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Office of the Revisor of Statutes

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

                            CHAPTER 263-S.F.No. 1705 
                  An act relating to legislative enactments; correcting 
                  miscellaneous noncontroversial oversights, 
                  inconsistencies, ambiguities, unintended results, and 
                  technical errors; amending Minnesota Statutes 1994, 
                  section 144A.071, subdivision 4a, as amended; 
                  256B.0625, subdivision 13, as amended; 256B.0913, 
                  subdivision 15, as added; 256B.0915, subdivision 3a, 
                  as added; 256D.44, subdivision 3, as amended; and 
                  323.02, subdivision 9, as amended; Laws 1995, chapter 
                  68, section 14; Senate File 106, sections 16 and 142; 
                  Senate File 1110, articles 2, section 40; 5, section 
                  41; 6, sections 123 and 125; 7, section 8; and 10, 
                  section 26; House File 1856, articles 2, section 22; 
                  and 4, section 4, subdivision 5; and House File 1864, 
                  article 6, section 2, subdivision 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 323.02, 
        subdivision 9, as added by Laws 1995, chapter 128, section 11, 
        is amended to read: 
           Subd. 9.  [FOREIGN LIMITED LIABILITY PARTNERSHIP.] "Foreign 
        limited liability partnership" means a general partnership 
        organized under laws other than the laws of this state with 
        status as a limited liability partnership in its home 
        jurisdiction. 
           Sec. 2.  [CORRECTION 1.] Minnesota Statutes 1994, section 
        144A.071, subdivision 4a, as amended by 1995 S.F. No. 1110, 
        article 7, section 11, if enacted, is amended to read: 
           Sec. 11.  Minnesota Statutes 1994, section 144A.071, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
        best interest of the state to ensure that nursing homes and 
        boarding care homes continue to meet the physical plant 
        licensing and certification requirements by permitting certain 
        construction projects.  Facilities should be maintained in 
        condition to satisfy the physical and emotional needs of 
        residents while allowing the state to maintain control over 
        nursing home expenditure growth. 
           The commissioner of health in coordination with the 
        commissioner of human services, may approve the renovation, 
        replacement, upgrading, or relocation of a nursing home or 
        boarding care home, under the following conditions: 
           (a) to license or certify beds in a new facility 
        constructed to replace a facility or to make repairs in an 
        existing facility that was destroyed or damaged after June 30, 
        1987, by fire, lightning, or other hazard provided:  
           (i) destruction was not caused by the intentional act of or 
        at the direction of a controlling person of the facility; 
           (ii) at the time the facility was destroyed or damaged 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; 
           (iii) the net proceeds from an insurance settlement for the 
        damages caused by the hazard are applied to the cost of the new 
        facility or repairs; 
           (iv) 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; 
           (v) 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; and 
           (vi) the commissioner determines that the replacement beds 
        are needed to prevent an inadequate supply of beds. 
        Project construction costs incurred for repairs authorized under 
        this clause shall not be considered in the dollar threshold 
        amount defined in subdivision 2; 
           (b) 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 25 percent of the appraised 
        value of the facility or $500,000, whichever is less; 
           (c) to license or certify beds in a project recommended for 
        approval under section 144A.073; 
           (d) 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; 
           (e) 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 25 percent of the appraised value of the facility or 
        $500,000, whichever is less.  If boarding care beds are licensed 
        as nursing home beds, the number of boarding care beds in the 
        facility must not increase beyond the number remaining at the 
        time of the upgrade in licensure.  The provisions contained in 
        section 144A.073 regarding the upgrading of the facilities do 
        not apply to facilities that satisfy these requirements; 
           (f) 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 St. 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 paragraph; 
           (g) 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; 
           (h) 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; 
           (i) 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; 
           (j) 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; 
           (k) 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; 
           (l) to license or certify beds in renovation, replacement, 
        or upgrading projects as defined in section 144A.073, 
        subdivision 1, so long as the cumulative total costs of the 
        facility's remodeling projects do not exceed 25 percent of the 
        appraised value of the facility or $500,000, whichever is less; 
