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Office of the Revisor of Statutes

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

                            CHAPTER 220-H.F.No. 351 
                  An act relating to the financing of state government; 
                  changing appropriations to reflect forecast changes; 
                  reducing appropriations for the fiscal years ending 
                  June 30, 2002 and 2003; canceling balances and 
                  appropriations and transferring balances to the 
                  general fund in order to avert a deficit; eliminating 
                  certain adjustments for inflation in future fiscal 
                  years; providing for family and early childhood 
                  education appropriation adjustments, kindergarten 
                  through grade 12 appropriation adjustments, 
                  kindergarten through grade 12 forecast adjustments, 
                  higher education, corrections, public safety and 
                  transportation and other agency appropriations, 
                  environment and natural resources, agricultural and 
                  rural development, state government appropriations, 
                  courts, economic development, cancellations, 
                  transfers, and adjustments, continuing care and 
                  long-term care, health care, miscellaneous health, 
                  health and human services appropriations; changing 
                  certain fees; appropriating money; amending Minnesota 
                  Statutes 2000, sections 13.871, subdivision 5; 
                  15.0591, subdivision 2; 16A.103, subdivisions 1a, 1b; 
                  16A.152, subdivision 1; 16A.40; 41A.09, subdivision 
                  3a; 62J.692, subdivision 4; 82.34, subdivision 3; 
                  85A.02, subdivision 17; 115A.554; 120A.34; 120B.13, 
                  subdivision 3; 124D.385, subdivision 2; 124D.86, 
                  subdivisions 4, 5; 135A.15, subdivision 1; 136F.68; 
                  144.395, subdivision 1; 145.9266, subdivision 3; 
                  168A.40, subdivision 4; 251.013; 252.282, subdivisions 
                  1, 3, 4, 5; 256.9657, subdivision 1; 256.9753, 
                  subdivision 3; 256B.059, subdivisions 1, 3, 5; 
                  256B.0595, subdivision 4; 256B.0916, subdivision 5; 
                  256B.19, subdivisions 1, 1d; 256B.32; 256B.431, 
                  subdivision 23, by adding a subdivision; 256B.5013, 
                  subdivisions 2, 4, 5, 6; 256B.69, subdivision 5a, by 
                  adding subdivisions; 256L.07, subdivisions 1, 3; 
                  256L.12, subdivision 9; 256L.15, subdivision 3; 
                  260C.163, subdivision 3; 299F.011, by adding a 
                  subdivision; 299L.02, subdivision 7; 299L.07, 
                  subdivision 5; 357.021, subdivision 2; 357.022; 
                  490.123, by adding a subdivision; 611.17; 611A.371, 
                  subdivision 1; 611A.373; 611A.72; 611A.73, subdivision 
                  2, by adding a subdivision; 611A.74, subdivisions 2, 
                  3, 4, 5, 6; Minnesota Statutes 2001 Supplement, 
                  sections 16A.152, subdivisions 1a, 2; 16A.88, 
                  subdivision 1; 16B.65, subdivisions 1, 5a; 17.117, 
                  subdivision 5a; 62J.692, subdivision 7; 62J.694, 
                  subdivision 2a; 93.2235, subdivision 1; 115A.545, 
                  subdivisions 1, 2; 123B.54; 126C.05, subdivision 15; 
                  136A.121, subdivision 6; 136A.124, subdivisions 2, 4; 
                  136G.03, subdivision 25; 136G.07, subdivision 1; 
                  136G.09, subdivision 8; 171.29, subdivision 2; 
                  242.192; 244.054, subdivision 2; 256.01, subdivision 
                  2; 256.022, subdivision 1; 256.969, subdivision 3a; 
                  256B.056, subdivision 3; 256B.0595, subdivisions 1, 2; 
                  256B.0625, subdivision 13; 256B.437, subdivision 2; 
                  256B.439, subdivisions 1, 4; 256B.5013, subdivision 1; 
                  256B.69, subdivisions 5b, 5c; 256B.75; 256L.15, 
                  subdivision 1; 260B.007, subdivision 16; 260C.141, 
                  subdivision 3; 299A.75, subdivision 1; 611A.372; 
                  611A.74, subdivision 1; Laws 1997, First Special 
                  Session chapter 4, article 3, section 25, subdivision 
                  7; Laws 1998, chapter 404, section 23, subdivision 6; 
                  Laws 2000; chapter 489, article 1, section 36; Laws 
                  2001, First Special Session chapter 3, article 1, 
                  section 17, subdivisions 3, 7, 8, 9, 11; Laws 2001, 
                  First Special Session chapter 3, article 1, section 
                  18; Laws 2001, First Special Session chapter 3, 
                  article 1, section 19, subdivisions 3, 5; Laws 2001, 
                  First Special Session chapter 3, article 2, section 
                  15, subdivision 3; Laws 2001, First Special Session 
                  chapter 3, article 3, section 9, subdivision 6; Laws 
                  2001, First Special Session chapter 3, article 4, 
                  section 5, subdivisions 2, 4; Laws 2001, First Special 
                  Session chapter 4, article 1, section 4, subdivision 
                  6; Laws 2001, First Special Session chapter 4, article 
                  3, section 1; Laws 2001, First Special Session chapter 
                  4, article 3, section 2, subdivision 1; Laws 2001, 
                  First Special Session chapter 4, article 3, section 3; 
                  Laws 2001, First Special Session chapter 5, article 2, 
                  section 29, subdivision 2; Laws 2001, First Special 
                  Session chapter 6, article 1, section 54, subdivisions 
                  2, 4, 5, 6, 7; Laws 2001, First Special Session 
                  chapter 6, article 2, section 77, subdivisions 2, 4, 
                  5, 7, 8, 11, 15, 18, 23, 25, as amended, 29; Laws 
                  2001, First Special Session chapter 6, article 3, 
                  section 21, subdivisions 2, 3, 4, 5, 7, 11; Laws 2001, 
                  First Special Session chapter 6, article 4, section 
                  27, subdivisions 2, 3, 5, 6; Laws 2001, First Special 
                  Session chapter 6, article 5, section 13, subdivisions 
                  2, 5; Laws 2001, First Special Session chapter 6, 
                  article 7, section 13, as amended; Laws 2001, First 
                  Special Session chapter 6, article 7, section 14; Laws 
                  2001, First Special Session chapter 8, article 4, 
                  section 10, subdivisions 1, 7; Laws 2001, First 
                  Special Session chapter 8, article 4, section 11; Laws 
                  2001, First Special Session chapter 8, article 11, 
                  section 14; Laws 2001, First Special Session chapter 
                  9, article 2, section 7, the effective date; Laws 
                  2001, First Special Session chapter 9, article 5, 
                  section 35; proposing coding for new law in Minnesota 
                  Statutes, chapter 126C; repealing Minnesota Statutes 
                  2000, sections 13.202, subdivision 8; 41B.047, 
                  subdivision 2; 103B.3369, subdivisions 7, 8; 103B.351; 
                  103F.461; 103G.2373; 144.6905; 145.475; 256.9731; 
                  256B.0916, subdivision 1; 256K.01; 256K.015; 256K.02; 
                  256K.03, subdivisions 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 
                  12; 256K.04; 256K.05; 256K.06; 256K.08; 256K.09; 
                  465.795; 465.796; 465.797; 465.7971; 465.798; 465.799; 
                  465.801; 465.802; 465.803; 465.83; 465.87; 465.88; 
                  490.123, subdivision 1d; 611A.37, subdivisions 6, 7; 
                  611A.375; 611A.74, subdivision 1a; Minnesota Statutes 
                  2001 Supplement, sections 4.50; 16A.1523; 256K.03, 
                  subdivision 1; 256K.07; 256L.03, subdivision 5a; 
                  469.1799, subdivisions 1, 3; Laws 1997, chapter 183, 
                  article 2, section 19; Laws 1999, chapter 152, as 
                  amended; Laws 2000, chapter 447, section 25; Laws 
                  2001, First Special Session chapter 3, article 3, 
                  section 8; Laws 2001, First Special Session chapter 6, 
                  article 1, section 31; Laws 2001, First Special 
                  Session chapter 9, article 13, sections 22, 25, 26, 
                  27, 28; Minnesota Rules, parts 8405.0100; 8405.0110; 
                  8405.0120; 8405.0130; 8405.0140; 8405.0150; 8405.0160; 
                  8405.0170; 8405.0180; 8405.0190; 8405.0200; 8405.0210; 
                  8405.0220; 8405.0230. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                                    SUMMARY 
                (General Fund Only, After Forecast Adjustments)
                                                              BIENNIAL
                                 2002            2003           TOTAL
        APPROPRIATIONS
        Early Education  $     (100,000) $   (3,900,000) $   (4,000,000)
        K-12 Education       (4,979,000)     (9,947,000)    (14,926,000)
        Higher Education     (2,744,000)    (47,256,000)    (50,000,000)
        Corrections          (5,165,000)    (11,489,000)    (16,654,000)
        Transportation 
        and Public Safety    (2,018,000)     (6,932,000)     (8,950,000)
        Environment and
        Natural Resources      (103,000)    (12,797,000)    (12,900,000)
        Agriculture            (469,000)     (1,227,000)     (1,696,000)
        State Government    (14,695,000)    (30,005,000)    (44,700,000)
        Courts                               (1,592,000)     (1,592,000)
        Economic Development (1,899,000)     (3,594,000)     (5,943,000)
        Health and   
        Human Services       (1,386,000)    (54,038,000)    (55,424,000)
        SUBTOTAL        $   (33,558,000) $ (182,777,000)$  (216,335,000)
        CANCELLATIONS    (1,167,667,000)   (108,000,000) (1,275,667,000)
        TRANSFERS IN        (84,168,000)   (233,946,000)   (318,114,000)
        TOTAL           $(1,285,393,000) $ (524,723,000)$(1,810,116,000)

                                   ARTICLE 2 
                      FAMILY AND EARLY CHILDHOOD EDUCATION 
                           APPROPRIATION ADJUSTMENTS 
           Section 1.  Laws 2000, chapter 489, article 1, section 36, 
        is amended to read: 
           Sec. 36.  [MFIP SOCIAL SERVICES CHILD CARE SUNSET AND 
        REPORT.] 
           Minnesota Statutes, section 119B.05, subdivision 1, clause 
        (5), expires on June 30, 2003.  MFIP social services child care 
        must be paid for with the appropriations under section 45, 
        subdivision 3.  Priority must be given to mental health services 
        and chemical dependency services.  Any amount that is not needed 
        for MFIP social services child care must be used for child care 
        assistance under Minnesota Statutes, section 119B.03.  The 
        commissioner of children, families, and learning must notify the 
        chairs of the family and early childhood committees in the house 
        and the senate if expenditures for MFIP social services child 
        care are expected to exceed appropriations under section 45, 
        subdivision 3.  The commissioner shall report to the legislature 
        by January 15, 2003, on the use of MFIP social services child 
        care with recommendations on the need for social services child 
        care and its effectiveness in promoting self-sufficiency. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 2.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 3, is amended to read: 
           Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
        childhood family education aid according to Minnesota Statutes, 
        section 124D.135: 
             $20,758,000 $20,725,000   .....     2002 
             $20,663,000 $20,624,000   .....     2003
           The 2002 appropriation includes $2,036,000 for 2001 and 
        $18,722,000 $18,689,000 for 2002.  
           The 2003 appropriation includes $2,081,000 $2,076,000 for 
        2002 and $18,582,000 $18,548,000 for 2003.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 3.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 7, is amended to read: 
           Subd. 7.  [SCHOOL AGE CARE AID.] For school age care aid 
        according to Minnesota Statutes, section 124D.22: 
             $221,000       .....     2002 
             $133,000 $100,000      .....     2003
           The 2002 appropriation includes $30,000 for 2001 and 
        $191,000 for 2002. 
           The 2003 appropriation includes $21,000 for 2002 and 
        $112,000 $79,000 for 2003. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 4.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 8, is amended to read: 
           Subd. 8.  [BASIC SLIDING FEE.] For child care assistance 
        according to Minnesota Statutes, section 119B.03: 
             $51,999,000    .....     2002 
             $51,999,000 $48,499,000   .....     2003
           Beginning in fiscal year 2004, the base appropriation is 
        $48,499,000. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 5.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 9, is amended to read: 
           Subd. 9.  [MFIP CHILD CARE.] For child care assistance 
        according to Minnesota Statutes, section 119B.05: 
             $82,253,000 $69,201,000   .....     2002 
             $78,606,000 $77,122,000   .....     2003 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 6.  Laws 2001, First Special Session chapter 3, 
        article 1, section 17, subdivision 11, is amended to read: 
           Subd. 11.  [CHILD CARE SERVICE GRANTS.] For child care 
        development activities under child care service grants according 
        to Minnesota Statutes, section 119B.21: 
             $1,865,000      .....     2002
             $1,865,000 $1,365,000     .....     2003
           Beginning in fiscal year 2004, the base is $1,365,000 from 
        the general fund. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 7.  Laws 2001, First Special Session chapter 3, 
        article 1, section 18, is amended to read: 
           Sec. 18.  [SPECIAL REVENUE; CHILD SUPPORT COLLECTIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] Appropriations in this section are from child support 
        collection payments in the special revenue fund pursuant to 
        Minnesota Statutes, section 119B.074.  The sums indicated are 
        appropriated to the department of children, families, and 
        learning for the fiscal years designated. 
           Subd. 2.  [CHILD CARE ASSISTANCE.] For child care 
        assistance according to Minnesota Statutes, section 119B.03: 
             $2,441,439     .....     2002 
             $2,340,251 $2,840,251    .....     2003
           Sec. 8.  Laws 2001, First Special Session chapter 3, 
        article 1, section 19, subdivision 3, is amended to read: 
           Subd. 3.  [TRANSITION YEAR FAMILIES.] To provide 
        uninterrupted assistance under Minnesota Statutes, section 
        119B.03, for families completing transition year child care 
        assistance: 
             $3,620,000 $1,404,000   .....     2002
             $4,040,000 $1,357,000   .....     2003
           Any balance in the first year does not cancel but is 
        available in the second year.  Any unspent balance from the 
        appropriations for 2002 and 2003 is returned to the TANF reserve.
        TANF dollars appropriated for this purpose in 2001 which are not 
        encumbered by January 1, 2002, are returned to the TANF reserve. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 9.  Laws 2001, First Special Session chapter 3, 
        article 1, section 19, subdivision 5, is amended to read: 
           Subd. 5.  [MFIP SOCIAL SERVICES CHILD CARE.] For social 
        services child care costs of eligible MFIP participants under 
        Minnesota Statutes, section 119B.05, subdivision 1, clause (5): 
             $3,297,000 $973,000   .....     2002
             $2,865,000 $997,000   .....     2003
           Any balance in the first year does not cancel but is 
        available in the second year.  Any unspent balance from the 
        appropriations for 2002 and 2003 is returned to the TANF reserve.
        TANF dollars appropriated for this purpose in 2001 which are not 
        encumbered by January 1, 2002, are returned to the TANF reserve. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 10.  Laws 2001, First Special Session chapter 3, 
        article 2, section 15, subdivision 3, is amended to read: 
           Subd. 3.  [COMMUNITY EDUCATION AID.] For community 
        education aid according to Minnesota Statutes, section 124D.20: 
             $14,209,000 $14,190,000   .....     2002
             $13,111,000 $ 8,186,000   .....     2003
           The 2002 appropriation includes $1,528,000 for 2001 and 
        $12,681,000 $12,662,000 for 2002.  
           The 2003 appropriation includes $1,409,000 $1,406,000 for 
        2002 and $11,702,000 $6,780,000 for 2003.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 11.  Laws 2001, First Special Session chapter 3, 
        article 3, section 9, subdivision 6, is amended to read: 
           Subd. 6.  [ADULT BASIC EDUCATION AUDITS; STATE DIRECTOR.] 
        For adult basic education audits under Minnesota Statutes, 
        section 124D.531, and for a state adult basic education director:
             $100,000       .....     2002 
             $275,000 $175,000      .....     2003 
           The fiscal year 2004 appropriation is $275,000 $175,000.  
        In fiscal year 2005 and thereafter, the base is $170,000 $70,000 
        from the general fund each year. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 12.  Laws 2001, First Special Session chapter 3, 
        article 4, section 5, subdivision 2, is amended to read: 
           Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
        according to Minnesota Statutes, sections 134.32 to 134.35: 
             $8,570,000     .....     2002 
             $8,570,000     .....     2003 
           The 2002 appropriation includes $857,000 for 2001 and 
        $7,713,000 for 2002. 
           The 2003 appropriation includes $857,000 for 2002 and 
        $7,713,000 for 2003. 
           Base level funding for fiscal year 2004 is 
        $9,723,000 $9,823,000 and $9,722,000 $9,822,000 for fiscal year 
        2005. 
           Sec. 13.  Laws 2001, First Special Session chapter 3, 
        article 4, section 5, subdivision 4, is amended to read: 
           Subd. 4.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
        aid to regional public library systems under Minnesota Statutes, 
        section 134.47: 
             $1,200,000     .....     2002 
             $1,200,000 $1,400,000    .....     2003 
           This is a one-time appropriation.  Any balance in the first 
        year does not cancel but is available in the second year. 
           Sec. 14.  [TANF APPROPRIATIONS.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] The sum indicated in this section is appropriated to 
        the commissioner of children, families, and learning from the 
        federal Temporary Assistance for Needy Families block grant for 
        the fiscal year designated.  This amount is available for 
        expenditure until June 30, 2003. 
           Subd. 2.  [BASIC SLIDING FEE CHILD CARE.] For child care 
        assistance according to Minnesota Statutes, section 119B.03: 
             $3,000,000     .....     2003 
           Sec. 15.  [REPEALER.] 
           Laws 2001, First Special Session chapter 3, article 3, 
        section 8, is repealed. 

                                   ARTICLE 3 
                         K-12 APPROPRIATION ADJUSTMENTS
           Section 1.  Minnesota Statutes 2000, section 120B.13, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SUBSIDY FOR EXAMINATION FEES.] The state may pay 
        all or part of the fee for advanced placement or international 
        baccalaureate examinations for pupils of low-income families in 
        public and nonpublic schools.  The commissioner shall adopt a 
        schedule for fee subsidies that may allow payment of the entire 
        fee for low-income families, as defined by the 
        commissioner.  The commissioner may also determine the 
        circumstances under which the fee is subsidized, in whole or in 
        part.  The commissioner shall determine procedures for state 
        payments of fees. 
