in the 
metropolitan landfill abatement account established in Minnesota 
Statutes, section 473.844; 
    (2) an amount equal or equivalent to 20 cents per cubic 
yard of waste subject to the fees must be deposited as provided 
in subdivision 4; and 
    (3) the remainder of the proceeds must be deposited in the 
metropolitan landfill contingency action trust fund established 
in Minnesota Statutes, section 473.845. 
    (b) The amount of the fee in Minnesota Statutes, section 
473.843, subdivision 1, must be reduced by 20 cents per cubic 
yard, or the equivalent, and paragraph (a), clause (2), does not 
apply, for waste for which the fee in subdivision 3 has been 
paid. 
    Subd. 2.  [NONMETROPOLITAN AREA LANDFILLS.] (a) From July 
1, 1992 to June 30, 1993, a county, statutory or home rule 
charter city, or sanitary district that receives fees under 
Minnesota Statutes, section 115A.923, may impose a surcharge of 
up to 20 cents per cubic yard, or the equivalent, of solid waste 
subject to the fees. 
    (b) From July 1, 1992 to June 30, 1993, a county, statutory 
or home rule charter city, or sanitary district that receives 
fees under Minnesota Statutes, section 115A.923, shall remit to 
the commissioner of revenue an amount equal or equivalent to 20 
cents per cubic yard of solid waste that is subject to the fees 
and on which the fee in subdivision 3 has not been paid.  The 
remittance must be made on or before the 20th day of each month 
for fees received the previous month, using a form provided by 
the commissioner. 
    (c) The amount of the fee in Minnesota Statutes, section 
115A.923, subdivision 1, must be reduced by 20 cents per cubic 
yard, or the equivalent, for waste for which the fee in 
subdivision 3 has been paid. 
    Subd. 3.  [OTHER FACILITIES.] (a) Except as provided in 
paragraph (b), the operator of a mixed municipal solid waste 
processing facility that is permitted by the pollution control 
agency shall pay a fee in an amount equal or equivalent to 20 
cents per cubic yard of solid waste accepted for processing at 
the facility from July 1, 1992 to June 30, 1993. 
    (b) The fee does not apply to: 
    (1) waste that has previously been accepted at another 
mixed municipal solid waste processing facility; or 
    (2) waste residue from a recycling facility at which 
recyclable materials are separated or processed for the purposes 
of recycling, if there is at least an 85 percent volume 
reduction in the solid waste processed at the facility. 
To qualify for exemption under this clause, the waste residue 
must be brought separately to the processing facility in 
paragraph (a).  The commissioner of revenue, with the advice and 
assistance of the metropolitan council, the director of the 
office of waste management, and the commissioner of the 
pollution control agency, shall prescribe procedures for 
determining the amount of waste residue qualifying for exemption 
under this clause. 
    (c) The fee must be remitted to the commissioner of revenue 
on or before the 20th day of each month for waste accepted at 
the facility during the previous month, using a form provided by 
the commissioner. 
    Subd. 4.  [DISPOSITION OF PROCEEDS.] Of the amounts 
specified in subdivisions 1, clause (2); 2, paragraph (b); and 3:
    (1) $360,000 must be deposited in the environmental fund 
for appropriations made under Laws 1991, chapter 254, article 1, 
section 2, subdivision 4; and 
    (2) the remainder must be credited to the landfill cleanup 
account established in Minnesota Statutes, section 115B.42. 
The amount in clause (1) includes indirect costs.  
    Sec. 31.  Minnesota Statutes 1990, section 115D.04, 
subdivision 2, is amended to read: 
    Subd. 2.  [ASSISTANCE.] The pollution prevention assistance 
program must include at least the following: 
    (1) a program to assemble, catalog, and disseminate 
information on pollution prevention; 
    (2) a program to provide technical research and assistance, 
including on-site consultations to identify alternative methods 
that may be applied to prevent pollution and to provide 
assistance for planning under section 115D.07, excluding design 
engineering services; and 
    (3) outreach programs including seminars, workshops, 
training programs, and other similar activities designed to 
provide pollution prevention information and assistance to 
eligible recipients and other interested persons. 
    Sec. 32.  [REPEALER.] 
     (a) Minnesota Statutes 1990, section 84.0885, is repealed. 
    (b) Minnesota Statutes 1990, section 89.036, is repealed. 
    Sec. 33.  [EFFECTIVE DATES.] 
    This article is effective the day following final 
enactment, except that sections 4 and 22 are effective July 1, 
1992, and sections 23 and 32, paragraph (b), are effective July 
15, 1992. 

                               ARTICLE 3 

                     INFRASTRUCTURE AND REGULATION 
Section 1.  [TRANSPORTATION AND OTHER AGENCIES; APPROPRIATIONS.] 
    Unless otherwise indicated, all sums set forth in the 
columns designated "1992 and 1993 APPROPRIATION CHANGE" are to 
be added to or reduced from general fund appropriations made by 
Laws 1991, chapter 233, or another named law, for the fiscal 
years ending June 30, 1992, and June 30, 1993, respectively.  
Amounts to be reduced are designated by parentheses. 

                             SUMMARY BY FUND
                          1992          1993           TOTAL
APPROPRIATION
CHANGE             $   (1,112,000)$   (3,820,000)$   (4,932,000)
GENERAL FUND       $   (3,112,000)$  (11,255,000)$  (14,367,000)
TRUNK HIGHWAY 
FUND               $    2,000,000 $              $    2,000,000
WORKERS'
COMPENSATION       $              $    3,274,000 $    3,274,000
STATE AIRPORTS
FUND               $              $       10,000 $       10,000
SPECIAL REVENUE 
FUND               $              $    4,151,000 $    4,151,000
REVENUE CHANGE     $       49,000 $    8,961,000 $    9,010,000
GENERAL FUND       $       49,000 $    2,596,000 $    2,645,000
WORKERS'
COMPENSATION       $              $    2,214,000 $    2,214,000
SPECIAL REVENUE   
FUND               $              $    4,151,000 $    4,151,000
                                        APPROPRIATION CHANGE
                                          1992         1993 
Sec. 2.  TRANSPORTATION  
Subdivision 1.  Total 
Appropriation Changes                  2,000,000               
 The amounts in subdivision 1 are to be 
distributed among agency programs as 
specified in the following subdivisions.
Subd. 2.  State Road Construction 
      1992           1993
    (1,700,000)    (4,800,000) 
 This appropriation is from the trunk 
highway fund.  
Subd. 3.  Construction Engineering 
     1,700,000      4,800,000
 This appropriation is from the trunk 
highway fund.  
Subd. 4.  State Road Operations 
     2,000,000           
 This appropriation is from the trunk 
highway fund.  
 The commissioner of transportation 
shall hold at least one public hearing 
in each department of transportation 
construction district before December 
31, 1992.  At each hearing the 
commissioner or the commissioner's 
designees shall explain to persons 
attending the hearing the 
commissioner's most recent two-year 
highway improvement program and 
six-year highway improvement work 
program, including the process used to 
determine the final programs; the 
sources of funding available to finance 
the programs and any major expansions 
of the programs, including anticipated 
federal highway funds; and the status 
of the designation in Minnesota of 
highways to be included in the national 
highway system established under the 
federal Intermodal Surface 
Transportation Efficiency Act of 1991, 
and the process to be used in making 
these designations.  The commissioner 
shall receive public comment on these 
programs, processes, systems, and 
funding sources. 
 The commissioner of transportation 
shall establish an advisory board to 
advise the commissioner on designation 
in Minnesota of highways to be included 
in the national highway system 
established under the federal 
Intermodal Surface Transportation 
Efficiency Act of 1991.  The committee 
must be composed of citizens who have 
demonstrated an interest and 
involvement in the improvement of 
highways and other forms of surface 
transportation in Minnesota.  No more 
than 20 percent of the members may be 
highway engineers.  The advisory 
committee shall function from the date 
of the commissioner's appointments to 
it until November 30, 1993.  The 
commissioner shall not propose to the 
United States secretary of 
transportation any highways in 
Minnesota for inclusion in the national 
highway system, or take any other steps 
that would lead to such a designation, 
without first consulting with the 
advisory board. 
Subd. 5.  Aeronautics 
                       10,000
 This appropriation is from the state 
airports fund for the advisory council 
on metropolitan airports planning. 
Subd. 6.  Greater Minnesota 
Transit Assistance                                      440,000
 This appropriation is from the general 
fund.  
Sec. 3.  REGIONAL TRANSIT BOARD        1,500,000               
 This appropriation is for Metro 
Mobility, and is notwithstanding any 
restriction in Laws 1991, chapter 233, 
section 3.  Any unencumbered balance 
remaining in the first year does not 
cancel but is available for the second 
year of the biennium. 
Sec. 4.  PUBLIC SAFETY  
Subdivision 1.  Total
Appropriation Changes                 (1,420,000)      (998,000)
 The amounts in this subdivision are to 
be distributed among agency programs as 
specified in the following subdivisions.
Subd. 2.  Emergency Management 
        88,000         54,000
 Any unencumbered balance remaining in 
the first year does not cancel but is 
available for the second year.  
 This appropriation is to match federal 
funds for winter storm damage as 
provided in the Presidential Disaster 
Declaration awarded on December 26, 
1991.  
Subd. 3.  Emergency Management 
and Emergency Response Reduction 
      (173,000)       (45,000)
 The commissioner of public safety shall 
consolidate the emergency response 
commission with the division of 
emergency management into a single 
division known as the division of 
emergency management.  
Subd. 4.  Criminal Apprehension 
      (590,000)      (500,000)
Subd. 5.  Fire Marshal 
       (69,000)        (7,000)
Subd. 6.  Driver and Vehicle 
Services 
      (399,000)      (299,000)
 The appropriation in Laws 1991, chapter 
233, section 5, subdivision 8, for 
fiscal year 1992 for costs relating to 
collegiate plates for academic 
excellence scholarships is available 
for fiscal year 1993. 
Subd. 7.  Liquor Control 
       (40,000)       (70,000)
Subd. 8.  Drug Policy 
       (10,000)       (20,000)
Subd. 9.  Private Detective Board 
        (3,000)          
Subd. 10.  State Patrol
       (16,000)       (40,000)
Subd. 11.  Capitol Security
       (75,000)       
Subd. 12.  Gambling Enforcement
      (130,000)       
Subd. 13.  General Reductions 
        (3,000)       (71,000)
Sec. 5.  BOARD OF PEACE OFFICER
STANDARDS AND TRAINING      
Subdivision 1.  Total
Appropriation Changes                   (151,000)       669,000
              Summary by Fund
General Fund           (151,000)   (3,482,000)
Special Revenue Fund                4,151,000
This appropriation is from the peace 
officers training account in the 
special revenue fund. 
 Any funds deposited into the peace 
officer training account in the special 
revenue fund in fiscal year 1993 in 
excess of $4,151,000 must be 
transferred and credited to the general 
fund. 
Sec. 6.  COMMERCE 
Subdivision 1.  Registration
and Analysis                                            275,000
 This appropriation is for unclaimed 
property administrative expenses. 
 The approved general fund complement is 
increased by two positions effective 
July 1, 1992. 
Sec. 7.  NON-HEALTH-RELATED BOARDS  
Subdivision 1.  Total for this
section                                   59,000         88,000
Subd. 2.  Board of Accountancy            10,000         14,000
Subd. 3.  Board of Architecture,
Engineering, Land Surveying, and
Landscape Architecture                    49,000         74,000
Sec. 8.  PUBLIC SERVICE 
Subdivision 1.  Total
Appropriation Changes                    (87,000)       196,000
 The approved general fund complement is 
increased by five positions in the 
classified service, effective July 1, 
1992. 
 The amounts in subdivision 1 are to be 
distributed among agency programs as 
specified in the following subdivisions.
 Except for the weights and measures 
division, the department of public 
service shall maintain its offices in 
the same building in which the public 
utilities commission maintains its 
offices.  
Subd. 2.  Information and Operations
Management
       (15,000)       (15,000)
Subd. 3.  Energy
       (72,000)       (72,000)
Subd. 4.  Weights and Measures
                      283,000
 This appropriation is for gasoline 
octane and oxygenated fuels enforcement.
$111,000 of this appropriation is for 
the first-year cost of the purchase of 
equipment through lease-purchase with a 
term of five years or less. 
Sec. 9.  MINNESOTA HISTORICAL 
SOCIETY
Subdivision 1.  Total
Appropriation Changes                    (45,000)       (25,000)
Subd. 2.  General Reduction              (95,000)       (95,000)
 The reduction specified in this section 
can be taken in either year of the 
1992-1993 biennium. 
 This reduction shall not apply to the 
fiscal agent program.  
Subd. 3.  Greater Cloquet-
Moose Lake Forest Fire Center                            20,000
 The society shall spend this amount as 
a grant to the city of Cloquet to 
complete planning and design for 
development of the center. 
Subd. 4.  Statewide Outreach              50,000         50,000
 These appropriations are for historic 
site grants to encourage local historic 
preservation projects.  To be eligible 
for a grant, a county or local project 
group must provide a 50 percent match, 
in accordance with the historical 
society's guidelines.  Any unencumbered 
balance remaining in the first year 
does not cancel but is available for 
the second year.  
Sec. 10.  MINNESOTA HUMANITIES
COMMISSION                                              (10,000)
 The reduction specified in this section 
can be taken in either year of the 
1992-1993 biennium. 
Sec. 11.  BOARD OF THE ARTS  
Subdivision 1.  Total
Appropriation Changes                                   (55,000)
Subd. 2.  General Reduction                             (75,000)
 The reduction specified in this 
subdivision can be taken in either year 
of the 1992-1993 biennium.  
Subd. 3.  Kee Theatre                                    20,000
 The board shall spend this amount as a 
grant for the restoration of the Kee 
Theatre in Kiester.  It is the intent 
of the legislature that no further 
direct appropriation will be made for 
this purpose.  The board may not use 
any part of this sum for administrative 
expenses. 
Sec. 12.  MINNESOTA TECHNOLOGY, INC.  (3,361,000)    (4,490,000)
 (a) $3,000,000 of the appropriation 
reduction in fiscal year 1992 is to be 
replaced by money from the agency's 
fund balance.  The remainder of the 
reductions in fiscal year 1992 are 
expenditure reductions to be allocated 
by the agency's board among agency 
operations and grants. 
(b) Agricultural Utilization Research Institute      (1,000,000)
 The reduction of this grant is intended 
to be a one-time appropriation 
reduction and shall be reinstated in 
the base appropriation for the next 
biennium. 
(c) General Reduction                   (361,000)      (540,000)
(d) Minnesota High Technology
Corridor Corporation                                     50,000
 (e) The remainder of the reduction in 
fiscal year 1993 is intended as a 
one-time reduction and may be replaced 
by money from the agency's fund balance 
or the agency's seed capital account, 
or taken as reductions in agency 
operations expenditures, as determined 
by the agency's board.  
 (f) Grants to the organizations 
required to receive grants and funding 
by Laws 1991, chapter 233, section 21, 
subdivision 1, and Laws 1991, chapter 
322, section 18, other than grants to 
the agricultural utilization research 
institute, must not be reduced by more 
than 6.3 percent, and must not be 
included in the $3,000,000 reduction 
for the second year.  Grants to the 
agricultural utilization research 
institute may not be reduced by more 
than the amount specified in paragraph 
(b).  
 Sec. 13.  WORLD TRADE CENTER 
CORPORATION 
Subdivision 1.  Total Appropriation 
Changes                                        530,000      
Subd. 2.  General Reduction                    (50,000)
This reduction is from the money 
appropriated from the general fund for 
the regional international trade 
service center pilot project in Laws 
1991, chapter 348, section 2, paragraph 
(a). 
Subd. 3.  Privatization of corporation         580,000
(a) The commissioner of finance shall 
release all or part of this 
appropriation as provided in this 
subdivision.  Any portion of the 
appropriation not released reverts to 
the general fund. 
(b) The commissioner of finance shall 
release $220,000 of this appropriation 
on the day following final enactment of 
this act.  Of this amount (1) $120,000 
is for preservation of the assets of 
the corporation during the 90 days 
following the day following final 
enactment of this act, and (2) $100,000 
shall be used to conduct an analysis of 
the feasibility of privatizing (through 
merger, asset sale, or public offering) 
all or part of the corporation.  That 
analysis must include a full market 
value accounting study of the 
corporations's assets, liabilities, 
liens, and encumbrances.  Subject to 
the approval of the commissioner of 
administration, the World Trade Center 
Corporation board shall select an 
investment advisor to perform the 
privatization analysis required under 
clause (2).  
 The study must be delivered to the 
board and the commissioner of 
administration not later than 90 days 
after the release of funds under this 
paragraph. 
(c) Should the commissioner of 
administration determine that the study 
conducted under paragraph (b) shows a 
reasonable potential for the state to 
recover a significant proportion of its 
investment in the World Trade Center 
Corporation in a sale of all or part of 
the corporation, the commissioner of 
administration shall request the 
commissioner of finance to release an 
additional $240,000 of this 
appropriation.  The World Trade Center 
Corporation board shall utilize this 
amount during the 180 days following 
the expiration of the period described 
in paragraph (b) to prepare and execute 
a plan for accomplishing the 
privatization and to preserve the 
assets and goodwill of the corporation. 
(d) If the commissioner of 
administration determines the release 
of the remaining $120,000 of this 
appropriation is necessary during the 
90 days following the completion of the 
period described in paragraph (c) to 
preserve the assets and goodwill of the 
corporation and to facilitate the sale 
of all or part of the corporation, the 
commissioner of administration may 
request the commissioner of finance to 
release the remaining $120,000 of this 
appropriation.  
(e) This appropriation is available 
until expended. 
(f) Any money remaining in the World 
Trade Center Corporation account in the 
special revenue fund after sale of the 
assets or ownership of the corporation 
reverts to the general fund under 
Minnesota Statutes, section 44A.0311, 
as amended by this act. 
 (g) The proceeds of the sale must be 
applied in the following order:  
 (1) Any liabilities and obligations of 
the corporation must be paid, 
satisfied, or discharged or adequate 
provision must be made to do so; and 
 (2) Any remaining proceeds must be 
deposited in the general fund.  
Sec. 14.  LABOR AND INDUSTRY
Subdivision 1.  Total
Appropriation Changes                    (80,000)       385,000
              Summary by Fund
General                 (80,000)   (2,889,000)
Workers' Compensation               3,274,000
 The approved general fund complement is 
decreased by 62.5 positions and the 
approved workers' compensation fund 
complement is increased by 101.5 
positions effective July 1, 1992. 
 The amounts in subdivision 1 are to be 
distributed among agency programs as 
specified in the following subdivisions.
Subd. 2.  Workers' Compensation
Regulation and Enforcement
              Summary by Fund
General Fund                       (1,458,000)
Workers' Compensation               1,633,000
 The general fund reduction is from the 
money appropriated in Laws 1991, 
chapter 292, article 1, section 5, 
subdivision 1. 
The appropriation of $1,633,000 in the 
second year is for the Workers' 
Compensation Vocational Rehabilitation 
Unit which is funded from the workers' 
compensation fund effective July 1, 
1992. 
Subd. 3.  Workplace Regulation
and Enforcement
              Summary by Fund
General Fund            (40,000)   (1,431,000)
Workers' Compensation               1,641,000
 The appropriation of $1,641,000 in the 
second year is for the Occupational 
Safety and Health Act program which is 
funded from the workers' compensation 
fund effective July 1, 1992. 
Subd. 4.  General Support
General Fund            (40,000)       
Sec. 15.  SECRETARY OF STATE 
Subdivision 1.  General Reduction                      (248,000)
The reduction specified in this section 
can be taken in either year of the 
1992-1993 biennium. 
    Sec. 16.  Laws 1991, chapter 233, section 2, subdivision 2, 
is amended to read:  
Subd. 2.  Aeronautics                 15,814,000     15,562,000
 This appropriation is from the state 
airports fund.  
 The amounts that may be spent from this 
appropriation for each activity are as 
follows:  
(a) Airport Development and Assistance 
      1992           1993
    11,892,000     11,645,000
 $1,749,000 $1,834,000 the first year 
and $1,752,000 $1,837,000 the second 
year are for navigational aids.  
 $6,089,000 $7,200,000 the first year 
and $6,089,000 $7,200,000 the second 
year are for airport construction 
grants.  
 $1,773,000 $2,100,000 the first year 
and $1,773,000 $2,100,000 the second 
year are for airport maintenance grants.
 If the appropriation for either year 
for navigational aids, airport 
construction grants, or airport 
maintenance grants is insufficient, the 
appropriation for the other year is 
available for it.  The appropriations 
for construction grants and maintenance 
grants must be expended only for 
grant-in-aid programs for airports that 
are not state owned. 
 These appropriations must be expended 
in accordance with Minnesota Statutes, 
section 360.305, subdivision 4. 
 The commissioner of transportation may 
transfer unencumbered balances among 
the appropriations for airport 
development and assistance with the 
approval of the governor after 
consultation with the legislative 
advisory commission.  
 $8,000 the first year and $8,000 the 
second year are for maintenance of the 
Pine Creek Airport.  
 $500,000 the first year and $500,000 
the second year are for air service 
grants. 
 $15,000 the first year and $15,000 the 
second year are for the advisory 
council on metropolitan airport 
planning. 
(b) Civil Air Patrol 
        65,000         65,000
(c) Aeronautics Administration 
     3,857,000      3,852,000
 $15,000 the first year and $25,000 the 
second year are for the advisory 
council on metropolitan airport 
planning.  The commissioner of 
transportation shall transfer these 
funds to the legislative coordinating 
commission by July 15, 1992.  
    Sec. 17.  Minnesota Statutes 1990, section 3.21, is amended 
to read: 
    3.21 [NOTICE.] 
    At least four months before the election, the attorney 
general shall furnish to the secretary of state a statement of 
the purpose and effect of all amendments proposed, showing 
clearly the form of the existing sections and how they will read 
if amended.  If a section to which an amendment is proposed 
exceeds 150 words in length, the statement shall show the part 
of the section in which a change is proposed, both its existing 
form and as it will read when amended, together with the 
portions of the context that the attorney general deems 
necessary to understand the amendment.  In October before the 
election, the secretary of state shall publish the statement 
once in all qualified newspapers of the state.  The secretary of 
state shall furnish the statement to the newspapers in 
reproducible form approved by the secretary of state, set in 
7-1/2-point type on an 8-point body.  The maximum rate for 
publication is that provided in section 331A.06 or 18 cents per 
standard line, whichever is less.  If a newspaper refuses to 
publish the amendments, the refusal shall have no effect on the 
validity of the amendments.  The secretary of state shall also 
forward to each county auditor enough copies of the statement, 
in poster form, to supply each election district of the county 
with two copies.  The auditor shall have two copies 
conspicuously posted at or near each polling place on election 
day.  Willful or negligent failure by an official named to 
perform a duty imposed by this section is a misdemeanor. 
    Sec. 18.  Minnesota Statutes 1990, section 5.09, is amended 
to read: 
    5.09 [LEGISLATIVE MANUAL, STUDENTS' EDITION.] 
    The secretary of state, subject to the approval of the 
president of the senate and speaker of the house of 
representatives, shall may prepare, compile, edit, and 
distribute a brief edition of the legislative manual, as 
provided in section 5.08, suitable for school pupils. 
    Sec. 19.  Minnesota Statutes 1990, section 5.14, is amended 
to read: 
    5.14 [TRANSACTION SURCHARGE.] 
    The secretary of state may impose a surcharge of $5 $10 on 
each transaction involving over-the-counter expedited service, 
other than simple copying requests, that takes place at the 
office of the secretary of state. 
    Sec. 20.  Minnesota Statutes 1990, section 10A.31, 
subdivision 4, is amended to read: 
    Subd. 4.  The amounts designated by individuals for the 
state elections campaign fund, less three percent, are 
appropriated from the general fund and shall be credited to the 
appropriate account in the state elections campaign fund and 
annually appropriated for distribution as set forth in 
subdivisions 5, 6 and 7.  An amount equal to three percent shall 
be retained in the general fund for administrative costs.  
    Sec. 21.  Minnesota Statutes 1990, section 15.0597, 
subdivision 4, is amended to read: 
    Subd. 4.  [NOTICE OF VACANCIES.] The chair of an existing 
agency, shall notify the secretary of a vacancy scheduled to 
occur in the agency as a result of the expiration of membership 
terms at least 45 days before the vacancy occurs.  The chair of 
an existing agency shall give written notification to the 
secretary of each vacancy occurring as a result of newly created 
agency positions and of every other vacancy occurring for any 
reason other than the expiration of membership terms as soon as 
possible upon learning of the vacancy and in any case within 15 
days after the occurrence of the vacancy.  The appointing 
authority for newly created agencies shall give written 
notification to the secretary of all vacancies in the new agency 
within 15 days after the creation of the agency.  Every 21 days, 
The secretary shall publish monthly in the State Register a list 
of all vacancies of which the secretary has been so notified.  
Only one notice of a vacancy shall be so published, unless the 
appointing authority rejects all applicants and requests the 
secretary to republish the notice of vacancy.  One copy of the 
listing shall be made available at the office of the secretary 
to any interested person.  The secretary shall distribute by 
mail copies of the listings to requesting persons.  The listing 
for all vacancies scheduled to occur in the month of January 
shall be published in the State Register together with the 
compilation of agency data required to be published pursuant to 
subdivision 3. 
    Sec. 22.  Minnesota Statutes 1990, section 44A.0311, is 
amended to read: 
    44A.0311 [WORLD TRADE CENTER CORPORATION ACCOUNT.] 
    The world trade center corporation account is in the 
special revenue fund.  All money received by the corporation, 
including money generated from the use of the conference and 
service center, except money generated from the use of the 
center by the Minnesota trade division and by the sale of the 
assets or ownership of the corporation under section 44A.12, 
must be deposited in the account.  Money in the account 
including interest earned is appropriated to the board and must 
be used exclusively for corporation purposes.  Any money 
remaining in the account after sale of the assets or ownership 
of the corporation under section 44A.12 shall revert to the 
general fund. 
    Sec. 23.  [44A.12] [PRIVATIZATION OF CORPORATION.] 
    Subdivision 1.  [SALE OF CORPORATION.] The board shall 
privatize the corporation through a sale of the assets or 
ownership of the corporation, on or before December 31, 1993.  
    Subd. 2.  [REQUESTS FOR PROPOSALS.] The board shall solicit 
proposals to privatize the corporation under subdivision 1. 
    Subd. 3.  [EVALUATION FACTORS.] Proposals shall be 
evaluated according to, but not limited to, the following 
factors: 
    (1) the ability of the proposed buyer to maintain the 
mission and vision of the world trade center; 
    (2) the price offered by the proposed buyer for the assets 
or ownership of the corporation; 
    (3) the extent to which the proposed buyer will assume any 
liabilities and obligations of the corporation; 
    (4) the ability of the proposed buyer to provide the 
capital needed for continuing development, promotion and 
marketing of world trade center programs, services, and business 
activities; and 
    (5) the ability of the proposed buyer to maintain and 
expand employment in the state of Minnesota using the assets or 
ownership purchased from the corporation. 
    Subd. 4.  [EVALUATION METHODS.] The board, in conjunction 
with the commissioner of the department of administration, shall 
establish: 
    (1) the relative importance of each factor in subdivision 
3; and 
    (2) other procedures to be used to review and evaluate 
proposals. 
    Subd. 5.  [DISTRIBUTION OF PROCEEDS.] The proceeds of the 
sale must be applied in the following order: 
    (1) any liabilities and obligations of the corporation must 
be paid, satisfied, or discharged or adequate provision must be 
made to do so; and 
    (2) any remaining proceeds must be deposited in the general 
fund. 
    Subd. 6.  [APPROVAL.] A final agreement for sale under this 
section is not effective until it has been approved by the board 
of the World Trade Center Corporation and the commissioner of 
administration. 
    Sec. 24.  Minnesota Statutes 1991 Supplement, section 
60A.14, subdivision 1, is amended to read: 
    Subdivision 1.  [FEES OTHER THAN EXAMINATION FEES.] In 
addition to the fees and charges provided for examinations, the 
following fees must be paid to the commissioner for deposit in 
the general fund: 
    (a) by township mutual fire insurance companies: 
    (1) for filing certificate of incorporation $25 and 
amendments thereto, $10; 
    (2) for filing annual statements, $15; 
    (3) for each annual certificate of authority, $15; 
    (4) for filing bylaws $25 and amendments thereto, $10. 
    (b) by other domestic and foreign companies including 
fraternals and reciprocal exchanges: 
    (1) for filing certified copy of certificate of articles of 
incorporation, $100; 
    (2) for filing annual statement, $225; 
    (3) for filing certified copy of amendment to certificate 
or articles of incorporation, $100; 
    (4) for filing bylaws, $75 or amendments thereto, $75; 
    (5) for each company's certificate of authority, $575, 
annually. 
     (c) the following general fees apply: 
     (1) for each certificate, including certified copy of 
certificate of authority, renewal, valuation of life policies, 
corporate condition or qualification, $15 $25; 
    (2) for each copy of paper on file in the commissioner's 
office 50 cents per page, and $2.50 for certifying the same; 
    (3) for license to procure insurance in unadmitted foreign 
companies, $575; 
    (4) for receiving and forwarding each notice, proof of 
loss, summons, complaint or other process served upon the 
commissioner of commerce, as attorney for service of process 
upon any nonresident agent or insurance company, including 
reciprocal exchanges, $15 plus the cost of effectuating service 
by certified mail, which amount must be paid by the party 
serving the notice and may be taxed as other costs in the 
action; 
    (5) for valuing the policies of life insurance companies, 
one cent per $1,000 of insurance so valued, provided that the 
fee shall not exceed $13,000 per year for any company.  The 
commissioner may, in lieu of a valuation of the policies of any 
foreign life insurance company admitted, or applying for 
admission, to do business in this state, accept a certificate of 
valuation from the company's own actuary or from the 
commissioner of insurance of the state or territory in which the 
company is domiciled; 
    (6) for receiving and filing certificates of policies by 
the company's actuary, or by the commissioner of insurance of 
any other state or territory, $50; 
    (7) for issuing an initial license to an individual agent, 
$25 $30 per license, for issuing an initial agent's license to a 
partnership or corporation, $50 $100, and for issuing an 
amendment (variable annuity) to a license, $25 $50, and for 
renewal of amendment, $25; 
    (8) for each appointment of an agent filed with the 
commissioner, a domestic insurer shall remit $5 and all other 
insurers shall remit $3; 
    (9) for renewing an individual agent's license, $25 $30 per 
year per license, and for renewing a license issued to a 
corporation or partnership, $50 $60 per year; 
    (10) for issuing and renewing a surplus lines agent's 
license, $150 $250; 
    (11) for issuing duplicate licenses, $5 $10; 
    (12) for issuing licensing histories, $10 $20; 
    (13) for filing forms and rates, $50 per filing; 
    (14) for annual renewal of surplus lines insurer license, 
$300. 
    The commissioner shall adopt rules to define filings that 
are subject to a fee. 
    Sec. 25.  Minnesota Statutes 1990, section 60A.1701, 
subdivision 5, is amended to read: 
    Subd. 5.  [POWERS OF THE ADVISORY TASK FORCE.] (a) 
Applications for approval of individuals responsible for 
monitoring course offerings must be submitted to the 
commissioner on forms prescribed by the commissioner and must be 
accompanied by a fee of not more than $50 $100 payable to the 
state of Minnesota for deposit in the general fund.  A fee 
of $5 $10 for each hour or fraction of one hour of course 
approval sought must be forwarded with the application for 
course approval.  If the advisory task force is created, it 
shall make recommendations to the commissioner regarding the 
accreditation of courses sponsored by institutions, both public 
and private, which satisfy the criteria established by this 
section, the number of credit hours to be assigned to the 
courses, and rules which may be promulgated by the 
commissioner.  The advisory task force shall seek out and 
encourage the presentation of courses.  
    (b) If the advisory task force is created, it shall make 
recommendations and provide subsequent evaluations to the 
commissioner regarding procedures for reporting compliance with 
the minimum education requirement.  
    (c) The advisory task force shall recommend the approval or 
disapproval of professional designation examinations that meet 
the criteria established by this section and the number of 
continuing education credit hours to be awarded for passage of 
the examination.  In order to be approved, a professional 
designation examination must:  
    (1) lead to a recognized insurance or financial planning 
professional designation used by agents; and 
    (2) conclude with a written examination that is proctored 
and graded.  
    Sec. 26.  Minnesota Statutes 1990, section 72B.04, 
subdivision 10, is amended to read: 
    Subd. 10.  [FEES.] A fee of $20 $40 is imposed for each 
initial license or temporary permit and $20 $25 for each renewal 
thereof or amendment thereto.  A fee of $20 is imposed for each 
examination taken.  A fee of $20 is imposed for the registration 
of each nonlicensed adjuster who is required to register under 
section 72B.06.  All fees shall be transmitted to the 
commissioner and shall be payable to the state treasurer.  If a 
fee is paid for an examination and if within one year from the 
date of that payment no written request for a refund is received 
by the commissioner or the examination for which the fee was 
paid is not taken, the fee is forfeited to the state of 
Minnesota. 
    Sec. 27.  Minnesota Statutes 1990, section 80A.28, 
subdivision 2, is amended to read: 
    Subd. 2.  Every applicant for an initial or renewal license 
shall pay a filing fee of $200 in the case of a broker-dealer, 
$50 in the case of an agent, and $100 in the case of an 
investment adviser.  When an application is denied or withdrawn, 
the filing fee shall be retained.  A licensed agent who has 
terminated employment with one broker-dealer shall, before 
beginning employment with another broker-dealer, pay a transfer 
fee of $20 $25. 
    Sec. 28.  Minnesota Statutes 1990, section 82.21, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AMOUNTS.] The following fees shall be paid 
to the commissioner: 
    (a) A fee of $50 $100 for each initial individual broker's 
license, and a fee of $25 $50 for each annual renewal thereof; 
    (b) A fee of $25 $50 for each initial salesperson's 
license, and a fee of $10 $20 for each annual renewal thereof; 
    (c) A fee of $25 $55 for each initial real estate closing 
agent license, and a fee of $10 $30 for each annual renewal; 
    (d) A fee of $50 $100 for each initial corporate or 
partnership license, and a fee of $25 $50 for each annual 
renewal thereof; 
    (e) A fee not to exceed $40 per year for payment to the 
education, research and recovery fund in accordance with section 
82.34; 
    (f) A fee of $10 $20 for each transfer; 
    (g) A fee of $25 $50 for a corporation or partnership name 
change; 
    (h) A fee of $5 $10 for an agent name change; 
    (i) A fee of $10 $20 for a license history; 
    (j) A fee of $5 $10 for a duplicate license; and 
    (k) A fee of $50 for license reinstatement; 
     (l) A fee of $20 for reactivating a corporate or 
partnership license without land; 
     (m) A fee of $100 for course coordinator approval; and 
     (n) A fee of $5 $10 for each hour or fraction of one hour 
of course approval sought. 
    Sec. 29.  Minnesota Statutes 1990, section 82B.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AMOUNTS.] The following fees must be paid 
to the commissioner: 
    (1) a fee of $50 $100 for each initial individual real 
estate appraiser's license and a fee of $25 $50 for each annual 
renewal; 
    (2) a fee of $5 $10 for a change in personal name or trade 
name or personal address or business location; 
    (3) a fee of $10 for a license history; and 
    (4) a fee of $20 $25 for a duplicate license; 
    (5) a fee of $100 for appraiser course coordinator 
approval; and 
    (6) a fee of $10 for each hour or fraction of one hour of 
course approval sought. 
    Sec. 30.  Minnesota Statutes 1990, section 138.56, is 
amended by adding a subdivision to read: 
    Subd. 18.  [DESIGNATION.] The former Sibley county 
courthouse located on land owned by the city of Henderson in 
Sibley county is designated as the Joseph R. Brown historical 
interpretive center. 
     Sec. 31.  Minnesota Statutes 1990, section 138.763, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MEMBERSHIP.] There is a St. Anthony Falls 
heritage board consisting of ten thirteen members with the 
director of the Minnesota historical society as chair.  The 
members include the mayor, the chairman of the Hennepin county 
board of commissioners, two members each from the city council, 
the Hennepin county board, and the park board, and one each from 
the preservation commission, the preservation office, Hennepin 
county historical society, and the society. 
    Sec. 32.  Minnesota Statutes 1990, section 138.766, is 
amended to read: 
     138.766 [MATCH.] 
    The city of Minneapolis, Hennepin county, and the park 
board shall provide match in money or in kind for the project 
under sections 138.761 to 138.765 on a dollar for dollar basis. 
    Sec. 33.  Minnesota Statutes 1990, section 169.01, 
subdivision 55, is amended to read: 
    Subd. 55.  [IMPLEMENT OF HUSBANDRY.] (a) "Implement of 
husbandry" means every vehicle designed and adapted exclusively 
for agricultural, horticultural, or livestock-raising operations 
or for lifting or carrying an implement of husbandry and in 
either case not subject to registration if used upon the 
highways. 
    (b) A towed vehicle meeting the description in paragraph 
(a) is an implement of husbandry without regard to whether the 
vehicle is towed by an implement of husbandry or by a registered 
motor vehicle. 
    Sec. 34.  Minnesota Statutes 1990, section 176.104, 
subdivision 2, is amended to read: 
    Subd. 2.  [LIABILITY FOR PAST REHABILITATION; LIEN.] (a) If 
liability is determined after the employee has commenced 
rehabilitation under this section the liable party is 
responsible for the cost of rehabilitation provided.  Future 
rehabilitation after liability is established is governed by 
section 176.102. 
    (b) If the employer, insurer, or defendant is given written 
notice by the department of a claim for rehabilitation services 
or disbursements, the claim is a lien against the amount paid or 
payable as compensation.  
    Sec. 35.  Minnesota Statutes 1990, section 176.104, is 
amended by adding a subdivision to read: 
    Subd. 3.  [REIMBURSEMENTS.] All money received under this 
section must be credited to the special compensation fund. 
    Sec. 36.  Minnesota Statutes 1990, section 176.104, is 
amended by adding a subdivision to read: 
    Subd. 4.  [VOCATIONAL REHABILITATION UNIT FUNDING.] The 
cost of the vocational rehabilitation unit shall be financed by 
the special compensation fund beginning July 1, 1992. 
    Sec. 37.  Minnesota Statutes 1990, section 176.129, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEPOSIT OF FUNDS.] The special 
compensation fund is created for the purposes provided for in 
this chapter and chapter 182.  The state treasurer is the 
custodian of the special compensation fund.  Sums paid to the 
commissioner pursuant to this section shall be deposited with 
the state treasurer for the benefit of the fund and used to pay 
the benefits under this chapter and administrative costs 
pursuant to subdivision 11.  Any interest or profit accruing 
from investment of these sums shall be credited to the special 
compensation fund.  Subject to the provisions of this section, 
all the powers, duties, functions, obligations, and rights 
vested in the special compensation fund immediately prior to 
January 1, 1984 are transferred to and vested in the special 
compensation fund recreated by this section.  All rights and 
obligations of employers with regard to the special compensation 
fund which existed immediately prior to January 1, 1984, 
continue, subject to the provisions of this section.  
    Sec. 38.  Minnesota Statutes 1990, section 176.129, 
subdivision 11, is amended to read: 
    Subd. 11.  [ADMINISTRATIVE PROVISIONS.] The accounting, 
investigation, and legal costs necessary for the administration 
of the programs financed by the special compensation fund shall 
be paid from the fund during each biennium commencing July 1, 
1981.  Staffing and expenditures related to the administration 
of the special compensation fund shall be approved through the 
regular budget and appropriations process.  All sums recovered 
by the special compensation fund as a result of action under 
section 176.061, or recoveries of payments made by the special 
compensation fund under section 176.183 or 176.191, or sums 
recovered under chapter 182, shall be credited to the special 
compensation fund. 
    Sec. 39.  Minnesota Statutes 1990, section 176.183, 
subdivision 1, is amended to read: 
    Subdivision 1.  When any employee sustains an injury 
arising out of and in the course of employment while in the 
employ of an employer, other than the state or its political 
subdivisions, not insured or self-insured as provided for in 
this chapter, the employee or the employee's dependents shall 
nevertheless receive benefits as provided for in this chapter 
from the special compensation fund, and the commissioner has a 
cause of action against the employer for reimbursement for all 
moneys paid out or to be paid out, and, in the discretion of the 
court, as punitive damages an additional amount not exceeding 50 
percent of all moneys paid out or to be paid out.  As used in 
this subdivision, "employer" includes officers of corporations 
who have legal control, either individually or jointly with 
another or others, of the payment of wages.  An action to 
recover the moneys shall be instituted unless the commissioner 
determines that no recovery is possible.  All moneys recovered 
shall be deposited in the general fund.  There shall be no 
payment from the special compensation fund if there is liability 
for the injury under the provisions of section 176.215, by an 
insurer or self-insurer. 
    Sec. 40.  Minnesota Statutes 1991 Supplement, section 
182.666, subdivision 2, is amended to read: 
    Subd. 2.  Any employer who has received a citation for a 
serious violation of its duties under section 182.653, or any 
standard, rule, or order adopted under the authority of the 
commissioner as provided in this chapter, shall be assessed a 
fine not to exceed $7,000 for each violation.  If the violation 
causes or contributes to the cause of the death of an employee, 
the employer shall be assessed a fine of up to $10,000 $25,000. 
    Sec. 41.  Minnesota Statutes 1990, section 182.666, 
subdivision 7, is amended to read: 
    Subd. 7.  Fines imposed under this chapter shall be paid to 
the commissioner for deposit in the general special compensation 
fund and may be recovered in a civil action in the name of the 
department brought in the district court of the county where the 
violation is alleged to have occurred or the district court 
where the commissioner has an office.  Unpaid fines shall be 
increased to 125 percent of the original assessed amount if not 
paid within 60 days after the fine becomes a final order.  After 
that 60 days, unpaid fines shall accrue an additional penalty of 
ten percent per month compounded monthly until the fine is paid 
in full. 
    Sec. 42.  Minnesota Statutes 1990, section 204B.11, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AMOUNT; DISHONORED CHECKS; CONSEQUENCES.] 
Except as provided by subdivision 2, a filing fee shall be paid 
by each candidate who files an affidavit of candidacy.  The fee 
shall be paid at the time the affidavit is filed.  The amount of 
the filing fee shall vary with the office sought as follows: 
    (a) for the office of governor, lieutenant governor, 
attorney general, state auditor, state treasurer, secretary of 
state, representative in congress, judge of the supreme court, 
judge of the court of appeals, judge of the district court, or 
judge of the county municipal court of Hennepin 
county, $200 $300; 
    (b) for the office of senator in congress, $300 $400; 
    (c) for office of senator or representative in the 
legislature, $75 $100; 
    (d) for a county office, $50; and 
    (e) for the office of soil and water conservation district 
supervisor, $20. 
    For the office of presidential elector, and for those 
offices for which no compensation is provided, no filing fee is 
required. 
    The filing fees received by the county auditor shall 
immediately be paid to the county treasurer.  The filing fees 
received by the secretary of state shall immediately be paid to 
the state treasurer. 
    When an affidavit of candidacy has been filed with the 
appropriate filing officer and the requisite filing fee has been 
paid, the filing fee shall not be refunded.  If a candidate's 
filing fee is paid with a check, draft, or similar negotiable 
instrument for which sufficient funds are not available or that 
is dishonored, notice to the candidate of the worthless 
instrument must be sent by the filing officer via registered 
mail no later than immediately upon the closing of the filing 
deadline with return receipt requested.  The candidate will have 
five days from the time the filing officer receives proof of 
receipt to issue a check or other instrument for which 
sufficient funds are available.  The candidate issuing the 
worthless instrument is liable for a service charge pursuant to 
section 332.50.  If adequate payment is not made, the name of 
the candidate must not appear on any official ballot and the 
candidate is liable for all costs incurred by election officials 
in removing the name from the ballot. 
    Sec. 43.  Minnesota Statutes 1990, section 204B.27, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELECTION LAW AND INSTRUCTIONS.] The secretary of 
state shall prepare and publish a volume containing all state 
general laws relating to elections.  The attorney general shall 
provide annotations to the secretary of state for this volume.  
On or before July 1 of every even numbered year the secretary of 
state shall furnish to the county auditors and municipal clerks 
enough copies of this volume so that each county auditor and 
municipal clerk will have at least one copy.  The secretary of 
state shall prepare an extract of this volume containing all the 
election laws related to the duties of election judges.  On or 
before August 1 of every even-numbered year, the secretary of 
state shall furnish to the county auditors and municipal clerks 
enough copies of this extract so that each election precinct 
will have at least one copy.  The secretary of state shall 
determine the manner in which the volume and extract are 
distributed.  The secretary of state may prepare and transmit to 
the county auditors and municipal clerks detailed written 
instructions for complying with election laws relating to the 
conduct of elections, conduct of voter registration and voting 
procedures.  
    Sec. 44.  Minnesota Statutes 1990, section 204D.11, 
subdivision 1, is amended to read: 
    Subdivision 1.  [WHITE BALLOT; RULES; REIMBURSEMENT.] The 
names of the candidates for all partisan offices voted on at the 
state general election shall be placed on a single ballot 
printed on white paper which shall be known as the "white 
ballot."  This ballot shall be prepared by the county auditor 
subject to the rules of the secretary of state.  The state shall 
contribute to the cost of preparing the white ballot and the 
envelopes required for the returns of that ballot.  The 
secretary of state shall adopt rules for preparation and time of 
delivery of the white ballot and for establishing a basis for 
distributing to the counties the money appropriated by the state 
for white ballot costs.  The appropriation shall be available 
both years of the biennium and shall be used for all state 
general and special elections.  The secretary of state shall 
report to the chairs of the senate finance and house 
appropriations committees on all money used for special 
elections.  
    Sec. 45.  Minnesota Statutes 1990, section 204D.11, 
subdivision 2, is amended to read: 
    Subd. 2.  [PINK BALLOTS.] Amendments to the state 
constitution shall be placed on a ballot printed on pink paper 
which shall be known as the "pink ballot."  The pink ballot 
shall be prepared by the secretary of state. 
    Sec. 46.  Minnesota Statutes 1991 Supplement, section 
240.13, subdivision 5, is amended to read: 
    Subd. 5.  [PURSES.] (a) From the amounts deducted from all 
pari-mutuel pools by a licensee, an amount equal to not less 
than the following percentages of all money in all pools must be 
set aside by the licensee and used for purses for races 
conducted by the licensee, provided that a licensee may agree by 
contract with an organization representing a majority of the 
horsepersons racing the breed involved to set aside amounts in 
addition to the following percentages: 
     (1) for live races conducted at a class A facility, and for 
races that are part of full racing card simulcasting or full 
racing card telerace simulcasting that takes place within the 
time period of the live races, 8.4 percent; 
     (2) for simulcasts and telerace simulcasts conducted during 
the racing season other than as provided for in clause (1), 50 
percent of the takeout remaining after deduction for taxes on 
pari-mutuel pools, payment to the breeders fund, and payment to 
the sending out-of-state racetrack for receipt of the signal; 
and 
     (3) for simulcasts and telerace simulcasts conducted 
outside of the racing season, 25 percent of the takeout 
remaining after deduction for the state pari-mutuel tax, payment 
to the breeders fund, payment to the sending out-of-state 
racetrack for receipt of the signal and, before January 1, 2005, 
a further deduction of eight percent of all money in all pools; 
provided, however, that in the event that wagering on simulcasts 
and telerace simulcasts outside of the racing season exceeds 
$125 million in any calendar year, the amount set aside for 
purses by this formula is increased to 30 percent on amounts 
between $125,000,000 and $150,000,000 wagered; 40 percent on 
amounts between $150,000,000 and $175,000,000 wagered; and 50 
percent on amounts in excess of $175,000,000 wagered.  In lieu 
of the eight percent deduction, a deduction as agreed to between 
the licensee and the horsepersons' organization representing the 
majority of horsepersons racing at the licensee's class A 
facility during the preceding 12 months, is allowed after 
December 31, 2004.  
     The commission may by rule provide for the administration 
and enforcement of this subdivision.  The deductions for payment 
to the sending out-of-state racetrack must be actual, except 
that when there exists any overlap of ownership, control, or 
interest between the sending out-of-state racetrack and the 
receiving licensee, the deduction must not be greater than three 
percent unless agreed to between the licensee and the 
horsepersons' organization representing the majority of 
horsepersons racing the breed racing the majority of races 
during the existing racing meeting or, if outside of the racing 
season, during the most recent racing meeting.  
     In lieu of the amount the licensee must pay to the 
commission for deposit in the Minnesota breeders fund under 
section 240.15, subdivision 1, the licensee shall pay 5-1/2 
percent of the takeout from all pari-mutuel pools generated by 
wagering at the licensee's facility on full racing card 
simulcasts and full racing card telerace simulcasts of races not 
conducted in this state. 
     (b) From the money set aside for purses, the licensee shall 
pay to the horseperson's organization representing the majority 
of the horsepersons racing the breed involved and contracting 
with the licensee with respect to purses and the conduct of the 
racing meetings and providing representation, benevolent 
programs, benefits, and services for horsepersons and their 
on-track employees, an amount, sufficient to perform these 
services, as may be determined by agreement by the licensee and 
the horseperson's organization.  The amount paid may be deducted 
only from the money set aside for purses to be paid in races for 
the breed represented by the horseperson's organization.  With 
respect to racing meetings where more than one breed is racing, 
the licensee may contract independently with the horseperson's 
organization representing each breed racing. 
     (c) Notwithstanding sections 325D.49 to 325D.66, a 
horseperson's organization representing the majority of the 
horsepersons racing a breed at a meeting, and the members 
thereof, may agree to withhold horses during a meeting. 
     (d) Money set aside for purses from wagering, during the 
racing season, on simulcasts and telerace simulcasts must be 
used for purses for live races conducted at the licensee's class 
A facility during the same racing season, over and above the 8.4 
percent purse requirement or any higher requirement to which the 
parties agree, for races conducted in this state.  Money set 
aside for purses from wagering, outside of the racing season, on 
simulcasts and telerace simulcasts must be for purses for live 
races conducted at the licensee's class A facility during the 
next racing season, over and above the 8.4 percent purse 
requirement or any higher requirement to which the parties 
agree, for races conducted in this state. 
     (e) Money set aside for purses from wagering on simulcasts 
and telerace simulcasts must be used for purses for live races 
involving the same breed involved in the simulcast or telerace 
simulcast except that money set aside for purses and payments to 
the breeders fund from wagering on full racing card simulcasts 
and full racing card telerace simulcasts of races not conducted 
in this state, occurring during a live mixed meet, must be 
allotted to the purses and breeders fund for each breed 
participating in the mixed meet in the same proportion that the 
number of live races run by each breed bears to the total number 
of live races conducted during the period of the mixed meet. 
     (f) The allocation of money set aside for purses to 
particular racing meets may be adjusted, relative to 
overpayments and underpayments, by contract between the licensee 
and the horsepersons' organization representing the majority of 
horsepersons racing the breed involved at the licensee's 
facility.  
    (g) Subject to the provisions of this chapter, money set 
aside from pari-mutuel pools for purses must be for the breed 
involved in the race that generated the pool, except that if the 
breed involved in the race generating the pari-mutuel pool is 
not racing in the current racing meeting, or has not raced 
within the preceding 12 months at the licensee's class A 
facility, money set aside for purses must may be distributed 
proportionately to those breeds that have run during the 
preceding 12 months or paid to the commission and used for 
purses or to promote racing for the breed involved in the race 
generating the pari-mutuel pool, or both, in a manner prescribed 
by the commission. 
    Sec. 47.  Minnesota Statutes 1991 Supplement, section 
240.13, subdivision 6, is amended to read: 
    Subd. 6.  [SIMULCASTING.] The commission may permit an 
authorized licensee to conduct simulcasting or telerace 
simulcasting at the licensee's facility on any day authorized by 
the commission.  All simulcasts and telerace simulcasts must 
comply with the Interstate Horse Racing Act of 1978, United 
States Code, title 15, sections 3001 to 3007.  In addition to 
teleracing programs featuring live racing conducted at the 
licensee's class A facility, the class E licensee may conduct 
not more than seven teleracing programs per week during the 
racing season, unless additional telerace simulcasting is 
authorized by the director and approved by the horsepersons' 
organization representing the majority of horsepersons racing 
the breed racing the majority of races at the licensee's class A 
facility during the preceding 12 months.  The commission may not 
authorize any day for simulcasting at a class A facility during 
the racing season, and a licensee may not be allowed to transmit 
out-of-state telecasts of races the licensee conducts, unless 
the licensee has obtained the approval of the horsepersons' 
organization representing the majority of the horsepersons 
racing the breed involved at the licensed racetrack during the 
preceding 12 months.  The licensee may pay fees and costs to an 
entity transmitting a telecast of a race to the licensee for 
purposes of conducting pari-mutuel wagering on the race.  The 
licensee may deduct fees and costs related to the receipt of 
televised transmissions from a pari-mutuel pool on the televised 
race, provided that one-half of any amount recouped in this 
manner must be added to the amounts required to be set aside for 
purses. 
     With the approval of the commission and subject to the 
provisions of this subdivision, a licensee may transmit 
telecasts of races it conducts, for wagering purposes, to 
locations outside the state, and the commission may allow this 
to be done on a commingled pool basis.  
     Except as otherwise provided in this section, simulcasting 
and telerace simulcasting may be conducted on a separate pool 
basis or, with the approval of the commission, on a commingled 
pool basis.  All provisions of law governing pari-mutuel betting 
apply to simulcasting and telerace simulcasting except as 
otherwise provided in this subdivision or in the commission's 
rules.  If pools are commingled, wagering at the licensed 
facility must be on equipment electronically linked with the 
equipment at the licensee's class A facility or with the sending 
racetrack via the totalizator computer at the licensee's class A 
facility.  Subject to the approval of the commission, the types 
of betting, takeout, and distribution of winnings on commingled 
pari-mutuel pools are those in effect at the sending racetrack.  
Breakage for pari-mutuel pools on a televised race must be 
calculated in accordance with the law or rules governing the 
sending racetrack for these pools, and must be distributed in a 
manner agreed to between the licensee and the sending 
racetrack.  Notwithstanding subdivision 7 and section 240.15, 
subdivision 5, the commission may approve procedures governing 
the definition and disposition of unclaimed tickets that are 
consistent with the law and rules governing unclaimed tickets at 
the sending racetrack.  For the purposes of this section, 
"sending racetrack" is either the racetrack outside of this 
state where the horse race is conducted or, with the consent of 
the racetrack, an alternative facility that serves as the 
racetrack for the purpose of commingling pools.  
    If there is more than one class B licensee conducting 
racing within the seven-county metropolitan area, simulcasting 
and telerace simulcasting may be conducted only on races run by 
a breed that ran at the licensee's class A facility within the 
12 months preceding the event.  That portion of the takeout 
allocated for purses from pari-mutuel pools generated by 
wagering on standardbreds must be set aside and must be paid to 
the racing commission and used for purses as otherwise provided 
by this section or to promote standardbred racing or both, in a 
manner prescribed by the commission.  In the event that a 
licensee conducts live standardbred racing, pools generated by 
live, simulcast, or telerace simulcasting at the licensee's 
facilities on standardbred racing are subject to the purse 
set-aside requirements otherwise provided by law.  
    Contractual agreements between licensees and horsepersons' 
organizations entered into before June 5, 1991, regarding money 
to be set aside for purses from pools generated by simulcasts at 
a class A facility, are controlling regarding purse requirements 
through the end of the 1992 racing season. 
    Sec. 48.  Minnesota Statutes 1990, section 240.14, 
subdivision 3, is amended to read: 
    Subd. 3.  [COUNTY FAIR RACING DAYS.] The commission may 
assign to a class D licensee the following racing days:  
    (1) those racing days, not to exceed ten racing days, that 
coincide with the days on which the licensee's county fair is 
running; and 
    (2) additional racing days, not to exceed ten racing days, 
immediately before or after the days on which the licensee's 
county fair is running. 
    In no event shall the number of racing days assigned by the 
commission exceed 20 days.  
    The commission may not assign any days before July 1, 1989, 
as racing days to a class D licensee. 
    Sec. 49.  Minnesota Statutes 1991 Supplement, section 
240.15, subdivision 6, is amended to read: 
    Subd. 6.  [DISPOSITION OF PROCEEDS.] The commission shall 
distribute all money received under this section, and all money 
received from license fees and fines it collects, as follows: 
all money designated for deposit in the Minnesota breeders fund 
must be paid into that fund for distribution under section 
240.18 except that all money generated by full racing card 
simulcasts, or full racing card telerace simulcasts of races not 
conducted in this state, must be distributed as provided in 
section 240.18, clause (2), paragraphs (a), (b), and 
(c) subdivisions 2, paragraph (d), clauses (1), (2), and (3); 
and 3.  Revenue from an admissions tax imposed under subdivision 
1 must be paid to the local unit of government at whose request 
it was imposed, at times and in a manner the commission 
determines. All other revenues received under this section by 
the commission, and all license fees, fines, and other revenue 
it receives, must be paid to the state treasurer for deposit in 
the general fund. 
    Sec. 50.  Minnesota Statutes 1991 Supplement, section 
240.18, is amended by adding a subdivision to read: 
    Subd. 3a.  [OTHER CATEGORIES.] Available money apportioned 
to breeds other than breeds contained in subdivisions 2 and 3 
must be distributed as financial incentives to encourage horse 
racing and horse breeding for such breeds. 
    Sec. 51.  Minnesota Statutes 1990, section 298.221, is 
amended to read: 
    298.221 [RECEIPTS FROM CONTRACTS; APPROPRIATION.] 
    (a) All moneys paid to the state of Minnesota pursuant to 
the terms of any contract entered into by the state under 
authority of Laws 1941, chapter 544, section 4, or of said 
section as amended and any fees which may, in the discretion of 
the commissioner of iron range resources and rehabilitation, be 
charged in connection with any project pursuant to that section 
as amended, shall be deposited in the state treasury to the 
credit of the iron range resources and rehabilitation board 
account in the special revenue fund and are hereby appropriated 
for the purposes of section 298.22. 
    (b) Notwithstanding section 7.09, merchandise may be 
accepted by the commissioner of the iron range resources and 
rehabilitation board for payment of advertising contracts if the 
commissioner determines that the merchandise can be used for 
special event prizes or mementos at facilities operated by the 
board.  Nothing in this paragraph authorizes the commissioner or 
a member of the board to receive merchandise for personal use.  
    Sec. 52.  Minnesota Statutes 1990, section 299E.01, 
subdivision 1, is amended to read: 
    Subdivision 1.  A division in the department of public 
safety to be known as the capitol complex security division is 
hereby created, under the supervision and control of the 
director of capitol complex security, who must be a member of 
the state patrol and to whom shall be are assigned the duties 
and responsibilities described in this section.  The 
commissioner may place the director's position in the 
unclassified service if the position meets the criteria of 
section 43A.08, subdivision 1a. 
    Sec. 53.  Minnesota Statutes 1990, section 340A.301, 
subdivision 6, is amended to read: 
    Subd. 6.  [FEES.] The annual fees for licenses under this 
section are as follows: 
  (a) Manufacturers (except as provided 
          in clauses (b) and (c))                $ 7,500 15,000 
      Duplicates                                 $ 3,000
  (b) Manufacturers of wines of not more
      than 25 percent alcohol by volume          $   500
  (c) Brewers other than those described
      in clause (d)                              $ 1,250 2,500
  (d) Brewers who also hold a retail on-sale
      license and who manufacture fewer than
      2,000 barrels of malt liquor in a year, 
      the entire production of which is solely 
      for consumption on tap on the licensed 
      premises                                   $   250 500
  (e) Wholesalers (except as provided in
          clauses (f), (g), and (h))             $ 7,500 15,000
      Duplicates                                 $ 3,000
  (f) Wholesalers of wines of not more
      than 25 percent alcohol by volume          $   750 2,000
  (g) Wholesalers of intoxicating
      malt liquor                                $   300 600
      Duplicates                                 $    15 25
  (h) Wholesalers of nonintoxicating
      malt liquor                                $    10
    If a business licensed under this section is destroyed, or 
damaged to the extent that it cannot be carried on, or if it 
ceases because of the death or illness of the licensee, the 
commissioner may refund the license fee for the balance of the 
license period to the licensee or to the licensee's estate. 
    Sec. 54.  Minnesota Statutes 1990, section 340A.302, 
subdivision 3, is amended to read: 
    Subd. 3.  [FEES.] Annual fees for licenses under this 
section are as follows: 
     Importers of distilled spirits, wine,
        or ethyl alcohol                          $300 420
     Importers of malt liquor                     $200 800
    Sec. 55.  Minnesota Statutes 1991 Supplement, section 
340A.311, is amended to read: 
    340A.311 [BRAND REGISTRATION.] 
    (a) A brand of intoxicating liquor or nonintoxicating malt 
liquor may not be manufactured, imported into, or sold in the 
state unless the brand label has been registered with and 
approved by the commissioner.  A brand registration must be 
renewed every three years in order to remain in effect.  The fee 
for an initial brand registration is $20 $30.  The fee for brand 
registration renewal is $20.  The brand label of a brand of 
intoxicating liquor or nonintoxicating malt liquor for which the 
brand registration has expired, is conclusively deemed abandoned 
by the manufacturer or importer.  
    (b) In this section "brand" and "brand label" include 
trademarks and designs used in connection with labels.  
    (c) The label of any brand of wine or intoxicating or 
nonintoxicating malt beverage may be registered only by the 
brand owner or authorized agent.  No such brand may be imported 
into the state for sale without the consent of the brand owner 
or authorized agent.  This section does not limit the provisions 
of section 340A.307. 
    Sec. 56.  Minnesota Statutes 1990, section 340A.315, 
subdivision 1, is amended to read: 
    Subdivision 1.  [LICENSES.] The commissioner may issue a 
farm winery license to the owner or operator of a farm winery 
located within the state and producing table or sparkling 
wines.  Licenses may be issued and renewed for an annual fee of 
$25 $50, which is in lieu of all other license fees required by 
this chapter. 
    Sec. 57.  Minnesota Statutes 1991 Supplement, section 
340A.316, is amended to read: 
    340A.316 [SACRAMENTAL WINE.] 
    The commissioner may issue licenses for the importation and 
sale of wine exclusively for sacramental purposes.  The holder 
of a sacramental wine license may sell wine only to a rabbi, 
priest, or minister of a church, or other established religious 
organization, or individual members of a religious organization 
who conduct ceremonies in their homes, if the purchaser 
certifies in writing that the wine will be used exclusively for 
sacramental purposes in religious ceremonies.  The annual fee 
for a sacramental wine license is $25 $50.  
    A rabbi, priest, or minister of a church or other 
established religious organization may import wine exclusively 
for sacramental purposes without a license.  
    Sec. 58.  Minnesota Statutes 1990, section 340A.317, 
subdivision 2, is amended to read: 
    Subd. 2.  [LICENSE REQUIRED.] All brokers and their 
employees must obtain a license from the commissioner.  The 
annual license fee for a broker is $300 $600, for an employee of 
a broker the license fee is $12 $20.  An application for a 
broker's license must be accompanied by a written statement from 
the distillery, winery, or importer the applicant proposes to 
represent verifying the applicant's contractual arrangement, and 
must contain a statement that the distillery, winery, or 
importer is responsible for the actions of the broker.  The 
license shall be issued for one year.  The broker, or employee 
of the broker may promote a vendor's product and may call upon 
licensed retailers to insure product identification, give 
advance notice of new products or product changes, and share 
other pertinent market information.  The commissioner may revoke 
or suspend for up to 60 days a broker's license or the license 
of an employee of a broker if the broker or employee has 
violated any provision of this chapter, or a rule of the 
commissioner relating to alcoholic beverages.  The commissioner 
may suspend for up to 60 days, the importation license of a 
distillery or winery on a finding by the commissioner that its 
broker or employee of its broker has violated any provision of 
this chapter, or rule of the commissioner relating to alcoholic 
beverages.  
    Sec. 59.  Minnesota Statutes 1990, section 340A.408, 
subdivision 4, is amended to read: 
    Subd. 4.  [LAKE SUPERIOR TOUR BOATS; COMMON CARRIERS.] (a) 
The annual license fee for licensing of Lake Superior tour boats 
under section 340A.404, subdivision 8, shall be $1,000. 
    (b) The annual license fee for common carriers licensed 
under section 340A.407 is: 
    (1) $25 $50 for nonintoxicating malt liquor, and $2 $20 for 
a duplicate license; and 
    (2) $100 $200 for intoxicating liquor, and $10 $20 for a 
duplicate license. 
    Sec. 60.  Minnesota Statutes 1991 Supplement, section 
340A.504, subdivision 3, is amended to read: 
    Subd. 3.  [INTOXICATING LIQUOR; SUNDAY SALES; ON-SALE.] (a) 
A restaurant, club, bowling center, or hotel with a seating 
capacity for at least 30 persons and which holds an on-sale 
intoxicating liquor license may sell intoxicating liquor for 
consumption on the premises in conjunction with the sale of food 
between the hours of 12:00 noon on Sundays and 1:00 a.m. on 
Mondays. 
    (b) The governing body of a municipality may after one 
public hearing by ordinance permit a restaurant, hotel, bowling 
center, or club to sell intoxicating liquor for consumption on 
the premises in conjunction with the sale of food between the 
hours of 10:00 a.m. on Sundays and 1:00 a.m. on Mondays, 
provided that the licensee is in conformance with the Minnesota 
clean air act. 
    (c) An establishment serving intoxicating liquor on Sundays 
must obtain a Sunday license.  The license must be issued by the 
governing body of the municipality for a period of one year, and 
the fee for the license may not exceed $200. 
    (d) A city may issue a Sunday intoxicating liquor license 
only if authorized to do so by the voters of the city voting on 
the question at a general or special election.  A county may 
issue a Sunday intoxicating liquor license in a town only if 
authorized to do so by the voters of the town as provided in 
paragraph (e).  A county may issue a Sunday intoxicating liquor 
license in unorganized territory only if authorized to do so by 
the voters of the election precinct that contains the licensed 
premises, voting on the question at a general or special 
election. 
    (e) An election conducted in a town on the question of the 
issuance by the county of Sunday sales licenses to 
establishments located in the town must be held on the day of 
the annual election of town officers. 
    (f) Voter approval is not required for licenses issued by 
the metropolitan airports commission or common carrier licenses 
issued by the commissioner.  Common carriers serving 
intoxicating liquor on Sunday must obtain a Sunday license from 
the commissioner at an annual fee of $50, plus $5 $20 for each 
duplicate.  
    Sec. 61.  Minnesota Statutes 1990, section 345.32, is 
amended to read: 
    345.32 [PROPERTY HELD BY BANKING OR FINANCIAL ORGANIZATIONS 
OR BY BUSINESS ASSOCIATIONS.] 
    The following property held or owing by a banking or 
financial organization or by a business association is presumed 
abandoned: 
    (a) Any demand, savings or matured time deposit made in 
this state with a banking organization, together with any 
interest or dividend thereon, excluding contracted service 
charges which may be deducted for a period not to exceed one 
year, unless the owner has, within five three years: 
    (1) increased or decreased the amount of the deposit, or 
presented the passbook or other similar evidence of the deposit 
for the crediting of interest; or 
    (2) corresponded in writing with the banking organization 
concerning the deposit; or 
    (3) otherwise indicated an interest in the deposit as 
evidenced by a memorandum on file with the banking organization; 
or 
    (4) received tax reports or regular statements of the 
deposit by mail from the banking or financial organization 
regarding the deposit.  Receipt of the statement by the owner 
should be presumed if the statement is mailed first class by the 
banking or financial organization and not returned; or 
    (5) acted as provided in paragraphs (1), (2), (3) and (4) 
of this subsection in regard to another demand, savings or time 
deposit made with the banking or financial organization. 
    (b) Any funds or dividends deposited or paid in this state 
toward the purchase of shares or other interest in a business 
association where the stock certificates or other evidence of 
interest in the business have not been issued, or in a financial 
organization, and any interest or dividends thereon, excluding 
contracted service charges which may be deducted for a period 
not to exceed one year, unless the owner has within five three 
years: 
    (1) increased or decreased the amount of the funds or 
deposit, or presented an appropriate record for the crediting of 
interest or dividends; or 
    (2) corresponded in writing with the financial organization 
concerning the funds or deposit; or 
    (3) otherwise indicated an interest in the funds or deposit 
as evidenced by a memorandum on file with the financial 
organization; or 
    (4) received tax reports or regular statements of the 
deposit or accounting by mail from the financial organization or 
business association regarding the deposit.  Receipt of the 
statement by the owner should be presumed if the statement is 
mailed first class by the financial organization or business 
association and not returned. 
    (c) Any sum, excluding contracted service charges which may 
be deducted for a period not to exceed one year, payable on 
checks certified in this state or on written instruments issued 
in this state, or issued in any other state the law in which for 
any reason does not apply to the abandonment of sums payable on 
checks certified in that state or written instruments issued in 
that state, on which a banking or financial organization or 
business association is directly liable, including, by way of 
illustration but not of limitation, drafts, money orders and 
traveler's checks, that has been outstanding for more than five 
three years from the date it was payable, or from the date of 
its issuance if payable on demand, or, in the case of traveler's 
checks, has been outstanding for more than 15 years from the 
date of its issuance, or, in the case of money orders, has been 
outstanding for more than seven years from the date of its 
issuance, unless the owner has within five three years, or 
within 15 years in the case of traveler's checks, or within 
seven years in the case of money orders, corresponded in writing 
with the banking or financial organization or business 
association concerning it, or otherwise indicated an interest as 
evidenced by a memorandum on file with the banking or financial 
organization or business association. 
    (d) Any funds or other personal property, tangible or 
intangible, removed from a safe deposit box or any other 
safekeeping repository in this state on which the lease or 
rental period has expired due to nonpayment of rental charges or 
other reason, that have been unclaimed by the owner for more 
than five years from the date on which the lease or rental 
period expired. 
      (1) If the amount due for the use or rental of a safe 
deposit box has remained unpaid for a period of six months, the 
bank, savings bank, trust company, savings and loan, or safe 
deposit company shall, within 60 days of the expiration of that 
period, send by certified mail, addressed to the renter or 
lessee of the safe deposit box, directed to the address standing 
on its books, a written notice that, if the amount due for the 
use or rental of the safe deposit box is not paid within 60 days 
after the date of the mailing of the notice, it will cause the 
safe deposit box to be opened and its contents placed in one of 
its general safe deposit boxes. 
     (2) Upon the expiration of 60 days from the date of mailing 
the notice, and in default of payment within the 60 days of the 
amount due for the use or rental of the safe deposit box, the 
bank, savings bank, trust company, savings and loan, or safe 
deposit company, in the presence of its president, 
vice-president, secretary, treasurer, assistant secretary, 
assistant treasurer or superintendent, or such other person as 
specifically designated by its board of directors, and of a 
notary public not in its employ, shall cause the safe deposit 
box to be opened and the contents thereof, to be removed and 
sealed by the notary public in a package, in which the notary 
public shall enclose a detailed description of the contents of 
the safe deposit box and upon which the notary public shall mark 
the name of the renter or lessee and, in the presence of one of 
the bank officers listed above, the notary public shall place 
the package in one of the bank's general safe deposit boxes and 
set out the proceedings in a certificate under the notary 
public's official seal, which shall be delivered to the bank, 
savings bank, trust company, savings and loan, or safe deposit 
company. 
    (3) The bank, savings bank, trust company, savings and 
loan, or safe deposit company shall hold the contents of 
abandoned safe deposit boxes until they are claimed by the owner 
or the bank turns them over to the commissioner pursuant to this 
chapter. 
    Sec. 62.  Minnesota Statutes 1990, section 345.33, is 
amended to read: 
    345.33 [UNCLAIMED FUNDS HELD BY LIFE INSURANCE 
CORPORATIONS.] 
    (a) Unclaimed funds, as defined in this section, held and 
owing by a life insurance corporation shall be presumed 
abandoned if the last known address, according to the records of 
the corporation, of the person entitled to the funds is within 
this state.  If a person other than the insured or annuitant is 
entitled to the funds and no address of such person is known to 
the corporation or if it is not definite and certain from the 
records of the corporation what person is entitled to the funds, 
it is presumed that the last known address of the person 
entitled to the funds is the same as the last known address of 
the insured or annuitant according to the records of the 
corporation. 
    (b) "Unclaimed funds," as used in this section, means all 
moneys held and owing by any life insurance corporation 
unclaimed and unpaid for more than five three years after the 
moneys became due and payable as established from the records of 
the corporation under any life or endowment insurance policy or 
annuity contract which has matured.  A life insurance policy not 
matured by actual proof of the death of the insured is deemed to 
be matured and the proceeds thereof are deemed to be due and 
payable if such policy was in force when the insured attained 
the limiting age under the mortality table on which the reserve 
is based, unless the person appearing entitled thereto has 
within the preceding five three years, (1) assigned, readjusted 
or paid premiums on the policy, or subjected the policy to loan, 
or (2) corresponded in writing with the life insurance 
corporation concerning the policy.  Moneys or drafts otherwise 
payable according to the records of the corporation are deemed 
due and payable although the policy or contract has not been 
surrendered as required. 
    Sec. 63.  Minnesota Statutes 1990, section 345.34, is 
amended to read: 
    345.34 [DEPOSITS HELD BY UTILITIES.] 
    Any deposit held or owing by any utility made by a 
subscriber after January 1, 1960, to secure payment for, or any 
sum paid in advance for, utility services to be furnished in 
this state, excluding any charges that may lawfully be withheld, 
that has remained unclaimed by the person appearing on the 
records of the utility entitled thereto for more than one year 
after the termination of the services for which the deposit or 
advance payment was made is presumed abandoned. 
    Sec. 64.  Minnesota Statutes 1990, section 345.35, is 
amended to read: 
    345.35 [STOCK AND OTHER INTANGIBLE INTERESTS IN BUSINESS 
ASSOCIATIONS.] 
    (a) Except as provided in paragraphs (b) and (e), stock or 
other intangible ownership interest in a business association, 
the existence of which is evidenced by records available to the 
association, is presumed abandoned and, with respect to the 
interest, the association is the holder, if a dividend 
distribution or other sum payable as a result of the interest 
has remained unclaimed by the owner for seven three years and 
the owner within seven three years has not:  
    (1) communicated in writing with the association regarding 
the interest or a dividend, distribution, or other sum payable 
as a result of the interest; or 
    (2) otherwise communicated with the association regarding 
the interest or a dividend, distribution, or other sum payable 
as a result of the interest, as evidenced by a memorandum or 
other record on file with the association prepared by an 
employee of the association. 
    (b) At the expiration of a seven-year three-year period 
following the failure of the owner to claim a dividend, 
distribution, or other sum payable to the owner as a result of 
the interest, the interest is not presumed abandoned unless 
there have been at least seven three dividends, distributions, 
or other sums paid during the period, none of which has been 
claimed by the owner.  If seven three dividends, distributions, 
or other sums are paid during the seven-year three-year period, 
the period leading to a presumption of abandonment commences on 
the date payment of the first such unclaimed dividend, 
distribution, or other sum became due and payable.  If seven 
three dividends, distributions, or other sums are not paid 
during the presumptive period, the period continues to run until 
there have been seven three dividends, distributions, or other 
sums that have not been claimed by the owner. 
    (c) The running of the seven-year three-year period of 
abandonment ceases immediately upon the occurrence of a 
communication referred to in paragraph (a).  If any future 
dividend, distribution, or other sum payable to the owner as a 
result of the interest is subsequently not claimed by the owner, 
a new period of abandonment commences and relates back to the 
time a subsequent dividend, distribution, or other sum became 
due and payable. 
    (d) At the time an interest is presumed abandoned under 
this section, any dividend, distribution, or other sum then held 
for or owing to the owner as a result of the interest, and not 
previously presumed abandoned, is presumed abandoned. 
    (e) This section does not apply to any stock or other 
intangible ownership interest enrolled in a plan that provides 
for the automatic reinvestment of dividends, distributions, or 
other sums payable as a result of the interest unless the 
records available to the administrator of the plan show, with 
respect to any intangible ownership interest not enrolled in the 
reinvestment plan, that the owner has not within seven three 
years communicated in any manner described in paragraph (a). 
    (f) For purposes of this section, stock or other intangible 
ownership interest in a business association is presumed 
abandoned if: 
    (1) it is held or owing by a business association organized 
under the laws of or created in this state; or 
    (2) it is held or owing by a business association doing 
business in this state, but not organized under the laws of or 
created in this state, and the records of the business 
association indicate that the last known address of the person 
entitled thereto is in this state. 
    Sec. 65.  Minnesota Statutes 1990, section 345.36, is 
amended to read: 
    345.36 [PROPERTY OF BUSINESS ASSOCIATIONS AND BANKING OR 
FINANCIAL ORGANIZATIONS HELD IN COURSE OF DISSOLUTION.] 
    All intangible personal property distributable in the 
course of a voluntary dissolution of a business association, 
banking organization or financial organization organized under 
the laws of or created in this state, that is unclaimed by the 
owner within two years six months after the date for final 
distribution, is presumed abandoned.  
    Sec. 66.  Minnesota Statutes 1990, section 345.37, is 
amended to read: 
    345.37 [PROPERTY HELD BY FIDUCIARIES.] 
    All intangible personal property and any income or 
increment thereon, held in a fiduciary capacity for the benefit 
of another person is presumed abandoned unless the owner has, 
within five three years after it becomes payable or 
distributable, increased or decreased the principal, accepted 
payment of principal or income, corresponded in writing 
concerning the property, or otherwise indicated an interest as 
evidenced by a memorandum on file with the fiduciary if: 
    (a) the property is held by a banking organization or a 
financial organization or by a business association organized 
under the laws of or created in this state; or 
    (b) it is held by a business association, doing business in 
this state, but not organized under the laws of or created in 
this state, and the records of the business association indicate 
that the last known address of the person entitled thereto is in 
this state; or 
    (c) it is held in this state by any other person. 
    Sec. 67.  Minnesota Statutes 1990, section 345.38, is 
amended to read: 
    345.38 [PROPERTY HELD BY STATE COURTS AND PUBLIC OFFICERS 
AND AGENCIES.] 
    Subdivision 1.  All intangible personal property held for 
the owner by any court, public corporation, public authority or 
public officer of this state, or a political subdivision 
thereof, that has remained unclaimed by the owner for more than 
five three years is presumed abandoned except as provided in 
section 524.3-914. 
    Subd. 2.  This section shall not apply to property held for 
persons while residing in public correctional or other 
institutions.  As to such persons, said property shall be 
presumed abandoned if it has remained unclaimed by the owner for 
more than five three years after such residence ceases. 
    Subd. 3.  All intangible personal property held for the 
owner by any government or political subdivision or agency, that 
has remained unclaimed by the owner for more than five three 
years is presumed abandoned and is reportable pursuant to 
section 345.41, if: 
    (a) the last known address as shown on the records of the 
holder of the apparent owner is in this state; or 
    (b) no address of the apparent owner appears on the records 
of the holder; and 
    (1) the last known address of the apparent owner is in this 
state; or 
    (2) the holder is domiciled in this state and has not 
previously transferred the property to the state of the last 
known address of the apparent owner. 
    Sec. 68.  Minnesota Statutes 1990, section 345.39, is 
amended to read: 
    345.39 [MISCELLANEOUS PERSONAL PROPERTY HELD FOR ANOTHER 
PERSON.] 
    Subdivision 1.  [PRESUMED ABANDONMENT.] All intangible 
personal property, not otherwise covered by sections 345.31 to 
345.60, including any income or increment thereon, but excluding 
any charges that may lawfully be withheld, that is held or owing 
in this state in the ordinary course of the holder's business 
and has remained unclaimed by the owner for more than five three 
years after it became payable or distributable is presumed 
abandoned.  Property covered by this section includes, but is 
not limited to:  (a) unclaimed wages or worker's compensation; 
(b) deposits or payments for repair or purchase of goods or 
services; (c) credit checks or memos, or customer overpayments; 
(d) unidentified remittances, unrefunded overcharges; (e) unpaid 
claims, unpaid accounts payable or unpaid commissions; (f) 
unpaid mineral proceeds, royalties or vendor checks; and (g) 
credit balances, accounts receivable and miscellaneous 
outstanding checks.  This section does not include money orders. 
    Subd. 2.  [COOPERATIVE PROPERTY.] Notwithstanding 
subdivision 1, any profit, distribution, or other sum held or 
owing by a cooperative for or to a participating patron of the 
cooperative is presumed abandoned only if it has remained 
unclaimed by the owner for more than seven years after it became 
payable or distributable.  
    Subd. 3.  [UNPAID COMPENSATION.] Notwithstanding 
subdivision 1, unpaid compensation for personal services or 
wages, including wages represented by unpresented payroll 
checks, owing in the ordinary course of the holder's business 
that remain unclaimed by the owner for more than one year after 
becoming payable are presumed abandoned.  
    Sec. 69.  Minnesota Statutes 1990, section 345.42, 
subdivision 3, is amended to read: 
    Subd. 3.  On or before April 1 of each year, the 
commissioner shall may mail a notice to each person having an 
address listed therein who appears to be entitled to property of 
the value of $25 or more presumed abandoned under sections 
345.31 to 345.60.  Said notice shall contain: 
    (a) a statement that, according to a report filed with the 
commissioner, property is being held to which the addressee 
appears entitled; 
    (b) the name and address of the person holding the property 
and any necessary information regarding changes of name and 
address of the holder; and 
    (c) a statement that, if satisfactory proof of claim is not 
presented by the owner to the holder by the date specified in 
the published notice, the property will be placed in the custody 
of the commissioner to whom all further claims must be directed. 
    Sec. 70.  Minnesota Statutes 1991 Supplement, section 
349A.10, subdivision 3, is amended to read: 
    Subd. 3.  [LOTTERY OPERATIONS.] (a) The director shall 
establish a lottery operations account in the lottery fund.  The 
director shall pay all costs of operating the lottery, including 
payroll costs or amounts transferred to the state treasury for 
payroll costs, but not including lottery prizes, from the 
lottery operating account.  The director shall credit to the 
lottery operations account amounts sufficient to pay the 
operating costs of the lottery. 
    (b) The director may not credit in any fiscal year 1993 
amounts to the lottery operations account which when totaled 
exceed 15 14.5 percent of gross revenue to the lottery fund.  
The director may not credit in any fiscal year thereafter 
amounts to the lottery operations account which when totaled 
exceed 15 percent of gross revenue to the lottery fund in that 
fiscal year.  In computing total amounts credited to the lottery 
operations account under this paragraph the director shall 
disregard amounts transferred to or retained by lottery 
retailers as sales commissions or other compensation. 
    (c) The director of the lottery may not expend after July 
1, 1991, more than 2-3/4 percent of gross revenues in a fiscal 
year for contracts for the preparation, publication, and 
placement of advertising. 
    (d) Except as the director determines, the division is not 
subject to chapter 16A relating to budgeting, payroll, and the 
purchase of goods and services. 
    Sec. 71.  Minnesota Statutes 1991 Supplement, section 
357.021, subdivision 2, is amended to read: 
    Subd. 2.  [FEE AMOUNTS.] The fees to be charged and 
collected by the court administrator shall be as follows: 
    (1) In every civil action or proceeding in said court, the 
plaintiff, petitioner, or other moving party shall pay, when the 
first paper is filed for that party in said action, a fee of $85.
    The defendant or other adverse or intervening party, or any 
one or more of several defendants or other adverse or 
intervening parties appearing separately from the others, shall 
pay, when the first paper is filed for that party in said 
action, a fee of $85. 
    The party requesting a trial by jury shall pay $30. 
    The fees above stated shall be the full trial fee 
chargeable to said parties irrespective of whether trial be to 
the court alone, to the court and jury, or disposed of without 
trial, and shall include the entry of judgment in the action, 
but does not include copies or certified copies of any papers so 
filed or proceedings under chapter 103E, except the provisions 
therein as to appeals. 
    (2) Certified copy of any instrument from a civil or 
criminal proceeding, $5, plus 25 cents per page after the first 
page, and $3.50, plus 25 cents per page after the first page for 
an uncertified copy. 
    (3) Issuing a subpoena, $3 for each name. 
    (4) Issuing an execution and filing the return thereof; 
issuing a writ of attachment, injunction, habeas corpus, 
mandamus, quo warranto, certiorari, or other writs not 
specifically mentioned, $10. 
    (5) Issuing a transcript of judgment, or for filing and 
docketing a transcript of judgment from another court, $7.50. 
    (6) Filing and entering a satisfaction of judgment, partial 
satisfaction, or assignment of judgment, $5. 
    (7) Certificate as to existence or nonexistence of 
judgments docketed, $5 for each name certified to. 
    (8) Filing and indexing trade name; or recording notary 
commission; or recording basic science certificate; or recording 
certificate of physicians, osteopaths, chiropractors, 
veterinarians, or optometrists, $5. 
    (9) For the filing of each partial, final, or annual 
account in all trusteeships, $10. 
    (10) For the deposit of a will, $5. 
    (11) For recording notary commission, $25, of which, 
notwithstanding subdivision 1a, paragraph (b), $20 must be 
forwarded to the state treasurer to be deposited in the state 
treasury and credited to the general fund. 
    (12) All other services required by law for which no fee is 
provided, such fee as compares favorably with those herein 
provided, or such as may be fixed by rule or order of the court. 
    Sec. 72.  Minnesota Statutes 1990, section 359.01, 
subdivision 3, is amended to read: 
    Subd. 3.  [FEES.] The fee for each commission shall not 
exceed $10 $40. 
    Sec. 73.  Minnesota Statutes 1990, section 514.67, is 
amended to read: 
    514.67 [INSPECTIONS, EXAMINATIONS, OR OTHER GOVERNMENTAL 
SERVICES.] 
    All charges and expenses for any inspection, examination, 
or other governmental service of any nature now or hereafter 
authorized or required by law, including services performed by a 
deputy registrar of motor vehicles in handling an application 
for registration of a motor vehicle under section 168.33, shall 
constitute and be a first and prior lien from the date of such 
inspection, examination, or service upon all property in this 
state subject to taxation as the property of the person from 
whom such charges and expenses are by law authorized or required 
to be collected.  No record of such lien shall be deemed 
necessary, but the same shall be duly presented or proven in any 
bankruptcy, insolvency, receivership, or other similar 
proceeding, or be barred thereby.  
    As used in this section the following words and terms have 
the following meanings: 
    (1) "Person" means and includes any natural person in any 
individual or representative capacity, and any firm, 
copartnership, corporation, or other association of any nature 
or kind.  
    (2) The term "first and prior lien" means a lien equivalent 
to, and of the same force and effect as a lien for taxes; but 
any such lien or claim shall be deemed barred unless proceedings 
to enforce same shall have been commenced within two years from 
the date when such claim becomes due.  
    For purposes of this section, the charges and expenses for 
services performed by a deputy registrar of motor vehicles in 
handling an application for registration of a motor vehicle 
includes the entire amount paid to the deputy registrar for the 
registration of a motor vehicle, including all license taxes, 
filing fees, and other fees, charges, and taxes required to be 
paid for registration of the motor vehicle. 
    Sec. 74.  Minnesota Statutes 1991 Supplement, section 
626.861, subdivision 1, is amended to read: 
    Subdivision 1.  [LEVY OF ASSESSMENT.] There is levied a 
penalty assessment of 12 15 percent on each fine imposed and 
collected by the courts of this state for traffic offenses in 
violation of chapters 168 to 173 or equivalent local ordinances, 
other than a fine or forfeiture for a violation of a local 
ordinance or other law relating to the parking of a vehicle.  In 
cases where the defendant is convicted but a fine is not 
imposed, or execution of the fine is stayed, the court shall 
impose a penalty assessment of not less than $5 nor more than 
$10 when the conviction is for a misdemeanor or petty 
misdemeanor, and shall impose a penalty assessment of not less 
than $10 but not more than $50 when the conviction is for a 
gross misdemeanor or felony.  Where multiple offenses are 
involved, the penalty assessment shall be assessed separately on 
each offense for which the defendant is sentenced.  If 
imposition or execution of sentence is stayed for all of the 
multiple offenses, the penalty assessment shall be based upon 
the most serious offense of which the defendant was convicted.  
Where the court suspends a portion of a fine, the suspended 
portion shall not be counted in determining the amount of the 
penalty assessment unless the offender is ordered to pay the 
suspended portion of the fine.  Suspension of an entire fine 
shall be treated as a stay of execution for purposes of 
computing the amount of the penalty assessment.  
    Sec. 75.  Minnesota Statutes 1990, section 626.861, 
subdivision 3, is amended to read: 
    Subd. 3.  [COLLECTION BY COURT.] After a determination by 
the court of the amount of the fine or penalty assessment due, 
the court administrator shall collect the appropriate penalty 
assessment and transmit it to the county treasurer separately 
with designation of its origin as a penalty assessment, but with 
the same frequency as fines are transmitted.  Amounts collected 
under this subdivision shall then be transmitted to the state 
treasurer for deposit in the general fund for peace officers 
training, in the same manner as fines collected for the state by 
a county.  The state treasurer shall identify and report to the 
commissioner of finance all amounts deposited in the general 
fund under this section.  
    Sec. 76.  Minnesota Statutes 1991 Supplement, section 
626.861, subdivision 4, is amended to read: 
    Subd. 4.  [PEACE OFFICERS TRAINING ACCOUNT.] Receipts from 
penalty assessments must be credited to the general fund a peace 
officer training account in the special revenue fund.  For 
fiscal years 1993 and 1994, the peace officers standards and 
training board shall, and after fiscal year 1994 may, allocate 
from funds appropriated funds, net of operating expenses, as 
follows: 
    (a) Up to 30 (1) at least 25 percent may be provided for 
reimbursement to board approved skills courses.; and 
    (b) Up to 15 (2) at least 13.5 percent may be used for the 
school of law enforcement. 
    (c) The balance may be used to pay each local unit of 
government an amount in proportion to the number of licensed 
peace officers and constables employed, at a rate to be 
determined by the board.  The disbursed amount must be used 
exclusively for reimbursement of the cost of in-service training 
required under this chapter and chapter 214. 
    Sec. 77.  [STONE ARCH BRIDGE.] 
    Notwithstanding any other law to the contrary, the board of 
Hennepin county commissioners, in its capacity as the county 
board or as the Hennepin county regional rail authority, shall 
transfer legal title to the James J. Hill stone arch bridge to 
the commissioner of transportation for a consideration of 
$1,001.  The deed of conveyance shall provide for reversion of 
the property to the county in the event the county has need of 
the bridge for light rail transit. 
    Sec. 78.  [LOTTERY ADVERTISING EXPENDITURES.] 
    The director of the state lottery may not reduce 
expenditures for advertising in fiscal year 1993 in order to 
comply with the requirement in section 70 that amounts credited 
to the lottery operations account in fiscal year 1993 not exceed 
14.5 percent of gross revenue in that fiscal year.  
    Sec. 79.  [REPEALER.] 
    Minnesota Statutes 1990, section 211A.04, subdivision 2, is 
repealed.  Minnesota Statutes 1991 Supplement, section 97A.485, 
subdivision 1a, is repealed. 
    Sec. 80.  [EFFECTIVE DATES.] 
    (a) Except as provided in paragraph (b), this article is 
effective the day following final enactment. 
    (b) Sections 19, 24 to 29, 34 to 45, 52 to 72, and 74 to 79 
are effective July 1, 1992.  Section 20 is effective for taxable 
years after December 31, 1989. 