           (m) to license and certify beds that are moved from one 
        location to another for the purposes of converting up to five 
        four-bed wards to single or double occupancy rooms in a nursing 
        home that, as of January 1, 1993, was county-owned and had a 
        licensed capacity of 115 beds; 
           (n) to allow a facility that on April 16, 1993, was a 
        106-bed licensed and certified nursing facility located in 
        Minneapolis to layaway all of its licensed and certified nursing 
        home beds.  These beds may be relicensed and recertified in a 
        newly-constructed teaching nursing home facility affiliated with 
        a teaching hospital upon approval by the legislature.  The 
        proposal must be developed in consultation with the interagency 
        committee on long-term care planning.  The beds on layaway 
        status shall have the same status as voluntarily delicensed and 
        decertified beds, except that beds on layaway status remain 
        subject to the surcharge in section 256.9657.  This layaway 
        provision expires July 1, 1997; 
           (o) to allow a project which will be completed in 
        conjunction with an approved moratorium exception project for a 
        nursing home in southern Cass county and which is directly 
        related to that portion of the facility that must be repaired, 
        renovated, or replaced, to correct an emergency plumbing problem 
        for which a state correction order has been issued and which 
        must be corrected by August 31, 1993; 
           (p) to allow a facility that on April 16, 1993, was a 
        368-bed licensed and certified nursing facility located in 
        Minneapolis to layaway, upon 30 days prior written notice to the 
        commissioner, up to 30 of the facility's licensed and certified 
        beds by converting three-bed wards to single or double 
        occupancy.  Beds on layaway status shall have the same status as 
        voluntarily delicensed and decertified beds except that beds on 
        layaway status remain subject to the surcharge in section 
        256.9657, remain subject to the license application and renewal 
        fees under section 144A.07 and shall be subject to a $100 per 
        bed reactivation fee.  In addition, at any time within three 
        years of the effective date of the layaway, the beds on layaway 
        status may be: 
           (1) relicensed and recertified upon relocation and 
        reactivation of some or all of the beds to an existing licensed 
        and certified facility or facilities located in Pine River, 
        Brainerd, or International Falls; provided that the total 
        project construction costs related to the relocation of beds 
        from layaway status for any facility receiving relocated beds 
        may not exceed the dollar threshold provided in subdivision 2 
        unless the construction project has been approved through the 
        moratorium exception process under section 144A.073; 
           (2) relicensed and recertified, upon reactivation of some 
        or all of the beds within the facility which placed the beds in 
        layaway status, if the commissioner has determined a need for 
        the reactivation of the beds on layaway status. 
           The property-related payment rate of a facility placing 
        beds on layaway status must be adjusted by the incremental 
        change in its rental per diem after recalculating the rental per 
        diem as provided in section 256B.431, subdivision 3a, paragraph 
        (d).  The property-related payment rate for a facility 
        relicensing and recertifying beds from layaway status must be 
        adjusted by the incremental change in its rental per diem after 
        recalculating its rental per diem using the number of beds after 
        the relicensing to establish the facility's capacity day 
        divisor, which shall be effective the first day of the month 
        following the month in which the relicensing and recertification 
        became effective.  Any beds remaining on layaway status more 
        than three years after the date the layaway status became 
        effective must be removed from layaway status and immediately 
        delicensed and decertified; 
           (q) to license and certify beds in a renovation and 
        remodeling project to convert 13 three-bed wards into 13 two-bed 
        rooms and 13 single-bed rooms, expand space, and add 
        improvements in a nursing home that, as of January 1, 1994, met 
        the following conditions:  the nursing home was located in 
        Ramsey county; was not owned by a hospital corporation; had a 
        licensed capacity of 64 beds; and had been ranked among the top 
        15 applicants by the 1993 moratorium exceptions advisory review 
        panel.  The total project construction cost estimate for this 
        project must not exceed the cost estimate submitted in 
        connection with the 1993 moratorium exception process; 
           (r) to license and certify beds in a renovation and 
        remodeling project to convert 12 four-bed wards into 24 two-bed 
        rooms, expand space, and add improvements in a nursing home 
        that, as of January 1, 1994, met the following conditions:  the 
        nursing home was located in Ramsey county; had a licensed 
        capacity of 154 beds; and had been ranked among the top 15 
        applicants by the 1993 moratorium exceptions advisory review 