           Sec. 2.  Minnesota Statutes 2000, section 124D.86, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INTEGRATION LEVY.] A district may levy an amount 
        equal to 33 37 percent for fiscal year 2000 and 2003, 22 percent 
        for fiscal year 2001 2004, 29 percent for fiscal year 2005, and 
        22 percent for fiscal year 2006 and thereafter of the district's 
        integration revenue as defined in subdivision 3. 
           Sec. 3.  Minnesota Statutes 2000, section 124D.86, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INTEGRATION AID.] A district's integration aid 
        equals 67 63 percent for fiscal year 2000 and 2003, 78 percent 
        for fiscal year 2001 2004, 71 percent for fiscal year 2005, and 
        78 percent for fiscal year 2006 and thereafter of the district's 
        integration revenue as defined in subdivision 3. 
           Sec. 4.  Minnesota Statutes 2001 Supplement, section 
        126C.05, subdivision 15, is amended to read: 
           Subd. 15.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
        enrolled in a learning year program under section 124D.128, an 
        area learning center under sections 123A.05 and 123A.06, an 
        alternative program approved by the commissioner, or a contract 
        alternative program under section 124D.68, subdivision 3, 
        paragraph (d), or subdivision 3a, for more than 1,020 hours in a 
        school year for a secondary student, more than 935 hours in a 
        school year for an elementary student, or more than 425 hours in 
        a school year for a kindergarten student without a disability, 
        that pupil may be counted as more than one pupil in average 
        daily membership.  The amount in excess of one pupil must be 
        determined by the ratio of the number of hours of instruction 
        provided to that pupil in excess of:  (i) the greater of 1,020 
        hours or the number of hours required for a full-time secondary 
        pupil in the district to 1,020 for a secondary pupil; (ii) the 
        greater of 935 hours or the number of hours required for a 
        full-time elementary pupil in the district to 935 for an 
        elementary pupil in grades 1 through 6; and (iii) the greater of 
        425 hours or the number of hours required for a full-time 
        kindergarten student without a disability in the district to 425 
        for a kindergarten student without a disability.  Hours that 
        occur after the close of the instructional year in June shall be 
        attributable to the following fiscal year.  A kindergarten 
        student must not be counted as more than 1.2 pupils in average 
        daily membership under this subdivision.  A student in grades 1 
        through 12 must not be counted as more than 1.5 pupils in 
        average daily membership under this subdivision. 
           (b)(i) To receive general education revenue for a pupil in 
        an alternative program that has an independent study component, 
        a district must meet the requirements in this paragraph.  The 
        district must develop, for the pupil, a continual learning plan 
        consistent with section 124D.128, subdivision 3.  Each school 
        district that has a state-approved public alternative program 
        must reserve revenue in an amount equal to at least 90 percent 
        of the district average general education revenue per pupil unit 
        less compensatory revenue per pupil unit times the number of 
        pupil units generated by students attending a state-approved 
        public alternative program.  The amount of reserved revenue 
        available under this subdivision may only be spent for program 
        costs associated with the state-approved public alternative 
        program.  Compensatory revenue must be allocated according to 
        section 126C.15, subdivision 2. 
           (ii) General education revenue for a pupil in an approved 
        alternative program without an independent study component must 
        be prorated for a pupil participating for less than a full year, 
        or its equivalent.  The district must develop a continual 
        learning plan for the pupil, consistent with section 124D.128, 
        subdivision 3.  Each school district that has a state-approved 
        public alternative program must reserve revenue in an amount 
        equal to at least 90 percent of the district average general 
        education revenue per pupil unit less compensatory revenue per 
        pupil unit times the number of pupil units generated by students 
        attending a state-approved public alternative program.  The 
        amount of reserved revenue available under this subdivision may 
        only be spent for program costs associated with the 
        state-approved public alternative program.  Compensatory revenue 
        must be allocated according to section 126C.15, subdivision 2.  
           (iii) General education revenue for a pupil in an approved 
        alternative program that has an independent study component must 
        be paid for each hour of teacher contact time and each hour of 
        independent study time completed toward a credit or graduation 
        standards necessary for graduation.  Average daily membership 
        for a pupil shall equal the number of hours of teacher contact 
        time and independent study time divided by 1,020. 
           (iv) For an alternative program having an independent study 
        component, the commissioner shall require a description of the 
        courses in the program, the kinds of independent study involved, 
        the expected learning outcomes of the courses, and the means of 
        measuring student performance against the expected outcomes.  
           Sec. 5.  [126C.457] [CAREER AND TECHNICAL LEVY.] 
           For taxes payable in 2003 only, a school district may levy 
        an amount equal to the greater of (1) $10,000, or (2) the 
        district's fiscal year 2001 entitlement for career and technical 
        aid under section 124D.453.  The district must recognize the 
        full amount of this levy as revenue for the fiscal year in which 
        it is certified.  Revenue received under this section must be 
        reserved and used only for career and technical programs.  
           Sec. 6.  Minnesota Statutes 2000, section 136F.68, is 
        amended to read: 
           136F.68 [STATE PROPERTY AGREEMENTS.] 
           Notwithstanding section 16B.24, or other law to the 
        contrary, the board may enter into an agreement with an 
        intermediate school district for the cooperative use of state 
        property for an initial period of ten years, which may be 
        renewed or extended for additional periods of up to ten years 
        each any period of time specified in the agreement. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 7.  Laws 1997, First Special Session chapter 4, 
        article 3, section 25, subdivision 7, is amended to read: 
           Subd. 7.  [WORKSTUDY STUDENT COMPENSATION.] For enabling 
        school districts to pay the employer's share of work study 
        students compensation under Minnesota Statutes, section 
        136A.233, subdivision 3: 
             $50,000        .....     1998 
             $50,000        .....     1999 
           Money shall be available to districts upon request until 
        the appropriation is exhausted February 14, 2002.  The 
        commissioner may establish an application procedure for 
        allocating the money to districts. 
           Sec. 8.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 2, is amended to read: 
           Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] (a) For 
        general and supplemental education aid:  
             $3,364,596,000 $3,404,787,000 .....     2002
             $3,506,910,000 $4,982,334,000 .....     2003
           The 2002 appropriation includes $318,932,000 $323,767,000 
        for 2001 and $3,045,664,000 $3,081,020,000 for 2002.  
           The 2003 appropriation includes $338,407,000 $335,220,000 
        for 2002 and $3,168,503,000 $4,647,114,000 for 2003.  
           (b) The fiscal year 2003 appropriation in paragraph (a) is 
        reduced by $1,901,000. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 9.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 2, is amended to read: 
           Subd. 2.  [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 
        PROGRAMS.] (a) For students' advanced placement and 
        international baccalaureate examination fees under Minnesota 
        Statutes 2000, section 120B.13, subdivision 3, and the training 
        and related costs for teachers and other interested educators 
        under Minnesota Statutes 2000, section 120B.13, subdivision 1: 
             $2,000,000     .....     2002 
             $2,000,000 $1,000,000    .....     2003 
           Any funds unexpended in the first year do not cancel and 
        are available in the second year. 
           (b) The advanced placement program shall receive 75 percent 
        of the appropriation each year and the international 
        baccalaureate program shall receive 25 percent of the 
        appropriation each year.  The department, in consultation with 
        representatives of the advanced placement and international 
        baccalaureate programs selected by the advanced placement 
        advisory council and IBMN, respectively, shall determine the 
        amounts of the expenditures each year for examination fees and 
        training and support programs for each program. 
           (c) Notwithstanding Minnesota Statutes, section 120B.13, 
        subdivision 1, $375,000 each year is for teachers to attend 
        subject matter summer training programs and follow-up support 
        workshops approved by the advanced placement or international 
        baccalaureate programs.  The amount of the subsidy for each 
        teacher attending an advanced placement or international 
        baccalaureate summer training program or workshop shall be the 
        same.  The commissioner shall determine the payment process and 
        the amount of the subsidy. 
           (d) Notwithstanding Minnesota Statutes, section 120B.13, 
        subdivision 3, in each year to the extent of available 
        appropriations, The commissioner shall pay all examination fees 
        for all students of low-income families under Minnesota 
        Statutes, section 120B.13, subdivision 3, and to the extent of 
        available appropriations shall also pay examination fees for 
        students sitting for an advanced placement examination, 
        international baccalaureate examination, or both.  If this 
        amount is not adequate, the commissioner may pay less than the 
        full examination fee. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 10.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 7, is amended to read: 
           Subd. 7.  [BEST PRACTICES SEMINARS.] For best practices 
        graduation rule seminars and other professional development 
        capacity building activities that assure proficiency in teaching 
        and implementation of graduation rule standards: 
             $5,260,000     .....     2002
             $3,480,000 $2,180,000    .....     2003
           $1,000,000 in fiscal year 2002 is for arts via the Internet 
        collaborative project between the Walker Art Center and the 
        Minneapolis Institute of Arts; $500,000 each year is for best 
        practices grants to intermediate school districts Nos. 287, 916, 
        and 917 to train teachers of special needs students under Laws 
        1998, chapter 398, article 5, section 42; and $250,000 each year 
        is for a grant to A Chance to Grow/New Visions for the Minnesota 
        Learning Resource Center.  
           The commissioner shall consider a curriculum development 
        grant, consistent with the graduation rule, to develop curricula 
        in the area of natural sciences including botany, horticulture, 
        and zoology.  The grant shall also be used to provide 
        instructional materials on the Internet.  The commissioner shall 
        consider best practices grants to districts for developing 
        gifted and talented services that are integrated with the 
        state's graduation standards.  The commissioner shall consider a 
        grant to independent school district No. 621, Mounds View, for a 
        pilot project to establish a parallel block schedule strategy in 
        grades 1 through 3. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 11.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 23, is amended to read: 
           Subd. 23.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
        GRANTS.] For education and employment transitions programming 
        under Minnesota Statutes, section 124D.46: 
             $775,000       .....     2002 
             $775,000       .....     2003 
           $250,000 each year is for ISEEK. 
           $450,000 each year is for youth apprenticeship grants and 
        to conduct a high school follow-up survey to include first, 
        third, and sixth year graduates of Minnesota schools. 
           $75,000 each year is for grants to school districts for the 
        junior achievement program. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           Sec. 12.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 25, as amended by Laws 2001, 
        First Special Session chapter 13, section 14, is amended to read:
           Subd. 25.  [SCHOOL EVALUATION SERVICES.] For contracting 
        with an independent school evaluation services contractor to 
        evaluate and report on school districts' academic and financial 
        performance under section 64:  
             $2,500,000 $1,500,000    .....     2002 
           Any balance in the first year does not cancel but is 
        available in the second year.  The base for this program is 
        $1,500,000 in fiscal year 2004 only.  
           Sec. 13.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 29, is amended to read: 
           Subd. 29.  [ALTERNATIVE TEACHER COMPENSATION.] For 
        alternative teacher compensation established under Minnesota 
        Statutes, sections 124D.945 to 124D.947: 
             $4,000,000 $3,000,000    .....     2002 
             $4,000,000 $3,700,000    .....     2003 
           If the appropriations under this subdivision are 
        insufficient to fund all program participants, the participants 
        shall be prioritized by the commissioner by the date of receipt 
        of the application.  A participant may receive less than the 
        maximum per pupil amount available under Minnesota Statutes, 
        section 124D.945, subdivision 3. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 14.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 11, is amended to read: 
           Subd. 11.  [WEB-BASED, INDIVIDUAL INTERAGENCY INTERVENTION 
        PLAN.] For ongoing development, administration, and interagency 
        training costs associated with a statewide, Web-based 
        application for the individual interagency intervention plan 
        required in Minnesota Statutes, section 125A.023: 
             $250,000     .....     2002 
             $250,000     .....     2003 
           This is a onetime appropriation.  
           Sec. 15.  Laws 2001, First Special Session chapter 6, 
        article 7, section 13, as amended by Laws 2001, First Special 
        Session chapter 13, section 15, is amended to read: 
           Sec. 13.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 
        FAMILIES, AND LEARNING.] 
           Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
        LEARNING.] Unless otherwise indicated, the sums indicated in 
        this section are appropriated from the general fund to the 
        department of children, families, and learning for the fiscal 
        years designated. 
           Subd. 2.  [DEPARTMENT.] (a) For the department of children, 
        families, and learning: 
             $31,530,000 $28,801,000   .....     2002
             $31,748,000 $27,827,000   .....     2003 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           (b) $684,000 $616,000 in 2002 and $690,000 $621,000 in 2003 
        are for the board of teaching. 
           (c) $165,000 each year is for the board of school 
        administrators. 
           (d) $500,000 in 2002 and $250,000 in 2003 and thereafter 
        are for the Minnesota Academic Excellence Foundation.  
           (e) $260,000 each year is for the Minnesota Children's 
        Museum; $50,000 in fiscal year 2002 is for the Duluth Children's 
        Museum. 
           (f) (e) The expenditures of federal grants and aids as 
        shown in the biennial budget document and its supplements are 
        approved and appropriated and shall be spent as indicated.  
           (g) (f) In preparing the department budget for fiscal years 
        2004-2005, the department shall shift all administrative funding 
        from aids appropriations into the appropriation for the 
        department. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 16.  Laws 2001, First Special Session chapter 6, 
        article 7, section 14, is amended to read: 
           Sec. 14.  [APPROPRIATIONS; PERPICH CENTER FOR ARTS 
        EDUCATION.] 
           The sums indicated in this section are appropriated from 
        the general fund to the Perpich Center for Arts Education for 
        the fiscal years designated: 
             $7,681,000 $7,431,000    .....     2002 
             $7,816,000 $7,316,000    .....     2003 
           $150,000 each year is to extend the partnership network to 
        up to five new partnership sites and for developing 
        whole-school, arts-based teaching and learning curriculum at new 
        sites. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 17.  [EXCESS COST AID ADJUSTMENT; CAMBRIDGE-ISANTI.] 
           For fiscal year 2002 only, the commissioner of children, 
        families, and learning must make a positive adjustment of 
        $400,000 to the special education excess cost-aid payment to 
        independent school district No. 911, Cambridge-Isanti.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 18.  [REPEALER.] 
           Laws 2001, First Special Session chapter 6, article 1, 
        section 31, is repealed retroactive to July 1, 2001. 

                                   ARTICLE 4
                           K-12 FORECAST ADJUSTMENTS 
           Section 1.  Minnesota Statutes 2001 Supplement, section 
        123B.54, is amended to read: 
           123B.54 [DEBT SERVICE APPROPRIATION.] 
           (a) $25,989,000 $25,987,000 in fiscal year 2002, 
        $35,163,000 $31,892,000 in fiscal year 2003, 
        $31,787,000 $36,629,000 in fiscal year 2004, and 
        $26,453,000 $36,931,000 in fiscal years 2005 and later are 
        appropriated from the general fund to the commissioner of 
        children, families, and learning for payment of debt service 
        equalization aid under section 123B.53.  
           (b) The appropriations in paragraph (a) must be reduced by 
        the amount of any money specifically appropriated for the same 
        purpose in any year from any state fund. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 2.  Laws 2001, First Special Session chapter 5, 
        article 2, section 29, subdivision 2, is amended to read: 
           Subd. 2.  [REFERENDUM TAX BASE REPLACEMENT AID.] For 
        referendum tax base replacement aid according to Minnesota 
        Statutes, section 126C.17, subdivision 7a: 
             $7,851,000 $7,616,000     .....     2003
           The 2003 appropriation includes $0 for 2002 and $7,851,000 
        $7,616,000 for 2003.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 3.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 4, is amended to read: 
           Subd. 4.  [ABATEMENT AID.] For abatement aid according to 
        Minnesota Statutes, section 127A.49:  
             $7,098,000 $5,698,000    .....     2002 
             $7,692,000 $2,990,000    .....     2003 
           The 2002 appropriation includes $640,000 for 2001 and 
        $6,458,000 $5,058,000 for 2002.  
           The 2003 appropriation includes $717,000 $562,000 for 2002 
        and $6,975,000 $2,428,000 for 2003.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 4.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 5, is amended to read: 
           Subd. 5.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
        education aid according to Minnesota Statutes, sections 123.79 
        and 123B.40 to 123B.43: 
             $14,099,000 $14,441,000   .....     2002 
             $16,472,000 $15,977,000   .....     2003 
           The 2002 appropriation includes $1,330,000 for 2001 and 
        $12,769,000 $13,111,000 for 2002. 
           The 2003 appropriation includes $1,419,000 $1,457,000 for 
        2002 and $15,053,000 $14,520,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 5.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 6, is amended to read: 
           Subd. 6.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
        pupil transportation aid under Minnesota Statutes, section 
        123B.92, subdivision 9: 
             $20,488,000 $20,635,000    .....     2002 
             $24,802,000 $25,347,000    .....     2003 
           The 2002 appropriation includes $2,000,000 for 2001 and 
        $18,488,000 $18,635,000 for 2002. 
           The 2003 appropriation includes $2,054,000 $2,070,000 for 
        2002 and $22,748,000 $23,277,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 6.  Laws 2001, First Special Session chapter 6, 
        article 1, section 54, subdivision 7, is amended to read: 
           Subd. 7.  [CONSOLIDATION TRANSITION AID.] For districts 
        consolidating under Minnesota Statutes, section 123A.485: 
             $675,000 $531,000       .....     2002 
             $669,000 $736,000       .....     2003 
           The 2002 appropriation includes $44,000 for 2001 and 
        $631,000 $487,000 for 2002. 
           The 2003 appropriation includes $70,000 $54,000 for 2002 
        and $599,000 $682,000 for 2003. 
           Any balance in the first year does not cancel but is 
        available in the second year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 7.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 4, is amended to read: 
           Subd. 4.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
        lease aid under Minnesota Statutes, section 124D.11, subdivision 
        4: 
             $16,554,000 $12,323,000   .....     2002 
             $25,176,000 $15,330,000   .....     2003 
           The 2002 appropriation includes $1,114,000 for 2001 and 
        $15,440,000 $11,209,000 for 2002. 