                                ARTICLE 4

                        STATE GOVERNMENT AFFAIRS
Section 1.  [STATE GOVERNMENT AFFAIRS; APPROPRIATIONS.] 
    Unless otherwise indicated, all sums set forth in the 
columns designated "1992 and 1993 APPROPRIATION CHANGE" are to 
be added to or reduced from general fund appropriations made by 
Laws 1991, chapter 345, or another named law, for the fiscal 
years ending June 30, 1992, and June 30, 1993, respectively.  
Amounts to be reduced are designated by parentheses. 

                             SUMMARY BY FUND
                          1992          1993           TOTAL
APPROPRIATION 
CHANGE             $   (1,611,000)$     (806,000)$   (2,417,000)
                                         APPROPRIATION CHANGE
                                          1992         1993 
Sec. 2.  LEGISLATURE                                 (3,564,000)
 Any part of this reduction may be taken 
from balances carried forward. 
 After the effective date of this 
section, the information policy office 
is responsible for the administration 
of the state information systems 
project.  By November 1, 1992, the 
information policy office will evaluate 
the usefulness of continuing this 
information systems directory and 
report its findings to the legislature 
and the commissioner of administration. 
Sec. 3.  SUPREME COURT                                  600,000 
 $5,000 is for alternative dispute 
resolution in Anoka county.  
 $50,000 is for a judges workload, 
updated weighted caseload time survey, 
and telecommunications study.  
 $625,000 is to be distributed to 
qualified legal services programs 
according to the percentages in 
Minnesota Statutes, section 480.242, 
subdivision 2, paragraphs (a) and (b). 
The supreme court, in consultation with 
representatives of official and free 
lance court reporters, shall study and 
report to the legislature on the 
certification of shorthand court 
reporters by January 1, 1993.  The 
study shall consider testing, 
registration, continuing education, 
discipline, and fees necessary to 
offset the cost of the certification 
program. 
By January 1, 1993, the supreme court 
shall adopt rules governing vacation 
leave of judges and paid judicial leave 
for educational and other professional 
purposes.  In developing these rules, 
the supreme court shall consider 
employee leave plans of the legislative 
and executive branches, including 
graduated accrual systems.  
By January 1, 1993, the supreme court 
shall adopt rules governing the 
acceptance of fees, honoraria, or other 
compensation for work performed by 
judges on time for which they are 
compensated by the state or related in 
any way to their official positions or 
duties.  In developing these rules, the 
supreme court shall consider the 
prohibitions in Minnesota Statutes, 
section 43A.38, subdivision 2. 
Sec. 4.  COURT OF APPEALS                               (28,000)
Sec. 5.  DISTRICT COURTS                 180,000       (247,000)
Sec. 6.  BOARD OF PUBLIC
DEFENSE                                                  60,000
Approved complement addition:
General fund - 1
 $140,000 is for an automated data 
collection system and transfer of 
fiscal agent functions from the 
counties to the state. 
 $160,000 is for costs associated with 
defense of persons involved in the 
sting operation at Stillwater 
correctional facility.  
 The board of public defense may forward 
to the respective host counties in the 
multicounty judicial districts one-half 
of the individual districts' allotted 
funding for fiscal year 1993 as close 
to July 1, 1992, as possible.  Expenses 
of district public defender offices in 
the multicounty districts shall be paid 
from these funds through December 31, 
1992.  The host counties may use 
interest earnings on these funds for 
public defense related expenses which 
occur prior to January 1, 1993, but 
which may be paid after January 1, 
1993.  After December 31, 1992, the 
board may only pay expenses which occur 
on or after January 1, 1993. 
 Notwithstanding any law to the 
contrary, district public defenders in 
multicounty districts who currently 
have fringe benefits provided through a 
county program shall continue to be 
eligible to receive these benefits 
after December 31, 1992.  Persons hired 
in these positions after the effective 
date of this section are eligible to 
receive these benefits under the same 
conditions as those hired before.  
Participation is subject to Minnesota 
Statutes, section 611.26, subdivision 
9.  After December 31, 1992, premiums 
may be billed by the counties to the 
board of public defense in a manner 
prescribed by the board. 
 District public defenders in 
multicounty districts who currently 
participate in the public employee 
retirement association may continue 
their participation after December 31, 
1992.  District public defenders in 
multicounty districts hired after the 
effective date of this section may 
participate in the public employees 
retirement association under the same 
conditions as those hired before. 
 The board may transfer funds among 
appropriations and programs. 
$50,000 the second year is for one 
position relating to planning and 
technical services. 
Sec. 7.  GOVERNOR AND
LIEUTENANT GOVERNOR                      503,000        105,000 
 $503,000 in fiscal year 1992 is for 
plaintiffs' fee award for attorneys' 
fees and expenses in the case of Jane 
Hodgson et al. vs. State of Minnesota.  
 $365,000 the second year is to cover 
costs of employees in the governor's 
office who are currently being charged 
to other agencies. 
 On August 15 of each year the 
commissioner of finance shall report to 
the chairs of the economic and state 
affairs division of the senate finance 
committee and the state government 
division of the house appropriations 
committee those personnel costs 
incurred by the office of the governor 
and the lieutenant governor that were 
supported by appropriations of other 
agencies during the previous fiscal 
year.  The office of the governor shall 
inform the chairs of the divisions 
before initiating any interagency 
agreements. 
Sec. 8.  STATE AUDITOR                                  (30,000)
Sec. 9.  STATE TREASURER                                (63,000)
Sec. 10.  ATTORNEY GENERAL                50,000       (600,000)
$50,000 is to pay the costs of 
appealing the trial court decision in 
the case of Sheridan and Dianne Skeen 
vs. State of Minnesota.  
Sec. 11.  OFFICE OF STRATEGIC
AND LONG-RANGE PLANNING                                 (60,000)
 No reductions may be made to the 
environmental quality board.  
$50,000 of appropriations previously 
made must be used to pay for services 
previously rendered by the Minneapolis 
public library. 
 The temporary unclassified position 
currently used to administer the 
generic environmental impact study on 
timber harvesting must be continued 
with the current incumbent until the 
study is completed.  Upon completion of 
the study, responsibility for analyzing 
and implementing study recommendations 
is transferred to the department of 
natural resources under Minnesota 
Statutes, section 15.039, at which time 
the complement of the office of 
strategic and long-range planning must 
be reduced by one and the complement of 
the department of natural resources 
must be increased by one. 
Sec. 12.  BOARD OF INVESTMENT                           (20,000)
Sec. 13.  ADMINISTRATION                                826,000 
The balance of the appropriation made 
to the commissioner of administration 
by Laws 1991, chapter 345, article 1, 
section 17, subdivision 4, for the 
development of a framework for an 
integrated infrastructure management 
system is available until June 30, 
1993, to improve the capital budget 
planning process. 
 $85,000 of the appropriation in fiscal 
year 1993 is to be used to manage the 
costs of freight for state purchases.  
 No reductions may be made for the 
intergovernmental information systems 
advisory council. 
 No reductions may be made to the land 
management information center. 
 $13,781,000 of the appropriation for 
costs relating to agency relocation, 
consolidation, and collocation in Laws 
1991, chapter 345, article 1, section 
17, subdivision 4, is available until 
expended.  $75,000 of this amount is 
for a grant to Itasca county to plan 
and do other preliminary work for 
construction of the Itasca Center.  
 Up to $50,000 of this amount is for a 
grant to the city of St. Paul for the 
stabilization and renovation of the 
Warren Burger House, available upon 
receipt of dollar-for-dollar nonstate 
funds as a cash match or in-kind 
contribution of materials and supplies. 
 The commissioner of administration is 
directed to review existing general 
project fund accounts for repairs, 
betterments and relocation of agencies, 
to cancel unobligated funding no longer 
required for specific projects, and to 
transfer $300,000 to the general fund 
by June 30, 1992.  
 $240,000 is for matching grants to 
public television stations.  
 $720,000 is for public television 
equipment needs.  Equipment grant 
allocations shall be made after 
considering the recommendations of the 
Minnesota Public Television Association.
$116,000 the second year is for 
equipment grants to public educational 
radio stations, which must be allocated 
after considering the recommendations 
of the Association of Minnesota Public 
Educational Radio Stations. 
$278,000 the second year is for 
equipment grants to affiliate stations 
of Minnesota Public Radio, 
Incorporated, which must be allocated 
after considering the recommendations 
of Minnesota Public Radio, Incorporated.
 The commissioner of administration is 
directed to transfer $82,000 in fiscal 
year 1992 and $186,000 in fiscal year 
1993 from the special revenue parking 
fund to the general fund and to provide 
for a reserve for replacement of 
parking facilities from the proceeds of 
the fee increases.  
 The commissioner of administration is 
directed to transfer travel provider 
rebates of $40,000 in fiscal year 1992 
and $45,000 in fiscal year 1993 from 
the motor pool to the general fund.  
Future rebates will be transferred 
annually.  
 The commissioner of administration is 
directed to transfer bookstore excess 
earnings of $250,000 in fiscal year 
1992 and $50,000 in fiscal year 1993 to 
the general fund.  Future excess 
earnings exceeding amounts necessary 
for cash flow purposes will be 
transferred annually.  
 The commissioner of administration 
shall study the possible purchase and 
staffing of a bookmobile; rental of 
space in St. Paul, Minneapolis, or 
other high traffic locations; 
advertising, participation in book 
fairs, and displays at events.  
Consideration may be given to use of 
future excess revenues as debt service 
for a new retail location. 
 The matching requirements in Laws 1991, 
chapter 345, article 1, section 17, 
subdivision 9, need not be met in 
either year of the biennium. 
 $200,000 is to be divided equally 
between the Northeast STARS region and 
the Southeast STARS region to install 
and administer a regional 
telecommunications network pilot 
project to validate the STARS 
telecommunications regions development 
study findings in the regions and 
continue work on the master plan for 
regional telecommunications.  The funds 
must be matched in-kind or monetarily 
dollar-for-dollar by the region.  
 The master plan must include a 
technology assessment that compares the 
function, performance, benefits, and 
costs of available telecommunications 
technologies, including full and 
fractional DS1 narrowband 
communications, DS3 wideband 
communications, and AM and FM video on 
fiber optics.  The master plan should 
review regional requirements for 
telecommunications and make 
recommendations on the standardization 
of telecommunications architecture in 
relation to the technology assessment.  
The master plan must establish a policy 
for participation in a communications 
system. 
 Selection of participants shall be 
based on geographical proximity and 
natural connections within the general 
regional areas surrounding Duluth and 
Rochester.  Participants shall be 
selected from the following 
categories:  education, state and local 
governments, and other public service 
entities including but not limited to 
libraries, courts and criminal justice 
agencies, health and human services, 
community and economic development 
entities, and cultural and nonprofit 
organizations or institutions. 
Participants shall demonstrate 
collaboration with one or more other 
entities in making their connections to 
the regional system.  Participants in 
the pilot project and master plan must 
be represented on the regional advisory 
organization and together determine the 
design of the pilot and future master 
plan of regional telecommunications 
network systems.  
 If successful, this matching fund 
program for pilot projects and master 
planning must be considered for 
replication statewide in the next 
biennium. 
 $4,000 the second year is for the state 
band. 
Sec. 14.  FINANCE                       (176,000)     2,096,000
Approved complement addition:
General fund - 1
 $1,800,000 in fiscal year 1993 is for 
the continuation of the statewide 
systems project.  This appropriation is 
available until expended.  
 Reductions of $176,000 in fiscal year 
1992 and $176,000 in fiscal year 1993 
are from administrative expenditures.  
 The position of deputy commissioner is 
reestablished in the department of 
finance.  
 An estimated $166,000 will be 
transferred to the general fund in 
fiscal year 1993 through a 
comprehensive review of statewide 
indirect costs.  $42,000 in fiscal year 
1993 is for implementation of a 
comprehensive review of statewide 
indirect cost allocation policies and 
collection methodologies to increase 
recoveries to the general fund. 
 $1,450,000 shall be reimbursed to the 
general fund in fiscal year 1993 
through a six-month write-off cycle for 
unclaimed warrants.  $20,000 in fiscal 
year 1993 is for temporary staff to 
handle one-time additional workload to 
process claims for warrants.  
 $10,000 is for a refund to the city of 
Redwood Falls of the application fee 
and deposit for allocation No. 378 
received by the department of finance 
during calendar year 1991 from the city 
under Minnesota Statutes, section 
474A.091.  
 Up to $300,000 is to support enhanced 
collection activities in the 
departments of finance, human services, 
and revenue.  Any unspent balance for 
these collection activities may be 
transferred to the accounts receivable 
restructuring study.  This 
appropriation is available upon 
enactment. 
$100,000 is for the attorney general 
and the commissioners of finance, 
revenue, and human services, under the 
supervision of the legislative 
commission on planning and fiscal 
policy, to conduct a study to identify 
long-term options on restructuring the 
state of Minnesota accounts receivable 
process and recommend changes in 
policies governing management of 
receivables.  The study should address 
organizational changes that may improve 
collections, accounting mechanisms that 
would better monitor agency 
performance, and incentive structures 
to improve the level of performance.  
The results of the study must be 
reported to the legislative commission 
on planning and fiscal policy. 
Sec. 15.  EMPLOYEE RELATIONS                           (269,000)
Approved complement addition:
Special revenue - 3
 In order to control bureaucratic bloat, 
i.e., top-heavy bureaucracies, the 
department shall present an analysis of 
a span of control ratio (number of 
employees per manager) throughout state 
government.  The commissioner shall 
prepare a report indicating the ratio 
of managers and supervisors to other 
employees in state government by agency 
program.  The department shall report 
to the appropriate committees of the 
legislature by January 1, 1993.  The 
report must recommend an appropriate 
ratio and a plan to control 
bureaucratic bloat where it exists. 
 $500,000 appropriated by Laws 1987, 
chapter 404, section 19, subdivision 5; 
$116,000 appropriated by Laws 1988, 
chapter 686, article 1, section 9, item 
(a); and $40,000 appropriated by Laws 
1989, chapter 335, article 1, section 
18, subdivision 3, to establish the 
statewide fringe benefit plan must be 
transferred from the employee insurance 
trust fund to the general fund by 
January 1, 1993. 
 Notwithstanding any law to the 
contrary, during fiscal year 1993 
$944,000 in excess police state aid 
collected by the public employees 
retirement association must be 
transferred to the general fund. 
Sec. 16.  REVENUE                       (580,000)      (580,000)
 The revolving fund which is used to pay 
the initial costs of local property tax 
assessment ordered by the department of 
revenue is abolished and the balance of 
$250,000 in fiscal year 1993 is 
transferred to the general fund. 
 The department of revenue is directed 
to add collection activities and to 
increase or redirect collections 
initiatives as necessary to increase 
revenue collections by $1,800,000 in 
fiscal year 1993. 
Sec. 17.  TRADE AND         
ECONOMIC DEVELOPMENT 
Subdivision 1.  Total       
Appropriation Changes                 (1,046,000)     2,619,000
Subd. 2.  Community Development
 The appropriation reduction in fiscal 
year 1992 includes a reduction of 
$200,000 for a grant to the World Trade 
Center Corporation for establishment of 
an annual medical exposition, trade 
fair, and health care congress to begin 
in 1993.  The remainder of this 
appropriation does not cancel but is 
available to the World Trade Center 
Corporation until expended. 
 $50,000 of the unobligated balance in 
the economic recovery grant account in 
the special revenue fund shall be 
transferred to the general fund by June 
30, 1992.  
 $1,422,000 is for grants to the cities 
of Minneapolis and St. Paul for debt 
service payments due on bonds issued 
for metropolitan area parks. 
$2,356,000 the second year is for 
payment of a grant to the metropolitan 
council for metropolitan area regional 
parks maintenance and operation. 
 From money previously appropriated for 
economic recovery grants, the 
commissioner shall make up to $500,000 
available for grants of up to $50,000 
to assist in the purchase of advanced 
technology used in production 
operations located in facilities 
outside the seven-county metropolitan 
area.  The amount of each grant shall 
not exceed 50 percent of the purchase 
price of eligible equipment.  Requests 
for the grants must be accompanied by a 
synopsis of a plan for any necessary 
employee retraining.  The commissioner 
shall develop criteria for awarding 
grants and is encouraged to coordinate 
the awards with other programs such as 
the job skills partnership program 
under Minnesota Statutes, chapter 
116L.  A company may receive no more 
than one grant per year.  Any funds not 
obligated by May 31, 1993, may be used 
for economic recovery grants. 
 $200,000 of the unobligated balance in 
the agricultural and economic 
development account in the special 
revenue fund shall be transferred to 
the general fund by June 30, 1992. 
The department of trade and economic 
development shall provide $50,000 from 
the economic recovery grant program to 
the city of Brooklyn Center to serve as 
the project coordinator of the first 
stage of a four-city business retention 
and local market expansion pilot 
project.  The city shall share all 
results and written reports with the 
department of trade and economic 
development. 
$250,000 the first year and $250,000 
the second year are for transfer to the 
commissioner of jobs and training for a 
wage subsidy program to alleviate 
summer youth unemployment under 
Minnesota Statutes, section 268.552.  
No more than five percent of this 
appropriation may be used for 
administration. 
Subd. 3.  Minnesota Trade Office 
 The appropriation for grants to 
nonprofit organizations to support 
international cultural and educational 
exchange programs and to make grants to 
and loans to qualifying Minnesota 
businesses for the support of the 
international partnership program is 
reduced by $20,000.  
 Any balance in excess of $1,000,000 in 
the export finance working capital 
account on June 30 of each year must be 
transferred by the commissioner to the 
general fund.  It is estimated that 
$225,000 will transfer in fiscal year 
1992, and $70,000 will transfer in 
fiscal year 1993. 
Subd. 4.  Tourism 
 The office of tourism shall meet with 
representatives from department of 
natural resources-operated parks, hotel 
and motel associations, Indian gaming 
associations, and other organizations 
to plan a unified state-based 
telephone/electronic mail reservation 
system.  The office shall report to the 
appropriate legislative committees by 
January 15, 1993. 
 The department shall define 
beneficiaries of state appropriations 
for the promotion of significant 
tourism-related events and attempt to 
recover those appropriations.  Money 
recovered, and money returned under 
contracts to host major events, must be 
credited to a special account to be 
used, when directly appropriated, to 
attract and host significant 
tourism-related events. 
 The department shall assist in the 
reestablishment and promotion of the 
Northern League, a baseball minor 
league, which will begin operations in 
the Upper Midwest in 1993. 
$150,000 the second year is for a grant 
to Nicollet county to establish a 
tourist information and interpretive 
center on the site of the treaty of 
Traverse des Sioux.  The grant is 
available only as matched by $2 of 
nonstate money for each $1 of this 
appropriation. 
Subd. 5.  Business 
Development and Analysis 
 $50,000 is reduced from the fiscal year 
1992 appropriation for Minnesota jobs 
skills partnership grants.  
 $125,000 is reduced from the fiscal 
year 1992 appropriation for a grant to 
Advantage Minnesota, Inc.  
 The department shall proceed with the 
small business incubator pilot project 
authorized in Laws 1991, chapter 345, 
article 1, section 23, subdivision 5, 
and need not adopt rules for the 
project.  
 The unobligated appropriation balance 
in Laws 1983, chapter 334, section 6, 
for jobs skills partnership grants 
shall cancel to the general fund.  The 
estimated cancellation is $43,000.  
 The unobligated appropriation balance 
in Laws 1987, chapter 386, article 10, 
section 9, with carry forward authority 
in Laws 1989, chapter 335, article 1, 
section 25, subdivision 3, for jobs 
skills partnership grants shall cancel 
to the general fund.  The estimated 
cancellation is $20,000. 
 No reductions may be made to the 
Minnesota motion picture board. 
 The Minnesota motion picture board 
shall investigate and promote the use 
of rural Minnesota as a setting for 
video, film, and television production 
and location.  
 The Minnesota motion picture board 
shall study and make recommendations 
for the establishment of an annual 
Asian film festival.  The board shall 
report and make recommendations to the 
appropriate committees of the 
legislature by January 15, 1993. 
Sec. 18.  MILITARY AFFAIRS              (542,000)      (842,000)
 The reduction of $542,000 in fiscal 
year 1992 and $542,000 in fiscal year 
1993 is associated with the closing of 
armories and the expenses attributed to 
maintenance and operation of armories.  
 Except for reduction of the tuition 
reimbursement for enlistment or 
reenlistment, reductions totaling 
$300,000 in either fiscal year 1992 or 
1993 shall be allocated at the 
discretion of the department.  
Sec. 19.  VETERANS AFFAIRS                              (29,000)
Sec. 20.  POLICE AND FIRE AMORTIZATION
AID                                                  (2,020,000)
This reduction is due to excess 
investment earnings by the Minneapolis 
police and fire relief associations and 
reduces the aid apportionment otherwise 
payable to the city of Minneapolis on 
July 15, September 15, and November 15, 
1992. 
Sec. 21.  CONTINGENT ACCOUNTS                         1,240,000
This appropriation is available with 
the approval of the governor after 
receiving the recommendation of the 
legislative advisory commission under 
Minnesota Statutes, section 3.30. 
 $800,000 is for expenses of the 
commission on reform and efficiency. 
Sec. 22.  CANCELLATIONS     
Subdivision 1.  Freight expense
 The commissioner of administration 
through executive authority is directed 
to improve management of freight costs 
by developing an aggressive freight 
management program.  The commissioner 
of administration shall identify 
projected savings from this program and 
provide a listing to the commissioner 
of finance.  The commissioner of 
finance shall direct the agencies to 
reduce allotments as these savings 
occur and cancel them to the general 
fund at the end of the fiscal year.  
Projected saving for this program is 
$1,901,000 in fiscal year 1993. 
Subd. 2.  Intertech
 The commissioner of finance shall 
direct agencies to reduce allotments to 
reflect a credit in Intertech billings 
of $2,000,000 which will result in 
savings to the general fund by June 30, 
1993.  This credit is based upon extra 
earnings made in the prior fiscal year 
that caused certain services to exceed 
their net revenue projections.  
Subd. 3.  Plant management retained 
earnings
 The commissioner of administration is 
directed to refund in fiscal year 1993 
$1,400,000 of excess earnings in the 
plant management internal service fund 
of which $1,000,000 will be savings to 
the general fund.  The commissioner of 
administration shall furnish a list of 
the general fund refunds prior to 
preparation of agencies' 1993 annual 
budget plans and the commissioner of 
finance shall direct the agencies to 
reduce their fiscal year 1993 
allotments.  
Subd. 4.  Improve workers' 
compensation case management 
 The commissioner of employee relations 
is directed to conduct comprehensive 
medical utilization reviews of state 
employee workers' compensation medical 
claims.  Any other law to the contrary 
notwithstanding, reductions to original 
medical billings resulting from 
utilization reviews shall be accounted 
for by the commissioner and deposited 
in a separate account within the 
special revenue fund according to 
procedures specified by the 
commissioner of finance.  Deposits to 
this account shall be transferred to 
the appropriate funds in proportion to 
the claims savings attributable.  The 
commissioner shall provide staff to 
administer a return-to-work unit within 
the health, safety, and workers' 
compensation program to enhance 
procedures and agency personnel 
practices in order to facilitate the 
return of claimants to suitable state 
employment.  It is estimated that the 
general fund savings attributable to 
this program will yield a net savings 
to the general fund of $222,000 in 
fiscal year 1992 and $1,350,000 in 
fiscal year 1993.  Three new positions 
are to staff and implement a 
return-to-work unit which will manage 
internal file review and reduce costs. 
Subd. 5.  Prior injuries and
illnesses 
 The commissioner of employee relations 
is directed to develop and coordinate 
implementation procedures to enhance 
agency registrations of state 
employees' prior injuries and 
illnesses.  The commissioner shall also 
develop and implement procedures for 
medical claim file reviews, intensive 
monitoring of potential second injury 
claims, and expedition of second injury 
and supplemental reimbursement 
applications from the special 
compensation fund administered by the 
commissioner of labor and industry.  
Implementation of the procedures 
required under this section are 
expected to yield savings to the 
general fund of $708,000 in fiscal year 
1992 and $465,000 in fiscal year 1993.  
Any other law to the contrary 
notwithstanding, reimbursements in 
excess of the total obtained in fiscal 
year 1991 shall be deposited in a 
special account within the special 
revenue fund and transferred to the 
appropriate funds from which associated 
claims originate according to 
procedures and by dates specified by 
the commissioner of finance. 
Subd. 6.  Pretax FICA and Medicare 
savings 
 The commissioner of employee relations, 
in conjunction with the commissioner of 
finance, shall develop and implement 
procedures to account for the savings 
accruing to agency budgets due to 
reductions to federal old age, 
survivors, disability, and health 
insurance program and supplemental 
Medicare obligations that occur as a 
result of reductions to taxable gross 
income for employees participating in 
health, dental, and life plans 
administered by the commissioner of 
employee relations.  The savings that 
accrue to agencies' budgets shall be 
accounted for, unallotted, and canceled 
to the appropriate funds according to 
the procedures and dates specified by 
the commissioner of finance.  It is 
expected that savings to the general 
fund resulting from the actions 
required under this section will be 
$576,000 in fiscal year 1993. 
Subd. 7.  Insurance Premiums                                    
 This reduction is to agency budgets to 
account for premium holidays to be 
declared by the commissioner of 
employee relations.  For periods deemed 
appropriate by the commissioner of 
employee relations to adjust balances 
in the accounts of the insurance trust 
fund, the commissioner shall declare 
premium holidays in the basic life and 
dental insurance plans in the health 
and benefits program within the current 
biennium.  The commissioner of finance 
shall reduce agency allotments and 
cancel to the respective funds savings 
accruing to agency budgets as a result 
of premium holidays or reductions made 
effective by the commissioner of 
employee relations.  It is estimated 
that these cancellations will save the 
general fund $623,000 the first year 
and $4,900,000 the second year. 
Subd. 8.  MSRS 
 The commissioner of finance shall 
reduce agencies' fiscal year 1993 
annual spending plans by the amount of 
the savings attributable to reductions 
to the employer retirement contribution 
rate to the state employees retirement 
fund.  It is estimated that the savings 
to the general fund will be $1,731,000 
in fiscal year 1993. 
Subd. 9.  Governor's office employees
 $365,000, representing the cost of 
employees in the governor's office who 
are currently being charged to other 
agencies, must be taken from allotments 
to those agencies and canceled to the 
general fund. 
Sec. 23.  BUILDING PROJECT 
 Effective July 1, 1992, no state agency 
or department shall propose and the 
legislature shall not consider building 
or relocation projects without 
reviewing implications of utilizing 
information technology on space 
utilization.  
    Sec. 24.  [MANAGING REDUCTIONS.] 
    The general fund appropriation reductions to an agency in 
this article may be taken by the agency in either year of the 
biennium, except that an agency in the executive branch, other 
than a constitutional officer, must obtain the advance approval 
of the commissioner of finance before moving a reduction to a 
different fiscal year.  Moving a reduction out of fiscal year 
1993 does not increase the agency's appropriation base for the 
1994-1995 biennium. 
    Sec. 25.  Minnesota Statutes 1990, section 3.305, is 
amended to read: 
    3.305 [LEGISLATIVE COORDINATING COMMISSION; BUDGET REVIEW 
AUTHORITY.] 
    Subdivision 1.  [REVIEW.] The administrative budget request 
of any statutory commission the majority of whose members are 
members of the legislature shall be submitted to the legislative 
coordinating commission for review and comment before its 
submission to the finance committee of the senate and the 
appropriations committee of the house of representatives.  No 
such commission shall employ additional personnel without first 
having received the recommendation of the legislative 
coordinating commission.  The commission shall establish the 
compensation of all employees of any statutory commission, 
except classified employees of the legislative audit commission, 
the majority of whose members are members of the legislature.  
    Subd. 2.  [TRANSFERS.] The legislative coordinating 
commission may transfer unobligated balances among general fund 
appropriations to the legislature. 
    Sec. 26.  Minnesota Statutes 1990, section 3.736, 
subdivision 8, is amended to read: 
    Subd. 8.  [LIABILITY INSURANCE.] A state agency, including 
an entity defined as a part of the state in section 3.732, 
subdivision 1, clause (1), may procure insurance against 
liability of the agency and its employees for damages resulting 
from the torts of the agency and its employees.  Procurement of 
the insurance is a waiver of the defense limits of governmental 
immunity liability under subdivisions 4 and 4a only to the 
extent of the liability stated in the policy but that valid and 
collectible insurance, including where applicable, proceeds from 
the Minnesota Guarantee Fund, exceeds those limits and covers 
the claim.  Purchase of insurance has no other effect on the 
liability of the agency and its employees beyond the coverage 
provided by the policy.  Procurement of commercial insurance, 
participation in the risk management fund under section 16B.85, 
or provisions of an individual self-insurance plan with or 
without a reserve fund or reinsurance does not constitute a 
waiver of any governmental immunities or exclusions. 
    Sec. 27.  [4A.04] [COOPERATIVE CONTRACTS.] 
    (a) The director may apply for, receive, and expend money 
from municipal, county, regional, and other planning agencies; 
apply for, accept, and disburse grants and other aids for 
planning purposes from the federal government and from other 
public or private sources; and may enter into contracts with 
agencies of the federal government, local governmental units, 
the University of Minnesota, and other educational institutions, 
and private persons as necessary to perform the director's 
duties.  Contracts made pursuant to this section are not subject 
to the provisions of chapter 16B, as they relate to competitive 
bidding. 
    (b) The director may apply for, receive, and expend money 
made available from federal sources or other sources for the 
purposes of carrying out the duties and responsibilities of the 
director relating to local and urban affairs.  
    (c) All money received by the director pursuant to this 
section shall be deposited in the state treasury and is 
appropriated to the director for the purposes for which the 
money has been received.  The money shall not cancel and is 
available until expended.  
    Sec. 28.  Minnesota Statutes 1991 Supplement, section 
16A.45, subdivision 1, is amended to read: 
    Subdivision 1.  [CANCEL; CREDIT.] Once each fiscal year the 
commissioner and the treasurer shall cancel upon their books all 
outstanding unpaid commissioner's warrants, except warrants 
issued for federal assistance programs, that have been issued 
and delivered for more than five years six months prior to that 
date and credit to the general fund the respective amounts of 
the canceled warrants.  These warrants are presumed abandoned 
under section 345.38 and are subject to the provisions of 
sections 345.31 to 345.60.  The commissioner and the treasurer 
shall cancel upon their books all outstanding unpaid 
commissioner's warrants issued for federal assistance programs 
that have been issued and delivered for more than the period of 
time set pursuant to the federal program and credit to the 
general fund and the appropriate account in the federal fund, 
the amount of the canceled warrants. 
    Sec. 29.  Minnesota Statutes 1990, section 16A.45, is 
amended by adding a subdivision to read: 
    Subd. 4.  [LOCATING UNPAID WARRANTS.] A person may not seek 
or receive from another person, or contract with a person for, a 
fee or compensation for locating outstanding unpaid 
commissioner's warrants before the warrants have been reported 
to the commissioner of commerce under section 345.41. 
    Sec. 30.  Minnesota Statutes 1990, section 16A.48, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PROCEDURE.] A verified claim may be 
submitted to the concerned agency head for refund of money in 
the treasury to which the state is not entitled.  The claimant 
must submit with the claim a complete statement of facts and 
reasons for the refund.  The agency head shall consider and 
approve or disapprove the claim, attach a statement of reasons, 
and forward the claim to the commissioner for settlement.  No 
claim may be approved unless the agency head first obtains from 
the attorney general written certification that the refund will 
not jeopardize any rights of setoff or recoupment held by the 
state and any subdivision thereof, including local governments.  
Upon the exercise of any setoff or recoupment, the attorney 
general shall certify the amount of the remainder, if any, that 
may be appropriated and paid. 
    Sec. 31.  Minnesota Statutes 1991 Supplement, section 
16A.723, subdivision 2, is amended to read: 
    Subd. 2.  [APPROPRIATION.] The reimbursements collected 
under subdivision 1 are appropriated for payment of residence 
expenses relating to, including dry cleaning, carpet cleaning, 
and the repair and replacement of household equipment and 
supplies used for events conducted at the governor's residence.  
    Sec. 32.  Minnesota Statutes 1990, section 16B.85, 
subdivision 5, is amended to read: 
    Subd. 5.  [RISK MANAGEMENT FUND NOT CONSIDERED INSURANCE.] 
A state agency, including an entity defined as a part of the 
state in section 3.732, subdivision 1, clause (1), may procure 
insurance against liability of the agency and its employees for 
damages resulting from the torts of the agency and its 
employees.  The procurement of this insurance constitutes a 
waiver of the limits or of governmental liability under section 
3.736, subdivisions 4 and 4a, only to the extent of the 
liability stated in the policy but that valid and collectible 
insurance, including where applicable, proceeds from the 
Minnesota Guarantee Fund, exceeds those limits and covers the 
claim.  Purchase of insurance has no other effect on the 
liability of the agency and its employees beyond the coverage as 
provided.  Procurement of commercial insurance, participation in 
the risk management fund under this section, or provisions of an 
individual self-insurance plan with or without a reserve fund or 
reinsurance does not constitute a waiver of any of the 
governmental immunities or exclusions under section 3.736. 
    Sec. 33.  Minnesota Statutes 1990, section 116J.9673, 
subdivision 4, is amended to read: 
    Subd. 4.  [WORKING CAPITAL ACCOUNT.] An export finance 
authority working capital account is created as a special 
account in the state treasury.  All premiums and interest 
collected under subdivision 3, clause (6), must be deposited 
into this account.  Fees collected must be credited to the 
general fund.  The balance in the account may exceed $1,000,000 
through accumulated earnings.  Any balance in excess of 
$1,000,000 on June 30 of every year must be transferred to the 
general fund.  Money in the account including interest earned 
and appropriations made by the legislature for the purposes of 
this section, is appropriated annually to the finance authority 
for the purposes of this section.  The balance in the account 
may decline below $1,000,000 as required to pay defaults on 
guaranteed loans. 
    Sec. 34.  Minnesota Statutes 1990, section 270.063, is 
amended to read: 
    270.063 [COLLECTION OF DELINQUENT TAXES.] 
    For the purpose of collecting delinquent state tax 
liabilities, there is appropriated to the commissioner of 
revenue an amount representing the cost of collection, not to 
exceed one-third of the amount collected by contract with 
collection agencies, revenue departments of other states, or 
attorneys to enable the commissioner to reimburse these 
agencies, departments, or attorneys for this service, or provide 
for the operating costs of collection activities of the 
department of revenue.  The commissioner shall report quarterly 
on the status of this program to the chair of the house tax and 
appropriation committees and senate tax and finance committees.  
    Notwithstanding section 16A.15, subdivision 3, the 
commissioner of revenue may authorize the prepayment of 
sheriff's fees, attorney fees, fees charged by revenue 
departments of other states, or court costs to be incurred in 
connection with the collection of delinquent tax liabilities 
owed to the commissioner of revenue.  
    Sec. 35.  Minnesota Statutes 1990, section 270.71, is 
amended to read: 
    270.71 [ACQUISITION AND RESALE OF SEIZED PROPERTY.] 
    For the purpose of enabling the commissioner of revenue to 
purchase or redeem seized property in which the state of 
Minnesota has an interest arising from a lien for unpaid taxes, 
or to provide for the operating costs of collection activities 
of the department of revenue, there is appropriated to the 
commissioner an amount representing the cost of such 
purchases or, redemptions, or collection activities.  Seized 
property acquired by the state of Minnesota to satisfy unpaid 
taxes shall be resold by the commissioner.  The commissioner 
shall preserve the value of seized property while controlling 
it, including but not limited to the procurement of insurance.  
For the purpose of refunding the proceeds from the sale of 
levied or redeemed property which are in excess of the actual 
tax liability plus costs of acquiring the property, there is 
hereby created a levied and redeemed property refund account in 
the agency fund.  All amounts deposited into this account are 
appropriated to the commissioner of revenue.  The commissioner 
shall report quarterly on the status of this program to the 
chairs of the house taxes and appropriations committees and 
senate taxes and tax laws and finance committees.  
    Sec. 36.  Minnesota Statutes 1990, section 349.161, 
subdivision 4, is amended to read: 
    Subd. 4.  [FEES.] The annual fee for a distributor's 
license is $2,500 $3,500. 
    Sec. 37.  Minnesota Statutes 1990, section 349.163, 
subdivision 2, is amended to read: 
    Subd. 2.  [LICENSE; FEE.] A license under this section is 
valid for one year.  The annual fee for the license is 
$2,500 $5,000. 
    Sec. 38.  Minnesota Statutes 1990, section 352.04, 
subdivision 2, is amended to read: 
    Subd. 2.  [EMPLOYEE CONTRIBUTIONS.] The employee 
contribution to the fund must be equal to 4.15 3.99 percent of 
salary. These contributions must be made by deduction from 
salary as provided in subdivision 4. 
    Sec. 39.  Minnesota Statutes 1990, section 352.04, 
subdivision 3, is amended to read: 
    Subd. 3.  [EMPLOYER CONTRIBUTIONS.] (a) The employer 
contribution to the fund must be equal to 4.29 4.12 percent of 
salary. 
    (b) By January 1 of each year, the board of directors shall 
report to the legislative commission on pensions and retirement, 
the chair of the committee on appropriations of the house of 
representatives, and the chair of the committee on finance of 
the senate on the amount raised by the employer and employee 
contribution rates in effect and whether the total amount is 
less than, the same as, or more than the actuarial requirement 
determined under section 356.215. 
     (c) If the legislative commission on pensions and 
retirement, based on the most recent valuation performed by its 
actuary, determines that the total amount raised by the employer 
and employee contributions under subdivision 2 and paragraph (b) 
is less than the actuarial requirements determined under section 
356.215, the employer and employee rates must be increased by 
equal amounts as necessary to meet the actuarial requirements.  
The employee rate may not exceed 4.15 percent of salary and the 
employer rate may not exceed 4.29 percent of salary.  The 
increases are effective on the next January 1 following the 
determination by the commission.  The executive director of the 
Minnesota state retirement system shall notify employing units 
of any increases under this paragraph. 
    Sec. 40.  Minnesota Statutes 1990, section 353.27, 
subdivision 13, is amended to read: 
    Subd. 13.  [CERTAIN WARRANTS CANCELED.] A warrant payable 
from the retirement fund remaining unpaid for a period of five 
years six months must be canceled into the retirement fund and 
not into the general fund. 
    Sec. 41.  Minnesota Statutes 1990, section 356.65, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, unless the context clearly indicates otherwise, the 
following terms shall have the meanings given to them:  
    (a) "Public pension fund" means any public pension plan as 
defined in section 356.61 and any Minnesota volunteer 
firefighters relief association which is established pursuant to 
chapter 424A and governed pursuant to sections 69.771 to 69.776. 
    (b) "Unclaimed public pension fund amounts" means any 
amounts representing accumulated member contributions, any 
outstanding unpaid annuity, service pension or other retirement 
benefit payments, including those made on warrants issued by the 
commissioner of finance, which have been issued and delivered 
for more than six years months prior to the date of the end of 
the fiscal year applicable to the public pension fund, and any 
applicable interest to the credit of:  
    (1) an inactive or former member of a public pension fund 
who is not entitled to a defined retirement annuity and who has 
not applied for a refund of those amounts within five years 
after the last member contribution was made; 
    (2) a deceased inactive or former member of a public 
pension fund if no survivor is entitled to a survivor benefit 
and no survivor, designated beneficiary or legal representative 
of the estate has applied for a refund of those amounts within 
five years after the date of death of the inactive or former 
member. 
    Sec. 42.  Minnesota Statutes 1991 Supplement, section 
357.021, subdivision 2, is amended to read: 
    Subd. 2.  [FEE AMOUNTS.] The fees to be charged and 
collected by the court administrator shall be as follows: 
    (1) In every civil action or proceeding in said court, the 
plaintiff, petitioner, or other moving party shall pay, when the 
first paper is filed for that party in said action, a fee of 
$85 $110. 
    The defendant or other adverse or intervening party, or any 
one or more of several defendants or other adverse or 
intervening parties appearing separately from the others, shall 
pay, when the first paper is filed for that party in said 
action, a fee of $85 $110. 
    The party requesting a trial by jury shall pay $30. 
    The fees above stated shall be the full trial fee 
chargeable to said parties irrespective of whether trial be to 
the court alone, to the court and jury, or disposed of without 
trial, and shall include the entry of judgment in the action, 
but does not include copies or certified copies of any papers so 
filed or proceedings under chapter 103E, except the provisions 
therein as to appeals. 
    (2) Certified copy of any instrument from a civil or 
criminal proceeding, $5, plus 25 cents per page after the first 
page, and $3.50, plus 25 cents per page after the first page for 
an uncertified copy. 
    (3) Issuing a subpoena, $3 for each name. 
     (4) Issuing an execution and filing the return thereof; 
issuing a writ of attachment, injunction, habeas corpus, 
mandamus, quo warranto, certiorari, or other writs not 
specifically mentioned, $10. 
     (5) Issuing a transcript of judgment, or for filing and 
docketing a transcript of judgment from another court, $7.50. 
     (6) Filing and entering a satisfaction of judgment, partial 
satisfaction, or assignment of judgment, $5. 
     (7) Certificate as to existence or nonexistence of 
judgments docketed, $5 for each name certified to. 
     (8) Filing and indexing trade name; or recording notary 
commission; or recording basic science certificate; or recording 
certificate of physicians, osteopaths, chiropractors, 
veterinarians, or optometrists, $5. 
     (9) For the filing of each partial, final, or annual 
account in all trusteeships, $10. 
     (10) For the deposit of a will, $5. 
     (11) All other services required by law for which no fee is 
provided, such fee as compares favorably with those herein 
provided, or such as may be fixed by rule or order of the court. 
    The fees in clauses (3) and (4) need not be paid by a 
public authority or the party the public authority represents.  
    Sec. 43.  Minnesota Statutes 1990, section 357.18, is 
amended by adding a subdivision to read: 
    Subd. 3.  [SURCHARGE.] In addition to the fees imposed in 
subdivision 1, a $2 surcharge shall be collected:  on each fee 
charged under subdivision 1, clauses (1) and (6), and for each 
abstract certificate under subdivision 1, clause (4).  Forty 
cents of each surcharge shall be retained by the county to cover 
its administrative costs and $1.60 shall be paid to the state 
treasury and credited to the general fund. 
    Sec. 44.  Minnesota Statutes 1990, section 466.06, is 
amended to read: 
    466.06 [LIABILITY INSURANCE.] 
    The governing body of any municipality may procure 
insurance against liability of the municipality and its 
officers, employees, and agents for damages, including punitive 
damages, resulting from its torts and those of its officers, 
employees, and agents, including torts specified in section 
466.03 for which the municipality is immune from liability.  The 
insurance may provide protection in excess of the limit of 
liability imposed by section 466.04.  If a municipality other 
than a school district has the authority to levy taxes, the 
premium costs for such insurance may be levied in excess of any 
per capita or local tax rate tax limitation imposed by statute 
or charter.  Any independent board or commission in the 
municipality having authority to disburse funds for a particular 
municipal function without approval of the governing body may 
similarly procure liability insurance with respect to the field 
of its operation.  The procurement of such insurance constitutes 
a waiver of the limits of governmental liability under section 
466.04 only to the extent of the liability stated in the policy 
but that valid and collectible insurance, including where 
applicable, proceeds from the Minnesota Guarantee Fund, exceeds 
those limits and covers the claim.  The purchase of insurance 
has no other effect on the liability of the municipality beyond 
the coverage so provided or its employees.  Procurement of 
commercial insurance, participation in a self-insurance pool 
pursuant to section 471.981, or provision for an individual 
self-insurance plan with or without a reserve fund or 
reinsurance shall not constitute a waiver of any of the 
governmental immunities conferred under section 466.03 or 
exclusions.  
    Sec. 45.  Minnesota Statutes 1990, section 490.123, is 
amended by adding a subdivision to read: 
    Subd. 1c.  [JUDGES NOT PARTICIPATING IN POSTRETIREMENT 
FUND.] For retired judges not participating in the 
postretirement fund, as defined in section 11A.18, the amount 
necessary to pay retirement benefits is appropriated from the 
general fund to the executive director of the Minnesota state 
retirement system.  The executive director shall certify to the 
commissioner of finance the total amount required to pay such 
benefits each year on or before July 15.  The certification 
shall include the number of anticipated benefit recipients, 
including survivors and designated beneficiaries, the total 
estimated requirements for each recipient group, and the total 
amount for all groups.  The commissioner of finance shall, after 
any necessary reconciling adjustments or corrections, transfer 
the total required amount to a separate account within the 
judges' retirement fund.  Any unencumbered balance at the end of 
the first year does not cancel, but is available for the second 
year.  Any unencumbered balance remaining on June 30 of the 
second year of a biennium cancels and shall be credited to the 
general fund.  
    Sec. 46.  Minnesota Statutes 1991 Supplement, section 
508.82, is amended to read: 
    508.82 [REGISTRAR'S FEES.] 
    The fees to be paid to the registrar shall be as follows: 
    (1) of the fees provided herein, five percent of the fees 
collected under clauses (3), (4), (11), (13), (14), (15), (17), 
(18), and (19), for filing or memorializing shall be paid to the 
state treasurer and credited to the general fund; plus a $2 
surcharge shall be charged and collected in addition to the 
total fees charged for each transaction under clauses (2) to 
(4), (6), (11), (13), (15), and (19), with 40 cents of this 
surcharge to be retained by the county to cover its 
administrative costs and $1.60 to be paid to the state treasury 
and credited to the general fund; 
    (2) for registering each original certificate of title, and 
issuing a duplicate of it, $30; 
    (3) for registering each instrument transferring the fee 
simple title for which a new certificate of title is issued and 
for the issuance and registration of the new certificate of 
title, $30; 
    (4) for the entry of each memorial on a certificate and 
endorsements upon duplicate certificates, $15; 
    (5) for issuing each mortgagee's or lessee's duplicate, 
$10; 
    (6) for issuing each residue certificate, $20; 
    (7) for exchange certificates, $10 for each certificate 
canceled and $10 for each new certificate issued; 
    (8) for each certificate showing condition of the register, 
$10; 
    (9) for any certified copy of any instrument or writing on 
file in the registrar's office, the same fees allowed by law to 
county recorders for like services; 
    (10) for a noncertified copy of any instrument or writing 
on file in the office of the registrar of titles, or any 
specified page or part of it, an amount as determined by the 
county board for each page or fraction of a page specified.  If 
computer or microfilm printers are used to reproduce the 
instrument or writing, a like amount per image; 
    (11) for filing two copies of any plat in the office of the 
registrar, $30; 
    (12) for any other service under this chapter, such fee as 
the court shall determine; 
    (13) for issuing a duplicate certificate of title pursuant 
to the directive of the examiner of titles in counties in which 
the compensation of the examiner is paid in the same manner as 
the compensation of other county employees, $50, plus $10 to 
memorialize; 
    (14) for issuing a duplicate certificate of title pursuant 
to the directive of the examiner of titles in counties in which 
the compensation of the examiner is not paid by the county or 
pursuant to an order of the court, $10; 
    (15) for filing a condominium plat or an amendment to it in 
accordance with chapter 515, $30; 
    (16) for a copy of a condominium plat filed pursuant to 
chapters 515 and 515A, the fee shall be $1 for each page of the 
condominium plat with a minimum fee of $10; 
    (17) for filing a condominium declaration and plat or an 
amendment to it in accordance with chapter 515A, $10 for each 
certificate upon which the document is registered and $30 for 
the filing of the condominium plat or an amendment thereto; 
    (18) for the filing of a certified copy of a plat of the 
survey pursuant to section 508.23 or 508.671, $10; 
    (19) for filing a registered land survey in triplicate in 
accordance with section 508.47, subdivision 4, $30; 
    (20) for furnishing a certified copy of a registered land 
survey in accordance with section 508.47, subdivision 4, $10.  
    Sec. 47.  Minnesota Statutes 1991 Supplement, section 
508A.82, is amended to read: 
    508A.82 [REGISTRAR'S FEES.] 
    The fees to be paid to the registrar shall be as follows:  
    (1) of the fees provided herein, five percent of the fees 
collected under clauses (3), (4), (11), (13), (14), (15), (17), 
and (19), for filing or memorializing shall be paid to the state 
treasurer and credited to the general fund; plus a $2 surcharge 
shall be charged and collected in addition to the total fees 
charged for each transaction under clauses (2) to (4), (6), 
(11), (13), (15), and (19), with 40 cents of this surcharge to 
be retained by the county to cover its administrative costs and 
$1.60 to be paid to the state treasury and credited to the 
general fund; 
    (2) for registering each original CPT, and issuing a 
duplicate of it, $30; 
    (3) for registering each instrument transferring the fee 
simple title for which a new CPT is issued and for the issuance 
and registration of the new CPT, $30; 
    (4) for the entry of each memorial on a certificate and 
endorsements upon duplicate CPTs, $15; 
    (5) for issuing each mortgagee's or lessee's duplicate, 
$10; 
    (6) for issuing each residue CPT, $20; 
    (7) for exchange CPTs, $10 for each CPT canceled and $10 
for each new CPT issued; 
    (8) for each certificate showing condition of the register, 
$10; 
    (9) for any certified copy of any instrument or writing on 
file in the registrar's office, the same fees allowed by law to 
county recorders for like services; 
    (10) for a noncertified copy of any instrument or writing 
on file in the office of the registrar of titles, or any 
specified page or part of it, an amount as determined by the 
county board for each page or fraction of a page specified.  If 
computer or microfilm printers are used to reproduce the 
instrument or writing, a like amount per image; 
    (11) for filing two copies of any plat in the office of the 
registrar, $30; 
    (12) for any other service under sections 508A.01 to 
508A.85, the fee the court shall determine; 
    (13) for issuing a duplicate CPT pursuant to the directive 
of the examiner of titles in counties in which the compensation 
of the examiner is paid in the same manner as the compensation 
of other county employees, $50, plus $10 to memorialize; 
    (14) for issuing a duplicate CPT pursuant to the directive 
of the examiner of titles in counties in which the compensation 
of the examiner is not paid by the county or pursuant to an 
order of the court, $10; 
    (15) for filing a condominium plat or an amendment to it in 
accordance with chapter 515, $30; 
    (16) for a copy of a condominium plat filed pursuant to 
chapters 515 and 515A, the fee shall be $1 for each page of the 
plat with a minimum fee of $10; 
    (17) for filing a condominium declaration and condominium 
plat or an amendment to it in accordance with chapter 515A, $10 
for each certificate upon which the document is registered and 
$30 for the filing of the condominium plat or an amendment to 
it; 
    (18) in counties in which the compensation of the examiner 
of titles is paid in the same manner as the compensation of 
other county employees, for each parcel of land contained in the 
application for a CPT, as the number of parcels is determined by 
the examiner, a fee which is reasonable and which reflects the 
actual cost to the county, established by the board of county 
commissioners of the county in which the land is located; 
    (19) for filing a registered land survey in triplicate in 
accordance with section 508A.47, subdivision 4, $30; 
    (20) for furnishing a certified copy of a registered land 
survey in accordance with section 508A.47, subdivision 4, $10.  
    Sec. 48.  Minnesota Statutes 1990, section 609.131, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [PETTY MISDEMEANOR SCHEDULE.] Prior to August 1, 
1992, the conference of chief judges shall establish a schedule 
of misdemeanors that shall be treated as petty misdemeanors.  A 
person charged with a violation that is on the schedule is not 
eligible for court-appointed counsel.  
    Sec. 49.  Minnesota Statutes 1990, section 609.5315, is 
amended by adding a subdivision to read: 
    Subd. 6.  [REPORTING REQUIREMENT.] The appropriate agency 
shall provide a written record of each forfeiture incident to 
the state auditor.  The record shall include the amount 
forfeited, date, and a brief description of the circumstances 
involved.  Reports shall be made on a monthly basis in a manner 
prescribed by the state auditor.  The state auditor shall report 
annually to the legislature on the nature and extent of 
forfeitures. 
    Sec. 50.  Minnesota Statutes 1991 Supplement, section 
611.27, subdivision 7, is amended to read: 
    Subd. 7.  [PUBLIC DEFENDER SERVICES; RESPONSIBILITY.] 
Notwithstanding subdivision 4, the state's obligation for the 
costs of the public defender services is limited to the 
appropriations made to the board of public defense.  Services 
and expenses beyond those appropriated for in cases where 
adequate representation cannot be provided by the district 
public defender shall be the responsibility of the counties 
within a judicial district.  Expenses shall be distributed among 
the counties in proportion to their populations state board of 
public defense. 
    Sec. 51.  Minnesota Statutes 1990, section 611.27, is 
amended by adding a subdivision to read: 
    Subd. 8.  [PUBLIC DEFENDER SERVICES; STATE PUBLIC DEFENDER 
REVIEW.] In a case where the chief district public defender does 
not believe that the office can provide adequate representation 
the chief public defender of the district shall immediately 
notify the state public defender. 
    Sec. 52.  Minnesota Statutes 1990, section 611.27, is 
amended by adding a subdivision to read: 
    Subd. 9.  [PUBLIC DEFENDER SERVICES; REQUEST TO THE COURT.] 
The chief district public defender with the approval of the 
state public defender may request that the chief judge of the 
district court, or a district court judge designated by the 
chief judge, authorize appointment of counsel other than the 
district public defender in such cases. 
    Sec. 53.  Minnesota Statutes 1990, section 611.27, is 
amended by adding a subdivision to read: 
    Subd. 10.  [PUBLIC DEFENDER SERVICES; NO PERMANENT STAFF.] 
The chief public defender may not request the court nor may the 
court order the addition of permanent staff under subdivision 7. 
    Sec. 54.  Minnesota Statutes 1990, section 611.27, is 
amended by adding a subdivision to read: 
    Subd. 11.  [PUBLIC DEFENDER SERVICES; APPOINTMENT OF 
COUNSEL.] If the court finds that the provision of adequate 
legal representation, including associated services, is beyond 
the ability of the district public defender to provide, the 
court shall order counsel to be appointed, with compensation and 
expenses to be paid under the provisions of this subdivision and 
subdivision 7.  Counsel in such cases shall be appointed by the 
chief district public defender.  If the court issues an order 
denying the request, the court shall make written findings of 
fact and conclusions of law.  Upon denial, the chief district 
public defender may immediately appeal the order denying the 
request to the court of appeals and may request an expedited 
hearing.  
    Sec. 55.  Minnesota Statutes 1990, section 611.27, is 
amended by adding a subdivision to read: 
    Subd. 12.  [PUBLIC DEFENDER SERVICES; COMPENSATION AND 
EXPENSES.] Counsel appointed under this subdivision shall 
document the time worked and expenses incurred in a manner 
prescribed by the chief district public defender. 
    Sec. 56.  Minnesota Statutes 1990, section 611.27, is 
amended by adding a subdivision to read: 
    Subd. 13.  [PUBLIC DEFENSE SERVICES; CORRECTIONAL FACILITY 
INMATES.] All billings for services rendered and ordered under 
subdivision 7 shall require the approval of the chief district 
public defender before being forwarded on a monthly basis to the 
state public defender.  In cases where adequate representation 
cannot be provided by the district public defender and where 
counsel has been appointed under a court order, the state public 
defender shall forward to the commissioner of finance all 
billings for services rendered under the court order.  The 
commissioner shall pay for services from county criminal justice 
aid retained by the commissioner of revenue for that purpose 
under section 477A.0121, subdivision 4. 
    The costs of appointed counsel and associated services in 
cases arising from new criminal charges brought against indigent 
inmates who are incarcerated in a Minnesota state correctional 
facility are the responsibility of the state board of public 
defense.  In such cases the state public defender may follow the 
procedures outlined in this section for obtaining court-ordered 
counsel. 
    Sec. 57.  Minnesota Statutes 1990, section 611.27, is 
amended by adding a subdivision to read: 
    Subd. 14.  [PUBLIC DEFENDER SERVICES; REPORT.] The state 
public defender shall report to the legislature in the 
supplemental budget or the biennial budget document the number 
and costs of all successful petitions during the previous fiscal 
year. 
    Sec. 58.  [FINDINGS.] 
    The legislature finds that the state of Minnesota faces 
immediate and serious financial problems.  As a result, public 
employers may have insufficient resources to maintain their work 
forces at the current level.  The legislature determines that 
the public interest is best served if public employers' budgets 
can be balanced without layoffs of public employees.  This 
section and section 59 are enacted as a temporary measure to 
help solve the financial crisis facing units of state and local 
government, while minimizing layoffs of public employees. 
    Sec. 59.  [EMPLOYER-PAID HEALTH INSURANCE.] 
    Subdivision 1.  [STATE EMPLOYEES.] A state employee, as 
defined in Minnesota Statutes, section 43A.02, subdivision 21, 
or an employee of the state university system, community college 
system, higher education board, Minnesota state retirement 
system, the teachers retirement association, or the public 
employees retirement association, is eligible for state-paid 
hospital, medical, and dental benefits if the person: 
    (1) is eligible for state-paid insurance under Minnesota 
Statutes, section 43A.18, or other law; 
    (2) (i) has at least 25 years of service in the state civil 
service as defined in Minnesota Statutes, section 43A.02, 
subdivision 10; or (ii) has at least 25 years of service as an 
employee of the Minnesota state retirement system, the teachers 
retirement association, or the public employees retirement 
association; or (iii) has at least 25 years of service credit in 
the public pension plan that the person is a member of on the 
day before retirement; 
    (3) upon retirement is immediately eligible for a 
retirement annuity; 
    (4) is at least 55 and not yet 65 years of age; and 
    (5) retires on or after July 1, 1992, and before October 1, 
1992. 
     During the biennium ending June 30, 1993, an executive 
branch state agency may not hire a replacement for a person who 
retires under this subdivision, except under conditions 
specified by the commissioners of finance and employee relations.
    Subd. 2.  [OTHER PUBLIC EMPLOYEES.] The University of 
Minnesota or the governing body of a city, county, school 
district, joint vocational technical district formed under 
Minnesota Statutes, sections 136C.60 to 136C.69, or other 
political subdivision of the state may provide employer-paid 
hospital, medical, and dental benefits to a person who: 
    (1) is eligible for employer-paid insurance under 
collective bargaining agreements or personnel plans in effect on 
the day before the effective date of this section; 
    (2) has at least 25 years of service credit in the public 
pension plan that the person is a member of on the day before 
retirement; or in the case of a teacher has a total of at least 
25 years of service credit in the teachers retirement 
association, a first-class city teacher retirement fund, or any 
combination of these groups; 
    (3) upon retirement is immediately eligible for a 
retirement annuity; 
    (4) is at least 55 and not yet 65 years of age; and 
    (5) in the case of a school district employee, retires on 
or after May 15, 1992, and before July 21, 1992; and in the case 
of an employee of another employer in this subdivision, retires 
on or after July 1, 1992, and before October 1, 1992.  
     An employer that pays for insurance under this subdivision 
may not exclude any eligible employees. 
    Subd. 3.  [CONDITIONS; COVERAGE.] An employee who is 
eligible both for the health insurance benefit under this 
section and for an early retirement incentive under a collective 
bargaining agreement or personnel plan established by the 
employer must select either the early retirement incentive in 
the collective bargaining agreement, personnel plan, or the 
incentive provided under this section, but may not receive 
both.  For purposes of this section, a person retires when the 
person terminates active employment and applies for retirement 
benefits.  The retired employee is eligible for single and 
dependent coverages and employer payments to which the person 
was entitled immediately before retirement, subject to any 
changes in coverage and employer and employee payments through 
collective bargaining or personnel plans, for employees in 
positions equivalent to the position from which the employee 
retired.  The retired employee is not eligible for employer-paid 
life insurance.  Eligibility ceases when the retired employee 
attains the age of 65, or when the employee chooses not to 
receive the retirement benefits for which the employee has 
applied, or when the employee is eligible for employer-paid 
health insurance from a new employer.  Coverages must be 
coordinated with relevant health insurance benefits provided 
through the federally sponsored Medicare program.  Nothing in 
this section obligates, limits, or otherwise affects the right 
of the University of Minnesota to provide employer-paid 
hospital, medical, dental benefits, and life insurance to any 
person. 
    Subd. 4.  [RULE OF 90.] An employee who retires under this 
section using the rule of 90 must not be included in the 
calculations required by Minnesota Statutes, section 356.85. 
    Subd. 5.  [APPLICATION OF OTHER LAWS.] Unilateral 
implementation of this section by a public employer is not an 
unfair labor practice for purposes of Minnesota Statutes, 
chapter 179A.  The authority provided in this section for an 
employer to pay health insurance costs for certain retired 
employees is not subject to the limits in Minnesota Statutes, 
section 179A.20, subdivision 2a.  
    Sec. 60.  [REPEALER.] 
    Minnesota Statutes 1990, section 41A.051, is repealed.  
Minnesota Statutes 1990, section 270.185, is repealed effective 
January 1, 1993.  On that date, any balance in the reassessment 
account of the special revenue fund is transferred to the 
general fund.  The repeal of Minnesota Statutes 1991 Supplement, 
section 326.991, provided for in Laws 1991, chapter 306, section 
26, is postponed until July 31, 1994. 
    Sec. 61.  [LAYOFFS.] 
    It is the policy of the legislature to maximize the 
delivery of services to the public.  If layoffs of state 
employees as defined in Minnesota Statutes, chapter 43A, are 
necessary in an agency with 50 or more employees, the agency 
shall make an effort to reduce at least the same percentage of 
management and supervisory personnel as line and support 
personnel for the biennium ending June 30, 1993.  This section 
does not modify any employee rights contained in any other law 
or collective bargaining agreement under Minnesota Statutes, 
chapter 179A. 
    Sec. 62.  [LEGISLATIVE INTENT.] 
    The amendments in this article to Minnesota Statutes, 
sections 3.736, 16B.85, and 466.06, are intended to clarify, 
rather than to change, the original intent of the statutes 
amended. 
    Sec. 63.  [EFFECTIVE DATE.] 
    This article is effective the day following final 
enactment, except that sections 36, 37, 42, 43, 46, and 47, are 
effective July 1, 1992. 
    Sections 26, 32, and 44 apply to cases pending or brought 
on or after their effective date. 