        panel.  The total project construction cost estimate for this 
        project must not exceed the cost estimate submitted in 
        connection with the 1993 moratorium exception process; 
           (s) to license and certify up to 117 beds that are 
        relocated from a licensed and certified 138-bed nursing facility 
        located in St. Paul to a hospital with 130 licensed hospital 
        beds located in South St. Paul, provided that the nursing 
        facility and hospital are owned by the same or a related 
        organization and that prior to the date the relocation is 
        completed the hospital ceases operation of its inpatient 
        hospital services at that hospital.  After relocation, the 
        nursing facility's status under section 256B.431, subdivision 2 
        2j, shall be the same as it was prior to relocation.  The 
        nursing facility's property-related payment rate resulting from 
        the project authorized in this paragraph shall become effective 
        no earlier than April 1, 1996.  For purposes of calculating the 
        incremental change in the facility's rental per diem resulting 
        from this project, the allowable appraised value of the nursing 
        facility portion of the existing health care facility physical 
        plant prior to the renovation and relocation may not exceed 
        $2,490,000; 
           (t) to license and certify two beds in a facility to 
        replace beds that were voluntarily delicensed and decertified on 
        June 28, 1991; 
           (u) to allow 16 licensed and certified beds located on July 
        1, 1994, in a 142-bed nursing home and 21-bed boarding care home 
        facility in Minneapolis, notwithstanding the licensure and 
        certification after July 1, 1995, of the Minneapolis facility as 
        a 147-bed nursing home facility after completion of a 
        construction project approved in 1993 under section 144A.073, to 
        be laid away upon 30 days' prior written notice to the 
        commissioner.  Beds on layaway status shall have the same status 
        as voluntarily delicensed or decertified beds except that they 
        shall remain subject to the surcharge in section 256.9657.  The 
        16 beds on layaway status may be relicensed as nursing home beds 
        and recertified at any time within five years of the effective 
        date of the layaway upon relocation of some or all of the beds 
        to a licensed and certified facility located in Watertown, 
        provided that the total project construction costs related to 
        the relocation of beds from layaway status for the Watertown 
        facility may not exceed the dollar threshold provided in 
        subdivision 2 unless the construction project has been approved 
        through the moratorium exception process under section 144A.073. 
           The property-related payment rate of the facility placing 
        beds on layaway status must be adjusted by the incremental 
        change in its rental per diem after recalculating the rental per 
        diem as provided in section 256B.431, subdivision 3a, paragraph 
        (d).  The property-related payment rate for the facility 
        relicensing and recertifying beds from layaway status must be 
        adjusted by the incremental change in its rental per diem after 
        recalculating its rental per diem using the number of beds after 
        the relicensing to establish the facility's capacity day 
        divisor, which shall be effective the first day of the month 
        following the month in which the relicensing and recertification 
        became effective.  Any beds remaining on layaway status more 
        than five years after the date the layaway status became 
        effective must be removed from layaway status and immediately 
        delicensed and decertified; or 
           (v) to license and certify beds that are moved within an 
        existing area of a facility or to a newly-constructed addition 
        which is built for the purpose of eliminating three- and 
        four-bed rooms and adding space for dining, lounge areas, 
        bathing rooms, and ancillary service areas in a nursing home 
        that, as of January 1, 1995, was located in Fridley and had a 
        licensed capacity of 129 beds. 
           Sec. 3.  [CORRECTION 2.] 1995 S.F. No. 1110, article 2, 
        section 40, if enacted, is amended to read: 
           Sec. 40.  [EFFECTIVE DATES.] 
           Subdivision 1.  Sections 5 (245A.03, subdivision 2a), 6 
        (245A.035, subdivisions 1 to 6), 7 to 10 (245A.04, subdivisions 
        3, 3b, 7, and 9), 11 to 13 (245A.06, subdivisions 2, 4, and 7), 
        14 (245A.07, subdivision 3), and 20 (245A.14, subdivision 6), 
        are effective the day following final enactment. 
           Subd. 2.  Under Minnesota Statutes, section 645.023, 
        subdivision 1, clause (a), section 32 37, takes effect, without 
        local approval, the day following final enactment. 
           Sec. 4.  [CORRECTION 3.] Minnesota Statutes 1994, section 
        256D.44, subdivision 3, as amended by S.F. No. 1110, if enacted, 
        is amended to read: 
           Subd. 3.  [STANDARD OF ASSISTANCE FOR BASIC NEEDS.] Except 
        as provided in subdivision 4, the monthly state standard of 
        assistance for basic needs is as follows:  
           (a) If an applicant or recipient does not reside with 
        another person or persons, the state standard of assistance is 
        $519.  