           The 2003 appropriation includes $1,715,000 $1,245,000 for 
        2002 and $23,461,000 $14,085,000 for 2003.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 8.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 5, is amended to read: 
           Subd. 5.  [CHARTER SCHOOL STARTUP GRANTS.] For charter 
        school startup cost aid under Minnesota Statutes, section 
        124D.11: 
             $2,738,000 $2,090,000    .....     2002 
             $3,143,000 $1,549,000    .....     2003 
           The 2002 appropriation includes $273,000 $258,000 for 2001 
        and $2,465,000 $1,832,000 for 2002.  
           The 2003 appropriation includes $274,000 $204,000 for 2002 
        and $2,869,000 $1,345,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 9.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 8, is amended to read: 
           Subd. 8.  [INTEGRATION AID.] For integration aid: 
             $65,478,000 $63,421,000     .....    2002 
             $51,996,000 $53,890,000     .....    2003 
           The 2002 appropriation includes $5,729,000 for 2001 and 
        $59,749,000 $57,692,000 for 2002. 
           The 2003 appropriation includes $6,639,000 $6,410,000 for 
        2002 and $45,357,000 $47,480,000 for 2003.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 10.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 11, is amended to read: 
           Subd. 11.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
        startup aid under Minnesota Statutes, section 124D.88: 
             $482,000 $475,000      .....     2002 
             $326,000 $298,000      .....     2003 
           The 2002 appropriation includes $25,000 for 2001 and 
        $457,000 $450,000 for 2002.  
           The 2003 appropriation includes $51,000 $50,000 for 2002 
        and $275,000 $248,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 11.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 15, is amended to read: 
           Subd. 15.  [SUCCESS FOR THE FUTURE.] For American Indian 
        success for the future grants according to Minnesota Statutes, 
        section 124D.81: 
             $2,047,000 $1,924,000    .....     2002
             $2,137,000     .....     2003
           The 2002 appropriation includes $0 for 2001 and $2,047,000 
        $1,924,000 for 2002. 
           The 2003 appropriation includes $255,000 $213,000 for 2002 
        and $2,132,000 $1,924,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 12.  Laws 2001, First Special Session chapter 6, 
        article 2, section 77, subdivision 18, is amended to read: 
           Subd. 18.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
        school aid under Minnesota Statutes, section 124D.83: 
             $2,520,000 $2,304,000    .....     2002
             $2,767,000 $2,408,000    .....     2003
           The 2002 appropriation includes $192,000 for 2001 and 
        $2,328,000 $2,112,000 for 2002. 
           The 2003 appropriation includes $258,000 $235,000 for 2002 
        and $2,509,000 $2,173,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 13.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 2, is amended to read: 
           Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
        aid according to Minnesota Statutes, section 125A.75: 
             $507,448,000 $507,841,000  .....     2002 
             $531,481,000 $532,282,000  .....     2003 
           The 2002 appropriation includes $47,400,000 for 2001 and 
        $460,048,000 $460,441,000 for 2002. 
           The 2003 appropriation includes $51,116,000 $51,160,000 for 
        2002 and $480,365,000 $481,122,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 14.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 3, is amended to read: 
           Subd. 3.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
        according to Minnesota Statutes, section 125A.75, subdivision 3, 
        for children with a disability placed in residential facilities 
        within the district boundaries for whom no district of residence 
        can be determined: 
             $1,877,000 $1,358,000    .....     2002 
             $2,033,000 $3,161,000    .....     2003 
           If the appropriation for either year is insufficient, the 
        appropriation for the other year is available.  
           Any balance in the first year does not cancel but is 
        available in the second year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 15.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 4, is amended to read: 
           Subd. 4.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
        teacher travel for home-based services according to Minnesota 
        Statutes, section 125A.75, subdivision 1: 
             $135,000 $143,000      .....     2002 
             $138,000 $148,000      .....     2003 
           The 2002 appropriation includes $13,000 $14,000 for 2001 
        and $122,000 $129,000 for 2002. 
           The 2003 appropriation includes $13,000 $15,000 for 2002 
        and $125,000 $133,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 16.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 5, is amended to read: 
           Subd. 5.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
        cost aid: 
             $102,665,000 $103,061,000  .....     2002 
             $104,773,000 $105,289,000  .....     2003 
           The 2002 appropriation includes $9,889,000 for 2001 and 
        $92,776,000 $93,172,000 for 2002. 
           The 2003 appropriation includes $10,308,000 $10,352,000 for 
        2002 and $94,465,000 $94,937,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 17.  Laws 2001, First Special Session chapter 6, 
        article 3, section 21, subdivision 7, is amended to read: 
           Subd. 7.  [TRANSITION PROGRAMS; STUDENTS WITH 
        DISABILITIES.] For aid for transition programs for pupils with 
        disabilities according to Minnesota Statutes, section 124D.454: 
             $8,954,000 $8,960,000    .....     2002 
             $8,939,000 $8,952,000    .....     2003 
           The 2002 appropriation includes $896,000 for 2001 and 
        $8,058,000 $8,064,000 for 2002.  
           The 2003 appropriation includes $895,000 $896,000 for 2002 
        and $8,044,000 $8,056,000 for 2003.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 18.  Laws 2001, First Special Session chapter 6, 
        article 4, section 27, subdivision 2, is amended to read: 
           Subd. 2.  [HEALTH AND SAFETY AID.] For health and safety 
        aid according to Minnesota Statutes, section 123B.57, 
        subdivision 5: 
             $14,980,000 $13,630,000   .....     2002 
             $14,550,000 $10,800,000   .....     2003 
           The 2002 appropriation includes $1,480,000 for 2001 and 
        $13,500,000 $12,150,000 for 2002. 
           The 2003 appropriation includes $1,500,000 $1,350,000 for 
        2002 and $13,050,000 $9,450,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 19.  Laws 2001, First Special Session chapter 6, 
        article 4, section 27, subdivision 3, is amended to read: 
           Subd. 3.  [DEBT SERVICE AID.] For debt service aid 
        according to Minnesota Statutes, section 123B.53, subdivision 6: 
             $25,989,000 $25,987,000   .....     2002 
             $35,523,000 $31,892,000   .....     2003 
           The 2002 appropriation includes $2,890,000 for 2001 and 
        $23,099,000 $23,097,000 for 2002. 
           The 2003 appropriation includes $2,567,000 $2,566,000 for 
        2002 and $32,956,000 $29,326,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 20.  Laws 2001, First Special Session chapter 6, 
        article 4, section 27, subdivision 5, is amended to read: 
           Subd. 5.  [ALTERNATIVE FACILITIES BONDING AID.] For 
        alternative facilities bonding aid, according to Minnesota 
        Statutes, section 123B.59, subdivision 1: 
             $19,279,000 $19,280,000   .....     2002 
             $19,287,000    .....     2003 
           The 2002 appropriation includes $1,921,000 for 2001 and 
        $17,358,000 $17,359,000 for 2002. 
           The 2003 appropriation includes $1,929,000 $1,928,000 for 
        2002 and $17,358,000 $17,359,000 for 2003. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 21.  Laws 2001, First Special Session chapter 6, 
        article 4, section 27, subdivision 6, is amended to read: 
           Subd. 6.  [TELECOMMUNICATION ACCESS COST REVENUE.] For 
        telecommunication access cost revenue under Minnesota Statutes, 
        section 125B.25: 
             $15,387,000 $14,800,000   .....     2002 
             $ 1,565,000 $ 1,500,000   .....     2003 
           The 2002 appropriation includes $1,300,000 for 2001 and 
        $14,087,000 $13,500,000 for 2002. 
           The 2003 appropriation includes $1,565,000 $1,500,000 for 
        2002 and $0 for 2003. 
           If the appropriation amount is insufficient, the 
        commissioner shall reduce the reimbursement rate in Minnesota 
        Statutes, section 125B.25, subdivisions 5 and 6, and the revenue 
        for the 2001-2002 school year shall be prorated.  The 
        reimbursement rate shall not exceed 100 percent. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 22.  Laws 2001, First Special Session chapter 6, 
        article 5, section 13, subdivision 2, is amended to read: 
           Subd. 2.  [SCHOOL LUNCH.] (a) For school lunch aid 
        according to Minnesota Statutes, section 124D.111, and Code of 
        Federal Regulations, title 7, section 210.17, and for school 
        milk aid according to Minnesota Statutes, section 124D.118:  
             $8,710,000     .....     2002 
             $8,950,000 $8,500,000    .....     2003 
           (b) Not more than $800,000 of the amount appropriated each 
        year may be used for school milk aid. 
           Sec. 23.  Laws 2001, First Special Session chapter 6, 
        article 5, section 13, subdivision 5, is amended to read: 
           Subd. 5.  [FAST BREAK TO LEARNING GRANTS.] For fast break 
        to learning grants under Minnesota Statutes, section 124D.1156: 
             $2,446,000     .....     2002 
             $2,839,000     .....     2003 
           The 2002 appropriation includes $0 for 2001 and $2,446,000 
        for 2002. 
           The 2003 appropriation includes $272,000 $271,000 for 2002 
        and $2,567,000 $2,568,000 for 2003. 

                                   ARTICLE 5
                                HIGHER EDUCATION
        Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
           The dollar amounts in the columns marked "APPROPRIATIONS" 
        are added to or, if shown in parentheses, are subtracted from 
        the appropriations in Laws 2001, First Special Session chapter 
        1, or other law to the specified agencies.  The appropriations 
        are from the general fund or any other named fund and are 
        available for the fiscal years indicated for each purpose.  The 
        figure 2002 or 2003 means that the addition to or subtraction 
        from the appropriations listed under the figure are for the 
        fiscal year ending June 30, 2002, or June 30, 2003, 
        respectively.  If only one figure is shown in the text for a 
        specified purpose, the addition or subtraction is for 2002 
        unless the context intends another fiscal year. 
                                SUMMARY BY FUND
                                  2002          2003           TOTAL
        General            $ ( 2,744,000) $ (47,256,000) $ (50,000,000)
                         SUMMARY BY AGENCY - ALL FUNDS
                                  2002          2003           TOTAL
        Higher Education 
        Services Office   $ ( 2,744,000)  $ (   931,000) $ ( 3,675,000)
        Board of Trustees of 
        the Minnesota State Colleges 
        and Universities                  $ (22,692,000) $ (22,692,000)
        Board of Regents of the 
        University of Minnesota           $ (23,633,000) $ (23,633,000)
                                      APPROPRIATIONS 
                                  Available for the Year 
                                      Ending June 30 
                                    2002         2003 
        Sec. 2.  HIGHER EDUCATION     
        SERVICES OFFICE
        Subdivision 1.  Total       
        Appropriation Changes   (2,744,000)   (  931,000)  ( 3,675,000)
        Subd. 2.  State Grants   1,460,000     2,995,000     4,455,000 
        Notwithstanding Laws 2001, First 
        Special Session chapter 1, article 1, 
        section 2, subdivision 2, savings in 
        the state grant program in fiscal year 
        2003 resulting from any increase in the 
        maximum federal grant over $3,750 or 
        from any other source, after use to 
        provide additional decreases in the 
        family responsibility for independent 
        students as provided by law, shall 
        remain in the state grant program.  
        A reduction of $75,000 each year is 
        made to appropriations for the summer 
        scholarship program.  A reduction of 
        $125,000 each year is made to 
        appropriations for the national service 
        scholars program.  The appropriation 
        for the advanced placement scholarship 
        is reduced by $75,000 in fiscal year 
        2003. 
        Subd. 3.  Interstate Tuition
        Reciprocity             (1,500,000)   (1,000,000)   (2,500,000)
        Subd. 4.  MnLink        (  822,000)       -0-       (  822,000)
        For fiscal year 2002, $822,000 of the 
        remaining appropriation in Laws 1997, 
        chapter 183, article 1, section 2, 
        subdivision 8, cancels to the general 
        fund. 
        Subd. 5.  Minitex       (  382,000)   (  737,000)   (1,119,000)
        Subd. 6.  Learning   
        Network of Minnesota    (  270,000)   (  900,000)   (1,170,000)
        Subd. 7.  Minnesota College 
        Savings Plan            (1,100,000)   (  900,000)   (2,000,000) 
        Beginning in fiscal year 2004, the base 
        appropriation for this program is 
        $1,520,000 each year. 
        Subd. 8.  Agency  
        Administration              -0-       (  389,000)   (  389,000)
        Notwithstanding Laws 2001, First 
        Special Session chapter 1, article 1, 
        section 2, subdivision 9, remaining 
        appropriations after final payments to 
        Youthworks grantees in an amount 
        estimated to be $130,000 cancels to the 
        general fund. 
        Sec. 3.  BOARD OF TRUSTEES OF THE
        MINNESOTA STATE COLLEGES AND UNIVERSITIES
        Total Appropriation Changes         (22,692,000)   (22,692,000)
        For fiscal years 2004 and 2005, the 
        base appropriation is reduced an 
        additional $1,786,000 each year. 
        The legislature intends that the board 
        of trustees should minimize the impact 
        of reductions in this section on 
        students by decreasing administrative 
        expenditures and reserve balances and 
        through programmatic restructuring 
        before increasing student tuition. 
        Sec. 4.  BOARD OF REGENTS OF
        THE UNIVERSITY OF MINNESOTA
        Total Appropriation Changes         (23,633,000)   (23,633,000)
        For fiscal years 2004 and 2005, the 
        base appropriation is reduced an 
        additional $1,858,000 each year. 
        The legislature intends that the board 
        of regents should minimize the impact 
        of reductions in this section on 
        students by decreasing administrative 
        expenditures and reserve balances and 
        through programmatic restructuring 
        before increasing student tuition.  
        Reductions under this section may be 
        made to general fund appropriations in 
        Laws 2001, First Special Session 
        chapter 1, article 1, section 4, except 
        for appropriations to the agricultural 
        and extension service under Laws 2001, 
        First Special Session chapter 1, 
        article 1, section 4, subdivision 4, 
        paragraph (a). 
           Sec. 5.  Minnesota Statutes 2001 Supplement, section 
        136A.121, subdivision 6, is amended to read: 
           Subd. 6.  [COST OF ATTENDANCE.] (a) The recognized cost of 
        attendance consists of allowances specified in law for living 
        and miscellaneous expenses, and 
           (1) for public institutions, the actual 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 private institution tuition and fee 
        maximums established in law. 
           (b) For the purpose of paragraph (a), clause (2), the 
        private institution tuition and fee maximum for two- and 
        four-year, private, residential, liberal arts, degree-granting 
        colleges and universities must be the same. 
           (c) For a student registering for less than full time, the 
        office shall prorate the living and miscellaneous expense 
        allowance to the actual number of credits for which the student 
        is enrolled. 
           The recognized cost of attendance for a student who is 
        confined to a Minnesota correctional institution shall consist 
        of the tuition and fee component in paragraph (a), clause (1) or 
        (2), with no allowance for living and miscellaneous expenses. 
           [EFFECTIVE DATE.] This section is effective July 1, 2002. 
           Sec. 6.  Minnesota Statutes 2001 Supplement, section 
        136A.124, subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBILITY.] A grant must be awarded to a 
        student scoring an average of three or higher on five or more 
        advanced placement examinations on full-year courses or an 
        average of four or higher on five or more international 
        baccalaureate examinations on full-year courses.  Two half-year 
        courses may be considered as one full-year course.  The annual 
        amount of each grant must be based on the student's scores on 
        the examinations and the funds available under this section. 
           A grant under this subdivision must not affect a 
        recipient's eligibility for a state grant under section 136A.121.
           Sec. 7.  Minnesota Statutes 2001 Supplement, section 
        136A.124, subdivision 4, is amended to read: 
           Subd. 4.  [ELIGIBLE INSTITUTION.] An "eligible institution" 
        under this section is a public or private four-year 
        degree-granting college or university or a two-year public 
        college in Minnesota that has a credit and placement policy for 
        either advanced placement or international baccalaureate 
        scholarship recipients, or both.  Each eligible institution must 
        annually certify its policies to the office commissioner of 
        children, families, and learning.  The office commissioner of 
        children, families, and learning must provide each Minnesota 
        secondary school with a copy of the post-secondary advanced 
        placement and international baccalaureate policies of eligible 
        institutions. 
           Sec. 8.  Minnesota Statutes 2001 Supplement, section 
        136G.03, subdivision 25, is amended to read: 
           Subd. 25.  [PENALTY.] "Penalty" means the amount 
        established by the office that is applied against the earnings 
        portion of a nonqualified distribution.  The amount established 
        by the office must be the minimum required to be a more than de 
        minimis penalty under section 529 of the Internal Revenue Code.  
        The office must impose, collect, and apply penalties consistent 
        with section 529 of the Internal Revenue Code. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 9.  Minnesota Statutes 2001 Supplement, section 
        136G.07, subdivision 1, is amended to read: 
           Subdivision 1.  [STATE BOARD TO INVEST.] The state board of 
        investment shall invest the money deposited in accounts in the 
        plan and all investments are directed by the board.  Except as 
        permitted by the Internal Revenue Code, neither persons making 
        contributions to an account nor beneficiaries may direct the 
        investment of contributions to the plan or plan earnings.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 10.  Minnesota Statutes 2001 Supplement, section 
        136G.09, subdivision 8, is amended to read: 
           Subd. 8.  [MAXIMUM ACCOUNT BALANCE LIMIT.] (a) When a 
        contribution is made, the total account balance of all accounts 
        held for the same beneficiary, including matching grant 
        accounts, must not exceed the maximum account balance limit as 
        determined under this subdivision. 
           (b) The maximum account balance limit is reduced for 
        withdrawals from any account for the same beneficiary that are 
        qualified distributions, distributions due to the death or 
        disability of the beneficiary, or distributions due to the 
        beneficiary receiving a scholarship.  Subsequent contributions 
        must not be made to replenish an account if the contribution 
        results in the total account balance of all accounts held for 
        the beneficiary to exceed the reduced maximum account balance 
        limit.  Any subsequent contributions must be rejected.  A 
        subsequent contribution accepted in error must be returned to 
        the account owner plus any earnings on the contribution less any 
        applicable penalties. 