                               ARTICLE 5 

                           HUMAN DEVELOPMENT 
    Section 1.  [HUMAN DEVELOPMENT; APPROPRIATIONS.] 
    The sums shown in the columns marked "APPROPRIATIONS" are 
appropriated from the general fund, or another fund named, to 
the agencies and for the purposes specified in this act, to be 
available for the fiscal years indicated for each purpose.  The 
figures "1992" and "1993," where used in this article, mean that 
the appropriation or appropriations listed under them are 
available for the year ending June 30, 1992, or June 30, 1993, 
respectively.  Where a dollar amount appears in parenthesis, it 
means a reduction of an appropriation.  

                             SUMMARY BY FUND
                          1992          1993           TOTAL
APPROPRIATION CHANGE 
General               ($1,799,000)    $3,802,000     $2,003,000
Special Revenue            63,000        755,000        818,000
                                           APPROPRIATIONS 
                                       Available for the Year 
                                           Ending June 30 
                                          1992         1993 
Sec. 2.  HUMAN SERVICES 
Subdivision 1.  Total General Fund 
Appropriation                          1,639,000     (2,497,000)
This appropriation is added to the 
appropriation in Laws 1991, chapter 
292, article 1, section 2. 
 For the fiscal year ending June 30, 
1993, total state spending is offset by 
$65,000,000 in provider payments 
deposited in the general fund under the 
broad-based health care provider tax 
program. 
 The commissioner of finance shall 
prepare a biennial budget for fiscal 
years 1994-1995 that does not include 
revenues from the provider surcharge 
that exceed the estimated cost 
associated with the Healthright 
program.  The commissioner of finance 
shall also prepare a plan to phase out 
the non-Healthright provider surcharges 
by June 30, 1995. 
Subd. 2.  Human Services 
Administration                        (2,150,000)    (3,939,000)
 Up to $500,000 may be transferred 
within the department as the 
commissioner considers necessary, with 
the advance approval of the 
commissioner of finance. 
 $75,000 is appropriated to the 
commissioner for a cooperative project 
with Alexandria technical college 
regarding MAXIS data.  If the 
commissioner and the college jointly 
develop a feasible project, the 
commissioner may transfer the $75,000 
to the college and may transfer summary 
data from the MAXIS data system to the 
college for the purpose of developing 
graphic representation of the data for 
legislative and executive branch use, 
as requested, utilizing geographic 
information systems.  For purposes of 
this section, summary data has the 
meaning given it in Minnesota Statutes, 
section 13.02, subdivision 19. 
Subd. 3.  Finance and Management
Administration                           -0-           (180,000)
Subd. 4.  Economic Support and
Services to the Elderly                  -0-            (32,000)
 Because nine percent or more of the 
total preadmission screenings done for 
a SAIL county under Minnesota Statutes, 
section 256B.0917, subdivision 4, in 
fiscal year 1991 were not listed in the 
October 17, 1991, printing of OD-8043 
(State of Minnesota, Department of 
Human Services Long Term Care 
Management Division, Preadmission 
Screening Records for MA and Private 
Pay Persons Reconciliation List) due to 
computer error, the commissioner shall 
make a one-time adjustment on May 1, 
1992, to that county's fiscal year 1992 
estimated number of preadmission 
screenings by the actual number of 
county-verified unlisted names. 
Subd. 5.  Services to Special
Needs Adults                          (2,803,000)    (2,227,000)
Subd. 6.  Economic Support and     
Transition Services for Families
and Individuals                      (12,989,000)   (11,611,000)
Unexpended fiscal year 1991 start work 
grant funds may be used to pay fiscal 
year 1991 work readiness services 
obligations. 
For the biennium ending June 30, 1993, 
general assistance grant funds are 
appropriated to the commissioner of 
human services to cover the costs of 
the refugee cash assistance and refugee 
medical assistance programs that exceed 
the federal fiscal year 1992 
appropriation for those programs.  
Federal funds received on or after 
September 30, 1992, as reimbursement 
for the federal fiscal year 1992 
refugee cash assistance and refugee 
medical assistance costs must be 
deposited in the general assistance 
grant account and are appropriated for 
general assistance grants. 
 The commissioner shall transfer up to 
$2,800,000 of state funds from the 
basic sliding fee program to the AFDC 
child care program to establish the 
base for the non-STRIDE AFDC child care 
program.  The department shall make the 
transfer over the biennium ending June 
30, 1993.  The amount of federal child 
care and development block grant funds 
committed to the basic sliding fee 
program must be increased by an amount 
equivalent to the transfer.  The state 
funds transferred to the AFDC child 
care program will provide state 
matching funds for additional federal 
funds earned by the department pursuant 
to Public Law Number 100-485. 
 Money appropriated for fiscal year 1992 
for paying contract institutions fees 
for cashing public assistance warrants 
under Laws 1991, chapter 292, article 
1, section 2, subdivision 4, does not 
cancel, but is available for that 
purpose in fiscal year 1993. 
 Any unexpended balance of the $50,000 
appropriation in Laws 1991, chapter 
292, article 1, section 2, subdivision 
5, in fiscal year 1992 for 
modifications to adult foster care 
homes under provisions of Minnesota 
Statutes 1991 Supplement, section 
256B.0917, does not cancel and is 
available for these purposes for fiscal 
year 1993. 
Subd. 7.  Health Care for Families     
and Individuals                       23,026,000     24,108,000
 A nursing facility downsized under 
Minnesota Statutes, section 256B.431, 
subdivision 2m, and ineligible for the 
OBRA adjustments in Minnesota Statutes, 
section 256B.431, subdivision 7, shall 
receive a one-time state grant of 
$50,600 to cover the up-front costs of 
meeting OBRA requirements. 
 The commissioner of human services 
shall submit a plan to the legislature 
to downsize an existing 48 bed 
intermediate care facility for persons 
with mental retardation or related 
conditions located in Dakota county.  
The plan must include the projected 
costs of the facility's rate adjustment 
and the alternative services for the 
residents being relocated, and the 
impact of the downsizing of the 
facility on the quality of care for 
clients. 
 For fiscal year 1993, the commissioner 
may transfer up to $250,000 from the 
Minnesota supplemental aid grants 
account to the medical assistance 
grants account to reimburse the medical 
assistance account for nursing facility 
receivership costs incurred by 
counties.  These transfers must be made 
from the account of the county of 
financial responsibility for particular 
receivership costs and in the amount of 
individual county cost. 
 For the fiscal year ending June 30, 
1993, $390,000 is transferred from 
Minnesota supplemental aid group 
residential housing grants to Rule 14 
supported housing grants.  This amount 
represents Minnesota supplemental aid 
payments for 170 unlicensed supported 
housing beds which are permanently 
removed from the group residential 
housing census.  These beds must not be 
replaced by other group residential 
housing agreements. 
 Up to $30,000 of the appropriation for 
preadmission screening alternative care 
for fiscal year 1992 contained in Laws 
1991, chapter 292, article 1, section 
2, subdivision 6, may be transferred to 
the health care administration account 
to pay the state's share of county 
claims for conducting nursing home 
assessments for persons with mental 
illness or mental retardation as 
required by Public Law Number 100-203. 
 For the fiscal year ending June 30, 
1993, a newly constructed or newly 
established intermediate care facility 
for the mentally retarded that is 
developed and financed during that 
period shall not be subject to the 
equity requirements in Minnesota 
Statutes, section 256B.501, subdivision 
11, paragraph (d), or Minnesota Rules, 
part 9553.0060, subpart 3, item F, 
provided that the provider's interest 
rate does not exceed the interest rate 
available through state agency tax 
exempt financing. 
The paragraph in Laws 1991, chapter 
292, article 1, section 2, subdivision 
9, providing for the implementation of 
a reduced reimbursement rate for 
therapy services provided by a physical 
or occupational therapy assistant is 
repealed.  Services provided by a 
physical therapy assistant shall be 
reimbursed at the same rate as services 
performed by a physical therapist when 
the services of the physical therapy 
assistant are provided under the 
direction of a physical therapist who 
is on the premises.  Services provided 
by a physical therapy assistant that 
are provided under the direction of a 
physical therapist who is not on the 
premises shall be reimbursed at 65 
percent of the physical therapist 
rate.  Services provided by an 
occupational therapy assistant shall be 
reimbursed at the same rate as services 
performed by an occupational therapist 
when the services of the occupational 
therapy assistant are provided under 
the direction of the occupational 
therapist who is on the premises.  
Services provided by an occupational 
therapy assistant that are not provided 
under the direction of an occupational 
therapist who is not on the premises 
shall be reimbursed at 65 percent of 
the occupational therapist rate. 
 During the biennium ending June 30, 
1993, the commissioner shall identify 
long-term care providers with high 
mortgage rates on existing debt and 
work with them and their mortgagees or 
other lenders to negotiate debt 
refinancing at lower interest rates 
that produce annual interest expense 
savings under existing laws.  
 Effective for the biennium beginning 
July 1, 1993, the commissioner shall 
allocate sufficient home- and 
community-based waivered service 
openings and money to serve persons who 
are being relocated from existing 
intermediate care facilities for the 
mentally retarded that are projected to 
close and who otherwise would have been 
required to be relocated into newly 
developed intermediate care facilities 
for the mentally retarded. 
In the event that a large 
community-based facility licensed under 
Minnesota Rules, parts 9525.0215 to 
9525.0355, for more than 16 beds but 
not certified as an intermediate care 
facility for persons with mental 
retardation or related conditions 
closes and alternative services for the 
residents are necessary, the 
commissioner may transfer on a 
quarterly basis to the medical 
assistance state account from each 
affected county's community social 
service allocation an amount equal to 
the state share of medical assistance 
reimbursement for residential and day 
habilitation services funded by medical 
assistance and provided to clients for 
whom the county is financially 
responsible. 
 For the fiscal year ending June 30, 
1993, if a facility which is in 
receivership under Minnesota Statutes, 
section 245A.12 or 245A.13, is sold to 
an unrelated organization:  (a) the 
facility shall be considered a newly 
established facility for rate setting 
purposes notwithstanding any provisions 
to the contrary in Minnesota Statutes, 
section 256B.501, subdivision 11; and 
(b) the facility's historical basis for 
the physical plant, land, and land 
improvements for each facility must not 
exceed the prior owner's aggregate 
historical basis for these same assets 
for each facility.  The allocation of 
the purchase price between land, land 
improvements, and physical plant shall 
be based on the real estate appraisal 
using the depreciated replacement cost 
method. 
 The number of home- and community-based 
waiver openings used for persons with 
mental retardation or related 
conditions who are being discharged 
from nursing homes shall not exceed 50 
openings in fiscal year 1992 and 80 
openings in fiscal year 1993. 
 The commissioner shall not spend money 
to study and shall not implement a 
system to pay hospitals under the 
medical assistance and general 
assistance medical care programs on a 
peer grouping basis during the biennium 
ending June 30, 1993. 
 The money appropriated to health care 
management to increase federal medical 
assistance reimbursement may not be 
included in the base for the biennium 
beginning July 1, 1993.  The 
commissioner shall request continued 
funding based upon the results of the 
increased effort to maximize federal 
funding and shall include an evaluation 
of those results when requesting 
additional funding. 
 Before implementing the managed care 
initiatives for people with 
developmental disabilities or mental 
illness, the commissioner shall report 
to the chair of the house of 
representatives human resources 
division of the appropriations 
committee and the chair of the senate 
human resources division of the finance 
committee regarding the proposed 
program.  The report should include the 
number of people likely to be affected 
by the program and the effects of the 
proposal on the services they receive.  
Fiscal information should be provided, 
including the projected costs and 
savings under the proposal for the 
biennium ending June 30, 1995. 
 Effective January 1, 1993, and 
contingent upon federal approval of 
adding preplacement case management 
activities for persons with mental 
retardation or a related condition to 
the state Medicaid plan under title XIX 
of the Social Security Act, the 
commissioner shall transfer $600,000 of 
Community Social Services Act funds, 
appropriated for grants for case 
management established under Minnesota 
Statutes, section 256E.14, to the state 
medical assistance account.  This 
transfer is for the purpose of 
providing funding through June 30, 
1993, for the state match necessary for 
preplacement activity. 
 The commissioner of human services may 
implement demonstration projects 
designed to create alternative delivery 
systems for acute and long-term care 
services to elderly and disabled 
persons which provide increased 
coordination, improve access to quality 
services, and mitigate future cost 
increases.  Before implementing the 
projects, the commissioner must provide 
to the legislature information 
regarding the projects, as part of the 
department's fiscal year 1994-1995 
biennial budget request. Demonstrations 
affecting elderly persons must be 
integrated with the provisions of 
Minnesota Statutes 1991 Supplement, 
section 256B.0917.  The report must 
address the feasibility of and time 
lines for expansion of the projects or 
similar projects as part of a 
long-range strategy for reforming the 
long-term care delivery system. 
Subd. 8.  State Operated Residential
Care for Special Needs Populations    (3,445,000)    (8,616,000)
 For the fiscal year ending June 30, 
1993, money collected as rent under 
Minnesota Statutes, section 16B.24, 
subdivision 5, for state property at 
any of the regional treatment centers 
or state nursing homes administered by 
the commissioner of human services is 
dedicated to the facility generating 
the rental income and is appropriated 
for the express purpose of maintaining 
the property.  Any balance remaining at 
the end of the fiscal year shall not 
cancel and is available until expended. 
 Notwithstanding Laws 1991, chapter 292, 
article 1, section 2, subdivision 8, 
the language contained in that 
subdivision providing that receipts 
received for the state-operated 
community services program are 
appropriated to the commissioner for 
that purpose is of no effect.  These 
receipts are deposited and appropriated 
to the commissioner as provided under 
Minnesota Statutes, section 246.18.  
 Of the $700,000 reduction in regional 
treatment center salary accounts, 
$600,000 must be taken from the 
regional treatment center appropriation 
for central office administrative costs.
 Notwithstanding Laws 1991, chapter 292, 
article 1, section 2, subdivision 8, 
regarding the transfer of facilities at 
Faribault regional treatment center, 
the commissioner of human services may 
transfer the Birch facility to the 
commissioner of corrections on July 1, 
1992, the Willow facility on December 
1, 1992, and the hospital facility upon 
completion of the 34 skilled nursing 
and ten infirmary bed annex at Rice 
County District 1 Hospital. 
The commissioner shall continue 
utilizing the Brainerd regional laundry 
to provide laundry services for the 
regional treatment centers at Brainerd, 
Cambridge, Fergus Falls, and Moose Lake 
and the state nursing home at 
Ah-Gwah-Ching unless an alternative 
method is specifically authorized by 
law.  The commissioner shall not 
contract with a private entity for 
laundry services for any of these 
facilities unless specifically 
authorized by the legislature. 
 The commissioners of human services and 
corrections and the veterans nursing 
homes board shall continue utilizing 
the Faribault regional laundry to 
provide laundry services for the 
Faribault regional treatment center, 
the Anoka-metro regional treatment 
center, the Minnesota correctional 
facility at Faribault, and the veterans 
homes at Minneapolis and Hastings 
unless an alternative option is 
specifically authorized by law.  Any 
other state agencies utilizing the 
Faribault laundry shall also continue 
to do so unless an alternative option 
is authorized by law.  The state 
agencies named or referred to in this 
paragraph shall not contract with a 
private entity for laundry services for 
any of these facilities unless 
specifically authorized by the 
legislature. 
The commissioner of human services may 
not limit admissions to any regional 
treatment center or state-operated 
nursing home, except as provided by law.
The commissioner shall use the fiscal 
year 1993 appropriation for regional 
treatment center programs to offset any 
regional treatment center operating 
deficit and to assure maintenance of 
regional treatment center chemical 
dependency programs, including 
specialized chemical dependency 
programs. 
 For the fiscal year ending June 30, 
1992, the commissioner of finance is 
authorized to transfer $4,100,000 from 
the regional treatment centers chemical 
dependency treatment enterprise fund 
account to the general fund.  Any 
remaining unspent money in the account 
does not cancel but is available for 
the fiscal year ending June 30, 1993. 
 There shall be at least one complement 
position in the department of human 
services to provide staff support to 
the state advisory council on mental 
health in order to coordinate 
activities with and provide technical 
assistance to the local advisory 
councils on mental health. 
The commissioner of finance shall 
transfer up to $1,750,000 annually from 
the general fund to the enterprise fund 
for the specific purpose of providing 
for the cash flow requirements of the 
chemical dependency programs operated 
by the regional treatment centers.  All 
transfers are subject to the 
commissioner's assessment of the amount 
of funding needed for cash flow needs, 
equivalent to two months of account 
receivables and the ability of the 
programs to repay the advances from 
earnings.  The chemical dependency 
programs at the regional treatment 
centers must repay any advances from 
the general fund.  The commissioner 
shall report to the legislature by 
January 1, 1993, regarding the 
financial status of the chemical 
dependency programs operated by the 
regional treatment centers. 
Subd. 9.  Total Special Revenue Fund 
Appropriation                            -0-            134,000
Sec. 3.  MR/MH OMBUDSMAN                 -0-            (50,000)
Sec. 4.  VETERANS NURSING  
HOMES BOARD  
Total General 
Fund Appropriation                      (116,000)      (265,000)
The $300,000 reduction for the Luverne 
veterans nursing home in fiscal year 
1993 is a one-time reduction and does 
not reduce the base for the 1994-1995 
biennium.  
Sec. 5.  COMMISSIONER OF JOBS AND 
TRAINING 
Total General Fund 
Appropriation                            -0-          1,325,000
 This appropriation is added to the 
appropriation in Laws 1991, chapter 
292, article 1, section 5. 
 The amount of the appropriation for 
vocational rehabilitation services that 
is designated for mental illness 
demonstration grants may be used for 
innovative programs to serve persons 
with serious and persistent mental 
illness, but only if the money will be 
matched by federal funds. 
 The commissioners of jobs and training, 
human services, and finance in 
consultation with extended employment 
providers and day training and 
habilitation providers shall develop a 
plan for the programs of extended 
employment and day training and 
habilitation which will serve the 
greatest number of individuals at an 
appropriate level within the current 
state appropriation.  Staff of the 
governor and the legislature must be 
consulted in developing this plan.  
This plan must be delivered to the 
governor by December 1, 1992.  
Recommendations from the plan may be 
used in setting the 1994-1995 biennial 
budget. 
 The additional funding for the head 
start program must be distributed as 
provided in Minnesota Statutes, section 
268.914, subdivision 1, paragraph (a), 
and must not be used for innovative 
programs under Minnesota Statutes, 
section 268.914, subdivision 1, 
paragraph (b), or service expansion 
grants under Minnesota Statutes, 
section 268.914, subdivision 2.  
 The appropriation for the head start 
program in Laws 1991, chapter 292, 
article 1, section 5, subdivision 3, 
for fiscal year 1993 must be used to 
fund center-based head start programs 
that received service expansion grants 
in fiscal year 1992 at the same level 
as fiscal year 1992 plus any additional 
amounts based upon formula allocations 
of state and federal funds.  The 
additional funds provided to a grantee 
under Minnesota Statutes, section 
268.914, subdivision 2, in fiscal year 
1992 must be considered part of the 
grantee's funding base for future 
formula allocations of state and 
federal funds. 
Sec. 6.  CORRECTIONS 
Total General Fund Appropriation      (1,500,000)     4,450,000 
This appropriation is added to the 
appropriation in Laws 1991, chapter 
292, article 1, section 6. 
 $1,500,000 in the community correction 
act account shall not carry forward but 
shall cancel to the general fund.  Any 
remaining balance in the account that 
does not cancel to the general fund and 
is not held for counties is 
appropriated to the commissioner. 
 Of this appropriation, $3,450,000 is 
for operating costs at the correctional 
facility at Faribault to meet expanding 
capacity and population requirements.  
This appropriation is contingent on 
authorization by the legislature and 
the governor for the commissioner of 
finance to issue general obligation 
bonds in fiscal year 1993 to remodel 
and renovate two additional living 
units to house up to 160 inmates, and 
the transfer of administrative 
authority for the same space from the 
commissioner of human services to the 
commissioner of corrections. 
Sec. 7.  HEALTH 
Subdivision 1.  Total General 
Fund Appropriation                    (1,072,000)       871,000
 This appropriation is added to the 
appropriation in Laws 1991, chapter 
292, article 1, section 9. 
 The commissioner shall postpone 
administration of the Minnesota 
department of health residential care 
home rule until fiscal year 1995. 
 The commissioner must report to the 
legislature by February 15, 1993, on 
options for home care licensure fees 
and their impact on home care providers.
 Notwithstanding Laws 1985, First 
Special Session chapter 14, article 19, 
section 19, subdivision 8, of the 
unobligated balance in the Maternal and 
Child Health account, $400,000 shall 
cancel to the general fund. 
 The commissioner of health shall 
contract with a nonprofit organization 
in the area of urinary incontinence 
assessment and management to conduct a 
demonstration relating to the potential 
for improving the quality of life of 
nursing home residents and for cost 
savings through improved assessment and 
management of urinary incontinence in 
nursing homes.  The demonstration shall 
include the development of a treatment 
protocol by medical professionals, the 
evaluation and assessment of volunteer 
patients in nursing homes who are 
incontinent, the application of 
appropriate treatment and management 
practices as prescribed by the 
treatment protocol, and analysis of the 
quality of life and economic and 
medical benefits of the demonstration.  
The commissioner shall report results 
of the demonstration to the legislature 
not later than February 1, 1994.  
$50,000 is appropriated to the 
commissioner for purposes of the 
demonstration.  This money shall be 
available only upon the showing by the 
contract recipient that it has $250,000 
of matching private funds and in-kind 
services for purposes of the 
demonstration. 
 The unobligated balance of the $45,000 
appropriated from the state government 
special revenue fund in Laws 1991, 
chapter 292, article 1, section 9, 
subdivision 3, for the physician 
assistant registration rules shall not 
cancel, but shall be available until 
June 30, 1993. 
 Notwithstanding the provisions of 
Minnesota Statutes, sections 144.122 
and 144.53, the commissioner of health 
shall increase the annual licensure fee 
charged to a hospital accredited by the 
joint commission on accreditation of 
health care organizations by $520 and 
shall increase the annual licensure fee 
charged to nonaccredited hospitals by 
$225.  
 In determining base adjustments for the 
volunteer ambulance training 
reimbursement, the commissioner of 
finance shall carry forward as a 
permanent reduction only $20,000.  
 $40,000 is appropriated from the 
general fund for the fiscal year ending 
June 30, 1993, to the commissioner of 
health for local deliverers of the WIC 
program to purchase federally 
authorized nutritional supplements 
requiring no refrigeration or cooking 
to be distributed to eligible women and 
children who are homeless or living in 
temporary or emergency shelter.  
 $5,000 is appropriated to the 
commissioner of health.  The 
commissioner shall use this money to 
prepare and distribute materials 
designed to provide information to 
retail business on the requirements of 
Minnesota Statutes, sections 145.385 to 
145.40.  
The health department will closely 
monitor the water testing program and 
report on the actual funds expended.  
The department shall work with affected 
local units of government to determine 
the most cost-effective manner for 
financing the program.  The 
commissioner shall report to the 
legislature by January 15, 1993, on 
these matters. 
The legislative commission on water 
shall investigate and recommend 
alternative future funding sources for 
the water testing program.  They shall 
include, but not be limited to, 
volume-based fees, expansion of fees to 
nonmunicipal water systems, a statewide 
water testing fund, caps on total fees 
for municipalities, and use of general 
fund sources. 
The health department shall work with 
the legislative water commission to 
investigate ways to incorporate 
technical colleges, agricultural 
extension agents, and others to develop 
an alternative approach to testing.  
They shall also look at approaches used 
in other states. 
Subd. 2.  Total Special Revenue 
Fund Appropriation                        10,000        201,000
 Of this appropriation, $70,000 is for 
two positions and support costs to 
develop a licensing and certifying 
program described below.  The 
commissioner shall apply for federal 
grants for the purpose of lead 
abatement and report annually to the 
legislature the level of such grants to 
Minnesota and the expected receipt of 
such grants the next year. 
 To perform abatement as defined in 
Minnesota Statutes, section 144.871, 
subdivision 2, abatement contractors 
must be licensed and their employees 
must be certified by the commissioner.  
The commissioner must adopt rules that 
establish criteria for issuing, 
suspending, and revoking for cause 
licenses and certificates.  The 
commissioner must establish, collect, 
and deposit into the state government 
special revenue fund fees to pay for 
the cost of administering lead 
abatement licensing and certifying. 
Sec. 8.  HEALTH RELATED BOARDS 
Subdivision 1.  Total Special  
Revenue Fund Appropriation                53,000        420,000
The boards of medical practice, 
dentistry, nursing, and podiatric 
medicine shall increase fees to recover 
the cost of the appropriations for the 
reporting and monitoring of health care 
workers infected with the human 
immunodeficiency virus (HIV) or 
hepatitis B virus. 
Subd. 2.  Board of Social Work 
        16,000         28,000
Subd. 3.  Board of Psychology 
        37,000        185,000 
Subd. 4.  Board of Chiropractic 
Examiners 
       -0-             14,000
Subd. 5.  Board of Dentistry 
       -0-             11,000
Subd. 6.  Board of Medical Practice
       -0-             94,000
Subd. 7.  Board of Nursing 
       -0-             86,000
Subd. 8.  Board of Podiatric 
Medicine 
       -0-              2,000
Sec. 9.  COMMISSIONER OF  
HOUSING FINANCE AGENCY                  (750,000)       -0-     
 Notwithstanding Laws 1991, chapter 292, 
article 1, section 17, for the biennium 
ending June 30, 1993, $225,000 is 
available each year for the urban 
Indian housing program and $187,000 
each year for the urban and rural 
homesteading program. 
 $750,000 the second year is for a 
demonstration project to remove 
blighted residential property under 
Minnesota Statutes, section 462A.05, 
subdivision 37, that is multiple-unit 
rental property.  The agency shall 
report to the legislature by January 
15, 1993, on the results of the 
demonstration project. 
Sec. 10.  HUMAN RIGHTS                   -0-            (32,000)
    Sec. 11.  Minnesota Statutes 1990, section 237.701, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TELEPHONE ASSISTANCE FUND.] The telephone 
assistance fund is created as a separate account in the state 
treasury to consist of amounts received by the department of 
administration representing the surcharge authorized by section 
237.70, subdivision 6, and amounts earned on the fund assets.  
Money in the fund may be used only for: 
    (1) reimbursement to telephone companies for expenses and 
credits allowed in section 237.70, subdivision 7, paragraph (d), 
clause (5); 
    (2) reimbursement of the administrative expenses of the 
department of human services to implement sections 237.69 to 
237.71, not to exceed $180,000 $314,000 annually; and 
    (3) reimbursement of the administrative expenses of the 
commission not to exceed $25,000 annually. 
    Sec. 12.  [EFFECTIVE DATE.] 
    This article is effective the day following final enactment.

                               ARTICLE 6 

                           HEALTH DEPARTMENT 
    Section 1.  Minnesota Statutes 1990, section 144.122, is 
amended to read: 
    144.122 [LICENSE AND PERMIT FEES.] 
    (a) The state commissioner of health, by rule, may 
prescribe reasonable procedures and fees for filing with the 
commissioner as prescribed by statute and for the issuance of 
original and renewal permits, licenses, registrations, and 
certifications issued under authority of the commissioner.  The 
expiration dates of the various licenses, permits, 
registrations, and certifications as prescribed by the rules 
shall be plainly marked thereon.  Fees may include application 
and examination fees and a penalty fee for renewal applications 
submitted after the expiration date of the previously issued 
permit, license, registration, and certification.  The 
commissioner may also prescribe, by rule, reduced fees for 
permits, licenses, registrations, and certifications when the 
application therefor is submitted during the last three months 
of the permit, license, registration, or certification period.  
Fees proposed to be prescribed in the rules shall be first 
approved by the department of finance.  All fees proposed to be 
prescribed in rules shall be reasonable.  The fees shall be in 
an amount so that the total fees collected by the commissioner 
will, where practical, approximate the cost to the commissioner 
in administering the program.  All fees collected shall be 
deposited in the state treasury and credited to the general fund 
unless otherwise specifically appropriated by law for specific 
purposes. 
     (b) The commissioner may charge a fee for voluntary 
certification of medical laboratories and environmental 
laboratories, and for environmental and medical laboratory 
services provided by the department, without complying with 
paragraph (a) or chapter 14.  Fees charged for environment and 
medical laboratory services provided by the department must be 
approximately equal to the costs of providing the services.  
      (c) The commissioner may develop a schedule of fees for 
diagnostic evaluations conducted at clinics held by the services 
for children with handicaps program.  All receipts generated by 
the program are annually appropriated to the commissioner for 
use in the maternal and child health program. 
    (d) The commissioner, for fiscal years 1993 and beyond, 
shall set license fees for hospitals and nursing homes that are 
not boarding care homes at a level sufficient to recover, over a 
two-year period, the deficit associated with the collection of 
license fees from these facilities.  The license fees for these 
facilities shall be set at the following levels: 
Joint Commission on Accreditation of Healthcare 
Organizations (JCAHO hospitals)          $2,142
Non-JCAHO hospitals                      $2,228 plus $138 per bed
Nursing home                             $324 plus $76 per bed
    For fiscal years 1993 and beyond, the commissioner shall 
set license fees for outpatient surgical centers, boarding care 
homes, and supervised living facilities at a level sufficient to 
recover, over a four-year period, the deficit associated with 
the collection of license fees from these facilities.  The 
license fees for these facilities shall be set at the following 
levels: 
Outpatient surgical centers              $1,645
Boarding care homes                      $249 plus $58 per bed
Supervised living facilities             $249 plus $58 per bed.
    Sec. 2.  Minnesota Statutes 1990, section 144.123, 
subdivision 2, is amended to read: 
    Subd. 2.  [RULES FOR FEE AMOUNTS.] The commissioner of 
health shall promulgate rules, in accordance with chapter 14, 
which shall specify the amount of the handling fee prescribed in 
subdivision 1.  The fee shall approximate the costs to the 
department of handling specimens including reporting, postage, 
specimen kit preparation, and overhead costs.  The fee 
prescribed in subdivision 1 shall be $5 $15 per specimen until 
the commissioner promulgates rules pursuant to this subdivision. 
    Sec. 3.  [144.3831] [FEES.] 
    Subdivision 1.  [FEE SETTING.] The commissioner of health 
may assess an annual fee of $5.21 for every service connection 
to a public water supply that is owned or operated by a home 
rule or charter city, a statutory city, a city of the first 
class, or a town.  The commissioner of health may also assess an 
annual fee for every service connection served by a water user 
district defined in section 110A.02. 
    Subd. 2.  [COLLECTION AND PAYMENT OF FEE.] The public water 
supply described in subdivision 1 shall: 
    (1) collect the fees assessed on its service connections; 
    (2) pay the department of revenue an amount equivalent to 
the fees based on the total number of service connections.  The 
service connections for each public water supply described in 
subdivision 1 shall be verified every four years by the 
department of health; and 
    (3) pay one-fourth of the total yearly fee to the 
department of revenue each calendar quarter.  The first 
quarterly payment is due on or before September 30, 1992.  In 
lieu of quarterly payments, a public water supply described in 
subdivision 1 with fewer than 50 service connections may make a 
single annual payment by June 30 each year, starting in 1993.  
The fees payable to the department of revenue shall be deposited 
in the state treasury as nondedicated general fund revenues. 
    Subd. 3.  [LATE FEE.] The public water supply described in 
subdivision 1 shall pay a late fee in the amount of five percent 
of the amount of the fees due from the public water supply if 
the fees due from the public water supply are not paid within 30 
days of the payment dates in subdivision 2, clause (3).  The 
late fee that the public water supply shall pay shall be 
assessed only on the actual amount collected by the public water 
supply through fees on service connections. 
    Sec. 4.  Minnesota Statutes 1991 Supplement, section 
144.50, subdivision 6, is amended to read: 
    Subd. 6.  [SUPERVISED LIVING FACILITY LICENSES.] (a) The 
commissioner may license as a supervised living facility a 
facility seeking medical assistance certification as an 
intermediate care facility for persons with mental retardation 
or related conditions for four or more persons as authorized 
under section 252.291. 
    (b) Class B supervised living facilities seeking medical 
assistance certification as an intermediate care facility for 
persons with mental retardation or related conditions shall be 
classified as follows for purposes of the state building code: 
    (1) Class B supervised living facilities for six or less 
persons must meet Group R, Division 3, occupancy requirements; 
and 
    (2) Class B supervised living facilities for seven to 16 
persons must meet Group R, Division 1, occupancy requirements. 
    (c) Class B facilities classified under paragraph (b), 
clauses (1) and (2), must meet the fire protection provisions of 
chapter 21 of the 1985 life safety code, NFPA 101, for 
facilities housing persons with impractical evacuation 
capabilities, except that Class B facilities licensed prior to 
July 1, 1990, need only continue to meet institutional fire 
safety provisions.  Class B supervised living facilities shall 
provide the necessary physical plant accommodations to meet the 
needs and functional disabilities of the residents.  For Class B 
supervised living facilities licensed after July 1, 1990, and 
housing nonambulatory or nonmobile persons, the corridor access 
to bedrooms, common spaces, and other resident use spaces must 
be at least five feet in clear width, except that a waiver may 
be requested in accordance with Minnesota Rules, part 4665.0600. 
    (d) The commissioner may license as a Class A supervised 
living facility a residential program for chemically dependent 
individuals that allows children to reside with the parent 
receiving treatment in the facility.  The licensee of the 
program shall be responsible for the health, safety, and welfare 
of the children residing in the facility.  The facility in which 
the program is located must be provided with a sprinkler system 
approved by the state fire marshal.  The licensee shall also 
provide additional space and physical plant accommodations 
appropriate for the number and age of children residing in the 
facility.  For purposes of license capacity, each child residing 
in the facility shall be considered to be a resident.  
    Sec. 5.  Minnesota Statutes 1990, section 144A.43, 
subdivision 3, is amended to read: 
    Subd. 3.  [HOME CARE SERVICE.] "Home care service" means 
any of the following services when delivered in a place of 
residence to a person whose illness, disability, or physical 
condition creates a need for the service:  
    (1) nursing services, including the services of a home 
health aide; 
    (2) personal care services not included under sections 
148.171 to 148.285; 
    (3) physical therapy; 
    (4) speech therapy; 
    (5) respiratory therapy; 
    (6) occupational therapy; 
    (7) nutritional services; 
    (8) home management services when provided to a person who 
is unable to perform these activities due to illness, 
disability, or physical condition.  Home management services 
include at least two of the following services:  housekeeping, 
meal preparation, laundry, and shopping, and other similar 
services; 
    (9) medical social services; 
    (10) the provision of medical supplies and equipment when 
accompanied by the provision of a home care service; 
    (11) the provision of a hospice program as specified in 
section 144A.48; and 
    (12) other similar medical services and health-related 
support services identified by the commissioner in rule.  
    Sec. 6.  Minnesota Statutes 1990, section 144A.43, 
subdivision 4, is amended to read: 
     Subd. 4.  [HOME CARE PROVIDER.] "Home care provider" means 
an individual, organization, association, corporation, unit of 
government, or other entity that is regularly engaged in the 
delivery, directly or by contractual arrangement, of home care 
services for a fee.  At least one home care service must be 
provided directly, although additional home care services may be 
provided by contractual arrangements.  "Home care provider" 
includes a hospice program defined in section 144A.48.  "Home 
care provider" does not include: 
     (1) any home care or nursing services conducted by and for 
the adherents of any recognized church or religious denomination 
for the purpose of providing care and services for those who 
depend upon spiritual means, through prayer alone, for healing; 
     (2) an individual who only provides services to a relative; 
     (3) an individual not connected with a home care provider 
who provides assistance with home management services or 
personal care needs if the assistance is provided primarily as a 
contribution and not as a business; 
     (4) an individual not connected with a home care provider 
who shares housing with and provides primarily housekeeping or 
homemaking services to an elderly or disabled person in return 
for free or reduced-cost housing; 
     (5) an individual or agency providing home-delivered meal 
services; 
     (6) an agency providing senior companion services and other 
older American volunteer programs established under the Domestic 
Volunteer Service Act of 1973, Public Law Number 98-288; 
    (7) an individual or agency that only provides chore, 
housekeeping, or child care services which do not involve the 
provision of home care services; 
    (8) an employee of a nursing home licensed under this 
chapter who provides emergency services to individuals residing 
in an apartment unit attached to the nursing home; 
    (9) (8) a member of a professional corporation organized 
under sections 319A.01 to 319A.22 that does not regularly offer 
or provide home care services as defined in subdivision 3; 
    (10) (9) the following organizations established to provide 
medical or surgical services that do not regularly offer or 
provide home care services as defined in subdivision 3:  a 
business trust organized under sections 318.01 to 318.04, a 
nonprofit corporation organized under chapter 317A, a 
partnership organized under chapter 323, or any other entity 
determined by the commissioner; 
    (11) (10) an individual or agency that provides medical 
supplies or durable medical equipment, except when the provision 
of supplies or equipment is accompanied by a home care 
service; or 
    (12) (11) an individual licensed under chapter 147; or 
    (12) an individual who provides home care services to a 
person with a developmental disability who lives in a place of 
residence with a family, foster family, or primary caregiver. 
    Sec. 7.  Minnesota Statutes 1991 Supplement, section 
144A.46, subdivision 1, is amended to read: 
    Subdivision 1.  [LICENSE REQUIRED.] (a) A home care 
provider may not operate in the state without a current license 
issued by the commissioner of health. 
    (b) Within ten days after receiving an application for a 
license, the commissioner shall acknowledge receipt of the 
application in writing.  The acknowledgment must indicate 
whether the application appears to be complete or whether 
additional information is required before the application will 
be considered complete.  Within 90 days after receiving a 
complete application, the commissioner shall either grant or 
deny the license.  If an applicant is not granted or denied a 
license within 90 days after submitting a complete application, 
the license must be deemed granted.  An applicant whose license 
has been deemed granted must provide written notice to the 
commissioner before providing a home care service. 
    (c) Each application for a home care provider license, or 
for a renewal of a license, shall be accompanied by a fee to be 
set by the commissioner under section 144.122, except that the 
commissioner shall not charge a licensure fee to a home care 
provider operated by a statutory or home rule charter city, 
county, town, or other governmental entity. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
144A.46, subdivision 2, is amended to read: 
    Subd. 2.  [EXEMPTIONS.] The following individuals or 
organizations are exempt from the requirement to obtain a home 
care provider license: 
    (1) a person who is licensed as a registered nurse under 
sections 148.171 to 148.285 and who independently provides 
nursing services in the home without any contractual or 
employment relationship to a home care provider or other 
organization; 
    (2) a personal care assistant who provides services under 
the medical assistance program as authorized under sections 
256B.0625, subdivision 19, and 256B.04, subdivision 16; 
    (3) a person or organization that exclusively offers, 
provides, or arranges for personal care assistant services under 
the medical assistance program as authorized under sections 
256B.0625, subdivision 19, and 256B.04, subdivision 16; 
    (4) a person who is registered under sections 148.65 to 
148.78 and who independently provides physical therapy services 
in the home without any contractual or employment relationship 
to a home care provider or other organization; 
    (5) a person who provides services to a person with mental 
retardation under a program of a provider that is licensed by 
the commissioner of human services to provide semi-independent 
living services regulated by under Minnesota Rules, parts 
9525.0500 to 9525.0660 when providing home care services to a 
person with a developmental disability; or 
    (6) a person who provides services to a person with mental 
retardation under contract with a county provider that is 
licensed by the commissioner of human services to provide home 
home- and community-based services that are reimbursed under the 
medical assistance program, chapter 256B, and regulated by 
Minnesota Rules, parts 9525.1800 9525.2000 to 9525.1930 
9525.2140 when providing home care services to a person with a 
developmental disability; or 
    (7) a person or organization that provides only home 
management services, if the person or organization is registered 
under section 5. 
    An exemption under this subdivision does not excuse the 
individual from complying with applicable provisions of the home 
care bill of rights. 
    Sec. 9.  Minnesota Statutes 1990, section 144A.46, 
subdivision 5, is amended to read: 
    Subd. 5.  [PRIOR CRIMINAL CONVICTIONS.] An applicant for a 
home care provider license shall disclose to the commissioner 
all criminal convictions of persons involved in the management, 
operation, or control of the provider.  A home care provider 
shall require employees of the provider and applicants for 
employment in positions that involve contact with recipients of 
home care services to disclose all criminal convictions. (a) All 
persons who have or will have direct contact with clients, 
including the home care provider, employees of the provider, and 
applicants for employment shall be required to disclose all 
criminal convictions.  The commissioner may adopt rules that may 
require a person who must disclose criminal convictions under 
this subdivision to provide fingerprints and releases that 
authorize law enforcement agencies, including the bureau of 
criminal apprehension and the federal bureau of investigation, 
to release information about the person's criminal convictions 
to the commissioner and home care providers.  The bureau of 
criminal apprehension, county sheriffs, and local chiefs of 
police shall, if requested, provide the commissioner with 
criminal conviction data available from local, state, and 
national criminal record repositories, including the criminal 
justice data communications network.  No person may be employed 
by a home care provider in a position that involves contact with 
recipients of home care services nor may any person be involved 
in the management, operation, or control of a provider, if the 
person has been convicted of a crime that relates to the 
provision of home care services or to the position, duties, or 
responsibilities undertaken by that person in the operation of 
the home care provider, unless the person can provide sufficient 
evidence of rehabilitation.  The commissioner shall adopt rules 
for determining what types of employment positions, including 
volunteer positions, involve contact with recipients of home 
care services, and whether a crime relates to home care services 
and what constitutes sufficient evidence of rehabilitation.  The 
rules must require consideration of the nature and seriousness 
of the crime; the relationship of the crime to the purposes of 
home care licensure and regulation; the relationship of the 
crime to the ability, capacity, and fitness required to perform 
the duties and discharge the responsibilities of the person's 
position; mitigating circumstances or social conditions 
surrounding the commission of the crime; the length of time 
elapsed since the crime was committed; the seriousness of the 
risk to the home care client's person or property; and other 
factors the commissioner considers appropriate.  Data collected 
under this subdivision shall be classified as private data under 
section 13.02, subdivision 12. 
    (b) Termination of an employee in good faith reliance on 
information or records obtained under paragraph (a) regarding a 
confirmed conviction does not subject the home care provider to 
civil liability or liability for unemployment compensation 
benefits. 
    Sec. 10.  [144A.461] [REGISTRATION.] 
    A person or organization that provides only home management 
services defined as home care services under section 144A.43, 
subdivision 3, clause (8), may not operate in the state without 
a current certificate of registration issued by the commissioner 
of health.  To obtain a certificate of registration, the person 
or organization must annually submit to the commissioner the 
name, address, and telephone number of the person or 
organization and a signed statement declaring that the person or 
organization is aware that the home care bill of rights applies 
to their clients and that the person or organization will comply 
with the bill of rights provisions contained in section 
144A.44.  A person who provides home management services under 
this section must, within 120 days after beginning to provide 
services, attend an orientation session approved by the 
commissioner that provides training on the bill of rights and an 
orientation on the aging process and the needs and concerns of 
elderly and disabled persons.  An organization applying for a 
certificate must also provide the name, business address, and 
telephone number of each of the individuals responsible for the 
management or direction of the organization.  The commissioner 
shall charge an annual registration fee of $20 for individuals 
and $50 for organizations.  A home care provider that provides 
home management services and other home care services must be 
licensed, but licensure requirements other than the home care 
bill of rights do not apply to those employees or volunteers who 
provide only home management services to clients who do not 
receive any other home care services from the provider.  A 
licensed home care provider need not be registered as a home 
management service provider, but must provide an orientation on 
the home care bill of rights to its employees or volunteers who 
provide home management services.  The commissioner may suspend 
or revoke a provider's certificate of registration or assess 
fines for violation of the home care bill of rights.  Any fine 
assessed for a violation of the bill of rights by a provider 
registered under this section shall be in the amount established 
in the licensure rules for home care providers.  As a condition 
of registration, a provider must cooperate fully with any 
investigation conducted by the commissioner, including providing 
specific information requested by the commissioner on clients 
served and the employees and volunteers who provide services.  
The commissioner may use any of the powers granted in sections 
144A.43 to 144A.49 to administer the registration system and 
enforce the home care bill of rights under this section. 
     Sec. 11.  Minnesota Statutes 1991 Supplement, section 
144A.49, is amended to read: 
    144A.49 [TEMPORARY PROCEDURES.] 
    For purposes of this section, "home care providers" shall 
mean the providers described in section 144A.43, subdivision 4, 
including hospice programs described in section 144A.48.  Home 
care providers are exempt from the licensure requirement in 
section 144A.46, subdivision 1, until 90 days after the 
effective date of the licensure rules.  Beginning July 1, 1987, 
no home care provider, as defined in section 144A.43, 
subdivision 4, except a provider exempt from licensure under 
section 144A.46, subdivision 2, may provide home care services 
in this state without registering with the commissioner.  A home 
care provider is registered with the commissioner when the 
commissioner has received in writing the provider's name; the 
name of its parent corporation or sponsoring organization, if 
any; the street address and telephone number of its principal 
place of business; the street address and telephone number of 
its principal place of business in Minnesota; the counties in 
Minnesota in which it may render services; the street address 
and telephone number of all other offices in Minnesota; and the 
name, educational background, and ten-year employment history of 
the person responsible for the management of the agency.  A 
registration fee must be submitted with the application for 
registration, except that the commissioner shall not collect a 
registration fee from a home care provider operated by a 
statutory or home rule charter city, county, town, or other 
governmental entity.  The fee must be established pursuant to 
section 144.122 and must be based on a consideration of the 
following factors:  the number of clients served by the home 
care provider, the number of employees, the number of services 
offered, and annual revenues of the provider.  The registration 
is effective until 90 days after licensure rules are effective.  
In order to maintain its registration and provide services in 
Minnesota, a home care provider must comply with section 144A.44 
and comply with requests for information under section 144A.47.  
A registered home care provider is subject to sections 144A.51 
to 144A.54.  Registration under this section does not exempt a 
home care provider from the licensure and other requirements 
later adopted by the commissioner. 
    Within 90 days after the effective date of the licensure 
rules under section 144A.45, the commissioner of health shall 
issue provisional licenses to all home care providers registered 
with the department as of that date.  The provisional license 
shall be valid until superseded by a license issued under 
section 144A.46 or for a period of one year, whichever is 
shorter.  Applications for licensure as a home care provider 
received on or after the effective date of the home care 
licensure rules, shall be issued under section 144A.46, 
subdivision 1. 
    Sec. 12.  Minnesota Statutes 1990, section 144A.51, 
subdivision 4, is amended to read: 
    Subd. 4.  "Health care provider" means any professional 
licensed by the state to provide medical or health care services 
who does provide the services to a resident of a health facility 
or a residential care home. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, section 
144A.51, subdivision 5, is amended to read: 
    Subd. 5.  "Health facility" means a facility or that part 
of a facility which is required to be licensed pursuant to 
sections 144.50 to 144.58, and a facility or that part of a 
facility which is required to be licensed under any law of this 
state which provides for the licensure of nursing homes, and a 
residential care home licensed under sections 144B.10 to 144B.17.
    Sec. 14.  Minnesota Statutes 1990, section 144A.51, 
subdivision 6, is amended to read: 
    Subd. 6.  "Resident" means any resident or patient of a 
health facility or a residential care home, or a consumer of 
services provided by a home care provider, or the guardian or 
conservator of the resident, patient, or consumer, if one has 
been appointed. 
    Sec. 15.  Minnesota Statutes 1990, section 144A.52, 
subdivision 3, is amended to read: 
    Subd. 3.  The director may delegate to members of the staff 
any of the authority or duties of the director except the duty 
of formally making recommendations to the legislature, 
administrative agencies, health facilities, residential care 
homes, health care providers, home care providers, and the state 
commissioner of health. 
    Sec. 16.  Minnesota Statutes 1990, section 144A.52, 
subdivision 4, is amended to read: 
    Subd. 4.  The director shall attempt to include staff 
persons with expertise in areas such as law, health care, social 
work, dietary needs, sanitation, financial audits, health-safety 
requirements as they apply to health facilities, residential 
care homes, and any other relevant fields.  To the extent 
possible, employees of the office shall meet federal training 
requirements for health facility surveyors. 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
144A.53, subdivision 1, is amended to read: 
    Subdivision 1.  [POWERS.] The director may: 
    (a) Promulgate by rule, pursuant to chapter 14, and within 
the limits set forth in subdivision 2, the methods by which 
complaints against health facilities, health care providers, 
home care providers, or residential care homes, or 
administrative agencies are to be made, reviewed, investigated, 
and acted upon; provided, however, that a fee may not be charged 
for filing a complaint. 
    (b) Recommend legislation and changes in rules to the state 
commissioner of health, legislature, governor, administrative 
agencies or the federal government. 
    (c) Investigate, upon a complaint or upon initiative of the 
director, any action or failure to act by a health care 
provider, home care provider, residential care home, or a health 
facility. 
    (d) Request and receive access to relevant information, 
records, incident reports, or documents in the possession of an 
administrative agency, a health care provider, a home care 
provider, a residential care home, or a health facility, and 
issue investigative subpoenas to individuals and facilities for 
oral information and written information, including privileged 
information which the director deems necessary for the discharge 
of responsibilities.  For purposes of investigation and securing 
information to determine violations, the director need not 
present a release, waiver, or consent of an individual.  The 
identities of patients or residents must be kept private as 
defined by section 13.02, subdivision 12. 
    (e) Enter and inspect, at any time, a health facility or 
residential care home and be permitted to interview staff; 
provided that the director shall not unduly interfere with or 
disturb the provision of care and services within the 
facility or home or the activities of a patient or resident 
unless the patient or resident consents.  
    (f) Issue correction orders and assess civil fines pursuant 
to section 144.653 or any other law which provides for the 
issuance of correction orders to health facilities or home care 
provider, or under section 144A.45.  A facility's or home's 
refusal to cooperate in providing lawfully requested information 
may also be grounds for a correction order. 
    (g) Recommend the certification or decertification of 
health facilities pursuant to Title XVIII or XIX of the United 
States Social Security Act. 
    (h) Assist patients or residents of health facilities or 
residential care homes in the enforcement of their rights under 
Minnesota law.  
    (i) Work with administrative agencies, health facilities, 
home care providers, residential care homes, and health care 
providers and organizations representing consumers on programs 
designed to provide information about health facilities to the 
public and to health facility residents.  
    Sec. 18.  Minnesota Statutes 1990, section 144A.53, 
subdivision 2, is amended to read: 
    Subd. 2.  [COMPLAINTS.] The director may receive a 
complaint from any source concerning an action of an 
administrative agency, a health care provider, a home care 
provider, a residential care home, or a health facility.  The 
director may require a complainant to pursue other remedies or 
channels of complaint open to the complainant before accepting 
or investigating the complaint. 
    The director shall keep written records of all complaints 
and any action upon them.  After completing an investigation of 
a complaint, the director shall inform the complainant, the 
administrative agency having jurisdiction over the subject 
matter, the health care provider, the home care provider, the 
residential care home, and the health facility of the action 
taken. 
    Sec. 19.  Minnesota Statutes 1990, section 144A.53, 
subdivision 3, is amended to read: 
    Subd. 3.  [RECOMMENDATIONS.] If, after duly considering a 
complaint and whatever material the director deems pertinent, 
the director determines that the complaint is valid, the 
director may recommend that an administrative agency, a health 
care provider, a home care provider, a residential care home, or 
a health facility should: 
    (a) Modify or cancel the actions which gave rise to the 
complaint; 
    (b) Alter the practice, rule or decision which gave rise to 
the complaint; 
    (c) Provide more information about the action under 
investigation; or 
    (d) Take any other step which the director considers 
appropriate. 
    If the director requests, the administrative agency, a 
health care provider, a home care provider, residential care 
home, or health facility shall, within the time specified, 
inform the director about the action taken on a recommendation. 
    Sec. 20.  Minnesota Statutes 1990, section 144A.53, 
subdivision 4, is amended to read: 
    Subd. 4.  [REFERRAL OF COMPLAINTS.] If a complaint received 
by the director relates to a matter more properly within the 
jurisdiction of an occupational licensing board or other 
governmental agency, the director shall forward the complaint to 
that agency and shall inform the complaining party of the 
forwarding.  The agency shall promptly act in respect to the 
complaint, and shall inform the complaining party and the 
director of its disposition.  If a governmental agency receives 
a complaint which is more properly within the jurisdiction of 
the director, it shall promptly forward the complaint to the 
director, and shall inform the complaining party of the 
forwarding.  If the director has reason to believe that an 
official or employee of an administrative agency, a home care 
provider, residential care home, or health facility has acted in 
a manner warranting criminal or disciplinary proceedings, the 
director shall refer the matter to the state commissioner of 
health, the commissioner of human services, an appropriate 
prosecuting authority, or other appropriate agency. 
    Sec. 21.  Minnesota Statutes 1990, section 144A.54, 
subdivision 1, is amended to read: 
    Subdivision 1.  Except as otherwise provided by this 
section, the director may determine the form, frequency, and 
distribution of the conclusions and recommendations.  The 
director shall transmit the conclusions and recommendations to 
the state commissioner of health and the legislature.  Before 
announcing a conclusion or recommendation that expressly or by 
implication criticizes an administrative agency, a health care 
provider, a home care provider, a residential care home, or a 
health facility, the director shall consult with that agency, 
health care provider, home care provider, home, or facility.  
When publishing an opinion adverse to an administrative agency, 
a health care provider, a home care provider, a residential care 
home, or a health facility, the director shall include in the 
publication any statement of reasonable length made to the 
director by that agency, health care provider, home care 
provider, residential care home, or health facility in defense 
or explanation of the action. 
    Sec. 22.  Minnesota Statutes 1991 Supplement, section 
144A.61, subdivision 3a, is amended to read: 
    Subd. 3a.  [COMPETENCY EVALUATION PROGRAM.] The 
commissioner of health shall approve the competency evaluation 
program.  A competency evaluation must be administered to 
nursing assistants who desire to be listed in the nursing 
assistant registry and who have done one of the following:  (1) 
completed an approved training program; (2) been listed on the 
nursing assistant registry maintained by another state; or (3) 
completed a training program in nursing assistant skills other 
than the approved course.  The tests may only be administered by 
technical colleges, community colleges, or other organizations 
approved by the department of health.  After January 1, 1992, A 
competency evaluation for a person, other than an individual 
enrolled in a licensed nurse education program, who has not 
completed an approved nursing assistant training program, must 
include an evaluation of all clinical skills. 
    Sec. 23.  Minnesota Statutes 1991 Supplement, section 
144A.61, subdivision 6a, is amended to read: 
    Subd. 6a.  [NURSING ASSISTANTS HIRED IN 1990 AND AFTER.] 
Each nursing assistant hired to work in a nursing home or in a 
certified boarding care home on or after January 1, 1990, must 
have successfully completed an approved competency 
evaluation prior to employment or an approved nursing assistant 
training program and competency evaluation within four months 
from the date of employment. 
    Sec. 24.  Minnesota Statutes 1991 Supplement, section 
144B.01, subdivision 5, is amended to read: 
    Subd. 5.  [RESIDENTIAL CARE HOME OR HOME.] "Residential 
care home" or "home" means an establishment with a minimum of 
five beds, where adult residents are provided sleeping 
accommodations and two three or more meals per day and where at 
least two or more supportive services or at least one 
health-related service are provided or offered to all residents 
by the facility home.  A residential care home is not required 
to offer every supportive or health-related service.  A 
"residential care home" does not include: 
    (1) a board and lodging establishment licensed under 
chapter 157 and also licensed by the commissioner of human 
services under chapter 245A the provisions of Minnesota Rules, 
parts 9530.4100 to 9530.4450; 
    (2) a boarding care home or a supervised living facility 
licensed under chapter 144; 
    (3) a home care provider licensed under chapter 144A; and 
    (4) any housing arrangement which consists of apartments 
containing a separate kitchen or kitchen equipment that will 
allow residents to prepare meals and where supportive services 
may be provided, on an individual basis, to residents in their 
living units either by the management of the residential care 
home or by home care providers under contract with the home's 
management; and 
    (5) a board or lodging establishment which serves as a 
shelter for battered women or other similar purpose. 
    Sec. 25.  Minnesota Statutes 1991 Supplement, section 
144B.01, subdivision 6, is amended to read: 
    Subd. 6.  [SUPPORTIVE SERVICES.] "Supportive services" 
means the provision of supervision and minimal assistance with 
independent living skills.  Supportive services include 
assistance with transportation, arranging for meetings and 
appointments, arranging for medical and social services, help 
with laundry, managing money handling personal funds of 
residents, and personal shopping assistance.  In addition, 
supportive services include, if needed, assistance with walking, 
grooming, dressing, eating, bathing, toileting, and providing 
reminders to residents to take medications.  Supportive services 
also include other health-related support services identified by 
the commissioner in rule.  
    Sec. 26.  Minnesota Statutes 1991 Supplement, section 
144B.01, is amended by adding a subdivision to read: 
    Subd. 7.  [HEALTH-RELATED SERVICES.] "Health-related 
services" include provision of or arrangement, if needed, of 
assistance with walking, grooming, dressing, eating, bathing, 
toileting, storing medications, providing reminders to take 
medications, administering medications, and other services 
identified by the commissioner in rule. 
    Sec. 27.  Minnesota Statutes 1991 Supplement, section 
144B.10, subdivision 2, is amended to read: 
    Subd. 2.  [PERIODIC INSPECTION.] (a) All homes required to 
be licensed under sections 144B.01 to 144B.17 shall be 
periodically inspected by the commissioner to ensure compliance 
with rules and standards.  Inspections shall occur at different 
times throughout the calendar year.  
    (b) Within the limits of the resources available to the 
commissioner, the commissioner shall conduct inspections and 
reinspections with a frequency and in a manner calculated to 
produce the greatest benefit to residents.  In performing this 
function, the commissioner may devote proportionately more 
resources to the inspection of those homes in which conditions 
present the most serious concerns with respect to resident 
health, safety, comfort, and well-being, including:  
    (1) change in ownership; 
    (2) frequent change in management or staff; 
    (3) complaints about care, safety, or rights; 
    (4) previous inspections or reinspections which have 
resulted in correction orders related to care, safety, or 
rights; and 
    (5) indictment of persons involved in ownership or 
operation of the home for alleged criminal activity.  
    (c) A home that does not have any of the conditions in 
paragraph (b) or any other condition established by the 
commissioner that poses a risk to resident care, safety, or 
rights shall be inspected once every two three years. 
    Sec. 28.  Minnesota Statutes 1991 Supplement, section 
147.03, is amended to read: 
    147.03 [LICENSURE BY ENDORSEMENT; RECIPROCITY; TEMPORARY 
PERMIT.] 
    Subdivision 1.  [ENDORSEMENT; RECIPROCITY.] (a) The board, 
with the consent of six of its members, may issue a license to 
practice medicine to any person who satisfies the following 
requirements: in paragraphs (b) to (f).  
    (a) (b) The applicant shall satisfy all the requirements 
established in section 147.02, subdivision 1, paragraphs (a), 
(b), (d), (e), and (f).  
    (b) (c) The applicant shall: 
    (1) within ten years prior to application have passed an 
examination prepared and graded by the Federation of State 
Medical Boards, the National Board of Medical Examiners, the 
National Board of Osteopathic Examiners, or the Medical Council 
of Canada; or 
    (2) have a current license from the equivalent licensing 
agency in another state or Canada; and either: 
    (i) pass the Special Purpose Examination of the Federation 
of State Medical Boards with a score of 75 or better within 
three attempts; or 
    (ii) have a current certification by a specialty board of 
the American Board of Medical Specialties or of the Royal 
College of Physicians and Surgeons of Canada. 
    (c) (d) The applicant shall pay a fee established by the 
board by rule.  The fee may not be refunded.  
   (d) (e) The applicant must not be under license suspension 
or revocation by the licensing board of the state in which the 
conduct that caused the suspension or revocation occurred. 
    (f) The applicant must not have engaged in conduct 
warranting disciplinary action against a licensee, or have been 
subject to disciplinary action in another state other than as 
specified in paragraph (e).  If an applicant does not satisfy 
the requirements stated in this clause paragraph, the board 
may refuse to issue a license unless it determines only on the 
applicant's showing that the public will be protected through 
issuance of a license with conditions or limitations the board 
considers appropriate. 
    Subd. 2.  [TEMPORARY PERMIT.] The board may issue a 
temporary permit to practice medicine to a physician eligible 
for licensure under this section upon payment of a fee set by 
the board.  The permit remains valid only until the next meeting 
of the board. 
    Sec. 29.  Minnesota Statutes 1991 Supplement, section 
148.91, subdivision 3, is amended to read: 
    Subd. 3.  [FEE; TERM OF LICENSE.] An applicant shall pay a 
nonrefundable application fee set by the board.  The licenses 
granted by the board shall be for a period of three years and 
shall be renewed on a three-year basis.  The fee and term for a 
license and for renewal shall be set by the board. 
    Sec. 30.  Minnesota Statutes 1991 Supplement, section 
148.921, subdivision 2, is amended to read: 
    Subd. 2.  [PERSONS PREVIOUSLY QUALIFIED.] The board shall 
grant a license for a licensed psychologist without further 
examination to a person who: 
    (1) before November 1, 1991, entered a graduate program 
granting a master's degree with a major in psychology at an 
educational institution meeting the standards the board has 
established by rule and earned a master's degree or a master's 
equivalent in a doctoral program; 
    (2) before November 1, 1992, filed with the board a written 
declaration of intent to seek licensure under this subdivision; 
    (3) complied with all requirements of section 148.91, 
subdivisions 2 to 4, before December 31, 1997; and 
    (4) completed at least two full years or their equivalent 
of post-master's supervised psychological employment before 
December 31, 1998. 
    Sec. 31.  Minnesota Statutes 1991 Supplement, section 
148.925, subdivision 1, is amended to read: 
    Subdivision 1.  [PERSONS QUALIFIED TO PROVIDE SUPERVISION.] 
(a) Only the following persons are qualified to provide 
supervision for master's degree level applicants for licensure 
as a licensed psychologist: 
    (1) a licensed psychologist with a competency in 
supervision in professional psychology and in the area of 
practice being supervised; and 
    (2) a person who either is eligible for licensure as a 
licensed psychologist under section 148.91 or is eligible for 
licensure by reciprocity, and who, in the judgment of the board, 
is competent or experienced in supervising professional 
psychology and in the area of practice being supervised. 
    (b) Professional supervision of a doctoral level applicant 
for licensure as a licensed psychologist must be provided by a 
person: 
    (1) who meets the requirements of paragraph (a), clause (1) 
or (2), and 
    (2)(i) who has a doctorate degree with a major in 
psychology, or 
    (ii) who was licensed by the board as a psychologist before 
August 1, 1991, and is certified by the board as competent in 
supervision of applicants for licensure in accord with section 
148.905, subdivision 1, clause (10), by August 1, 1993. 
    Sec. 32.  Minnesota Statutes 1991 Supplement, section 
148.925, subdivision 2, is amended to read: 
    Subd. 2.  [SUPERVISORY CONSULTATION.] (a) Supervisory 
consultation between a supervising licensed psychologist and a 
supervised psychological practitioner must occur on a one-to-one 
basis at a ratio of at least one hour of supervision for the 
initial 20 or fewer hours of psychological services delivered 
per month and no less than one hour a month.  The consultation 
must be at least one hour in duration.  For each additional 20 
hours of psychological services delivered per month, an 
additional hour of supervision must occur.  However, if more 
than 20 hours of psychological services are provided in a week, 
no time period of supervision beyond one hour per week is 
required, but supervision must be adequate to assure the quality 
and competence of the services.  Supervisory consultation must 
include discussions on the nature and content of the practice of 
the psychological practitioner, including but not limited to a 
review of a representative sample of psychological services in 
the supervisee's practice. 
    (b) Supervision of an applicant for licensure as a licensed 
psychologist must include at least two hours of regularly 
scheduled face-to-face consultations a week for full-time 
employment, one hour of which must be with the supervisor on a 
one-to-one basis.  The remaining hour may be with other mental 
health professionals designated by the supervisor.  The board 
may approve an exception to the weekly supervision requirement 
for a week when the supervisor was ill or otherwise unable to 
provide supervision.  The board may prorate the two hours per 
week of supervision for persons preparing for licensure on a 
part-time basis. 
    Sec. 33.  Minnesota Statutes 1991 Supplement, section 
148.925, is amended by adding a subdivision to read: 
    Subd. 3.  [WAIVER.] An applicant for licensure as a 
licensed psychologist who entered supervised employment before 
August 1, 1991, may request a waiver from the board of the 
supervision requirements in this section. 
    Sec. 34.  [CONSOLIDATION OF REGULATION OF HOME CARE 
SERVICES AND RESIDENTIAL CARE HOMES.] 
    The commissioner of health, in consultation with the 
commissioner of human services, shall submit a report to the 
legislature by November 1, 1992, on the advisability and 
feasibility of consolidating licensure and regulation of home 
care services and residential care homes into one activity with 
the goal of avoiding contradictory or duplicative regulation and 
allowing flexibility for creative service development by 
regulating services rather than institutions.  If the 
commissioner determines that consolidation of the two systems is 
feasible and desirable, the commissioner shall submit 
recommendations for changes in laws and regulations that are 
necessary to consolidate the systems.  In developing the report 
and recommendations, the commissioner shall consider methods of 
enforcing physical plant and fire safety standards that are 
appropriate to congregate living settings and that reflect the 
needs and characteristics of different populations served in 
residential care homes.  The commissioner shall also consider 
the need to modify home care rules to allow a social model for 
providing services as an alternative to a medical model for 
certain supportive services provided in residential care homes 
and home care settings.  The commissioner of health shall 
consult with the commissioner of human services regarding the 
impact of changes on costs and payment mechanisms. 
    Sec. 35.  [EFFECTIVE DATES.] 
    Sections 1, 2, and 3 are effective July 1, 1993.  The 
remaining sections are effective the day following final 
enactment. 