           (b) If an applicant married couple or recipient married 
        couple who live together, does not reside with others, the state 
        standard of assistance is $778. 
           (c) If an applicant or recipient resides with another 
        person or persons, the state standard of assistance is $395. 
           (d) If an applicant married couple or recipient married 
        couple who live together, resides with others, the state 
        standard of assistance is $519. 
           (e) Married couples, living together who do not reside with 
        others and were receiving MSA prior to January 1, 1994, and 
        whose eligibility has not been terminated a full calendar month, 
        the state standard of assistance is $793. 
           (f) Married couples living together who reside with others 
        and were receiving MSA prior to January 1, 1994, and whose 
        eligibility has not been terminated a full calendar month, the 
        state standard of assistance is $682 $782. 
           (g) For an individual who is a resident of a nursing home, 
        a regional treatment center or a group residential housing 
        facility, the state standard of assistance is the personal needs 
        allowance for medical assistance recipients under section 
        256B.35. 
           Sec. 5.  [CORRECTION 4.] 1995 S.F. No. 1110, article 5, 
        section 41, if enacted, is amended to read: 
           Sec. 41.  [EFFECTIVE DATES.] 
           Section 31 (256I.04, subdivision 3), the amendment to 
        section 256I.04, subdivision 3, paragraph (a), clause (5), is 
        effective July 1, 1996. 
           Sec. 6.  [CORRECTION 5.] 1995 S.F. No. 1110, article 6, 
        section 125, if enacted, is amended to read: 
           Sec. 125.  [EFFECTIVE DATE.] 
           Subdivision 1.  Sections 79 and 80, the amendments to 
        section 256B.15, subdivisions 1a and 2, relating only to the age 
        of a medical assistance recipient for purposes of estate claims, 
        are effective for persons who are between the ages of 55 and 64 
        on or after July 1, 1995, for the total amount of medical 
        assistance rendered on or after July 1, 1995. 
           Subd. 2.  Sections 34 to 37, section 256B.0595, 
        subdivisions 1, 2, 3, and 4, are effective retroactive to August 
        11, 1993, except that portion amending subdivision 2, paragraph 
        (c), is effective retroactive to transfers of income or assets 
        made on or after September 1, 1994. 
           Subd. 3.  Sections 28, 108, and 109, sections 256B.056, 
        subdivision 3b, and 501B.89, subdivisions 1 and 3, are effective 
        retroactive to August 11, 1993. 
           Subd. 4.  Sections 14, 49, 84, and 86, sections 256.9657, 
        subdivision 3, 256B.0625, subdivision 38, 256B.19, subdivision 
        1d, and 256B.431, subdivision 23, are effective the day 
        following final enactment. 
           Subd. 5.  Section 30, the amendment to section 256B.0575, 
        paragraph (a), clause (5), is effective retroactive to January 
        1, 1994. 
           Subd. 6.  Section 91, the amendment to section 256B.69, 
        subdivision 4, requiring children eligible for medical 
        assistance under section 256B.055, subdivision 12, to 
        participate in managed care, is effective July 1, 1996. 
           Subd. 7.  Section 96, the amendment to section 256B.69, 
        subdivision 6, expanding services under managed care to include 
        home care services and personal care assistant services for 
        certain recipients, is effective July 1, 1996. 
           Subd. 8.  Section 48, section 256B.0625, subdivision 19a, 
        is effective July 1, 1996. 
           Subd. 9.  Section 52, section 256B.0627, subdivision 1, 
        paragraph (c), is effective January 1, 1996; paragraph (d) is 
        effective January 1, 1996, except the deletions relating to 
        responsible party are effective July 1, 1996; and the stricken 
        paragraph (d), the deletion of the definition of responsible 
        party, is effective July 1, 1996. 
           Subd. 10.  Section 53, section 256B.0627, subdivision 2, 
        clause (6), is effective January 1, 1996. 
           Subd. 11.  Section 54, section 256B.0627, subdivision 4, 
        paragraph (a), is effective July 1, 1996; and paragraph (b), 
        clauses (2) and (3), are effective January 1, 1996; and the 
        stricken language in clause (1) and the stricken language in the 
        stricken clause (4), are effective July 1, 1996. 