           (c) The maximum account balance limit is not reduced for a 
        nonqualified distribution or a rollover distribution.  When such 
        distributions are taken, subsequent contributions may be made to 
        replenish an account up to the maximum account balance limit. 
           (d) The office must establish a maximum account balance 
        limit.  The maximum account balance limit is four times the cost 
        of one year of qualified higher education expenses at the most 
        expensive eligible educational institution in Minnesota.  The 
        office must adjust the maximum account balance limit, as 
        necessary, or on January 1 of each year.  Qualified higher 
        education expenses for the academic year prior to January 1 of 
        each year must be used in calculating the maximum account 
        balance limit.  The maximum account balance limit must not 
        exceed the amount permitted for the plan to qualify as a 
        qualified state tuition program under section 529 of the 
        Internal Revenue Code.  For calendar years 2002 and 2003, the 
        maximum account balance is $235,000. 
           (e) If the total account balance of all accounts held for a 
        single beneficiary reaches the maximum account balance limit 
        prior to the end of that calendar year, the beneficiary may 
        receive an applicable matching grant for that calendar year. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 11.  [REPEALER.] 
           Laws 1997, chapter 183, article 2, section 19, is repealed. 

                                   ARTICLE 6 
                                  CORRECTIONS 
        Section 1.  [APPROPRIATIONS/REDUCTIONS.] 
           The dollar amounts in the columns under "APPROPRIATIONS" 
        are added to or, if shown in parentheses, are subtracted from 
        the appropriations in Laws 2001, First Special Session chapters 
        8, 9, 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 "2002" or "2003" means that the addition to or 
        subtraction from the appropriations listed under the figure are 
        for the fiscal year ending June 30, 2002, or June 30, 2003, 
        respectively. 
                                                2002           2003 
        APPROPRIATION REDUCTIONS              (5,165,000)   (11,489,000)
                                                   APPROPRIATIONS 
                                                2002           2003
        Sec. 2.  BOARD OF PUBLIC
        DEFENSE                                   -0-       (1,153,000)
        Sec. 3.  CORRECTIONS
        Subdivision 1.  Total 
        Appropriation Changes                (5,165,000)   (10,113,000)
        Subd. 2.  Adult Institutions         (5,200,000)    (1,750,000)
        The base for fiscal year 2004 shall be 
        reduced by $8,145,000, and for fiscal 
        year 2005 by $8,145,000.  The 
        commissioner of corrections shall 
        develop an agencywide spending plan for 
        the 2004-2005 biennium and report to 
        the chairs and ranking minority members 
        of the house and senate committees with 
        jurisdiction over criminal justice 
        policy and funding on its 
        recommendations by January 15, 2003. 
        Subd. 3.  Juvenile Services             -0-           (115,000)
        Subd. 4.  Community Services           35,000       (7,948,000)
        [CLEARWATER COUNTY PROBATION SERVICES.] 
        $35,000 the first year and $74,000 the 
        second year are for an increase to 
        probation services provided to 
        Clearwater county.  It is anticipated 
        that the county will reimburse the 
        state for these costs and that these 
        proceeds will be deposited in the 
        general fund. 
        [JUVENILE RESIDENTIAL TREATMENT 
        GRANTS.] $5,000,000 the second year is 
        to reduce juvenile residential 
        treatment grants.  
        [EXTENDED JUVENILE JURISDICTION 
        REIMBURSEMENT.] $1,200,000 the second 
        year is to reduce extended juvenile 
        jurisdiction reimbursement grants.  
        [PRETRIAL BAIL EVALUATION 
        REIMBURSEMENT.] $322,000 the second 
        year is to eliminate pretrial bail 
        evaluation reimbursement.  
        [COMMUNITY REENTRY PROGRAM.] $200,000 
        the second year is to eliminate the 
        community reentry program.  
        [PROBATION SERVICES.] $800,000 the 
        second year is to reduce the Community 
        Corrections Act subsidy funding.  
        $80,000 the second year is to reduce 
        county probation officer 
        reimbursement.  $320,000 the second 
        year is to reduce probation and 
        supervised release services provided by 
        the department.  These are onetime 
        reductions. 
        $100,000 the second year is to reduce 
        funding for the remote electronic 
        alcohol monitoring project. 
        Subd. 5.  Management Services                         (300,000)
        Sec. 4.  OMBUDSMAN FOR CORRECTIONS       -0-          (168,000)
        Sec. 5.  SENTENCING GUIDELINES
        COMMISSION                               -0-           (55,000)
        The base for fiscal year 2004 shall be 
        reduced by $60,000 and for fiscal year 
        2005 by $60,000. 
         Sec. 6.  ADMINISTRATION 
        [ISSUANCE OF REQUEST FOR PROPOSALS; 
        FELONY-LEVEL DWI OFFENDERS.](a) The 
        commissioner of administration shall 
        issue a request for proposals by March 
        1, 2004, and shall select a vendor by 
        July 1, 2004, to provide housing and 
        chemical dependency treatment for 
        felony-level driving while impaired 
        offenders. 
        (b) In establishing the criteria a 
        vendor must meet and in specifying 
        preferences for vendors to meet, the 
        commissioner of administration shall 
        consult with the executive director of 
        the sentencing guidelines commission, 
        the commissioner of corrections, and 
        the commissioner of human services, as 
        appropriate.  The commissioner of 
        administration shall consider the 
        following factors in issuing the 
        request for proposals: 
        (1) the level of security required for 
        housing felony-level DWI offenders 
        based upon the offense pattern of 
        current repeat DWI offenders; 
        (2) the type and length of chemical 
        dependency treatment and aftercare 
        needed for felony-level DWI offenders; 
        (3) the area of the state from which 
        offenders will come based upon the 
        offense pattern of current DWI 
        offenders; 
        (4) other treatment and rehabilitation 
        programs appropriate for offenders in a 
        detention facility focused on housing 
        felony-level DWI offenders; and 
        (5) other factors deemed appropriate 
        for consideration by the commissioner 
        of administration, corrections, or 
        human services, or by the executive 
        director of the sentencing guidelines 
        commission. 
        (c) The department of corrections shall 
        respond to the request for proposals. 
           Sec. 7.  Minnesota Statutes 2000, section 120A.34, is 
        amended to read: 
           120A.34 [VIOLATIONS; PENALTIES.] 
           Any person who fails or refuses to provide for instruction 
        of a child of whom the person has legal custody, and who is 
        required by section 120A.22, subdivision 5, to receive 
        instruction, when notified so to do by a truant officer or other 
        official, or any person who induces or attempts to induce any 
        child unlawfully to be absent from school, or who knowingly 
        harbors or employs, while school is in session, any child 
        unlawfully absent from school, shall be guilty of a petty 
        misdemeanor.  Any fines collected shall be paid into the county 
        treasury for the benefit of the school district in which the 
        offense is committed. 
           Sec. 8.  Minnesota Statutes 2001 Supplement, section 
        242.192, is amended to read: 
           242.192 [CHARGES TO COUNTIES.] 
           (a) Until June 30, 2002, The commissioner shall charge 
        counties or other appropriate jurisdictions 65 percent of the 
        per diem cost of confinement, excluding educational costs and 
        nonbillable service, of juveniles at the Minnesota correctional 
        facility-Red Wing and of juvenile females committed to the 
        commissioner of corrections.  This charge applies to juveniles 
        committed to the commissioner of corrections and juveniles 
        admitted to the Minnesota correctional facility-Red Wing under 
        established admissions criteria.  This charge applies to both 
        counties that participate in the Community Corrections Act and 
        those that do not.  The commissioner shall determine the per 
        diem cost of confinement based on projected population, pricing 
        incentives, market conditions, and the requirement that expense 
        and revenue balance out over a period of two years.  All money 
        received under this section must be deposited in the state 
        treasury and credited to the general fund. 
           (b) Until June 30, 2002, the department of corrections 
        shall be responsible for 35 percent of the per diem cost of 
        confinement described in this section. 
           Sec. 9.  Minnesota Statutes 2001 Supplement, section 
        244.054, subdivision 2, is amended to read: 
           Subd. 2.  [CONTENT OF PLAN.] If an offender chooses to have 
        a discharge plan developed, the commissioner of human services 
        shall develop and implement a discharge plan, which must include 
        at least the following: 
           (1) at least 90 days before the offender is due to be 
        discharged, the commissioner of human services shall designate 
        an agent of the department of human services with mental health 
        training to serve as the primary person responsible for carrying 
        out discharge planning activities; 
           (2) at least 75 days before the offender is due to be 
        discharged, the offender's designated agent shall: 
           (i) obtain informed consent and releases of information 
        from the offender that are needed for transition services; 
           (ii) contact the county human services department in the 
        community where the offender expects to reside following 
        discharge, and inform the department of the offender's impending 
        discharge and the planned date of the offender's return to the 
        community; determine whether the county or a designated 
        contracted provider will provide case management services to the 
        offender; refer the offender to the case management services 
        provider; and confirm that the case management services provider 
        will have opened the offender's case prior to the offender's 
        discharge; and 
           (iii) refer the offender to appropriate staff in the county 
        human services department in the community where the offender 
        expects to reside following discharge, for enrollment of the 
        offender if eligible in medical assistance or general assistance 
        medical care, using special procedures established by process 
        and department of human services bulletin; 
           (3) at least 2-1/2 months before discharge, the offender's 
        designated agent shall secure timely appointments for the 
        offender with a psychiatrist no later than 30 days following 
        discharge, and with other program staff at a community mental 
        health provider that is able to serve former offenders with 
        serious and persistent mental illness; 
           (4) at least 30 days before discharge, the offender's 
        designated agent shall convene a predischarge assessment and 
        planning meeting of key staff from the programs in which the 
        offender has participated while in the correctional facility, 
        the offender, and the supervising agent, and the mental health 
        case management services provider assigned to the offender.  At 
        the meeting, attendees shall provide background information and 
        continuing care recommendations for the offender, including 
        information on the offender's risk for relapse; current 
        medications, including dosage and frequency; therapy and 
        behavioral goals; diagnostic and assessment information, 
        including results of a chemical dependency evaluation; 
        confirmation of appointments with a psychiatrist and other 
        program staff in the community; a relapse prevention plan; 
        continuing care needs; needs for housing, employment, and 
        finance support and assistance; and recommendations for 
        successful community integration, including chemical dependency 
        treatment or support if chemical dependency is a risk factor.  
        Immediately following this meeting, the offender's designated 
        agent shall summarize this background information and continuing 
        care recommendations in a written report; 
           (5) immediately following the predischarge assessment and 
        planning meeting, the provider of mental health case management 
        services who will serve the offender following discharge shall 
        offer to make arrangements and referrals for housing, financial 
        support, benefits assistance, employment counseling, and other 
        services required in sections 245.461 to 245.486; 
           (6) at least ten days before the offender's first scheduled 
        postdischarge appointment with a mental health provider, the 
        offender's designated agent shall transfer the following records 
        to the offender's case management services provider and 
        psychiatrist:  the predischarge assessment and planning report, 
        medical records, and pharmacy records.  These records may be 
        transferred only if the offender provides informed consent for 
        their release; 
           (7) upon discharge, the offender's designated agent shall 
        ensure that the offender leaves the correctional facility with 
        at least a ten-day supply of all necessary medications; and 
           (8) upon discharge, the prescribing authority at the 
        offender's correctional facility shall telephone in 
        prescriptions for all necessary medications to a pharmacy in the 
        community where the offender plans to reside.  The prescriptions 
        must provide at least a 30-day supply of all necessary 
        medications, and must be able to be refilled once for one 
        additional 30-day supply. 
           Sec. 10.  Minnesota Statutes 2001 Supplement, section 
        260B.007, subdivision 16, is amended to read: 
           Subd. 16.  [JUVENILE PETTY OFFENDER; JUVENILE PETTY 
        OFFENSE.] (a) "Juvenile petty offense" includes a juvenile 
        alcohol offense, a juvenile controlled substance offense, a 
        violation of section 609.685, or a violation of a local 
        ordinance, which by its terms prohibits conduct by a child under 
        the age of 18 years which would be lawful conduct if committed 
        by an adult.  "Juvenile petty offense" also includes a habitual 
        truant, as defined in section 260C.007, subdivision 19, unless a 
        petition brought under chapter 260C states that an out-of-home 
        placement is sought for the child.  
           (b) Except as otherwise provided in paragraph (c), 
        "juvenile petty offense" also includes an offense that would be 
        a misdemeanor if committed by an adult.  
           (c) "Juvenile petty offense" does not include any of the 
        following: 
           (1) a misdemeanor-level violation of section 518B.01, 
        588.20, 609.224, 609.2242, 609.324, 609.563, 609.576, 609.66, 
        609.746, 609.748, 609.79, or 617.23; 
           (2) a major traffic offense or an adult court traffic 
        offense, as described in section 260B.225; 
           (3) a misdemeanor-level offense committed by a child whom 
        the juvenile court previously has found to have committed a 
        misdemeanor, gross misdemeanor, or felony offense; or 
           (4) a misdemeanor-level offense committed by a child whom 
        the juvenile court has found to have committed a 
        misdemeanor-level juvenile petty offense on two or more prior 
        occasions, unless the county attorney designates the child on 
        the petition as a juvenile petty offender notwithstanding this 
        prior record.  As used in this clause, "misdemeanor-level 
        juvenile petty offense" includes a misdemeanor-level offense 
        that would have been a juvenile petty offense if it had been 
        committed on or after July 1, 1995.  
           (d) A child who commits a juvenile petty offense is a 
        "juvenile petty offender."  
           Sec. 11.  Minnesota Statutes 2001 Supplement, section 
        260C.141, subdivision 3, is amended to read: 
           Subd. 3.  [CHILD IN NEED OF PROTECTION OR SERVICES; 
        HABITUAL TRUANT.] (a) If there is a school attendance review 
        board or county attorney mediation program operating in the 
        child's school district, a petition alleging that a child is in 
        need of protection or services as a habitual truant under 
        section 260C.007, subdivision 6, clause (14), may not be filed 
        until the applicable procedures under section 260A.06 or 260A.07 
        have been followed. 
           (b) A petition alleging that a child is in need of 
        protection or services as a habitual truant under section 
        260C.007, subdivision 6, clause (14), must give notice that the 
        petitioner is seeking an out-of-home placement of the child.  If 
        the petition does not state that an out-of-home placement is 
        sought for the child, the matter must proceed as a juvenile 
        petty offense action under chapter 260B.  
           Sec. 12.  Minnesota Statutes 2000, section 260C.163, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPOINTMENT OF COUNSEL.] (a) The child, parent, 
        guardian or custodian has the right to effective assistance of 
        counsel in connection with a proceeding in juvenile court. 
           (b) If they desire counsel but are unable to employ it, the 
        court shall appoint counsel to represent the child who is ten 
        years of age or older or the parents or guardian in any case in 
        which it feels that such an appointment is appropriate.  
           (c) Counsel for the child shall not also act as the child's 
        guardian ad litem.  
           (d) In any proceeding where the subject of a petition for a 
        child in need of protection or services is not represented by an 
        attorney, the court shall determine the child's preferences 
        regarding the proceedings, if the child is of suitable age to 
        express a preference.  
           (e) A child, parent, guardian, or custodian is not entitled 
        to counsel at public expense in a case involving a child alleged 
        to be in need of protection or services as a habitual truant 
        under section 260C.007, subdivision 6, clause (14), unless the 
        petition states that an out-of-home placement is sought for the 
        child.  
           Sec. 13.  Minnesota Statutes 2000, section 611.17, is 
        amended to read: 
           611.17 [FINANCIAL INQUIRY; STATEMENTS; CO-PAYMENT.] 
           (a) Each judicial district must screen requests under 
        paragraph (b).  
           (b) Upon a request for the appointment of counsel, the 
        court shall make appropriate inquiry into the financial 
        circumstances of the applicant, who shall submit a financial 
        statement under oath or affirmation setting forth the 
        applicant's assets and liabilities, including the value of any 
        real property owned by the applicant, whether homestead or 
        otherwise, less the amount of any encumbrances on the real 
        property, the source or sources of income, and any other 
        information required by the court.  The applicant shall be under 
        a continuing duty while represented by a public defender to 
        disclose any changes in the applicant's financial circumstances 
        that might be relevant to the applicant's eligibility for a 
        public defender.  The state public defender shall furnish 
        appropriate forms for the financial statements.  The forms must 
        contain conspicuous notice of the applicant's continuing duty to 
        disclose to the court changes in the applicant's financial 
        circumstances.  The information contained in the statement shall 
        be confidential and for the exclusive use of the court and the 
        public defender appointed by the court to represent the 
        applicant except for any prosecution under section 609.48.  A 
        refusal to execute the financial statement or produce financial 
        records constitutes a waiver of the right to the appointment of 
        a public defender. 
           (c) Upon disposition of the case, an individual who has 
        received public defender services shall pay to the court a $28 
        co-payment for representation provided by a public defender, 
        unless the co-payment is, or has been, waived by the court.  The 
        co-payment shall be deposited in the state general fund.  If a 
        term of probation is imposed as a part of an offender's 
        sentence, the co-payment required by this section must not be 
        made a condition of probation.  The co-payment required by this 
        section is a civil obligation and must not be made a condition 
        of a criminal sentence. 
           Sec. 14.  Laws 2001, First Special Session chapter 8, 
        article 11, section 14, is amended to read: 
           Sec. 14.  [FELONY DWI STUDY.] 
           By January 15, 2004, and each year thereafter through 
        January 15, 2007, the commissioner of corrections must report to 
        the chairs and ranking minority members of the house and senate 
        committees having jurisdiction over criminal justice and 
        judiciary finance issues on the implementation and effects of 
        the felony level driving while impaired offense.  The report 
        must include the following information on felony level driving 
        while impaired offenses: 
           (1) the number of persons convicted; 
           (2) the month and county of conviction; 
           (3) the offenders' ages and gender; 
           (4) the offenders' prior impaired driving histories and 
        prior criminal histories; 
           (5) the number of trials taken to verdict, separating out 
        cases tried to a judge versus cases tried to a jury, and the 
        number of convictions for each; 
           (3) (6) the number of offenders incarcerated locally and 
        the term of incarceration; 
           (4) (7) the number placed on probation and the length of 
        the probation; 
           (5) (8) the number for whom probation is revoked, the 
        reasons for revocation, and the consequences imposed; 
           (6) (9) the number given an executed prison sentence upon 
        conviction and the length of the sentence; 
           (7) (10) the number given an executed prison sentence upon 
        revocation of probation and the length of sentence; 
           (8) (11) the number who successfully complete treatment in 
        prison; 
           (9) (12) the number placed on intensive supervision 
        following release from incarceration; 
           (10) (13) the number who violate supervised release and the 
        consequences imposed; and 
           (11) (14) per diem costs, including treatment costs, for 
        offenders incarcerated under the felony sentence provisions; and 
           (15) any other information the commissioner deems relevant 
        to estimating future costs. 