                               ARTICLE 7 
MEDICAL PROGRAMS 
    Section 1.  [144.0505] [COOPERATION WITH COMMISSIONER OF 
HUMAN SERVICES.] 
    The commissioner shall promptly provide to the commissioner 
of human services upon request information on hospital revenues, 
nursing home licensure, and health maintenance organization 
revenues specifically required by the commissioner of human 
services to operate the provider surcharge program. 
    Sec. 2.  Minnesota Statutes 1990, section 144A.071, 
subdivision 2, is amended to read: 
    Subd. 2.  [MORATORIUM.] The commissioner of health, in 
coordination with the commissioner of human services, shall deny 
each request by a nursing home or boarding care home, except an 
intermediate care facility for the mentally retarded, for 
addition of new certified beds or for a change or changes in the 
certification status of existing beds except as provided in 
subdivision 3.  The total number of certified beds in the state 
shall remain at or decrease from the number of beds certified on 
May 23, 1983, except as allowed under subdivision 3.  "Certified 
bed" means a nursing home bed or a boarding care bed certified 
by the commissioner of health for the purposes of the medical 
assistance program, under United States Code, title 42, sections 
1396 et seq.  
    The commissioner of human services, in coordination with 
the commissioner of health, shall deny any request to issue a 
license under sections 245A.01 to 245A.16 and 252.28 to a 
nursing home or boarding care home, if that license would result 
in an increase in the medical assistance reimbursement amount.  
The commissioner of health shall deny each request for licensure 
of nursing home beds except as provided in subdivision 3. 
    In addition, the commissioner of health must not approve 
any construction project whose cost exceeds $500,000, or 25 
percent of the facility's appraised value, whichever is less, 
unless the project: 
    (1) has been approved through the process described in 
section 144A.073; 
    (2) meets an exception in subdivision 3; 
    (3) is necessary to correct violations of state or federal 
law issued by the commissioner of health; 
    (4) is necessary to repair or replace a portion of the 
facility that was destroyed by fire, lightning, or other hazards 
provided that the provisions of subdivision 3, clause (g), are 
met; or 
    (5) as of May 1, 1992, the facility has submitted to the 
commissioner of health written documentation evidencing that the 
facility meets the "commenced construction" definition as 
specified in subdivision 3, clause (b), or that substantial 
steps have been taken prior to April 1, 1992, relating to the 
construction project.  "Substantial steps" require that the 
facility has made arrangements with outside parties relating to 
the construction project and include the hiring of an architect 
or construction firm, submission of preliminary plans to the 
department of health or documentation from a financial 
institution that financing arrangements for the construction 
project have been made. 
    Prior to the approval of any construction project, the 
commissioner of health shall be provided with an itemized cost 
estimate for the construction project.  If a construction 
project is anticipated to be completed in phases, the total 
estimated cost of all phases of the project shall be submitted 
to the commissioner and shall be considered as one construction 
project.  Once the construction project is completed and prior 
to the final clearance by the commissioner, the total actual 
costs for the construction project shall be submitted to the 
commissioner.  If the final construction cost exceeds the 
threshold in this subdivision, the commissioner of human 
services shall not recognize any of the construction costs or 
the related financing costs in excess of this threshold in 
establishing the facility's property-related payment rate. 
    The commissioner of health shall adopt emergency or 
permanent rules to implement this section or to amend the 
emergency rules for granting exceptions to the moratorium on 
nursing homes under section 144A.073.  The authority to adopt 
emergency rules continues to December 30, 1992. 
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
144A.071, subdivision 3, is amended to read: 
    Subd. 3.  [EXCEPTIONS.] The commissioner of health, in 
coordination with the commissioner of human services, may 
approve the addition of a new certified bed or the addition of a 
new licensed nursing home bed, under the following conditions:  
     (a) to replace a bed decertified after May 23, 1983, or to 
address an extreme hardship situation, in a particular county 
that, together with all contiguous Minnesota counties, has fewer 
nursing home beds per 1,000 elderly than the number that is ten 
percent higher than the national average of nursing home beds 
per 1,000 elderly individuals.  For the purposes of this 
section, the national average of nursing home beds shall be the 
most recent figure that can be supplied by the federal health 
care financing administration and the number of elderly in the 
county or the nation shall be determined by the most recent 
federal census or the most recent estimate of the state 
demographer as of July 1, of each year of persons age 65 and 
older, whichever is the most recent at the time of the request 
for replacement.  In allowing replacement of a decertified bed, 
the commissioners shall ensure that the number of added or 
recertified beds does not exceed the total number of decertified 
beds in the state in that level of care.  An extreme hardship 
situation can only be found after the county documents the 
existence of unmet medical needs that cannot be addressed by any 
other alternatives; 
        (b) to certify a new bed in a facility that commenced 
construction before May 23, 1983.  For the purposes of this 
section, "commenced construction" means that all of the 
following conditions were met:  the final working drawings and 
specifications were approved by the commissioner of health; the 
construction contracts were let; a timely construction schedule 
was developed, stipulating dates for beginning, achieving 
various stages, and completing construction; and all zoning and 
building permits were secured; 
        (c) to certify beds in a new nursing home that is needed in 
order to meet the special dietary needs of its residents, if: 
the nursing home proves to the commissioner's satisfaction that 
the needs of its residents cannot otherwise be met; elements of 
the special diet are not available through most food 
distributors; and proper preparation of the special diet 
requires incurring various operating expenses, including extra 
food preparation or serving items, not incurred to a similar 
extent by most nursing homes; 
        (d) to license a new nursing home bed in a facility that 
meets one of the exceptions contained in clauses (a) to (c); 
        (e) to license nursing home beds in a facility that has 
submitted either a completed licensure application or a written 
request for licensure to the commissioner before March 1, 1985, 
and has either commenced any required construction as defined in 
clause (b) before May 1, 1985, or has, before May 1, 1985, 
received from the commissioner approval of plans for phased-in 
construction and written authorization to begin construction on 
a phased-in basis.  For the purpose of this clause, 
"construction" means any erection, building, alteration, 
reconstruction, modernization, or improvement necessary to 
comply with the nursing home licensure rules; 
        (f) to certify or license new beds in a new facility that 
is to be operated by the commissioner of veterans' affairs or 
when the costs of constructing and operating the new beds are to 
be reimbursed by the commissioner of veterans' affairs or the 
United States Veterans Administration; 
        (g) to license or certify beds in a new facility 
constructed to replace a facility that was destroyed after June 
30, 1987, by fire, lightning, or other hazard provided:  
        (1) destruction was not caused by the intentional act of or 
at the direction of a controlling person of the facility; 
        (2) at the time the facility was destroyed the controlling 
persons of the facility maintained insurance coverage for the 
type of hazard that occurred in an amount that a reasonable 
person would conclude was adequate; 
        (3) the net proceeds from an insurance settlement for the 
damages caused by the hazard are applied to the cost of the new 
facility; 
        (4) the new facility is constructed on the same site as the 
destroyed facility or on another site subject to the 
restrictions in section 144A.073, subdivision 5; and 
    (5) the number of licensed and certified beds in the new 
facility does not exceed the number of licensed and certified 
beds in the destroyed facility; 
    (h) to license or certify beds that are moved from one 
location to another within a nursing home facility, provided the 
total costs of remodeling performed in conjunction with the 
relocation of beds does not exceed ten 25 percent of the 
appraised value of the facility or $200,000 $500,000, whichever 
is less, or to license or certify beds in a facility for which 
the total costs of remodeling or renovation exceed ten 25 
percent of the appraised value of the facility 
or $200,000 $500,000, whichever is less, if the facility makes a 
written commitment to the commissioner of human services that it 
will not seek to receive an increase in its property-related 
payment rate by reason of the remodeling or renovation; 
    (i) to license or certify beds in a facility that has been 
involuntarily delicensed or decertified for participation in the 
medical assistance program, provided that an application for 
relicensure or recertification is submitted to the commissioner 
within 120 days after delicensure or decertification; 
    (j) to license or certify beds in a project recommended for 
approval by the interagency board for quality assurance under 
section 144A.073; 
    (k) to license nursing home beds in a hospital facility 
that are relocated from a different hospital facility under 
common ownership or affiliation, provided:  
     (1) the nursing home beds are not certified for 
participation in the medical assistance program; and 
     (2) the relocation of nursing home beds under this clause 
should not exceed a radius of six miles; 
        (1) to license or certify beds that are moved from one 
location to another within an existing identifiable complex of 
hospital buildings, from a hospital-attached nursing home to the 
hospital building, or from a separate nursing home to a building 
formerly used as a hospital, provided the original nursing home 
building will no longer be operated as a nursing home and the 
building to which the beds are moved will no longer be operated 
as a hospital.  As a condition of receiving a license or 
certification under this clause, the facility must make a 
written commitment to the commissioner of human services that it 
will not seek to receive an increase in its property-related 
payment rate as a result of the relocation.  At the time of the 
licensure and certification of the nursing home beds, the 
commissioner of health shall delicense the same number of acute 
care beds within the existing complex of hospital buildings or 
building.  Relocation of nursing home beds under this clause is 
subject to the limitations in section 144A.073, subdivision 5; 
        (m) to license or certify beds that are moved from an 
existing state nursing home to a different state facility, 
provided there is no net increase in the number of state nursing 
home beds.  The relocated beds need not be licensed and 
certified at the new location simultaneously with the 
delicensing and decertification of the old beds and may be 
licensed and certified at any time after the old beds are 
delicensed and decertified; 
     (n) to license new nursing home beds in a continuing care 
retirement community affiliated with a national referral center 
engaged in substantial programs of patient care, medical 
research, and medical education meeting state and national needs 
that receives more than 40 percent of its residents from outside 
the state for the purpose of meeting contractual obligations to 
residents of the retirement community, provided the facility 
makes a written commitment to the commissioner of human services 
that it will not seek medical assistance certification for the 
new beds; 
     (o) to certify or license new beds in a new facility on the 
Red Lake Indian Reservation for which payments will be made 
under the Indian Health Care Improvement Act, Public Law Number 
94-437, at the rates specified in United States Code, title 42, 
section 1396d(b); 
     (p) to certify and license as nursing home beds boarding 
care beds in a certified boarding care facility if the beds meet 
the standards for nursing home licensure, or in a facility that 
was granted an exception to the moratorium under section 
144A.073, and if the cost of any remodeling of the facility does 
not exceed ten 25 percent of the appraised value of the facility 
or $200,000 $500,000, whichever is less; or to license as 
nursing home beds boarding care beds in a facility with an 
addendum to its provider agreement effective beginning July 1, 
1983, if the boarding care beds to be upgraded meet the 
standards for nursing home licensure.  If boarding care beds are 
licensed as nursing home beds, the number of boarding care beds 
in the facility must not increase in the future.  The provisions 
contained in section 144A.073 regarding the upgrading of the 
facilities do not apply to facilities that satisfy these 
requirements; 
    (q) to license and certify up to 40 beds transferred from 
an existing facility owned and operated by the Amherst H. Wilder 
Foundation in the city of Saint Paul to a new unit at the same 
location as the existing facility that will serve persons with 
Alzheimer's disease and other related disorders.  The transfer 
of beds may occur gradually or in stages, provided the total 
number of beds transferred does not exceed 40.  At the time of 
licensure and certification of a bed or beds in the new unit, 
the commissioner of health shall delicense and decertify the 
same number of beds in the existing facility.  As a condition of 
receiving a license or certification under this clause, the 
facility must make a written commitment to the commissioner of 
human services that it will not seek to receive an increase in 
its property-related payment rate as a result of the transfers 
allowed under this clause; 
      (r) to license and certify nursing home beds to replace 
currently licensed and certified boarding care beds which may be 
located either in a remodeled or renovated boarding care or 
nursing home facility or in a remodeled, renovated, newly 
constructed, or replacement nursing home facility within the 
identifiable complex of health care facilities in which the 
currently licensed boarding care beds are presently located, 
provided that the number of boarding care beds in the facility 
or complex are decreased by the number to be licensed as nursing 
home beds and further provided that, if the total costs of new 
construction, replacement, remodeling, or renovation exceed ten 
percent of the appraised value of the facility or $200,000, 
whichever is less, the facility makes a written commitment to 
the commissioner of human services that it will not seek to 
receive an increase in its property-related payment rate by 
reason of the new construction, replacement, remodeling, or 
renovation.  The provisions contained in section 144A.073 
regarding the upgrading of facilities do not apply to facilities 
that satisfy these requirements; 
    (s) to license or certify beds that are moved from a 
nursing home to a separate facility under common ownership or 
control that was formerly licensed as a hospital and is 
currently licensed as a nursing facility and that is located 
within eight miles of the original facility, provided the 
original nursing home building will no longer be operated as a 
nursing home.  As a condition of receiving a license or 
certification under this clause, the facility must make a 
written commitment to the commissioner of human services that it 
will not seek to receive an increase in its property-related 
payment rate as a result of the relocation; or 
    (t) to license as a nursing home and certify as a nursing 
facility a facility that is licensed as a boarding care facility 
but not certified under the medical assistance program, but only 
if the commissioner of human services certifies to the 
commissioner of health that licensing the facility as a nursing 
home and certifying the facility as a nursing facility will 
result in a net annual savings to the state general fund of 
$200,000 or more; 
    (u) to certify, after September 30, 1992, and prior to July 
1, 1993, existing nursing home beds in a facility that was 
licensed and in operation prior to January 1, 1992; 
    (v) to license and certify new nursing home beds to replace 
beds in a facility condemned as part of an economic 
redevelopment plan in a city of the first class, provided the 
new facility is located within one mile of the site of the old 
facility.  Operating and property costs for the new facility 
must be determined and allowed under existing reimbursement 
rules; or 
    (w) to license and certify up to 20 new nursing home beds 
in a community-operated hospital and attached convalescent and 
nursing care facility with 40 beds on April 21, 1991, that 
suspended operation of the hospital in April 1986.  The 
commissioner of human services shall provide the facility with 
the same per diem property-related payment rate for each 
additional licensed and certified bed as it will receive for its 
existing 40 beds. 
    Sec. 4.  Minnesota Statutes 1990, section 144A.073, 
subdivision 3, is amended to read: 
    Subd. 3.  [REVIEW AND APPROVAL OF PROPOSALS.] Within the 
limits of money specifically appropriated to the medical 
assistance program for this purpose, the interagency board for 
quality assurance may recommend that the commissioner of health 
grant exceptions to the nursing home licensure or certification 
moratorium for proposals that satisfy the requirements of this 
section.  The interagency board shall appoint an advisory review 
panel composed of representatives of consumers and providers to 
review proposals and provide comments and recommendations to the 
board.  The commissioners of human services and health shall 
provide staff and technical assistance to the board for the 
review and analysis of proposals.  The interagency board shall 
hold a public hearing before submitting recommendations to the 
commissioner of health on project requests.  The board shall 
submit recommendations within 150 days of the date of the 
publication of the notice, based on a comparison and ranking of 
proposals using the criteria in subdivision 4.  The commissioner 
of health shall approve or disapprove a project within 30 days 
after receiving the board's recommendations.  The cost to the 
medical assistance program of the proposals approved must be 
within the limits of the appropriations specifically made for 
this purpose.  Approval of a proposal expires 12 18 months after 
approval by the commissioner of health unless the facility has 
commenced construction as defined in section 144A.071, 
subdivision 3, paragraph (b).  The board's report to the 
legislature, as required under section 144A.31, must include the 
projects approved, the criteria used to recommend proposals for 
approval, and the estimated costs of the projects, including the 
costs of initial construction and remodeling, and the estimated 
operating costs during the first two years after the project is 
completed. 
    Sec. 5.  Minnesota Statutes 1990, section 144A.073, 
subdivision 3a, is amended to read: 
    Subd. 3a.  [EXTENSION OF APPROVAL OF A PROJECT REQUIRING AN 
EXCEPTION TO THE NURSING HOME MORATORIUM.] Notwithstanding 
subdivision 3, a construction project that was approved by the 
commissioner under the moratorium exception approval process in 
this section prior to February 1, 1990 July 1, 1992, may be 
commenced more than 12 18 months after the date of the 
commissioner's approval but no later than July 1, 1992 1994, or 
12 months after the effective date of a nursing home 
property-related payment system enacted to replace the current 
rate freeze in section 256B.431, subdivision 12, whichever is 
later. 
    Sec. 6.  Minnesota Statutes 1990, section 144A.073, 
subdivision 5, is amended to read: 
    Subd. 5.  [REPLACEMENT RESTRICTIONS.] (a) Proposals 
submitted or approved under this section involving replacement 
must provide for replacement of the facility on the existing 
site except as allowed in this subdivision.  
    (b) Facilities located in a metropolitan statistical area 
other than the Minneapolis-St. Paul seven-county metropolitan 
area may relocate to a site within the same census tract or a 
contiguous census tract.  
    (c) Facilities located in the Minneapolis-St. Paul 
seven-county metropolitan area may relocate to a site within the 
same or contiguous health planning area as adopted in March 1982 
by the metropolitan council.  
    (d) Facilities located outside a metropolitan statistical 
area may relocate to a site within the same city or township, or 
within a contiguous township.  
    (e) A facility relocated to a different site under 
paragraph (b), (c), or (d) must not be relocated to a site more 
than six miles from the existing site. 
    (f) The relocation of part of an existing first facility to 
a second location, under paragraphs (d) and (e), may include the 
relocation to the second location of up to four beds from part 
of an existing third facility located in a township contiguous 
to the location of the first facility.  The six-mile limit in 
paragraph (e) does not apply to this relocation from the third 
facility. 
    Sec. 7.  [144A.154] [RATE RECOMMENDATION.] 
    The commissioner may recommend to the commissioner of human 
services a review of the rates for a nursing home or boarding 
care home that participates in the medical assistance program 
that is in voluntary or involuntary receivership, and that has 
needs or deficiencies documented by the department of health.  
If the commissioner of health determines that a review of the 
rate under section 256B.495 is needed, the commissioner shall 
provide the commissioner of human services with: 
    (1) a copy of the order or determination that cites the 
deficiency or need; and 
    (2) the commissioner's recommendation for additional staff 
and additional annual hours by type of employee and additional 
consultants, services, supplies, equipment, or repairs necessary 
to satisfy the need or deficiency. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
144A.31, subdivision 2a, is amended to read: 
    Subd. 2a.  [DUTIES.] The interagency committee shall 
identify long-term care issues requiring coordinated interagency 
policies and shall conduct analyses, coordinate policy 
development, and make recommendations to the commissioners for 
effective implementation of these policies.  The committee shall 
refine state long-term goals, establish performance indicators, 
and develop other methods or measures to evaluate program 
performance, including client outcomes.  The committee shall 
review the effectiveness of programs in meeting their objectives.
    The committee shall also:  
    (1) facilitate the development of regional and local bodies 
to plan and coordinate regional and local services; 
    (2) recommend a single regional or local point of access 
for persons seeking information on long-term care services; 
    (3) recommend changes in state funding and administrative 
policies that are necessary to maximize the use of home and 
community-based care and that promote the use of the least 
costly alternative without sacrificing quality of care; and 
    (4) develop methods of identifying and serving seniors who 
need minimal services to remain independent but who are likely 
to develop a need for more extensive services in the absence of 
these minimal services; and 
    (5) develop and implement strategies for advocating, 
promoting, and developing long-term care insurance and encourage 
insurance companies to offer long-term care insurance policies 
that are affordable and offer a wide range of benefits.  
    Sec. 9.  Minnesota Statutes 1990, section 147.01, is 
amended by adding a subdivision to read: 
    Subd. 6.  [LICENSE SURCHARGE.] In addition to any fee 
established under section 214.06, the board shall assess an 
annual license surcharge of $400 against each physician licensed 
under this chapter as follows: 
    (1) a physician whose license is issued or renewed between 
April 1 and September 30 shall be billed on or before November 
15, and the physician must pay the surcharge by December 15; and 
    (2) a physician whose license is issued or renewed between 
October 1 and March 31 shall be billed on or before May 15, and 
the physician must pay the surcharge by June 15. 
    The board shall provide that the surcharge payment must be 
remitted to the commissioner of human services to be deposited 
in the general fund under section 256.9656.  The board shall not 
renew the license of a physician who has not paid the surcharge 
required under this section.  The board shall promptly provide 
to the commissioner of human services upon request information 
available to the board and specifically required by the 
commissioner to operate the provider surcharge program.  The 
board shall limit the surcharge to physicians residing in 
Minnesota and the states contiguous to Minnesota upon 
notification from the commissioner of human services that the 
federal government has approved a waiver to allow the surcharge 
to be applied in that manner. 
    Sec. 10.  Minnesota Statutes 1990, section 151.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  (a)  [POWERS AND DUTIES.] The board of 
pharmacy shall have the power and it shall be its duty: 
    (1) to regulate the practice of pharmacy; 
    (2) to regulate the manufacture, wholesale, and retail sale 
of drugs within this state; 
    (3) to regulate the identity, labeling, purity, and quality 
of all drugs and medicines dispensed in this state, using the 
United States Pharmacopeia and the National Formulary, or any 
revisions thereof, or standards adopted under the federal act as 
the standard; 
    (4) to enter and inspect by its authorized representative 
any and all places where drugs, medicines, medical gases, or 
veterinary drugs or devices are sold, vended, given away, 
compounded, dispensed, manufactured, wholesaled, or held; it may 
secure samples or specimens of any drugs, medicines, medical 
gases, or veterinary drugs or devices after paying or offering 
to pay for such sample; it shall be entitled to inspect and make 
copies of any and all records of shipment, purchase, 
manufacture, quality control, and sale of these items provided, 
however, that such inspection shall not extend to financial 
data, sales data, or pricing data; 
    (5) to examine and license as pharmacists all applicants 
whom it shall deem qualified to be such; 
     (6) to license wholesale drug distributors; 
     (7) to deny, suspend, revoke, or refuse to renew any 
registration or license required under this chapter, to any 
applicant or registrant or licensee upon any of the following 
grounds: 
      (i) fraud or deception in connection with the securing of 
such license or registration; 
      (ii) in the case of a pharmacist, conviction in any court 
of a felony; 
      (iii) in the case of a pharmacist, conviction in any court 
of an offense involving moral turpitude; 
      (iv) habitual indulgence in the use of narcotics, 
stimulants, or depressant drugs; or habitual indulgence in 
intoxicating liquors in a manner which could cause conduct 
endangering public health; 
      (v) unprofessional conduct or conduct endangering public 
health; 
      (vi) gross immorality; 
      (vii) employing, assisting, or enabling in any manner an 
unlicensed person to practice pharmacy; 
      (viii) conviction of theft of drugs, or the unauthorized 
use, possession, or sale thereof; 
      (ix) violation of any of the provisions of this chapter or 
any of the rules of the state board of pharmacy; 
      (x) in the case of a pharmacy license, operation of such 
pharmacy without a pharmacist present and on duty; 
      (xi) in the case of a pharmacist, physical or mental 
disability which could cause incompetency in the practice of 
pharmacy; or 
     (xii) in the case of a pharmacist, the suspension or 
revocation of a license to practice pharmacy in another state; 
     (8) to employ necessary assistants and make rules for the 
conduct of its business; and 
    (9) to perform such other duties and exercise such other 
powers as the provisions of the act may require.  
    (b)  [TEMPORARY SUSPENSION.] In addition to any other 
remedy provided by law, the board may, without a hearing, 
temporarily suspend a license for not more than 60 days if the 
board finds that a pharmacist has violated a statute or rule 
that the board is empowered to enforce and continued practice by 
the pharmacist would create an imminent risk of harm to others.  
The suspension shall take effect upon written notice to the 
pharmacist, specifying the statute or rule violated.  At the 
time it issues the suspension notice, the board shall schedule a 
disciplinary hearing to be held under the administrative 
procedure act.  The pharmacist shall be provided with at least 
20 days notice of any hearing held under this subdivision. 
    (c)  [RULES.] For the purposes aforesaid, it shall be the 
duty of the board to make and publish uniform rules not 
inconsistent herewith for carrying out and enforcing the 
provisions of this chapter.  The board shall adopt rules 
regarding prospective drug utilization review and patient 
counseling by pharmacists.  A pharmacist in the exercise of the 
pharmacist's professional judgment, upon the presentation of a 
new prescription by a patient or the patient's caregiver or 
agent, shall perform the prospective drug utilization review 
required by rules issued under this subdivision. 
    Sec. 11.  Minnesota Statutes 1990, section 151.06, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [DISCIPLINARY ACTION.] It shall be grounds for 
disciplinary action by the board of pharmacy against the 
registration of the pharmacy if the board of pharmacy determines 
that any person with supervisory responsibilities at the 
pharmacy sets policies that prevent a licensed pharmacist from 
providing drug utilization review and patient counseling as 
required by rules adopted under subdivision 1.  The board of 
pharmacy shall follow the requirements of chapter 14 in any 
disciplinary actions taken under this section. 
    Sec. 12.  Minnesota Statutes 1991 Supplement, section 
252.46, subdivision 3, is amended to read: 
    Subd. 3.  [RATE MAXIMUM.] Unless a variance is granted 
under subdivision 6, the maximum payment rates for each vendor 
for a calendar year must be equal to the payment rates approved 
by the commissioner for that vendor in effect December 1 of the 
previous calendar year increased by no more than.  The 
commissioner of finance shall include as a budget change request 
in each biennial detailed expenditure budget submitted to the 
legislature under section 16A.11 annual inflation adjustments in 
reimbursement rates for each vendor, based upon the projected 
percentage change in the urban consumer price index, all items, 
published by the United States Department of Labor, for the 
upcoming calendar year over the current calendar year.  The 
commissioner shall not provide an annual inflation adjustment 
for the biennium ending June 30, 1993. 
    Sec. 13.  Minnesota Statutes 1990, section 254B.06, 
subdivision 3, is amended to read: 
    Subd. 3.  [PAYMENT; DENIAL.] The commissioner shall pay 
eligible vendors for placements made by local agencies under 
section 254B.03, subdivision 1, and placements by tribal 
designated agencies according to section 254B.09.  The 
commissioner may reduce or deny payment of the state share when 
services are not provided according to the placement criteria 
established by the commissioner.  The commissioner may pay for 
all or a portion of improper county chemical dependency 
placements and bill the county for the entire payment made when 
the placement did not comply with criteria established by the 
commissioner.  The commissioner shall not pay vendors until 
private insurance company claims have been settled. 
    Sec. 14.  Minnesota Statutes 1990, section 256.9655, is 
amended to read: 
    256.9655 [PAYMENTS TO MEDICAL PROVIDERS.] 
    Subdivision 1.  [DUTIES OF COMMISSIONER.] The commissioner 
shall establish procedures to analyze and correct problems 
associated with medical care claims preparation and processing 
under the medical assistance, general assistance medical care, 
and children's health plan programs.  At a minimum, the 
commissioner shall: 
    (1) designate a full-time position as a liaison between the 
department of human services and providers; 
    (2) analyze impediments to timely processing of claims, 
provide information and consultation to providers, and develop 
methods to resolve or reduce problems; 
    (3) provide to each acute care hospital a quarterly listing 
of claims received and identify claims that have been suspended 
and the reason the claims were suspended; 
    (4) provide education and information on reasons for 
rejecting and suspending claims and identify methods that would 
avoid multiple submissions of claims; and 
    (5) for each acute care hospital, identify and prioritize 
claims that are in jeopardy of exceeding time factors that 
eliminate payment. 
    Subd. 2.  [ELECTRONIC CLAIM SUBMISSION.] Medical providers 
designated by the commissioner of human services are permitted 
to purchase authorized materials through commodity contracts 
administered by the commissioner of administration for the 
purpose of submitting electronic claims to the medical programs 
designated in subdivision 1.  Providers so designated must be 
actively enrolled and participating in the medical programs and 
must sign a hardware purchase and electronic biller agreement 
with the commissioner of human services prior to purchase from 
the contract. 
    Sec. 15.  Minnesota Statutes 1991 Supplement, section 
256.9656, is amended to read: 
    256.9656 [DEPOSITS INTO THE GENERAL FUND.] 
    All money collected under section 256.9657 shall be 
deposited in the general fund and is appropriated to the 
commissioner of human services for the purposes of section 
256B.74.  Deposits do not cancel and are available until 
expended. 
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
256.9657, subdivision 1, is amended to read: 
    Subdivision 1.  [NURSING FACILITY HOME LICENSE SURCHARGE.] 
Effective July October 1, 1991 1992, each non-state-operated 
nursing facility subject to the reimbursement principles in 
Minnesota Rules, parts 9549.0010 to 9549.0080, home licensed 
under chapter 144A shall pay to the commissioner an annual 
surcharge according to the schedule in subdivision 4.  The 
surcharge shall be calculated as $500 $535 per bed licensed on 
the previous April July 1, except that if the number of licensed 
beds is reduced after July 1 but prior to August 1, the 
surcharge shall be based on the number of remaining licensed 
beds.  A nursing home entitled to a reduction in the number of 
beds subject to the surcharge under this provision must 
demonstrate to the satisfaction of the commissioner by August 5 
that the number of beds has been reduced. 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
256.9657, is amended by adding a subdivision to read: 
    Subd. 1a.  [WAIVER REQUEST.] The commissioner shall request 
a waiver from the secretary of health and human services to:  (1)
exclude from the surcharge under subdivision 1 a nursing home 
that provides all services free of charge; (2) make a pro rata 
reduction in the surcharge paid by a nursing home that provides 
a portion of its services free of charge; (3) limit the hospital 
surcharge to acute care hospitals only; and (4) limit the 
physician license surcharge under section 147.01, subdivision 6, 
to physicians licensed in Minnesota and residing in Minnesota or 
a state contiguous to Minnesota.  If a waiver is approved under 
this subdivision, the commissioner shall adjust the nursing home 
surcharge accordingly or shall direct the board of medical 
practice to adjust the physician license surcharge under section 
147.01, subdivision 6, accordingly.  Any waivers granted by the 
federal government shall be effective on or after October 1, 
1992. 
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
256.9657, subdivision 2, is amended to read: 
    Subd. 2.  [HOSPITAL SURCHARGE.] (a) Effective July 1, 
1991 October 1, 1992, each Minnesota and local trade area 
hospital except facilities of the federal Indian Health Service 
and regional treatment centers shall pay to the medical 
assistance account a surcharge equal to ten 1.4 percent of 
medical assistance payments issued to net patient revenues 
excluding net Medicare revenues reported by that provider for 
inpatient services to the health care cost information system 
according to the schedule in subdivision 4.  Medicare crossovers 
and indigent care payments paid under section 256B.74 are 
excluded from the amount of medical assistance payments issued. 
    (b) Effective July 1, 1991, each Minnesota and local trade 
area hospital except facilities of the federal Indian Health 
Service and regional treatment centers shall pay to the medical 
assistance account a surcharge equal to five percent of medical 
assistance payments issued to that provider for outpatient 
services according to the schedule in subdivision 4.  Medicare 
crossovers are excluded from the amount of medical assistance 
payments issued. 
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
256.9657, subdivision 3, is amended to read: 
    Subd. 3.  [HEALTH PLAN MAINTENANCE ORGANIZATION SURCHARGE.] 
Effective July 1, 1991 October 1, 1992, each health plan under 
contract with maintenance organization with a certificate of 
authority issued by the commissioner of health under chapter 62D 
shall pay to the commissioner of human services a surcharge 
equal to the equivalent value of the surcharges described in 
subdivision 2 for each medical assistance rate cell 
payment six-tenths of one percent of the total premium revenues 
of the health maintenance organization as reported to the 
commissioner of health according to the schedule in subdivision 
4.  The surcharge for each quarter or month of a fiscal year 
shall be calculated based on the payments due in September of 
the same fiscal year under subdivision 2. 
    Sec. 20.  Minnesota Statutes 1991 Supplement, section 
256.9657, subdivision 4, is amended to read: 
    Subd. 4.  [PAYMENTS INTO THE ACCOUNT.] Payments to the 
commissioner under subdivision subdivisions 1 to 3 must be paid 
in monthly installments due on the 15th of the month 
beginning August 15, 1991 October 15, 1992.  The monthly payment 
must be equal to the annual surcharge divided by 12.  Payments 
to the commissioner under subdivisions 2 and 3 for fiscal year 
1993 must be paid as follows:  the first payment is a quarterly 
payment due September 15, 1991, with subsequent payments due 
monthly on the fifteenth of each month.  The September 15, 1991, 
payment under subdivisions 2 and 3 shall be determined by taking 
the amount of medical assistance payments issued to each 
provider in the calendar quarter beginning six months prior to 
the quarter in which the payment is due multiplied by the 
percentage surcharge for each provider.  The subsequent monthly 
payments shall be determined by taking the amount of medical 
assistance payments issued to each provider in the month 
beginning six months prior to the month in which the payment is 
due multiplied by the percentage surcharge for each provider 
based on calendar year 1990 revenues.  Effective July 1 of each 
year, beginning in 1993, payments under subdivisions 2 and 3 
must be based on revenues earned in the second previous calendar 
year. 
    Sec. 21.  Minnesota Statutes 1991 Supplement, section 
256.9657, subdivision 7, is amended to read: 
    Subd. 7.  [ENFORCEMENT COLLECTION; CIVIL PENALTIES.] The 
commissioner shall bring action in district court to collect 
provider payments due under subdivisions 1 to 3 that are more 
than 30 days in arrears.  The provisions of sections 289A.35 to 
289A.50 relating to the authority to audit, assess, collect, and 
pay refunds of other state taxes may be implemented by the 
commissioner of human services with respect to the tax, penalty, 
and interest imposed by this section and section 147.01, 
subdivision 6.  The commissioner of human services shall impose 
civil penalties for violation of this section or section 147.01, 
subdivision 6, as provided in section 289A.60, and the tax and 
penalties are subject to interest at the rate provided in 
section 270.75. 
    Sec. 22.  Minnesota Statutes 1991 Supplement, section 
256.9685, subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORITY.] The commissioner shall 
establish procedures for determining medical assistance and 
general assistance medical care payment rates under a 
prospective payment system for inpatient hospital services in 
hospitals that qualify as vendors of medical assistance.  The 
commissioner shall establish, by rule, procedures for 
implementing this section and sections 256.9686, 256.969, and 
256.9695.  The medical assistance payment rates must be based on 
methods and standards that the commissioner finds are adequate 
to provide for the costs that must be incurred for the care of 
recipients in efficiently and economically operated hospitals.  
Services must meet the requirements of section 256B.04, 
subdivision 15, or 256D.03, subdivision 7, paragraph (b), to be 
eligible for payment except the commissioner may establish 
exemptions to specific requirements based on diagnosis, 
procedure, or service after notice in the State Register and a 
30-day comment period.  The commissioner may establish an 
administrative reconsideration process for appeals of inpatient 
hospital services determined to be medically unnecessary.  The 
reconsideration process shall take place prior to the contested 
case procedures of chapter 14 and shall be conducted by 
physicians that are independent of the case under 
reconsideration.  A majority decision by the physicians is 
necessary to make a determination that the services were not 
medically necessary.  Notwithstanding section 256B.72, the 
commissioner may recover inpatient hospital payments for 
services that have been determined to be medically unnecessary 
under the reconsideration process. 
    Sec. 23.  Minnesota Statutes 1991 Supplement, section 
256.969, subdivision 1, is amended to read: 
    Subdivision 1.  [HOSPITAL COST INDEX.] (a) The hospital 
cost index shall be obtained from an independent source and 
shall represent a weighted average of historical, as limited to 
statutory maximums, and projected cost change estimates 
determined for expense categories to include wages and salaries, 
employee benefits, medical and professional fees, raw food, 
utilities, insurance including malpractice insurance, and other 
applicable expenses as determined by the commissioner.  The 
index shall reflect Minnesota cost category weights.  Individual 
indices shall be specific to Minnesota if the commissioner 
determines that sufficient accuracy of the hospital cost index 
is achieved.  The hospital cost index shall may be used to 
adjust the base year operating payment rate through the rate 
year on an annually compounded basis.  Notwithstanding section 
256.9695, subdivision 3, paragraph (c), the hospital cost index 
shall not be effective under the general assistance medical care 
program for admissions occurring during the biennium ending June 
30, 1993, and the hospital cost index under medical assistance, 
excluding general assistance medical care, shall be increased by 
one percentage point to reflect changes in technology for 
admissions occurring after September 30, 1992. 
    (b) For fiscal years beginning on or after July 1, 1993, 
the commissioner of human services shall not provide automatic 
annual inflation adjustments for hospital payment rates under 
medical assistance, excluding the technology factor under 
paragraph (a), nor under general assistance medical care.  The 
commissioner of finance shall include as a budget change request 
in each biennial detailed expenditure budget submitted to the 
legislature under section 16A.11 annual adjustments in hospital 
payment rates under medical assistance and general assistance 
medical care, based upon the hospital cost index. 
    Sec. 24.  Minnesota Statutes 1991 Supplement, section 
256.969, subdivision 2, is amended to read: 
    Subd. 2.  [DIAGNOSTIC CATEGORIES.] The commissioner shall 
use to the extent possible existing diagnostic classification 
systems, including the system used by the Medicare program to 
determine the relative values of inpatient services and case mix 
indices.  The commissioner may combine diagnostic 
classifications into diagnostic categories and may establish 
separate categories and numbers of categories based on program 
eligibility or hospital peer group.  Relative values shall be 
recalculated when the base year is changed.  Relative value 
determinations shall include paid claims for admissions during 
each hospital's base year.  The commissioner may extend the time 
period forward to obtain sufficiently valid information to 
establish relative values.  Relative value determinations shall 
not include property cost data, Medicare crossover data, and 
data on admissions that are paid a per day transfer rate under 
subdivision 13 14.  The computation of the base year cost per 
admission must include identified outlier cases and their 
weighted costs up to the point that they become outlier cases, 
but must exclude costs recognized in outlier payments beyond 
that point.  The commissioner may recategorize the diagnostic 
classifications and recalculate relative values and case mix 
indices to reflect actual hospital practices, the specific 
character of specialty hospitals, or to reduce variances within 
the diagnostic categories after notice in the State Register and 
a 30-day comment period.  
    Sec. 25.  Minnesota Statutes 1991 Supplement, section 
256.969, subdivision 9, is amended to read: 
    Subd. 9.  [DISPROPORTIONATE NUMBERS OF LOW-INCOME PATIENTS 
SERVED.] For admissions occurring on or after July 1, 
1989 October 1, 1992, the medical assistance disproportionate 
population adjustment shall comply with federal law at fully 
implemented rates and shall be paid to a hospital, excluding 
regional treatment centers and facilities of the federal Indian 
Health Service, with a medical assistance inpatient utilization 
rate in excess of the arithmetic mean.  The adjustment must be 
determined as follows: 
    (1) for a hospital with a medical assistance inpatient 
utilization rate above the arithmetic mean for all hospitals 
excluding regional treatment centers and facilities of the 
federal Indian Health Service but less than or equal to one 
standard deviation above the mean, the adjustment must be 
determined by multiplying the total of the operating and 
property payment rates by the difference between the hospital's 
actual medical assistance inpatient utilization rate and the 
arithmetic mean for all hospitals excluding regional treatment 
centers and facilities of the federal Indian Health Service; and 
    (2) for a hospital with a medical assistance inpatient 
utilization rate above one standard deviation above the mean, 
the adjustment must be determined by multiplying the adjustment 
that would be determined under clause (1) for that hospital by 
1.1.  If federal matching funds are not available for all 
adjustments under this subdivision, the commissioner shall 
reduce payments on a pro rata basis so that all adjustments 
qualify for federal match.  The commissioner may establish a 
separate disproportionate population operating payment rate 
adjustment under the general assistance medical care 
program.  For purposes of this subdivision medical assistance 
does not include general assistance medical care.  The 
commissioner shall report annually on the number of hospitals 
likely to receive the adjustment authorized by this section.  
The commissioner shall specifically report on the adjustments 
received by public hospitals and public hospital corporations 
located in cities of the first class. 
    Sec. 26.  Minnesota Statutes 1991 Supplement, section 
256.969, subdivision 20, is amended to read: 
    Subd. 20.  [INCREASES IN MEDICAL ASSISTANCE INPATIENT 
PAYMENTS; CONDITIONS.] (a) Medical assistance inpatient payments 
shall increase 20 percent for inpatient hospital originally paid 
admissions, excluding Medicare crossovers, that occurred between 
July 1, 1988, and December 31, 1990, if:  (i) the hospital had 
100 or fewer Minnesota medical assistance annualized paid 
admissions, excluding Medicare crossovers, that were paid by 
March 1, 1988, for the period January 1, 1987, to June 30, 1987; 
(ii) the hospital had 100 or fewer licensed beds on March 1, 
1988; (iii) the hospital is located in Minnesota; and (iv) the 
hospital is not located in a city of the first class as defined 
in section 410.01.  For this paragraph, medical assistance does 
not include general assistance medical care. 
    (b) Medical assistance inpatient payments shall increase 15 
percent for inpatient hospital originally paid admissions, 
excluding Medicare crossovers, that occurred between July 1, 
1988, and December 31, 1990, if:  (i) the hospital had more than 
100 but fewer than 250 Minnesota medical assistance annualized 
paid admissions, excluding Medicare crossovers, that were paid 
by March 1, 1988, for the period January 1, 1987, to June 30, 
1987; (ii) the hospital had 100 or fewer licensed beds on March 
1, 1988; (iii) the hospital is located in Minnesota; and (iv) 
the hospital is not located in a city of the first class as 
defined in section 410.01.  For this paragraph, medical 
assistance does not include general assistance medical care. 
    (c) Medical assistance inpatient payment rates shall 
increase 20 percent for inpatient hospital originally paid 
admissions, excluding Medicare crossovers, that occur on or 
after October 1, 1992, if:  (i) the hospital had 100 or fewer 
Minnesota medical assistance annualized paid admissions, 
excluding Medicare crossovers, that were paid by March 1, 1988, 
for the period January 1, 1987, to June 30, 1987; (ii) the 
hospital had 100 or fewer licensed beds on March 1, 1988; (iii) 
the hospital is located in Minnesota; and (iv) the hospital is 
not located in a city of the first class as defined in section 
410.01.  For a hospital that qualifies for an adjustment under 
this paragraph and under subdivision 9, the hospital must be 
paid the adjustment under subdivision 9 plus any amount by which 
the adjustment under this paragraph exceeds the adjustment under 
subdivision 9.  For this paragraph, medical assistance does not 
include general assistance medical care. 
    (d) Medical assistance inpatient payments shall increase 15 
percent for inpatient hospital originally paid admissions, 
excluding Medicare crossovers, that occur after September 30, 
1992, if:  (i) the hospital had more than 100 but fewer than 250 
Minnesota medical assistance annualized paid admissions, 
excluding Medicare crossovers, that were paid by March 1, 1988, 
for the period January 1, 1987, to June 30, 1987; (ii) the 
hospital had 100 or fewer licensed beds on March 1, 1988; (iii) 
the hospital is located in Minnesota; and (iv) the hospital is 
not located in a city of the first class as defined in section 
410.01.  For a hospital that qualifies for an adjustment under 
this paragraph and under subdivision 9, the hospital must be 
paid the adjustment under subdivision 9 plus any amount by which 
the adjustment under this paragraph exceeds the adjustment under 
subdivision 9.  For this paragraph, medical assistance does not 
include general assistance medical care. 
    Sec. 27.  Minnesota Statutes 1991 Supplement, section 
256.969, subdivision 21, is amended to read: 
    Subd. 21.  [MENTAL HEALTH OR CHEMICAL DEPENDENCY 
ADMISSIONS; RATES.] Admissions occurring on or after July 1, 
1990, that are classified to a diagnostic category of mental 
health or chemical dependency shall have rates established 
according to the methods of subdivision 14, except the per day 
rate shall be multiplied by a factor of 2, provided that the 
total of the per day rates shall not exceed the per admission 
rate.  This methodology shall also apply when a hold or 
commitment is ordered by the court for the days that inpatient 
hospital services are medically necessary.  Stays Mental health 
and chemical dependency inpatient hospital services for a hold 
or commitment ordered by the court which are medically necessary 
for inpatient hospital services and covered by medical 
assistance shall not be billable to any other governmental 
entity.  Medical necessity shall be determined under criteria 
established to meet the requirements of section 256B.04, 
subdivision 15, or 256D.03, subdivision 7, paragraph (b). 
    Sec. 28.  Minnesota Statutes 1990, section 256.9695, 
subdivision 3, is amended to read: 
    Subd. 3.  [TRANSITION.] Except as provided in section 
256.969, subdivision 6a, paragraph (a), clause (3), the 
commissioner shall establish a transition period for the 
calculation of payment rates from July 1, 1989, to the 
implementation date of the upgrade to the Medicaid management 
information system or July 1, 1992, whichever is earlier. 
    During the transition period: 
    (a) Changes resulting from section 256.969, subdivision 6a, 
paragraph (a), clauses (1), (2), (4), (5), (6), and (8), shall 
not be implemented, except as provided in section 256.969, 
subdivision 6a, paragraph (a), clause (7), and paragraph (i). 
    (b) The beginning of the 1991 rate year shall be delayed 
and the rates notification requirement shall not be applicable. 
    (c) Operating payment rates shall be indexed from the 
hospital's most recent fiscal year ending prior to January 1, 
1991, by prorating the hospital cost index methodology in effect 
on January 1, 1989.  For payments made for admissions occurring 
on or after June 1, 1990, shall not be adjusted by the one 
percent technology factor included in the hospital cost index 
and until the implementation date of the upgrade to the Medicaid 
management information system the hospital cost index excluding 
the technology factor shall not exceed five percent.  This 
hospital cost index limitation shall not apply to hospitals that 
meet the requirements of section 256.969, subdivision 6a 20, 
paragraphs (g) (a) and (h) (b). 
    (d) Property and pass-through payment rates shall be 
maintained at the most recent payment rate effective for June 1, 
1990.  However, all hospitals are subject to the hospital cost 
index limitation of subdivision 2c, for two complete fiscal 
years.  Property and pass-through costs shall be retroactively 
settled through the transition period.  The laws in effect on 
the day before July 1, 1989, apply to the retroactive settlement.
    (e) If the upgrade to the Medicaid management information 
system has not been completed by July 1, 1992, the commissioner 
shall make adjustments for admissions occurring on or after that 
date as follows: 
    (1) provide a ten percent increase to hospitals that meet 
the requirements of section 256.969, subdivision 20, or, upon 
written request from the hospital to the commissioner, 50 
percent of the rate change that the commissioner estimates will 
occur after the upgrade to the Medicaid management information 
system; and 
    (2) adjust the rebased payment rates that are established 
after the upgrade to the Medicaid management information system 
to compensate for a rebasing effective date of July 1, 1992.  
The adjustment shall be based on the change in rates from July 
1, 1992, to the rebased rates in effect under the systems 
upgrade.  The adjustment shall reflect payments under clause 
(1), differences in the hospital cost index and dissimilar rate 
establishment procedures such as the variable outlier and the 
treatment of births and rehabilitation units of hospitals.  The 
adjustment shall be in effect for a period not to exceed the 
amount of time from July 1, 1992, to the systems upgrade. 
    Sec. 29.  Minnesota Statutes 1991 Supplement, section 
256.9751, subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the following terms have the meanings given them.  
    (a)  [CONGREGATE HOUSING.] "Congregate housing" means 
federally or locally subsidized housing, designed for the 
elderly, consisting of private apartments and common areas which 
can be used for activities and for serving meals. 
    (b)  [CONGREGATE HOUSING SERVICES PROJECTS.] "Congregate 
housing services project" means a project in which services are 
or could be made available to older persons who live in 
subsidized housing and which helps delay or prevent nursing home 
placement.  To be considered a congregate housing services 
project, a project must have:  (1) an on-site coordinator, and 
(2) a plan for providing a minimum assuring the availability of 
one meal per day, seven days a week, for each elderly 
participant, seven days a week in need.  
    (c)  [ON-SITE COORDINATOR.] "On-site coordinator" means a 
person who works on-site in a building or buildings and who 
serves as a contact for older persons who need services, 
support, and assistance in order to delay or prevent nursing 
home placement.  
    (d)  [CONGREGATE HOUSING SERVICES PROJECT PARTICIPANTS OR 
PROJECT PARTICIPANTS.] "Congregate housing services project 
participants" or "project participants" means elderly persons 60 
years old or older, who are currently residents of, or who are 
applying for residence in housing sites, and who need support 
services to remain independent. 
    Sec. 30.  Minnesota Statutes 1991 Supplement, section 
256.9751, subdivision 6, is amended to read: 
    Subd. 6.  [CRITERIA FOR SELECTION.] The Minnesota board on 
aging shall select projects under this section according to the 
following criteria: 
    (1) the extent to which the proposed project assists older 
persons to age-in-place to prevent or delay nursing home 
placement; 
    (2) the extent to which the proposed project identifies the 
needs of project participants; 
    (3) the extent to which the proposed project identifies how 
the on-site coordinator will help meet the needs of project 
participants; 
    (4) the extent to which the proposed project plan assures 
the availability of one meal a day, seven days a week, for 
participants each elderly participant in need; 
    (5) the extent to which the proposed project demonstrates 
involvement of participants and family members in the project; 
and 
    (6) the extent to which the proposed project demonstrates 
involvement of housing providers and public and private service 
agencies, including area agencies on aging. 
    Sec. 31.  Minnesota Statutes 1990, section 256B.02, is 
amended by adding a subdivision to read: 
    Subd. 14.  [GROUP HEALTH PLAN.] "Group health plan" means 
any plan of, or contributed to by, an employer, including a 
self-insured plan, to provide health care directly or otherwise 
to the employer's employees, former employees, or the families 
of the employees or former employees, and includes continuation 
coverage pursuant to title XXII of the Public Health Service 
Act, section 4980B of the Internal Revenue Code of 1986, or 
title VI of the Employee Retirement Income Security Act of 1974. 
    Sec. 32.  Minnesota Statutes 1990, section 256B.02, is 
amended by adding a subdivision to read: 
    Subd. 15.  [COST-EFFECTIVE.] "Cost-effective" means that 
the amount paid by the state for premiums, coinsurance, 
deductibles, other cost sharing obligations under a health 
insurance plan, and other administrative costs is likely to be 
less than the amount paid for an equivalent set of services paid 
by medical assistance. 
    Sec. 33.  Minnesota Statutes 1990, section 256B.035, is 
amended to read: 
    256B.035 [MANAGED CARE.] 
    The commissioner of human services may contract with public 
or private entities for health care services for or operate a 
preferred provider program to deliver health care services to 
medical assistance and, general assistance medical care, and 
children's health plan recipients identified by the commissioner 
as inappropriately using health care services.  The commissioner 
may enter into risk-based and non-risk-based contracts.  
Contracts may be for the full range of health services, or a 
portion thereof, for medical assistance and general assistance 
medical care populations to determine the effectiveness of 
various provider reimbursement and care delivery mechanisms.  
The commissioner may seek necessary federal waivers and 
implement projects when approval of the waivers is obtained from 
the Health Care Financing Administration of the United States 
Department of Health and Human Services. 
    Sec. 34.  Minnesota Statutes 1990, section 256B.056, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [INCOME AND ASSETS GENERALLY.] Unless 
specifically required by state law or rule or federal law or 
regulation, the methodologies used in counting income and assets 
to determine eligibility for medical assistance shall be as 
follows:  (a) for persons whose eligibility category is based on 
blindness, disability, or age of 65 or more years, the 
methodologies for the supplemental security income program shall 
be used; and (b) for families and children, which includes all 
other eligibility categories, the methodologies for the aid to 
families with dependent children program under section 256.73 
shall be used.  For these purposes, a "methodology" does not 
include an asset or income standard, budgeting or accounting 
method, or method of determining effective dates. 
    Sec. 35.  Minnesota Statutes 1990, section 256B.056, 
subdivision 2, is amended to read: 
    Subd. 2.  [HOMESTEAD; EXCLUSION FOR INSTITUTIONALIZED 
PERSONS.] To be eligible for medical assistance, a person must 
not own, individually or together with the person's spouse, real 
property other than the homestead.  For the purposes of this 
section, "homestead" means the house owned and occupied by the 
applicant or recipient as a primary place of residence, together 
with the contiguous land upon which it is situated.  The 
homestead shall be excluded for the first six calendar months of 
a person's stay in a long-term care facility and shall continue 
to be excluded for as long as the recipient can be reasonably 
expected to return, as provided under the methodologies for the 
supplemental security income program.  The homestead shall 
continue to be excluded for persons residing in a long-term care 
facility if it is used as a primary residence by one of the 
following individuals:  
    (a) the spouse; 
    (b) a child under age 21; 
    (c) a child of any age who is blind or permanently and 
totally disabled as defined in the supplemental security income 
program; 
    (d) a sibling who has equity interest in the home and who 
resided in the home for at least one year immediately before the 
date of the person's admission to the facility; or 
    (e) a child of any age, or, subject to federal approval, a 
grandchild of any age, who resided in the home for at least two 
years immediately before the date of the person's admission to 
the facility, and who provided care to the person that permitted 
the person to reside at home rather than in an institution.  
    The homestead is also excluded for the first six calendar 
months of the person's stay in the long-term care facility.  The 
person's equity in the homestead must be reduced to an amount 
within limits or excluded on another basis if the person remains 
in the long-term care facility for a period longer than six 
months.  Real estate not used as a home may not be retained 
unless the property is not salable, the equity is $6,000 or less 
and the income produced by the property is at least six percent 
of the equity, or the excess real property is exempted for a 
period of nine months if there is a good faith effort to sell 
the property and a legally binding agreement is signed to repay 
the amount of assistance issued during that nine months.  
    Sec. 36.  Minnesota Statutes 1990, section 256B.056, 
subdivision 3, is amended to read: 
    Subd. 3.  [ASSET LIMITATIONS.] To be eligible for medical 
assistance, a person must not individually own more than $3,000 
in assets, or if a member of a household with two family members 
(husband and wife, or parent and child), the household must not 
own more than $6,000 in assets, plus $200 for each additional 
legal dependent.  In addition to these maximum amounts, an 
eligible individual or family may accrue interest on these 
amounts, but they must be reduced to the maximum at the time of 
an eligibility redetermination.  For residents of long-term care 
facilities, the accumulation of the clothing and personal needs 
allowance pursuant to section 256B.35 must also be reduced to 
the maximum at the time of the eligibility redetermination.  The 
value of the items in paragraphs (a) to (i) are not considered 
in determining medical assistance eligibility.  The accumulation 
of the clothing and personal needs allowance pursuant to section 
256B.35 must also be reduced to the maximum at the time of the 
eligibility redetermination.  The value of assets that are not 
considered in determining eligibility for medical assistance is 
the value of those assets that are excluded by the aid to 
families with dependent children program for families and 
children, and the supplemental security income program for aged, 
blind, and disabled persons, with the following exceptions: 
    (a) The homestead is not considered. 
    (b) Household goods and personal effects are not considered.
    (c) Personal property used as a regular abode by the 
applicant or recipient is not considered.  
    (d) A lot in a burial plot for each member of the household 
is not considered. 
    (e) (b) Capital and operating assets of a trade or business 
that the local agency determines are necessary to the person's 
ability to earn an income are not considered. 
    (f) Insurance settlements to repair or replace damaged, 
destroyed, or stolen property are considered to the same extent 
as in the related cash assistance programs. 
    (g) One motor vehicle that is licensed pursuant to chapter 
168 and defined as:  (1) passenger automobile, (2) station 
wagon, (3) motorcycle, (4) motorized bicycle or (5) truck of the 
weight found in categories A to E, of section 168.013, 
subdivision 1e, and that is used primarily for the person's 
benefit is not considered. 
    To be excluded, the vehicle must have a market value of 
less than $4,500; be necessary to obtain medically necessary 
health services; be necessary for employment; be modified for 
operation by or transportation of a handicapped person; or be 
necessary to perform essential daily tasks because of climate, 
terrain, distance, or similar factors.  The equity value of 
other motor vehicles is counted against the asset limit. 
    (h) Life insurance policies and assets designated as burial 
expenses, according to the standards and restrictions of the 
supplemental security income (SSI) program. 
    (i) Other items excluded by federal law are not considered. 
    (c) Motor vehicles are excluded to the same extent excluded 
by the supplemental security income program. 
    (d) Assets designated as burial expenses are excluded to 
the same extent excluded by the supplemental security income 
program. 
    Sec. 37.  Minnesota Statutes 1990, section 256B.056, 
subdivision 5, is amended to read: 
    Subd. 5.  [EXCESS INCOME.] A person who has excess income 
is eligible for medical assistance if the person has expenses 
for medical care that are more than the amount of the person's 
excess income, computed by deducting incurred medical expenses 
from the excess income to reduce the excess to the income 
standard specified in subdivision 4.  The person shall elect to 
have the medical expenses deducted at the beginning of a 
one-month budget period or at the beginning of a six-month 
budget period.  Until June 30, 1993, or the date the Medicaid 
Management Information System (MMIS) upgrade is implemented, 
whichever occurs last, the commissioner shall seek applicable 
waivers from the Secretary of Health and Human Services to allow 
persons eligible for assistance on a one-month spend-down basis 
under this subdivision to elect to pay the monthly spend-down 
amount in advance of the month of eligibility to the local 
agency in order to maintain eligibility on a continuous 
basis for medical assistance and to simplify payment to health 
care providers.  If the local agency has not received payment of 
the spend-down amount by the 15th day of the month recipient 
does not pay the spend-down amount on or before the 20th of the 
month, the recipient is ineligible for this option for the 
following month.  The commissioner may seek a waiver of the 
requirement of the Social Security Act that all requirements be 
uniform statewide, to phase in this option over a six-month 
period.  The local agency must deposit spend-down payments into 
its treasury and issue a monthly payment to the state agency 
with the necessary individual account information.  The local 
agency shall code the client eligibility system to indicate that 
the spend-down obligation has been satisfied for the month paid. 
The state agency shall convey this information to providers 
through eligibility cards which list no remaining spend-down 
obligation.  After the implementation of the MMIS upgrade, the 
recipient may elect to pay the state agency the monthly 
spend-down amount.  The recipient must make the payment on or 
before the 20th of the month in order to be eligible for this 
option in the following month. 
    Sec. 38.  Minnesota Statutes 1990, section 256B.056, is 
amended by adding a subdivision to read: 
    Subd. 8.  [COOPERATION.] To be eligible for medical 
assistance, applicants and recipients must cooperate with the 
state and local agency to identify potentially liable 
third-party payers and assist the state in obtaining third party 
payments, unless good cause for noncooperation is determined 
according to Code of Federal Regulations, title 42, part 
433.147.  "Cooperation" includes identifying any third party who 
may be liable for care and services provided under this chapter 
to the applicant, recipient, or any other family member for whom 
application is made and providing relevant information to assist 
the state in pursuing a potentially liable third party.  
Cooperation also includes providing information about a group 
health plan for which the person may be eligible and if the plan 
is determined cost-effective by the state agency and premiums 
are paid by the local agency or there is no cost to the 
recipient, they must enroll or remain enrolled with the group.  
Cost-effective insurance premiums approved for payment by the 
state agency and paid by the local agency are eligible for 
reimbursement according to section 256B.19. 
    Sec. 39.  Minnesota Statutes 1990, section 256B.057, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [ELIGIBILITY FOR PAYMENT OF MEDICARE PART B 
PREMIUMS.] A person who would otherwise be eligible as a 
qualified Medicare beneficiary under subdivision 3, except the 
person's income is in excess of the limit, is eligible for 
medical assistance reimbursement of Medicare part B premiums if 
the person's income is less than 110 percent of the official 
federal poverty guidelines for the applicable family size.  The 
income limit shall increase to 120 percent of the official 
federal poverty guidelines for the applicable family size on 
January 1, 1995. 
    Sec. 40.  Minnesota Statutes 1990, section 256B.059, 
subdivision 2, is amended to read: 
    Subd. 2.  [ASSESSMENT OF SPOUSAL SHARE.] At the beginning 
of a continuous period of institutionalization of a person, at 
the request of either the institutionalized spouse or the 
community spouse, or upon application for medical assistance, 
the total value of assets in which either the institutionalized 
spouse or the community spouse had an interest at the time 
of the first period of institutionalization of 30 days or more 
shall be assessed and documented and the spousal share shall be 
assessed and documented. 
    Sec. 41.  Minnesota Statutes 1990, section 256B.059, 
subdivision 5, is amended to read: 
    Subd. 5.  [ASSET AVAILABILITY.] (a) At the time of 
application for medical assistance benefits, assets considered 
available to the institutionalized spouse shall be the total 
value of all assets in which either spouse has an ownership 
interest, reduced by the greater of: 
    (1) $12,000; or 
    (2) the lesser of the spousal share or $60,000; or 
    (3) the amount required by court order to be paid to the 
community spouse.  If the community spouse asset allowance has 
been increased under subdivision 4, then the assets considered 
available to the institutionalized spouse under this subdivision 
shall be further reduced by the value of additional amounts 
allowed under subdivision 4. 
    (b) An institutionalized spouse may be found eligible for 
medical assistance even though assets in excess of the allowable 
amount are found to be available under paragraph (a) if the 
assets are owned jointly or individually by the community 
spouse, and the institutionalized spouse cannot use those assets 
to pay for the cost of care without the consent of the community 
spouse, and if:  (i) the institutionalized spouse assigns to the 
commissioner the right to support from the community spouse 
under section 256B.14, subdivision 2; (ii) the institutionalized 
spouse lacks the ability to execute an assignment due to a 
physical or mental impairment; or (iii) the denial of 
eligibility would cause an imminent threat to the 
institutionalized spouse's health and well-being. 
    (c) After the month in which the institutionalized spouse 
is determined eligible for medical assistance, during the 
continuous period of institutionalization, no assets of the 
community spouse are considered available to the 
institutionalized spouse, unless the institutionalized spouse 
has been found eligible under clause (b). 
    (d) Assets determined to be available to the 
institutionalized spouse under this section must be used for the 
health care or personal needs of the institutionalized spouse. 
    (e) For purposes of this section, assets do not include 
assets excluded under section 256B.056, without regard to the 
limitations on total value in that section. 
    Sec. 42.  Minnesota Statutes 1990, section 256B.0595, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PROHIBITED TRANSFERS.] (a) If a person or 
the person's spouse has given away, sold, or disposed of, for 
less than fair market value, any asset or interest therein, 
except assets other than the homestead that are excluded under 
section 256B.056, subdivision 3, within 30 months before or any 
time after the date of institutionalization if the person has 
been determined eligible for medical assistance, or within 30 
months before or any time after the date of the first approved 
application for medical assistance if the person has not yet 
been determined eligible for medical assistance, the person is 
ineligible for long-term care services for the period of time 
determined under subdivision 2.  
    (b) This section applies to transfers, for less than fair 
market value, of income or assets that are considered income in 
the month received, such as inheritances, court settlements, and 
retroactive benefit payments.  
    (c) This section applies to payments for care or personal 
services provided by a relative, unless the compensation was 
stipulated in a notarized, written agreement which was in 
existence when the service was performed, the care or services 
directly benefited the person, and the payments made represented 
reasonable compensation for the care or services provided.  A 
notarized written agreement is not required if payment for the 
services was made within 60 days after the service was provided. 
    (d) This section applies to the portion of any asset or 
interest that a person or a person's spouse transfers to an 
irrevocable trust, annuity, or other instrument, that exceeds 
the value of the benefit likely to be returned to the person or 
spouse during his or her lifetime, based on his or her estimated 
life expectancy using the life expectancy tables employed by the 
supplemental security income program to determine the value of 
an agreement for services for life.  The commissioner may adopt 
rules reducing life expectancies based on the need for long-term 
care. 
    (e) For purposes of this section, long-term care services 
include nursing facility services, and home home- and 
community-based services provided pursuant to section 256B.491.  
For purposes of this subdivision and subdivisions 2, 3, and 4, 
"institutionalized person" includes a person who is an inpatient 
in a nursing facility, or who is receiving home home- and 
community-based services under section 256B.491. 
    Sec. 43.  Minnesota Statutes 1991 Supplement, section 
256B.0625, subdivision 2, is amended to read: 
    Subd. 2.  [SKILLED AND INTERMEDIATE NURSING CARE.] Medical 
assistance covers skilled nursing home services and services of 
intermediate care facilities, including training and 
habilitation services, as defined in section 252.41, subdivision 
3, for persons with mental retardation or related conditions who 
are residing in intermediate care facilities for persons with 
mental retardation or related conditions.  Medical assistance 
must not be used to pay the costs of nursing care provided to a 
patient in a swing bed as defined in section 144.562, unless (a) 
the facility in which the swing bed is located is eligible as a 
sole community provider, as defined in Code of Federal 
Regulations, title 42, section 412.92, or the facility is a 
public hospital owned by a governmental entity with 15 or fewer 
licensed acute care beds; (b) the health care financing 
administration approves the necessary state plan amendments; (c) 
the patient was screened as provided by law; (d) the patient no 
longer requires acute care services; and (e) no nursing home 
beds are available within 25 miles of the facility.  Medical 
assistance also covers up to ten days of nursing care provided 
to a patient in a swing bed if:  (1) the patient's physician 
certifies that the patient has a terminal illness or condition 
that is likely to result in death within 30 days and that moving 
the patient would not be in the best interests of the patient 
and patient's family; (2) no open nursing home beds are 
available within 25 miles of the facility; and (3) no open beds 
are available in any Medicare hospice program within 50 miles of 
the facility.  The daily medical assistance payment for nursing 
care for the patient in the swing bed is the statewide average 
medical assistance skilled nursing care per diem as computed 
annually by the commissioner on July 1 of each year. 
    Sec. 44.  Minnesota Statutes 1991 Supplement, section 
256B.0625, subdivision 13, is amended to read: 
    Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs if 
prescribed by a licensed practitioner and dispensed by a 
licensed pharmacist, or by a physician enrolled in the medical 
assistance program as a dispensing physician.  The commissioner, 
after receiving recommendations from the Minnesota medical 
association and the Minnesota pharmacists association, shall 
designate a formulary committee to advise the commissioner on 
the names of drugs for which payment is made, recommend a system 
for reimbursing providers on a set fee or charge basis rather 
than the present system, and develop methods encouraging use of 
generic drugs when they are less expensive and equally effective 
as trademark drugs.  The commissioner shall appoint the 
formulary committee members no later than 30 days following July 
1, 1981.  The formulary committee shall consist of nine members, 
four of whom shall be physicians who are not employed by the 
department of human services, and a majority of whose practice 
is for persons paying privately or through health insurance, 
three of whom shall be pharmacists who are not employed by the 
department of human services, and a majority of whose practice 
is for persons paying privately or through health insurance, a 
consumer representative, and a nursing home representative.  
Committee members shall serve two-year terms and shall serve 
without compensation.  The commissioner shall establish a drug 
formulary.  Its establishment and publication shall not be 
subject to the requirements of the administrative procedure act, 
but the formulary committee shall review and comment on the 
formulary contents.  The formulary committee shall review and 
recommend drugs which require prior authorization.  The 
formulary committee may recommend drugs for prior authorization 
directly to the commissioner, as long as opportunity for public 
input is provided.  Prior authorization may be requested by the 
commissioner based on medical and clinical criteria before 
certain drugs are eligible for payment.  Before a drug may be 
considered for prior authorization at the request of the 
commissioner:  
    (1) the drug formulary committee must develop criteria to 
be used for identifying drugs; the development of these criteria 
is not subject to the requirements of chapter 14, but the 
formulary committee shall provide opportunity for public input 
in developing criteria; 
    (2) the drug formulary committee must hold a public forum 
and receive public comment for an additional 15 days; and 
    (3) the commissioner must provide information to the 
formulary committee on the impact that placing the drug on prior 
authorization will have on the quality of patient care and 
information regarding whether the drug is subject to clinical 
abuse or misuse.  Prior authorization may be required by the 
commissioner before certain formulary drugs are eligible for 
payment.  The formulary shall not include:  drugs or products 
for which there is no federal funding; over-the-counter drugs, 
except for antacids, acetaminophen, family planning products, 
aspirin, insulin, products for the treatment of lice, and 
vitamins for children under the age of seven and pregnant or 
nursing women; or any other over-the-counter drug identified by 
the commissioner, in consultation with the drug formulary 
committee as necessary, appropriate and cost effective for the 
treatment of certain specified chronic diseases, conditions or 
disorders, and this determination shall not be subject to the 
requirements of chapter 14, the administrative procedure act; 
nutritional products, except for those products needed for 
treatment of phenylketonuria, hyperlysinemia, maple syrup urine 
disease, a combined allergy to human milk, cow milk, and soy 
formula, or any other childhood or adult diseases, conditions, 
or disorders identified by the commissioner as requiring a 
similarly necessary nutritional product; anorectics; and drugs 
for which medical value has not been established.  Nutritional 
products needed for the treatment of a combined allergy to human 
milk, cow's milk, and soy formula require prior authorization.  
Separate payment shall not be made for nutritional products for 
residents of long-term care facilities; payment for dietary 
requirements is a component of the per diem rate paid to these 
facilities.  Payment to drug vendors shall not be modified 
before the formulary is established except that the commissioner 
shall not permit payment for any drugs which may not by law be 
included in the formulary, and the commissioner's determination 
shall not be subject to chapter 14, the administrative procedure 
act.  The commissioner shall publish conditions for prohibiting 
payment for specific drugs after considering the formulary 
committee's recommendations.  
    (b) The basis for determining the amount of payment shall 
be the lower of the actual acquisition costs of the drugs plus a 
fixed dispensing fee established by the commissioner, the 
maximum allowable cost set by the federal government or by the 
commissioner plus the fixed dispensing fee or the usual and 
customary price charged to the public.  Actual acquisition cost 
includes quantity and other special discounts except time and 
cash discounts.  The actual acquisition cost of a drug may be 
estimated by the commissioner.  The maximum allowable cost of a 
multisource drug may be set by the commissioner and it shall be 
comparable to, but no higher than, the maximum amount paid by 
other third party payors in this state who have maximum 
allowable cost programs.  Establishment of the amount of payment 
for drugs shall not be subject to the requirements of the 
administrative procedure act.  An additional dispensing fee of 
$.30 may be added to the dispensing fee paid to pharmacists for 
legend drug prescriptions dispensed to residents of long-term 
care facilities when a unit dose blister card system, approved 
by the department, is used.  Under this type of dispensing 
system, the pharmacist must dispense a 30-day supply of drug.  
The National Drug Code (NDC) from the drug container used to 
fill the blister card must be identified on the claim to the 
department.  The unit dose blister card containing the drug must 
meet the packaging standards set forth in Minnesota Rules, part 
6800.2700, that govern the return of unused drugs to the 
pharmacy for reuse.  The pharmacy provider will be required to 
credit the department for the actual acquisition cost of all 
unused drugs that are eligible for reuse.  Over-the-counter 
medications must be dispensed in the manufacturer's unopened 
package.  The commissioner may permit the drug clozapine to be 
dispensed in a quantity that is less than a 30-day supply.  
Whenever a generically equivalent product is available, payment 
shall be on the basis of the actual acquisition cost of the 
generic drug, unless the prescriber specifically indicates 
"dispense as written - brand necessary" on the prescription as 
required by section 151.21, subdivision 2.  Implementation of 
any change in the fixed dispensing fee that has not been subject 
to the administrative procedure act is limited to not more than 
180 days, unless, during that time, the commissioner initiates 
rulemaking through the administrative procedure act. 
    (c) Until January 4, 1993, or the date the Medicaid 
Management Information System (MMIS) upgrade is implemented, 
whichever occurs last, a pharmacy provider may require 
individuals who seek to become eligible for medical assistance 
under a one-month spend-down, as provided in section 256B.056, 
subdivision 5, to pay for services to the extent of the 
spend-down amount at the time the services are provided.  A 
pharmacy provider choosing this option shall file a medical 
assistance claim for the pharmacy services provided.  If medical 
assistance reimbursement is received for this claim, the 
pharmacy provider shall return to the individual the total 
amount paid by the individual for the pharmacy services 
reimbursed by the medical assistance program.  If the claim is 
not eligible for medical assistance reimbursement because of the 
provider's failure to comply with the provisions of the medical 
assistance program, the pharmacy provider shall refund to the 
individual the total amount paid by the individual.  Pharmacy 
providers may choose this option only if they apply similar 
credit restrictions to private pay or privately insured 
individuals.  A pharmacy provider choosing this option must 
inform individuals who seek to become eligible for medical 
assistance under a one-month spend-down of (1) their right to 
appeal the denial of services on the grounds that they have 
satisfied the spend-down requirement, and (2) their potential 
eligibility for the health right program or the children's 
health plan. 
    Sec. 45.  Minnesota Statutes 1990, section 256B.0625, is 
amended by adding a subdivision to read: 
    Subd. 13a.  [DRUG UTILIZATION REVIEW BOARD.] A 12-member 
drug utilization review board is established.  The board is 
comprised of six licensed physicians actively engaged in the 
practice of medicine in Minnesota; five licensed pharmacists 
actively engaged in the practice of pharmacy in Minnesota; and 
one consumer representative.  The board shall be staffed by an 
employee of the department who shall serve as an ex officio 
nonvoting member of the board.  The members of the board shall 
be appointed by the commissioner and shall serve three-year 
terms.  The physician members shall be selected from a list 
submitted by the Minnesota medical association.  The pharmacist 
members shall be selected from a list submitted by the Minnesota 
pharmacist association.  The commissioner shall appoint the 
initial members of the board for terms expiring as follows:  
four members for terms expiring June 30, 1995; four members for 
terms expiring June 30, 1994; and four members for terms 
expiring June 30, 1993.  Members may be reappointed once.  The 
board shall annually elect a chair from among the members. 
    The commissioner shall, with the advice of the board: 
    (1) implement a medical assistance retrospective and 
prospective drug utilization review program as required by 
United States Code, title 42, section 1396r-8(g)(3); 
    (2) develop and implement the predetermined criteria and 
practice parameters for appropriate prescribing to be used in 
retrospective and prospective drug utilization review; 
    (3) develop, select, implement, and assess interventions 
for physicians, pharmacists, and patients that are educational 
and not punitive in nature; 
    (4) establish a grievance and appeals process for 
physicians and pharmacists under this section; 
    (5) publish and disseminate educational information to 
physicians and pharmacists regarding the board and the review 
program; 
    (6) adopt and implement procedures designed to ensure the 
confidentiality of any information collected, stored, retrieved, 
assessed, or analyzed by the board, staff to the board, or 
contractors to the review program that identifies individual 
physicians, pharmacists, or recipients; 
    (7) establish and implement an ongoing process to (i) 
receive public comment regarding drug utilization review 
criteria and standards, and (ii) consider the comments along 
with other scientific and clinical information in order to 
revise criteria and standards on a timely basis; and 
    (8) adopt any rules necessary to carry out this section. 
    The board may establish advisory committees.  The 
commissioner may contract with appropriate organizations to 
assist the board in carrying out the board's duties.  The 
commissioner may enter into contracts for services to develop 
and implement a retrospective and prospective review program. 
    The board shall report to the commissioner annually on 
December 1.  The commissioner shall make the report available to 
the public upon request.  The report must include information on 
the activities of the board and the program; the effectiveness 
of implemented interventions; administrative costs; and any 
fiscal impact resulting from the program. 
    Sec. 46.  Minnesota Statutes 1991 Supplement, section 
256B.0625, subdivision 17, is amended to read: 
    Subd. 17.  [TRANSPORTATION COSTS.] (a) Medical assistance 
covers transportation costs incurred solely for obtaining 
emergency medical care or transportation costs incurred by 
nonambulatory persons in obtaining emergency or nonemergency 
medical care when paid directly to an ambulance company, common 
carrier, or other recognized providers of transportation 
services.  For the purpose of this subdivision, a person who is 
incapable of transport by taxicab or bus shall be considered to 
be nonambulatory. 
    (b) Medical assistance covers special transportation, as 
defined in Minnesota Rules, part 9505.0315, subpart 1, item F, 
if the provider receives and maintains a current physician's 
order by the recipient's attending physician.  The commissioner 
shall establish maximum medical assistance reimbursement rates 
for special transportation services for persons who need a 
wheelchair lift van or stretcher-equipped vehicle and for those 
who do not need a wheelchair lift van or stretcher-equipped 
vehicle.  The average of these two rates must not 
exceed $12.50 $13 for the base rate and $1 per mile.  Special 
transportation provided to nonambulatory persons who do not need 
a wheelchair lift van or stretcher-equipped vehicle, may be 
reimbursed at a lower rate than special transportation provided 
to persons who need a wheelchair lift van or stretcher-equipped 
vehicle. 
    Sec. 47.  Minnesota Statutes 1990, section 256B.0625, is 
amended by adding a subdivision to read: 
    Subd. 19b.  [NO AUTOMATIC ADJUSTMENT.] For fiscal years 
beginning on or after July 1, 1993, the commissioner of human 
services shall not provide automatic annual inflation 
adjustments for home care services.  The commissioner of finance 
shall include as a budget change request in each biennial 
detailed expenditure budget submitted to the legislature under 
section 16A.11 annual adjustments in reimbursement rates for 
home care services. 
    Sec. 48.  Minnesota Statutes 1990, section 256B.0625, is 
amended by adding a subdivision to read: 
    Subd. 19c.  [PERSONAL CARE.] Medical assistance covers 
personal care services provided by an individual who is 
qualified to provide the services according to subdivision 19a 
and section 256B.0627, where the services are prescribed by a 
physician in accordance with a plan of treatment and are 
supervised by a registered nurse.  
    Sec. 49.  Minnesota Statutes 1990, section 256B.0625, is 
amended by adding a subdivision to read: 
    Subd. 31.  [MEDICAL SUPPLIES AND EQUIPMENT.] Medical 
assistance covers medical supplies and equipment.  Separate 
payment outside of the facility's payment rate shall be made for 
wheelchairs and wheelchair accessories for recipients who are 
residents of intermediate care facilities for the mentally 
retarded.  Reimbursement for wheelchairs and wheelchair 
accessories for ICF/MR recipients shall be subject to the same 
conditions and limitations as coverage for recipients who do not 
reside in institutions.  A wheelchair purchased outside of the 
facility's payment rate is the property of the recipient. 
    Sec. 50.  Minnesota Statutes 1991 Supplement, section 
256B.0627, subdivision 5, as amended by Laws 1992, chapter 391, 