           Subd. 12.  Section 55, section 256B.0627, subdivision 5, 
        paragraph (a), clause (2), is effective January 1, 1996; 
        paragraph (d) is effective January 1, 1996; paragraph (e), 
        clause (2)(i), the new language relating to the registered nurse 
        supervision is effective January 1, 1996; paragraph (e), clause 
        (2)(i)A, B, C, D, and E, are effective July 1, 1996; paragraph 
        (e), clause (2)(ii), is effective July 1, 1996; paragraph (e), 
        clause (2)(iii), the new language relating to county public 
        health nurse, is effective January 1, 1996, and the stricken 
        language relating to the seizure activity provision, is 
        effective July 1, 1996; paragraph (e), clause (2), the language 
        striking items (v) to (viii), is effective July 1, 1996; 
        paragraph (h), is effective January 1, 1996; and paragraph (i), 
        clause (2), the stricken language relating to the foster care 
        license holder, and the language in the stricken clause (3) 
        relating to the responsible party, is effective July 1, 1996. 
           Sec. 7.  [CORRECTION 6.] 1995 S.F. No. 1110, article 10, 
        section 26, if enacted, is amended to read: 
           Sec. 26.  [EFFECTIVE DATE.] 
           Sections 1 to 6 4 and 14 to 19 (62A.045; 62A.046; 62A.048; 
        62A.27; 256.74, subdivision 6; 256.76, subdivision 1; 257.69, 
        subdivision 2; 518.171, subdivisions 1, 3, 4, 5, and 7) are 
        effective retroactive to August 10, 1993. 
           Sec. 8.  [CORRECTION 7.] Minnesota Statutes 1994, section 
        256B.0913, subdivision 15a, as added by S.F. No. 1110, if 
        enacted, is amended to read: 
           Subd. 15a.  [REIMBURSEMENT RATE; ANOKA COUNTY.] 
        Notwithstanding subdivision 14, paragraph (e), or any other law 
        to the contrary, for services rendered on or after January 1, 
        1996, Anoka county may pay vendors, and the commissioner shall 
        reimburse the county, for actual costs up to a limit which is 
        the maximum rate in effect on December 31, 1995, plus half the 
        difference between that rate and the maximum allowed state rate 
        for home health aide and homemaker services. 
           Sec. 9.  [CORRECTION 8.] Minnesota Statutes 1994, section 
        256B.0915, subdivision 3a, as added by 1995 S.F. No. 1110, if 
        enacted, is amended to read: 
           Subd. 3a.  [REIMBURSEMENT RATE; ANOKA COUNTY.] 
        Notwithstanding subdivision 3, paragraph (h), or any other law 
        to the contrary, for services rendered on or after January 1, 
        1996, Anoka county may pay vendors, and the commissioner shall 
        reimburse the county, for actual costs up to a limit which is 
        the maximum rate in effect on December 31, 1995, plus half the 
        difference between that rate and the maximum allowed state rate 
        for home health aide and homemaker services. 
           Sec. 10.  [CORRECTION 11.] Minnesota Statutes 1994, section 
        256B.0625, subdivision 13, as amended by 1995 S.F. No. 1110, if 
        enacted, is amended to read: 
           Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs if 
        prescribed by a licensed practitioner and dispensed by a 
        licensed pharmacist, by a physician enrolled in the medical 
        assistance program as a dispensing physician, or by a physician 
        or a nurse practitioner employed by or under contract with a 
        community health board as defined in section 145A.02, 
        subdivision 5, for the purposes of communicable disease 
        control.  The commissioner, after receiving recommendations from 
        professional medical associations and professional pharmacist 
        associations, 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 
        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 three-year terms and shall serve without 
        compensation.  Members may be reappointed once.  
           (b) 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:  
           (i) drugs or products for which there is no federal 
        funding; 
           (ii) over-the-counter drugs, except for antacids, 
        acetaminophen, family planning products, aspirin, insulin, 
        products for the treatment of lice, vitamins for adults with 
        documented vitamin deficiencies, and vitamins for children under 
        the age of seven and pregnant or nursing women; 
           (iii) 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; 
           (iv) anorectics; and 
           (v) drugs for which medical value has not been established. 