           The commissioner of corrections shall share preliminary 
        information with the commissioner of administration for the 
        purpose of issuance of a request for proposals under section 6. 
           Sec. 15.  [COLLABORATIVE CASE PLANNING FOR CERTAIN MENTALLY 
        ILL PERSONS UNDER CORRECTIONAL SUPERVISION; POLICIES AND 
        PRACTICES; REPORTS REQUIRED.] 
           Subdivision 1.  [DEVELOPMENT OF POLICIES AND 
        PRACTICES.] Correctional and social services agencies in each 
        county that delivers direct case management services shall 
        develop policies and practices that maximize collaborative case 
        planning for adult and juvenile offenders under correctional 
        supervision who have been diagnosed with serious and persistent 
        mental illness or severe emotional disturbance.  To the degree 
        resources are available, the policies and practices must 
        determine how to: 
           (1) ensure that the offender receives the best possible 
        mental health case management expertise; 
           (2) determine which case management model best delivers 
        case management services; 
           (3) maximize the efficiency of case management services; 
        and 
           (4) maximize the recoupment of federal financial 
        participation of medical assistance and other forms of funding. 
           Subd. 2.  [REPORTS REQUIRED.] By December 31, 2002, the 
        agencies described in subdivision 1 shall submit a report on 
        their mental health correctional policies and practices to the 
        department of corrections.  By March 1, 2003, the commissioner 
        of corrections shall submit a statewide report on the mental 
        health correctional policies and practices to the chairs and 
        ranking minority members of the senate and house of 
        representatives committees and divisions with jurisdiction over 
        mental health and corrections policy and funding. 
           Sec. 16.  [DATA SHARING ON CERTAIN MENTALLY ILL PERSONS 
        UNDER CORRECTIONAL SUPERVISION.] 
           Notwithstanding any other law to the contrary, correctional 
        and social services agencies may share data on adult and 
        juvenile offenders under correctional supervision who have been 
        diagnosed with serious and persistent mental illness or severe 
        emotional disturbance for the purpose of engaging in 
        collaborative case planning as described in section 15. 

                                   ARTICLE 7 
                      PUBLIC SAFETY AND TRANSPORTATION AND 
                          OTHER AGENCY APPROPRIATIONS 
        Section 1.  [TRANSPORTATION AND OTHER AGENCY APPROPRIATIONS.] 
           The dollar amounts in the columns marked "APPROPRIATIONS" 
        are added to or, if shown in parentheses, are subtracted from 
        the appropriations in Laws 2001, First Special Session chapters 
        8, 9, or other law to the specified agencies.  The 
        appropriations are from the general fund or any other named fund 
        and are available for the fiscal years indicated for each 
        purpose.  The figure 2002 or 2003 means that the addition to or 
        subtraction from the appropriations listed under the figure are 
        for the fiscal year ending June 30, 2002, or June 30, 2003, 
        respectively.  If only one figure is shown in the text for a 
        specified purpose, the addition or subtraction is for 2002 
        unless the context intends another fiscal year. 
                                SUMMARY BY FUND
                                  2002          2003           TOTAL
        APPROPRIATIONS
        General            $   (2,018,000) $  (6,932,000) $  (8,950,000)
        TRANSFERS IN           (2,705,000)    (1,996,000)    (4,701,000)
        Sec. 2.  TRANSPORTATION     
        Subdivision 1.  Total Appropriation
        Changes                                    -0-         (510,000)
        Subd. 2.  Aeronautics                      -0-          (50,000)
        This reduction is from the 
        appropriation from the general fund for 
        air transportation services.  This 
        reduction reduces the agency's budget 
        base by $50,000. 
        Subd. 3.  Transit                          -0-         (400,000)
        This reduction is from the 
        appropriation from the general fund for 
        transit administration.  This reduction 
        reduces the agency's budget base by 
        $400,000. 
        Subd. 4.  Railroads and
        Waterways                                  -0-          (60,000)
        This reduction is from the 
        appropriation from the general fund and 
        reduces the agency's budget base by 
        $60,000. 
        Sec. 3.  METROPOLITAN COUNCIL
        Metropolitan Council
        Transit                                    -0-       (2,715,000)
        Of these reductions: 
        (1) $600,000 the second year is from 
        metro transit administration.  This 
        reduction reduces the agency's budget 
        base by $600,000; 
        (2) $100,000 the second year is from 
        metropolitan transportation services 
        other than metro transit.  This reduces 
        the agency's budget base by $100,000; 
        and 
        (3) $2,015,000 the second year is from 
        metropolitan council transit operations 
        other than metro mobility. 
        The council shall first seek to achieve 
        this reduction by: 
        (a) increasing operating revenue; or 
        (b) reducing operating expenses by 
        reducing or eliminating service on 
        routes with a fare box recovery of less 
        than ten percent, or reducing nonpeak 
        service. 
        This reduction reduces the agency's 
        budget base by $2,015,000. 
        Sec. 4.  PUBLIC SAFETY
        Subdivision 1.  Total Appropriation
        Changes                               (2,018,000)    (3,296,000)
        Subd. 2.  Emergency Management             -0-         (200,000)
        For emergency management, the base for 
        fiscal year 2004 shall be reduced by 
        $3,627,000 and for fiscal year 2005 by 
        $3,627,000. 
        Subd. 3.  Fire Marshal                    -0-           (84,000)
        Subd. 4.  Alcohol and Gambling
        Enforcement                               -0-           (84,000)
        [BACKGROUND CHECK FEE.] The fee charged 
        by the alcohol and gambling division to 
        Indian tribal governments for 
        investigations and background checks 
        under Minnesota Statutes, section 
        3.9221, is increased from $8 to $15, 
        effective July 1, 2002. 
        [BACKGROUND CHECK FEE.] The fee charged 
        by the alcohol and gambling division to 
        manufacturers and distributors of 
        gambling devices for background checks 
        under Minnesota Statutes, section 
        299L.07, subdivision 5, is increased 
        from $8 to $15, effective July 1, 2002. 
        Subd. 5.  Crime Victims
        Services Center                        (384,000)      (1,368,000)
        [SHELTER PER DIEMS.] $600,000 the 
        second year is a reduction in per diem 
        funding for shelters. The base for the 
        crime victim services center shall be 
        reduced by $600,000 in fiscal year 2004 
        and $600,000 in fiscal year 2005 to 
        reflect reduced funding for shelters. 
        [CRIME VICTIMS SERVICES STAFF AND 
        GRANTS.] $384,000 the first year and 
        $768,000 the second year are reductions 
        for crime victims services staff and 
        grants.  For crime victims services 
        grants, the base for fiscal year 2004 
        shall be reduced by $2,000,000 and for 
        fiscal year 2005 by $2,000,000. 
        Subd. 6.  Law Enforcement
        and Community Grants                 (1,634,000)        (685,000)
        [DRUG POLICY AND VIOLENCE PREVENTION 
        GRANTS.] $1,292,000 the first year and 
        $142,000 the second year are to reduce 
        drug policy and violence prevention 
        grants. The base for law enforcement 
        and community grants shall be reduced 
        by $243,000 in fiscal year 2004 and 
        $243,000 in fiscal year 2005 to reflect 
        reduced funding for drug policy and 
        violence prevention grants. 
        [MODEL POLICING; MENTAL ILLNESS CALLS.] 
        $150,000 the first year is to eliminate 
        the onetime appropriation for the model 
        policing program mental illness calls. 
        [CAMP RIPLEY WEEKEND CAMP.] $175,000 
        the second year is to eliminate the 
        Camp Ripley weekend camp.  
        [VIOLENCE PREVENTION COUNCIL.] $75,000 
        the first year and $75,000 the second 
        year are to eliminate grants to the 
        violence prevention council.  
        [GANG STRIKE FORCE.] $117,000 the first 
        year and $117,000 the second year are 
        to reduce the appropriation for gang 
        strike force grants.  The base for this 
        program shall be $1,515,000 for the 
        fiscal year beginning July 1, 2003. 
        [STAFF SAVINGS.] $176,000 the second 
        year is to reduce staff.  The base for 
        the office of drug policy and violence 
        prevention shall be reduced by $176,000 
        in fiscal year 2004 and $176,000 in 
        fiscal year 2005 to reflect decreased 
        funding for staff. 
        [AUTOMOBILE THEFT PREVENTION ACCOUNT.] 
        By June 30, 2002, the commissioner of 
        finance shall transfer the available 
        unencumbered balance from the 
        automobile theft prevention account in 
        the special revenue fund to the general 
        fund estimated to be $1,317,000.  
        Minnesota Statutes, section 168A.40, 
        subdivision 4, does not apply to money 
        transferred to the general fund under 
        this paragraph.  
        The commissioner may not reduce the 
        current allocation of federal Byrne 
        grant funds for the youth experiencing 
        alternatives (YEA)/Camp Ripley programs.
        Subd. 7.  State Patrol -
        Capitol Security                           -0-         (175,000)
        This amount reduces the cost of 
        executive protection and reduces the 
        agency's budget base for executive 
        protection. 
        Subd. 8.  Administration 
        and Related Services                       -0-         (500,000)
        This reduction is from the amount 
        appropriated from the general fund for 
        transfer by the commissioner of finance 
        to the trunk highway fund on December 
        31, 2002.  This reduction reduces the 
        agency's budget base by $500,000. 
        Subd. 9.  Driver and
        Vehicle Services                           -0-         (200,000)
        The commissioner shall not achieve this 
        reduction by reducing the number of 
        driver license examining stations in 
        greater Minnesota below the number open 
        on April 1, 2002.  This reduction 
        reduces the agency's budget base by 
        $200,000. 
        Sec. 5.  CRIME VICTIM OMBUDSMAN            -0-         (411,000)
           Sec. 6.  Minnesota Statutes 2000, section 13.871, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CRIME VICTIMS.] (a)  [CRIME VICTIM NOTICE OF 
        RELEASE.] Data on crime victims who request notice of an 
        offender's release are classified under section 611A.06.  
           (b)  [SEX OFFENDER HIV TESTS.] Results of HIV tests of sex 
        offenders under section 611A.19, subdivision 2, are classified 
        under that section.  
           (c)  [BATTERED WOMEN.] Data on battered women maintained by 
        grantees for emergency shelter and support services for battered 
        women are governed by section 611A.32, subdivision 5.  
           (d) [VICTIMS OF DOMESTIC ABUSE.] Data on battered women and 
        victims of domestic abuse maintained by grantees and recipients 
        of per diem payments for emergency shelter for battered women 
        and support services for battered women and victims of domestic 
        abuse are governed by sections 611A.32, subdivision 5, and 
        611A.371, subdivision 3. 
           (e)  [CRIME VICTIM CLAIMS FOR REPARATIONS.] Claims and 
        supporting documents filed by crime victims seeking reparations 
        are classified under section 611A.57, subdivision 6.  
           (f)  [CRIME VICTIM OMBUDSMAN OVERSIGHT ACT.] Data 
        maintained by the crime victim ombudsman commissioner of public 
        safety under the Crime Victim Oversight Act are classified under 
        section 611A.74, subdivision 2.  
           Sec. 7.  Minnesota Statutes 2001 Supplement, section 
        16A.88, subdivision 1, is amended to read: 
           Subdivision 1.  [GREATER MINNESOTA TRANSIT FUND.] The 
        greater Minnesota transit fund is established within the state 
        treasury.  Money in the fund is annually appropriated to the 
        commissioner of transportation for assistance to transit systems 
        outside the metropolitan area under section 174.24.  Beginning 
        in fiscal year 2003, the commissioner may use up to $400,000 
        each year for administration of the transit program. 
           Sec. 8.  Minnesota Statutes 2000, section 135A.15, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [POLICY REQUIRED.] The board of trustees of 
        the Minnesota state colleges and universities shall, and the 
        University of Minnesota is requested to, adopt a clear, 
        understandable written policy on sexual harassment and sexual 
        violence that informs victims of their rights under the crime 
        victims bill of rights, including the right to assistance from 
        the crime victims reparations board and the office of the crime 
        victim ombudsman commissioner of public safety.  The policy must 
        apply to students and employees and must provide information 
        about their rights and duties.  The policy must apply to 
        criminal incidents occurring on property owned by the 
        post-secondary system or institution in which the victim is a 
        student or employee of that system or institution.  It must 
        include procedures for reporting incidents of sexual harassment 
        or sexual violence and for disciplinary actions against 
        violators.  During student registration, each technical college, 
        community college, or state university shall, and the University 
        of Minnesota is requested to, provide each student with 
        information regarding its policy.  A copy of the policy also 
        shall be posted at appropriate locations on campus at all 
        times.  Each private post-secondary institution that is an 
        eligible institution as defined in section 136A.101, subdivision 
        4, must adopt a policy that meets the requirements of this 
        section.  
           Sec. 9.  Minnesota Statutes 2000, section 168A.40, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AUTOMOBILE THEFT PREVENTION ACCOUNT.] A special 
        revenue account is created in the state treasury to be credited 
        with the proceeds of the surcharge imposed under subdivision 3.  
        Of the revenue in the account, $1,300,000 each year must be 
        transferred to the general fund.  Revenues in excess of 
        $1,300,000 each year may be used only for the automobile theft 
        prevention program described in section 299A.75. 
           Sec. 10.  Minnesota Statutes 2001 Supplement, section 
        171.29, subdivision 2, is amended to read: 
           Subd. 2.  [REINSTATEMENT FEES AND SURCHARGES, ALLOCATION.] 
        (a) A person whose driver's license has been revoked as provided 
        in subdivision 1, except under section 169A.52, 169A.54, or 
        609.21, shall pay a $30 fee before the driver's license is 
        reinstated. 
           (b) A person whose driver's license has been revoked as 
        provided in subdivision 1 under section 169A.52, 169A.54, or 
        609.21, shall pay a $250 fee plus a $40 surcharge before the 
        driver's license is reinstated.  Beginning July 1, 2002, the 
        surcharge is $145.  Beginning July 1, 2003, the surcharge is 
        $380.  The $250 fee is to be credited as follows: 
           (1) Twenty percent must be credited to the trunk highway 
        fund. 
           (2) Fifty-five Sixty-seven percent must be credited to the 
        general fund. 
           (3) Eight percent must be credited to a separate account to 
        be known as the bureau of criminal apprehension account.  Money 
        in this account may be appropriated to the commissioner of 
        public safety and the appropriated amount must be apportioned 80 
        percent for laboratory costs and 20 percent for carrying out the 
        provisions of section 299C.065. 
           (4) Twelve percent must be credited to a separate account 
        to be known as the alcohol-impaired driver education account.  
        Money in the account is appropriated as follows: 
           (i) in fiscal year 2002: 
           (A) the first $200,000 to the commissioner of children, 
        families, and learning for programs for elementary and secondary 
        school students; and 
           (B) the remainder credited to the commissioner of public 
        safety to be spent as grants through March 31, 2002, to the 
        Minnesota highway safety center at St. Cloud State University 
        for programs relating to alcohol and highway safety education in 
        elementary and secondary schools and then from April 1, 2002, 
        through June 30, 2002, for programs described in item (ii); and 
           (ii) after June 30, 2002, to the commissioner of public 
        safety for grants for programs relating to alcohol and highway 
        safety education in elementary and secondary schools. 
           (5) Five percent must be credited to a separate account to 
        be known as the traumatic brain injury and spinal cord injury 
        account.  The money in the account is annually appropriated to 
        the commissioner of health to be used as follows:  35 percent 
        for a contract with a qualified community-based organization to 
        provide information, resources, and support to assist persons 
        with traumatic brain injury and their families to access 
        services, and 65 percent to maintain the traumatic brain injury 
        and spinal cord injury registry created in section 144.662.  For 
        the purposes of this clause, a "qualified community-based 
        organization" is a private, not-for-profit organization of 
        consumers of traumatic brain injury services and their family 
        members.  The organization must be registered with the United 
        States Internal Revenue Service under section 501(c)(3) as a 
        tax-exempt organization and must have as its purposes:  
           (i) the promotion of public, family, survivor, and 
        professional awareness of the incidence and consequences of 
        traumatic brain injury; 
           (ii) the provision of a network of support for persons with 
        traumatic brain injury, their families, and friends; 
           (iii) the development and support of programs and services 
        to prevent traumatic brain injury; 
           (iv) the establishment of education programs for persons 
        with traumatic brain injury; and 
           (v) the empowerment of persons with traumatic brain injury 
        through participation in its governance. 
        No patient's name, identifying information or identifiable 
        medical data will be disclosed to the organization without the 
        informed voluntary written consent of the patient or patient's 
        guardian, or if the patient is a minor, of the parent or 
        guardian of the patient. 
           (c) The surcharge must be credited to a separate account to 
        be known as the remote electronic alcohol monitoring program 
        account.  The commissioner shall transfer the balance of this 
        account to the commissioner of finance on a monthly basis for 
        deposit in the general fund. 
           (d) When these fees are collected by a licensing agent, 
        appointed under section 171.061, a handling charge is imposed in 
        the amount specified under section 171.061, subdivision 4.  The 
        reinstatement fees and surcharge must be deposited in an 
        approved state depository as directed under section 171.061, 
        subdivision 4. 
           Sec. 11.  Minnesota Statutes 2001 Supplement, section 
        256.022, subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION.] The commissioner of human 
        services shall establish a review panel for purposes of 
        reviewing investigating agency determinations regarding 
        maltreatment of a child in a facility in response to requests 
        received under section 626.556, subdivision 10i, paragraph (b).  