section 5, is amended to read: 
    Subd. 5.  [LIMITATION ON PAYMENTS.] Medical assistance 
payments for home care services shall be limited according to 
this subdivision.  
    (a)  [EXEMPTION FROM PAYMENT LIMITATIONS.] The level, or 
the number of hours or visits of a specific service, of home 
care services to a recipient that began before and is continued 
without increase on or after December 1987, shall be exempt from 
the payment limitations of this section, as long as the services 
are medically necessary.  
    (b)  [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 
recipient may receive the following amounts of home care 
services during a calendar year: 
    (1) a total of 40 home health aide visits, or skilled nurse 
visits, health promotions, or health assessments under section 
256B.0625, subdivision 6a; and 
    (2) a total of ten hours of nursing supervision under 
section 256B.0625, subdivision 7 or 19a.  
    (c)  [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 
services above the limits in paragraph (b) must receive the 
commissioner's prior authorization, except when: 
    (1) the home care services were required to treat an 
emergency medical condition that if not immediately treated 
could cause a recipient serious physical or mental disability, 
continuation of severe pain, or death.  The provider must 
request retroactive authorization no later than five working 
days after giving the initial service.  The provider must be 
able to substantiate the emergency by documentation such as 
reports, notes, and admission or discharge histories; 
     (2) the home care services were provided on or after the 
date on which the recipient's eligibility began, but before the 
date on which the recipient was notified that the case was 
opened.  Authorization will be considered if the request is 
submitted by the provider within 20 working days of the date the 
recipient was notified that the case was opened; or 
     (3) a third party payor for home care services has denied 
or adjusted a payment.  Authorization requests must be submitted 
by the provider within 20 working days of the notice of denial 
or adjustment.  A copy of the notice must be included with the 
request. 
     (d)  [RETROACTIVE AUTHORIZATION.] A request for retroactive 
authorization under paragraph (c) will be evaluated according to 
the same criteria applied to prior authorization requests.  
Implementation of this provision shall begin no later than 
October 1, 1991, except that recipients who are currently 
receiving medically necessary services above the limits 
established under this subdivision may have a reasonable amount 
of time to arrange for waivered services under section 256B.49 
or to establish an alternative living arrangement.  All current 
recipients shall be phased down to the limits established under 
paragraph (b) on or before April 1, 1992. 
    (e)  [ASSESSMENT AND CARE PLAN.] The home care provider 
shall conduct an assessment and complete a care plan using forms 
specified by the commissioner.  For the recipient to receive, or 
continue to receive, home care services, the provider must 
submit evidence necessary for the commissioner to determine the 
medical necessity of the home care services.  The provider shall 
submit to the commissioner the assessment, the care plan, and 
other information necessary to determine medical necessity such 
as diagnostic or testing information, social or medical 
histories, and hospital or facility discharge summaries. 
    (f)  [PRIOR AUTHORIZATION.] The commissioner, or the 
commissioner's designee, shall review the assessment, the care 
plan, and any additional information that is submitted.  The 
commissioner shall, within 30 days after receiving a complete 
request for prior authorization, assessment, and care plan, 
authorize home care services as follows:  
    (1)  [HOME HEALTH SERVICES.] All home health services 
provided by a nurse or a home health aide that exceed the limits 
established in paragraph (b) must be prior authorized by the 
commissioner or the commissioner's designee.  Prior 
authorization must be based on medical necessity and 
cost-effectiveness when compared with other care options. 
    (2)  [PERSONAL CARE SERVICES.] (i) All personal care 
services must be prior authorized by the commissioner or the 
commissioner's designee except for the limits on supervision 
established in paragraph (b).  The amount of personal care 
services authorized must be based on the recipient's case mix 
classification according to section 256B.0911, except that a 
child may not be found to be dependent in an activity of daily 
living if because of the child's age an adult would either 
perform the activity for the child or assist the child with the 
activity and the amount of assistance needed is similar to the 
assistance appropriate for a typical child of the same age.  
Based on medical necessity, the commissioner may authorize: 
    (A) up to two times the average number of direct care hours 
provided in nursing facilities for the recipient's comparable 
case mix level; 
    (B) up to three times the average number of direct care 
hours provided in nursing facilities for recipients who have 
complex medical needs; 
    (C) up to 60 percent of the average reimbursement rate, as 
of July 1, 1991, for care provided in a regional treatment 
center for recipients who have complex behaviors; 
    (D) up to the amount the commissioner would pay, as of July 
1, 1991, for care provided in a regional treatment center for 
recipients referred to the commissioner by a regional treatment 
center preadmission evaluation team.  For purposes of this 
clause, home care services means all services provided in the 
home or community that would be included in the payment to a 
regional treatment center; or 
     (E) up to the amount medical assistance would reimburse for 
facility care for recipients referred to the commissioner by a 
preadmission screening team established under section 256B.091 
or 256B.092. 
    (ii) The number of direct care hours shall be determined 
according to annual cost reports which are submitted to the 
department by nursing facilities each year.  The average number 
of direct care hours, as established by May 1, shall be 
calculated and incorporated into the home care limits on July 1 
each year.  These limits shall be calculated to the nearest 
quarter hour. 
    (iii) The case mix level shall be determined by the 
commissioner or the commissioner's designee based on information 
submitted to the commissioner by the personal care provider on 
forms specified by the commissioner.  The forms shall be a 
combination of current assessment tools developed under sections 
256B.0911 and 256B.501 with an addition for seizure activity 
that will assess the frequency and severity of seizure activity 
and with adjustments, additions, and clarifications that are 
necessary to reflect the needs and conditions of children and 
nonelderly adults who need home care.  The commissioner shall 
establish these forms and protocols under this section and shall 
use the advisory group established in section 256B.04, 
subdivision 16, for consultation in establishing the forms and 
protocols by October 1, 1991. 
    (iv) A recipient shall qualify as having complex medical 
needs if they require: 
    (A) daily tube feedings; 
    (B) daily parenteral therapy; 
    (C) wound or decubiti care; 
    (D) postural drainage, percussion, nebulizer treatments, 
suctioning, tracheotomy care, oxygen, mechanical ventilation; 
    (E) catheterization; 
    (F) ostomy care; or 
    (G) other comparable medical conditions or treatments the 
commissioner determines would otherwise require institutional 
care. 
    (v) A recipient shall qualify as having complex behavior if 
the recipient exhibits on a daily basis the following: 
    (A) self-injurious behavior; 
    (B) unusual or repetitive habits; 
    (C) withdrawal behavior; 
    (D) hurtful behavior to others; 
    (E) socially or offensive behavior; 
    (F) destruction of property; or 
    (G) a need for constant one-to-one supervision for 
self-preservation. 
    (vi) The complex behaviors in clauses (A) to (G) have the 
meanings developed under section 256B.501. 
    (3)  [PRIVATE DUTY NURSING SERVICES.] All private duty 
nursing services shall be prior authorized by the commissioner 
or the commissioner's designee.  Prior authorization for private 
duty nursing services shall be based on medical necessity and 
cost-effectiveness when compared with alternative care options.  
The commissioner may authorize medically necessary private duty 
nursing services in quarter-hour units when: 
    (i) the recipient requires more individual and continuous 
care than can be provided during a nurse visit; or 
    (ii) the cares are outside of the scope of services that 
can be provided by a home health aide or personal care assistant.
    The commissioner may authorize up to 16 hours per day of 
private duty nursing services or up to 24 hours per day of 
private duty nursing services until such time as the 
commissioner is able to make a determination of eligibility for 
recipients who are cooperatively applying for home care services 
under the community alternative care program developed under 
section 256B.49, or until it is determined by the appropriate 
regulatory agency that a health benefit plan is or is not 
required to pay for appropriate medically necessary 
nursing health care services.  Recipients or their 
representatives must cooperatively assist the commissioner in 
obtaining this determination.  Recipients who are eligible for 
the community alternative care program may not receive more 
hours of nursing under this section than would otherwise be 
authorized under section 256B.49. 
    (4)  [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 
ventilator-dependent, the monthly medical assistance 
authorization for home care services shall not exceed what the 
commissioner would pay for care at the highest cost hospital 
designated as a long-term hospital under the Medicare program.  
For purposes of this clause, home care services means all 
services provided in the home that would be included in the 
payment for care at the long-term hospital.  
"Ventilator-dependent" means an individual who receives 
mechanical ventilation for life support at least six hours per 
day and is expected to be or has been dependent for at least 30 
consecutive days.  
     (g)  [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 
or the commissioner's designee shall determine the time period 
for which a prior authorization shall remain valid.  If the 
recipient continues to require home care services beyond the 
duration of the prior authorization, the home care provider must 
request a new prior authorization through the process described 
above.  Under no circumstances shall a prior authorization be 
valid for more than 12 months.  
     (h)  [APPROVAL OF HOME CARE SERVICES.] The commissioner or 
the commissioner's designee shall determine the medical 
necessity of home care services, the level of caregiver 
according to subdivision 2, and the institutional comparison 
according to this subdivision, and the amount, scope, and 
duration of home care services reimbursable by medical 
assistance, based on the assessment, the care plan, the 
recipient's age, the recipient's medical condition, and 
diagnosis or disability.  The commissioner may publish 
additional criteria for determining medical necessity according 
to section 256B.04. 
     (i)  [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 
The department has 30 days from receipt of the request to 
complete the prior authorization, during which time it may 
approve a temporary level of home care service.  Authorization 
under this authority for a temporary level of home care services 
is limited to the time specified by the commissioner.  
     (j)  [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 
Home care services provided in an adult or child foster care 
setting must receive prior authorization by the department 
according to the limits established in paragraph (b). 
     The commissioner may not authorize: 
     (1) home care services that are the responsibility of the 
foster care provider under the terms of the foster care 
placement agreement and administrative rules; 
    (2) personal care services when the foster care license 
holder is also the personal care provider or personal care 
assistant unless the recipient can direct the recipient's own 
care, or the recipient is referred to the commissioner by a 
regional treatment center preadmission evaluation team; 
    (3) personal care services when the responsible party is an 
employee of, or under contract with, or has any direct or 
indirect financial relationship with the personal care provider 
or personal care assistant, unless the recipient is referred to 
the commissioner by a regional treatment center preadmission 
evaluation team; 
    (4) home care services when the number of foster care 
residents is greater than four; or 
    (5) home care services when combined with foster care 
payments, less the base rate, that exceed the total amount that 
public funds would pay for the recipient's care in a medical 
institution. 
    Sec. 51.  Minnesota Statutes 1990, section 256B.064, is 
amended by adding a subdivision to read: 
    Subd. 1d.  [INVESTIGATIVE COSTS.] The commissioner may seek 
recovery of investigative costs from any vendor of medical care 
or services who willfully submits a claim for reimbursement for 
services the vendor knows, or reasonably should have known, is a 
false representation and which results in the payment of public 
funds for which the vendor is ineligible.  Billing errors deemed 
to be unintentional, but which result in overcharges, shall not 
be considered for investigative cost recoupment. 
    Sec. 52.  Minnesota Statutes 1991 Supplement, section 
256B.064, subdivision 2, is amended to read: 
    Subd. 2.  The commissioner shall determine monetary amounts 
to be recovered and the sanction to be imposed upon a vendor of 
medical care for conduct described by subdivision 1a.  Except in 
the case of a conviction for conduct described in subdivision 
1a, neither a monetary recovery nor a sanction will be sought by 
the commissioner without prior notice and an opportunity for a 
hearing, pursuant to chapter 14, on the commissioner's proposed 
action, provided that the commissioner may suspend or reduce 
payment to a vendor of medical care, except a nursing home or 
convalescent care facility, prior to the hearing if in the 
commissioner's opinion that action is necessary to protect the 
public welfare and the interests of the program.  
    Upon receipt of a notice that a monetary recovery or 
sanction is to be imposed, a vendor may request a contested 
case, as defined in section 14.02, subdivision 3, by filing with 
the commissioner a written request of appeal.  The appeal 
request must be received by the commissioner no later than 30 
days after the date the notification of monetary recovery or 
sanction was mailed to the vendor.  The appeal request must 
specify: 
    (1) each disputed item, the reason for the dispute, and an 
estimate of the dollar amount involved for each disputed item; 
    (2) the computation that the vendor believes is correct; 
    (3) the authority in statute or rule upon which the vendor 
relies for each disputed item; 
    (4) the name and address of the person or entity with whom 
contacts may be made regarding the appeal; and 
    (5) other information required by the commissioner. 
    Sec. 53.  Minnesota Statutes 1991 Supplement, section 
256B.0911, subdivision 3, is amended to read: 
    Subd. 3.  [PERSONS RESPONSIBLE FOR CONDUCTING THE 
PREADMISSION SCREENING.] (a) A local screening team shall be 
established by the county agency and the county public health 
nursing service of the local board of health.  Each local 
screening team shall be composed of a social worker and a public 
health nurse from their respective county agencies.  If a county 
does not have a public health nurse available, it may request 
approval from the commissioner to assign a county registered 
nurse with at least one year experience in home care to 
participate on the team.  Two or more counties may collaborate 
to establish a joint local screening team or teams. 
    (b) Both members of the team must conduct the screening.  
However, individuals who are being transferred from an acute 
care facility to a certified nursing facility and individuals 
who are admitted to a certified nursing facility on an emergency 
basis may be screened by only one member of the screening team 
in consultation with the other member. 
    (c) In assessing a person's needs, each screening team 
shall have a physician available for consultation and shall 
consider the assessment of the individual's attending physician, 
if any.  The individual's physician shall be included on the 
screening team if the physician chooses to participate.  Other 
personnel may be included on the team as deemed appropriate by 
the county agencies.  
    (d) If a person who has been screened must be reassessed to 
assign a case mix classification because admission to a nursing 
facility occurs later than the time allowed by rule following 
the initial screening and assessment, the reassessment may be 
completed by the public health nurse member of the screening 
team. 
    Sec. 54.  Minnesota Statutes 1991 Supplement, section 
256B.0911, is amended by adding a subdivision to read: 
    Subd. 9.  [CASE MIX ASSESSMENTS.] The nursing facility is 
authorized to conduct all case mix assessments for persons who 
have been admitted to the facility prior to a preadmission 
screening.  The county shall conduct the case mix assessment for 
all persons screened within ten working days prior to 
admission.  The county retains the responsibility of 
distributing appropriate case mix forms to the nursing facility. 
    Sec. 55.  Minnesota Statutes 1991 Supplement, section 
256B.0911, subdivision 8, is amended to read: 
    Subd. 8.  [ADVISORY COMMITTEE.] The commissioner shall 
appoint an advisory committee to advise the commissioner on the 
preadmission screening program, the alternative care program 
under section 256B.0913, and the home- and community-based 
services waiver programs for the elderly and the disabled.  The 
advisory committee shall review policies and procedures and 
provide advice and technical assistance to the commissioner 
regarding the effectiveness and the efficient administration of 
the programs.  The advisory committee must consist of not more 
than 20 22 people appointed by the commissioner and must be 
comprised of representatives from public agencies, public and 
private service providers, two representatives of nursing home 
associations, and consumers from all areas of the state.  
Members of the advisory committee must not be compensated for 
service. 
    Sec. 56.  Minnesota Statutes 1991 Supplement, section 
256B.0913, subdivision 4, is amended to read: 
     Subd. 4.  [ELIGIBILITY FOR FUNDING FOR SERVICES FOR 
NONMEDICAL ASSISTANCE RECIPIENTS.] (a) Funding for services 
under the alternative care program is available to persons who 
meet the following criteria: 
     (1) the person has been screened by the county screening 
team or, if previously screened and served under the alternative 
care program, assessed by the local county social worker or 
public health nurse; 
     (2) the person is age 65 or older; 
     (3) the person would be eligible for medical assistance 
within 180 days of admission to a nursing facility; 
     (4) the screening team would recommend nursing facility 
admission or continued stay for the person if alternative care 
services were not available; 
     (5) the person needs services that are not available at 
that time in the county through other county, state, or federal 
funding sources; and 
     (6) the monthly cost of the alternative care services 
funded by the program for this person does not exceed 75 percent 
of the statewide average monthly medical assistance payment for 
nursing facility care at the individual's case mix 
classification to which the individual would be assigned under 
Minnesota Rules, parts 9549.0050 to 9549.0059. 
     (b) Individuals who meet the criteria in paragraph (a) and 
who have been approved for alternative care funding are called 
180-day eligible clients. 
    (c) The statewide average payment for nursing facility care 
is the statewide average monthly nursing facility rate in effect 
on July 1 of the fiscal year in which the cost is incurred, less 
the statewide average monthly income of nursing facility 
residents who are age 65 or older and who are medical assistance 
recipients in the month of March of the previous fiscal year.  
This monthly limit does not prohibit the 180-day eligible client 
from paying for additional services needed or desired.  
    (d) In determining the total costs of alternative care 
services for one month, the costs of all services funded by the 
alternative care program, including supplies and equipment, must 
be included. 
    (e) Alternative care funding under this subdivision is not 
available for a person who is a medical assistance recipient or 
who would be eligible for medical assistance without a 
spend-down if the person applied, unless authorized by the 
commissioner.  The commissioner may authorize alternative care 
money to be used to meet a portion of a medical assistance 
income spend-down for persons residing in adult foster care who 
would otherwise be served under the alternative care program.  
The alternative care payment is limited to the difference 
between the recipient's negotiated foster care room and board 
rate and the medical assistance income standard for one elderly 
person plus the medical assistance personal needs allowance for 
a person residing in a long-term care facility.  A person whose 
application for medical assistance is being processed may be 
served under the alternative care program for a period up to 60 
days.  If the individual is found to be eligible for medical 
assistance, the county must bill medical assistance retroactive 
to the date of eligibility for the services provided that are 
reimbursable under the elderly waiver program.  
    (f) Alternative care funding is not available for a person 
who resides in a licensed nursing home or boarding care home, 
except for case management services which are being provided in 
support of the discharge planning process.  
    Sec. 57.  Minnesota Statutes 1991 Supplement, section 
256B.0913, subdivision 5, is amended to read: 
    Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
Alternative care funding may be used for payment of costs of: 
    (1) adult foster care; 
    (2) adult day care; 
    (3) home health aide; 
    (4) homemaker services; 
    (5) personal care; 
    (6) case management; 
    (7) respite care; 
    (8) assisted living; and 
    (9) care-related supplies and equipment. 
    (b) The county agency may use up to ten percent of the 
annual allocation of alternative care funding for payment of 
costs of meals delivered to the home, transportation, skilled 
nursing, chore services, companion services, nutrition services, 
and training for direct informal caregivers.  The commissioner 
shall determine the impact on alternative care costs of allowing 
these additional services to be provided and shall report the 
findings to the legislature by February 15, 1993, including any 
recommendations regarding provision of the additional services. 
    (c) The county agency must ensure that the funds are used 
only to supplement and not supplant services available through 
other public assistance or services programs. 
    (d) These services must be provided by a licensed provider, 
a home health agency certified for reimbursement under Titles 
XVIII and XIX of the Social Security Act, or by persons or 
agencies employed by or contracted with the county agency or the 
public health nursing agency of the local board of health. 
    (e) The adult foster care rate shall be considered a 
difficulty of care payment and shall not include room and 
board.  The adult foster care daily rate shall be negotiated 
between the county agency and the foster care provider.  The 
rate established under this section shall not exceed 75 percent 
of the state average monthly nursing home payment for the case 
mix classification to which the individual receiving foster care 
is assigned, and it must allow for other alternative care 
services to be authorized by the case manager. 
    (f) Personal care services may be provided by a personal 
care provider organization.  A county agency may contract with a 
relative of the client to provide personal care services, but 
must ensure nursing supervision.  Covered personal care services 
defined in section 256B.0627, subdivision 4, must meet 
applicable standards in Minnesota Rules, part 9505.0335. 
    (g) Costs for supplies and equipment that exceed $150 per 
item per month must have prior approval from the 
commissioner.  A county may use alternative care funds to 
purchase supplies and equipment from a non-Medicaid certified 
vendor if the cost for the items is less than that of a Medicaid 
vendor. 
    (h) For the purposes of this section, "assisted living" 
refers to supportive services provided by a single vendor to two 
or more alternative care grant clients who reside in the same 
apartment building of ten or more units.  These services may 
include care coordination, the costs of preparing one or more 
nutritionally balanced meals per day, general oversight, and 
other supportive services which the vendor is licensed to 
provide according to sections 144A.43 to 144A.49, and which 
would otherwise be available to individual alternative care 
grant clients.  Reimbursement from the lead agency shall be made 
to the vendor as a monthly capitated rate negotiated with the 
county agency.  The capitated rate shall not exceed the state 
share of the greater of either the statewide or any of the 
geographic groups' weighted average monthly medical assistance 
nursing facility payment rate of the case mix resident class to 
which the 180-day eligible client would be assigned under 
Minnesota Rules, parts 9549.0050 to 9549.0059.  The capitated 
rate may not cover rent and direct food costs.  A person's 
eligibility to reside in the building must not be contingent on 
the person's acceptance or use of the assisted living services.  
Assisted living services as defined in this section shall not be 
authorized in boarding and lodging establishments licensed 
according to sections 157.01 to 157.031. 
     (i) For purposes of this section, companion services are 
defined as nonmedical care, supervision and oversight, provided 
to a functionally impaired adult.  Companions may assist the 
individual with such tasks as meal preparation, laundry and 
shopping, but do not perform these activities as discrete 
services.  The provision of companion services does not entail 
hands-on medical care.  Providers may also perform light 
housekeeping tasks which are incidental to the care and 
supervision of the recipient.  This service must be approved by 
the case manager as part of the care plan.  Companion services 
must be provided by individuals or nonprofit organizations who 
are under contract with the local agency to provide the 
service.  Any person related to the waiver recipient by blood, 
marriage or adoption cannot be reimbursed under this service.  
Persons providing companion services will be monitored by the 
case manager. 
     (j) For purposes of this section, training for direct 
informal caregivers is defined as a classroom or home course of 
instruction which may include:  transfer and lifting skills, 
nutrition, personal and physical cares, home safety in a home 
environment, stress reduction and management, behavioral 
management, long-term care decision making, care coordination 
and family dynamics.  The training is provided to an informal 
unpaid caregiver of a 180-day eligible client which enables the 
caregiver to deliver care in a home setting with high levels of 
quality.  The training must be approved by the case manager as 
part of the individual care plan.  Individuals, agencies, and 
educational facilities which provide caregiver training and 
education will be monitored by the case manager. 
    Sec. 58.  Minnesota Statutes 1991 Supplement, section 
256B.0913, subdivision 8, is amended to read: 
    Subd. 8.  [REQUIREMENTS FOR INDIVIDUAL CARE PLAN.] The case 
manager shall implement the plan of care for each 180-day 
eligible client and ensure that a client's service needs and 
eligibility are reassessed at least every six months.  The plan 
shall include any services prescribed by the individual's 
attending physician as necessary to allow the individual to 
remain in a community setting.  In developing the individual's 
care plan, the case manager should include the use of volunteers 
from families and neighbors, religious organizations, social 
clubs, and civic and service organizations to support the formal 
home care services.  The county shall be held harmless for 
damages or injuries sustained through the use of volunteers 
under this subdivision including workers' compensation 
liability.  The lead agency shall provide documentation to the 
commissioner verifying that the individual's alternative care is 
not available at that time through any other public assistance 
or service program.  The lead agency shall provide documentation 
in each individual's plan of care and to the commissioner that 
the most cost-effective alternatives available have been offered 
to the individual and that the individual was free to choose 
among available qualified providers, both public and private. 
The case manager must give the individual a ten-day written 
notice of any decrease in or termination of alternative care 
services. 
    Sec. 59.  Minnesota Statutes 1991 Supplement, section 
256B.0913, subdivision 11, is amended to read: 
    Subd. 11.  [TARGETED FUNDING.] (a) The purpose of targeted 
funding is to make additional money available to counties with 
the greatest need.  Targeted funds are not intended to be 
distributed equitably among all counties, but rather, allocated 
to those with long-term care strategies that meet state goals. 
    (b) The funds available for targeted funding shall be the 
total appropriation for each fiscal year minus county 
allocations determined under subdivision 10 as adjusted for any 
inflation increases provided in appropriations for the biennium. 
    (c) The commissioner shall allocate targeted funds to 
counties that demonstrate to the satisfaction of the 
commissioner that they have developed feasible plans to increase 
alternative care grant spending.  In making targeted funding 
allocations, the commissioner shall use the following priorities:
    (1) counties that received a lower allocation in fiscal 
year 1991 than in fiscal year 1990.  Counties remain in this 
priority until they have been restored to their fiscal year 1990 
level plus inflation; 
    (2) counties that sustain a base allocation reduction for 
failure to spend 95 percent of the allocation if they 
demonstrate that the base reduction should be restored; 
    (3) counties that propose projects to divert community 
residents from nursing home placement or convert nursing home 
residents to community living; and 
     (4) counties that can otherwise justify program growth by 
demonstrating the existence of waiting lists, demographically 
justified needs, or other unmet needs. 
     (d) Counties that would receive targeted funds according to 
paragraph (c) must demonstrate to the commissioner's 
satisfaction that the funds would be appropriately spent by 
showing how the funds would be used to further the state's 
alternative care goals as described in subdivision 1, and that 
the county has the administrative and service delivery 
capability to use them.  
     (e) The commissioner shall request applications by June 1 
each year, for county agencies to apply for targeted funds.  The 
counties selected for targeted funds shall be notified of the 
amount of their additional funding by August 1 of each year.  
Targeted funds allocated to a county agency in one year shall be 
treated as part of the county's base allocation for that year in 
determining allocations for subsequent years.  No reallocations 
between counties shall be made. 
    (f) The allocation for each year after fiscal year 1992 
shall be determined using the previous fiscal year's allocation, 
including any targeted funds, as the base and then applying the 
criteria under subdivision 10, paragraphs (c), (d), and (f), to 
the current year's expenditures. 
    Sec. 60.  Minnesota Statutes 1991 Supplement, section 
256B.0913, subdivision 12, is amended to read: 
    Subd. 12.  [CLIENT PREMIUMS.] (a) A premium is required for 
all 180-day eligible clients to help pay for the cost of 
participating in the program.  The amount of the premium for the 
alternative care client shall be determined as follows: 
    (1) when the alternative care client's gross income is 
greater than the medical assistance income standard but less 
than 150 percent of the federal poverty guideline, and total 
assets are less than $6,000, the fee is zero; 
    (2) when the alternative care client's gross income is 
greater than 150 percent of the federal poverty guideline and 
total assets are less than $6,000, the fee is 25 percent of the 
cost of alternative care services or the difference between 150 
percent of the federal poverty guideline and the client's gross 
income, whichever is less; and 
    (3) when the alternative care client's total assets are 
greater than $6,000, the fee is 25 percent of the cost of 
alternative care services.  
     For married persons, total assets are defined as the total 
marital assets less the estimated community spouse asset 
allowance, under section 256B.059, if applicable. 
    All alternative care services except case management shall 
be included in the estimated costs for the purpose of 
determining 25 percent of the costs. 
    The monthly premium shall be calculated and be payable in 
the month in which the alternative care services begin and shall 
continue unaltered for six months until the semiannual 
reassessment unless the actual cost of services falls below the 
fee. 
    (b) The fee shall be waived by the commissioner when: 
    (1) a person who is residing in a nursing facility is 
receiving case management only; 
    (2) a person is applying for medical assistance; 
    (3) a married couple is requesting an asset assessment 
under the spousal impoverishment provisions; 
    (4) a person is a medical assistance recipient, but has 
been approved for alternative care-funded assisted living 
services; 
    (5) a person is found eligible for alternative care, but is 
not yet receiving alternative care services; 
    (6) a person is an adult foster care resident for whom 
alternative care funds are being used to meet a portion of the 
person's medical assistance spend-down, as authorized in 
subdivision 4; and 
    (7) a person's fee under paragraph (a) is less than $25. 
    (c) The county agency must collect the premium from the 
client and forward the amounts collected to the commissioner in 
the manner and at the times prescribed by the commissioner.  
Money collected must be deposited in the general fund and is 
appropriated to the commissioner for the alternative care 
program.  The client must supply the county with the client's 
social security number at the time of application.  If a client 
fails or refuses to pay the premium due, the county shall supply 
the commissioner with the client's social security number and 
other information the commissioner requires to collect the 
premium from the client.  The commissioner shall collect unpaid 
premiums using the revenue recapture act in chapter 270A and 
other methods available to the commissioner.  The commissioner 
may require counties to inform clients of the collection 
procedures that may be used by the state if a premium is not 
paid.  
    (c) The commissioner shall establish a premium schedule 
ranging from $25 to $75 per month based on the client's income 
and assets.  The schedule is not subject to chapter 14, but the 
commissioner shall publish the schedule and any later changes in 
the State Register and allow a period of 20 working days from 
the publication date for interested persons to comment before 
adopting the schedule in final form.  (d) The commissioner shall 
begin to adopt emergency or permanent rules governing client 
premiums within 30 days after July 1, 1991, including criteria 
for determining when services to a client must be terminated due 
to failure to pay a premium.  Emergency or permanent rules 
governing client premiums supersede any schedule adopted under 
the exemption from chapter 14 in this section. 
    Sec. 61.  Minnesota Statutes 1991 Supplement, section 
256B.0913, subdivision 14, is amended to read: 
    Subd. 14.  [REIMBURSEMENT AND RATE ADJUSTMENTS.] (a) 
Reimbursement for expenditures for the alternative care services 
shall be through the invoice processing procedures of the 
department's Medicaid management information system (MMIS), only 
with the approval of the client's case manager.  To receive 
reimbursement, the county or vendor must submit invoices within 
120 days following the month of service.  The county agency and 
its vendors under contract shall not be reimbursed for services 
which exceed the county allocation. 
    (b) If a county collects less than 50 percent of the client 
premiums due under subdivision 12, the commissioner may withhold 
up to three percent of the county's final alternative care 
program allocation determined under subdivisions 10 and 11. 
    (c) Beginning July 1, 1991, the state will reimburse 
counties, up to the limits of state appropriations, according to 
the payment schedule in section 256.025 for the county share of 
costs incurred under this subdivision on or after January 1, 
1991, for individuals who would be eligible for medical 
assistance within 180 days of admission to a nursing home. 
    (d) Annually on July 1, the commissioner must adjust the 
rates allowed for alternative care services by For fiscal years 
beginning on or after July 1, 1993, the commissioner of human 
services shall not provide automatic annual inflation 
adjustments for alternative care services.  The commissioner of 
finance shall include as a budget change request in each 
biennial detailed expenditure budget submitted to the 
legislature under section 16A.11 annual adjustments in 
reimbursement rates for alternative care services based on the 
forecasted percentage change in the Home Health Agency Market 
Basket of Operating Costs, for the fiscal year beginning July 1, 
compared to the previous fiscal year, unless otherwise adjusted 
by statute.  The Home Health Agency Market Basket of Operating 
Costs is published by Data Resources, Inc.  The forecast to be 
used is the one published for the calendar quarter beginning 
January 1, six months prior to the beginning of the fiscal year 
for which rates are set. 
    Sec. 62.  Minnesota Statutes 1991 Supplement, section 
256B.0915, subdivision 3, is amended to read: 
     Subd. 3.  [LIMITS OF CASES, RATES, REIMBURSEMENT, AND 
FORECASTING.] (a) The number of medical assistance waiver 
recipients that a county may serve must be allocated according 
to the number of medical assistance waiver cases open on July 1 
of each fiscal year.  Additional recipients may be served with 
the approval of the commissioner. 
     (b) The monthly limit for the cost of waivered services to 
an individual waiver client shall be the statewide average 
payment rate of the case mix resident class to which the waiver 
client would be assigned under medical assistance case mix 
reimbursement system.  The statewide average payment rate is 
calculated by determining the statewide average monthly nursing 
home rate effective July 1 of the fiscal year in which the cost 
is incurred, less the statewide average monthly income of 
nursing home residents who are age 65 or older, and who are 
medical assistance recipients in the month of March of the 
previous state fiscal year.  The following costs must be 
included in determining the total monthly costs for the waiver 
client: 
    (1) cost of all waivered services, including extended 
medical supplies and equipment; and 
    (2) cost of skilled nursing, home health aide, and personal 
care services reimbursable by medical assistance.  
    (c) Medical assistance funding for skilled nursing 
services, home health aide, and personal care services for 
waiver recipients must be approved by the case manager and 
included in the individual care plan. 
    (d) Expenditures for extended medical supplies and 
equipment that cost over $150 per month for both the elderly 
waiver and the disabled waiver must have the commissioner's 
prior approval. 
    (e) Annually on July 1, the commissioner must adjust the 
rates allowed for services by For the fiscal year beginning on 
July 1, 1993, and for subsequent fiscal years, the commissioner 
of human services shall not provide automatic annual inflation 
adjustments for home- and community-based waivered services.  
The commissioner of finance shall include as a budget change 
request in each biennial detailed expenditure budget submitted 
to the legislature under section 16A.11 annual adjustments in 
reimbursement rates for home- and community-based waivered 
services, based on the forecasted percentage change in the Home 
Health Agency Market Basket of Operating Costs, for the fiscal 
year beginning July 1, compared to the previous fiscal year, 
unless otherwise adjusted by statute.  The Home Health Agency 
Market Basket of Operating Costs is published by Data Resources, 
Inc.  The forecast to be used is the one published for the 
calendar quarter beginning January 1, six months prior to the 
beginning of the fiscal year for which rates are set.  The adult 
foster care rate shall be considered a difficulty of care 
payment and shall not include room and board. 
    The adult foster care daily rate for the elderly and 
disabled waivers shall be negotiated between the county agency 
and the foster care provider.  The rate established under this 
section shall not exceed the state average monthly nursing home 
payment for the case mix classification to which the individual 
receiving foster care is assigned, and it must allow for other 
waiver and medical assistance home care services to be 
authorized by the case manager. 
    (f) Reimbursement for the medical assistance recipients 
under the approved waiver shall be made from the medical 
assistance account through the invoice processing procedures of 
the department's Medicaid management information system (MMIS), 
only with the approval of the client's case manager.  The budget 
for the state share of the Medicaid expenditures shall be 
forecasted with the medical assistance budget, and shall be 
consistent with the approved waiver.  
    (g) Beginning July 1, 1991, the state shall reimburse 
counties according to the payment schedule in section 256.025 
for the county share of costs incurred under this subdivision on 
or after January 1, 1991, for individuals who are receiving 
medical assistance. 
    Sec. 63.  Minnesota Statutes 1991 Supplement, section 
256B.0915, is amended by adding a subdivision to read: 
    Subd. 4.  [TERMINATION NOTICE.] The case manager must give 
the individual a ten-day written notice of any decrease in or 
termination of waivered services. 
    Sec. 64.  Minnesota Statutes 1991 Supplement, section 
256B.0915, is amended by adding a subdivision to read: 
    Subd. 5.  [REASSESSMENTS FOR WAIVER CLIENTS.] A 
reassessment of a client served under the elderly or disabled 
waiver must be conducted at least every six months and at other 
times when the case manager determines that there has been 
significant change in the client's functioning.  This may 
include instances where the client is discharged from the 
hospital.  
    Sec. 65.  Minnesota Statutes 1991 Supplement, section 
256B.0917, subdivision 2, is amended to read: 
    Subd. 2.  [DESIGN OF SAIL PROJECTS; LOCAL LONG-TERM CARE 
COORDINATING TEAM.] (a) The commissioner of human services shall 
establish SAIL projects in four to six counties or groups of 
counties to demonstrate the feasibility and cost-effectiveness 
of a local long-term care strategy that is consistent with the 
state's long-term care goals identified in subdivision 1.  The 
commissioner shall publish a notice in the State Register 
announcing the availability of project funding and giving 
instructions for making an application.  The instructions for 
the application shall identify the amount of funding available 
for project components. 
    (b) To be selected for the project, a county board, or 
boards under a joint powers agreement, must establish a 
long-term care coordinating team consisting of county social 
service agencies, public health nursing service agencies, local 
boards of health, and the area agencies on aging in a geographic 
area which is responsible for: 
    (1) developing a local long-term care strategy consistent 
with state goals and objectives; 
    (2) submitting an application to be selected as a project; 
    (3) coordinating planning for funds to provide services to 
elderly persons, including funds received under Title III of the 
Older Americans Act, Community Social Services Act, Title XX of 
the Social Security Act and the Local Public Health Act; and 
    (4) ensuring efficient services provision and 
nonduplication of funding. 
    (c) The board, or boards under a joint powers agreement, 
shall designate a public agency to serve as the lead agency.  
The lead agency receives and manages the project funds from the 
state and is responsible for the implementation of the local 
strategy.  If selected as a project, the local long-term care 
coordinating team must semiannually evaluate the progress of the 
local long-term care strategy in meeting state measures of 
performance and results as established in the contract. 
    (d) Each member of the local coordinating team must 
indicate its endorsement of the local strategy.  The local 
long-term care coordinating team may include in its membership 
other units of government which provide funding for services to 
the frail elderly.  The team must cooperate with consumers and 
other public and private agencies, including nursing homes, in 
the geographic area in order to develop and offer a variety of 
cost-effective services to the elderly and their caregivers. 
    (e) The board, or boards under a joint powers agreement, 
shall apply to be selected as a project.  If the project is 
selected, the commissioner of human services shall contract with 
the lead agency for the project and shall provide additional 
administrative funds for implementing the provisions of the 
contract, within the appropriation available for this purpose. 
    (f) Projects shall be selected according to the following 
conditions: 
     (1) No project may be selected unless it demonstrates that: 
     (i) the objectives of the local project will help to 
achieve the state's long-term care goals as defined in 
subdivision 1; 
     (ii) in the case of a project submitted jointly by several 
counties, all of the participating counties are contiguous; 
     (iii) there is a designated local lead agency that is 
empowered to make contracts with the state and local vendors on 
behalf of all participants; 
     (iv) the project proposal demonstrates that the local 
cooperating agencies have the ability to perform the project as 
described and that the implementation of the project has a 
reasonable chance of achieving its objectives; 
     (v) the project will serve an area that covers at least 
four counties or contains at least 2,500 persons who are 85 
years of age or older, according to the projections of the state 
demographer or the census if the data is more recent; and 
     (vi) the local coordinating team documents efforts of 
cooperation with consumers and other agencies and organizations, 
both public and private, in planning for service delivery. 
     (2) If only two projects are selected, at least one of them 
must be from a metropolitan statistical area as determined by 
the United States Census Bureau; if three or four projects are 
selected, at least one but not more than two projects must be 
from a metropolitan statistical area; and if more than four 
projects are selected, at least two but not more than three 
projects must be from a metropolitan statistical area. 
     (3) Counties or groups of counties that submit a proposal 
for a project shall be assigned to types defined by 
institutional utilization rate and population growth rate in the 
following manner:  
     (i) Each county or group of counties shall be measured by 
the utilization rate of nursing homes and boarding care homes 
and by the projected growth rate of its population aged 85 and 
over between 1990 and 2000.  For the purposes of this section, 
"utilization rate" means the proportion of the seniors aged 65 
or older in the county or group of counties who reside in a 
licensed nursing home or boarding care home as determined by the 
most recent census of residents available from the department of 
health and the population estimates of the state demographer or 
the census, whichever is more recent.  The "projected growth 
rate" is the rate of change in the county or group of counties 
of the population group aged 85 or older between 1990 and 2000 
according to the projections of the state demographer. 
     (ii) The institutional utilization rate of a county or 
group of counties shall be converted to a category by assigning 
a "high utilization" category if the rate is above the median 
rate of all counties, and a "low utilization" category 
otherwise.  The projected growth rate of a county or group of 
counties shall be converted to a category by assigning a score 
of "high growth" category if the rate is above the median rate 
of all counties, and a "low growth" category otherwise.  
     (iii) Types of areas shall be defined by the four 
combinations of the scores defined in item (ii):  type 1 is low 
utilization - high growth, type 2 is high utilization - high 
growth, type 3 is high utilization - low growth, and type 4 is 
low utilization - low growth.  Each county or group of counties 
making a proposal shall be assigned to one of these types. 
     (4) Projects shall be selected from each of the types in 
the order that the types are listed in paragraph (3), item 
(iii), with available funding allocated to projects until it is 
exhausted, with no more than 30 percent of available funding 
allocated to any one project.  Available funding includes state 
administrative funds which have been appropriated for screening 
functions in subdivision 4, paragraph (b), clause (3), and for 
service developers and incentive grants in subdivision 5.  
     (5) If more than one county or group of counties within one 
of the types defined by paragraph (3) proposes a special project 
that meets all of the other conditions in paragraphs (1) and 
(2), the project that demonstrates the most cost-effective 
proposals in terms of the number of nursing home placements that 
can be expected to be diverted or converted to alternative care 
services per unit of cost shall be selected.  
     (6) If more than one county applies for a specific project 
under this subdivision, all participating county boards must 
indicate intent to work cooperatively through individual board 
resolutions or a joint powers agreement. 
    Sec. 66.  Minnesota Statutes 1991 Supplement, section 
256B.0917, subdivision 3, is amended to read: 
    Subd. 3.  [LOCAL LONG-TERM CARE STRATEGY.] The local 
long-term care strategy must list performance outcomes and 
indicators which meet the state's objectives.  The local 
strategy must provide for: 
    (1) accessible information, assessment, and preadmission 
screening activities as described in subdivision 4; 
    (2) an application for expansion of alternative care 
targeted funds under section 256B.0913, for serving 180-day 
eligible clients, including those who are relocated from nursing 
homes; and 
    (3) the development of additional services such as adult 
family foster care homes; family adult day care; assisted living 
projects and congregate housing service projects in apartment 
buildings; expanded home care services for evenings and 
weekends; expanded volunteer services; and caregiver support and 
respite care projects; and 
    (4) development and implementation of strategies for 
advocating, promoting, and developing long-term care insurance 
and encouraging insurance companies to offer long-term care 
insurance policies that are affordable and offer a wide range of 
benefits. 
    The county or groups of counties selected for the projects 
shall be required to comply with federal regulations, 
alternative care funding policies in section 256B.0913, and the 
federal waiver programs' policies in section 256B.0915.  The 
requirements for preadmission screening as defined in section 
256B.0911, subdivisions 1 to 6, are waived for those counties 
selected as part of a long-term care strategy project.  For 
persons who are eligible for medical assistance or who are 
180-day eligible clients and who are screened after nursing 
facility admission, the nursing facility must include a screener 
in the discharge planning process for those individuals who the 
screener has determined have discharge potential.  The agency 
responsible for the screening function in subdivision 4 must 
ensure a smooth transition and follow-up for the individual's 
return to the community.  Requirements for an access, screening, 
and assessment function replace the preadmission screening 
requirements and are defined in subdivision 4.  Requirements for 
the service development and service provision are defined in 
subdivision 5. 
    Sec. 67.  Minnesota Statutes 1991 Supplement, section 
256B.0917, subdivision 4, is amended to read: 
     Subd. 4.  [ACCESSIBLE INFORMATION, SCREENING, AND 
ASSESSMENT FUNCTION.] (a) The projects selected by and under 
contract with the commissioner shall establish an accessible 
information, screening, and assessment function for persons who 
need assistance and information regarding long-term care.  This 
accessible information, screening, and assessment activity shall 
include information and referral, early intervention, follow-up 
contacts, telephone triage as defined in paragraph (f), home 
visits, assessments, preadmission screening, and relocation case 
management for the frail elderly and their caregivers in the 
area served by the county or counties.  The purpose is to ensure 
that information and help is provided to elderly persons and 
their families in a timely fashion, when they are making 
decisions about long-term care.  These functions may be split 
among various agencies, but must be coordinated by the local 
long-term care coordinating team. 
     (b) Accessible information, screening, and assessment 
functions shall be reimbursed as follows: 
     (1) The screenings of all persons entering nursing homes 
shall be reimbursed by the nursing homes in the counties of the 
project, through the same policy that is in place in fiscal year 
1992 as established in section 256B.0911.  The amount a nursing 
home pays to the county agency is that amount identified and 
approved in the February 15, 1991, estimated number of 
screenings and associated expenditures.  This amount remains the 
same for fiscal year 1993; 
     (2) The level I screenings and the level II assessments 
required by Public Law Numbers 100-203 and 101-508 (OBRA) for 
persons with mental illness, mental retardation, or related 
conditions, are reimbursed through administrative funds with 75 
percent federal funds and 25 percent state funds, as allowed by 
federal regulations and established in the contract; and 
     (3) Additional state administrative funds shall be 
available for the access, screening, and assessment activities 
that are not reimbursed under clauses (1) and (2).  This amount 
shall not exceed the amount authorized in the guidelines and in 
instructions for the application and must be within the amount 
appropriated for this activity. 
    (c) The amounts available under paragraph (b) are available 
to the county or counties involved in the project to cover staff 
salaries and expenses to provide the services in this 
subdivision.  The lead agency shall employ, or contract with 
other agencies to employ, within the limits of available 
funding, sufficient personnel to provide the services listed in 
this subdivision.  
    (d) Any information and referral functions funded by other 
sources, such as Title III of the Older Americans Act and Title 
XX of the Social Security Act and the Community Social Services 
Act, shall be considered by the local long-term care 
coordinating team in establishing this function to avoid 
duplication and to ensure access to information for persons 
needing help and information regarding long-term care. 
    (e) The staffing for the screening and assessment function 
must include, but is not limited to, a county social worker and 
a county public health nurse.  The social worker and public 
health nurse are responsible for all assessments that are 
required to be completed by a professional.  However, only one 
of these professionals is required to be present for the 
assessment.  If a county does not have a public health nurse 
available, it may request approval from the commissioner to 
assign a county registered nurse with at least one year of 
experience in home care to conduct the assessment. 
    (f) All persons entering a Medicaid certified nursing home 
or boarding care home must be screened through an assessment 
process, although the decision to conduct a face-to-face 
interview is left with the county social worker and the county 
public health nurse.  All applicants to nursing homes must be 
screened and approved for admission by the county social worker 
or the county public health nurse named by the lead agency or 
the agencies which are under contract with the lead agency to 
manage the access, screening, and assessment functions.  For 
applicants who have a diagnosis of mental illness, mental 
retardation, or a related condition, and are subject to the 
provisions of Public Law Numbers 100-203 and 101-508, their 
admission must be approved by the local mental health authority 
or the local developmental disabilities case manager. 
      The commissioner shall develop instructions and assessment 
forms for telephone triage and on-site screenings to ensure that 
federal regulations and waiver provisions are met. 
      For purposes of this section, the term "telephone triage" 
refers to a telephone or face-to-face consultation between 
health care and social service professionals during which the 
clients' circumstances are reviewed and the county agency 
professional sorts the individual into categories:  (1) needs no 
screening, (2) needs an immediate screening, or (3) needs a 
screening after admission to a nursing home or after a return 
home.  The county agency professional shall authorize admission 
to a nursing home according to the provisions in section 
256B.0911, subdivision 7. 
     (g) The requirements for case mix assessments by a 
preadmission screening team may be waived and the nursing home 
shall complete the case mix assessments which are not conducted 
by the county public health nurse according to the procedures 
established under Minnesota Rules, part 9549.0059.  The 
appropriate county or the lead agency is responsible for 
distributing the quality assurance and review form for all new 
applicants to nursing homes. 
     (h) The lead agency or the agencies under contract with the 
lead agency which are responsible for the accessible 
information, screening, and assessment function must complete 
the forms and reports required by the commissioner as specified 
in the contract. 
    Sec. 68.  Minnesota Statutes 1991 Supplement, section 
256B.0917, subdivision 5, is amended to read: 
     Subd. 5.  [SERVICE DEVELOPMENT AND SERVICE DELIVERY.] (a) 
In addition to the access, screening, and assessment activity, 
each local strategy may include provisions for the following: 
     (1) expansion of alternative care to serve an increased 
caseload, over the fiscal year 1991 average caseload, of at 
least 100 persons each year who are assessed prior to nursing 
home admission and persons who are relocated from nursing homes, 
which results in a reduction of the medical assistance nursing 
home caseload; 
     (2) the addition of a full-time staff person who is 
responsible to develop the following services and recruit 
providers as established in the contract: 
     (i) additional adult family foster care homes; 
     (ii) family adult day care providers as defined in section 
256B.0919, subdivision 2; 
     (iii) an assisted living program in an apartment; 
     (iv) a congregate housing service project in a subsidized 
housing project; and 
     (v) the expansion of evening and weekend coverage of home 
care services as deemed necessary by the local strategic plan; 
     (3) small incentive grants to new adult family care 
providers for renovations needed to meet licensure requirements; 
     (4) a plan to apply for a congregate housing service 
project as identified in section 256.9751, authorized by the 
Minnesota board on aging, to the extent that funds are 
available; 
    (5) a plan to divert new applicants to nursing homes and to 
relocate a targeted population from nursing homes, using the 
individual's own resources or the funding available for 
services; 
    (6) one or more caregiver support and respite care 
projects, as described in subdivision 6; and 
    (7) one or more living-at-home/block nurse projects, as 
described in subdivisions 7 to 10. 
    (b) The expansion of alternative care clients under 
paragraph (a) shall be accomplished with the funds provided 
under section 256B.0913, and includes the allocation of targeted 
funds.  The funding for all participating counties must be 
coordinated by the local long-term care coordinating team and 
must be part of the local long-term care strategy.  Targeted 
alternative care funds received through the SAIL project 
approval process may be transferred from one SAIL county to 
another within a designated SAIL project area during a fiscal 
year as authorized by the local long-term care coordinating team 
and approved by the commissioner.  The base allocation used for 
a future year shall reflect the final transfer.  Each county 
retains responsibility for reimbursement as defined in section 
256B.0913, subdivision 12.  All other requirements for the 
alternative care program must be met unless an exception is 
provided in this section.  The commissioner may establish by 
contract a reimbursement mechanism for alternative care that 
does not require invoice processing through the medical 
assistance management information system (MMIS).  The 
commissioner and local agencies must assure that the same client 
and reimbursement data is obtained as is available under MMIS.  
    (c) The administration of these components is the 
responsibility of the agencies selected by the local 
coordinating team and under contract with the local lead 
agency.  However, administrative funds for paragraph (a), 
clauses (2) to (5), and grant funds for paragraph (a), clauses 
(6) and (7), shall be granted to the local lead agency.  The 
funding available for each component is based on the plan 
submitted and the amount negotiated in the contract. 
    Sec. 69.  Minnesota Statutes 1991 Supplement, section 
256B.0917, subdivision 6, is amended to read: 
    Subd. 6.  [STATEWIDE CAREGIVER SUPPORT AND RESPITE CARE 
RESOURCE CENTER; CAREGIVER SUPPORT AND RESPITE CARE PROJECTS.] 
(a) The commissioner shall establish and maintain a statewide 
resource center for caregiver support and respite care.  The 
resource center shall: 
    (1) provide information, technical assistance, and training 
statewide to county agencies and organizations on direct service 
models of caregiver support and respite care services; 
    (2) identify and address issues, concerns, and gaps in the 
statewide network for caregiver support and respite care; 
    (3) maintain a statewide caregiver support and respite care 
directory; 
    (4) educate caregivers on the availability and use of 
caregiver and respite care services; 
    (5) promote and expand caregiver training and support 
groups using existing networks when possible; and 
    (6) apply for and manage grants related to caregiver 
support and respite care. 
    (b) The commissioner shall establish up to 36 projects to 
expand the respite care network in the state and to support 
caregivers in their responsibilities for care.  The purpose of 
each project shall be to: 
    (1) establish a local coordinated network of volunteer and 
paid respite workers; 
    (2) coordinate assignment of respite workers to clients and 
care receivers and assure the health and safety of the client; 
and 
    (3) provide training for caregivers and ensure that support 
groups are available in the community. 
    (c) (b) The caregiver support and respite care funds shall 
be available to the four to six local long-term care strategy 
projects designated in subdivisions 1 to 5. 
    (d) (c) The commissioner shall publish a notice in the 
State Register to solicit proposals from public or private 
nonprofit agencies for the projects not included in the four to 
six local long-term care strategy projects defined in 
subdivision 2.  A county agency may, alone or in combination 
with other county agencies, apply for caregiver support and 
respite care project funds.  A public or nonprofit agency within 
a designated SAIL project area may apply for project funds if 
the agency has a letter of agreement with the county or counties 
in which services will be developed, stating the intention of 
the county or counties to coordinate their activities with the 
agency requesting a grant.  
    (e) (d) The commissioner shall select grantees based on the 
following criteria: 
    (1) the ability of the proposal to demonstrate need in the 
area served, as evidenced by a community needs assessment or 
other demographic data; 
    (2) the ability of the proposal to clearly describe how the 
project will achieve the purpose defined in paragraph (b); 
    (3) the ability of the proposal to reach underserved 
populations; 
    (4) the ability of the proposal to demonstrate community 
commitment to the project, as evidenced by letters of support 
and cooperation as well as formation of a community task force; 
    (5) the ability of the proposal to clearly describe the 
process for recruiting, training, and retraining volunteers; and 
    (6) the inclusion in the proposal of the plan to promote 
the project in the community, including outreach to persons 
needing the services. 
    (f) (e) Funds for all projects under this subdivision may 
be used to: 
    (1) hire a coordinator to develop a coordinated network of 
volunteer and paid respite care services and assign workers to 
clients; 
    (2) recruit and train volunteer providers; 
    (3) train caregivers; 
    (4) ensure the development of support groups for 
caregivers; 
    (5) advertise the availability of the caregiver support and 
respite care project; and 
    (6) purchase equipment to maintain a system of assigning 
workers to clients. 
    (g) (f) Project funds may not be used to supplant existing 
funding sources. 
    (h) An advisory committee shall be appointed to advise the 
caregiver support project on the development and implementation 
of the caregiver support and respite care services projects.  
The advisory committee shall review procedures and provide 
advice and technical assistance to the caregiver support project 
regarding the grant program established under this section. 
    The advisory committee shall consist of not more than 16 
people appointed by the commissioner and shall be comprised of 
representatives from public and private agencies, service 
providers and consumers from all areas of the state.  
    Members of the advisory committee shall not be compensated 
for service. 
    Sec. 70.  Minnesota Statutes 1991 Supplement, section 
256B.0917, subdivision 7, is amended to read: 
    Subd. 7.  [CONTRACT.] The commissioner of human services 
shall execute a contract with an organization experienced in 
establishing and operating community-based programs that have 
used the principles listed in subdivision 8, paragraph (b), in 
order to meet the independent living and health needs of senior 
citizens aged 65 and over and provide community-based long-term 
care for senior citizens in their homes.  The 
organization awarded the contract shall: 
    (1) assist the commissioner in developing criteria for and 
in awarding grants to establish community-based organizations 
that will implement living-at-home/block nurse programs 
throughout the state; 
    (2) assist the commissioner in awarding grants to enable 
current living-at-home/block nurse programs to implement the 
combined living-at-home/block nurse program model; 
    (3) serve as a state technical assistance center to assist 
and coordinate the living-at-home/block nurse programs 
established; and 
    (4) develop the implementation plan required by subdivision 
10. 
    Sec. 71.  Minnesota Statutes 1991 Supplement, section 
256B.0917, subdivision 8, is amended to read: 
    Subd. 8.  [LIVING-AT-HOME/BLOCK NURSE PROGRAM GRANT.] (a) 
The commissioner, in cooperation with the organization awarded 
the contract under subdivision 7, shall develop and administer a 
grant program to establish seven to ten or expand up to 15 
community-based organizations that will implement 
living-at-home/block nurse programs that are designed to enable 
senior citizens to live as independently as possible in their 
homes and in their communities.  Up to At least seven of the 
programs must be in counties outside the seven-county 
metropolitan area.  The living-at-home/block nurse program funds 
shall be available to the four to six SAIL projects established 
under this section. Nonprofit organizations and units of local 
government are eligible to apply for grants to establish the 
community organizations that will implement living-at-home/block 
nurse programs.  In awarding grants, the commissioner shall give 
preference to nonprofit organizations and units of local 
government from communities that: 
    (1) have high nursing home occupancy rates; 
    (2) have a shortage of health care professionals; and 
    (3) meet other criteria established by the commissioner, in 
consultation with the organization under contract. 
    (b) Grant applicants must also meet the following criteria: 
    (1) the local community demonstrates a readiness to 
establish a community model of care, including the formation of 
a board of directors, advisory committee, or similar group, of 
which at least two-thirds is comprised of community citizens 
interested in community-based care for older persons; 
     (2) the program has sponsorship by a credible, 
representative organization within the community; 
     (3) the program has defined specific geographic boundaries 
and defined its organization, staffing and coordination/delivery 
of services; 
     (4) the program demonstrates a team approach to 
coordination and care, ensuring that the older adult 
participants, their families, the formal and informal providers 
are all part of the effort to plan and provide services; and 
     (5) the program provides assurances that all community 
resources and funding will be coordinated and that other funding 
sources will be maximized, including a person's own resources. 
     (c) Grant applicants must provide a minimum of five percent 
of total estimated development costs from local community 
funding.  Grants shall be awarded for two-year periods, and the 
base amount shall not exceed $40,000 per applicant for the grant 
period.  The commissioner, in consultation with the organization 
under contract, may increase the grant amount for applicants 
from communities that have socioeconomic characteristics that 
indicate a higher level of need for development assistance. 
     (d) Each living-at-home/block nurse program shall be 
designed by representatives of the communities being served to 
ensure that the program addresses the specific needs of the 
community residents.  The programs must be designed to: 
     (1) incorporate the basic community, organizational, and 
service delivery principles of the living-at-home/block nurse 
program model; 
     (2) provide senior citizens with registered nurse directed 
assessment, provision and coordination of health and personal 
care services on a sliding fee basis as an alternative to 
expensive nursing home care; 
     (3) provide information, support services, homemaking 
services, counseling, and training for the client and family 
caregivers; 
     (4) encourage the development and use of respite care, 
caregiver support, and in-home support programs, such as adult 
foster care and in-home adult day care; 
     (5) encourage neighborhood residents and local 
organizations to collaborate in meeting the needs of senior 
citizens in their communities; 
    (6) recruit, train, and direct the use of volunteers to 
provide informal services and other appropriate support to 
senior citizens and their caregivers; and 
    (7) provide coordination and management of formal and 
informal services to senior citizens and their families using 
less expensive alternatives. 
    Sec. 72.  Minnesota Statutes 1991 Supplement, section 
256B.0917, subdivision 11, is amended to read: 
    Subd. 11.  [SAIL EVALUATION AND EXPANSION.] The 
commissioner shall evaluate the success of the SAIL projects 
against the objective stated in subdivision 1, paragraph (b), 
and recommend to the legislature the continuation or expansion 
of the long-term care strategy by February 15, 1993. 
    Sec. 73.  Minnesota Statutes 1991 Supplement, section 
256B.0919, subdivision 1, is amended to read: 
    Subdivision 1.  [ADULT FOSTER CARE LICENSURE CAPACITY.] 
Notwithstanding contrary provisions of the human services 
licensing act and rules adopted under it, an adult foster care 
license holder may care for five adults age 60 years or older 
who do not have serious and persistent mental illness or a 
developmental disability.  The license holder under this section 
shall not be a corporate business which operates more than two 
facilities. 
    Sec. 74.  Minnesota Statutes 1991 Supplement, section 
256B.092, subdivision 4, is amended to read: 
    Subd. 4.  [HOME- AND COMMUNITY-BASED SERVICES FOR PERSONS 
WITH MENTAL RETARDATION OR RELATED CONDITIONS.] The commissioner 
shall make payments to approved vendors participating in the 
medical assistance program to pay costs of providing home- and 
community-based services, including case management service 
activities provided as an approved home- and community-based 
service, to medical assistance eligible persons with mental 
retardation or related conditions who have been screened under 
subdivision 7 and according to federal requirements.  Federal 
requirements include those services and limitations included in 
the federally approved application for home- and community-based 
services for persons with mental retardation or related 
conditions and subsequent amendments.  Payments for home- and 
community-based services shall not exceed amounts authorized by 
the county of financial responsibility.  For specifically 
identified former residents of regional treatment centers and 
nursing facilities, the commissioner shall be responsible for 
authorizing payments and payment limits under the appropriate 
home- and community-based service program.  Payment is available 
under this subdivision only for persons who, if not provided 
these services, would require the level of care provided in an 
intermediate care facility for persons with mental retardation 
or related conditions.  
    Sec. 75.  [256B.0928] [STATEWIDE CAREGIVER SUPPORT AND 
RESPITE CARE PROJECT.] 
    (a) The commissioner shall establish and maintain a 
statewide caregiver support and respite care project.  The 
project shall: 
    (1) provide information, technical assistance, and training 
statewide to county agencies and organizations on direct service 
models of caregiver support and respite care services; 
    (2) identify and address issues, concerns, and gaps in the 
statewide network for caregiver support and respite care; 
    (3) maintain a statewide caregiver support and respite care 
resource center; 
    (4) educate caregivers on the availability and use of 
caregiver and respite care services; 
    (5) promote and expand caregiver training and support 
groups using existing networks when possible; and 
    (6) apply for and manage grants related to caregiver 
support and respite care. 
    (b) An advisory committee shall be appointed to advise the 
caregiver support project on all aspects of the project 
including the development and implementation of the caregiver 
support and respite care services projects.  The advisory 
committee shall review procedures and provide advice and 
technical assistance to the caregiver support project regarding 
the grant program established under section 256B.0917 and others 
established for caregivers. 
    The advisory committee shall consist of not more than 16 
people appointed by the commissioner and shall be comprised of 
representatives from public and private agencies, service 
providers, and consumers from all areas of the state.  
    Members of the advisory committee shall not be compensated 
for service. 
    Sec. 76.  Minnesota Statutes 1991 Supplement, section 
256B.093, subdivision 1, is amended to read: 
    Subdivision 1.  [STATE COORDINATOR TRAUMATIC BRAIN INJURY 
CASE MANAGEMENT.] The commissioner of human services 
shall designate a full-time position within the long-term care 
management division of the department of human services to 
supervise and coordinate services for persons with traumatic 
brain injuries. 
    An advisory committee shall be established to provide 
recommendations to the department regarding program and service 
needs of persons with traumatic brain injuries: 
    (1) establish and maintain statewide traumatic brain injury 
case management; 
    (2) designate a full-time position to supervise and 
coordinate services for persons with traumatic brain injuries; 
    (3) contract with qualified agencies or employ staff to 
provide statewide administrative case management; and 
    (4) establish an advisory committee to provide 
recommendations in a report to the department regarding program 
and service needs of persons with traumatic brain injuries. 
    Sec. 77.  Minnesota Statutes 1991 Supplement, section 
256B.093, subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBILITY.] The commissioner may contract with 
qualified agencies or employ staff to provide statewide case 
management services to medical assistance recipients who are at 
risk of institutionalization and who Persons eligible for 
traumatic brain injury administrative case management must be 
eligible medical assistance recipients who have traumatic brain 
injury and: 
    (1) are at risk of institutionalization; or 
    (2) exceed limits established by the commissioner in 
section 256B.0627, subdivision 5, paragraph (b). 
    Sec. 78.  Minnesota Statutes 1991 Supplement, section 
256B.093, subdivision 3, is amended to read: 
    Subd. 3.  [CASE MANAGEMENT DUTIES.] The department shall 
fund case management under this subdivision using medical 
assistance administrative funds.  Case management duties include:
    (1) assessing the person's individual needs for services 
required to prevent institutionalization; 
    (2) ensuring that a care plan that addresses the person's 
needs is developed, implemented, and monitored on an ongoing 
basis by the appropriate agency or individual; 
    (3) assisting the person in obtaining services necessary to 
allow the person to remain in the community; 
    (4) coordinating home care services with other medical 
assistance services under section 256B.0625; 
    (5) ensuring appropriate, accessible, and cost-effective 
medical assistance services; 
    (6) recommending to the commissioner the approval or denial 
of the use of medical assistance funds to pay for home care 
services when home care services exceed thresholds established 
by the commissioner under Minnesota Rules, parts 9505.0170 to 
9505.0475 section 256B.0627; 
    (7) assisting the person with problems related to the 
provision of home care services; 
    (8) ensuring the quality of home care services; 
    (9) reassessing the person's need for and level of home 
care services at a frequency determined by the commissioner; and 
    (10) recommending to the commissioner the approval or 
denial of medical assistance funds to pay for out-of-state 
placements for traumatic brain injury services and in-state 
traumatic brain injury services provided by designated Medicare 
long-term care hospitals. 
    Sec. 79.  Minnesota Statutes 1990, section 256B.14, 
subdivision 2, is amended to read: 
    Subd. 2.  [ACTIONS TO OBTAIN PAYMENT.] The state agency 
shall promulgate rules to determine the ability of responsible 
relatives to contribute partial or complete payment or repayment 
of medical assistance furnished to recipients for whom they are 
responsible.  These rules shall not require payment or repayment 
when payment would cause undue hardship to the responsible 
relative or that relative's immediate family.  These rules shall 
be consistent with the requirements of section 252.27 for 
parents of children whose eligibility for medical assistance was 
determined without deeming of the parents' resources and 
income.  For parents of children receiving services under a 
federal medical assistance waiver or under section 134 of the 
Tax Equity and Fiscal Responsibility Act of 1982, United States 
Code, title 42, section 1396a(e)(3), while living in their 
natural home, including in-home family support services, respite 
care, homemaker services, and minor adaptations to the home, the 
state agency shall take into account the room, board, and 
services provided by the parents in determining the parental 
contribution to the cost of care.  The county agency shall give 
the responsible relative notice of the amount of the payment or 
repayment.  If the state agency or county agency finds that 
notice of the payment obligation was given to the responsible 
relative, but that the relative failed or refused to pay, a 
cause of action exists against the responsible relative for that 
portion of medical assistance granted after notice was given to 
the responsible relative, which the relative was determined to 
be able to pay.  
     The action may be brought by the state agency or the county 
agency in the county where assistance was granted, for the 
assistance, together with the costs of disbursements incurred 
due to the action.  
     In addition to granting the county or state agency a money 
judgment, the court may, upon a motion or order to show cause, 
order continuing contributions by a responsible relative found 
able to repay the county or state agency.  The order shall be 
effective only for the period of time during which the recipient 
receives medical assistance from the county or state agency. 
    Sec. 80.  Minnesota Statutes 1990, section 256B.15, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITION.] For purposes of this section, 
"medical assistance" includes the medical assistance program 
under chapter 256B and the general assistance medical care 
program under chapter 256D, but does not include the alternative 
care program under chapter 256B. 
    Subd. 1a.  [ESTATES SUBJECT TO CLAIMS.] If a person 
receives any medical assistance hereunder, on the person's 
death, if single, or on the death of the survivor of a married 
couple, either or both of whom received medical assistance, the 
total amount paid for medical assistance rendered for the person 
and spouse shall be filed as a claim against the estate of the 
person or the estate of the surviving spouse in the court having 
jurisdiction to probate the estate.  
    A claim shall be filed if medical assistance was rendered 
for either or both persons under one of the following 
circumstances: 
    (a) the person was over 65 years of age, and received 
services under chapter 256B, excluding alternative care; or 
    (b) the person resided in a medical institution for six 
months or longer, received services under chapter 256B excluding 
alternative care, and, at the time of institutionalization or 
application for medical assistance, whichever is later, the 
person could not have reasonably been expected to be discharged 
and returned home, as certified in writing by the person's 
treating physician.  For purposes of this section only, a 
"medical institution" means a skilled nursing facility, 
intermediate care facility, intermediate care facility for 
persons with mental retardation, nursing facility, or inpatient 
hospital; or 
    (c) the person received general assistance medical care 
services under chapter 256D.  
    The claim shall be considered an expense of the last 
illness of the decedent for the purpose of section 524.3-805.  
Any statute of limitations that purports to limit any county 
agency or the state agency, or both, to recover for medical 
assistance granted hereunder shall not apply to any claim made 
hereunder for reimbursement for any medical assistance granted 
hereunder.  Counties are entitled to one-half of the nonfederal 
share of medical assistance collections from estates that are 
directly attributable to county effort.  
    Sec. 81.  Minnesota Statutes 1990, section 256B.15, 
subdivision 2, is amended to read: 
    Subd. 2.  [LIMITATIONS ON CLAIMS.] The claim shall include 
only the total amount of medical assistance rendered after age 
65 or during a period of institutionalization described in 
subdivision 1, clause (b), and the total amount of general 
assistance medical care rendered, and shall not include 
interest.  Claims that have been allowed but not paid shall bear 
interest according to section 524.3-806, paragraph (d).  A claim 
against the estate of a surviving spouse who did not receive 
medical assistance, for medical assistance rendered for the 
predeceased spouse, is limited to the value of the assets of the 
estate that were marital property or jointly owned property at 
any time during the marriage.  
    Sec. 82.  Minnesota Statutes 1990, section 256B.19, is 
amended by adding a subdivision to read: 
    Subd. 1b.  [PORTION OF NONFEDERAL SHARE TO BE PAID BY 
GOVERNMENT HOSPITALS.] In addition to the percentage 
contribution paid by a county under subdivision 1, the 
governmental units designated in this subdivision shall be 
responsible for an additional portion of the nonfederal share of 
medical assistance costs attributable to them.  For purposes of 
this subdivision, "designated governmental unit" means Hennepin 
county, and the public corporation known as Ramsey Health Care, 
Inc. which is operated under the authority of chapter 246A.  For 
purposes of this subdivision, "public hospital" means the 
Hennepin County Medical Center, and the St. Paul-Ramsey Medical 
Center. 
    Each of the governmental units designated in this 
subdivision shall on a monthly basis transfer an amount equal to 
two percent of the public hospital's net patient revenues, 
excluding net Medicare revenue to the state Medicaid agency.  
These sums shall be part of the local governmental unit's 
portion of the nonfederal share of medical assistance costs, but 
shall not be subject to payback provisions of section 256.025. 
    Sec. 83.  Minnesota Statutes 1990, section 256B.36, is 
amended to read: 
    256B.36 [PERSONAL ALLOWANCE FOR CERTAIN RECIPIENTS OF 
MEDICAL ASSISTANCE.] 
    In addition to the personal allowance established in 
section 256B.35, any disabled recipient of medical assistance 
with a handicap, mental retardation, or a related condition, 
confined in a skilled nursing home or intermediate care facility 
who is a resident of a nursing facility or intermediate care 
facility for the mentally retarded, shall also be permitted a 
special personal allowance drawn solely from earnings from 
any productive employment under an individual plan of 
rehabilitation.  This special personal allowance shall not 
exceed (1) the limits set therefor by the commissioner, or (2) 
the amount of disregarded income the individual would have 
retained as a recipient of aid to the disabled benefits in 
December, 1973, whichever amount is lower consist of the sum of 
the following amounts, deducted from earnings in the following 
order: 
    (1) $80 for the costs of meals and miscellaneous work 
expenses; 
    (2) federal insurance contributions act payments withheld 
from the person's earned income; 
    (3) actual employment related transportation expenses; 
    (4) other actual employment related expenses; and 
    (5) state and federal income taxes withheld from the 
person's earned income, if the person cannot be claimed as 
exempt from federal income tax withholding. 
    The maximum special personal allowance from earnings is the 
sum of items (1) to (5). 
    Sec. 84.  Minnesota Statutes 1990, section 256B.41, 
subdivision 1, is amended to read: 
    Subdivision 1.  [AUTHORITY.] The commissioner shall 
establish, by rule, procedures for determining rates for care of 
residents of nursing homes which qualify as vendors of medical 
assistance, and for implementing the provisions of this section 
and sections 256B.421, 256B.431, 256B.432, 256B.433, 256B.47, 
256B.48, 256B.50, and 256B.502.  The procedures shall be based 
on methods and standards that the commissioner finds are 
adequate to provide for the costs that must be incurred for the 
care of residents in efficiently and economically operated 
nursing homes and shall specify the costs that are allowable for 
establishing payment rates through medical assistance. 
    Sec. 85.  Minnesota Statutes 1990, section 256B.41, 
subdivision 2, is amended to read: 
    Subd. 2.  [FEDERAL REQUIREMENTS.] If any provision of this 
section and sections 256B.421, 256B.431, 256B.432, 256B.433, 
256B.47, 256B.48, 256B.50, and 256B.502, is determined by the 
United States government to be in conflict with existing or 
future requirements of the United States government with respect 
to federal participation in medical assistance, the federal 
requirements shall prevail. 
    Sec. 86.  Minnesota Statutes 1990, section 256B.421, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SCOPE.] For the purposes of this section 
and sections 256B.41, 256B.411, 256B.431, 256B.432, 256B.433, 
256B.47, 256B.48, 256B.50, and 256B.502, the following terms and 
phrases shall have the meaning given to them. 
    Sec. 87.  Minnesota Statutes 1990, section 256B.421, is 
amended by adding a subdivision to read: 
    Subd. 16.  [CAPITAL ASSETS.] "Capital assets," for purposes 
of section 256B.431, subdivisions 13 to 21, means a nursing 
facility's buildings, attached fixtures, land improvements, 
leasehold improvements, and all additions to or replacements of 
those assets used directly for resident care. 
    Sec. 88.  Minnesota Statutes 1990, section 256B.431, 
subdivision 2i, is amended to read: 
    Subd. 2i.  [OPERATING COSTS AFTER JULY 1, 1988.] (a)  
[OTHER OPERATING COST LIMITS.] For the rate year beginning July 
1, 1988, the commissioner shall increase the other operating 
cost limits established in Minnesota Rules, part 9549.0055, 
subpart 2, item E, to 110 percent of the median of the array of 
allowable historical other operating cost per diems and index 
these limits as in Minnesota Rules, part 9549.0056, subparts 3 
and 4.  The limits must be established in accordance with 
subdivision 2b, paragraph (d).  For rate years beginning on or 
after July 1, 1989, the adjusted other operating cost limits 
must be indexed as in Minnesota Rules, part 9549.0056, subparts 
3 and 4.  For the rate period beginning October 1, 1992, and for 
rate years beginning after June 30, 1993, the amount of the 
surcharge under section 256.9657, subdivision 1, shall be 
included in the plant operations and maintenance operating cost 
category.  The surcharge shall be an allowable cost for the 
purpose of establishing the payment rate. 
    (b)  [CARE-RELATED OPERATING COST LIMITS.] For the rate 
year beginning July 1, 1988, the commissioner shall increase the 
care-related operating cost limits established in Minnesota 
Rules, part 9549.0055, subpart 2, items A and B, to 125 percent 
of the median of the array of the allowable historical case mix 
operating cost standardized per diems and the allowable 
historical other care-related operating cost per diems and index 
those limits as in Minnesota Rules, part 9549.0056, subparts 1 
and 2.  The limits must be established in accordance with 
subdivision 2b, paragraph (d).  For rate years beginning on or 
after July 1, 1989, the adjusted care-related limits must be 
indexed as in Minnesota Rules, part 9549.0056, subparts 1 and 2. 
     (c)  [SALARY ADJUSTMENT PER DIEM.] For the rate period 
October 1, 1988, to June 30, 1990, the commissioner shall add 
the appropriate salary adjustment per diem calculated in clause 
(1) or (2) to the total operating cost payment rate of each 
nursing home.  The salary adjustment per diem for each nursing 
home must be determined as follows: 
      (1) for each nursing home that reports salaries for 
registered nurses, licensed practical nurses, and aides, 
orderlies and attendants separately, the commissioner shall 
determine the salary adjustment per diem by multiplying the 
total salaries, payroll taxes, and fringe benefits allowed in 
each operating cost category, except management fees and 
administrator and central office salaries and the related 
payroll taxes and fringe benefits, by 3.5 percent and then 
dividing the resulting amount by the nursing home's actual 
resident days; and 
      (2) for each nursing home that does not report salaries for 
registered nurses, licensed practical nurses, aides, orderlies, 
and attendants separately, the salary adjustment per diem is the 
weighted average salary adjustment per diem increase determined 
under clause (1). 
      Each nursing home that receives a salary adjustment per 
diem pursuant to this subdivision shall adjust nursing home 
employee salaries by a minimum of the amount determined in 
clause (1) or (2).  The commissioner shall review allowable 
salary costs, including payroll taxes and fringe benefits, for 
the reporting year ending September 30, 1989, to determine 
whether or not each nursing home complied with this 
requirement.  The commissioner shall report the extent to which 
each nursing home complied with the legislative commission on 
long-term care by August 1, 1990.  
     (d)  [NEW BASE YEAR.] The commissioner shall establish new 
base years for both the reporting year ending September 30, 