           The commissioner shall publish conditions for prohibiting 
        payment for specific drugs after considering the formulary 
        committee's recommendations.  
           (c) 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; 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.  The pharmacy dispensing fee shall be $3.85.  Actual 
        acquisition cost includes quantity and other special discounts 
        except time and cash discounts.  The actual acquisition cost of 
        a drug shall be estimated by the commissioner, at average 
        wholesale price minus nine percent effective January 1, 1994.  
        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.  
           Sec. 11.  [CORRECTION 12.] 1995 S.F. No. 1110, article 6, 
        section 123, if enacted, is amended to read: 
           Sec. 123.  [TEFRA MANAGED CARE ADVISORY COMMITTEE AND 
        PROGRESS REPORT.] 
           Subdivision 1.  [ADVISORY COMMITTEE.] The commissioner 
        shall appoint an advisory committee to assist with the 
        development of managed care for children eligible for medical 
        assistance under Minnesota Statutes, section 256B.055, 
        subdivision 12.  The advisory committee shall include 
        representatives of parents, advocates, health plan companies, 
        health care providers serving the children, counties, and other 
        other interested persons. 
           Subd. 2.  [PROGRESS REPORT.] The commission commissioner 
        shall report to the legislature by December 15, 1995, regarding 
        progress toward implementing managed care.  The report shall 
        make recommendations regarding the following:  any law changes 
        needed for effective implementation; how to coordinate with 
        other insurance coverage the families may have; how managed care 
        plans would operate as to varying coverage; what services would 
        be available, including any gaps under managed care plans; and 
        whether going to managed care results in cost savings to the 
        state.  The report shall also provide information by county and 
        major diagnoses of children found eligible and ineligible for 
        TEFRA, the services and amounts paid by the medical assistance 
        program, name of health insurance plan, family income, and total 
        number of TEFRA eligible children in each county. 
           Sec. 12.  [CORRECTION 15.] 1995 S.F. No. 106, section 142, 
        if enacted, is amended to read: 
           Sec. 142.  [EFFECTIVE DATES.] 
           Sections 2, 5, 7, 20, 42, 44 to 49, 56, 57, 101, 102, 117, 
        and 141, paragraph (d), are effective the day following final 
        enactment. 
           Sections 114, 115, 118, and 121 are effective January 1, 
        1996. 
           Sections 119, 120, and 141, paragraph (c), are effective 
        July 1, 1996. 
           Section 141, paragraph (b), is effective June 30, 1999. 
           Sections 58 and 66 are effective retroactively to August 1, 
        1991. 
           Sec. 13.  [CORRECTION 16.] 1995 S.F. No. 106, section 16, 
        if enacted, is amended to read: 
        Sec. 16.  PUBLIC SAFETY                   50,000
        $50,000 is appropriated from the 
        highway user tax distribution fund to 
        the commissioner of public safety for 
        costs of handling and manufacturing 
        special license plates under section 85 
        112. 
           Sec. 14.  [CORRECTION 18.] 1995 S.F. No. 1110, article 7, 
        section 8, if enacted, is amended to read: 
           Sec. 8.  [144.6505] [SUBACUTE CARE WAIVERS.] 
           Subdivision 1.  [SUBACUTE CARE; WAIVER FROM STATE AND 
        FEDERAL RULES AND REGULATIONS.] The commissioners of health and 
        human services shall work with providers to examine state and 
        federal rules and regulations governing the provision of care in 
        nursing facilities and apply for federal waivers and pursue 
        state law changes to any impediments to the provision of 
        subacute care in skilled nursing facilities. 
           Subd. 2.  [DEFINITION OF SUBACUTE CARE.] (a) For the 
        purpose of this section, "subacute care" means comprehensive 
        inpatient care, as further defined in this subdivision, designed 
        for persons who: 
           (1) have or have had an acute illness or accident, or an 
        acute exacerbation of a chronic illness, and who require a 
        moderate level of service intensity; 
           (2) do not require, or no longer require, technologically 
        intensive diagnosis or management; 
           (3) have concurrent medical, nursing, and discharge and/or 
        nondischarge oriented rehabilitation objectives that are 
        expected to be achieved within a specified time; and 
           (4) require interdisciplinary management.  