        The review panel consists of the commissioners of health; human 
        services; children, families, and learning; public safety; and 
        corrections; the ombudsman for crime victims; and the ombudsman 
        for mental health and mental retardation; or their designees.  
           Sec. 12.  Minnesota Statutes 2001 Supplement, section 
        299A.75, subdivision 1, is amended to read: 
           Subdivision 1.  [PROGRAM DESCRIBED; COMMISSIONER'S DUTIES.] 
        (a) The commissioner of public safety shall: 
           (1) develop and sponsor the implementation of statewide 
        plans, programs, and strategies to combat automobile theft, 
        improve the administration of the automobile theft laws, and 
        provide a forum for identification of critical problems for 
        those persons dealing with automobile theft; 
           (2) coordinate the development, adoption, and 
        implementation of plans, programs, and strategies relating to 
        interagency and intergovernmental cooperation with respect to 
        automobile theft enforcement; 
           (3) annually audit the plans and programs that have been 
        funded in whole or in part to evaluate the effectiveness of the 
        plans and programs and withdraw funding should the commissioner 
        determine that a plan or program is ineffective or is no longer 
        in need of further financial support from the fund; 
           (4) develop a plan of operation including: 
           (i) an assessment of the scope of the problem of automobile 
        theft, including areas of the state where the problem is 
        greatest; 
           (ii) an analysis of various methods of combating the 
        problem of automobile theft; 
           (iii) a plan for providing financial support to combat 
        automobile theft; 
           (iv) a plan for eliminating car hijacking; and 
           (v) an estimate of the funds required to implement the 
        plan; and 
           (5) distribute money pursuant to subdivision 3 from the 
        automobile theft prevention special revenue account for 
        automobile theft prevention activities, including: 
           (i) paying the administrative costs of the program; 
           (ii) providing financial support to the state patrol and 
        local law enforcement agencies for automobile theft enforcement 
        teams; 
           (iii) providing financial support to state or local law 
        enforcement agencies for programs designed to reduce the 
        incidence of automobile theft and for improved equipment and 
        techniques for responding to automobile thefts; 
           (iv) providing financial support to local prosecutors for 
        programs designed to reduce the incidence of automobile theft; 
           (v) providing financial support to judicial agencies for 
        programs designed to reduce the incidence of automobile theft; 
           (vi) providing financial support for neighborhood or 
        community organizations or business organizations for programs 
        designed to reduce the incidence of automobile theft and to 
        educate people about the common methods of automobile theft, the 
        models of automobiles most likely to be stolen, and the times 
        and places automobile theft is most likely to occur; and 
           (vii) providing financial support for automobile theft 
        educational and training programs for state and local law 
        enforcement officials, driver and vehicle services exam and 
        inspections staff, and members of the judiciary. 
           (b) The commissioner may not spend in any fiscal year more 
        than ten percent of the money in the fund for the program's 
        administrative and operating costs.  The commissioner is 
        annually appropriated and must distribute the full amount of the 
        proceeds credited to the automobile theft prevention special 
        revenue account each year, less the transfer of $1,300,000 each 
        year to the general fund described in section 168A.40, 
        subdivision 4. 
           Sec. 13.  Minnesota Statutes 2000, section 299F.011, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [FEES.] A fee of $100 shall be charged by the 
        state fire marshal for each plan review involving: 
           (1) flammable liquids under Minnesota Rules, part 
        7510.3650; 
           (2) motor vehicle fuel-dispensing stations under Minnesota 
        Rules, part 7510.3610; or 
           (3) liquefied petroleum gases under Minnesota Rules, part 
        7510.3670. 
           Sec. 14.  Minnesota Statutes 2000, section 299L.02, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REVOLVING ACCOUNT.] The director shall deposit 
        in a separate account in the state treasury all money received 
        from Indian tribal governments for charges for investigations 
        and background checks under compacts negotiated under section 
        3.9221, except for $7 from each charge that shall be deposited 
        in the general fund.  Money in the account is appropriated to 
        the director for the purpose of carrying out the director's 
        powers and duties under those compacts. 
           Sec. 15.  Minnesota Statutes 2000, section 299L.07, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INVESTIGATION.] Before a license under this 
        section is granted, the director may conduct a background and 
        financial investigation of the applicant, including the 
        applicant's sources of financing.  The director may, or shall 
        when required by law, require that fingerprints be taken and the 
        director may forward the fingerprints to the Federal Bureau of 
        Investigation for a national criminal history check.  The 
        director may charge an investigation fee to cover the cost of 
        the investigation.  Of this fee, $7 from each charge shall be 
        deposited in the general fund. 
           Sec. 16.  Minnesota Statutes 2000, section 611A.371, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PURPOSE.] The purpose of the per diem 
        grant program is to provide reimbursement in a timely, efficient 
        manner to local programs for the reasonable and necessary costs 
        of providing battered women and their children with food, 
        lodging, and safety.  Per diem Grant funding may not be used for 
        other purposes. 
           Sec. 17.  Minnesota Statutes 2001 Supplement, section 
        611A.372, is amended to read: 
           611A.372 [DUTIES OF DIRECTOR.] 
           In addition to any other duties imposed by law, the 
        director, with the approval of the commissioner of public 
        safety, shall: 
           (1) supervise the administration of per diem grant payments 
        to designated shelter facilities; 
           (2) collect data on shelter facilities; 
           (3) conduct an annual evaluation of the per diem grant 
        program; 
           (4) report to the governor and the legislature on the need 
        for emergency secure shelter; 
           (5) develop an application process for shelter facilities 
        to follow in seeking reimbursement under the per diem grant 
        program; and 
           (6) adopt rules to implement and administer sections 
        611A.37 to 611A.375. 
           Sec. 18.  Minnesota Statutes 2000, section 611A.373, is 
        amended to read: 
           611A.373 [PAYMENTS.] 
           Subdivision 1.  [PAYMENT REQUESTS.] Payments to designated 
        shelter facilities must be in the form of a grant.  Designated 
        shelter facilities may submit requests for payment monthly based 
        on the number of persons housed their expenses.  The process for 
        the submission of payments and for the submission of requests 
        may be established by the director.  Upon approval of the 
        request for payment by the center, payments shall be made 
        directly to designated shelter facilities from per diem grant 
        funds on behalf of women and their children who reside in the 
        shelter facility.  Payments made to a designated shelter 
        facility must not exceed the annual reserve grant amount for 
        that facility unless approved by the director.  These payments 
        must not affect the eligibility of individuals who reside in 
        shelter facilities for public assistance benefits, except when 
        required by federal law or regulation. 
           Subd. 2.  [RESERVE GRANT AMOUNT.] The center shall 
        calculate annually the reserve the grant amount for each 
        designated shelter facility.  This calculation may be based upon 
        program type, average occupancy rates, and licensed capacity 
        limits.  The total of all reserve grant amounts shall not exceed 
        the legislative per diem appropriation.  
           Subd. 3.  [ACCOUNTABILITY.] Shelter facilities must comply 
        with reporting requirements and any other measures imposed by 
        the Minnesota center for crime victim services to improve 
        accountability and program outcomes including, but not limited 
        to, information on all restricted or unrestricted fund balances. 
           Sec. 19.  Minnesota Statutes 2000, section 611A.72, is 
        amended to read: 
           611A.72 [CITATION.] 
           Sections 611A.72 to 611A.74 may be cited as the "Crime 
        Victim Ombudsman Oversight Act."  
           Sec. 20.  Minnesota Statutes 2000, section 611A.73, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPROPRIATE AUTHORITY.] "Appropriate authority" 
        includes anyone who is the subject of a complaint under sections 
        611A.72 to 611A.74 to the crime victim ombudsman commissioner or 
        anyone within the agency who is in a supervisory position with 
        regard to one who is the subject of a complaint under sections 
        611A.72 to 611A.74. 
           Sec. 21.  Minnesota Statutes 2000, section 611A.73, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of public safety.  
           Sec. 22.  Minnesota Statutes 2001 Supplement, section 
        611A.74, subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION AUTHORITY UNDER THIS ACT.] The 
        office of crime victim ombudsman for Minnesota is created.  The 
        ombudsman shall be appointed by the governor, shall serve in the 
        unclassified service at the pleasure of the governor, and shall 
        be selected without regard to political affiliation.  No person 
        may serve as ombudsman while holding any other public office.  
        The ombudsman is directly accountable to the governor and must 
        periodically report to the commissioner of public safety on the 
        operations and activities of the office.  The ombudsman 
        commissioner shall have the authority under sections 611A.72 to 
        611A.74 to investigate decisions, acts, and other matters of the 
        criminal justice system so as to promote the highest attainable 
        standards of competence, efficiency, and justice for crime 
        victims in the criminal justice system.  
           Sec. 23.  Minnesota Statutes 2000, section 611A.74, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DUTIES.] The crime victim ombudsman commissioner 
        may investigate complaints concerning possible violation of the 
        rights of crime victims or witnesses provided under this 
        chapter, the delivery of victim services by victim assistance 
        programs, the administration of the crime victims reparations 
        act, and other complaints of mistreatment by elements of the 
        criminal justice system or victim assistance programs.  The 
        ombudsman commissioner shall act as a liaison, when the 
        ombudsman commissioner deems necessary, between agencies, either 
        in the criminal justice system or in victim assistance programs, 
        and victims and witnesses.  The ombudsman commissioner may be 
        concerned with activities that strengthen procedures and 
        practices which lessen the risk that objectionable 
        administrative acts will occur.  The ombudsman commissioner must 
        be made available through the use of a toll free telephone 
        number and shall answer questions concerning the criminal 
        justice system and victim services put to the ombudsman 
        commissioner by victims and witnesses in accordance with 
        the ombudsman's commissioner's knowledge of the facts or law, 
        unless the information is otherwise restricted.  The ombudsman 
        commissioner shall establish a procedure for referral to the 
        crime victim crisis centers, the crime victims reparations 
        board, and other victim assistance programs when services are 
        requested by crime victims or deemed necessary by the ombudsman 
        commissioner.  
           The ombudsman's commissioner's files are confidential data 
        as defined in section 13.02, subdivision 3, during the course of 
        an investigation or while the files are active.  Upon completion 
        of the investigation or when the files are placed on inactive 
        status, they are private data on individuals as defined in 
        section 13.02, subdivision 12.  
           Sec. 24.  Minnesota Statutes 2000, section 611A.74, 
        subdivision 3, is amended to read: 
           Subd. 3.  [POWERS.] The crime victim ombudsman commissioner 
        has those powers necessary to carry out the duties set out in 
        subdivision 2, including:  
           (a) The ombudsman commissioner may investigate, with or 
        without a complaint, any action of an element of the criminal 
        justice system or a victim assistance program included in 
        subdivision 2. 
           (b) The ombudsman commissioner may request and shall be 
        given access to information and assistance the ombudsman 
        commissioner considers necessary for the discharge of 
        responsibilities.  The ombudsman commissioner may inspect, 
        examine, and be provided copies of records and documents of all 
        elements of the criminal justice system and victim assistance 
        programs.  The ombudsman commissioner may request and shall be 
        given access to police reports pertaining to juveniles and 
        juvenile delinquency petitions, notwithstanding section 260B.171 
        or 260C.171.  Any information received by the ombudsman 
        commissioner retains its data classification under chapter 13 
        while in the ombudsman's commissioner's possession.  Juvenile 
        records obtained under this subdivision may not be released to 
        any person. 
           (c) The ombudsman commissioner may prescribe the methods by 
        which complaints are to be made, received, and acted upon; may 
        determine the scope and manner of investigations to be made; and 
        subject to the requirements of sections 611A.72 to 611A.74, may 
        determine the form, frequency, and distribution of ombudsman 
        commissioner conclusions, recommendations, and proposals.  
           (d) After completing investigation of a complaint, the 
        ombudsman commissioner shall inform in writing the complainant, 
        the investigated person or entity, and other appropriate 
        authorities of the action taken.  If the complaint involved the 
        conduct of an element of the criminal justice system in relation 
        to a criminal or civil proceeding, the ombudsman's 
        commissioner's findings shall be forwarded to the court in which 
        the proceeding occurred.  
           (e) Before announcing a conclusion or recommendation that 
        expressly or impliedly criticizes an administrative agency or 
        any person, the ombudsman commissioner shall consult with that 
        agency or person.  
           Sec. 25.  Minnesota Statutes 2000, section 611A.74, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NO COMPELLED TESTIMONY.] Neither the 
        ombudsman commissioner nor any member of the ombudsman's 
        commissioner's staff may be compelled to testify or produce 
        evidence in any judicial or administrative proceeding with 
        respect to matters involving the exercise of official 
        duties under sections 611A.72 to 611A.74 except as may be 
        necessary to enforce the provisions of this section.  
           Sec. 26.  Minnesota Statutes 2000, section 611A.74, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RECOMMENDATIONS.] (a) On finding a complaint 
        valid after duly considering the complaint and whatever material 
        the ombudsman commissioner deems pertinent, the ombudsman 
        commissioner may recommend action to the appropriate authority.  
           (b) If the ombudsman commissioner makes a recommendation to 
        an appropriate authority for action, the authority shall, within 
        a reasonable time period, but not more than 30 days, inform the 
        ombudsman commissioner about the action taken or the reasons for 
        not complying with the recommendation.  
           (c) The ombudsman commissioner may publish conclusions and 
        suggestions by transmitting them to the governor, the 
        legislature or any of its committees, the press, and others who 
        may be concerned.  When publishing an opinion adverse to an 
        administrative agency, the ombudsman commissioner shall include 
        any statement the administrative agency may have made to 
        the ombudsman commissioner by way of explaining its past 
        difficulties or its present rejection of the ombudsman's 
        commissioner's proposals.  
           Sec. 27.  Minnesota Statutes 2000, section 611A.74, 
        subdivision 6, is amended to read: 
           Subd. 6.  [REPORTS.] In addition to whatever reports 
        the ombudsman commissioner may make from time to time, the 
        ombudsman commissioner shall biennially report to the 
        legislature and to the governor concerning the exercise 
        of ombudsman the commissioner's functions under sections 611A.72 
        to 611A.74 during the preceding biennium.  The biennial report 
        is due on or before the beginning of the legislative session 
        following the end of the biennium.  
           Sec. 28.  Laws 2001, First Special Session chapter 8, 
        article 4, section 10, subdivision 1, is amended to read: 
        Subdivision 1.  Total 
        Appropriation                         88,001,000     84,299,000 
                                              87,851,000     84,149,000 
                      Summary by Fund
                                2002          2003
        General             84,919,000    81,195,000 
                            84,769,000    81,045,000 
        Special Revenue      2,674,000     2,687,000 
        State Government 
        Special Revenue          7,000         7,000  
        Environmental           47,000        49,000  
        Trunk Highway          354,000       361,000   
        [APPROPRIATIONS FOR PROGRAMS.] The 
        amounts that may be spent from this 
        appropriation for each program are 
        specified in the following subdivisions.
        [DWI PENALTY FUNDS.] The commissioners 
        of public safety and transportation 
        must jointly report annually to the 
        chairs and ranking minority members of 
        the house of representatives and senate 
        committees having jurisdiction over 
        transportation and public safety 
        finance issues on the expenditure of 
        any federal funds available under the 
        repeat offender transfer program, 
        Public Law Number 105-206, section 164. 
           Sec. 29.  Laws 2001, First Special Session chapter 8, 
        article 4, section 10, subdivision 7, is amended to read: 
        Subd. 7.  Law Enforcement 
        and Community Grants
                      Summary by Fund
        General               6,942,000     6,136,000
                              6,792,000     5,986,000
        Special Revenue       2,130,000     2,130,000
        [UNENCUMBERED BALANCES.] Any 
        unencumbered balances remaining in the 
        first year do not cancel but are 
        available for the second year. 
        [ENCUMBERED BALANCES.] Notwithstanding 
        Minnesota Statutes, section 16A.28, 
        appropriations encumbered under 
        contract on or before June 30 each year 
        are available until the following June 
        30. 
        [SPECIAL REVENUE; RACIAL PROFILING.] 
        The appropriation from the special 
        revenue account must be spent according 
        to article 7, section 14. 
        [FUNDING TO COMBAT METHAMPHETAMINE 
        TRAFFICKING AND PRODUCTION.] $471,000 
        the first year is a onetime 
        appropriation for grants under 
        Minnesota Statutes, section 299C.065, 
        subdivision 1, clause (1), including 
        grants to the bureau of criminal 
        apprehension for increased law 
        enforcement costs relating to 
        methamphetamine trafficking and 
        production.  Grant recipients must be 
        chosen by the office of drug policy and 
        violence prevention after consulting 
        with the narcotics enforcement 
        coordinating committee.  Grants to drug 
        task force agencies must be allocated 
        in a balanced manner among rural, 
        suburban, and urban agencies.  Grants 
        may be awarded and used for the 
        following items relating to clandestine 
        methamphetamine labs: 
        (1) increased general law enforcement 
        costs; 
        (2) training materials and public 
        awareness publications; 
        (3) peace officer training courses, 
        certification, and equipment; and 
        (4) reimbursements to law enforcement 
        agencies for extraordinary or unusual 
        overtime and investigative expenses. 
        Grants must not be used for 
        methamphetamine lab site cleanup or 
        disposal of seized equipment or 
        chemicals.  Additionally, grants must 
        not supplant current local spending or 
        other state or federal grants allocated 
        by the commissioner for similar 
        purposes. 
        [GANG STRIKE FORCE GRANTS.] $750,000 
        the first year and $750,000 the second 
        year are onetime appropriations for 
        criminal gang strike force grants under 
        Minnesota Statutes, section 299A.66.  
        The commissioner of public safety must 
        provide direct administrative and 
        fiscal oversight for all grants awarded 
        under Minnesota Statutes, section 
        299A.66. 
        [USE OF BYRNE GRANTS.] The commissioner 
        must consider using a portion of 
        federal Byrne grant funds for grants to:
        (1) the center for reducing rural 
        violence; 
        (2) organizations or agencies that 
        provide gang prevention services, such 
        as the boys and girls club, the youth 
        experiencing alternatives (YEA) 
        program, the police athletic league, 
        agencies eligible for Asian-American 
        juvenile crime intervention and 
        prevention grants under Minnesota 
        Statutes, section 299A.2994, 
        subdivision 3, clause (2), or other 
        similar organizations; and 
        (3) continue funding the pilot project 
        to provide neighborhood-based services 
        to crime victims and witnesses funded 
        in Laws 1999, chapter 216, article 1, 
        section 8, subdivision 3, and described 
        in Laws 1999, chapter 216, article 2, 
        section 23. 