1989, and the reporting year ending September 30, 1990.  In 
establishing new base years, the commissioner must take into 
account:  
     (1) statutory changes made in geographic groups; 
     (2) redefinitions of cost categories; and 
     (3) reclassification, pass-through, or exemption of certain 
costs such as public employee retirement act contributions. 
    (e)  [NEW BASE YEAR.] The commissioner shall establish a 
new base year for the reporting years ending September 30, 1991, 
and September 30, 1992.  In establishing a new base year, the 
commissioner must take into account:  
    (1) statutory changes made in geographic groups; 
    (2) redefinitions of cost categories; and 
    (3) reclassification, pass-through, or exemption of certain 
costs. 
    Sec. 89.  Minnesota Statutes 1991 Supplement, section 
256B.431, subdivision 2l, is amended to read: 
    Subd. 2l.  [INFLATION ADJUSTMENTS AFTER JULY 1, 1990.] (a) 
For rate years beginning on or after July 1, 1990, the 
forecasted composite price index for a nursing home's allowable 
operating cost per diems shall be determined using Data 
Resources, Inc., forecast for change in the Nursing Home Market 
Basket.  The commissioner of human services shall use the 
indices as forecasted by Data Resources, Inc., in the fourth 
quarter of the calendar year preceding the rate year. 
    (b) For rate years beginning on or after July 1, 1992, the 
commissioner shall index the prior year's operating cost limits 
by the percentage change in the Data Resources, Inc., nursing 
home market basket between the midpoint of the current reporting 
year and the midpoint of the previous reporting year.  The 
commissioner shall use the indices as forecasted by Data 
Resources, Inc., in the fourth quarter of the calendar year 
preceding the rate year.  
    (c) For rate years beginning on or after July 1, 1993, the 
commissioner shall not provide automatic annual inflation 
adjustments for nursing homes.  The commissioner of finance 
shall include annual adjustments in operating costs for nursing 
homes as a budget change request in each biennial detailed 
expenditure budget submitted to the legislature under section 
16A.11.  
    Sec. 90.  Minnesota Statutes 1991 Supplement, section 
256B.431, subdivision 2m, is amended to read: 
    Subd. 2m.  [NURSING HOMES SPECIALIZING IN THE TREATMENT OF 
HUNTINGTON'S DISEASE.] For the rate year beginning July 1, 1991, 
and for the rate period from July 1, 1992, to December 31, 1992, 
the commissioner shall reimburse nursing homes that specialize 
in the treatment of Huntington's disease using the case mix per 
diem limit that applies to nursing homes licensed under the 
department of human services' rules governing residential 
services for physically handicapped persons to establish rates 
for up to 35 persons with Huntington's disease.  For purposes of 
this subdivision, a nursing home specializes in the treatment of 
Huntington's disease if more than 25 percent of its licensed 
capacity is used for residents with Huntington's disease. 
    Sec. 91.  Minnesota Statutes 1991 Supplement, section 
256B.431, subdivision 2o, is amended to read: 
    Subd. 2o.  [SPECIAL PAYMENT RATES FOR SHORT-STAY NURSING 
HOMES.] Notwithstanding contrary provisions of this section and 
rules adopted by the commissioner, for the rate year years 
beginning on or after July 1, 1992, a nursing home whose average 
length of stay for the rate year beginning July 1, 1991, is less 
than 180 days must be reimbursed for allowable costs up to 125 
percent of the total care-related limit and 105 percent of the 
other-operating-cost limit for hospital-attached nursing 
facilities.  The nursing home continues to receive this rate 
even if the home's average length of stay is more than 180 days 
in the rate year years subsequent to the rate year beginning 
July 1, 1991. 
    Sec. 92.  Minnesota Statutes 1991 Supplement, section 
256B.431, subdivision 3f, is amended to read: 
    Subd. 3f.  [PROPERTY COSTS AFTER JULY 1, 1988.] (a)  
[INVESTMENT PER BED LIMIT.] For the rate year beginning July 1, 
1988, the replacement-cost-new per bed limit must be $32,571 per 
licensed bed in multiple bedrooms and $48,857 per licensed bed 
in a single bedroom.  For the rate year beginning July 1, 1989, 
the replacement-cost-new per bed limit for a single bedroom must 
be $49,907 adjusted according to Minnesota Rules, part 
9549.0060, subpart 4, item A, subitem (1).  Beginning January 1, 
1990, the replacement-cost-new per bed limits must be adjusted 
annually as specified in Minnesota Rules, part 9549.0060, 
subpart 4, item A, subitem (1).  Beginning January 1, 1991, the 
replacement-cost-new per bed limits will be adjusted annually as 
specified in Minnesota Rules, part 9549.0060, subpart 4, item A, 
subitem (1), except that the index utilized will be the Bureau 
of the Census:  Composite fixed-weighted price index as 
published in the Survey of Current Business. 
    (b) [RENTAL FACTOR.] For the rate year beginning July 1, 
1988, the commissioner shall increase the rental factor as 
established in Minnesota Rules, part 9549.0060, subpart 8, item 
A, by 6.2 percent rounded to the nearest 100th percent for the 
purpose of reimbursing nursing homes for soft costs and 
entrepreneurial profits not included in the cost valuation 
services used by the state's contracted appraisers.  For rate 
years beginning on or after July 1, 1989, the rental factor is 
the amount determined under this paragraph for the rate year 
beginning July 1, 1988. 
    (c) [OCCUPANCY FACTOR.] For rate years beginning on or 
after July 1, 1988, in order to determine property-related 
payment rates under Minnesota Rules, part 9549.0060, for all 
nursing homes except those whose average length of stay in a 
skilled level of care within a nursing home is 180 days or less, 
the commissioner shall use 95 percent of capacity days.  For a 
nursing home whose average length of stay in a skilled level of 
care within a nursing home is 180 days or less, the commissioner 
shall use the greater of resident days or 80 percent of capacity 
days but in no event shall the divisor exceed 95 percent of 
capacity days. 
    (d) [EQUIPMENT ALLOWANCE.] For rate years beginning on July 
1, 1988, and July 1, 1989, the commissioner shall add ten cents 
per resident per day to each nursing home's property-related 
payment rate.  The ten-cent property-related payment rate 
increase is not cumulative from rate year to rate year.  For the 
rate year beginning July 1, 1990, the commissioner shall 
increase each nursing home's equipment allowance as established 
in Minnesota Rules, part 9549.0060, subpart 10, by ten cents per 
resident per day.  For rate years beginning on or after July 1, 
1991, the adjusted equipment allowance must be adjusted annually 
for inflation as in Minnesota Rules, part 9549.0060, subpart 10, 
item E.  For the rate period beginning October 1, 1992, the 
equipment allowance for each nursing facility shall be increased 
by 28 percent.  For rate years beginning after June 30, 1993, 
the allowance must be adjusted annually for inflation. 
    (e) [POST CHAPTER 199 RELATED-ORGANIZATION DEBTS AND 
INTEREST EXPENSE.] For rate years beginning on or after July 1, 
1990, Minnesota Rules, part 9549.0060, subpart 5, item E, shall 
not apply to outstanding related organization debt incurred 
prior to May 23, 1983, provided that the debt was an allowable 
debt under Minnesota Rules, parts 9510.0010 to 9510.0480, the 
debt is subject to repayment through annual principal payments, 
and the nursing home demonstrates to the commissioner's 
satisfaction that the interest rate on the debt was less than 
market interest rates for similar arms-length transactions at 
the time the debt was incurred.  If the debt was incurred due to 
a sale between family members, the nursing home must also 
demonstrate that the seller no longer participates in the 
management or operation of the nursing home.  Debts meeting the 
conditions of this paragraph are subject to all other provisions 
of Minnesota Rules, parts 9549.0010 to 9549.0080. 
    (f) [BUILDING CAPITAL ALLOWANCE FOR NURSING HOMES WITH 
OPERATING LEASES.] For rate years beginning on or after July 1, 
1990, a nursing home with operating lease costs incurred for the 
nursing home's buildings shall receive its building capital 
allowance computed in accordance with Minnesota Rules, part 
9549.0060, subpart 8. 
    Sec. 93.  Minnesota Statutes 1990, section 256B.431, 
subdivision 4, is amended to read: 
    Subd. 4.  [SPECIAL RATES.] (a) For the rate years beginning 
July 1, 1983, and July 1, 1984, a newly constructed nursing home 
or one with a capacity increase of 50 percent or more may, upon 
written application to the commissioner, receive an interim 
payment rate for reimbursement for property-related costs 
calculated pursuant to the statutes and rules in effect on May 
1, 1983, and for operating costs negotiated by the commissioner 
based upon the 60th percentile established for the appropriate 
group under subdivision 2a, to be effective from the first day a 
medical assistance recipient resides in the home or for the 
added beds.  For newly constructed nursing homes which are not 
included in the calculation of the 60th percentile for any 
group, subdivision 2f, the commissioner shall establish by rule 
procedures for determining interim operating cost payment rates 
and interim property-related cost payment rates.  The interim 
payment rate shall not be in effect for more than 17 months.  
The commissioner shall establish, by emergency and permanent 
rules, procedures for determining the interim rate and for 
making a retroactive cost settle-up after the first year of 
operation; the cost settled operating cost per diem shall not 
exceed 110 percent of the 60th percentile established for the 
appropriate group.  Until procedures determining operating cost 
payment rates according to mix of resident needs are 
established, the commissioner shall establish by rule procedures 
for determining payment rates for nursing homes which provide 
care under a lesser care level than the level for which the 
nursing home is certified.  
     (b) For the rate years beginning on or after July 1, 1985, 
a newly constructed nursing home or one with a capacity increase 
of 50 percent or more may, upon written application to the 
commissioner, receive an interim payment rate for reimbursement 
for property related costs, operating costs, and real estate 
taxes and special assessments calculated under rules promulgated 
by the commissioner. 
     (c) For rate years beginning on or after July 1, 1983, the 
commissioner may exclude from a provision of 12 MCAR S 2.050 any 
facility that is licensed by the commissioner of health only as 
a boarding care home, certified by the commissioner of health as 
an intermediate care facility, is licensed by the commissioner 
of human services under Minnesota Rules, parts 9520.0500 to 
9520.0690, and has less than five percent of its licensed 
boarding care capacity reimbursed by the medical assistance 
program.  Until a permanent rule to establish the payment rates 
for facilities meeting these criteria is promulgated, the 
commissioner shall establish the medical assistance payment rate 
as follows:  
     (1) The desk audited payment rate in effect on June 30, 
1983, remains in effect until the end of the facility's fiscal 
year.  The commissioner shall not allow any amendments to the 
cost report on which this desk audited payment rate is based.  
     (2) For each fiscal year beginning between July 1, 1983, 
and June 30, 1985, the facility's payment rate shall be 
established by increasing the desk audited operating cost 
payment rate determined in clause (1) at an annual rate of five 
percent.  
     (3) For fiscal years beginning on or after July 1, 1985, 
but before January 1, 1988, the facility's payment rate shall be 
established by increasing the facility's payment rate in the 
facility's prior fiscal year by the increase indicated by the 
consumer price index for Minneapolis and St. Paul.  
     (4) For the fiscal year beginning on January 1, 1988, the 
facility's payment rate must be established using the following 
method:  The commissioner shall divide the real estate taxes and 
special assessments payable as stated in the facility's current 
property tax statement by actual resident days to compute a real 
estate tax and special assessment per diem.  Next, the prior 
year's payment rate must be adjusted by the higher of (1) the 
percentage change in the consumer price index (CPI-U U.S. city 
average) as published by the Bureau of Labor Statistics between 
the previous two Septembers, new series index (1967-100), or (2) 
2.5 percent, to determine an adjusted payment rate.  The 
facility's payment rate is the adjusted prior year's payment 
rate plus the real estate tax and special assessment per diem. 
     (5) For fiscal years beginning on or after January 1, 1989, 
the facility's payment rate must be established using the 
following method:  The commissioner shall divide the real estate 
taxes and special assessments payable as stated in the 
facility's current property tax statement by actual resident 
days to compute a real estate tax and special assessment per 
diem.  Next, the prior year's payment rate less the real estate 
tax and special assessment per diem must be adjusted by the 
higher of (1) the percentage change in the consumer price index 
(CPI-U U.S. city average) as published by the Bureau of Labor 
Statistics between the previous two Septembers, new series index 
(1967-100), or (2) 2.5 percent, to determine an adjusted payment 
rate.  The facility's payment rate is the adjusted payment rate 
plus the real estate tax and special assessment per diem. 
     (6) For the purpose of establishing payment rates under 
this paragraph, the facility's rate and reporting years coincide 
with the facility's fiscal year.  
     (d) A facility that meets the criteria of paragraph (c) 
shall submit annual cost reports on forms prescribed by the 
commissioner.  
     (e) For the rate year beginning July 1, 1985, each nursing 
home total payment rate must be effective two calendar months 
from the first day of the month after the commissioner issues 
the rate notice to the nursing home.  From July 1, 1985, until 
the total payment rate becomes effective, the commissioner shall 
make payments to each nursing home at a temporary rate that is 
the prior rate year's operating cost payment rate increased by 
2.6 percent plus the prior rate year's property-related payment 
rate and the prior rate year's real estate taxes and special 
assessments payment rate.  The commissioner shall retroactively 
adjust the property-related payment rate and the real estate 
taxes and special assessments payment rate to July 1, 1985, but 
must not retroactively adjust the operating cost payment rate. 
     (f) For the purposes of Minnesota Rules, part 9549.0060, 
subpart 13, item F, the following types of transactions shall 
not be considered a sale or reorganization of a provider entity: 
     (1) the sale or transfer of a nursing home upon death of an 
owner; 
     (2) the sale or transfer of a nursing home due to serious 
illness or disability of an owner as defined under the social 
security act; 
     (3) the sale or transfer of the nursing home upon 
retirement of an owner at 62 years of age or older; 
     (4) any transaction in which a partner, owner, or 
shareholder acquires an interest or share of another partner, 
owner, or shareholder in a nursing home business provided the 
acquiring partner, owner, or shareholder has less than 50 
percent ownership after the acquisition; 
     (5) a sale and leaseback to the same licensee which does 
not constitute a change in facility license; 
     (6) a transfer of an interest to a trust; 
     (7) gifts or other transfers for no consideration; 
     (8) a merger of two or more related organizations; 
     (9) a transfer of interest in a facility held in 
receivership; 
     (10) a change in the legal form of doing business other 
than a publicly held organization which becomes privately held 
or vice versa; 
     (11) the addition of a new partner, owner, or shareholder 
who owns less than 20 percent of the nursing home or the 
issuance of stock; or 
     (12) an involuntary transfer including foreclosure, 
bankruptcy, or assignment for the benefit of creditors. 
     Any increase in allowable debt or allowable interest 
expense or other cost incurred as a result of the foregoing 
transactions shall be a nonallowable cost for purposes of 
reimbursement under Minnesota Rules, parts 9549.0010 to 
9549.0080. 
    (g) Upon receiving a recommendation from the commissioner 
of health for a review of rates under section 144A.15, 
subdivision 6, the commissioner may grant an adjustment to the 
nursing home's payment rate.  The commissioner shall review the 
recommendation of the commissioner of health, together with the 
nursing home's cost report to determine whether or not the 
deficiency or need can be corrected or met by reallocating 
nursing home staff, costs, revenues, or other resources 
including any investments, efficiency incentives, or 
allowances.  If the commissioner determines that the deficiency 
cannot be corrected or the need cannot be met, the commissioner 
shall determine the payment rate adjustment by dividing the 
additional annual costs established during the commissioner's 
review by the nursing home's actual resident days from the most 
recent desk-audited cost report.  The payment rate adjustment 
must meet the conditions in section 256B.47, subdivision 2, and 
shall remain in effect until the receivership under section 
144A.15 ends, or until another date the commissioner sets. 
    Upon the subsequent sale or transfer of the nursing home, 
the commissioner may recover amounts paid through payment rate 
adjustments under this paragraph.  The buyer or transferee shall 
repay this amount to the commissioner within 60 days after the 
commissioner notifies the buyer or transferee of the obligation 
to repay.  The buyer or transferee must also repay the 
private-pay resident the amount the private-pay resident paid 
through payment rate adjustment. 
    Sec. 94.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 9a.  [ONE-TIME ADJUSTMENT FOR 21-MONTH FACTOR.] For 
the rate period beginning October 1, 1992, the 21-month 
inflation factor for operating costs shall be increased by 
seven-tenths of one percent. 
    Sec. 95.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 13.  [HOLD-HARMLESS PROPERTY-RELATED RATES.] (a) 
Terms used in subdivisions 13 to 21 shall be as defined in 
Minnesota Rules, parts 9549.0010 to 9549.0080, and this section. 
    (b) Except as provided in this subdivision, for rate 
periods beginning on October 1, 1992, and for rate years 
beginning after June 30, 1993, the property-related rate for a 
nursing facility shall be the greater of $4 or the 
property-related payment rate in effect on September 30, 1992.  
In addition, the incremental increase in the nursing facility's 
rental rate will be determined under Minnesota Rules, parts 
9549.0010 to 9549.0080, and this section. 
    (c) Notwithstanding Minnesota Rules, part 9549.0060, 
subpart 13, item F, a nursing facility that has a sale permitted 
under subdivision 14 after June 30, 1992, shall receive the 
property-related payment rate in effect at the time of the sale 
or reorganization.  For rate periods beginning after October 1, 
1992, and for rate years beginning after June 30, 1993, a 
nursing facility shall receive, in addition to its 
property-related payment rate in effect at the time of the sale, 
the incremental increase allowed under subdivision 14. 
    Sec. 96.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 14.  [LIMITATIONS ON SALES OF NURSING FACILITIES.] (a)
For rate periods beginning on October 1, 1992, and for rate 
years beginning after June 30, 1993, a nursing facility's 
property-related payment rate as established under subdivision 
13 shall be adjusted by either paragraph (b) or (c) for the sale 
of the nursing facility, including sales occurring after June 
30, 1992, as provided in this subdivision. 
    (b) If the nursing facility's property-related payment rate 
under subdivision 13 prior to sale is greater than the nursing 
facility's rental rate under Minnesota Rules, parts 9549.0010 to 
9549.0080, and this section prior to sale, the nursing 
facility's property-related payment rate after sale shall be the 
greater of its property-related payment rate under subdivision 
13 prior to sale or its rental rate under Minnesota Rules, parts 
9549.0010 to 9549.0080, and this section calculated after sale. 
    (c) If the nursing facility's property-related payment rate 
under subdivision 13 prior to sale is equal to or less than the 
nursing facility's rental rate under Minnesota Rules, parts 
9549.0010 to 9549.0080, and this section prior to sale, the 
nursing facility's property-related payment rate after sale 
shall be the nursing facility's property-related payment rate 
under subdivision 13 plus the difference between its rental rate 
calculated under Minnesota Rules, parts 9549.0010 to 9549.0080, 
and this section prior to sale and its rental rate calculated 
under Minnesota Rules, parts 9549.0010 to 9549.0080, and this 
section calculated after sale. 
    (d) For purposes of this subdivision, "sale" means the 
purchase of a nursing facility's capital assets with cash or 
debt.  The term sale does not include a stock purchase of a 
nursing facility or any of the following transactions:  
    (1) a sale and leaseback to the same licensee that does not 
constitute a change in facility license; 
    (2) a transfer of an interest to a trust; 
    (3) gifts or other transfers for no consideration; 
    (4) a merger of two or more related organizations; 
    (5) a change in the legal form of doing business, other 
than a publicly held organization that becomes privately held or 
vice versa; 
    (6) the addition of a new partner, owner, or shareholder 
who owns less than 20 percent of the nursing home or the 
issuance of stock; and 
    (7) a sale, merger, reorganization, or any other transfer 
of interest between related organizations other than those 
permitted in this section. 
    (e) For purposes of this subdivision, "effective date of 
sale" means the later of either the date on which legal title to 
the capital assets is transferred or the date on which closing 
for the sale occurred.  
    (f) The effective day for the property-related payment rate 
determined under this subdivision shall be the first day of the 
month following the month in which the effective date of sale 
occurs or October 1, 1992, whichever is later, provided that the 
notice requirements under section 256B.47, subdivision 2, have 
been met. 
    (g) Notwithstanding Minnesota Rules, part 9549.0060, 
subpart 5, item A, subitems (3) and (4), and subpart 7, items E 
and F, the commissioner shall limit the total allowable debt and 
related interest for sales occurring after June 30, 1992, to the 
sum of clauses (1) to (3):  
    (1) the historical cost of capital assets, as of the 
nursing facility's most recent previous effective date of sale 
or, if there has been no previous sale, the nursing facility's 
initial historical cost of constructing capital assets; 
    (2) the average annual capital asset additions after 
deduction for capital asset deletions, not including 
depreciations; and 
    (3) one-half of the allowed inflation on the nursing 
facility's capital assets.  The commissioner shall compute the 
allowed inflation as described in paragraph (h). 
    (h) For purposes of computing the amount of allowed 
inflation, the commissioner must apply the following principles: 
    (1) the lesser of the Consumer Price Index for all urban 
consumers or the Dodge Construction Systems Costs for Nursing 
Homes for any time periods during which both are available must 
be used.  If the Dodge Construction Systems Costs for Nursing 
Homes becomes unavailable, the commissioner shall substitute the 
index in section 256B.431, subdivision 3f, or such other index 
as the secretary of the health care financing administration may 
designate; 
    (2) the amount of allowed inflation to be applied to the 
capital assets in paragraph (g), clauses (1) and (2), must be 
computed separately; 
    (3) the amount of allowed inflation must be determined on 
an annual basis, prorated on a monthly basis for partial years 
and if the initial month of use is not determinable for a 
capital asset, then one-half of that calendar year shall be used 
for purposes of prorating; 
    (4) the amount of allowed inflation to be applied to the 
capital assets in paragraph (g), clauses (1) and (2), must not 
exceed 300 percent of the total capital assets in any one of 
those clauses; and 
    (5) the allowed inflation must be computed starting with 
the month following the nursing facility's most recent previous 
effective date of sale or, if there has been no previous sale, 
the month following the date of the nursing facility's initial 
occupancy, and ending with the month preceding the effective 
date of sale. 
    (i) If the historical cost of a capital asset is not 
readily available for the date of the nursing facility's most 
recent previous sale or if there has been no previous sale for 
the date of the nursing facility's initial occupancy, then the 
commissioner shall limit the total allowable debt and related 
interest after sale to the extent recognized by the Medicare 
intermediary after the sale.  For a nursing facility that has no 
historical capital asset cost data available and does not have 
allowable debt and interest calculated by the Medicare 
intermediary, the commissioner shall use the historical cost of 
capital asset data from the point in time for which capital 
asset data is recorded in the nursing facility's audited 
financial statements. 
    (j) The limitations in this subdivision apply only to debt 
resulting from a sale of a nursing facility occurring after June 
30, 1992, including debt assumed by the purchaser of the nursing 
facility. 
    Sec. 97.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 15.  [CAPITAL REPAIR AND REPLACEMENT COST REPORTING 
AND RATE CALCULATION.] For rate years beginning after June 30, 
1993, a nursing facility's capital repair and replacement 
payment rate shall be established annually as provided in 
paragraphs (a) to (d).  
    (a) Notwithstanding Minnesota Rules, part 9549.0060, 
subpart 12, the costs of acquiring the following items, 
including cash payment for equity investment and principal and 
interest expense for debt financing, shall be reported in the 
capital repair and replacement cost category: 
    (1) wall coverings; 
    (2) paint; 
    (3) floor coverings; 
    (4) window coverings; 
    (5) roof repair; 
    (6) heating or cooling system repair or replacement; 
    (7) window repair or replacement; 
    (8) initiatives designed to reduce energy usage by the 
facility if accompanied by an energy audit prepared by a 
professional engineer or architect registered in Minnesota, or 
by an auditor certified under Minnesota Rules, part 7635.0130, 
to do energy audits and the energy audit identifies the 
initiative as a conservation measure; and 
    (9) capitalized repair or replacement of capital assets not 
included in the equity incentive computations under subdivision 
16.  
    (b) To compute the capital repair and replacement payment 
rate, the allowable annual repair and replacement costs for the 
reporting year must be divided by actual resident days for the 
reporting year.  The annual allowable capital repair and 
replacement costs shall not exceed $150 per licensed bed.  The 
excess of the allowed capital repair and replacement costs over 
the capital repair and replacement limit shall be a cost 
carryover to succeeding cost reporting periods, except that sale 
of a facility, under subdivision 14, shall terminate the 
carryover of all costs except those incurred in the most recent 
cost reporting year.  The termination of the carryover shall 
have effect on the capital repair and replacement rate on the 
same date as provided in subdivision 14, paragraph (f), for the 
sale.  For rate years beginning after June 30, 1994, the capital 
repair and replacement limit shall be subject to the index 
provided in subdivision 3f, paragraph (a).  For purposes of this 
subdivision, the number of licensed beds shall be the number 
used to calculate the nursing facility's capacity days.  The 
capital repair and replacement rate must be added to the nursing 
facility's total payment rate. 
    (c) Capital repair and replacement costs under this 
subdivision shall not be counted as either care-related or other 
operating costs, nor subject to care-related or other operating 
limits. 
    (d) If costs otherwise allowable under this subdivision are 
incurred as the result of a project approved under the 
moratorium exception process in section 144A.073, or in 
connection with an addition to or replacement of buildings, 
attached fixtures, or land improvements for which the total 
historical cost of these assets exceeds the lesser of $150,000 
or ten percent of the nursing facility's appraised value, these 
costs must be claimed under subdivisions 16 or 17, as 
appropriate. 
    Sec. 98.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 16.  [MAJOR ADDITIONS AND REPLACEMENTS; EQUITY 
INCENTIVE.] For rate years beginning after June 30, 1993, if a 
nursing facility acquires capital assets in connection with a 
project approved under the moratorium exception process in 
section 144A.073 or in connection with an addition to or 
replacement of buildings, attached fixtures, or land 
improvements for which the total historical cost of those 
capital asset additions exceeds the lesser of $150,000 or ten 
percent of the most recent appraised value, the nursing facility 
shall be eligible for an equity incentive payment rate as in 
paragraphs (a) to (d).  This computation is separate from the 
determination of the nursing facility's rental rate.  An equity 
incentive payment rate as computed under this subdivision is 
limited to one in a 12-month period. 
    (a) An eligible nursing facility shall receive an equity 
incentive payment rate equal to the allowable historical cost of 
the capital asset acquired, minus the allowable debt directly 
identified to that capital asset, multiplied by the equity 
incentive factor as described in paragraphs (b) and (c), and 
divided by the nursing facility's occupancy factor under 
subdivision 3f, paragraph (c).  This amount shall be added to 
the nursing facility's total payment rate and shall be effective 
the same day as the incremental increase in paragraph (d) or 
subdivision 17.  The allowable historical cost of the capital 
assets and the allowable debt shall be determined as provided in 
Minnesota Rules, parts 9549.0010 to 9549.0080, and this section. 
    (b) The equity incentive factor shall be determined under 
clauses (1) to (4):  
    (1) divide the initial allowable debt in paragraph (a) by 
the initial historical cost of the capital asset additions 
referred to in paragraph (a), then cube the quotient, 
    (2) subtract the amount calculated in clause (1) from the 
number one, 
    (3) determine the difference between the rental factor and 
the lesser of two percentage points above the posted yield for 
standard conventional fixed rate mortgages of the Federal Home 
Loan Mortgage Corporation as published in the Wall Street 
Journal and in effect on the first day of the month the debt or 
cost is incurred, or 16 percent, 
    (4) multiply the amount calculated in clause (2) by the 
amount calculated in clause (3). 
    (c) The equity incentive payment rate shall be limited to 
the term of the allowable debt in paragraph (a), not greater 
than 20 years nor less than ten years.  If no debt is incurred 
in acquiring the capital asset, the equity incentive payment 
rate shall be paid for ten years.  The sale of a nursing 
facility under subdivision 14 shall terminate application of the 
equity incentive payment rate effective on the date provided in 
subdivision 4, paragraph (f), for the sale. 
    (d) A nursing facility with an addition to or a renovation 
of its buildings, attached fixtures, or land improvements 
meeting the criteria in this subdivision and not receiving the 
property-related payment rate adjustment in subdivision 17, 
shall receive the incremental increase in the nursing facility's 
rental rate as determined under Minnesota Rules, parts 9549.0010 
to 9549.0080, and this section.  The incremental increase shall 
be added to the nursing facility's property-related payment rate.
The effective date of this incremental increase shall be the 
first day of the month following the month in which the addition 
or replacement is completed. 
    Sec. 99.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 17.  [SPECIAL PROVISIONS FOR MORATORIUM 
EXCEPTIONS.] (a) Notwithstanding Minnesota Rules, part 
9549.0060, subpart 3, for rate periods beginning on October 1, 
1992, and for rate years beginning after June 30, 1993, a 
nursing facility that has completed a renovation, replacement, 
or upgrading project approved under the moratorium exception 
process in section 144A.073 shall be reimbursed for costs 
directly identified to that project as provided in subdivision 
16 and this subdivision. 
    (b) Notwithstanding Minnesota Rules, part 9549.0060, 
subpart 5, item A, subitems (1) and (3), and subpart 7, item D, 
allowable interest expense on debt shall include: 
    (1) interest expense on debt related to the cost of 
purchasing or replacing depreciable equipment, excluding 
vehicles, not to exceed six percent of the total historical cost 
of the project; and 
    (2) interest expense on debt related to financing or 
refinancing costs, including costs related to points, loan 
origination fees, financing charges, legal fees, and title 
searches; and issuance costs including bond discounts, bond 
counsel, underwriter's counsel, corporate counsel, printing, and 
financial forecasts. Allowable debt related to items in this 
clause shall not exceed seven percent of the total historical 
cost of the project.  To the extent these costs are financed, 
the straight-line amortization of the costs in this clause is 
not an allowable cost; and 
    (3) interest on debt incurred for the establishment of a 
debt reserve fund, net of the interest earned on the debt 
reserve fund. 
    (c) Debt incurred for costs under paragraph (b) is not 
subject to Minnesota Rules, part 9549.0060, subpart 5, item A, 
subitem (5) or (6). 
    (d) The incremental increase in a nursing facility's rental 
rate, determined under Minnesota Rules, parts 9549.0010 to 
9549.0080, and this section, resulting from the acquisition of 
allowable capital assets, and allowable debt and interest 
expense under this subdivision shall be added to its 
property-related payment rate and shall be effective on the 
first day of the month following the month in which the 
moratorium project was completed. 
    (e) Notwithstanding subdivision 3f, paragraph (a), for rate 
periods beginning on October 1, 1992, and for rate years 
beginning after June 30, 1993, the replacement-costs-new per bed 
limit to be used in Minnesota Rules, part 9549.0060, subpart 4, 
item B, for a nursing facility that has completed a renovation, 
replacement, or upgrading project that has been approved under 
the moratorium exception process in section 144A.073, or that 
has completed an addition to or replacement of buildings, 
attached fixtures, or land improvements for which the total 
historical cost exceeds the lesser of $150,000 or ten percent of 
the most recent appraised value, must be $47,500 per licensed 
bed in multiple-bed rooms and $71,250 per licensed bed in a 
single-bed room.  These amounts must be adjusted annually as 
specified in subdivision 3f, paragraph (a), beginning January 1, 
1993. 
    Sec. 100.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 18.  [APPRAISALS; UPDATING APPRAISALS, ADDITIONS, AND 
REPLACEMENTS.] (a) Notwithstanding Minnesota Rules, part 
9549.0060, subparts 1 to 3, the appraised value, routine 
updating of the appraised value, and special reappraisals are 
subject to this subdivision. 
    (1) For rate years beginning after June 30, 1993, the 
commissioner shall permit a nursing facility to appeal its 
appraisal according to the procedures provided in section 
256B.50, subdivision 2.  Any reappraisals conducted in 
connection with that appeal must utilize the comparative-unit 
method as described in the Marshall Valuation Service published 
by Marshall-Swift in establishing the nursing facility's 
depreciated replacement cost. 
    Nursing facilities electing to appeal their appraised value 
shall file written notice of appeal with the commissioner of 
human services before December 30, 1992.  The cost of the 
reappraisal, if any, shall be considered an allowable cost under 
Minnesota Rules, parts 9549.0040, subpart 9, and 9549.0061. 
    (2) The redetermination of a nursing facility's appraised 
value under this paragraph shall have no impact on the rental 
payment rate determined under subdivision 13 but shall only be 
used for calculating the nursing facility's rental rate under 
Minnesota Rules, parts 9549.0010 to 9549.0080, and this section 
for rate years beginning after June 30, 1993.  
    (3) For all rate years after June 30, 1993, the 
commissioner shall no longer conduct any appraisals under 
Minnesota Rules, part 9549.0060, for the purpose of determining 
property-related payment rates. 
    (b) Notwithstanding Minnesota Rules, part 9549.0060, 
subpart 2, for rate years beginning after June 30, 1993, the 
commissioner shall routinely update the appraised value of each 
nursing facility by adding the cost of capital asset 
acquisitions to its allowable appraised value.  
    The commissioner shall also annually index each nursing 
facility's allowable appraised value by the inflation index 
referenced in subdivision 3f, paragraph (a), for the purpose of 
computing the nursing facility's annual rental rate.  In 
annually adjusting the nursing facility's appraised value, the 
commissioner must not include the historical cost of capital 
assets acquired during the reporting year in the nursing 
facility's appraised value. 
    In addition, the nursing facility's appraised value must be 
reduced by the historical cost of capital asset disposals or 
applicable credits such as public grants and insurance 
proceeds.  Capital asset additions and disposals must be 
reported on the nursing facility's annual cost report in the 
reporting year of acquisition or disposal.  The incremental 
increase in the nursing facility's rental rate resulting from 
this annual adjustment as determined under Minnesota Rules, 
parts 9549.0010 to 9549.0080, and this section shall be added to 
the nursing facility's property-related payment rate for the 
rate year following the reporting year.  
    Sec. 101.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 19.  [REFINANCING INCENTIVE.] (a) A nursing facility 
that refinances debt after May 30, 1992, in order to save in 
interest expense payments as determined in clauses (1) to (5) 
may be eligible for the refinancing incentive under this 
subdivision.  To be eligible for the refinancing incentive, a 
nursing facility must notify the commissioner in writing of such 
a refinancing within 60 days following the date on which the 
refinancing occurs.  If the nursing facility meets these 
conditions, the commissioner shall determine the refinancing 
incentive as in clauses (1) to (5).  
    (1) Compute the aggregate amount of interest expense, 
including amortized issuance and financing costs, remaining on 
the debt to be refinanced, and divide this amount by the number 
of years remaining for the term of that debt. 
    (2) Compute the aggregate amount of interest expense, 
including amortized issuance and financing costs, for the new 
debt, and divide this amount by the number of years for the term 
of that debt. 
    (3) Subtract the amount in clause (2) from the amount in 
clause (1), and multiply the amount, if positive, by .5. 
    (4) The amount in clause (3) shall be divided by the 
nursing facility's occupancy factor under subdivision 3f, 
paragraph (c). 
    (5) The per diem amount in clause (4) shall be deducted 
from the nursing facility's property-related payment rate for 
three full rate years following the rate year in which the 
refinancing occurs.  For the fourth full rate year following the 
rate year in which the refinancing occurs, and each rate year 
thereafter, the per diem amount in clause (4) shall again be 
deducted from the nursing facility's property-related payment 
rate. 
    (b) An increase in a nursing facility's debt for costs in 
subdivision 17, paragraph (b), clause (2), including the cost of 
refinancing the issuance or financing costs of the debt 
refinanced resulting from refinancing that meets the conditions 
of this section shall be allowed, notwithstanding Minnesota 
Rules, part 9549.0060, subpart 5, item A, subitem (6).  
    (c) The proceeds of refinancing may not be used for the 
purpose of withdrawing equity from the nursing facility. 
    (d) Sale of a nursing facility under subdivision 14 shall 
terminate the payment of the incentive payments under this 
subdivision effective the date provided in subdivision 14, 
paragraph (f), for the sale, and the full amount of the 
refinancing incentive in paragraph (a) shall be implemented. 
    (e) If a nursing facility eligible under this subdivision 
fails to notify the commissioner as required, the commissioner 
shall determine the full amount of the refinancing incentive in 
paragraph (a), and shall deduct one-half that amount from the 
nursing facility's property-related payment rate effective the 
first day of the month following the month in which the 
refinancing is completed.  For the next three full rate years, 
the commissioner shall deduct one-half the amount in paragraph 
(a), clause (5).  The remaining per diem amount shall be 
deducted in each rate year thereafter. 
    (f) The commissioner shall reestablish the nursing 
facility's rental rate under Minnesota Rules, parts 9549.0010 to 
9549.0080, and this section following the refinancing using the 
new debt and interest expense information for the purpose of 
measuring future incremental rental increases. 
    Sec. 102.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 20.  [SPECIAL PROPERTY RATE SETTING.] For rate 
periods beginning on October 1, 1992, and for rate years 
beginning after June 30, 1993, the property-related payment rate 
for a nursing facility approved for total replacement under the 
moratorium exception process in section 144A.073 through an 
addition to another nursing facility shall have its 
property-related rate under subdivision 13 recalculated using 
the greater of actual resident days or 80 percent of capacity 
days.  This rate shall apply until the nursing facility is 
replaced or until the moratorium exception authority lapses, 
whichever is sooner. 
    Sec. 103.  Minnesota Statutes 1990, section 256B.431, is 
amended by adding a subdivision to read: 
    Subd. 21.  [INDEXING THRESHHOLDS.] Beginning January 1, 
1993, and each January 1 thereafter, the commissioner shall 
annually update the dollar threshholds in subdivision 15, 
paragraph (d), subdivisions 16 and 17, and in section 144A.071, 
subdivision 2, and subdivision 3, clauses (h) and (p), by the 
inflation index referenced in subdivision 3f, paragraph (a). 
    Sec. 104.  Minnesota Statutes 1990, section 256B.432, is 
amended by adding a subdivision to read: 
    Subd. 7.  [RECEIVERSHIPS.] This section does not apply to 
payment rates determined under sections 245A.12, 245A.13, and 
256B.495, except that any additional directly identified costs 
associated with the department of human services' or the 
department of health's managing agent under a receivership 
agreement must be allocated to the facility under receivership, 
and are nonallowable costs to the managing agent on the 
facility's cost reports. 
    Sec. 105.  Minnesota Statutes 1990, section 256B.433, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SETTING PAYMENT; MONITORING USE OF THERAPY 
SERVICES.] The commissioner shall promulgate rules pursuant to 
the administrative procedure act to set the amount and method of 
payment for ancillary materials and services provided to 
recipients residing in nursing homes.  Payment for materials and 
services may be made to either the nursing home in the operating 
cost per diem, to the vendor of ancillary services pursuant to 
Minnesota Rules, parts 9500.0750 to 9500.1080 9505.0170 to 
9505.0475 or to a nursing home pursuant to Minnesota Rules, 
parts 9500.0750 to 9500.1080 9505.0170 to 9505.0475.  Payment 
for the same or similar service to a recipient shall not be made 
to both the nursing home and the vendor.  The commissioner shall 
ensure the avoidance of double payments through audits and 
adjustments to the nursing home's annual cost report as required 
by section 256B.47, and that charges and arrangements for 
ancillary materials and services are cost effective and as would 
be incurred by a prudent and cost-conscious buyer.  Therapy 
services provided to a recipient must be medically necessary and 
appropriate to the medical condition of the recipient.  If the 
vendor, nursing home, or ordering physician cannot provide 
adequate medical necessity justification, as determined by the 
commissioner, in consultation with an advisory task force that 
meets the requirements of section 256B.064, subdivision 1a, the 
commissioner may recover or disallow the payment for the 
services and may require prior authorization for therapy 
services as a condition of payment or may impose administrative 
sanctions to limit the vendor, nursing home, or ordering 
physician's participation in the medical assistance program.  If 
the provider number of a nursing home is used to bill services 
provided by a vendor of therapy services that is not related to 
the nursing home by ownership, control, affiliation, or 
employment status, no withholding of payment shall be imposed 
against the nursing home for services not medically necessary 
except for funds due the unrelated vendor of therapy services as 
provided in subdivision 3, paragraph (c).  For the purpose of 
this subdivision, no monetary recovery may be imposed against 
the nursing home for funds paid to the unrelated vendor of 
therapy services as provided in subdivision 3, paragraph (c), 
for services not medically necessary.  For purposes of this 
section and section 256B.47, therapy includes physical therapy, 
occupational therapy, speech therapy, audiology, and mental 
health services that are covered services according to Minnesota 
Rules, parts 9505.0170 to 9505.0475, and that could be 
reimbursed separately from the nursing home per diem. 
    Sec. 106.  Minnesota Statutes 1990, section 256B.433, 
subdivision 2, is amended to read: 
    Subd. 2.  [CERTIFICATION THAT TREATMENT IS APPROPRIATE.] 
The physical therapist, occupational therapist, speech 
therapist, mental health professional, or audiologist who 
provides or supervises the provision of therapy services, other 
than an initial evaluation, to a medical assistance recipient 
must certify in writing that the therapy's nature, scope, 
duration, and intensity are appropriate to the medical condition 
of the recipient every 30 days.  The therapist's statement of 
certification must be maintained in the recipient's medical 
record together with the specific orders by the physician and 
the treatment plan.  If the recipient's medical record does not 
include these documents, the commissioner may recover or 
disallow the payment for such services.  If the therapist 
determines that the therapy's nature, scope, duration, or 
intensity is not appropriate to the medical condition of the 
recipient, the therapist must provide a statement to that effect 
in writing to the nursing home for inclusion in the recipient's 
medical record.  The commissioner shall utilize a peer review 
program that meets the requirements of section 256B.064, 
subdivision 1a, to make recommendations regarding the medical 
necessity of services provided.  
    Sec. 107.  Minnesota Statutes 1990, section 256B.433, 
subdivision 3, is amended to read: 
    Subd. 3.  [SEPARATE BILLINGS FOR THERAPY SERVICES.] Until 
new procedures are developed under subdivision 4, payment for 
therapy services provided to nursing home residents that are 
billed separate from nursing home's payment rate or according to 
Minnesota Rules, parts 9500.0750 to 9500.1080 9505.0170 to 
9505.0475, shall be subject to the following requirements:  
    (a) The practitioner invoice must include, in a format 
specified by the commissioner, the provider number of the 
nursing home where the medical assistance recipient resides 
regardless of the service setting.  
    (b) Nursing homes that are related by ownership, control, 
affiliation, or employment status to the vendor of therapy 
services shall report, in a format specified by the 
commissioner, the revenues received during the reporting year 
for therapy services provided to residents of the nursing home.  
For rate years beginning on or after July 1, 1988, the 
commissioner shall offset the revenues received during the 
reporting year for therapy services provided to residents of the 
nursing home to the total payment rate of the nursing home by 
dividing the amount of offset by the nursing home's actual 
resident days.  Except as specified in paragraphs (d) and (f), 
the amount of offset shall be the revenue in excess of 108 
percent of the cost removed from the cost report resulting from 
the requirement of the commissioner to ensure the avoidance of 
double payments as determined by section 256B.47.  Therapy 
revenues that are specific to mental health services shall be 
subject to this paragraph for rate years beginning after June 
30, 1993.  In establishing a new base period for the purpose of 
setting operating cost payment rate limits and rates, the 
commissioner shall not include the revenues offset in accordance 
with this section.  
    (c) For rate years beginning on or after July 1, 1987, 
nursing homes shall limit charges in total to vendors of therapy 
services for renting space, equipment, or obtaining other 
services during the rate year to 108 percent of the annualized 
cost removed from the reporting year cost report resulting from 
the requirement of the commissioner to ensure the avoidance of 
double payments as determined by section 256B.47.  If the 
arrangement for therapy services is changed so that a nursing 
home is subject to this paragraph instead of paragraph (b), the 
cost that is used to determine rent must be adjusted to exclude 
the annualized costs for therapy services that are not provided 
in the rate year.  The maximum charges to the vendors shall be 
based on the commissioner's determination of annualized cost and 
may be subsequently adjusted upon resolution of appeals.  Mental 
health services shall be subject to this paragraph for rate 
years beginning after June 30, 1993. 
    (d) The commissioner shall require reporting of all 
revenues relating to the provision of therapy services and shall 
establish a therapy cost, as determined by section 256B.47, to 
revenue ratio for the reporting year ending in 1986.  For 
subsequent reporting years, the ratio may increase five 
percentage points in total until a new base year is established 
under paragraph (e).  Increases in excess of five percentage 
points may be allowed if adequate justification is provided to 
and accepted by the commissioner.  Unless an exception is 
allowed by the commissioner, the amount of offset in paragraph 
(b) is the greater of the amount determined in paragraph (b) or 
the amount of offset that is imputed based on one minus the 
lesser of (1) the actual reporting year ratio or (2) the base 
reporting year ratio increased by five percentage points, 
multiplied by the revenues. 
     (e) The commissioner may establish a new reporting year 
base for determining the cost to revenue ratio. 
     (f) If the arrangement for therapy services is changed so 
that a nursing home is subject to the provisions of paragraph 
(b) instead of paragraph (c), an average cost to revenue ratio 
based on the ratios of nursing homes that are subject to the 
provisions of paragraph (b) shall be imputed for paragraph (d). 
     (g) This section does not allow unrelated nursing homes to 
reorganize related organization therapy services and provide 
services among themselves to avoid offsetting revenues.  Nursing 
homes that are found to be in violation of this provision shall 
be subject to the penalty requirements of section 256B.48, 
subdivision 1, paragraph (f).  
    Sec. 108.  Minnesota Statutes 1990, section 256B.48, 
subdivision 1b, is amended 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, 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.  Nursing homes seeking continued medical 
assistance payments under this subdivision shall make the 
reports required under subdivision 2, except that on or after 
December 31, 1985, the financial statements required need not be 
audited by or contain the opinion of a certified public 
accountant or licensed public accountant, but need only be 
reviewed by a certified public accountant or licensed public 
accountant.  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.  Between October 1, 1992, and July 1, 1993, a facility 
governed by this subdivision may elect to resume full 
participation in the medical assistance program by agreeing to 
comply with all of the requirements of the medical assistance 
program, including the rate equalization law in subdivision 1, 
paragraph (a), and all other requirements established in law or 
rule, and to resume intake of new medical assistance recipients. 
    Sec. 109.  Minnesota Statutes 1990, section 256B.48, 
subdivision 2, is amended to read: 
    Subd. 2.  [REPORTING REQUIREMENTS.] No later than December 
31 of each year, a skilled nursing facility or intermediate care 
facility, including boarding care facilities, which receives 
medical assistance payments or other reimbursements from the 
state agency shall:  
    (a) Provide the state agency with a copy of its audited 
financial statements.  The audited financial statements must 
include a balance sheet, income statement, statement of the rate 
or rates charged to private paying residents, statement of 
retained earnings, statement of cash flows, notes to the 
financial statements, audited applicable supplemental 
information, and the certified public accountant's or licensed 
public accountant's opinion.  The examination by the certified 
public accountant or licensed public accountant shall be 
conducted in accordance with generally accepted auditing 
standards as promulgated and adopted by the American Institute 
of Certified Public Accountants; 
     (b) Provide the state agency with a statement of ownership 
for the facility; 
     (c) Provide the state agency with separate, audited 
financial statements as specified in clause (a) for every other 
facility owned in whole or part by an individual or entity which 
has an ownership interest in the facility; 
     (d) Upon request, provide the state agency with separate, 
audited financial statements as specified in clause (a) for 
every organization with which the facility conducts business and 
which is owned in whole or in part by an individual or entity 
which has an ownership interest in the facility; 
     (e) Provide the state agency with copies of leases, 
purchase agreements, and other documents related to the lease or 
purchase of the nursing facility; 
     (f) Upon request, provide the state agency with copies of 
leases, purchase agreements, and other documents related to the 
acquisition of equipment, goods, and services which are claimed 
as allowable costs; and 
    (g) Permit access by the state agency to the certified 
public accountant's and licensed public accountant's audit 
workpapers which support the audited financial statements 
required in clauses (a), (c), and (d).  
    Documents or information provided to the state agency 
pursuant to this subdivision shall be public.  If the 
requirements of clauses (a) to (g) are not met, the 
reimbursement rate may be reduced to 80 percent of the rate in 
effect on the first day of the fourth calendar month after the 
close of the reporting year, and the reduction shall continue 
until the requirements are met.  
    Both nursing facilities and intermediate care facilities 
for the mentally retarded must maintain statistical and 
accounting records in sufficient detail to support information 
contained in the facility's cost report for at least five years, 
including the year following the submission of the cost report.  
For computerized accounting systems, the records must include 
copies of electronically generated media such as magnetic discs 
and tapes. 
    Sec. 110.  Minnesota Statutes 1990, section 256B.48, 
subdivision 3, is amended to read: 
    Subd. 3.  [INCOMPLETE OR INACCURATE REPORTS.] The 
commissioner may reject any annual cost report filed by a 
nursing home pursuant to this chapter if the commissioner 
determines that the report or the information required in 
subdivision 2, clause (a) has been filed in a form that is 
incomplete or inaccurate.  In the event that a report is 
rejected pursuant to this subdivision, the commissioner shall 
reduce the reimbursement rate to a nursing home to 80 percent of 
its most recently established rate until the information is 
completely and accurately filed.  The reinstatement of the total 
reimbursement rate is retroactive. 
    Sec. 111.  Minnesota Statutes 1990, section 256B.48, is 
amended by adding a subdivision to read: 
     Subd. 3a.  [AUDIT ADJUSTMENTS.] If the commissioner 
requests supporting documentation during a field audit for an 
item of cost reported by a long-term care facility, and the 
long-term care facility's response does not adequately document 
the item of cost, the commissioner may make reasoned assumptions 
considered appropriate in the absence of the requested 
documentation to reasonably establish a payment rate rather than 
disallow the entire item of cost.  This provision shall not 
diminish the long-term care facility's appeal rights. 
    Sec. 112.  Minnesota Statutes 1990, section 256B.48, 
subdivision 4, is amended to read: 
    Subd. 4.  [EXTENSIONS.] The commissioner may grant up to a 
15-day extension of the reporting deadline to a nursing home for 
good cause.  To receive such an extension, a nursing home shall 
submit a written request by December 1.  The commissioner will 
notify the nursing home of the decision by December 15.  Between 
December 1 and December 31, the nursing facility may request a 
reporting extension for good cause by telephone and followed by 
a written request. 
    Sec. 113.  Minnesota Statutes 1990, section 256B.48, is 
amended by adding a subdivision to read: 
    Subd. 9.  [MEDICAL ASSISTANCE PARTICIPATION FOR CERTAIN 
FACILITIES.] An agreement entered into between a nursing 
facility and the commissioner of human services that limits the 
number of residents that will be reimbursed under the medical 
assistance program as a condition of allowing additional beds to 
be certified under section 144A.071, subdivision 3a, terminates 
effective October 1, 1992. 
    Sec. 114.  Minnesota Statutes 1991 Supplement, section 
256B.49, subdivision 4, is amended to read: 
    Subd. 4.  [INFLATION ADJUSTMENT.] For the biennium ending 
June 30, 1993, the commissioner of human services shall not 
provide an annual inflation adjustment for home and 
community-based waivered services, except as provided in section 
256B.491, subdivision 3, and except that the commissioner shall 
provide an inflation adjustment for the community alternatives 
for disabled individuals (CADI) and community alternative care 
(CAC) waivered services programs for the fiscal year beginning 
July 1, 1991.  For fiscal years beginning after June 30, 1993, 
the commissioner of human services shall not provide automatic 
annual inflation adjustments for home- and community-based 
waivered services.  The commissioner of finance shall include, 
as a budget change request in each biennial detailed expenditure 
budget submitted to the legislature under section 16A.11, annual 
adjustments in reimbursement rates for each home- and 
community-based waivered service program.  
    Sec. 115.  Minnesota Statutes 1990, section 256B.495, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PAYMENT OF RECEIVERSHIP FEES.] The 
commissioner in consultation with the commissioner of health may 
establish a receivership fee payment that exceeds a long-term 
care nursing facility payment rate when the commissioner of 
health determines a long-term care nursing facility is subject 
to the receivership provisions under section 144A.14 or 
144A.15 or the commissioner of human services determines that a 
facility is subject to the receivership under section 245A.12 or 
245A.13.  In establishing the receivership fee payment, the 
commissioner must reduce the receiver's requested receivership 
fee by amounts that the commissioner determines are included in 
the long-term care nursing facility's payment rate and that can 
be used to cover part or all of the receivership fee.  Amounts 
that can be used to reduce the receivership fee shall be 
determined by reallocating facility staff or costs that were 
formerly paid by the long-term care nursing facility before the 
receivership and are no longer required to be paid.  The amounts 
may include any efficiency incentive, allowance, and other 
amounts not specifically required to be paid for expenditures of 
the long-term care nursing facility.  
    If the receivership fee cannot be covered by amounts in the 
long-term care nursing facility's payment rate, a receivership 
fee payment shall be set according to paragraphs (a) and (b) and 
payment shall be according to paragraphs (c) to (e).  
    (a) The receivership fee per diem shall be determined by 
dividing the annual receivership fee payment by the long-term 
care nursing facility's resident days from the most recent cost 
report for which the commissioner has established a payment rate 
or the estimated resident days in the projected receivership fee 
period. 
    (b) The receivership fee per diem shall be added to the 
long-term care nursing facility's payment rate.  
    (c) Notification of the payment rate increase must meet the 
requirements of section 256B.47, subdivision 2.  
    (d) The payment rate in paragraph (b) for a nursing home 
facility shall be effective the first day of the month following 
the receiver's compliance with the notice conditions in 
paragraph (c).  The payment rate in paragraph (b) for an 
intermediate care facility for the mentally retarded shall be 
effective on the first day of the rate year in which the 
receivership fee per diem is determined.  
    (e) The commissioner may elect to make a lump sum payment 
of a portion of the receivership fee to the receiver or managing 
agent.  In this case, the commissioner and the receiver or 
managing agent shall agree to a repayment plan.  Regardless of 
whether the commissioner makes a lump sum payment under this 
paragraph, the provisions of paragraphs (a) to (d) and 
subdivision 2 also apply. 
    Sec. 116.  Minnesota Statutes 1990, section 256B.495, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [RECEIVERSHIP PAYMENT RATE ADJUSTMENT.] Upon 
receiving a recommendation from the commissioner of health for a 
review of rates under section 144A.154, the commissioner may 
grant an adjustment to the nursing home's payment rate.  The 
commissioner shall review the recommendation of the commissioner 
of health, together with the nursing home's cost report to 
determine whether or not the deficiency or need can be corrected 
or met by reallocating nursing home staff, costs, revenues, or 
other resources including any investments, efficiency 
incentives, or allowances.  If the commissioner determines that 
the deficiency cannot be corrected or the need cannot be met, 
the commissioner shall determine the payment rate adjustment by 
dividing the additional annual costs established during the 
commissioner's review by the nursing home's actual resident days 
from the most recent desk-audited cost report. 
    Sec. 117.  Minnesota Statutes 1990, section 256B.495, 
subdivision 2, is amended to read: 
    Subd. 2.  [DEDUCTION OF ADDITIONAL RECEIVERSHIP FEE 
PAYMENTS UPON TERMINATION OF RECEIVERSHIP.] If the commissioner 
has established a receivership fee per diem for a long-term care 
nursing facility in receivership under subdivision 1 or a 
payment rate adjustment under subdivision 1a, the commissioner 
must deduct the these receivership fee payments according to 
paragraphs (a) to (c). 
    (a) The total receivership fee payments shall be the 
receivership fee per diem plus the payment rate adjustment 
multiplied by the number of resident days for the period of the 
receivership fee payments.  If actual resident days for the 
receivership fee payment period are not made available within 
two weeks of the commissioner's written request, the 
commissioner shall compute the resident days by prorating the 
facility's resident days based on the number of calendar days 
from each portion of the long-term care nursing facility's 
reporting years covered by the receivership period. 
    (b) The amount determined in paragraph (a) must be divided 
by the long-term care nursing facility's resident days for the 
reporting year in which the receivership period ends. 
    (c) The per diem amount in paragraph (b) shall be 
subtracted from the long-term care nursing facility's operating 
cost payment rate for the rate year following the reporting year 
in which the receivership period ends.  This provision applies 
whether or not there is a sale or transfer of the nursing 
facility, unless the provisions of subdivision 5 apply. 
    Sec. 118.  Minnesota Statutes 1990, section 256B.495, is 
amended by adding a subdivision to read: 
    Subd. 4.  [DOWNSIZING AND CLOSING NURSING FACILITIES.] (a) 
If the nursing facility is subject to a downsizing to closure 
process during the period of receivership, the commissioner may 
reestablish the nursing facility's payment rate.  The payment 
rate shall be established based on the nursing facility's 
budgeted operating costs, the receivership property related 
costs, and the management fee costs for the receivership period 
divided by the facility's estimated resident days for the same 
period.  The commissioner of health and the commissioner shall 
make every effort to first facilitate the transfer of private 
paying residents to alternate service sites prior to the 
effective date of the payment rate.  The cost limits and the 
case mix provisions in the rate setting system shall not apply 
during the portion of the receivership period over which the 
nursing facility downsizes to closure. 
    (b) Any payment rate adjustment under this subdivision must 
meet the conditions in section 256B.47, subdivision 2, and shall 
remain in effect until the receivership ends, or until another 
date the commissioner sets. 
    Sec. 119.  Minnesota Statutes 1990, section 256B.495, is 
amended by adding a subdivision to read: 
    Subd. 5.  [SALE OR TRANSFER OF A NURSING FACILITY IN 
RECEIVERSHIP AFTER CLOSURE.] (a) Upon the subsequent sale or 
transfer of a nursing facility in receivership, the commissioner 
must recover any amounts paid through payment rate adjustments 
under subdivision 4 which exceed the normal cost of operating 
the nursing facility.  Examples of costs in excess of the normal 
cost of operating the nursing facility include the managing 
agent's fee, directly identifiable costs of the managing agent, 
bonuses paid to employees for their continued employment during 
the downsizing to closure of the nursing facility, 
prereceivership expenditures paid by the receiver, additional 
professional services such as accountants, psychologists, and 
dietitians, and other similar costs incurred by the receiver to 
complete receivership.  The buyer or transferee shall repay this 
amount to the commissioner within 60 days after the commissioner 
notifies the buyer or transferee of the obligation to repay.  
The buyer or transferee must also repay the private-pay resident 
the amount the private-pay resident paid through payment rate 
adjustment. 
    (b) If a nursing facility with payment rates subject to 
subdivision 4, paragraph (a), is later sold while the nursing 
facility is in receivership, the payment rates in effect prior 
to the receivership shall be the new owner's payment rates.  
Those payment rates shall continue to be in effect until the 
rate year following the reporting period ending on September 30 
for the new owner.  The reporting period shall, whenever 
possible, be at least five consecutive months.  If the reporting 
period is less than five months but more than three months, the 
nursing facility's resident days for the last two months of the 
reporting period must be annualized over the reporting period 
for the purpose of computing the payment rate for the rate year 
following the reporting period. 
    Sec. 120.  Minnesota Statutes 1990, section 256B.50, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [FILING AN APPEAL.] To appeal, the provider 
shall file with the commissioner a written notice of appeal; the 
appeal must be postmarked or received by the commissioner within 
60 days of the date the determination of the payment rate was 
mailed.  The notice of appeal must specify each disputed item; 
the reason for the dispute; the total dollar amount in dispute 
for each separate disallowance, allocation, or adjustment of 
each cost item or part of a cost item; the computation that the 
provider believes is correct; the authority in statute or rule 
upon which the provider relies for each disputed item; the name 
and address of the person or firm with whom contacts may be made 
regarding the appeal; and other information required by the 
commissioner.  The commissioner shall review an appeal by a 
nursing facility, if the appeal was sent by certified mail and 
postmarked prior to August 1, 1991, and would have been received 
by the commissioner within the 60-day deadline if it had not 
been delayed due to an error by the postal service. 
    Sec. 121.  Minnesota Statutes 1990, section 256B.50, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPRAISED VALUE.] (a) A nursing home may appeal 
the determination of its appraised value, as determined by the 
commissioner pursuant to section 256B.431 and rules established 
thereunder.  A written notice of appeal concerning the appraised 
value of a nursing home's real estate as established by an 
appraisal conducted after July 1, 1986, must be filed with the 
commissioner within 60 days of the date the determination was 
made and shall state the appraised value the nursing home 
believes is correct for the building, land improvements, and 
attached equipment and the name and address of the firm with 
whom contacts may be made regarding the appeal.  The appeal 
request shall include a separate appraisal report prepared by an 
independent appraiser of real estate which supports the total 
appraised value claimed by the nursing home.  The appraisal 
report shall be based on an on-site inspection of the nursing 
home's real estate using the depreciated replacement cost 
method, must be in a form comparable to that used in the 
commissioner's appraisal, and must pertain to the same time 
period covered by the appealed appraisal.  The appraisal report 
shall include information related to the training, experience, 
and qualifications of the appraiser who conducted and prepared 
the appraisal report for the nursing home.  An appeal request 
shall be deemed timely if it is postmarked or received by the 
commissioner within the time limits established for filing such 
appeal requests. 
    (b) A nursing home which has filed an appeal request prior 
to the effective date of Laws 1987, chapter 403, concerning the 
appraised value of its real estate as established by an 
appraisal conducted before July 1, 1986, must submit to the 
commissioner the information described under paragraph (a) 
within 60 days of the effective date of Laws 1987, chapter 403, 
in order to preserve the appeal. 
    (c) An appeal request which has been filed pursuant to the 
provisions of paragraph (a) or (b) shall be finally resolved 
through an agreement entered into by and between the 
commissioner and the nursing home or by the determination of an 
independent appraiser based upon an on-site inspection of the 
nursing home's real estate using the depreciated replacement 
cost method, in a form comparable to that used in the 
commissioner's appraisal, and pertaining to the same time period 
covered by the appealed appraisal.  The appraiser shall be 
selected by the commissioner and the nursing home by alternately 
striking names from a list of appraisers approved for state 
contracts by the commissioner of administration.  The appraiser 
shall make assurances to the satisfaction of the commissioner 
and the nursing home that the appraiser is experienced in the 
use of the depreciated cost method of appraisals and that the 
appraiser is free of any personal, political, or economic 
conflict of interest that may impair the ability to function in 
a fair and objective manner.  The commissioner shall pay costs 
of the appraiser through a negotiated rate for services of the 
appraiser. 
    (d) The decision of the appraiser is final and is not 
appealable.  Exclusive jurisdiction for appeals of the appraised 
value of nursing homes lies with the procedures set out in this 
subdivision.  No court of law shall possess subject matter 
jurisdiction to hear appeals of appraised value determinations 
of nursing homes. 
    Sec. 122.  Minnesota Statutes 1990, section 256B.501, 
subdivision 3c, is amended to read: 
    Subd. 3c.  [COMPOSITE FORECASTED INDEX.] For rate years 
beginning on or after October 1, 1988, the commissioner shall 
establish a statewide composite forecasted index to take into 
account economic trends and conditions between the midpoint of 
the facility's reporting year and the midpoint of the rate year 
following the reporting year.  The statewide composite index 
must incorporate the forecast by Data Resources, Inc. of 
increases in the average hourly earnings of nursing and personal 
care workers indexed in Standard Industrial Code 805 in 
"Employment and Earnings," published by the Bureau of Labor 
Statistics, United States Department of Labor.  This portion of 
the index must be weighted annually by the proportion of total 
allowable salaries and wages to the total allowable operating 
costs in the program, maintenance, and administrative operating 
cost categories for all facilities. 
      For adjustments to the other operating costs in the 
program, maintenance, and administrative operating cost 
categories, the statewide index must incorporate the Data 
Resources, Inc. forecast for increases in the national CPI-U.  
This portion of the index must be weighted annually by the 
proportion of total allowable other operating costs to the total 
allowable operating costs in the program, maintenance, and 
administrative operating cost categories for all facilities.  
The commissioner shall use the indices as forecasted by Data 
Resources, Inc., in the fourth quarter of the reporting year. 
    For rate years beginning on or after October 1, 1990, the 
commissioner shall index a facility's allowable operating costs 
in the program, maintenance, and administrative operating cost 
categories by using Data Resources, Inc., forecast for change in 
the Consumer Price Index-All Items (U.S. city average) (CPI-U).  
The commissioner shall use the indices as forecasted by Data 
Resources, Inc., in the first quarter of the calendar year in 
which the rate year begins.  For fiscal years beginning after 
June 30, 1993, the commissioner shall not provide automatic 
inflation adjustments for intermediate care facilities for 
persons with mental retardation.  The commissioner of finance 
shall include annual inflation adjustments in operating costs 
for intermediate care facilities for persons with mental 
retardation and related conditions as a budget change request in 
each biennial detailed expenditure budget submitted to the 
legislature under section 16A.11. 
    Sec. 123.  Minnesota Statutes 1991 Supplement, section 
256B.74, subdivision 1, is amended to read: 
    Subdivision 1.  [HOSPITAL REIMBURSEMENT.] (a) Effective for 
admissions occurring on or after July 1, 1991, the commissioner 
shall make an indigent care payment to Minnesota and local trade 
area hospitals except facilities of the federal Indian Health 
Service and regional treatment centers, in addition to all other 
payment to hospitals for inpatient services.  The indigent care 
payment shall be ten percent of the amount of medical assistance 
payments issued to that provider for inpatient services in a 
given calendar quarter or month, excluding indigent care 
payments paid under this section, divided by the number of 
related admissions, or patient days if applicable, and 
multiplying the result by 111 percent.  The indigent care 
payment is added to each admission, or patient day if 
applicable, occurring (1) in the second calendar quarter 
beginning after the quarter on which the September 15, 1991, 
indigent care payment amount is based and (2) in the month 
beginning six months after the month on which the subsequent 
monthly indigent care payment amount is based.  Medicare 
crossovers are excluded from indigent care payments and from the 
payments and admissions on which the indigent care payment is 
based.  The commissioner may issue indigent care payments as 
disproportionate population adjustments for eligible hospitals. 
    (b) Effective for services rendered on or after July 1, 
1991, the commissioner shall reimburse outpatient hospital 
facility fees at 80 percent of calendar year 1990 submitted 
charges, not to exceed the Medicare upper payment limit.  
Services excepted from this payment methodology are emergency 
room facility fees, clinic facility fees, and those services for 
which there is a federal maximum allowable payment. 
    Sec. 124.  Minnesota Statutes 1991 Supplement, section 
256B.74, subdivision 3, is amended to read: 
    Subd. 3.  [NURSING FACILITY REIMBURSEMENT.] For rate years 
beginning on or after July 1, 1991, the commissioner shall 
reimburse nursing facilities participating in the medical 
assistance program as follows: 
    (1) a capital allowance of $1.44 per resident day shall be 
paid.  For a licensed provider with an operating lease on the 
nursing facility, the capital equipment allowance shall not be 
the property of the lessor but shall be the property of the 
licensed provider for the duration of the operating lease or any 
renewal or extension of the operating lease; and 
    (2) the maximum efficiency incentive per diem payment 
established annually under section 256B.431, subdivision 2b, 
paragraph (d), shall be increased to $2.10 effective July 1, 
1991, and $2.20 effective July 1, 1992, and shall be indexed for 
inflation annually beginning July 1, 1993, using Data Resources, 
Inc., forecast for change in the nursing home market basket. 
    Sec. 125.  Minnesota Statutes 1990, section 256D.02, is 
amended by adding a subdivision to read: 
    Subd. 18.  [GROUP HEALTH PLAN.] "Group health plan" means 
any plan of, or contributed to by, an employer, including a 
self-insured plan, which provides health care directly or 
otherwise to the employer's employees, former employees, or the 
families of the employees or former employees, and includes 
continuation coverage pursuant to title XXII of the Public 
Health Service Act, section 4980B of the Internal Revenue Code 
of 1986, or title VI of the Employee Retirement Income Security 
Act of 1974.  
    Sec. 126.  Minnesota Statutes 1990, section 256D.02, is 
amended by adding a subdivision to read: 
    Subd. 19.  [COST-EFFECTIVE.] "Cost-effective" means that 
the amount paid by the state for premiums, coinsurance, 
deductibles, other cost-sharing obligations under a health 
insurance plan, and other administrative costs is likely to be 
less than the amount paid for an equivalent set of services by 
general assistance medical care. 
    Sec. 127.  Minnesota Statutes 1991 Supplement, section 
256D.03, subdivision 3, is amended to read: 
    Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
(a) General assistance medical care may be paid for any 
person who is age 18 or older and who is not eligible for 
medical assistance under chapter 256B, including eligibility for 
medical assistance based on a spend-down of excess income 
according to section 256B.056, subdivision 5, and: 
    (1) who is receiving assistance under section 256D.05 or 
256D.051; or 
    (2)(i) who is a resident of Minnesota; and whose equity in 
assets is not in excess of $1,000 per assistance unit.  Exempt 
assets, the reduction of excess assets, and the waiver of excess 
assets must conform to the medical assistance program in chapter 
256B, with the following exception:  the maximum amount of 
undistributed funds in a trust that could be distributed to or 
on behalf of the beneficiary by the trustee, assuming the full 
exercise of the trustee's discretion under the terms of the 
trust, must be applied toward the asset maximum; and 
    (ii) who has countable income not in excess of the 
assistance standards established in section 256B.056, 
subdivision 4, or whose excess income is spent down pursuant to 
section 256B.056, subdivision 5, using a six-month budget 
period, except that a one-month budget period must be used for 
recipients residing in a long-term care facility.  The method 
for calculating earned income disregards and deductions for a 
person who resides with a dependent child under age 21 shall be 
as specified in section 256.74, subdivision 1.  However, if a 
disregard of $30 and one-third of the remainder described in 
section 256.74, subdivision 1, clause (4), has been applied to 
the wage earner's income, the disregard shall not be applied 
again until the wage earner's income has not been considered in 
an eligibility determination for general assistance, general 
assistance medical care, medical assistance, or aid to families 
with dependent children for 12 consecutive months.  The earned 
income and work expense deductions for a person who does not 
reside with a dependent child under age 21 shall be the same as 
the method used to determine eligibility for a person under 
section 256D.06, subdivision 1, except the disregard of the 
first $50 of earned income is not allowed; or 
     (3) who would be eligible for medical assistance except 
that the person resides in a facility that is determined by the 
commissioner or the federal health care financing administration 
to be an institution for mental diseases. 
     (b) Eligibility is available for the month of application, 
and for three months prior to application if the person was 
eligible in those prior months.  A redetermination of 
eligibility must occur every 12 months. 
     (c) General assistance medical care is not available for a 
person in a correctional facility unless the person is detained 
by law for less than one year in a county correctional or 
detention facility as a person accused or convicted of a crime, 
or admitted as an inpatient to a hospital on a criminal hold 
order, and the person is a recipient of general assistance 
medical care at the time the person is detained by law or 
admitted on a criminal hold order and as long as the person 
continues to meet other eligibility requirements of this 
subdivision.  
      (d) General assistance medical care is not available for 
applicants or recipients who do not cooperate with the county 
agency to meet the requirements of medical assistance. 
      (e) In determining the amount of assets of an individual, 
there shall be included any asset or interest in an asset, 
including an asset excluded under paragraph (a), that was given 
away, sold, or disposed of for less than fair market value 
within the 30 months preceding application for general 
assistance medical care or during the period of eligibility.  
Any transfer described in this paragraph shall be presumed to 
have been for the purpose of establishing eligibility for 
general assistance medical care, unless the individual furnishes 
convincing evidence to establish that the transaction was 
exclusively for another purpose.  For purposes of this 
paragraph, the value of the asset or interest shall be the fair 
market value at the time it was given away, sold, or disposed 
of, less the amount of compensation received.  For any 
uncompensated transfer, the number of months of ineligibility, 
including partial months, shall be calculated by dividing the 
uncompensated transfer amount by the average monthly per person 
payment made by the medical assistance program to skilled 
nursing facilities for the previous calendar year.  The 
individual shall remain ineligible until this fixed period has 
expired.  The period of ineligibility may exceed 30 months, and 
a reapplication for benefits after 30 months from the date of 
the transfer shall not result in eligibility unless and until 
the period of ineligibility has expired.  The period of 
ineligibility begins in the month the transfer was reported to 
the county agency, or if the transfer was not reported, the 
month in which the county agency discovered the transfer, 
whichever comes first.  For applicants, the period of 
ineligibility begins on the date of the first approved 
application. 
    Sec. 128.  Minnesota Statutes 1990, section 256D.03, is 
amended by adding a subdivision to read: 
    Subd. 3b.  [COOPERATION.] General assistance medical care 
applicants and recipients must cooperate by providing 
information about any group health plan in which they may be 
eligible to enroll.  They must cooperate with the state and 
local agency in determining if the plan is cost-effective.  If 
the plan is determined cost-effective and the premium will be 
paid by the state or local agency or is available at no cost to 
the person, they must enroll or remain enrolled in the group 
health plan.  Cost-effective insurance premiums approved for 
payment by the state agency and paid by the local agency are 
eligible for reimbursement according to subdivision 6.  
    Sec. 129.  [501B.89] [EXCULPATORY CLAUSES LINKED TO PUBLIC 
ASSISTANCE ELIGIBILITY UNENFORCEABLE.] 
    A provision in a trust created after July 1, 1992, 
purporting to make assets or income unavailable to a beneficiary 
if the beneficiary applies for or is determined eligible for 
public assistance or a public health care program is 
unenforceable. 
    Sec. 130.  [HOSPITAL OUTPATIENT REIMBURSEMENT.] 
    For outpatient hospital facility fee payments for services 
rendered on or after October 1, 1992, the commissioner of human 
services shall pay the lower of (1) submitted charge, or (2) 32 
percent above the rate in effect on June 30, 1992, except for 
those services for which there is a federal maximum allowable 
payment.  Services for which there is a federal maximum 
allowable payment shall be paid at the lower of (1) submitted 
charge, or (2) the federal maximum allowable payment.  Total 
aggregate payment for outpatient hospital facility fee services 
shall not exceed the Medicare upper limit.  If it is determined 
that a provision of this section conflicts with existing or 
future requirements of the United States government with respect 
to federal financial participation in medical assistance, the 
federal requirements prevail.  The commissioner may, in the 
aggregate, prospectively reduce payment rates to avoid reduced 
federal financial participation resulting from rates that are in 
excess of the Medicare upper limitations. 
    Sec. 131.  [PHYSICIAN AND DENTAL REIMBURSEMENT.] 
    (a) The physician reimbursement increase provided in 
Minnesota Statutes, section 256B.74, subdivision 2, shall not be 
implemented.  Effective for services rendered on or after 
October 1, 1992, the commissioner shall make payments for 
physician services as follows: 
    (1) payment for level one Health Care Finance 
Administration's common procedural coding system (HCPCS) codes 
titled "office and other outpatient services," "preventive 
medicine new and established patient," "delivery, antepartum, 
and postpartum care," "critical care," caesarean delivery and 
pharmacologic management provided to psychiatric patients, and 
HCPCS level three codes for enhanced services for prenatal high 
risk, shall be paid at the lower of (i) submitted charges, or 
(ii) 25 percent above the rate in effect on June 30, 1992.  If 
the rate on any procedure code within these categories is 
different than the rate that would have been paid under the 
methodology in Minnesota Statutes, section 256B.74, subdivision 
2, then the larger rate shall be paid; 
    (2) payments for all other services shall be paid at the 
lower of (i) submitted charges, or (ii) 15.4 percent above the 
rate in effect on June 30, 1992; and 
    (3) all physician rates shall be converted from the 50th 
percentile of 1982 to the 50th percentile of 1989, less the 
percent in aggregate necessary to equal the above increases. 
    (b) The dental reimbursement increase provided in Minnesota 
Statutes, section 256B.74, subdivision 5, shall not be 
implemented.  Effective for services rendered on or after 
October 1, 1992, the commissioner shall make payments for dental 
services as follows: 
    (1) dental services shall be paid at the lower of (i) 
submitted charges, or (ii) 25 percent above the rate in effect 
on June 30, 1992; and 
    (2) dental rates shall be converted from the 50th 
percentile of 1982 to the 50th percentile of 1989, less the 
percent in aggregate necessary to equal the above increases. 
    Sec. 132.  [HEALTH MAINTENANCE ORGANIZATION REIMBURSEMENT.] 
    Effective October 1, 1992, the commissioner shall adjust 
rates paid to a health maintenance organization under contract 
with the commissioner to reflect rate increases provided in 
Minnesota Statutes, section 256.969, subdivisions 1, 9, and 20, 
and sections 130 and 131.  The adjustment to reflect increases 
under section 256.969, subdivision 9, must be made on a 
nondiscounted basis. 
    Sec. 133.  [COMMISSIONER'S DUTIES.] 
    The commissioner of human services shall report to the 
legislature quarterly on the first day of January, April, July, 
and October regarding the provider surcharge program.  The 
report shall include information on total billings, total 
collections, and administrative expenditures.  The report on 
January 1, 1993, shall include information on all surcharge 
billings, collections, federal matching payments received, 
efforts to collect unpaid amounts, and administrative costs 
pertaining to the surcharge program in effect from July 1, 1991, 
to September 30, 1992.  The surcharge shall be adjusted by 
inflationary and caseload changes in future bienniums to 
maintain reimbursement of health care providers in accordance 
with the requirements of the state and federal laws governing 
the medical assistance program, including the requirements of 
the Medicaid moratorium amendments of 1991 found in Public Law 
No. 102-234.  The commissioner shall request the Minnesota 
congressional delegation to support a change in federal law that 
would prohibit federal disallowances for any state that makes a 
good faith effort to comply with Public Law Number 102-234 by 
enacting conforming legislation prior to the issuance of federal 
implementing regulations. 
    Sec. 134.  [NURSING FACILITY PLANT STUDY.] 
    The commissioner of health shall study the physical 
condition of all Minnesota nursing facilities.  This study shall 
include an individual assessment of each facility to be 
performed after September 30, 1993, by one of the architectural 
firms authorized by the commissioner of health to conduct 
assessments.  To qualify for authorization, an architectural 
firm must have actual experience and prior involvement with 
nursing home construction or remodeling projects.  The 
commissioner shall select one or more architectural firms to 
conduct the individual facility assessment.  The cost of the 
assessment shall be paid by the nursing facility and shall be 
considered an allowable cost under Minnesota Rules, parts 
9549.0040, subpart 9, and 9549.0061, for rate years beginning 
after June 30, 1995.  Prior to beginning the individual 
assessments, the commissioner shall convene a special task force 
to develop recommendations for the commissioner concerning the 
standards and criteria by which the individual assessments must 
be conducted.  The recommendation shall be provided to the 
commissioner by the task force by July 1, 1993.  The criteria 
and standards for the study shall be established by the 
commissioner by September 30, 1993.  
    Sec. 135.  [REPEALER; ASSET LIMITATIONS FOR VETERANS.] 
    Minnesota Statutes 1990, section 256B.056, subdivision 3a, 
is repealed. 
    Minnesota Statutes 1991 Supplement, sections 144A.071, 
subdivision 3a; 256.9657, subdivision 5; 256.969, subdivision 7; 
and 256B.74, subdivisions 8 and 9; and Laws 1991, chapter 292, 
article 4, section 77, excluding subdivision 9, are repealed 
effective October 1, 1992.  Laws 1991, chapter 292, article 4, 
section 77, subdivision 9, is repealed the day following final 
enactment. 
    Sec. 136.  [REVISOR'S INSTRUCTIONS.] 
    The revisor of statutes shall change the headnote in 
Minnesota Statutes, section 256B.495, from "LONG-TERM CARE 
RECEIVERSHIP FEES" to "NURSING FACILITY RECEIVERSHIP FEES."  The 
revisor shall change the term "nursing home" and similar terms 
to "nursing facility" and similar terms in Minnesota Statutes, 
sections 256B.41, 256B.411, 256B.421, 256B.431, 256B.432, 
256B.433, 256B.47, 256B.48, and 256B.50. 
    Sec. 137.  [EFFECTIVE DATES.] 
    Section 39 is effective January 1, 1993.  
    Section 60 is effective the day following final enactment. 
    Sections 9, 15, 16, 18 to 21, 25, 27, 46, 82, 123, and 124 
are effective October 1, 1992. 
    Section 42 is effective July 1, 1992, and applies to 
transfers or payments made on or after that date. 
    Section 130 is not effective in the event that the health 
right program is not enacted into law prior to October 1, 1992.  
In the event the health right program is not enacted into law 
prior to October 1, 1992, the percentage increase in 
reimbursement rates scheduled to be effective October 1, 1992, 
and provided for in section 131 shall not be effective, and the 
commissioner shall implement, effective October 1, 1992, the 
rate increases provided in Minnesota Statutes, section 256B.74, 
subdivision 2 and 5.  
    Section 28 is effective for admissions occurring on or 
after October 1, 1992. 
     The provisions of section 44 relating to prior 
authorization of drugs are effective for all drugs added to the 
list of drugs requiring prior authorization on or after July 1, 
1992. 