           (b) Subacute care includes goal-oriented treatment rendered 
        immediately after, or as an appropriate alternative to, acute 
        hospitalization with the goal of transitioning patients towards 
        increased independence or lower acuity level in a cost-effective 
        environment, to treat one or more specific active complex 
        medical conditions or to administer one or more technically 
        complex treatments, in the context of a patient's underlying 
        long-term conditions and overall situation. 
           (c) Subacute care does not generally depend heavily on high 
        technology monitoring or complex diagnostic procedures.  
           (d) Subacute care requires the coordinated services of an 
        interdisciplinary team including physicians, nurses, and other 
        relevant professional disciplines, who are trained and 
        knowledgeable to assess and manage these specific conditions and 
        perform the necessary procedures.  
           (e) Subacute care is provided as part of a specifically 
        defined program. 
           (f) Subacute care includes more intensive care than 
        traditional nursing facility care and less intensive care than 
        acute care and may be provided at a variety of sites, including 
        hospitals and skilled nursing facilities. 
           (g) Subacute care requires recurrent patient assessment on 
        a daily to weekly basis and review of the clinical course and 
        treatment plan for a limited time period ranging from several 
        days to several months, until the condition is stabilized or a 
        predetermined treatment course is completed. 
           Sec. 15.  [CORRECTION 19.] 1995 H.F. No. 1864, article 6, 
        section 2, subdivision 1, if enacted, is amended to read: 
           Subdivision 1.  [AUTHORIZATION.] The commissioner of 
        finance, upon request of the governor, is authorized to sell and 
        issue state bonds to fund the judgment rendered against the 
        state by the Minnesota supreme court in Cambridge State Bank et. 
        al. v. James, 514 N.W. 2d 565, on April 1, 1994, and related 
        claims, and interest accrued thereon on the judgment and related 
        claims, to fund any bond reserve determined to be necessary, and 
        to pay costs of issuance of the bonds.  The proceeds of the 
        bonds are appropriated for these purposes.  The principal amount 
        of the bonds shall not exceed $400,000,000.  The bonds shall be 
        sold and issued upon such terms and in such manner as the 
        commissioner shall determine to be in the best interests of the 
        state.  The final maturity of the bonds shall be not later than 
        June 30, 2005. 
           Sec. 16.  [CORRECTION 13.] 1995 H.F. No. 1856, article 2, 
        section 22, if enacted, is amended to read: 
           Sec. 22.  [REPEALER.] 
           Minnesota Statutes 1994, sections 136A.16, subdivision 11; 
        137.31, subdivision 6; 137.35, subdivision 4; and 
        137.38, subdivision 5, are repealed. 
           Sec. 17.  [CORRECTION 13.] 1995 H.F. No. 1856, article 4, 
        section 4, subdivision 5, if enacted, is amended to read: 
           Subd. 5.  [BOARD ACTION.] In accordance with the principles 
        in this section 136F.011, the board shall review the proposed 
        structure of the system office with the objective of further 
        reducing or eliminating those functions that are unnecessary.  
        Savings that occur shall be redirected to support instruction on 
        the campuses. 
           Sec. 18.  [CORRECTION 17.] Laws 1995, chapter 68, section 
        14, is amended to read:  
           Sec. 14.  [EFFECTIVE DATE.] 
           Sections 1 to 8 and 13 are effective the day following 
        final enactment. 
           Sections 9 to 12 are effective July 1, 1995. 
           Sec. 19.  [CORRECTION 14.] 
           Sec. 2.  [LIMITATION OF INFRASTRUCTURE REINVESTMENT.] 
           None of the $750,000 made available by S.F. 1110, article 
        1, section 2, subdivision 7, from the public facilities 
        authority under Minnesota Statutes, section 446A.071, for grant 
        funds to a local unit of government for the development of 
        infrastructure and planning for redevelopment, in response to 
        the memorandum of understanding for the regional treatment 
        centers, may be used to purchase land on which prison buildings 
        will be placed or to pay for utilities to the prison site and 
        hazardous waste issues or other subgrade condition costs. 
           Sec. 20.  [EFFECTIVE DATE.] 
           Unless provided otherwise, each section of this act takes 
        effect at the time that the section of law enacted in 1995 that 
        it amends or cites takes effect. 
           Presented to the governor May 30, 1995 
           Signed by the governor June 1, 1995, 11:45 a.m.