        [JOINT DOMESTIC ABUSE PROSECUTION 
        UNIT.] $197,000 the first year is a 
        onetime appropriation for a grant to 
        the Ramsey county attorney's office to 
        continue funding the joint domestic 
        abuse prosecution unit.  This 
        appropriation is available until June 
        30, 2003. 
        The Ramsey county attorney's office and 
        the St. Paul city attorney's office 
        shall continue the joint domestic abuse 
        prosecution unit pilot project 
        established by the legislature under 
        Laws 2000, chapters 471, section 3; and 
        488, article 6, section 10.  The 
        appropriation must be used to continue 
        the pilot project beyond its first year 
        of operation and allow a meaningful 
        evaluation that will benefit other 
        jurisdictions in Minnesota.  The unit 
        has authority to prosecute 
        misdemeanors, gross misdemeanors, and 
        felonies.  The unit shall also 
        coordinate efforts with child 
        protection attorneys.  The unit may 
        include four cross-deputized assistant 
        city attorneys and assistant county 
        attorneys and a police investigator.  A 
        victim/witness advocate, a law clerk, a 
        paralegal, and a secretary may provide 
        support.  
        The goals of this pilot project are to: 
        (1) recognize children as both victims 
        and witnesses in domestic abuse 
        situations; 
        (2) recognize and respect the interests 
        of children in the prosecution of 
        domestic abuse; and 
        (3) reduce the exposure to domestic 
        violence for both adult and child 
        victims. 
        By January 15, 2002, the Ramsey county 
        attorney's office and the St. Paul city 
        attorney's office shall report to the 
        chairs and ranking minority members of 
        the senate and house of representatives 
        committees and divisions having 
        jurisdiction over criminal justice 
        policy and funding on the pilot 
        project.  The report may include the 
        number and types of cases referred, the 
        number of cases charged, the outcome of 
        cases, and other relevant outcome 
        measures. 
        [COPS, HEAT, AND FINANCIAL CRIMES 
        INVESTIGATION UNIT GRANTS.] $250,000 
        the first year and $250,000 the second 
        year are onetime appropriations for 
        grants under either Minnesota Statutes, 
        section 299A.62 or 299A.68.  Grants 
        awarded from this appropriation under 
        Minnesota Statutes, section 299A.62, 
        are for overtime for peace officers.  
        Of the total grants awarded from this 
        appropriation under Minnesota Statutes, 
        section 299A.62, 50 percent must go to 
        the St. Paul and Minneapolis police 
        departments and 50 percent must go to 
        other law enforcement agencies 
        statewide.  Any amounts from this 
        appropriation awarded to the St. Paul 
        police department must be used to 
        increase the current degree of 
        implementation of the HEAT law 
        enforcement strategy.  The HEAT law 
        enforcement strategy must be a 
        community-driven strategic initiative 
        that is used to target criminal conduct 
        in specific areas of St. Paul with 
        higher crime rates than the city 
        average.  It must target offenders 
        based upon their criminal behavior and 
        not other factors and be planned and 
        implemented taking into consideration 
        the wishes of the targeted communities. 
        Grants awarded under Minnesota 
        Statutes, section 299A.68, may be used 
        to cover costs for salaries, equipment, 
        office space, and other necessary 
        services or expenses of a financial 
        crimes investigation task force.  The 
        commissioner must distribute the grants 
        in a manner designed to be equitable to 
        the grantees given their contributions 
        to the investigation task force and to 
        encourage their continued participation.
        Participating local units of government 
        must provide a 25 percent match from 
        nonstate funds or in-kind contributions 
        either directly from their budgets or 
        from businesses directly donating 
        support in order for the financial 
        crimes investigation task force to 
        obtain any grant funding under 
        Minnesota Statutes, section 299A.68.  
        This appropriation is available until 
        June 30, 2003. 
        [MODEL POLICING PROGRAM; MENTAL ILLNESS 
        CALLS.] $150,000 the first year is a 
        onetime appropriation for developing 
        and implementing up to four model 
        policing program pilot projects 
        required under Minnesota Statutes, 
        section 626.8441, subdivision 1, and to 
        produce required reports.  
        [AUTOMOBILE THEFT PREVENTION GRANTS.] 
        The commissioner may make grants under 
        Minnesota Statutes 2000, section 
        299A.75, to past grantees during the 
        time period before which the changes 
        made to that section in article 5, 
        sections 6 to 8, become operational. 
        [ADMINISTRATION COSTS.] Up to 2.5 
        percent of the grant funds appropriated 
        in this subdivision may be used to 
        administer the grant programs. 
           Sec. 30.  Laws 2001, First Special Session chapter 8, 
        article 4, section 11, is amended to read: 
        Sec. 11.  BOARD OF PEACE OFFICER 
        STANDARDS AND TRAINING                 4,692,000      4,724,000
                                               4,604,000      4,633,000
        [PEACE OFFICER TRAINING ACCOUNT.] This 
        appropriation is from the peace officer 
        training account in the special revenue 
        fund.  Any receipts credited to the 
        peace officer training account in the 
        special revenue fund in the first year 
        in excess of $4,692,000 $4,604,000 must 
        be transferred and credited to the 
        general fund.  Any receipts credited to 
        the peace officer training account in 
        the special revenue fund in the second 
        year in excess of $4,724,000 $4,633,000 
        must be transferred and credited to the 
        general fund. 
           Sec. 31.  [WORKING GROUP ON CRIMINAL JUSTICE SYSTEM 
        EFFICIENCY.] 
           (a) The commissioners of corrections and public safety 
        shall convene a working group of criminal justice professionals 
        to identify and study ways to make the state's criminal justice 
        system more efficient and effective at both the state and local 
        levels.  The chief justice of the supreme court and state public 
        defender are requested to take part in this working group. 
           The working group may be divided into subworking groups if 
        doing so will assist in meeting the working group's objectives.  
        The working group and each subworking group shall seek input 
        from criminal justice practitioners and individuals working 
        throughout the criminal justice area.  To the extent feasible 
        and practical, the working group shall incorporate bench marking 
        and best practices components in carrying out its work. 
           (b) The commissioners of corrections and public safety, 
        with the input of the chief justice of the supreme court and 
        state public defender, shall report to the chairs and ranking 
        minority members of the house and senate committees with 
        jurisdiction over criminal justice policy and funding on its 
        findings and recommendations by January 15, 2003. 
           Sec. 32.  [FILE AND DATA TRANSFER.] 
           On June 30, 2002, the crime victim ombudsman shall deliver 
        to the commissioner of public safety all files, records, and 
        data under the authority or control of the ombudsman relating to 
        all of the activities and investigations of the office of the 
        crime victim ombudsman. 
           Sec. 33.  [REPEALER.] 
           (a) Minnesota Statutes 2000, sections 611A.37, subdivisions 
        6 and 7; and 611A.375, are repealed. 
           (b) Minnesota Statutes 2000, section 611A.74, subdivision 
        1a, is repealed. 
           Sec. 34.  [EFFECTIVE DATE.] 
           (a) Sections 1 to 5, 9, 12, and 30 are effective the day 
        following final enactment. 
           (b) Sections 16, 17, and 33, paragraph (a), are effective 
        July 1, 2003. 
           (c) The amendments to section 18, subdivisions 1 and 2, are 
        effective July 1, 2003.  Section 18, subdivision 3, is effective 
        the day following final enactment. 

                                   ARTICLE 8 
                       ENVIRONMENT AND NATURAL RESOURCES 
        Section 1.  [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS 
        AND REDUCTIONS.] 
           The dollar amounts in the columns under "APPROPRIATIONS" 
        are added to or, if shown in parentheses, are subtracted from 
        the appropriations in Laws 2001, First Special Session chapter 
        2, 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 
        "2002" or "2003" means that the addition to or subtraction from 
        the appropriations listed under the figure are for the fiscal 
        year ending June 30, 2002, or June 30, 2003, respectively.  The 
        term "the first year" means the year ending June 30, 2002, and 
        the term "the second year" means the year ending June 30, 2003. 
                                SUMMARY BY FUND
                                  2002          2003           TOTAL
        APPROPRIATIONS                                                
        General            $   (  103,000)$  (12,797,000)$  (12,900,000)
        Solid Waste             1,030,000      2,541,000      3,571,000
        Environmental             -0-            683,000        683,000
        Natural Resources         800,000        850,000      1,650,000 
        Environment and Natural 
        Resources Trust Fund      158,000        158,000        316,000
        TOTAL              $    1,885,000 $   (8,565,000)$   (6,680,000)
        TRANSFERS IN       $      -0-     $   (1,300,000)$   (1,300,000)
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2002         2003 
        Sec. 2.  POLLUTION CONTROL 
        AGENCY 
        Subdivision 1.  Total
        Appropriations                    $      927,000 $   (1,437,000)
                      Summary by Fund
        General                (103,000)   (3,161,000)
        Solid Waste           1,030,000     1,041,000
        Environmental            -0-          683,000
        The amounts reduced from the 
        appropriations in Laws 2001, First 
        Special Session chapter 2, section 2, 
        are specified in the following 
        subdivisions. 
        Subd. 2.  Protection of the Water
            1,300,000     (1,300,000) 
                      Summary by Fund
        General               1,300,000    (1,983,000)
        Environmental            -0-          683,000
        The appropriation in Laws 2001, First 
        Special Session chapter 2, section 2, 
        subdivision 2, for the clean water 
        partnership program is $3,648,000 the 
        first year and $1,048,000 the second 
        year.  The annual base level funding 
        for the clean water partnership program 
        is $2,348,000 beginning in fiscal year 
        2004. 
        The annual base level funding from the 
        general fund for protection of the 
        water is increased by $40,000 beginning 
        in fiscal year 2004. 
        Subd. 3.  Protection of the Land  
               -0-            -0-   
                      Summary by Fund
        General              (1,030,000)   (1,041,000)
        Solid Waste           1,030,000     1,041,000 
        Subd. 4.  Administrative Support
             (373,000)      (137,000)
        Sec. 3.    OFFICE OF
        ENVIRONMENTAL ASSISTANCE                 -0-          (549,000) 
                      Summary by Fund
        General                 -0-        (2,049,000)
        Solid Waste             -0-         1,500,000 
        $1,401,000 the second year is a 
        reduction from the money appropriated 
        for SCORE block grants to counties in 
        Laws 2001, First Special Session 
        chapter 2, section 3.  
        $1,500,000 the second year is 
        appropriated from the solid waste fund 
        for mixed municipal solid waste 
        processing payments under Minnesota 
        Statutes, section 115A.545. 
        Sec. 4.  ZOOLOGICAL BOARD                -0-          (383,000)
        Sec. 5.  NATURAL RESOURCES 
        Subdivision 1.  Total 
        Appropriations                         800,000      (4,535,000) 
                      Summary by Fund
        General                 -0-        (5,385,000)
        Natural Resources     800,000         850,000 
        The amounts reduced from the 
        appropriations in Laws 2001, First 
        Special Session chapter 2, section 5, 
        are specified in the following 
        subdivisions. 
        Subd. 2.  Land and Mineral Resources Management 
                -0-           (89,000)
        $33,000 the second year of this 
        reduction is from iron ore cooperative 
        research. 
        The nonstate match amount required for 
        the second year of the iron ore 
        cooperative research appropriation in 
        Laws 2001, First Special Session 
        chapter 2, section 5, subdivision 2, is 
        reduced by $20,000. 
        $30,000 the second year of this 
        reduction is from minerals 
        diversification. 
        $15,000 the second year of this 
        reduction is from minerals cooperative 
        environmental research. 
        The nonstate match amount required for 
        the second year of the minerals 
        cooperative environmental research 
        appropriation in Laws 2001, First 
        Special Session chapter 2, section 5, 
        subdivision 2, is reduced by $7,000. 
        Subd. 3.  Water Resources Management
                 -0-         (563,000)
        Subd. 4.  Forest Management 
                -0-          (599,000)
        $300,000 the second year of this 
        reduction is from the programs and 
        practices on state, county, and private 
        lands to regenerate and protect 
        Minnesota's white pine. 
        The amount available for matching funds 
        in the second year of the appropriation 
        for white pine regeneration and 
        protection in Laws 2001, First Special 
        Session chapter 2, section 5, 
        subdivision 4, is reduced by $112,000 
        for nonindustrial private forest lands, 
        and the amount for matching funds for 
        county administered lands is reduced by 
        $60,000. 
        $200,000 the second year of this 
        reduction is from the forest resources 
        council for implementation of the 
        Sustainable Forest Resources Act. 
        Subd. 5.  Parks and Recreation Management 
                -0-          (317,000)
        In fiscal year 2004, the annual base 
        level funding for state parks and 
        recreation areas is decreased by 
        $250,000 from the 2003 level. 
        In fiscal year 2004, the annual base 
        level funding for metropolitan area 
        regional parks maintenance and 
        operations is decreased by $400,000 
        from the 2003 level. 
        The appropriation specified in Laws 
        2001, First Special Session chapter 2, 
        section 5, subdivision 5, clause (10), 
        may be used for state park operations. 
        $25,000 from money appropriated in the 
        second year for state parks and 
        recreation areas is for a grant to 
        Taylors Falls for fire and rescue 
        operations in support of Interstate 
        park. 
        Subd. 6.  Trails and Waterways Management 
              800,000         523,000 
                      Summary by Fund
        General                 -0-          (177,000)
        Natural Resources       800,000       700,000
        In addition to the appropriation made 
        for this purpose under Laws 2001, First 
        Special Session chapter 2, section 5, 
        subdivision 6, $800,000 the first year 
        and $700,000 the second year are 
        appropriated from the snowmobile trails 
        and enforcement account for the 
        grant-in-aid trail system.  
        Subd. 7.   Fish Management 
                -0-          (154,000)
        $134,000 the second year of this 
        reduction is from the reinvest in 
        Minnesota programs of game and fish, 
        critical habitat, and wetlands 
        established under Minnesota Statutes, 
        section 84.95, subdivision 2. 
        $20,000 the second year of this 
        reduction is from aquatic plant 
        restoration. 
        Subd. 8.  Wildlife Management
                -0-         (110,000)
        Subd. 9.  Ecological Services
                -0-          (44,000)
        This reduction is from the reinvest in 
        Minnesota programs of game and fish, 
        critical habitat, and wetlands 
        established under Minnesota Statutes, 
        section 84.95, subdivision 2. 
        Subd. 10.  Enforcement
               -0-          (199,000) 
                      Summary by Fund
        General                 -0-          (349,000)
        Natural Resources       -0-           150,000 
        $150,000 the second year is from the 
        snowmobile trails and enforcement 
        account for snowmobile enforcement 
        activities. 
        Subd. 11.  Operations Support
               -0-        (2,983,000) 
        $1,052,000 the second year of this 
        reduction is from the operations of 
        youth programs.  The base appropriation 
        for this item is eliminated in fiscal 
        year 2004. 
        In fiscal year 2004, the entire annual 
        base level funding for operations 
        support is decreased by $901,000. 
        Sec. 6.  BOARD OF WATER AND
        SOIL RESOURCES                          -0-          (1,754,000)
        $382,000 the second year of this 
        reduction is from natural resources 
        block grants to local governments.  The 
        block grants made from the remaining 
        amount of the appropriation may be used 
        to implement comprehensive local water 
        planning, the Wetland Conservation Act, 
        and the Shoreland Management Act. 
        $800,000 the second year of this 
        reduction is from grants to soil and 
        water conservation districts for 
        cost-sharing contracts for erosion 
        control and water quality management. 
        $49,000 the second year of this 
        reduction is from grants to watershed 
        districts and other local units of 
        government in the southern Minnesota 
        river basin study area 2 for floodplain 
        management.  The appropriation for area 
        2 floodplain management terminates in 
        fiscal year 2004. 
        Sec. 7.  SCIENCE MUSEUM OF MINNESOTA    -0-             (65,000)
        Sec. 8.  MINNESOTA RESOURCES            158,000         158,000
        The appropriations in this section are 
        from the environment and natural 
        resources trust fund referred to in 
        Minnesota Statutes, section 116P.02, 
        subdivision 6.  The appropriations in 
        this section are subject to the 
        requirements of Laws 2001, First 
        Special Session chapter 2, section 14, 
        subdivisions 11, 12, 14, 15, 16, and 
        17.  Any unencumbered balance remaining 
        in the appropriations the first year 
        does not cancel and is available for 
        the second year.  Unless otherwise 
        provided, the appropriations are 
        available until June 30, 2003, when 
        projects must be completed and final 
        products delivered. 
        The following amounts are appropriated 
        from the environment and natural 
        resources trust fund: 
        (1) $127,000 the first year and 
        $127,000 the second year are to the 
        University of Minnesota for the second 
        biennium of a two-biennia project to 
        complete production of a multipart, 
        televised film series of the history of 
        Minnesota's natural landscapes.  This 
        appropriation must be matched by 
        $200,000 in nonstate money and is 
        available upon commitment of the 
        match.  This appropriation is available 
        until June 30, 2004; and 
        (2) $31,000 the first year and $31,000 
        the second year are to reimburse the 
        legislative commission on Minnesota 
        resources for expenses and anticipated 
        costs of the citizens advisory 
        committee.  
        Sec. 9.  TRANSFERS                    -0-            1,300,000 
        By June 30, 2003, the commissioner of 
        finance shall transfer $1,300,000 from 
        the Minnesota future resources fund to 
        the general fund. 