                               ARTICLE 8 

                          ASSISTANCE PAYMENTS 
    Section 1.  [149.10] [CREMATION; UNCLAIMED REMAINS.] 
    Any funeral director, or other person or establishment 
licensed under this chapter, may arrange for proper disposal 
after one year of cremains unclaimed by family or next of kin. 
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
256.031, subdivision 3, is amended to read: 
    Subd. 3.  [AUTHORIZATION FOR THE DEMONSTRATION.] (a) The 
commissioner of human services, in consultation with the 
commissioners of education, finance, jobs and training, health, 
and planning, and the director of the higher education 
coordinating board, is authorized to proceed with the planning 
and designing of the Minnesota family investment plan and to 
implement the plan to test policies, methods, and cost impact on 
an experimental basis by using field trials.  The commissioner, 
under the authority in section 256.01, subdivision 2, shall 
implement the plan according to sections 256.031 to 256.0361 and 
Public Law Numbers 101-202 and 101-239, section 8015, as 
amended.  If major and unpredicted costs to the program occur, 
the commissioner may take corrective action consistent with 
Public Law Numbers 101-202 and 101-239, which may include 
termination of the program.  Before taking such corrective 
action, the commissioner shall consult with the chairs of the 
senate health and human services committee, the house health and 
human services committee, the health and human services division 
of the senate finance committee and the human resources division 
of the house appropriations committee, or, if the legislature is 
not in session, consult with the legislative advisory commission.
    (b) The field trials shall be conducted as permitted under 
federal law, for as many years as necessary, and in different 
geographical settings, to provide reliable instruction about the 
desirability of expanding the program statewide. 
    (c) The commissioner shall select the counties which shall 
serve as field trial or control comparison sites based on 
criteria which ensure reliable evaluation of the program.  
    (d) The commissioner is authorized to determine the number 
of families and characteristics of subgroups to be included in 
the evaluation.  
    (i) A family that applies for or is currently receiving 
financial assistance from aid to families with dependent 
children; family general assistance or work readiness; or food 
stamps may be tested for eligibility for aid to families with 
dependent children or family general assistance and may be 
assigned by the commissioner to an experimental a test or 
a control comparison group for the purposes of evaluating the 
family investment plan.  A family found not eligible for aid to 
families with dependent children or family general assistance 
will be tested for eligibility for the food stamp program.  If 
found eligible for the food stamp program, the commissioner may 
randomly assign the family to a test group, comparison group, or 
neither group.  Families assigned to an experimental a test 
group receive benefits and services through the family 
investment plan.  Families assigned to a control comparison 
group receive benefits and services through existing programs.  
A family may not select the group to which it is assigned.  Once 
assigned to a group, a an eligible family must remain in that 
group for the duration of the project. 
    (ii) To evaluate the effectiveness of the family investment 
plan, the commissioner may designate a subgroup of families from 
the experimental test group who shall be exempt from section 
256.035, subdivision 1, and shall not receive case management 
services under section 256.035, subdivision 6a.  Families are 
eligible for services under section 256.736 to the same extent 
as families receiving AFDC.  
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
256.033, subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY CONDITIONS.] (a) A family is 
entitled to assistance under the Minnesota family investment 
plan if the family is assigned to a test group in the evaluation 
as provided in section 256.031, subdivision 3, paragraph (d), 
and: 
    (1) the family meets the definition of assistance unit 
under section 256.032, subdivision 1a; 
    (2) the family's resources not excluded under subdivision 3 
do not exceed $2,000; 
    (3) the family can verify citizenship or lawful resident 
alien status; 
     (4) the family provides or applies for a social security 
number for each member of the family receiving assistance under 
the family investment plan; and 
     (5) the family assigns child support collection to the 
county agency. 
     (b) A family is eligible for the family investment plan if 
the net income is less than the transitional standard as defined 
in section 256.032, subdivision 13, for that size and 
composition of family.  In determining available net income, the 
provisions in subdivision 2 shall apply. 
     (c) Upon application, a family is initially eligible for 
the family investment plan if the family's gross income does not 
exceed the applicable transitional standard of assistance for 
that family as defined under section 256.032, subdivision 13, 
after deducting: 
    (1) 18 percent to cover taxes; 
    (2) actual dependent care costs up to the maximum 
disregarded under United States Code, title 42, section 
602(a)(8)(A)(iii); and 
    (3) $50 of child support collected in that month. 
    (d) A family can remain eligible for the program if: 
    (1) it meets the conditions in section 256.035, subdivision 
4; and 
    (2) its income is below the transitional standard in 
section 256.032, subdivision 13, allowing for income exclusions 
in subdivision 2 and after applying the family investment plan 
treatment of earnings under section 256.035, subdivision 4. 
    Sec. 4.  Minnesota Statutes 1991 Supplement, section 
256.033, subdivision 2, is amended to read: 
    Subd. 2.  [DETERMINATION OF FAMILY INCOME.] The aid to 
families with dependent children income exclusions listed in 
Code of Federal Regulations, title 45, sections 233.20(a)(3) and 
233.20(a)(4), must be used when determining a family's available 
income, except that:  
    (1)  all earned income of a minor child receiving 
assistance through the Minnesota family investment plan is 
excluded when the child is attending school at least half-time; 
    (2) all earned income tax credit payments received by the 
family as a refund of federal income taxes or made as advance 
payments are excluded in accordance with United States Code, 
title 42, section 602(a)(8)(A)(viii); 
    (3) educational grants and loans as provided in section 
256.74, subdivision 1, clause (2), are excluded; 
    (4) all other income listed in Minnesota Rules, part 
9500.2380, subpart 2, is excluded; and 
    (5) when determining income available from members of the 
family who do not elect to be included in the assistance unit 
under section 256.032, subdivision 1a, paragraphs (c) and (e), 
the county agency shall count the remaining income after 
disregarding: 
    (i) the first 18 percent of the excluded family member's 
gross earned income; 
    (ii) an amount for the support of the any stepparent or any 
parent of a minor caregiver and any other individuals whom the 
stepparent or parent of the minor caregiver claims as dependents 
for determining federal personal income tax liability and who 
live in the same household but whose needs are not considered in 
determining eligibility for assistance under sections 256.031 to 
256.033.  The amount equals the transitional standard in section 
256.032, subdivision 13, for a family of the same size and 
composition; 
    (iii) amounts the stepparent or parent of the minor 
caregiver actually paid to individuals not living in the same 
household but whom the stepparent claims as dependents for 
determining federal personal income tax liability; and 
    (iv) alimony or child support, or both, paid by the 
stepparent or parent of the minor caregiver for individuals not 
living in the same household. 
    Sec. 5.  Minnesota Statutes 1991 Supplement, section 
256.033, subdivision 3, is amended to read: 
    Subd. 3.  [DETERMINATION OF FAMILY RESOURCES.] When 
determining a family's resources, the following are excluded:  
    (1) the family's home, together with surrounding property 
that does not exceed ten acres and that is not separated from 
the home by intervening property owned by others; 
    (2) one burial plot for each family member; 
    (3) one prepaid burial contract with an equity value of no 
more than $1,500 for each member of the family; 
    (4) licensed automobiles, trucks, or vans up to a total 
equity value of $4,500; 
    (5) personal property needed to produce earned income, 
including tools, implements, farm animals, and inventory; 
    (6) the entire equity value of a motor vehicle determined 
to be necessary for the operation of a self-employment business; 
and 
    (7) clothing, necessary household furniture, equipment, and 
other basic maintenance items essential for daily living. 
    Sec. 6.  Minnesota Statutes 1991 Supplement, section 
256.033, subdivision 5, is amended to read: 
    Subd. 5.  [ABILITY TO APPLY FOR FOOD STAMPS.] A family that 
is ineligible for assistance through the Minnesota family 
investment plan due to income or resources or has not been 
assigned to a test group in the evaluation as provided in 
section 256.031, subdivision 3, paragraph (d), may apply for, 
and if eligible receive, benefits under the food stamp program. 
    Sec. 7.  Minnesota Statutes 1991 Supplement, section 
256.034, subdivision 3, is amended to read: 
    Subd. 3.  [MODIFICATION OF ELIGIBILITY TESTS.] (a) A needy 
family is eligible and entitled to receive assistance under the 
program if the family is assigned to a test group in the 
evaluation as provided in section 256.031, subdivision 3, 
paragraph (d), even if its children are not found to be deprived 
of parental support or care by reason of death, continued 
absence from the home, physical or mental incapacity of a 
parent, or unemployment of a parent, provided the family's 
income and resources do not exceed the eligibility requirements 
in section 256.033.  In addition, a caregiver who is in the 
assistance unit who is physically and mentally fit, who is 
between the ages of 18 and 60 years, who is enrolled at least 
half time in an institution of higher education, and whose 
family income and resources do not exceed the eligibility 
requirements in section 256.033, is eligible for assistance 
under the Minnesota family investment plan if the family is 
assigned to a test group in the evaluation as provided in 
section 256.031, subdivision 3, paragraph (d), even if the 
conditions for eligibility as prescribed under the federal Food 
Stamp Act of 1977, as amended, are not met. 
    (b) An applicant for, or a person receiving, assistance 
under the Minnesota family investment plan is considered to have 
assigned to the public agency responsible for child support 
enforcement at the time of application all rights to child 
support, health care benefits coverage, and maintenance from any 
other person the applicant may have in the applicant's own 
behalf or on behalf of any other family member for whom 
application is made under the Minnesota family investment plan.  
The provisions of section 256.74, subdivision 5, govern the 
assignment.  An applicant for, or a person receiving, assistance 
under the Minnesota family investment plan shall cooperate with 
the efforts of the county agency to collect child and spousal 
support.  The county agency is entitled to any child support and 
maintenance received by or on behalf of the person receiving 
assistance or another member of the family for which the person 
receiving assistance is responsible.  Failure by an applicant or 
a person receiving assistance to cooperate with the efforts of 
the county agency to collect child and spousal support without 
good cause must be sanctioned according to section 256.035, 
subdivision 3.  
    (c) An applicant for, or a person receiving, assistance 
under the Minnesota family investment plan is not required to 
comply with the employment and training requirements prescribed 
under sections 256.736, subdivisions 3, 3a, and 14; and 256D.05, 
subdivision 1; section 402(a)(19) of the Social Security Act; 
the federal Food Stamp Act of 1977, as amended; Public Law 
Number 100-485; or any other state or federal employment and 
training program, unless and to the extent compliance is 
specifically required in a family support agreement with the 
county agency or its designee. 
    Sec. 8.  Minnesota Statutes 1991 Supplement, section 
256.035, subdivision 1, is amended to read: 
    Subdivision 1.  [EXPECTATIONS.] All families eligible for 
assistance under the family investment plan who are assigned to 
a test group in the evaluation as provided in section 256.031, 
subdivision 3, paragraph (d), are expected to be in transitional 
status as defined in section 256.032, subdivision 12.  To be 
considered in transitional status, families must meet the 
following expectations: 
    (a) For a family headed by a single adult parental 
caregiver, the expectation is that the parental caregiver will 
independently pursue self-sufficiency until the family has 
received assistance for 24 months within the preceding 36 
months.  Beginning with the 25th month of assistance, the parent 
must be developing or complying with the terms of the family 
support agreement.  
    (b) For a family with a minor parental caregiver or a 
family whose parental caregiver is 18 or 19 years of age and 
does not have a high school diploma or its equivalent, the 
expectation is that, concurrent with the receipt of assistance, 
the parental caregiver must be developing or complying with a 
family support agreement.  The terms of the family support 
agreement must include compliance with section 256.736, 
subdivision 3b.  However, if the assistance unit does not comply 
with section 256.736, subdivision 3b, the sanctions in 
subdivision 3 apply.  
    (c) For a family with two adult parental caregivers, the 
expectation is that at least one parent will independently 
pursue self-sufficiency until the family has received assistance 
for six months within the preceding 12 months.  Beginning with 
the seventh month of assistance, one parent must be developing 
or complying with the terms of the family support agreement.  
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
256.0361, subdivision 2, is amended to read: 
    Subd. 2.  [FINANCIAL REIMBURSEMENT.] (a) Up to the limit of 
the state appropriation, a county selected by the commissioner 
to serve as a field trial or a control comparison site for the 
Minnesota family investment plan shall be reimbursed by the 
state for the nonfederal share of administrative costs that were 
incurred during the development, implementation, and operation 
of the program and that exceed the administrative costs that 
would have been incurred in the absence of the program. 
    (b) Minnesota family investment plan assistance is included 
as covered programs and services under section 256.025, 
subdivision 2. 
    Sec. 10.  [256.046] [ADMINISTRATIVE FRAUD DISQUALIFICATION 
HEARINGS.] 
    Subdivision 1.  [HEARING AUTHORITY.] A local agency may 
initiate an administrative fraud disqualification hearing for 
individuals accused of wrongfully obtaining assistance or 
intentional program violations in the aid to families with 
dependent children or food stamp programs.  The hearing is 
subject to the requirements of section 256.045 and the 
requirements in Code of Federal Regulations, title 7, section 
273.16, for the food stamp program and title 45, section 
235.112, for the aid to families with dependent children program.
    Subd. 2.  [COMBINED HEARING.] The referee may combine a 
fair hearing and administrative fraud disqualification hearing 
into a single hearing if the factual issues arise out of the 
same, or related, circumstances and the individual receives 
prior notice that the hearings will be combined.  If the 
administrative fraud disqualification hearing and fair hearing 
are combined, the time frames for administrative fraud 
disqualification hearings set forth in Code of Federal 
Regulations, title 7, section 273.16, and title 45, section 
235.112, apply.  If the individual accused of wrongfully 
obtaining assistance is charged under section 256.98 for the 
same act or acts which are the subject of the hearing, the 
individual may request that the hearing be delayed until the 
criminal charge is decided by the court or withdrawn. 
    Sec. 11.  Minnesota Statutes 1990, section 256.12, is 
amended by adding a subdivision to read: 
    Subd. 23.  [IN-KIND INCOME.] "In-kind income," as used in 
sections 256.72 to 256.87, means income, benefits, or payments 
provided in a form other than money or liquid assets.  In-kind 
income includes goods, produce, services, privileges, or 
payments on behalf of a person by a third party.  Retirement 
Survivors and Disability Insurance (RSDI) benefits of an 
applicant or recipient, paid to a representative payee, and 
spent on behalf of the applicant or recipient, are not in-kind 
income, but are considered available income of the applicant or 
recipient. 
    Sec. 12.  Minnesota Statutes 1990, section 256.81, is 
amended to read: 
    256.81 [COUNTY AGENCY, DUTIES.] 
    (1) The county agency shall keep such records, accounts, 
and statistics in relation to aid to families with dependent 
children as the state agency shall prescribe.  
    (2) Each grant of aid to families with dependent children 
shall be paid to the recipient by the county agency unless paid 
by the state agency.  Payment must be by check or electronic 
means except in those instances in which the county agency, 
subject to the rules of the state agency, determines that 
payments for care shall be made to an individual other than the 
parent or relative with whom the dependent child is living or to 
vendors of goods and services for the benefit of the child 
because such parent or relative is unable to properly manage the 
funds in the best interests and welfare of the child.  At the 
request of a recipient, the state or county may make payments 
directly to vendors of goods and services, but only for goods 
and services appropriate to maintain the health and safety of 
the child, as determined by the county.  
    (3) The state or county may ask the recipient to give 
written consent authorizing the state or county to provide 
advance notice to a vendor before vendor payments of rent are 
reduced or terminated.  Whenever possible under state and 
federal laws and regulations and if the recipient consents, the 
state or county shall provide at least 30 days notice to vendors 
before vendor payments of rent are reduced or terminated.  If 30 
days notice cannot be given, the state or county shall notify 
the vendor within three working days after the date the state or 
county becomes aware that vendor payments of rent will be 
reduced or terminated.  When the county notifies a vendor that 
vendor payments of rent will be reduced or terminated, the 
county shall include in the notice that it is illegal to 
discriminate on the grounds that a person is receiving public 
assistance and the penalties for violation.  The county shall 
also notify the recipient that it is illegal to discriminate on 
the grounds that a person is receiving public assistance and the 
procedures for filing a complaint.  The county agency may 
develop procedures, including using the MAXIS system, to 
implement vendor notice and may charge vendors a fee not 
exceeding $5 to cover notification costs. 
    (4) A vendor payment arrangement is not a guarantee that a 
vendor will be paid by the state or county for rent, goods, or 
services furnished to a recipient, and the state and county are 
not liable for any damages claimed by a vendor due to failure of 
the state or county to pay or to notify the vendor on behalf of 
a recipient, except under a specific written agreement between 
the state or county and the vendor or when the state or county 
has provided a voucher guaranteeing payment under certain 
conditions.  
    (3) (5) The county shall be paid from state and federal 
funds available therefor the amount provided for in section 
256.82.  
    (4) (6) Federal funds available for administrative purposes 
shall be distributed between the state and the counties in the 
same proportion that expenditures were made except as provided 
for in section 256.017. 
    Sec. 13.  Minnesota Statutes 1991 Supplement, 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 the amount paid for comparable services under section 
261.035 plus 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 was legally 
responsible for the support of the deceased while living, are is 
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).  The state share of county agency expenditures 
shall be 50 percent and the county share shall be 50 percent.  
Benefits shall be issued to recipients by the state or county 
and funded according to section 256.025, subdivision 3, subject 
to provisions of section 256.017. 
    Beginning July 1, 1991, the state will reimburse counties 
according to the payment schedule set forth in section 256.025 
for the county share of county agency expenditures made under 
this subdivision from January 1, 1991, on.  Payment under this 
subdivision is subject to the provisions of section 256.017. 
    Sec. 14.  Minnesota Statutes 1991 Supplement, section 
256.98, subdivision 8, is amended to read: 
    Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
to be guilty of wrongfully obtaining assistance by a federal or 
state court or by an administrative hearing determination, in 
either the aid to families with dependent children program or 
the food stamp program, shall be disqualified from that 
program.  The needs of that individual shall not be taken into 
consideration in determining the grant level for that assistance 
unit:  
    (1) for six months after the first conviction offense; 
    (2) for 12 months after the second conviction offense; and 
    (3) permanently after the third or subsequent conviction 
offense.  
    Any period for which sanctions are imposed is effective, 
without possibility of administrative stay, until the findings 
upon which the sanctions were imposed are reversed by a court of 
competent jurisdiction.  The period for which sanctions are 
imposed is not subject to review.  The sanctions provided under 
this subdivision are in addition to, and not in substitution 
for, any other sanctions that may be provided for by law for the 
offense involved.  When the disqualified individual is a 
caretaker relative, the remainder of the aid to families with 
dependent children grant payable to the other eligible 
assistance unit members must be provided in the form of 
protective payments.  These payments may be made to the 
disqualified individual only if, after reasonable efforts, the 
county agency documents that it cannot locate an appropriate 
protective payee.  Protective payments must continue until the 
disqualification period ends. 
    Sec. 15.  [256.985] [ASSISTANCE TRANSACTION CARD FRAUD.] 
    Subdivision 1.  [DEFINITIONS.] For purposes of this 
section, the following terms have the meaning given them. 
    (a) "Assistance transaction card" means any instrument or 
device issued for the use of the cardholder in obtaining 
financial or medical assistance or in accessing any automated 
teller or electronic benefits machine to secure cash assistance. 
    (b) "Issuer" means the department of human services or any 
county welfare agency or human services board that issues an 
assistance transaction card. 
    (c) "Cardholder" means a person in whose name an assistance 
transaction card is issued. 
    Subd. 2.  [VIOLATION.] A person who does any of the 
following commits assistance transaction card fraud: 
    (1) uses or attempts to use a card to obtain assistance 
without the consent of the cardholder knowing the cardholder has 
not given consent; 
    (2) uses or attempts to use a card knowing it to be forged, 
false, fictitious, or obtained in violation of clause (5); 
    (3) sells or transfers a card knowing that the issuer has 
not authorized the person to whom the card is sold or 
transferred to use the card, or knowing the card is forged, 
false, fictitious, or was obtained in violation of clause (5); 
    (4) receives or possesses, with intent to use, sell, or 
transfer in violation of clause (3), two or more cards issued in 
the name of another, or two or more cards knowing the cards to 
be forged, false, fictitious, or obtained in violation of clause 
(5); 
    (5) upon applying for an assistance transaction card from 
the issuer, knowingly gives a false name; and 
    (6) with intent to defraud, falsely notifies the issuer or 
any other person of a theft, loss, disappearance, or nonreceipt 
of an assistance transaction card. 
    Subd. 3.  [SENTENCE.] A person who commits assistance 
transaction card fraud is guilty of theft and shall be sentenced 
under section 609.52, subdivision 3. 
     Sec. 16.  Minnesota Statutes 1990, section 256D.02, 
subdivision 8, is amended to read: 
    Subd. 8.  "Income" means any form of income, including 
remuneration for services performed as an employee and net 
earnings from self-employment, reduced by the amount 
attributable to employment expenses as defined by the 
commissioner.  The amount attributable to employment expenses 
shall include amounts paid or withheld for federal and state 
personal income taxes and federal social security taxes.  
    "Income" includes any payments received as an annuity, 
retirement, or disability benefit, including veteran's or 
workers' compensation; old age, survivors, and disability 
insurance; railroad retirement benefits; unemployment benefits; 
and benefits under any federally aided categorical assistance 
program, supplementary security income, or other assistance 
program; rents, dividends, interest and royalties; and support 
and maintenance payments.  Such payments may not be considered 
as available to meet the needs of any person other than the 
person for whose benefit they are received, unless that person 
is a family member or a spouse and the income is not excluded 
under section 256D.01, subdivision 1a.  Goods and services 
provided in lieu of cash payment shall be excluded from the 
definition of income, except that payments made for room, board, 
tuition or fees by a parent, on behalf of a child enrolled as a 
full-time student in a post-secondary institution, and payments 
made on behalf of an applicant or recipient which the applicant 
or recipient could legally require to be paid in cash to himself 
or herself, must be included as income.  Benefits of an 
applicant or recipient, such as those administered by the Social 
Security Administration, that are paid to a representative 
payee, and are spent on behalf of the applicant or recipient, 
are considered available income of the applicant or recipient. 
    Sec. 17.  Minnesota Statutes 1991 Supplement, section 
256D.03, subdivision 4, is amended to read: 
    Subd. 4.  [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] (a) 
For a person who is eligible under subdivision 3, paragraph (a), 
clause (3), general assistance medical care covers: 
     (1) inpatient hospital services; 
     (2) outpatient hospital services; 
     (3) services provided by Medicare certified rehabilitation 
agencies; 
     (4) prescription drugs and other products recommended 
through the process established in section 256B.0625, 
subdivision 13; 
     (5) equipment necessary to administer insulin and 
diagnostic supplies and equipment for diabetics to monitor blood 
sugar level; 
     (6) eyeglasses and eye examinations provided by a physician 
or optometrist; 
     (7) hearing aids; 
     (8) prosthetic devices; 
     (9) laboratory and X-ray services; 
     (10) physician's services; 
     (11) medical transportation; 
     (12) chiropractic services as covered under the medical 
assistance program; 
     (13) podiatric services; 
    (14) dental services; 
    (15) outpatient services provided by a mental health center 
or clinic that is under contract with the county board and is 
established under section 245.62; 
    (16) day treatment services for mental illness provided 
under contract with the county board; 
    (17) prescribed medications for persons who have been 
diagnosed as mentally ill as necessary to prevent more 
restrictive institutionalization; 
    (18) case management services for a person with serious and 
persistent mental illness who would be eligible for medical 
assistance except that the person resides in an institution for 
mental diseases; 
    (19) psychological services, medical supplies and 
equipment, and Medicare premiums, coinsurance and deductible 
payments; and 
    (20) medical equipment not specifically listed in this 
paragraph when the use of the equipment will prevent the need 
for costlier services that are reimbursable under this 
subdivision. 
    (b) For a recipient who is eligible under subdivision 3, 
paragraph (a), clause (1) or (2), general assistance medical 
care covers the services listed in paragraph (a) with the 
exception of special transportation services. 
    (c) In order to contain costs, the commissioner of human 
services shall select vendors of medical care who can provide 
the most economical care consistent with high medical standards 
and shall where possible contract with organizations on a 
prepaid capitation basis to provide these services.  The 
commissioner shall consider proposals by counties and vendors 
for 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 sections 256B.02, 
subdivision 8, and 256B.0625.  For payments made during fiscal 
year 1990 and later years, the commissioner shall consult with 
an independent actuary in establishing prepayment rates, but 
shall retain final control over the rate methodology. 
     (d) 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, 1985, to 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 30 percent; payments for all other 
inpatient hospital care may be reduced no more than 20 percent.  
Reductions below the payments allowable under general assistance 
medical care for the remaining general assistance medical care 
services allowable under this subdivision may be reduced no more 
than ten percent. 
     For the period January 1, 1986, to 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 20 percent; payments for all other 
inpatient hospital care may be reduced no more than 15 percent.  
Reductions below the payments allowable under general assistance 
medical care for the remaining general assistance medical care 
services allowable under this subdivision may be reduced no more 
than 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.  
       For the period July 1, 1987, to June 30, 1988, 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 five 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. 
     For the period July 1, 1988, to June 30, 1989, 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 not be reduced.  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. 
     (e) Any county may, from its own resources, provide medical 
payments for which state payments are not made. 
     (f) Chemical dependency services that are reimbursed under 
chapter 254B must not be reimbursed under general assistance 
medical care. 
     (g) The maximum payment for new vendors enrolled in the 
general assistance medical care program after the base year 
shall be determined from the average usual and customary charge 
of the same vendor type enrolled in the base year. 
     (h) The conditions of payment for services under this 
subdivision are the same as the conditions specified in rules 
adopted under chapter 256B governing the medical assistance 
program, unless otherwise provided by statute or rule. 
    Sec. 18.  Minnesota Statutes 1991 Supplement, section 
256D.05, subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY.] (a) Each person or family 
whose income and resources are less than the standard of 
assistance established by the commissioner and who is a resident 
of the state shall be eligible for and entitled to general 
assistance if the person or family is: 
     (1) a person who is suffering from a professionally 
certified permanent or temporary illness, injury, or incapacity 
which is expected to continue for more than 30 days 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 professionally 
certified illness, injury, incapacity, or the age of another 
member of the household; 
      (3) a person who has been placed in, and is residing 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 county agency through its director or designated 
representative; 
      (4) a person who resides in a shelter facility described in 
subdivision 3; 
      (5) a person not described in clause (1) or (3) who is 
diagnosed by a licensed physician, licensed psychologist, or 
other qualified professional, as mentally retarded or mentally 
ill, and that condition prevents the person from obtaining or 
retaining employment; 
    (6) a person who has an application pending for, or is 
appealing termination of benefits from, the social security 
disability program or the program of supplemental security 
income for the aged, blind, and disabled, provided the person 
has a professionally certified permanent or temporary illness, 
injury, or incapacity which is expected to continue for more 
than 30 days and which prevents the person from obtaining or 
retaining employment; 
    (7) a person who is unable to obtain or retain employment 
because advanced age significantly affects the person's ability 
to seek or engage in substantial work; 
    (8) a person who, following participation in the work 
readiness program, completion of an individualized employability 
assessment by the work readiness service provider, and 
consultation between the county agency and the work readiness 
service provider, the county agency work readiness service 
provider determines is not employable.  For purposes of this 
item, a person is considered employable if the county agency 
determines that there exist positions of employment in the local 
labor market, regardless of the current availability of openings 
for those positions, that the person is capable of performing.  
Eligibility under this category must be reassessed at least 
annually by the county agency and must be based upon the results 
of a new individualized employability assessment completed by 
the work readiness service provider.  The recipient shall, if 
otherwise eligible, continue to receive general assistance while 
the annual individualized employability assessment is completed 
by the work readiness service provider, rather than receive work 
readiness payments under section 256D.051.  Subsequent 
eligibility for general assistance is dependent upon the county 
agency determining, following consultation with the work 
readiness service provider, that the person is not employable, 
or the person meeting the requirements of another general 
assistance category of eligibility; 
     (9) a person who is determined by the county agency, in 
accordance with emergency and permanent rules adopted by the 
commissioner, to be learning disabled, provided that if a 
rehabilitation plan for the person is developed or approved by 
the county agency, the person is following the plan; 
     (10) a child under the age of 18 who is not living with a 
parent, stepparent, or legal custodian, but only if:  the child 
is legally emancipated or living with an adult with the consent 
of an agency acting as a legal custodian; the child is at least 
16 years of age and the general assistance grant is approved by 
the director of the county agency or a designated representative 
as a component of a social services case plan for the child; or 
the child is living with an adult with the consent of the 
child's legal custodian and the county agency.  For purposes of 
this clause, "legally emancipated" means a person under the age 
of 18 years who:  (i) has been married; (ii) is on active duty 
in the uniformed services of the United States; (iii) has been 
emancipated by a court of competent jurisdiction; or (iv) is 
otherwise considered emancipated under Minnesota law, and for 
whom county social services has not determined that a social 
services case plan is necessary, for reasons other than that the 
child has failed or refuses to cooperate with the county agency 
in developing the plan; 
    (11) a woman in the last trimester of pregnancy who does 
not qualify for aid to families with dependent children.  A 
woman who is in the last trimester of pregnancy who is currently 
receiving aid to families with dependent children may be granted 
emergency general assistance to meet emergency needs; 
    (12) a person who is eligible for displaced homemaker 
services, programs, or assistance under section 268.96, but only 
if that person is enrolled as a full-time student; 
    (13) a person who lives more than two hours round-trip 
traveling time from any potential suitable employment; and 
    (14) a person who is involved with protective or 
court-ordered services that prevent the applicant or recipient 
from working at least four hours per day; and 
    (15) a family as defined in section 256D.02, subdivision 5, 
which is ineligible for the aid to families with dependent 
children program.  If all children in the family are six years 
of age or older, or if suitable child care is available for 
children under age six at no cost to the family, all the adult 
members of the family must register for and cooperate in the 
work readiness program under section 256D.051.  If one or more 
of the children is under the age of six and suitable child care 
is not available without cost to the family, all the adult 
members except one adult member must register for and cooperate 
with the work readiness program under section 256D.051.  The 
adult member who must participate in the work readiness program 
is the one having earned the greater of the incomes, excluding 
in-kind income, during the 24-month period immediately preceding 
the month of application for assistance.  When there are no 
earnings or when earnings are identical for each adult, the 
applicant must designate the adult who must participate in work 
readiness and that designation must not be transferred or 
changed after program eligibility is determined as long as 
program eligibility continues without an interruption of 30 days 
or more.  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 that member's needs into account in making the grant 
determination as provided by the termination provisions of 
section 256D.051, subdivision 1a, paragraph (b).  The time 
limits of section 256D.051, subdivision 1, do not apply to 
persons eligible under this clause; or 
     (16) a person over age 18 whose primary language is not 
English and who is attending high school at least half time. 
    (b) Persons or families who are not state residents but who 
are otherwise eligible for general assistance may receive 
emergency general assistance to meet emergency needs. 
    (c) As a condition of eligibility under paragraph (a), 
clauses (1), (3), (5), (8), and (9), the recipient must complete 
an interim assistance agreement and must apply for other 
maintenance benefits as specified in section 256D.06, 
subdivision 5, and must comply with efforts to determine the 
recipient's eligibility for those other maintenance benefits.  
    (d) The burden of providing documentation for a county 
agency to use to verify eligibility for general assistance or 
work readiness is upon the applicant or recipient.  The county 
agency shall use documents already in its possession to verify 
eligibility, and shall help the applicant or recipient obtain 
other existing verification necessary to determine eligibility 
which the applicant or recipient does not have and is unable to 
obtain. 
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
256D.051, subdivision 1, is amended to read: 
    Subdivision 1.  [WORK REGISTRATION.] (a) Except as provided 
in this subdivision, persons who are residents of the state and 
whose income and resources are less than the standard of 
assistance established by the commissioner, but who are not 
categorically eligible under section 256D.05, subdivision 1, are 
eligible for the work readiness program for a maximum period of 
five consecutive six calendar months during any 12 consecutive 
calendar month period, subject to the provisions of paragraph 
(d), subdivision 3, and section 256D.052, subdivision 4.  The 
person's five-month eligibility period begins on the first day 
of the calendar month following the date of application for 
assistance or following the date all eligibility factors are 
met, whichever is later, and ends on the last day of the fifth 
consecutive calendar month, whether or not the person has 
received benefits for all five months.  The person is not 
eligible to receive work readiness benefits during the seven 
calendar months immediately following the five-month eligibility 
period; however, the person may voluntarily continue to 
participate in work readiness services for up to three 
additional consecutive months immediately following the last 
month of benefits to complete the provisions of the person's 
employability development plan.  After July 1, 1992, if 
orientation is available within three weeks after the date 
eligibility is determined, initial payment will not be made 
until the registrant attends orientation to the work readiness 
program.  Prior to terminating work readiness assistance the 
county agency must provide advice on the person's eligibility 
for general assistance medical care and must assess the person's 
eligibility for general assistance under section 256D.05 to the 
extent possible, using information in the case file, and 
determine the person's eligibility for general assistance.  A 
determination that the person is not eligible for general 
assistance must be stated in the notice of termination of work 
readiness benefits. 
    (b) Persons, families, and married couples who are not 
state residents but who are otherwise eligible for work 
readiness assistance may receive emergency assistance to meet 
emergency needs. 
    (c) Except for family members who must participate in work 
readiness services under the provisions of section 256D.05, 
subdivision 1, clause (14), any person who would be defined for 
purposes of the food stamp program as being enrolled at least 
half-time in an institution of higher education is ineligible 
for the work readiness program. 
    (d) Notwithstanding the provisions of sections 256.045 and 
256D.10, during the pendency of an appeal, work readiness 
payments and services shall not continue to a person who appeals 
the termination of benefits due to exhaustion of the period of 
eligibility specified in paragraph (a) or (d). 
    Sec. 20.  Minnesota Statutes 1990, section 256D.051, is 
amended by adding a subdivision to read: 
    Subd. 17.  [START WORK GRANTS.] Within the limit of 
available appropriations, the county agency may make grants 
necessary to enable work readiness recipients to accept bona 
fide offers of employment.  The grants may be made for costs 
directly related to starting employment, including 
transportation costs, clothing, tools and equipment, license or 
other fees, and relocation.  Start work grants are available 
once in any 12-month period to a recipient.  The commissioner 
shall allocate money appropriated for start work grants to 
counties based on each county's work readiness caseload in the 
12 months ending in March for each following state fiscal year 
and may reallocate any unspent amounts. 
    Sec. 21.  Minnesota Statutes 1990, section 256D.06, 
subdivision 5, is amended to read: 
    Subd. 5.  Any applicant, otherwise eligible for general 
assistance and possibly eligible for maintenance benefits from 
any other source shall (a) make application for those benefits 
within 30 days of the general assistance application; and (b) 
execute an interim assistance authorization agreement on a form 
as directed by the commissioner.  If found eligible for benefits 
from other sources, and a payment received from another source 
relates to the period during which general assistance was also 
being received, the recipient shall be required to reimburse the 
county agency for the interim assistance paid.  Reimbursement 
shall not exceed the amount of general assistance paid during 
the time period to which the other maintenance benefits apply 
and shall not exceed the state standard applicable to that time 
period.  The commissioner shall adopt rules, and may adopt 
emergency rules, authorizing county agencies or other client 
representatives to retain from the amount recovered under an 
interim assistance agreement 25 percent plus actual reasonable 
fees, costs, and disbursements of appeals and litigation, of 
providing special assistance to the recipient in processing the 
recipient's claim for maintenance benefits from another source.  
The money retained under this section shall be from the state 
share of the recovery.  The commissioner or the county agency 
may contract with qualified persons to provide the special 
assistance.  The rules adopted by the commissioner shall include 
the methods by which county agencies shall identify, refer, and 
assist recipients who may be eligible for benefits under federal 
programs for the disabled.  This subdivision does not require 
repayment of per diem payments made to shelters for battered 
women pursuant to section 256D.05, subdivision 3. 
    Sec. 22.  Minnesota Statutes 1990, section 256D.06, is 
amended by adding a subdivision to read: 
    Subd. 7.  [SSI CONVERSIONS AND BACK CLAIMS.] (a) [SSI 
CONVERSIONS.] The commissioner of human services shall contract 
with agencies or organizations capable of ensuring that clients 
who are presently receiving assistance under sections 256D.01 to 
256D.21, and who may be eligible for benefits under the federal 
Supplemental Security Income program, apply and, when eligible, 
are converted to the federal income assistance program and made 
eligible for health care benefits under the medical assistance 
program.  The commissioner shall ensure that money owing to the 
state under interim assistance agreements is collected.  
    (b) [BACK CLAIMS FOR FEDERAL HEALTH CARE BENEFITS.] The 
commissioner shall also directly or through contract implement 
procedures for collecting federal Medicare and medical 
assistance funds for which clients converted to SSI are 
retroactively eligible. 
    (c) [ADDITIONAL REQUIREMENTS.] The commissioner shall begin 
contracting with agencies to ensure implementation of this 
section within 14 days after enactment of this section.  County 
contracts with providers for residential services shall include 
the requirement that providers screen residents who may be 
eligible for federal benefits and provide that information to 
the local agency.  The commissioner shall modify the MAXIS 
computer system to provide information on clients who have been 
on general assistance for two years or longer.  The list of 
clients shall be provided to local services for screening under 
this section. 
    (d) [REPORT.] The commissioner shall report to the 
legislature by January 15, 1993, on the implementation of this 
section.  The report shall contain information on the following: 
    (1) the number of clients converted from general assistance 
to SSI, by county; 
    (2) information on the organizations involved; 
    (3) the amount of money collected through interim 
assistance agreements; 
    (4) the amount of money collected in federal Medicare or 
Medicaid funds; 
    (5) problems encountered in processing conversions and back 
claims; and 
    (6) recommended changes to enhance recoveries and maximize 
the receipt of federal money in the most efficient way possible. 
    Sec. 23.  [256D.091] [GRANT DIVERSION.] 
    Subdivision 1.  [DEFINITIONS.] (a) "Diverted grant" means 
the amount of the general assistance grant or work readiness 
assistance payment, not exceeding the standard of assistance for 
one person, that is available for a wage subsidy. 
    (b) "Net monthly wage" means the income remaining to a 
registrant after taking the disregards and exclusions from 
income under section 256D.06. 
    (c) "Registrant" means a recipient of general assistance or 
work assistance who is participating in a grant diversion 
employment and employment-related program. 
    Subd. 2.  [GRANT DIVERSION PROGRAM.] (a) The county agency 
may establish a grant diversion program for payment of all or a 
part of a recipient's general assistance or work readiness grant 
to a private or nonprofit employer who agrees to employ the 
recipient in a permanent job or to a public employer who agrees 
to employ the recipient in a permanent job or an approved 
community investment program.  The county agency may administer 
and deliver grant diversions directly or may contract for 
delivery of the program according to section 268.871. 
    (b) The county agency shall assess a registrant's continued 
eligibility for general assistance or work readiness assistance 
before the end of the registrant's grant diversion period. 
    (c) The county agency shall submit fiscal and summary 
reports required by the commissioner. 
    Subd. 3.  [REGISTRANT PARTICIPATION.] (a) A recipient may 
refuse employment or employment-related training under the grant 
diversion program unless the recipient lacks a work history or 
local work reference and the recipient's employability plan 
requires participation in a community investment program. 
    (b) A recipient may participate in a grant diversion 
program for up to four months. 
    (c) During participation in the grant diversion program, a 
registrant must submit to the county agency the monthly food 
stamp eligibility household report form. 
    Subd. 4.  [CONTRACT WITH GRANT DIVERSION EMPLOYER.] The 
county agency or the local service unit shall enter into a 
written contract with a grant diversion employer.  The contract 
must include: 
    (1) the period of time the diverted grant is available; 
    (2) the amount of the monthly diverted grant; 
    (3) the method of payment of the diverted grant; 
    (4) data gathering and reporting requirements; 
    (5) agreement by the employer not to terminate or reduce 
the working hours of current employees in order to participate 
in the grant diversion program; 
    (6) agreement by the employer to provide the registrant the 
same or a comparable level of wages, fringe benefits, and 
workers' compensation coverage that are provided other 
employees; and 
    (7) agreement by the employer to hire the registrant at the 
end of the grant diversion period. 
    Subd. 5.  [NOTICE TO REGISTRANT.] The county agency or 
local service unit shall provide the registrant written notice 
of the terms of the registrant's grant diversion program, 
including: 
    (1) the requirement to complete the period of subsidized 
employment or employment-related training specified in the 
contract; 
    (2) the date of the first day of employment or 
employment-related training; 
    (3) the name, address, and occupational title of the 
employer; 
    (4) the hourly wage and the number of work hours per week; 
    (5) the effect of participation on work readiness 
eligibility; 
    (6) the maximum period of participation and the months the 
registrant's grant will be diverted; 
    (7) the amount of the diverted grant and the amount of any 
residual assistance grant; and 
    (8) the actions to be taken if the registrant fails to 
complete the grant diversion participation period. 
    The county agency shall maintain a copy of the notice in 
the registrant's case file. 
    Subd. 6.  [GRANT DIVERSION MONTHLY PAYMENT.] (a) The county 
agency shall calculate and pay the diverted grant directly to 
the registrant's employer or shall reimburse an employment and 
training service provider that has paid the employer.  The 
amount of monthly payment available to an employer under the 
grant diversion program must not exceed the monthly standard of 
assistance for one person. 
    (b) If a registrant is receiving assistance as a member of 
an assistance unit, the monthly payment to the assistance unit 
may be reduced only by the amount of the assistance standard for 
one person. 
    (c) Notwithstanding any change in resources, household, or 
income of the registrant or the registrant's assistance unit, 
eligibility for work readiness and the amount of monthly payment 
is not subject to change during the grant diversion period if 
the registrant is participating in the grant diversion program 
as required in the notice provided under subdivision 5. 
    Subd. 7.  [MEDICAL CARE.] A registrant is eligible for 
general assistance medical care during the term of the grant 
diversion contract. 
    Subd. 8.  [CHILD CARE.] A recipient who is the sole adult 
in an assistance unit with one or more children under 12 years 
of age must not be referred to the grant diversion program 
during hours the child is in the home unless the county agency 
pays any child care expenses that exceed the child care 
deduction from earned income. 
    Subd. 9.  [DISQUALIFICATION.] A registrant who fails 
without good cause to complete the grant diversion period 
specified in the contract must be disqualified from receiving 
assistance as provided in section 256D.101. 
     Sec. 24.  Minnesota Statutes 1990, section 256D.35, 
subdivision 11, is amended to read: 
    Subd. 11.  [IN-KIND INCOME.] "In-kind income" means income, 
benefits, or payments that are provided in a form other than 
money or liquid asset.  In-kind income includes goods, produce, 
services, privileges, or payments on behalf of a person by a 
third party; except benefits of the recipient, such as those 
administered by the Social Security Administration, that are 
paid to a representative payee, and are spent on behalf of the 
applicant or recipient, are not in-kind income, but are 
considered available income of the applicant or recipient. 
    Sec. 25.  Minnesota Statutes 1990, section 256D.54, 
subdivision 3, is amended to read: 
    Subd. 3.  [INTERIM ASSISTANCE ADVOCACY INCENTIVE PROGRAM.] 
From the amount recovered under an interim assistance agreement, 
county agencies may retain 25 percent plus actual reasonable 
fees, costs, and disbursements of appeals, litigation, and 
advocacy assistance given to the recipient for the recipient's 
claim for supplemental security income.  The money kept under 
this section is from the state share of the recovery.  
The commissioner or the county agency may contract with 
qualified persons to provide the special assistance.  The 
methods by which a county agency identifies, refers, and assists 
recipients who may be eligible for benefits under federal 
programs for the aged, blind, or disabled are those methods used 
by the general assistance interim assistance advocacy incentive 
program. 
    Sec. 26.  Minnesota Statutes 1990, section 256H.01, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [APPLICANT.] "Child care fund applicants" means 
all parents, stepparents, legal guardians, or eligible relative 
caretakers who reside in the household that applies for child 
care assistance under the child care fund. 
    Sec. 27.  Minnesota Statutes 1990, section 256H.01, 
subdivision 9, is amended to read: 
    Subd. 9.  [FAMILY.] "Family" means parents, stepparents, 
guardians, or other caretaker relatives eligible relative 
caretakers, and their blood related dependent children and 
adoptive siblings under the age of 18 years living in the same 
home including children temporarily absent from the household in 
settings such as schools, foster care, and residential treatment 
facilities.  When a minor parent or parents and his, her, or 
their child or children are living with other relatives, and the 
minor parent or parents apply for a child care subsidy, "family" 
means only the minor parent or parents and the child or 
children.  An adult may be considered a dependent member of the 
family unit if 50 percent of the adult's support is being 
provided by the parents, stepparents, guardians, or other 
caregiver relatives eligible relative caretakers residing in the 
same household.  An adult age 18 who is a full-time high school 
student and can reasonably be expected to graduate before age 19 
may be considered a dependent member of the family unit. 
    Sec. 28.  Minnesota Statutes 1991 Supplement, section 
256H.03, subdivision 4, is amended to read: 
    Subd. 4.  [ALLOCATION FORMULA.] Beginning July 1, 1992, the 
basic sliding fee state and federal funds shall be allocated 
according to the following formula:  
    (a) One-half of the funds shall be allocated in proportion 
to each county's total expenditures for the basic sliding fee 
child care program reported during the 12-month period ending on 
December 31 of the preceding state fiscal year.  
    (b) One-fourth of the funds shall be allocated based on the 
number of children under age 13 in each county who are enrolled 
in general assistance medical care, medical assistance, and the 
children's health plan on July 1, of each year. 
    (c) One-fourth of the funds shall be allocated based on the 
number of children under age 13 who reside in each county, from 
the most recent estimates of the state demographer. 
    Sec. 29.  Minnesota Statutes 1991 Supplement, section 
256H.03, subdivision 6, is amended to read: 
    Subd. 6.  [GUARANTEED FLOOR.] (a) Each county's guaranteed 
floor shall equal the lesser of:  
    (1) the county's original allocation in the preceding state 
fiscal year; or 
    (2) 110 percent of the county's basic sliding fee child 
care program state and federal earnings for the 12-month period 
ending on December 31 of the preceding state fiscal year.  For 
purposes of this clause, "state and federal earnings" means the 
reported nonfederal share of direct child care expenditures 
adjusted for the administrative allowance and 15 percent 
required county match and seven percent administration limit.  
    (b) When the amount of funds available for allocation is 
less than the amount available in the previous year, each 
county's previous year allocation shall be reduced in proportion 
to the reduction in the statewide funding, for the purpose of 
establishing the guaranteed floor.  
    Sec. 30.  Minnesota Statutes 1991 Supplement, section 
256H.05, subdivision 1b, is amended to read: 
    Subd. 1b.  [ELIGIBLE RECIPIENTS.] Families eligible for 
guaranteed child care assistance under the AFDC child care 
program are: 
    (1) persons receiving services under section 256.736; 
    (2) AFDC recipients who are employed; 
    (3) persons who are members of transition year families 
under section 256H.01, subdivision 16; and 
    (4) members of the control group for the STRIDE evaluation 
conducted by the Manpower Demonstration Research Corporation; 
and 
    (5) AFDC caretakers who are participating in the non-STRIDE 
AFDC child care program. 
    Sec. 31.  Minnesota Statutes 1991 Supplement, section 
256H.05, is amended by adding a subdivision to read: 
    Subd. 6.  [NON-STRIDE AFDC CHILD CARE PROGRAM.] Starting 
one month after the effective date of this subdivision, the 
department of human services shall reimburse eligible 
expenditures for 2,000 family slots for AFDC caretakers not 
eligible for services under section 256.736, who are engaged in 
an authorized educational or job search program.  Each county 
will receive a number of family slots based on the county's 
proportion of the AFDC caseload.  A county must receive at least 
two family slots.  Eligibility and reimbursement are limited to 
the number of family slots allocated to each county.  County 
agencies shall authorize an educational plan for each student 
and may prioritize families eligible for this program in their 
child care fund plan upon approval of the commissioner of human 
services.  
    Sec. 32.  Minnesota Statutes 1990, section 256H.10, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY FACTORS.] Child care services 
must be available to families who need child care to find or 
keep employment or to obtain the training or education necessary 
to find employment and who: 
    (a) receive aid to families with dependent children and are 
receiving employment and training services under section 
256.736; 
    (b) have household income below the eligibility levels for 
aid to families with dependent children; or 
    (c) have household income within a range established by the 
commissioner. 
    (d) Child care services for the families receiving aid to 
families with dependent children must be made available as 
in-kind services, to cover any difference between the actual 
cost and the amount disregarded under the aid to families with 
dependent children program.  Child care services to families 
whose incomes are below the threshold of eligibility for aid to 
families with dependent children, but that are not receiving aid 
to families with dependent children are not AFDC caretakers, 
must be made available without cost to the families with the 
minimum copayment required by federal law. 
    Sec. 33.  Minnesota Statutes 1990, section 256I.01, is 
amended to read: 
    256I.01 [CITATION.] 
    Sections 256I.01 to 256I.06 shall be cited as the 
"negotiated group residential housing rate act." 
    Sec. 34.  Minnesota Statutes 1990, section 256I.02, is 
amended to read: 
    256I.02 [PURPOSE.] 
    The negotiated group residential housing rate act 
establishes a comprehensive system of rates and payments for 
persons who reside in a negotiated rate group residence and who 
meet the eligibility criteria of the general assistance program 
under sections 256D.01 to 256D.21, or the Minnesota supplemental 
aid program under sections 256D.33 to 256D.54. 
    Sec. 35.  Minnesota Statutes 1990, section 256I.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [NEGOTIATED GROUP RESIDENTIAL HOUSING RATE.] 
"Negotiated Group residential housing rate" means a monthly rate 
set for shelter, fuel, food, utilities, household supplies, and 
other costs necessary to provide room and board for individuals 
eligible for general assistance under sections 256D.01 to 
256D.21 or supplemental aid under sections 256D.33 to 
256D.54.  Negotiated Group residential housing rate does not 
include payments for foster care for children who are not blind, 
child welfare services, medical care, dental care, 
hospitalization, nursing care, drugs or medical supplies, 
program costs, or other social services.  However, 
the negotiated group residential housing rate for recipients 
living in residences in section 256I.05, subdivision 2, 
paragraph (c), clause (2), includes all items covered by that 
residence's medical assistance per diem rate.  The rate is 
negotiated by the county agency or the state according to the 
provisions of sections 256I.01 to 256I.06. 
    Sec. 36.  Minnesota Statutes 1990, section 256I.03, 
subdivision 3, is amended to read: 
    Subd. 3.  [NEGOTIATED RATE RESIDENCE GROUP RESIDENTIAL 
HOUSING.] "Negotiated rate residence Group residential housing" 
means a group living situation that provides at a minimum room 
and board to unrelated persons who meet the eligibility 
requirements of section 256I.04.  This definition includes 
foster care settings for a single adult.  To receive payment for 
a negotiated group residence rate, the residence must be 
licensed by either the department of health or human services 
and must comply with applicable laws and rules establishing 
standards for health, safety, and licensure.  Secure crisis 
shelters for battered women and their children designated by the 
department of corrections are not negotiated rate group 
residences under this chapter. 
    Sec. 37.  Minnesota Statutes 1990, section 256I.04, as 
amended by Laws 1991, chapter 292, article 2, section 68, is 
amended to read: 
    256I.04 [ELIGIBILITY FOR NEGOTIATED RATE GROUP RESIDENTIAL 
HOUSING PAYMENT.] 
    Subdivision 1.  [ELIGIBILITY REQUIREMENTS.] To be eligible 
for a negotiated rate group residential housing payment, the 
individual must be eligible for general assistance under 
sections 256D.01 to 256D.21, or supplemental aid under sections 
256D.33 to 256D.54.  If the individual is in the negotiated rate 
group residence due to illness or incapacity, the individual 
must be in the residence under a plan developed or approved by 
the county agency.  Residence in other negotiated rate group 
residences must be approved by the county agency.  
    Subd. 2.  [DATE OF ELIGIBILITY.] For a person living in 
a negotiated rate group residence who is eligible for general 
assistance under sections 256D.01 to 256D.21, payment shall be 
made from the date a signed application form is received by the 
county agency or the date the applicant meets all eligibility 
factors, whichever is later.  For a person living in a 
negotiated rate group residence who is eligible for supplemental 
aid under sections 256D.33 to 256D.54, payment shall be made 
from the first of the month in which an approved application is 
received by a county agency. 
    Subd. 3.  [MORATORIUM ON THE DEVELOPMENT OF NEGOTIATED RATE 
GROUP RESIDENTIAL HOUSING BEDS.] County agencies shall not enter 
into agreements for new general assistance or Minnesota 
supplemental aid negotiated rate group residence housing beds 
except:  (1) for adult foster homes licensed by the commissioner 
of human services under Minnesota Rules, parts 9555.5105 to 
9555.6265; (2) for facilities licensed under Minnesota Rules, 
parts 9525.0215 to 9525.0355, provided the facility is needed to 
meet the census reduction targets for persons with mental 
retardation or related conditions at regional treatment centers; 
(3) to ensure compliance with the federal Omnibus Budget 
Reconciliation Act alternative disposition plan requirements for 
inappropriately placed persons with mental retardation or 
related conditions or mental illness; or (4) for up to five 
handicapped accessible beds in a facility that serves primarily 
persons with a mental illness or chemical dependency that began 
construction to add space for the new beds before April 1, 1991, 
and will complete construction or remodeling by December 1, 1991.
(4) up to 80 beds in a single, specialized facility located in 
Hennepin county that will provide housing for chronic inebriates 
who are repetitive users of detoxification centers and are 
refused placement in emergency shelters because of their state 
of intoxication.  Planning for the specialized facility must 
have been initiated before July 1, 1991, in anticipation of 
receiving a grant from the housing finance agency under section 
462A.05, subdivision 20a, paragraph (b). 
    Sec. 38.  Minnesota Statutes 1990, section 256I.05, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MONTHLY RATES.] Monthly payments for rates 
negotiated by a county agency, or set by the department under 
rules developed pursuant to subdivision 6, on behalf of a 
recipient living in a negotiated rate group residence may must 
be paid at the rates in effect on March 1, 1985 June 30, 1991, 
not to exceed $919.80 in 1989.  The maximum negotiated rate must 
be increased annually according to subdivision 7.  The county 
agency may provide an annual increase in the March 1, 1985, 
payment rate using the formula in subdivision 7, provided the 
resulting rate does not exceed the maximum negotiated 
rate $966.37 for a group residence that entered into an initial 
group residential housing agreement with a county agency before 
June 1, 1989.  The county agency may at any time negotiate a 
lower payment rate than the rate that would otherwise be paid 
under this subdivision and subdivision 7. 
    Sec. 39.  Minnesota Statutes 1991 Supplement, section 
256I.05, subdivision 1a, is amended to read: 
    Subd. 1a.  [LOWER MAXIMUM RATE RATES.] (a) The maximum 
monthly rate for a general assistance or Minnesota supplemental 
aid negotiated rate group residence that enters into an initial 
negotiated rate group residential housing agreement with a 
county agency on or after June 1, 1989, may not exceed 90 
percent of the maximum rate established under subdivision 1.  
This is effective until June 30, 1993, or until the statewide 
system authorized under subdivision 6 is established, whichever 
occurs first. 
    (b) The maximum monthly rate for a general assistance or 
Minnesota supplemental aid group residence that is neither 
licensed by nor registered with the Minnesota department of 
health, or licensed by the department of human services, to 
provide programs or services in addition to room and board is an 
amount equal to the total of: 
    (1) the combined maximum shelter and basic needs standards 
for Minnesota supplemental aid recipients living alone specified 
in section 256D.44, subdivisions 2, paragraph (a), and 3, 
paragraph (a); plus 
    (2) for persons who are not eligible to receive food stamps 
due to living arrangements, the maximum allotment authorized by 
the federal food stamp program for a single individual which is 
in effect on the first day of July each year; less 
    (3) the personal needs allowance authorized for medical 
assistance recipients under section 256B.35. 
    Sec. 40.  Minnesota Statutes 1991 Supplement, section 
256I.05, subdivision 1b, is amended to read: 
    Subd. 1b.  [RATES FOR UNCERTIFIED BOARDING CARE HOMES.] 
Effective July 1, 1992, the maximum rate for a boarding care 
home not certified to receive medical assistance is equal to 65 
percent of the average nursing home level "A" rate in effect for 
the geographic area in which the boarding care home is located, 
except that a facility's rate must not be reduced by more than 
ten percent for the year ending June 30, 1992.  This is 
effective until June 30, 1993.  A noncertified boarding care 
home licensed under Minnesota Rules, parts 9520.0500 to 
9520.0690, is exempt from this rate limit.  The commissioner 
shall study the numbers of facilities and residents that will be 
affected by the limit in this subdivision, the number of 
facilities likely to close because of the limit, the available 
alternatives for affected residents, methods of relocating or 
securing alternative placements for residents, and other effects 
of the limit.  The commissioner shall provide a report to the 
legislature by January 1, 1992, on the commissioner's findings 
and recommendations relating to the rate limit specified in 
subdivision 1 does not apply to a facility which was licensed by 
the Minnesota department of health as a boarding care home 
before March 1, 1985, and which is not certified to receive 
medical assistance.  
    Sec. 41.  Minnesota Statutes 1991 Supplement, section 
256I.05, subdivision 2, is amended to read: 
    Subd. 2.  [MONTHLY RATES; EXEMPTIONS.] (a) The maximum 
negotiated group residential housing rate does not apply to a 
residence 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.  For residences 
in this clause that have less than five percent of their 
licensed boarding care capacity reimbursed by the medical 
assistance program, rate increases shall be provided according 
to section 256B.431, subdivision 4, paragraph (c). 
    (b) The maximum negotiated group residential housing rate 
does not apply to a residence that on August 1, 1984, was 
licensed by the commissioner of human services under Minnesota 
Rules, parts 9525.0520 to 9525.0660, but funded as a negotiated 
rate group residence under general assistance or Minnesota 
supplemental aid. Rate increases for these residences are 
subject to the provisions of subdivision 7.  
    (c) The maximum negotiated rate does not apply to a 
residence certified to participate in the medical assistance 
program, licensed as a boarding care facility or a nursing home, 
and declared to be an institution for mental disease by January 
1, 1989.  Effective January 1, 1989, the rate for these 
residences is the individual's appropriate medical assistance 
case mix rate.  The exclusion from the rate limit for residences 
under this clause continues until June 30, 1992.  The 
commissioner of human services, in consultation with the 
counties in which these residences are located, shall review the 
status of each certified nursing home and board and care 
facility declared to be an institution for mental disease.  This 
review shall include the cost effectiveness of continued payment 
for residents through general assistance or Minnesota 
supplemental aid; the appropriateness of placement of general 
assistance or supplemental aid clients in these facilities; the 
effects of Public Law Number 100-203 on these facilities; and 
the role of these facilities in the mental health service 
delivery system.  The commissioner shall make recommendations to 
the legislature by January 1, 1990, regarding the need to 
continue the exclusion of these facilities from the negotiated 
rate maximum and the future role of these facilities in serving 
persons with mental illness.  
    (d) The commissioner of human services shall take the 
following action in relation to certified boarding care 
facilities and nursing homes that have been declared 
institutions for mental diseases, excluding those facilities 
exempt under paragraph (a): 
    (1) All mental health and placement screenings and 
diagnostic assessments required under the federal Omnibus Budget 
Reconciliation Act (OBRA) must be completed by July 1, 1991, for 
all residents in institutions for mental diseases admitted 
before June 1, 1991.  Residents determined to need relocation 
under the preadmission screening and annual resident review must 
be relocated to a more appropriate placement in accordance with 
the timelines established in the state's alternative disposition 
plan. 
    (2) By October 1, 1991, all institutions for mental 
diseases must be reviewed again by the commissioner to determine 
if they are still institutions for mental diseases, and the 
commissioner shall immediately revoke a declaration that a 
facility is an institution for mental diseases if the 
commissioner determines that the facility is not an institution 
for mental diseases. 
    (3) The commissioner shall provide to institutions for 
mental diseases training in the criteria used in assessing 
residents for determination of institutions for mental diseases 
status and the numbers of residents in each category. 
    (4) For facilities whose status as an institution for 
mental diseases is not revoked by the commissioner by October 1, 
1991, a facility-specific plan must be developed by the 
commissioner and the facility, in consultation with the 
appropriate consumer groups, to offer alternative services to 
enough residents by July 1, 1992, to allow the commissioner to 
revoke the facility's status as an institution for mental 
diseases. 
    Sec. 42.  Minnesota Statutes 1990, section 256I.05, 
subdivision 3, is amended to read: 
    Subd. 3.  [LIMITS ON RATES.] When a negotiated group 
residential housing rate is used to pay for an individual's room 
and board, the rate payable to the residence must not exceed the 
rate paid by an individual not receiving a negotiated group 
residential housing rate under this chapter. 
    Sec. 43.  Minnesota Statutes 1990, section 256I.05, 
subdivision 6, is amended to read: 
    Subd. 6.  [STATEWIDE RATE SETTING SYSTEM.] The commissioner 
shall establish a comprehensive statewide system of rates and 
payments for recipients who reside in residences with negotiated 
rates group residential housing to be effective January 1, 1992, 
or as soon as possible after that date.  The commissioner may 
adopt rules to establish this rate setting system. 
    Sec. 44.  Minnesota Statutes 1990, section 256I.05, is 
amended by adding a subdivision to read: 
    Subd. 7b.  [COMMISSIONER'S DUTIES.] The commissioner shall 
not provide automatic annual inflation adjustments for group 
residential housing rates for the fiscal year beginning on July 
1, 1993, and for subsequent fiscal years.  The commissioner of 
finance shall include as a budget change request annual 
adjustments in reimbursement rates for group residential housing 
in each biennial detailed expenditure budget submitted to the 
legislature under section 16A.11. 
    Sec. 45.  Minnesota Statutes 1990, section 256I.05, 
subdivision 8, is amended to read: 
    Subd. 8.  [STATE PARTICIPATION.] For a resident of a 
negotiated rate group residence who is eligible for general 
assistance under sections 256D.01 to 256D.21, state 
participation in the negotiated group residential housing rate 
is determined according to section 256D.03, subdivision 2.  For 
a resident of a negotiated rate facility group residence who is 
eligible under sections 256D.33 to 256D.54, state participation 
in the negotiated group residential housing rate is determined 
according to section 256D.36. 
    Sec. 46.  Minnesota Statutes 1990, section 256I.05, 
subdivision 9, is amended to read: 
    Subd. 9.  [PERSONAL NEEDS ALLOWANCE.] In addition to 
the negotiated group residential housing rate paid for the room 
and board costs, a person residing in a negotiated rate group 
residence shall receive an allowance for clothing and personal 
needs.  The allowance shall not be less than that authorized for 
a medical assistance recipient in section 256B.35. 
    Sec. 47.  Minnesota Statutes 1991 Supplement, section 
256I.05, subdivision 10, is amended to read: 
    Subd. 10.  [FOSTER CARE.] In keeping with the definition of 
"group residential housing rate" established in section 256I.03, 
subdivision 2, beginning July 1, 1992, the negotiated group 
residential housing rate of a group residence licensed as a 
foster home is limited to the rate set for room and board costs 
payments provided the foster home is not the license holder's 
primary residence, or the license holder is not the primary 
caregiver to persons receiving services in the negotiated 
rate group residence, and federal funding is available to pay 
for so long as the cost of other necessary services meets the 
definition of services or costs eligible for payment under the 
state's Medicaid program under title XIX of the Social Security 
Act and the persons receiving services in the group residence 
also receive title XIX home- and community-based waiver services 
for persons with mental retardation or a related condition, or 
persons with traumatic or acquired brain injury.  For 
the purpose purposes of this section, the July 1, 1992, rate set 
for room and board costs mean costs of providing food and 
shelter for eligible persons, and includes payments must not 
exceed the group residential housing rate effective June 30, 
1992, minus the additional rate to be paid under title XIX of 
the Social Security Act.  The only exception to this limitation 
is a rate adjustment for the payment of the additional room and 
board costs of serving additional persons in the group residence.
Until a statewide rate setting system is developed in accordance 
with subdivision 6, "room and board payments" referenced in this 
section means the directly identifiable payments for the usual 
costs of: 
    (1) normal and special diet, food preparation and food 
services; 
    (2) providing linen, bedding, laundering, and laundry 
supplies; 
    (3) housekeeping, including cleaning and lavatory supplies; 
    (4) maintenance and operation of the residence and grounds, 
including fuel, utilities, supplies, and equipment; 
    (5) the allocation of salaries related to these areas; and 
    (6) the lease or mortgage payment, property tax and 
insurance, furnishings and appliances. 
    For purposes of this section, room and board payments do 
not include payments for the costs of modifications and 
adaptations of the group residence required to ensure the health 
and safety of the resident or to meet the requirements of the 
applicable life safety code when those costs meet the definition 
of services and costs eligible for payment under the state's 
Medicaid program under title XIX of the Social Security Act.  
The group residences identified in this section shall be subject 
to a statewide rate setting system identified in subdivision 6 
once the rate setting system has been developed.  Any amount of 
payment made by counties prior to July 1, 1992, that exceeds the 
rate caps established in subdivisions 1 and 2 is not considered 
part of the group residential housing rate under this section 
and may not be considered as part of the group residential 
housing rate set as of July 1, 1992, nor shall that amount be 
considered eligible for payment under title XIX of the Social 
Security Act. 
    Sec. 48.  [256I.051] [RATE LIMITATION; WAIVERED SERVICES 
ELIGIBILITY.] 
    (a) If a group residential housing rate for an adult foster 
care or board and lodging placement is for an individual who 
would be or is eligible for the elderly waiver, the community 
alternatives for disabled individuals program, or the community 
alternative care program, the group residential housing rate 
must include only the room and board portion of the rate.  This 
paragraph applies only to the extent that there are waiver funds 
available. 
    (b) The room and board portion of the group residential 
housing rate is an amount equal to the total of: 
    (1) the combined maximum shelter and basic needs standards 
for Minnesota supplemental aid recipients living alone, 
specified in section 256D.44, subdivisions 2, paragraph (a), and 
3, paragraph (a); plus 
    (2) the maximum allotment authorized by the federal food 
stamp program for a single individual in effect on the first day 
of July each year to be applied to persons who are not eligible 
to receive food stamps due to living arrangement; and less 
    (3) the personal needs allowance authorized for medical 
assistance recipients under section 256B.35. 
    Sec. 49.  Minnesota Statutes 1990, section 256I.06, is 
amended to read: 
    256I.06 [PAYMENT METHODS.] 
    When a negotiated group residential housing rate is used to 
pay the room and board costs of a person eligible under sections 
256D.01 to 256D.21, the monthly payment may be issued as a 
voucher or vendor payment.  When a negotiated group residential 
housing rate is used to pay the room and board costs of a person 
eligible under sections 256D.33 to 256D.54, payments must be 
made to the recipient.  If a recipient is not able to manage the 
recipient's finances, a representative payee must be appointed. 
    Sec. 50.  Minnesota Statutes 1991 Supplement, section 
261.035, is amended to read: 
    261.035 [BURIAL FUNERALS AT EXPENSE OF COUNTY.] 
    When a person dies in any county without apparent means to 
provide for burial and without relatives of sufficient ability 
to procure the burial that person's funeral or final 
disposition, the county board shall first investigate to 
determine whether the that person who has died has had 
contracted for any prepaid burial funeral arrangements.  If such 
arrangements have been made, the county shall authorize burial 
arrangements to be implemented in accord with the written 
instructions of the deceased.  If it is determined that the 
person did not leave sufficient means to defray the necessary 
expenses of burial a funeral and final disposition, nor any 
relatives therein spouse of sufficient ability to procure the 
burial, the county board shall cause provide for a decent burial 
or cremation funeral and final disposition of the person's 
remains to be made at the expense of the county.  Cremation 
shall not be used for persons who are known to be opposed to 
cremation because of religious affiliation or belief.  Any 
funeral and final disposition provided at the expense of the 
county shall be in accordance with religious and moral beliefs 
of the decedent or the decedent's spouse or the decedent's next 
of kin.  If the wishes of the decedent are not known and the 
county has no information about the existence of or location of 
any next of kin, the county may determine the method of final 
disposition. 
    Sec. 51.  Minnesota Statutes 1990, section 357.021, 
subdivision 1a, is amended to read: 
    Subd. 1a.  (a) Every person, including the state of 
Minnesota and all bodies politic and corporate, who shall 
transact any business in the district court, shall pay to the 
court administrator of said court the sundry fees prescribed in 
subdivision 2.  Except as provided in paragraph (d), the court 
administrator shall transmit the fees monthly to the state 
treasurer for deposit in the state treasury and credit to the 
general fund.  
    (b) In a county which has a screener-collector position, 
fees paid by a county pursuant to this subdivision shall be 
transmitted monthly to the county treasurer, who shall apply the 
fees first to reimburse the county for the amount of the salary 
paid for the screener-collector position.  The balance of the 
fees collected shall then be forwarded to the state treasurer 
for deposit in the state treasury and credited to the general 
fund.  A screener-collector position for purposes of this 
paragraph is an employee whose function is to increase the 
collection of fines and to review the incomes of potential 
clients of the public defender, in order to verify eligibility 
for that service. 
    (c) No fee is required under this section from the public 
authority or the party the public authority represents in an 
action for: 
    (1) child support enforcement or modification, medical 
assistance enforcement, or establishment of parentage in the 
district court, or child or medical support enforcement 
conducted by an administrative law judge in an administrative 
hearing under section 518.551, subdivision 10; 
     (2) civil commitment under chapter 253B; 
     (3) the appointment of a public conservator or public 
guardian or any other action under chapters 252A and 525; 
     (4) wrongfully obtaining public assistance under section 
256.98 or 256D.07, or recovery of overpayments of public 
assistance; 
    (5) court relief under chapter 260; 
    (6) forfeiture of property under sections 609.531 to 
609.5317; 
    (7) recovery of amounts issued by political subdivisions or 
public institutions under sections 246.52, 252.27, 256.045, 
256.25, 256.87, 256B.042, 256B.14, 256B.15, 256B.37, and 
260.251, or other sections referring to other forms of public 
assistance; or 
    (8) restitution under section 611A.04. 
    (d) The fees collected for child support modifications 
under subdivision 2, clause (11), must be transmitted to the 
county treasurer for deposit in the county general fund.  The 
fees must be used by the county to pay for child support 
enforcement efforts by county attorneys. 
    Sec. 52.  Minnesota Statutes 1991 Supplement, section 
357.021, subdivision 2, is amended to read: 
    Subd. 2.  [FEE AMOUNTS.] The fees to be charged and 
collected by the court administrator shall be as follows: 
    (1) In every civil action or proceeding in said court, the 
plaintiff, petitioner, or other moving party shall pay, when the 
first paper is filed for that party in said action, a fee of $85.
    The defendant or other adverse or intervening party, or any 
one or more of several defendants or other adverse or 
intervening parties appearing separately from the others, shall 
pay, when the first paper is filed for that party in said 
action, a fee of $85. 
      The party requesting a trial by jury shall pay $30. 
      The fees above stated shall be the full trial fee 
chargeable to said parties irrespective of whether trial be to 
the court alone, to the court and jury, or disposed of without 
trial, and shall include the entry of judgment in the action, 
but does not include copies or certified copies of any papers so 
filed or proceedings under chapter 103E, except the provisions 
therein as to appeals. 
     (2) Certified copy of any instrument from a civil or 
criminal proceeding, $5, plus 25 cents per page after the first 
page, and $3.50, plus 25 cents per page after the first page for 
an uncertified copy. 
     (3) Issuing a subpoena, $3 for each name. 
     (4) Issuing an execution and filing the return thereof; 
issuing a writ of attachment, injunction, habeas corpus, 
mandamus, quo warranto, certiorari, or other writs not 
specifically mentioned, $10. 
    (5) Issuing a transcript of judgment, or for filing and 
docketing a transcript of judgment from another court, $7.50. 
    (6) Filing and entering a satisfaction of judgment, partial 
satisfaction, or assignment of judgment, $5. 
    (7) Certificate as to existence or nonexistence of 
judgments docketed, $5 for each name certified to. 
    (8) Filing and indexing trade name; or recording notary 
commission; or recording basic science certificate; or recording 
certificate of physicians, osteopaths, chiropractors, 
veterinarians, or optometrists, $5. 
    (9) For the filing of each partial, final, or annual 
account in all trusteeships, $10. 
    (10) For the deposit of a will, $5. 
    (11) Filing a motion or response to a motion for 
modification of child support, a fee fixed by rule or order of 
the supreme court.  
    (12) All other services required by law for which no fee is 
provided, such fee as compares favorably with those herein 
provided, or such as may be fixed by rule or order of the court. 
    Sec. 53.  Minnesota Statutes 1990, section 518.551, 
subdivision 7, is amended to read: 
    Subd. 7.  [SERVICE FEE.] (a) When the public agency 
responsible for child support enforcement provides child support 
collection services either to a public assistance recipient or 
to a party who does not receive public assistance, the public 
agency may upon written notice to the obligor charge a monthly 
collection fee equivalent to the full monthly cost to the county 
of providing collection services, in addition to the amount of 
the child support which was ordered by the court.  The fee shall 
be deposited in the county general fund.  The service fee 
assessed is limited to ten percent of the monthly court ordered 
child support and shall not be assessed to obligors who are 
current in payment of the monthly court ordered child support.  
An application fee not to exceed $5 $25 shall be paid by the 
person who applies for child support and maintenance collection 
services, except persons who transfer from public assistance to 
nonpublic assistance status.  Fees assessed by state and federal 
tax agencies for collection of overdue support owed to or on 
behalf of a person not receiving public assistance must be 
imposed on the person for whom these services are provided. 
    However, the limitations of this subdivision on the 
assessment of fees shall not apply to the extent inconsistent 
with the requirements of federal law for receiving funds for the 
programs under Title IV-A and Title IV-D of the Social Security 
Act, United States Code, title 42, sections 601 to 613 and 
United States Code, title 42, sections 651 to 662.  
    Sec. 54.  Minnesota Statutes 1990, section 518.551, 
subdivision 10, is amended to read: 
    Subd. 10.  [ADMINISTRATIVE PROCESS FOR CHILD AND MEDICAL 
SUPPORT ORDERS.] (a) An administrative process is established to 
obtain, modify, and enforce child and medical support orders and 
maintenance.  
    The commissioner of human services may designate counties 
to participate in the administrative process established by this 
section.  All proceedings for obtaining, modifying, or enforcing 
child and medical support orders and maintenance and 
adjudicating uncontested parentage proceedings, required to be 
conducted in counties designated by the commissioner of human 
services in which the county human services agency is a party or 
represents a party to the action must be conducted by an 
administrative law judge from the office of administrative 
hearings, except for the following proceedings:  
    (1) adjudication of contested parentage; 
    (2) motions to set aside a paternity adjudication or 
declaration of parentage; 
    (3) evidentiary hearing on contempt motions; and 
    (4) motions to sentence or to revoke the stay of a jail 
sentence in contempt proceedings.  
    (b) An administrative law judge may hear a stipulation 
reached on a contempt motion, but any stipulation that involves 
a finding of contempt and a jail sentence, whether stayed or 
imposed, shall require the review and signature of a district 
judge.  
    (c) For the purpose of this process, all powers, duties, 
and responsibilities conferred on judges of the district court 
to obtain and enforce child and medical support obligations, 
subject to the limitation set forth herein, are conferred on the 
administrative law judge conducting the proceedings, including 
the power to issue orders to show cause and to issue bench 
warrants for failure to appear.  
    (d) Before implementing the process in a county, the chief 
administrative law judge, the commissioner of human services, 
the director of the county human services agency, the county 
attorney, and the county court administrator shall jointly 
establish procedures and the county shall provide hearing 
facilities for implementing this process in a county.  
    (e) Nonattorney employees of the public agency responsible 
for child support in the counties designated by the 
commissioner, acting at the direction of the county attorney, 
may prepare, sign, serve, and file complaints and motions for 
obtaining, modifying, or enforcing child and medical support 
orders and maintenance and related documents, appear at 
prehearing conferences, and participate in proceedings before an 
administrative law judge.  This activity shall not be considered 
to be the unauthorized practice of law.  
    (f) The hearings shall be conducted under the rules of the 
office of administrative hearings, Minnesota Rules, parts 
1400.7100 to 1400.7500, 1400.7700, and 1400.7800, as adopted by 
the chief administrative law judge.  All other aspects of the 
case, including, but not limited to, pleadings, discovery, and 
motions, shall be conducted under the rules of family court, the 
rules of civil procedure, and chapter 518.  The administrative 
law judge shall make findings of fact, conclusions, and a final 
decision and issue an order.  Orders issued by an administrative 
law judge are enforceable by the contempt powers of the county 
and district courts.  
    (g) The decision and order of the administrative law judge 
is appealable to the court of appeals in the same manner as a 
decision of the district court.  
    (h) The commissioner of human services shall distribute 
money for this purpose to counties to cover the costs of the 
administrative process, including the salaries of administrative 
law judges.  If available appropriations are insufficient to 
cover the costs, the commissioner shall prorate the amount among 
the counties. 
    Sec. 55.  [MSA SHARED HOUSING DEMONSTRATION PROJECT.] 
    Within available appropriations, the commissioner of human 
services shall establish a shared housing demonstration project 
for mentally ill persons receiving assistance under the 
Minnesota supplemental aid (MSA) program established by 
Minnesota Statutes, sections 256D.33 to 256D.54.  Persons 
selected for the project shall be MSA recipients who are 
mentally ill and who are certified by a physician as needing 
shared housing for medical reasons.  These individuals shall be 
permitted to reside with other individuals while still receiving 
the full MSA shelter allowance and full basic needs allowance 
under Minnesota Statutes, section 256D.44.  The purpose of the 
project is to demonstrate that allowing full MSA grants for 
certain persons with mental illness who share housing can be 
effective in helping those individuals avoid costly mental 
health treatment including repeated hospitalizations.  The study 
must be conducted in conformity with federal requirements on 
studies using human subjects for research. 
    As part of the demonstration project, the commissioner 
shall conduct a survey of mental health professionals and county 
case managers and shall analyze the MSA caseload figures 
maintained by the department of human services.  The purpose of 
the survey and analysis is to determine the likely number of 
individuals that would be impacted by an increase in the 
standard of assistance under Minnesota Statutes, section 
256D.44, for mentally ill persons in shared housing situations.  
The commissioner shall consult with mental health advocacy and 
other public interest groups in preparing and carrying out the 
survey.  The commissioner shall report to the legislature by 
January 15, 1994, on the results of the survey and demonstration 
project.  For purposes of this demonstration project, eligible 
individuals shall be limited to Hennepin county on a first-come, 
first-served basis, subject to approval of the county board.  
    Sec. 56.  [COLLECTIONS AND COST RECOVERY.] 
    The commissioner of human services shall consult with 
representatives of the office of child support enforcement, 
local social service agencies, the department of revenue, and 
legislative staff to make recommendations for a process to 
increase the collection of child support arrearages and to 
institute cost recovery in child support enforcement.  The 
commissioner of human services and the commissioner of revenue 
shall report the recommendations to the chairs of the committees 
on health and human services and judiciary in the senate and the 
house of representatives by January 15, 1993. 
    Sec. 57.  [CHILD SUPPORT COMPUTER SYSTEM.] 
    The commissioner of human services shall take appropriate 
action to ensure that the statewide computer system for the 
collection and enforcement of child support is operating 
effectively and efficiently as soon as possible.  The 
commissioner shall report to the chairs of the committees on 
health and human services and judiciary in the senate and the 
house of representatives by January 15, 1993, concerning the 
status of the computer system and any problems in the 
functioning of the system. 
    Sec. 58.  [IMPLEMENTATION.] 
    Notwithstanding the second sentence of Laws 1991, chapter 
292, article 5, section 85, subdivision 1, the commissioner 
shall implement the Minnesota family investment plan field 
trials beginning April 1, 1994. 
    Sec. 59.  [REPEALER.] 
    Minnesota Statutes 1990, sections 144A.15, subdivision 6; 
256B.495, subdivision 3; 256D.09, subdivision 3; and 256I.05, 
subdivision 7; and Minnesota Statutes 1991 Supplement, section 
256I.05, subdivision 7a, are repealed. 
    Sec. 60.  [EFFECTIVE DATE.] 
    Sections 26 to 32 are effective the day following final 
enactment.  Section 37, subdivision 3, clause (4), is effective 
July 1, 1993.  
    Section 19 is effective January 1, 1993, except for the 
provision in subdivision 1, paragraph (a), referring to 
orientation which is effective immediately upon final enactment. 

                               ARTICLE 9 

                  SOCIAL SERVICES, MENTAL HEALTH, AND 

                       DEVELOPMENTAL DISABILITIES 
    Section 1.  [16B.185] [PROCUREMENTS FROM REHABILITATION 
FACILITIES AND DAY TRAINING AND HABILITATION FACILITIES.] 
    In collaboration with the commissioners of jobs and 
training, human services, and trade and economic development, 
the commissioner shall identify contracts for the purchase of 
goods and services from certified rehabilitation facilities and 
day training and habitation services that will enhance 
employment opportunities for persons with severe disabilities 
that result in additional annual sales volume of 15 percent per 
year by July 1, 1995. 
    Sec. 2.  Minnesota Statutes 1990, section 43A.191, 
subdivision 2, is amended to read: 
    Subd. 2.  [AGENCY AFFIRMATIVE ACTION PLANS.] (a) The head 
of each agency in the executive branch shall prepare and 
implement an agency affirmative action plan consistent with this 
section and rules issued under section 43A.04, subdivision 3. 
    (b) The agency plan must include a plan for the provision 
of reasonable accommodation in the hiring and promotion of 
qualified disabled persons.  The reasonable accommodation plan 
must consist of at least the following: 
    (1) procedures for compliance with section 363.03 and, 
where appropriate, regulations implementing United States Code, 
title 29, section 794, as amended through December 31, 1984, 
which is section 504 of the Rehabilitation Act of 1973, as 
amended; 
    (2) methods and procedures for providing reasonable 
accommodation for disabled job applicants, current employees, 
and employees seeking promotion; and 
    (3) provisions for funding reasonable accommodations. 
    (c) The agency plan must be prepared by the agency head 
with the assistance of the agency affirmative action officer and 
the director of equal employment opportunity.  The council on 
disability shall provide assistance with the agency reasonable 
accommodation plan. 
    (d) The agency plan must identify, annually, any positions 
in the agency that can be used for supported employment as 
defined in section 268A.01, subdivision 13, of persons with 
severe disabilities.  The agency shall report this information 
to the commissioner.  An agency that hires more than one 
supported worker in the identified positions must receive 
recognition for each supported worker toward meeting the 
agency's affirmative action goals and objectives. 
    (e) An agency affirmative action plan may not be 
implemented without the commissioner's approval. 
    Sec. 3.  [244.17] [BOOT CAMP PROGRAM.] 
    Subdivision 1.  [GENERALLY.] The commissioner may select 
offenders who meet the eligibility requirements of subdivisions 
2 and 3 to participate in the boot camp program described in 
sections 244.171 and 244.172 for all or part of the offender's 
sentence if the offender agrees to participate in the program 
and signs a written contract with the commissioner agreeing to 
comply with the program's requirements. 
    Subd. 2.  [ELIGIBILITY.] The commissioner must limit the 
boot camp program to the following persons: 
    (1) offenders who are committed to the commissioner's 
custody following revocation of a stayed sentence; and 
    (2) offenders who are committed to the commissioner's 
custody for a term of imprisonment of not less than 18 months 
nor more than 36 months and who did not receive a dispositional 
departure under the sentencing guidelines.  
    Subd. 3.  [OFFENDERS NOT ELIGIBLE.] The following offenders 
are not eligible to be placed in the boot camp program: 
    (1) offenders who are committed to the commissioner's 
custody following a conviction for murder, manslaughter, 
criminal sexual conduct, assault, kidnapping, robbery, arson, or 
any other offense involving death or personal injury; and 
    (2) offenders who previously were convicted of an offense 
described in clause (1) and were committed to the custody of the 
commissioner. 
    Sec. 4.  [244.171] [BOOT CAMP PROGRAM; BASIC ELEMENTS.] 
    Subdivision 1.  [REQUIREMENTS.] The commissioner shall 
operate the boot camp program in conformance with this section.  
The commissioner shall administer the program to further the 
following goals: 
    (1) to punish the offender; 
    (2) to protect the safety of the public; 
    (3) to enhance the employment skills of the offender during 
the boot camp program and afterward; 
    (4) to use offenders to accomplish community service 
initiatives, goals, and projects; and 
    (5) to facilitate treatment of offenders who are chemically 
dependent. 
    Subd. 2.  [GOOD TIME NOT AVAILABLE.] An offender in the 
boot camp program does not earn good time during phases I and II 
of the program, notwithstanding section 244.04. 
    Subd. 3.  [SANCTIONS.] The commissioner shall impose severe 
and meaningful sanctions for violating the conditions of the 
boot camp program.  The commissioner shall remove an offender 
from the boot camp program if the offender: 
    (1) commits a material violation of or repeatedly fails to 
follow the rules of the program; 
    (2) commits any misdemeanor, gross misdemeanor, or felony 
offense; or 
    (3) presents a risk to the public, based on the offender's 
behavior, attitude, or abuse of alcohol or controlled 
substances.  The removal of an offender from the boot camp 
program is governed by the procedures in the commissioner's 
rules adopted under section 244.05, subdivision 2. 
    An offender who is removed from the boot camp program shall 
be imprisoned for a time period equal to the offender's original 
term of imprisonment, minus earned good time if any, but in no 
case for longer than the time remaining in the offender's 
sentence.  "Original term of imprisonment" means a time period 
equal to two-thirds of the sentence originally executed by the 
sentencing court, minus jail credit, if any. 
    Sec. 5.  [244.172] [BOOT CAMP PROGRAM; PHASES I to III.] 
    Subdivision 1.  [PHASE I.] Phase I of the program lasts at 
least six months.  The offender must be confined in a state 
correctional facility designated by the commissioner and must 
successfully participate in all intensive treatment, education, 
and work programs required by the commissioner.  The offender 
must also submit on demand to random drug and alcohol testing at 
time intervals set by the commissioner.  For the first three 
months of phase I, the offender may not receive visitors or 
telephone calls, except under emergency circumstances. 
    Subd. 2.  [PHASE II.] Phase II of the program lasts at 
least six months.  The offender shall serve this phase of the 
offender's sentence in an intensive community supervision 
program established by the commissioner under section 244.13.  
The commissioner may impose on the offender any of the 
requirements described in section 244.15, subdivisions 2 to 7, 
provided that the offender must be required to submit to daily 
drug and alcohol tests for the first three months, biweekly 
tests for the next two months, and weekly tests for the 
remainder of phase II.  The commissioner shall also require the 
offender to report daily to a day-reporting facility designated 
by the commissioner.  In addition, if the commissioner required 
the offender to undergo acupuncture during phase I, the offender 
must continue to submit to acupuncture treatment throughout 
phase II. 
    Subd. 3.  [PHASE III.] Phase III lasts for the remainder of 
the offender's sentence.  During phase III, the commissioner 
shall place the offender on supervised release under section 
244.05.  The commissioner shall set the level of the offender's 
supervision based on the public risk presented by the offender. 
    Sec. 6.  [244.173] [BOOT CAMP PROGRAM; EVALUATION AND 
REPORT.] 
    The commissioner shall develop a system for gathering and 
analyzing information concerning the value and effectiveness of 
the boot camp program.  The commissioner shall report to the 
legislature by January 1, 1996, on the operation of the program. 
    Sec. 7.  Minnesota Statutes 1990, section 245A.02, is 
amended by adding a subdivision to read: 
    Subd. 7a.  [HIV MINIMUM STANDARDS.] "HIV minimum standards" 
means those items approved by the department and contained in 
the HIV-1 Guidelines for chemical dependency treatment and care 
programs in Minnesota including HIV education to clients, 
completion of HIV training by all new and existing staff, 
provision for referral to individual HIV counseling and services 
for all clients, and the implementation of written policies and 
procedures for working with HIV-infected clients.  
    Sec. 8.  Minnesota Statutes 1990, section 245A.02, is 
amended by adding a subdivision to read: 
    Subd. 15.  [RESPITE CARE SERVICES.] "Respite care services" 
means temporary services provided to a person due to the absence 
or need for relief of the person's family member or legal 
representative who is the primary caregiver and principally 
responsible for the care and supervision of the person.  Respite 
care services are those that provide the level of supervision 
and care that is necessary to ensure the health and safety of 
the person.  Respite care services do not include services that 
are specifically directed toward the training and habilitation 
of the person. 
    Sec. 9.  Minnesota Statutes 1991 Supplement, section 
245A.03, subdivision 2, is amended to read: 
    Subd. 2.  [EXCLUSION FROM LICENSURE.] Sections 245A.01 to 
245A.16 do not apply to: 
     (1) residential or nonresidential programs that are 
provided to a person by an individual who is related; 
     (2) nonresidential programs that are provided by an 
unrelated individual to persons from a single related family; 
     (3) residential or nonresidential programs that are 
provided to adults who do not abuse chemicals or who do not have 
a chemical dependency, a mental illness, mental retardation or a 
related condition, a functional impairment, or a physical 
handicap; 
     (4) sheltered workshops or work activity programs that are 
certified by the commissioner of jobs and training; 
     (5) programs for children enrolled in kindergarten to the 
12th grade and prekindergarten regular and special education 
programs that are operated by the commissioner of education or a 
school as defined in section 120.101, subdivision 4; 
     (6) nonresidential programs for children that provide care 
or supervision for periods of less than three hours a day while 
the child's parent or legal guardian is in the same building or 
present on property that is contiguous with the physical 
facility where the nonresidential program is provided; 
     (7) nursing homes or hospitals licensed by the commissioner 
of health except as specified under section 245A.02; 
     (8) board and lodge facilities licensed by the commissioner 
of health that provide services for five or more persons whose 
primary diagnosis is mental illness who have refused an 
appropriate residential program offered by a county agency.  
This exclusion expires on July 1, 1990; 
       (9) homes providing programs for persons placed there by a 
licensed agency for legal adoption, unless the adoption is not 
completed within two years; 
       (10) programs licensed by the commissioner of corrections; 
       (11) recreation programs for children or adults that 
operate for fewer than 40 calendar days in a calendar year; 
     (12) programs whose primary purpose is to provide, for 
adults or school-age children, including children who will be 
eligible to enter kindergarten within not more than four months, 
social and recreational activities, such as scouting, boys 
clubs, girls clubs, sports, or the arts; except that a program 
operating in a school building is not excluded unless it is 
approved by the district's school board; 
       (13) head start nonresidential programs which operate for 
less than 31 days in each calendar year; 
       (14) noncertified boarding care homes unless they provide 
services for five or more persons whose primary diagnosis is 
mental illness or mental retardation; 
       (15) nonresidential programs for nonhandicapped children 
provided for a cumulative total of less than 30 days in any 
12-month period; 
    (16) residential programs for persons with mental illness, 
that are located in hospitals, until the commissioner adopts 
appropriate rules; 
    (17) the religious instruction of school-age children; 
Sabbath or Sunday schools; or the congregate care of children by 
a church, congregation, or religious society during the period 
used by the church, congregation, or religious society for its 
regular worship; 
    (18) camps licensed by the commissioner of health under 
Minnesota Rules, chapter 4630; 
    (19) mental health outpatient services for adults with 
mental illness or children with emotional disturbance; or 
    (20) residential programs serving school-age children whose 
sole purpose is cultural or educational exchange, until the 
commissioner adopts appropriate rules; 
    (21) unrelated individuals who provide out-of-home respite 
care services to persons with mental retardation or related 
conditions from a single related family for no more than 30 days 
in a 12-month period and the respite care services are for the 
temporary relief of the person's family or legal representative; 
    (22) respite care services provided as a home- and 
community-based service to a person with mental retardation or a 
related condition, in the person's primary residence; or 
    (23) community support services programs as defined in 
section 245.462, subdivision 6, and family community support 
services as defined in section 245.4871, subdivision 17. 
    For purposes of clause (5), the department of education, 
after consulting with the department of human services, shall 
adopt standards applicable to preschool programs administered by 
public schools that are similar to Minnesota Rules, parts 
9503.005 to 9503.0175.  These standards are exempt from 
rulemaking under chapter 14. 
    Sec. 10.  Minnesota Statutes 1991 Supplement, section 
245A.04, subdivision 3, is amended to read: 
    Subd. 3.  [STUDY OF THE APPLICANT.] (a) Before the 
commissioner issues a license, the commissioner shall conduct a 
study of the individuals specified in clauses (1) to (4) 
according to rules of the commissioner.  The applicant, license 
holder, the bureau of criminal apprehension, and county 
agencies, after written notice to the individual who is the 
subject of the study, shall help with the study by giving the 
commissioner criminal conviction data and reports about abuse or 
neglect of adults in licensed programs substantiated under 
section 626.557 and the maltreatment of minors in licensed 
programs substantiated under section 626.556.  The individuals 
to be studied shall include: 
     (1) the applicant; 
     (2) persons over the age of 13 living in the household 
where the licensed program will be provided; 
     (3) current employees or contractors of the applicant who 
will have direct contact with persons served by the program; and 
      (4) volunteers who have direct contact with persons served 
by the program to provide program services, if the contact is 
not directly supervised by the individuals listed in clause (1) 
or (3). 
      The juvenile courts shall also help with the study by 
giving the commissioner existing juvenile court records on 
individuals described in clause (2) relating to delinquency 
proceedings held within either the five years immediately 
preceding the application or the five years immediately 
preceding the individual's 18th birthday, whichever time period 
is longer.  The commissioner shall destroy juvenile records 
obtained pursuant to this subdivision when the subject of the 
records reaches age 23.  
      For purposes of this subdivision, "direct contact" means 
providing face-to-face care, training, supervision, counseling, 
consultation, or medication assistance to persons served by a 
program.  For purposes of this subdivision, "directly supervised"
means an individual listed in clause (1) or (3) is within sight 
or hearing of a volunteer to the extent that the individual 
listed in clause (1) or (3) is capable at all times of 
intervening to protect the health and safety of the persons 
served by the program who have direct contact with the volunteer.
      A study of an individual in clauses (1) to (4) shall be 
conducted on at least an annual basis.  No applicant, license 
holder, or individual who is the subject of the study shall pay 
any fees required to conduct the study.  
      (b) The individual who is the subject of the study must 
provide the applicant or license holder with sufficient 
information to ensure an accurate study including the 
individual's first, middle, and last name; home address, city, 
county, and state of residence; zip code; sex; date of birth; 
and driver's license number.  The applicant or license holder 
shall provide this information about an individual in paragraph 
(a), clauses (1) to (4), on forms prescribed by the 
commissioner.  The commissioner may request additional 
information of the individual, which shall be optional for the 
individual to provide, such as the individual's social security 
number or race. 
      (c) Except for child foster care, adult foster care, and 
family day care homes, a study must include information from the 
county agency's record of substantiated abuse or neglect of 
adults in licensed programs, and the maltreatment of minors in 
licensed programs, information from juvenile courts as required 
in paragraph (a) for persons listed in paragraph (a), clause 
(2), and information from the bureau of criminal apprehension.  
For child foster care, adult foster care, and family day care 
homes, the study must include information from the county 
agency's record of substantiated abuse or neglect of adults, and 
the maltreatment of minors, information from juvenile courts as 
required in paragraph (a) for persons listed in paragraph (a), 
clause (2), and information from the bureau of criminal 
apprehension.  The commissioner may also review arrest and 
investigative information from the bureau of criminal 
apprehension, a county attorney, county sheriff, county agency, 
local chief of police, other states, the courts, or a national 
criminal record repository if the commissioner has reasonable 
cause to believe the information is pertinent to the 
disqualification of an individual listed in paragraph (a), 
clauses (1) to (4). 
    (d) An applicant's or license holder's failure or refusal 
to cooperate with the commissioner is reasonable cause to deny 
an application or immediately suspend, suspend, or revoke a 
license.  Failure or refusal of an individual to cooperate with 
the study is just cause for denying or terminating employment of 
the individual if the individual's failure or refusal to 
cooperate could cause the applicant's application to be denied 
or the license holder's license to be immediately suspended, 
suspended, or revoked. 
    (e) The commissioner shall not consider an application to 
be complete until all of the information required to be provided 
under this subdivision has been received.  
    (f) No person in paragraph (a), clause (1), (2), (3), or 
(4) who is disqualified as a result of this section may be 
retained by the agency in a position involving direct contact 
with persons served by the program. 
    (g) The commissioner shall not implement the procedures 
contained in this subdivision until appropriate rules have been 
adopted, except for the applicants and license holders for child 
foster care, adult foster care, and family day care homes. 
    (h) Termination of persons in paragraph (a), clause (1), 
(2), (3), or (4) made in good faith reliance on a notice of 
disqualification provided by the commissioner shall not subject 
the applicant or license holder to civil liability. 
    (i) (h) The commissioner may establish records to fulfill 
the requirements of this section.  The information contained in 
the records is only available to the commissioner for the 
purpose authorized in this section.  
    (j) (i) The commissioner may not disqualify an individual 
subject to a study under this section because that person has, 
or has had, a mental illness as defined in section 245.462, 
subdivision 20. 
    Sec. 11.  Minnesota Statutes 1990, section 245A.07, 
subdivision 2, is amended to read: 
    Subd. 2.  [IMMEDIATE SUSPENSION IN CASES OF IMMINENT DANGER 
TO HEALTH, SAFETY, OR RIGHTS.] If the license holder's failure 
to comply with applicable law or rule has placed the health, 
safety, or rights of persons served by the program in imminent 
danger, the commissioner shall act immediately to suspend the 
license.  No state funds shall be made available or be expended 
by any agency or department of state, county, or municipal 
government for use by a license holder regulated under sections 
245A.01 to 245A.16 while a license is under immediate 
suspension.  A notice stating the reasons for the immediate 
suspension and informing the license holder of the right to a 
contested case hearing under chapter 14 must be delivered by 
personal service to the address shown on the application or the 
last known address of the license holder.  The license holder 
may appeal an order immediately suspending a license by 
notifying the commissioner.  The appeal of an order immediately 
suspending a license must be made in writing by certified mail 
and must be received by the commissioner within five calendar 
days after receiving the license holder receives notice that the 
license has been immediately suspended.  A license holder and 
any controlling individual shall discontinue operation of the 
program upon receipt of the commissioner's order to immediately 
suspend the license. 
    Sec. 12.  Minnesota Statutes 1990, section 245A.07, 
subdivision 3, is amended to read: 
    Subd. 3.  [SUSPENSION, REVOCATION, PROBATION.] The 
commissioner may suspend, revoke, or make probationary a license 
if a license holder fails to comply fully with applicable laws 
or rules.  A license holder who has had a license suspended, 
revoked, or made probationary must be given notice of the action 
by certified mail.  The notice must be mailed to the address 
shown on the application or the last known address of the 
license holder.  The notice must state the reasons the license 
was suspended, revoked, or made probationary. 
    (a) If the license was suspended or revoked, the notice 
must inform the license holder of the right to a contested case 
hearing under chapter 14.  The license holder may appeal an 
order suspending or revoking a license by notifying the 
commissioner.  The appeal of an order suspending or revoking a 
license must be made in writing by certified mail and must be 
received by the commissioner within ten calendar days 
after receiving the license holder receives notice that the 
license has been suspended or revoked.  
    (b) If the license was made probationary, the notice must 
inform the license holder of the right to request a 
reconsideration by the commissioner.  The request for 
reconsideration must be made in writing by certified mail and 
must be received by the commissioner within ten calendar days 
after receiving the license holder receives notice that the 
license has been made probationary.  The license holder may 
submit with the request for reconsideration written argument or 
evidence in support of the request for reconsideration.  The 
commissioner's disposition of a request for reconsideration is 
final and is not subject to appeal under chapter 14.  
    Sec. 13.  [245A.091] [EXEMPTION FROM CERTAIN RULE PARTS 
GOVERNING RESIDENTIAL PROGRAMS FOR PERSONS WITH MENTAL 
RETARDATION OR RELATED CONDITIONS.] 
    A Minnesota residential program certified under federal 
standards by the department of health as an intermediate care 
facility for persons with mental retardation or related 
conditions is exempt from the following Minnesota Rules parts: 
    (1) part 9525.0235, subparts 4; 6; 7; 8; 10, items A and B; 
and 12 to 15; 
    (2) part 9525.0243; 
    (3) part 9525.0245, subparts 2, items A, C, D, E, F; 4 to 
7; and 9; 
    (4) part 9525.0255, subparts 1, items B, D, and F; and 3; 
    (5) part 9525.0265, subparts 1, items A and C; 3, items A 
to F; 5; and 8, items A and B; 
    (6) part 9525.0275; 
    (7) part 9525.0285, subparts 2 and 3; 
    (8) part 9525.0295, subparts 5, item B, subitem (3); and 6; 
    (9) part 9525.0305, subparts 2; 3, items C, E, and F; and 
5; 
    (10) part 9525.0315, subparts 1; 2; and 3, items A to D; 
    (11) part 9525.0325, subpart 3, items A, D to G, and I to 
K; 
    (12) part 9525.0335, items C, E, F, H to J, and K, subitems 
(2) and (3); and 
    (13) part 9525.0345, subparts 1, item B, subitem (2); 2, 
item A; 3 to 5; and 6, items A and B. 
    Sec. 14.  Minnesota Statutes 1990, section 245A.11, is 
amended to read: 
    245A.11 [SPECIAL CONDITIONS FOR RESIDENTIAL PROGRAMS.] 
    Subdivision 1.  [POLICY STATEMENT.] It is the policy of the 
state that persons shall not be excluded by municipal zoning 
ordinances or other land use regulations from the benefits of 
normal residential surroundings. 
    Subd. 2.  [PERMITTED SINGLE-FAMILY RESIDENTIAL USE.] 
Residential programs with a licensed capacity of six or fewer 
persons shall be considered a permitted single-family 
residential use of property for the purposes of zoning and other 
land use regulations.  Programs otherwise allowed under this 
subdivision shall not be prohibited by operation of restrictive 
covenants or similar restrictions, regardless of when entered 
into, which cannot be met because of the nature of the licensed 
program, including provisions which require the home's occupants 
be related, and that the home must be occupied by the owner, or 
similar provisions. 
    Subd. 2a.  [ADULT FOSTER CARE LICENSE CAPACITY.] An adult 
foster care license holder may have a maximum license capacity 
of five if all persons in care are age 60 or over and who do not 
have a serious and persistent mental illness or a developmental 
disability.  A license holder who is incorporated as a business 
may operate a maximum of two programs with a licensed capacity 
of five in each program. 
    Subd. 2b.  [ADULT FOSTER CARE; FAMILY ADULT DAY CARE.] An 
adult foster care license holder licensed under the conditions 
in subdivision 2a may also provide family adult day care for 
adults age 60 or over if no persons in the adult foster or adult 
family day care program have a serious and persistent mental 
illness or a developmental disability.  The maximum combined 
capacity for adult foster care and family adult day care is five 
adults.  A separate license is not required to provide family 
adult day care under this subdivision.  Adult foster care homes 
providing services to five adults under this section shall not 
be subject to licensure by the commissioner of health under the 
provisions of chapter 144, 144A, 157, or any other law requiring 
facility licensure by the commissioner of health. 
    Subd. 3.  [PERMITTED MULTIFAMILY RESIDENTIAL USE.] Unless 
otherwise provided in any town, municipal, or county zoning 
regulation, a licensed residential program with a licensed 
capacity of seven to 16 adults or children persons shall be 
considered a permitted multifamily residential use of property 
for the purposes of zoning and other land use regulations.  A 
town, municipal, or county zoning authority may require a 
conditional use or special use permit to assure proper 
maintenance and operation of a residential program.  Conditions 
imposed on the residential program must not be more restrictive 
than those imposed on other conditional uses or special uses of 
residential property in the same zones, unless the additional 
conditions are necessary to protect the health and safety of the 
adults or children persons being served by the program.  Nothing 
in sections 245A.01 to 245A.16 shall be construed to exclude or 
prohibit residential programs from single-family zones if 
otherwise permitted by local zoning regulations. 
    Subd. 4.  [LOCATION OF RESIDENTIAL PROGRAMS.] In 
determining whether to grant a license, the commissioner shall 
specifically consider the population, size, land use plan, 
availability of community services, and the number and size of 
existing licensed residential programs in the town, 
municipality, or county in which the applicant seeks to operate 
a residential program.  The commissioner shall not grant an 
initial license to any residential program if the residential 
program will be within 1,320 feet of an existing residential 
program unless one of the following conditions apply:  (1) the 
existing residential program is located in a hospital licensed 
by the commissioner of health; or (2) the town, municipality, or 
county zoning authority grants the residential program a 
conditional use or special use permit.  In cities of the first 
class, this subdivision applies even if a residential program is 
considered a permitted single-family residential use of property 
under subdivision 2.  Foster care homes are exempt from this 
subdivision; (3) the program serves six or fewer persons and is 
not located in a city of the first class; or (4) the program is 
foster care. 
    Subd. 5.  [OVERCONCENTRATION AND DISPERSAL.] (a) Before 
January 1, 1985, each county having two or more group 
residential programs within 1,320 feet of each other shall 
submit to the department of human services a plan to promote 
dispersal of group residential programs.  In formulating its 
plan, the county shall solicit the participation of affected 
persons, programs, municipalities having highly concentrated 
residential program populations, and advocacy groups.  For the 
purposes of this subdivision, "highly concentrated" means having 
a population in residential programs serving seven or more 
persons that exceeds one-half of one percent of the population 
of a recognized planning district or other administrative 
subdivision. 
    (b) Within 45 days after the county submits the plan, the 
commissioner shall certify whether the plan fulfills the 
purposes and requirements of this subdivision including the 
following requirements: 
    (1) a new program serving seven or more persons must not be 
located in any recognized planning district or other 
administrative subdivision where the population in residential 
programs is highly concentrated; 
    (2) the county plan must promote dispersal of highly 
concentrated residential program populations; 
    (3) the county plan shall promote the development of 
residential programs in areas that are not highly concentrated; 
    (4) no person in a residential program shall be displaced 
as a result of this section until a relocation plan has been 
implemented that provides for an acceptable alternative 
placement; 
    (5) if the plan provides for the relocation of residential 
programs, the relocation must be completed by January 1, 1990.  
If the commissioner certifies that the plan does not do so, the 
commissioner shall state the reasons, and the county has 30 days 
to submit a plan amended to comply with the requirements of the 
commissioner. 
    (c) After July 1, 1985, the commissioner may reduce grants 
under section 245.73 to a county required to have an approved 
plan under paragraph (a) if the county does not have a plan 
approved by the commissioner or if the county acts in 
substantial disregard of its approved plan.  The county board 
has the right to be provided with advance notice and to appeal 
the commissioner's decision.  If the county requests a hearing 
within 30 days of the notification of intent to reduce grants, 
the commissioner shall not certify any reduction in grants until 
a hearing is conducted and a decision made in accordance with 
the contested case provisions of chapter 14. 
    Subd. 5a.  [INTEGRATION OF RESIDENTIAL PROGRAMS.] The 
commissioner of human services shall seek input from counties 
and municipalities on methods for integrating all residential 
programs into the community. 
    Subd. 6.  [HOSPITALS; EXEMPTION.] Residential programs 
located in hospitals shall be exempt from the provisions of this 
section. 
    Sec. 15.  Minnesota Statutes 1990, section 245A.13, 
subdivision 4, is amended to read: 
    Subd. 4.  [FEE.] A receiver appointed under an involuntary 
receivership or the managing agent is entitled to a reasonable 
fee as determined by the court.  The fee is governed by section 
256B.495. 
    Sec. 16.  Minnesota Statutes 1991 Supplement, section 
245A.16, subdivision 1, is amended to read: 
    Subdivision 1.  [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 
County agencies and private agencies that have been designated 
or licensed by the commissioner to perform licensing functions 
and activities under section 245A.04, to recommend denial of 
applicants under section 245A.05, to issue correction orders, to 
issue variances, and recommend fines under section 245A.06, or 
to recommend suspending, revoking, and making licenses 
probationary under section 245A.07, shall comply with rules and 
directives of the commissioner governing those functions and 
with this section. 
    (b) By January 1, 1991, the commissioner shall study and 
make recommendations to the legislature regarding the licensing 
and provision of support services to child foster homes.  In 
developing the recommendations, the commissioner shall consult 
licensed private agencies, county agencies, and licensed foster 
home providers. 
    (c) For family day care programs, the commissioner may 
authorize licensing reviews every two years after a licensee has 
had at least one annual review. 
    Sec. 17.  [245A.19] [HIV TRAINING IN CHEMICAL DEPENDENCY 
TREATMENT PROGRAM.] 
    (a) Applicants and license holders for chemical dependency 
residential and nonresidential programs must demonstrate 
compliance with HIV minimum standards prior to their application 
being complete.  The HIV minimum standards contained in the 
HIV-1 Guidelines for chemical dependency treatment and care 
programs in Minnesota are not subject to rulemaking. 
    (b) Ninety days after enactment of this section, the 
applicant or license holder shall orient all chemical dependency 
treatment staff and clients to the HIV minimum standards.  
Thereafter, orientation shall be provided to all staff and 
clients, within 72 hours of employment or admission to the 
program.  In-service training shall be provided to all staff on 
at least an annual basis and the license holder shall maintain 
records of training and attendance. 
    (c) The license holder shall maintain a list of referral 
sources for the purpose of making necessary referrals of clients 
to HIV-related services.  The list of referral services shall be 
updated at least annually. 
    (d) Written policies and procedures, consistent with HIV 
minimum standards, shall be developed and followed by the 
license holder.  All policies and procedures concerning HIV 
minimum standards shall be approved by the commissioner.  The 
commissioner shall provide training on HIV minimum standards to 
applicants. 
    (e) The commissioner may permit variances from the 
requirements in this section.  License holders seeking variances 
must follow the procedures in section 245A.04, subdivision 9. 
    Sec. 18.  [246.0135] [OPERATION OF REGIONAL TREATMENT 
CENTERS.] 
    The commissioner of human services is prohibited from 
closing any regional treatment center or state-operated nursing 
home or any program at any of the regional treatment centers or 
state-operated nursing homes, without specific legislative 
authorization.  For persons with mental retardation or related 
conditions who move from one regional treatment center to 
another regional treatment center, the provisions of section 
256B.092, subdivision 10, must be followed for both the 
discharge from one regional treatment center and admission to 
another regional treatment center, except that the move is not 
subject to the consensus requirement of section 256B.092, 
subdivision 10, paragraph (b). 
    Sec. 19.  Minnesota Statutes 1991 Supplement, section 
251.011, subdivision 3, is amended to read: 
    Subd. 3.  [AH-GWAH-CHING CENTER.] When tuberculosis 
treatment is discontinued at Ah-Gwah-Ching that facility may 
shall be used by the commissioner of human services for the care 
of geriatric patients, and shall be known as the Ah-Gwah-Ching 
Center.  The commissioner shall not decrease the number of 
nursing home beds nor close the Ah-Gwah-Ching Center without 
specific approval by the legislature. 
    Sec. 20.  Minnesota Statutes 1990, section 252.025, 
subdivision 4, is amended to read: 
    Subd. 4.  [STATE-PROVIDED SERVICES.] (a) It is the policy 
of the state to capitalize and recapitalize the regional 
treatment centers as necessary to prevent depreciation and 
obsolescence of physical facilities and to ensure they retain 
the physical capability to provide residential programs.  
Consistent with that policy and with section 252.50, and within 
the limits of appropriations made available for this purpose, 
the commissioner may establish, by June 30, 1991, the following 
state-operated, community-based programs for the least 
vulnerable regional treatment center residents:  at Brainerd 
regional services center, two residential programs and two day 
programs; at Cambridge regional treatment center, four 
residential programs and two day programs; at Faribault regional 
treatment center, ten residential programs and six day programs; 
at Fergus Falls regional treatment center, two residential 
programs and one day program; at Moose Lake regional treatment 
center, four residential programs and two day programs; and at 
Willmar regional treatment center, two residential programs and 
one day program. 
    (b) By January 15, 1991, the commissioner shall report to 
the legislature a plan to provide continued regional treatment 
center capacity and state-operated, community-based residential 
and day programs for persons with developmental disabilities at 
Brainerd, Cambridge, Faribault, Fergus Falls, Moose Lake, St. 
Peter, and Willmar, as follows: 
    (1) by July 1, 1998, continued regional treatment center 
capacity to serve 350 persons with developmental disabilities as 
follows:  at Brainerd, 80 persons; at Cambridge, 12 persons; at 
Faribault, 110 persons; at Fergus Falls, 60 persons; at Moose 
Lake, 12 persons; at St. Peter, 35 persons; at Willmar, 25 
persons; and up to 16 crisis beds in the Twin Cities 
metropolitan area; and 
    (2) by July 1, 1999, continued regional treatment center 
capacity to serve 254 persons with developmental disabilities as 
follows:  at Brainerd, 57 persons; at Cambridge, 12 persons; at 
Faribault, 80 persons; at Fergus Falls, 35 persons; at Moose 
Lake, 12 persons; at St. Peter, 30 persons; at Willmar, 12 
persons, and up to 16 crisis beds in the Twin Cities 
metropolitan area.  In addition, the plan shall provide for the 
capacity to provide residential services to 570 persons with 
developmental disabilities in 95 state-operated, community-based 
residential programs. 
    The commissioner is subject to a mandamus action under 
chapter 586 for any failure to comply with the provisions of 
this subdivision. 
    Sec. 21.  Minnesota Statutes 1991 Supplement, 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 at least every four years, the 
need, location, size, and program of public and private 
residential services and day training and habilitation services 
for persons with mental retardation or related conditions.  This 
subdivision does not apply to semi-independent living services 
and residential-based habilitation services provided to four or 
fewer persons at a site funded as home and community-based 
services. 
    Sec. 22.  Minnesota Statutes 1991 Supplement, section 
252.50, subdivision 2, is amended to read: 
    Subd. 2.  [AUTHORIZATION TO BUILD OR PURCHASE.] Within the 
limits of available appropriations, the commissioner may build, 
purchase, or lease suitable buildings for state-operated, 
community-based programs.  The commissioner must develop the 
state-operated community residential facilities authorized in 
the worksheets of the house appropriations and senate finance 
committees.  If financing through state general obligation bonds 
is not available, the commissioner shall finance the purchase or 
construction of state-operated, community-based facilities with 
the Minnesota housing finance agency.  The commissioner shall 
make payments through the department of administration to the 
Minnesota housing finance agency in repayment of mortgage loans 
granted for the purposes of this section.  Programs must be 
adaptable to the needs of persons with mental retardation or 
related conditions and residential programs must be homelike. 
    Sec. 23.  Minnesota Statutes 1990, section 254A.03, 
subdivision 2, is amended to read: 
    Subd. 2.  [AMERICAN INDIAN PROGRAMS.] There is hereby 
created a section of American Indian programs, within the 
alcohol and drug abuse section of the department of human 
services, the position of to be headed by a special assistant 
for American Indian programs on alcoholism and drug abuse and an 
assistant to that position.  The section shall be staffed with 
all personnel necessary to fully administer programming for 
alcohol and drug abuse for American Indians in the state.  The 
special assistant position shall be filled by a person with 
considerable practical experience in and understanding of 
alcohol and other drug abuse problems in the American Indian 
community, who shall be responsible to the director of the 
alcohol and drug abuse section created in subdivision 1 and 
shall be in the unclassified service.  The special assistant 
shall meet with the American Indian advisory council as 
described in section 254A.035 and serve as a liaison to the 
Minnesota Indian affairs council to report on the status of 
alcohol and other drug abuse among American Indians in the state 
of Minnesota.  The special assistant with the approval of the 
director shall: 
    (a) Administer funds appropriated for American Indian 
groups, organizations and reservations within the state for 
American Indian alcoholism and drug abuse programs.  
    (b) Establish policies and procedures for such American 
Indian programs with the assistance of the American Indian 
advisory board. 
    (c) Hire and supervise staff to assist in the 
administration of the American Indian program section within the 
alcohol and drug abuse section of the department of human 
services. 
    Sec. 24.  Minnesota Statutes 1991 Supplement, section 
254B.04, subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY.] (a) Persons eligible for 
benefits under Code of Federal Regulations, title 25, part 20, 
persons eligible for medical assistance benefits under sections 
256B.055 and 256B.056 or who meet the income standards of 
section 256B.056, subdivision 4, and persons eligible for 
general assistance medical care under section 256D.03, 
subdivision 3, are entitled to chemical dependency fund services.
State money appropriated for this paragraph must be placed in a 
separate account established for this purpose. 
    (b) A person not entitled to services under paragraph (a), 
but with family income that is less than 60 percent of the state 
median income for a family of like size and composition, shall 
be eligible to receive chemical dependency fund services within 
the limit of funds available after persons entitled to services 
under paragraph (a) have been served.  A county may spend money 
from its own sources to serve persons under this paragraph.  
State money appropriated for this paragraph must be placed in a 
separate account established for this purpose. 
     (c) Persons whose income is between 60 percent and 115 
percent of the state median income shall be eligible for 
chemical dependency services on a sliding fee basis, within the 
limit of funds available, after persons entitled to services 
under paragraph (a) and persons eligible for services under 
paragraph (b) have been served.  Persons eligible under this 
paragraph must contribute to the cost of services according to 
the sliding fee scale established under subdivision 3.  A county 
may spend money from its own sources to provide services to 
persons under this paragraph.  State money appropriated for this 
paragraph must be placed in a separate account established for 
this purpose. 
    (d) Notwithstanding the provisions of paragraphs (b) and 
(c), state funds appropriated to serve persons who are not 
entitled under the provisions of paragraph (a), shall be 
expended for chemical dependency treatment services for 
nonentitled but eligible persons who have children in their 
household, are pregnant, or are younger than 18 years old.  
These persons may have household incomes up to 60 percent of the 
state median income.  Any funds in addition to the amounts 
necessary to serve the persons identified in this paragraph 
shall be expended according to the provisions of paragraphs (b) 
and (c).  
    Sec. 25.  Minnesota Statutes 1990, section 256B.0625, is 
amended by adding a subdivision to read: 
    Subd. 20a.  [CASE MANAGEMENT FOR PERSONS WITH MENTAL 
RETARDATION OR A RELATED CONDITION.] To the extent defined in 
the state Medicaid plan, case management service activities for 
persons with mental retardation or a related condition as 
defined in section 256B.092, and rules promulgated thereunder, 
are covered services under medical assistance.  
    Sec. 26.  Minnesota Statutes 1990, section 256B.092, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [MEDICAL ASSISTANCE FOR CASE MANAGEMENT 
ACTIVITIES UNDER THE STATE PLAN MEDICAID OPTION.] Upon receipt 
of federal approval, the commissioner shall make payments to 
approved vendors of case management services participating in 
the medical assistance program to reimburse costs for providing 
case management service activities to medical assistance 
eligible persons with mental retardation or a related condition, 
in accordance with the state Medicaid plan and federal 
requirements and limitations. 
     Sec. 27.  Minnesota Statutes 1991 Supplement, section 
256B.092, subdivision 7, is amended to read: 
    Subd. 7.  [SCREENING TEAMS.] For persons with mental 
retardation or a related condition, screening teams shall be 
established which shall evaluate the need for the level of care 
provided by residential-based habilitation services, residential 
services, training and habilitation services, and nursing 
facility services.  The evaluation shall address whether home- 
and community-based services are appropriate for persons who are 
at risk of placement in an intermediate care facility for 
persons with mental retardation or related conditions, or for 
whom there is reasonable indication that they might require this 
level of care.  The screening team shall make an evaluation of 
need within 15 working days of the date that the assessment is 
completed or within 60 working days of a request for service by 
a person with mental retardation or related conditions, 
whichever is the earlier, and within five working days of an 
emergency admission of a person to an intermediate care facility 
for persons with mental retardation or related conditions.  The 
screening team shall consist of the case manager for persons 
with mental retardation or related conditions, the person, the 
person's legal guardian or conservator, or the parent if the 
person is a minor, and a qualified mental retardation 
professional, as defined in the Code of Federal Regulations, 
title 42, section 483.430, as amended through June 3, 1988.  The 
case manager may also act as the qualified mental retardation 
professional if the case manager meets the federal definition.  
County social service agencies may contract with a public or 
private agency or individual who is not a service provider for 
the person for the public guardianship representation required 
by the screening or individual service planning process.  The 
contract shall be limited to public guardianship representation 
for the screening and individual service planning activities.  
The contract shall require compliance with the commissioner's 
instructions and may be for paid or voluntary services.  For 
persons 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 person's physician, other health 
professionals or other individuals as necessary to make this 
evaluation.  For persons under the jurisdiction of a 
correctional agency, the case manager must consult with the 
corrections administrator regarding additional health, safety, 
and supervision needs.  The case manager, with the concurrence 
of the person, the person's legal guardian or conservator, or 
the parent if the person is a minor, may invite other 
individuals 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.  Nothing in this section shall be 
construed as requiring the screening team meeting to be separate 
from the service planning meeting. 
    Sec. 28.  Minnesota Statutes 1990, section 256B.501, is 
amended by adding a subdivision to read: 
     Subd. 4a.  [INCLUSION OF HOME CARE COSTS IN WAIVER 
RATES.] The commissioner shall adjust the limits of the 
established average daily reimbursement rates for waivered 
services to include the cost of home care services that may be 
provided to waivered services recipients.  This adjustment must 
be used to maintain or increase services and shall not be used 
by county agencies for inflation increases for waivered services 
vendors.  Home care services referenced in this section are 
those listed in section 256B.0627, subdivision 2.  The average 
daily reimbursement rates established in accordance with the 
provisions of this subdivision apply only to the combined 
average, daily costs of waivered and home care services and do 
not change home care limitations under section 256B.0627.  
Waivered services recipients receiving home care as of June 30, 
1992, shall not have the amount of their services reduced as a 
result of this section.  
    Sec. 29.  Minnesota Statutes 1990, section 256B.501, is 
amended by adding a subdivision to read: 
    Subd. 4b.  [WAIVER RATES AND GROUP RESIDENTIAL HOUSING 
RATES.] The average daily reimbursement rates established by the 
commissioner for waivered services shall be adjusted to include 
the additional costs of services eligible for waiver funding 
under title XIX of the Social Security Act and for which there 
is no group residential housing payment available as a result of 
the payment limitations set forth in section 256I.05, 
subdivision 10.  The adjustment to the waiver rates shall be 
based on county reports of service costs that are no longer 
eligible for group residential housing payments.  No adjustment 
shall be made for any amount of reported payments that prior to 
July 1, 1992, exceeded the group residential housing rate limits 
established in section 256I.05 and were reimbursed through 
county funds.  
     Sec. 30.  Minnesota Statutes 1990, section 256C.28, 
subdivision 2, is amended to read: 
    Subd. 2.  [REMOVAL; VACANCIES; EXPIRATION.] The 
compensation, removal of members, and filling of vacancies on 
the council are as provided in section 15.0575.  The council 
expires as provided in section 15.059, subdivision 5. 
    Sec. 31.  Minnesota Statutes 1990, section 256C.28, 
subdivision 3, is amended to read: 
    Subd. 3.  [DUTIES.] The council shall: 
    (1) advise the commissioner, the governor, and the 
legislature, and the commissioners of the departments of human 
services, education, jobs and training, and health on the nature 
of the issues and disabilities confronting hearing impaired 
persons in Minnesota; 
    (2) advise the commissioner, the governor, and the 
legislature, and the commissioners of the departments of human 
services, education, jobs and training, and health on the 
development of policies, programs, and services affecting 
hearing impaired persons, and on the use of appropriate federal 
and state money; 
    (3) create a public awareness of the special needs and 
potential of hearing impaired persons; 
    (4) provide the commissioner, the governor, and the 
legislature, and the commissioners of the departments of human 
services, education, jobs and training, and health with a review 
of ongoing services, programs, and proposed legislation 
affecting hearing impaired persons; 
    (5) advise the commissioner, the governor, and the 
legislature, and the commissioners of the departments of human 
services, education, jobs and training, and health on statutes 
or rules necessary to ensure that hearing impaired persons have 
access to benefits and services provided to individuals in 
Minnesota; 
    (6) recommend to the commissioner, the governor, and the 
legislature, and the commissioners of the departments of human 
services, education, jobs and training, and health legislation 
designed to improve the economic and social conditions of 
hearing impaired persons in Minnesota; 
    (7) propose solutions to problems of hearing impaired 
persons in the areas of education, employment, human rights, 
human services, health, housing, and other related programs; 
    (8) recommend to the governor and the legislature any 
needed revisions in the state's affirmative action program and 
any other steps necessary to eliminate the underemployment or 
unemployment of hearing impaired persons in the state's work 
force; 
     (9) work with other state and federal agencies and 
organizations to promote economic development for hearing 
impaired Minnesotans; and 
     (10) coordinate its efforts with other state and local 
agencies serving hearing impaired persons. 
    Sec. 32.  Minnesota Statutes 1990, section 256E.14, is 
amended to read: 
    256E.14 [GRANTS FOR CASE MANAGEMENT FOR PERSONS WITH MENTAL 
RETARDATION OR RELATED CONDITIONS.] 
    For the biennium ending June 30, 1991, The commissioner 
shall distribute to counties the appropriation made available 
under this section for case management services for persons with 
mental retardation or related conditions as follows: 
    (1) one-half of the appropriation must be distributed to 
the counties according to the formula in section 256E.06, 
subdivision 1; and 
    (2) one-half of as provided in this section.  The 
appropriation must be distributed to the counties on the basis 
of the number of persons with mental retardation or a related 
condition that were receiving case management services from the 
county on the January 1 preceding the start of the fiscal year 
in which the funds are distributed.  The appropriation may be 
reduced by the amount necessary to meet the state match for 
medical reimbursement under section 256B.092, subdivision 2a. 
    Sec. 33.  Minnesota Statutes 1990, section 299F.011, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [FAMILY OR GROUP FAMILY DAY CARE HOME 
REGULATION.] (a) Notwithstanding any contrary provision of this 
section, the fire marshal shall not adopt or enforce a rule:  
    (1) establishing staff ratios, age distribution 
requirements, and limitations on the number of children in care; 
    (2) regulating the means of egress from family or group 
family day care homes in addition to the egress rules that apply 
to the home as a single family dwelling; or 
    (3) confining family or group family day care home 
activities to the floor of exit discharge.  
    (b) For purposes of this subdivision, "family or group 
family day care home" means a dwelling unit in which the day 
care provider provides the services referred to in section 
245A.02, subdivision 10, to one or more persons.  
    (c) Nothing in this subdivision prohibits the department of 
human services from adopting or enforcing rules regulating day 
care, including the subjects in subdivision 4a, clauses (1) and 
(3).  The department may not, however, adopt or enforce a rule 
stricter than subdivision 4a, clause (2).  
    (d) The department of human services may by rule adopt 
procedures for requesting the state fire marshal or a local fire 
marshal to conduct an inspection of day care homes to ensure 
compliance with state or local fire codes.  
    (e) The commissioners of public safety and human services 
may enter into an agreement for the commissioner of human 
services to perform follow-up inspections of programs, subject 
to licensure under section 245A, to determine whether certain 
violations cited by the state fire marshal have been corrected.  
The agreement shall identify specific items the commissioner of 
human services is permitted to inspect.  The list of items is 
not subject to rulemaking and may be changed by mutual agreement 
between the state fire marshal and the commissioner.  The 
agreement shall provide for training of individuals who will 
conduct follow-up inspections.  The agreement shall contain 
procedures for the commissioner of human services to follow when 
the commissioner requires assistance from the state fire marshal 
to carry out the duties of the agreement.  
    (f) No tort liability is transferred to the commissioner of 
human services as a result of the commissioner of human services 
performing activities within the limits of the agreement. 
    Sec. 34.  Minnesota Statutes 1990, section 363.071, is 
amended by adding a subdivision to read: 
    Subd. 7.  [LITIGATION AND HEARING COSTS.] The 
administrative law judge shall order a respondent who is 
determined to have engaged in an unfair discriminatory practice 
to reimburse the department and the attorney general for all 
appropriate litigation and hearing costs expended in preparing 
for and conducting the hearing, unless payment of the costs 
would impose a financial hardship on the respondent.  
Appropriate costs include but are not limited to the costs of 
services rendered by the attorney general, private attorneys if 
engaged by the department, administrative law judges, court 
reporters, and expert witnesses as well as the costs of 
transcripts and other necessary supplies and materials. 
    Sec. 35.  Minnesota Statutes 1990, section 363.14, 
subdivision 2, is amended to read: 
    Subd. 2.  [DISTRICT COURT JURISDICTION.] Any action brought 
pursuant to this section shall be filed in the district court of 
the county wherein the unlawful discriminatory practice is 
alleged to have been committed or where the respondent resides 
or has a principal place of business. 
    Any action brought pursuant to this chapter shall be heard 
and determined by a judge sitting without a jury. 
    If the court finds that the respondent has engaged in an 
unfair discriminatory practice, it shall issue an order 
directing appropriate relief as provided by section 363.071, 
subdivision 2. 
    When the court issues an order providing for payment to the 
state of a civil penalty pursuant to section 363.071, 
subdivision 2, it shall serve a copy of that order upon the 
attorney general at the same time as it makes service upon the 
parties. 
    Sec. 36.  Minnesota Statutes 1990, section 363.14, 
subdivision 3, is amended to read: 
    Subd. 3.  [ATTORNEY'S FEES AND COSTS.] In any action or 
proceeding brought pursuant to this section the court, in its 
discretion, may allow the prevailing party a reasonable 
attorney's fee as part of the costs.  In any case brought by the 
department, the court shall order a respondent who is determined 
to have engaged in an unfair discriminatory practice to 
reimburse the department and the attorney general for all 
appropriate litigation and court costs expended in preparing for 
and conducting the hearing, unless payment of the costs would 
impose a financial hardship on the respondent.  Appropriate 
costs include but are not limited to the costs of services 
rendered by the attorney general, private attorneys if engaged 
by the department, court costs, court reporters, and expert 
witnesses as well as the costs of transcripts and other 
necessary supplies and materials. 
    Sec. 37.  [SPECIAL RATE AND LICENSING EXCEPTION.] 
    Notwithstanding contrary provisions of Minnesota Statutes, 
chapters 144, 157, 245A, and 256B, a facility that on August 1, 
1987, was licensed by the commissioner of health as a boarding 
care facility with 11 or fewer beds and which had at least 75 
percent of its licensed beds occupied by chronically, severely 
impaired, mentally ill individuals who were transferred to the 
facility from a regional treatment center may retain that 
license and must be reimbursed at a rate equal to its documented 
actual costs and known cost changes according to the rate 
formula in effect in 1980, or $50 per resident per day, 
whichever is lower.  This exemption from other rate-setting 
regulations or restrictions continues as long as the proportion 
of the facility's residents who are chronically, severely 
impaired, mentally ill individuals who were transferred to the 
facility from a regional treatment center remains at or above 75 
percent. 
    Sec. 38.  [WAIVERED SERVICES RATE STRUCTURE.] 
    The commissioner of human services shall report to the 
legislature by January 15, 1993, with plans to implement on July 
1, 1993, a rate structure for home- and community-based services 
under title XIX of the Social Security Act which bases funding 
on assessed needs of persons with mental retardation or related 
conditions. 
    Sec. 39.  [MENTAL HEALTH SERVICES DELIVERY SYSTEM PILOT 
PROJECT IN DAKOTA COUNTY.] 
    Subdivision 1.  [AUTHORIZATION FOR PILOT PROJECT.] (a) 
Notwithstanding Minnesota Statutes, section 256E.05, subdivision 
3a, after July 1, 1992, the commissioner of human services shall 
establish a pilot project in Dakota county to test alternatives 
to the delivery of mental health services required under the 
Minnesota comprehensive mental health act, Minnesota Statutes, 
sections 245.461 to 245.486. 
    (b) The pilot project shall be established to design and 
plan an improved mental health services delivery system for 
adults with serious and persistent mental illness that would:  
(1) enhance consumer choice and flexibility; (2) maximize local 
community-based alternatives; (3) support persons in independent 
living arrangements; (4) enhance the person's ability to work; 
(5) ensure the person a place in the community; and (6) enhance 
the development of a strong community-based psychiatric program. 
    (c) By January 1, 1993, the pilot program shall develop a 
comprehensive proposal for integrated program funding which 
would permit flexibility in expenditures based on local needs 
with local control.  The planning process shall include, but not 
be limited to, mental health consumers, health advocacy groups, 
Dakota county, and the department of human services. 
    The integrated funding proposal shall be presented to the 
state legislature for approval prior to implementation on July 
1, 1993. 
    (d) The pilot project may include, but not be limited to, 
issues in the service delivery system relating to: 
    (1) financial assistance from the state and the ability to 
use existing funds flexibly to downsize residential facilities 
for persons with mental illness governed by Minnesota Rules, 
parts 9520.0500 to 9520.0690; 
    (2) joint collaboration or program development projects 
between counties to enhance efficiency and expand program 
opportunities in such areas as mental illness and chemical 
dependency, downsizing of residential facilities for persons 
with mental illness, and residential or supported living 
arrangements for mothers with mental illness and their children; 
    (3) integrated program funding to permit flexibility in 
expenditures based on local needs with local control; 
    (4) flexibility in the delivery of case management 
services; 
    (5) waiver or removal of the rate cap and moratorium on 
negotiated rate facilities; 
    (6) broader usage and additional services to be covered 
under the medical assistance state plan rehabilitation option; 
    (7) prepaid managed health care programs; and 
    (8) commitment of persons under Minnesota Statutes, chapter 
253B, to community facilities and programs. 
    (e) The integrated funding may include current mental 
health expenditures, including maintenance costs, from the 
following sources: 
    (1) general assistance medical care; 
    (2) general assistance; 
    (3) medical assistance; 
    (4) Minnesota supplemental aid; 
    (5) grants for residential services for adults with mental 
illness; 
    (6) grants for community support services programs for 
persons with serious and persistent mental illness; and 
    (7) mental health special project grants. 
    (f) The pilot project shall establish an opportunity to 
expand educational opportunities in the area of community-based 
psychiatry.  The pilot project shall develop and may implement a 
psychiatric residency program at the Dakota Mental Health 
Center, Inc.  The program may train at least one psychiatric 
resident per year.  The program may contract with a psychiatric 
faculty member from a Minnesota medical school who will 
supervise the resident and assist in the development of a strong 
community-based psychiatric program.  
    (g) For purposes of the pilot project, for those persons 
committed under Minnesota Statutes, chapter 253B, and awaiting 
transfer to a regional treatment center, postcommitment costs of 
care will be added to the cost of care as provided for in 
Minnesota Statutes, sections 246.50, subdivision 5, and 246.54.  
    (h) An intergovernmental agreement or contract may be 
developed between the county and state to specify the terms of 
the pilot. 
    (i) Evaluation of the pilot project will be based on 
outcome evaluation criteria negotiated with the county prior to 
implementation of the pilot project. 
    (j) The pilot project shall be implemented after July 1, 
1992. 
    (k) The pilot project shall be completed by July 1, 1997. 
    (l) A report on the pilot project must be completed by 
January 1, 1998, and a report presented to the commissioner.  
    Subd. 2.  [DUTIES OF THE COMMISSIONER.] For purposes of the 
pilot project, the commissioner: 
    (1) shall combine all mental health program and funding 
plans into one comprehensive plan unless otherwise required by 
federal law.  Any mental health expenditures from regional 
treatment center appropriations or any share of expenditures 
from mental health funding used for commitment to or treatment 
in a regional treatment center shall not become part of any 
comprehensive fund or plan; 
    (2) may waive administrative rule requirements for the 
duration of the pilot project status; 
    (3) may exempt the participating county from fiscal 
sanctions for noncompliance with social services requirements in 
laws and rules; and 
    (4) shall recommend legislative changes in the biennial 
state plan if the results of the pilot project indicate the need 
for legislative change. 
    Sec. 40.  [PILOT PROJECT FOR CRISIS SERVICES.] 
    The commissioner may authorize a pilot project to provide 
community-based crisis services for persons with mental 
retardation or related conditions who would otherwise be 
admitted to or are at risk of being admitted to an acute care 
hospital for psychological care.  To make available the facility 
capacity for the pilot project, the commissioner may authorize 
relocation of and alternative services for up to 15 residents of 
an existing intermediate care facility for persons with mental 
retardation or related conditions.  The medical assistance costs 
of the alternative services must not exceed the medical 
assistance costs of services, including day training and 
habilitation services, for the residents at the intermediate 
care facility who are relocated.  The commissioner may adjust 
the program operating costs rate of the facility under Minnesota 
Rules, part 9553.0050, subpart 3, as necessary to implement the 
pilot project.  The project shall serve persons who are the 
responsibility of Hennepin and Carver counties and other 
counties as determined by the commissioner. 
    By January 15, 1994, the commissioner shall report to the 
legislature on the cost effectiveness of the pilot project. 
    Sec. 41.  [ALTERNATIVE SERVICES PILOT PROJECTS.] 
    Subdivision 1.  [ELIGIBLE PERSON.] "Eligible person" means 
a person with mental retardation or related conditions who is 65 
years of age or older.  An eligible person may be under 65 years 
of age if authorized by the commissioner to receive alternative 
services for health or medical reasons. 
    Subd. 2.  [ALTERNATIVE SERVICES 
AUTHORIZED.] Notwithstanding other law to the contrary, the 
commissioner may develop pilot projects that provide 
alternatives to day training and habilitation services for 
persons with mental retardation or related conditions who are 65 
years of age or older.  Before implementing the pilot projects, 
the commissioner shall consult with the board on aging; 
providers of day training and habilitation programs, residential 
programs, state-operated community-based programs, and other 
alternative services for persons with mental retardation or 
related conditions; and other interested persons including 
parents, advocates, and persons who may be considered for 
alternative services.  The commissioner shall select as pilot 
project vendors only current providers of day training and 
habilitation programs, residential programs, state-operated 
community-based programs, or other alternative programs. 
    Subd. 3.  [ALTERNATIVE SERVICES PARTICIPATION.] No more 
than 30 persons may receive alternative services under the pilot 
projects, and participants must be selected as follows:  no more 
than seven persons from day training and habilitation programs; 
no more than seven persons from state-operated community-based 
programs; no more than seven persons from residential programs; 
and no more than nine persons from other community-integrated 
programs.  Alternative services may be provided by a person's 
residential program provider only after other alternative 
services have been considered and determined not to meet the 
person's needs. 
    Subd. 4.  [ADVISORY COMMITTEE.] The commissioner shall 
convene an advisory committee consisting of persons concerned 
with and affected by the alternative services pilot projects and 
the effect of the projects on existing services to evaluate the 
alternative services pilot projects.  The commissioner shall 
report the advisory committee's evaluation to the legislature by 
February 1, 1994. 
    Subd. 5.  [RIGHTS AND PROTECTIONS.] (a) The commissioner 
shall notify eligible persons or their legal representatives, in 
writing, when alternative services pilot projects have been 
authorized in the county.  Eligible persons or their legal 
representatives may choose to participate in the alternative 
services pilot project that best serves the person's individual 
needs. 
    (b) Persons participating in alternative services must 
continue to receive active treatment as provided in a person's 
individual service plan to ensure compliance with applicable 
federal regulations. 
    (c) The county must inform persons participating in 
alternative services when any part of Minnesota Rules is 
waived.  No rights or procedural protections under sections 
256.045, subdivision 4a, or 256B.092, may be waived. 
    Subd. 6.  [PAYMENT FOR ALTERNATIVE SERVICES.] (a) Payment 
for alternative services shall be made to approved vendors under 
the conditions of existing contracts with the host county, 
except for intermediate care facilities for persons with mental 
retardation or a related condition reimbursed through Minnesota 
Rules, parts 9553.0010 to 9553.0080.  When alternative services 
under this section are provided by an intermediate care facility 
for persons with mental retardation or related conditions, the 
following reimbursement and reporting procedures will be applied.
    (b) Effective upon date of enactment, the commissioner 
shall, for a facility determined to be eligible under this 
section, negotiate an adjustment to the payment rate.  The 
negotiated adjustment must reflect only the actual programmatic 
costs of meeting the alternative day training and habilitation 
needs of persons participating in service alternatives under 
this section.  Additional programmatic costs must not include 
administrative and property-related costs.  The additional 
programmatic costs shall be limited to:  
    (1) program salaries, payroll taxes, and fringe benefits of 
facility employees providing direct care services; 
    (2) costs of program consultants providing direct care 
services; 
    (3) training costs of facility employees providing direct 
care services; 
    (4) costs of program supplies; and 
    (5) additional operating costs related to transporting 
persons to community activities which have not been included in 
the facility's payment rate. 
     The additional programmatic costs must be reported on the 
facility's annual cost report in the program operating cost 
category.  A facility receiving a negotiated adjustment to its 
payment rate must agree to report these payments on an accrual 
basis as an applicable credit in the program operating cost 
category on its annual cost report for each reporting year in 
which a negotiated adjustment is in effect.  The maximum amount 
of the negotiated adjustment shall not exceed the cost of the 
day training and habilitation service provided to a person just 
prior to entering alternative services.  
    (c) The negotiated per diem adjustment to the facility's 
payment rate shall be equal to the sum of the negotiated 
programmatic costs divided by the facility's resident days for 
the reporting year used to establish the payment rate being 
adjusted.  The adjusted payment rate shall be effective the 
first day of the month following the month when a person ceases 
receiving day training and habilitation services.  The 
negotiated per diem adjustment may be subject to renegotiation 
on October 1 of each subsequent rate year.  The negotiated per 
diem adjustment shall terminate upon discharge of the person 
from the facility, or at such time when the person is determined 
by the commissioner to no longer require service alternatives.  
    (d) Upon statewide implementation of a residential 
client-based reimbursement system for ICF/MR facilities, parts 
or all of this subdivision shall be subject to amendment, if no 
longer applicable, as determined by the commissioner. 
    Sec. 42.  [SOCIAL SERVICE PILOT PROJECT; INTERGOVERNMENTAL 
AGREEMENTS.] 
    Subdivision 1.  [PILOT PROJECTS.] The commissioner of human 
services may approve up to six counties to participate in a 
pilot project to demonstrate the use of intergovernmental 
contracts between the state and counties to fund, administer, 
and regulate the delivery of programs under Minnesota Statutes, 
sections 245.461 to 245.4861 and 245.487 to 245.4887, and 
Minnesota Statutes, chapter 256E.  The commissioner shall 
consider statewide distribution and county population in 
selecting counties for the pilot project. Counties may also 
develop integrated plans for any social service and community 
health programs which shall be accepted by the commissioners of 
health and human services in lieu of plans required in statute 
or rule.  Two or more counties may submit joint proposals under 
the pilot project.  The pilot projects shall expire after June 
30, 1997. 
    Subd. 2.  [PURPOSE OF PILOT PROJECTS.] Purposes of the 
social service contract pilot projects include: 
    (a) Improving the quality of social services provided to 
persons by county human service agencies. 
    (b) Eliminating administrative mandates and procedural 
requirements governing delivery of social services. 
    (c) Consolidating program funds to permit county 
flexibility in the use of program funds. 
    (d) Encouraging intercounty and regional cooperation and 
coordination. 
    (e) Simplifying and consolidating planning and reporting 
requirements. 
    (f) Determining feasibility of using outcome-based 
performance standards to regulate the delivery of social 
services by counties. 
    (g) Clarifying the role of counties and state in the 
delivery of social services programs. 
    Subd. 3.  [TERMS; CONDITIONS OF INTERGOVERNMENTAL 
AGREEMENTS.] Counties participating in the pilot projects shall 
be exempt from the procedural requirements in state law except 
as required in federal law.  Counties providing services under 
the pilot project shall continue mandated services.  Program 
funds may be consolidated to permit the greatest flexibility in 
the delivery of services.  Each intergovernmental agreement 
shall specify a limited and reasonable number of measurable 
objectives based on the county's community social services plan 
which will be used by the state to determine compliance.  
Counties participating in pilot projects will be required to 
provide mandated services to all eligible persons but will have 
flexibility in the delivery of services and use of funds.  The 
county shall review pilot projects proposed under subdivisions 1 
to 5 with all county social services and mental health advisory 
committees and councils. 
    Subd. 4.  [MONITORING AND ENFORCEMENT.] The commissioner of 
human services shall monitor the pilot projects to determine 
compliance with the terms of the intergovernmental contracts and 
to assure that social services are delivered according to the 
county community social services act plan.  The commissioner may 
rescind approval for the pilot project if the county fails to 
comply with the terms of the intergovernmental contract.  If 
approval is withdrawn, the county will immediately be subject to 
all the requirements of the administrative rules governing 
programs covered under the intergovernmental contract. 
    Subd. 5.  [DISPUTE RESOLUTION.] Nothing in this section 
shall alter the due process rights available to persons under 
state and federal law.  Disputes which arise between the state 
and county in the development of contracts authorized in this 
section shall be resolved through mediation.  The state and 
county shall select a mediator acceptable to both parties for 
the purpose of resolving disputes. 
    Sec. 43.  [STUDY OF RESTRICTIONS ON RIGHT TO PROVIDE 
LICENSED DAY CARE.] 
    The commissioner of human services shall submit a report to 
the legislature by December 1, 1992, on the feasibility and 
desirability of prohibiting deeds; covenants; housing, 
condominium, or townhouse association bylaws, declarations, or 
rules; leases, rental agreements, or rules for manufactured home 
park lots or other rental property; or other conveyance 
instruments from including restrictions on use of residential 
property that would prevent a person from providing family or 
group family day care services for which the person is licensed 
under Minnesota Rules, parts 9502.0300 to 9502.0445.  In 
completing the report, the commissioner shall consider the need 
for exceptions for: 
    (1) owner-occupied rental property with no more than two 
units, including the owner-occupied unit; and 
    (2) housing for older persons, as defined in United States 
Code, title 42, section 3607(b), as amended through December 31, 
1991. 
    Sec. 44.  [REPEALER.] 
    Minnesota Statutes 1990, sections 245A.14, subdivision 5; 
245A.17; and Minnesota Statutes 1991 Supplement, section 252.46, 
subdivision 15, are repealed. 
    Minnesota Rules, part 9503.0170, subpart 6, item D, is 
repealed. 
    Presented to the governor April 17, 1992 
    Signed by the governor April 29, 1992, 11:12 a.m.