           Sec. 10.  Minnesota Statutes 2000, section 85A.02, 
        subdivision 17, is amended to read: 
           Subd. 17.  [ADDITIONAL POWERS.] The board may establish a 
        schedule of charges for admission to or the use of the Minnesota 
        zoological garden or any related facility.  Notwithstanding 
        section 16A.1283, legislative approval is not required for the 
        board to establish a schedule of charges for admission or use of 
        the Minnesota zoological garden or related facilities.  The 
        board shall have a policy admitting elementary school children 
        at no charge when they are part of an organized school 
        activity.  The Minnesota zoological garden will offer free 
        admission throughout the year to economically disadvantaged 
        Minnesota citizens equal to ten percent of the average annual 
        attendance.  However, the zoo may charge at any time for 
        parking, special services, and for admission to special 
        facilities for the education, entertainment, or convenience of 
        visitors.  The board may provide for the purchase, reproduction, 
        and sale of gifts, souvenirs, publications, informational 
        materials, food and beverages, and grant concessions for the 
        sale of these items. 
           Sec. 11.  Minnesota Statutes 2001 Supplement, section 
        93.2235, subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER.] The commissioner shall 
        establish a program to award grants to taconite mining companies 
        for: 
           (1) taconite pellet product improvements; 
           (2) value-added production of taconite iron ore; or 
           (3) cost-savings production improvements at Minnesota 
        taconite plants. 
           An amount equal to the sum of money transferred to the 
        general fund under section 93.223, subdivision 1, reduced by 
        $100,000, is annually appropriated from the general fund to the 
        commissioner for the purposes of this section. 
           [EFFECTIVE DATE.] This section is effective July 1, 2002.  
           Sec. 12.  Minnesota Statutes 2001 Supplement, section 
        115A.545, subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITION.] (a) For the purpose of this 
        section, the following terms have the meanings given them. 
           (b) "Processed" means mixed municipal solid waste that has 
        been: 
           (1) burned for energy recovery; or 
           (2) processed into usable compost or refuse derived fuel. 
           (c) "Processing facility" means a facility designed to burn 
        mixed municipal solid waste for energy recovery or designed to 
        process mixed municipal solid waste into usable compost or 
        refuse-derived fuel. 
           (d) "County" includes a consortium of counties operating 
        under a solid waste management joint powers agreement.  
           [EFFECTIVE DATE.] This section is effective July 1, 2002. 
           Sec. 13.  Minnesota Statutes 2001 Supplement, section 
        115A.545, subdivision 2, is amended to read: 
           Subd. 2.  [PROCESSING PAYMENT.] (a) The director shall pay 
        counties a processing payment for each ton of mixed municipal 
        solid waste that is generated in the county and processed at a 
        resource recovery facility located in Minnesota.  The processing 
        payment shall be $5 for each ton of mixed municipal solid waste 
        processed.  
           (b) The director shall also pay a processing payment to a 
        county that does not qualify under paragraph (a) that 
        constructed a processing facility and that either: 
           (1) contracts for waste generated in the county to be 
        received at a facility in that county; or 
           (2) has a comprehensive solid waste management plan 
        approved by the director under section 115A.46 that demonstrates 
        the intention of the county to make the processing facility 
        operational. 
           The processing payment shall be $5 for each ton of mixed 
        municipal waste generated in the county and delivered under 
        contract with the county. 
           (c) By the last day of October, January, April, and July, 
        each county claiming the processing payment shall file a claim 
        for payment with the director for the three previous months 
        certifying the number of tons of mixed municipal solid waste 
        that were generated in the county and processed at a resource 
        recovery facility.  The director shall pay the processing 
        payments by November 15, February 15, May 15, and August 15 each 
        year.  
           (c) (d) If the total amount for which all counties are 
        eligible in a quarter exceeds the amount available for payment, 
        the director shall make the payments on a pro rata basis.  
           (d) (e) All of the money received by a county under this 
        section paragraph (a) must be used to lower the tipping fee for 
        waste to be processed at a resource recovery facility. 
           (f) Amounts received by a county under: 
           (1) paragraph (b), clause (1), must be used to lower the 
        tipping fee for waste received at a waste management facility 
        within the county for waste received under contract with the 
        county at a facility in the county; or 
           (2) paragraph (b), clause (2), must be used to assist in 
        making the county's processing facility operational.  
           [EFFECTIVE DATE.] This section is effective July 1, 2002.  
           Sec. 14.  Minnesota Statutes 2000, section 115A.554, is 
        amended to read: 
           115A.554 [AUTHORITY OF SANITARY DISTRICTS.] 
           A sanitary district has the authorities and duties of 
        counties within the district's boundary for purposes of sections 
        115A.0716; 115A.46, subdivisions 4 and 5; 115A.48; 115A.545; 
        115A.551; 115A.552; 115A.553; 115A.919; 115A.929; 115A.93; 
        115A.96, subdivision 6; 115A.961; 116.072; 375.18, subdivision 
        14; 400.08; 400.16; and 400.161.  
           [EFFECTIVE DATE.] This section is effective July 1, 2002. 
           Sec. 15.  [INCREASE TO WATER QUALITY PERMIT FEES.] 
           (a) The pollution control agency shall collect water 
        quality permit application and annual fees that reflect the fees 
        in Minnesota Rules, part 7002.0310, increased to the amounts 
        described in paragraphs (b) to (g). 
           (b) The application fee for individual permits, general 
        permits, and general industrial stormwater permits is $240. 
           (c) The annual fees for individual National Pollutant 
        Discharge Elimination System permits for major municipal 
        facilities are as follows: 
              Design Flow in  
              Million Gallons Per Day           Annual Fee
                50 and over                      $175,750
                20 to 49.99                       $40,350
                 5 to 19.99                       $14,350
                 Up to 4.99                        $5,900
           (d) The annual fees for individual National Pollutant 
        Discharge Elimination System permits for major nonmunicipal 
        facilities are as follows: 
              Design Flow in  
              Million Gallons Per Day           Annual Fee 
                20 to 49.99                       $44,200
                 5 to 19.99                       $18,250
                 Up to 4.99                        $8,450
                Cooling or mine pit 
                dewatering (any flow)             $16,900
           (e) The annual fees for individual National Pollutant 
        Discharge Elimination System and State Disposal System permits 
        for nonmajor municipal facilities with design flows greater than 
        0.100 million gallons per day are $1,450. 
           (f) The annual fees for general industrial stormwater 
        permits are $280. 
           (g) The annual fees for general National Pollutant 
        Discharge Elimination System and State Disposal System permits 
        are $345. 
           (h) The application and annual fees are not increased for 
        general construction stormwater permits and sanitary sewer 
        extension permits.  The annual fees are not increased for 
        National Pollutant Discharge Elimination System and State 
        Disposal System permits regulating municipal nonmajors with 
        facility design flow of 0 to .100, sewage sludge landspreading 
        facilities, and nonmajor nonmunicipal facilities. 
           (i) The increased permit fees are effective July 1, 2002.  
        The agency shall adopt amended water quality permit fee rules 
        incorporating the permit fee increases in this subdivision under 
        Minnesota Statutes, section 14.389.  The pollution control 
        agency shall begin collecting the increased permit fees on July 
        1, 2002, even if the rule adoption process has not been 
        initiated or completed.  Notwithstanding Minnesota Statutes, 
        section 14.18, subdivision 2, the increased permit fees 
        reflecting the permit fee increases in this section and the rule 
        amendments incorporating those permit fee increases do not 
        require further legislative approval. 
           Sec. 16.  [REPEALER.] 
           (a) Minnesota Statutes 2000, sections 103B.3369, 
        subdivisions 7 and 8; 103B.351; 103F.461; and 103G.2373, are 
        repealed. 
           (b) Minnesota Rules, parts 8405.0100; 8405.0110; 8405.0120; 
        8405.0130; 8405.0140; 8405.0150; 8405.0160; 8405.0170; 
        8405.0180; 8405.0190; 8405.0200; 8405.0210; 8405.0220; and 
        8405.0230, are repealed. 
           Sec. 17.  [EFFECTIVE DATE.] 
           Except as otherwise specified, this article is effective 
        the day following final enactment. 

                                   ARTICLE 9 
                       AGRICULTURE AND RURAL DEVELOPMENT 
        Section 1.  [AGRICULTURE APPROPRIATIONS AND REDUCTIONS.] 
           The dollar amounts in the columns under "APPROPRIATIONS" 
        are added to or, if shown in parentheses, are subtracted from 
        the appropriations in Laws 2001, First Special Session chapter 
        2, 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 
        "2002" or "2003" means that the addition to or subtraction from 
        the appropriations listed under the figure are for the fiscal 
        year ending June 30, 2002, or June 30, 2003, respectively.  The 
        term "the first year" means the year ending June 30, 2002, and 
        the term "the second year" means the year ending June 30, 2003. 
                                SUMMARY BY FUND 
                                  2002          2003           TOTAL
        APPROPRIATIONS
        General            $     (469,000) $  (1,227,000) $  (1,696,000)
        TRANSFERS IN           (2,705,000)    (1,996,000)    (4,701,000)
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2002         2003 
        Sec. 2.  AGRICULTURE
        Subdivision 1.  Total
        Appropriation Reductions                 (26,000)      (810,000)
        The amounts reduced from the 
        appropriations in Laws 2001, First 
        Special Session chapter 2, are 
        specified in the following subdivisions.
        Subd. 2.  Protection Services
               -0-          (250,000) 
        Base funding for the protection service 
        program is $11,451,000 in the fiscal 
        year beginning July 1, 2003. 
        Subd. 3.  Agricultural 
        Marketing and Development
             (21,000)        (71,000) 
        Base funding for the agricultural 
        marketing and development program is 
        $5,530,000 for the fiscal year 
        beginning July 1, 2003. 
        Subd. 4.  Administration and
        Financial Assistance 
              (5,000)       (489,000)
        $5,000 the first year and $2,000 the 
        second year of this reduction are from 
        family farm security interest payment 
        adjustments. 
        $175,000 the second year of this 
        reduction is from grants to agriculture 
        information centers. 
        $11,500 the second year of this 
        reduction is from the appropriation for 
        the Seaway Port Authority of Duluth. 
        Base funding for the administration and 
        financial assistance program is 
        $4,344,000 for the fiscal year 
        beginning July 1, 2003. 
        Subd. 5.  Cancellations
        $43,000 from Laws 2000, chapter 488, 
        article 3, section 5, for grants to one 
        or more cooperative associations for 
        the purpose of facilitating the 
        production and marketing of short 
        rotation woody crops is canceled to the 
        general fund. 
        Subd. 6.  Transfers 
        (a) By June 30, 2002, the commissioner 
        shall transfer the unencumbered cash 
        balance in the ethanol development fund 
        established in Minnesota Statutes, 
        section 41B.044, to the general fund. 
        (b) By June 30, 2002, the commissioner 
        shall transfer $106,000 from the 
        balance in the family farm security 
        account established in Minnesota 
        Statutes, section 41.61, to the general 
        fund. 
        (c) By June 30, 2002, the commissioner 
        shall transfer $890,000 from the 
        unencumbered bond proceeds balance in 
        the family farm security account 
        established in Minnesota Statutes, 
        section 41.61, to the debt service fund.
        (d) By June 30, 2004, the commissioner 
        shall transfer $800,000 from the 
        unencumbered bond proceeds balance in 
        the family farm security account 
        established in Minnesota Statutes, 
        section 41.61, to the debt service fund.
        (e) By June 30, 2004, the commissioner 
        shall transfer $50,000 from the balance 
        in the family farm security account 
        established in Minnesota Statutes, 
        section 41.61, to the general fund. 
        (f) By June 30, 2005, the commissioner 
        shall transfer $410,000 from the 
        unencumbered bond proceeds balance in 
        the family farm security account 
        established in Minnesota Statutes, 
        section 41.61, to the debt service fund.
        Sec. 3.  MINNESOTA HORTICULTURE
        SOCIETY                                    -0-          (16,000)
        This is a onetime reduction. 
        Sec. 4.  AGRICULTURAL UTILIZATION
        RESEARCH INSTITUTE                      (400,000)      (401,000)
        $20,000 each year of the reduction is 
        from the money appropriated for hybrid 
        tree management research and 
        development. 
        Base funding of the agricultural 
        utilization research institute is 
        $3,717,000 for the fiscal year 
        beginning July 1, 2003. 
           Sec. 5.  Minnesota Statutes 2001 Supplement, section 
        17.117, subdivision 5a, is amended to read: 
           Subd. 5a.  [AGRICULTURAL AND ENVIRONMENTAL REVOLVING 
        ACCOUNTS.] (a) There shall be established in the agricultural 
        fund revolving accounts to receive appropriations, transfers of 
        the balances from previous appropriations for the activities 
        under this section, and money from other sources.  All balances 
        from previous appropriations for activities under this section 
        and repayments of loans granted under this section, including 
        principal and interest, must be deposited into the appropriate 
        revolving account created in this subdivision or the account 
        created in subdivision 13.  Interest earned in an account 
        accrues to that account. 
           (b) The money in the revolving accounts and the account 
        created in subdivision 13 is appropriated to the commissioner 
        for the purposes of this section. 
           Sec. 6.  Minnesota Statutes 2000, section 41A.09, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [PAYMENTS.] (a) The commissioner of agriculture 
        shall make cash payments to producers of ethanol, anhydrous 
        alcohol, and wet alcohol located in the state.  These payments 
        shall apply only to ethanol, anhydrous alcohol, and wet alcohol 
        fermented in the state and produced at plants that have begun 
        production by June 30, 2000.  For the purpose of this 
        subdivision, an entity that holds a controlling interest in more 
        than one ethanol plant is considered a single producer.  The 
        amount of the payment for each producer's annual production is: 
           (1) except as provided in paragraph (b), for each gallon of 
        ethanol or anhydrous alcohol produced on or before June 30, 
        2000, or ten years after the start of production, whichever is 
        later, 20 19 cents per gallon; and 
           (2) for each gallon produced of wet alcohol on or before 
        June 30, 2000, or ten years after the start of production, 
        whichever is later, 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 payments for anhydrous alcohol and wet alcohol 
        under this section may be paid to either the original producer 
        of anhydrous alcohol or wet alcohol or the secondary processor, 
        at the option of the original producer, but not to both. 
           No payments shall be made for production that occurs after 
        June 30, 2010. 
           (b) If the level of production at an ethanol plant 
        increases due to an increase in the production capacity of the 
        plant, the payment under paragraph (a), clause (1), applies to 
        the additional increment of production until ten years after the 
        increased production began.  Once a plant's production capacity 
        reaches 15,000,000 gallons per year, no additional increment 
        will qualify for the payment. 
           (c) The commissioner shall make payments to producers of 
        ethanol or wet alcohol in the amount of 1.5 cents for each 
        kilowatt hour of electricity generated using closed-loop biomass 
        in a cogeneration facility at an ethanol plant located in the 
        state.  Payments under this paragraph shall be made only for 
        electricity generated at cogeneration facilities that begin 
        operation by June 30, 2000.  The payments apply to electricity 
        generated on or before the date ten years after the producer 
        first qualifies for payment under this paragraph.  Total 
        payments under this paragraph in any fiscal year may not exceed 
        $750,000.  For the purposes of this paragraph: 
           (1) "closed-loop biomass" means any organic material from a 
        plant that is planted for the purpose of being used to generate 
        electricity or for multiple purposes that include being used to 
        generate electricity; and 
           (2) "cogeneration" means the combined generation of: 
           (i) electrical or mechanical power; and 
           (ii) steam or forms of useful energy, such as heat, that 
        are used for industrial, commercial, heating, or cooling 
        purposes. 
           (d) Payments under paragraphs (a) and (b) to all producers 
        may not exceed $37,000,000 $35,150,000 in a fiscal year.  Total 
        payments under paragraphs (a) and (b) to a producer in a fiscal 
        year may not exceed $3,000,000 $2,850,000. 
           (e) By the last day of October, January, April, and July, 
        each producer shall file a claim for payment for ethanol, 
        anhydrous alcohol, and wet alcohol production during the 
        preceding three calendar months.  A producer with more than one 
        plant shall file a separate claim for each plant.  A producer 
        that files a claim under this subdivision shall include a 
        statement of the producer's total ethanol, anhydrous alcohol, 
        and wet alcohol production in Minnesota during the quarter 
        covered by the claim, including anhydrous alcohol and wet 
        alcohol produced or received from an outside source.  A producer 
        shall file a separate claim for any amount claimed under 
        paragraph (c).  For each claim and statement of total ethanol, 
        anhydrous alcohol, and wet alcohol production filed under this 
        subdivision, the volume of ethanol, anhydrous alcohol, and wet 
        alcohol production or amounts of electricity generated using 
        closed-loop biomass must be examined by an independent certified 
        public accountant in accordance with standards established by 
        the American Institute of Certified Public Accountants. 
           (f) Payments shall be made November 15, February 15, May 
        15, and August 15.  A separate payment shall be made for each 
        claim filed.  Except as provided in paragraph (j), the total 
        quarterly payment to a producer under this paragraph, excluding 
        amounts paid under paragraph (c), may not exceed $750,000.  
           (g) If the total amount for which all producers are 
        eligible in a quarter under paragraph (c) exceeds the amount 
        available for payments, the commissioner shall make payments in 
        the order in which the plants covered by the claims began 
        generating electricity using closed-loop biomass. 
           (h) After July 1, 1997, new production capacity is only 
        eligible for payment under this subdivision if the commissioner 
        receives: 
           (1) an application for approval of the new production 
        capacity; 
           (2) an appropriate letter of long-term financial commitment 
        for construction of the new production capacity; and 
           (3) copies of all necessary permits for construction of the 
        new production capacity. 
           The commissioner may approve new production capacity based 
        on the order in which the applications are received.  
           (i) The commissioner may not approve any new production 
        capacity after July 1, 1998, except that a producer with an 
        approved production capacity of at least 12,000,000 gallons per 
        year but less than 15,000,000 gallons per year prior to July 1, 
        1998, is approved for 15,000,000 gallons of production capacity. 
           (j) Notwithstanding the quarterly payment limits of 
        paragraph (f), the commissioner shall make an additional payment 
        in the eighth quarter of each fiscal biennium to ethanol 
        producers for the lesser of:  (1) 20 19 cents per gallon of 
        production in the eighth quarter of the biennium that is greater 
        than 3,750,000 gallons; or (2) the total amount of payments lost 
        during the first seven quarters of the biennium due to plant 
        outages, repair, or major maintenance.  Total payments to an 
        ethanol producer in a fiscal biennium, including any payment 
        under this paragraph, must not exceed the total amount the 
        producer is eligible to receive based on the producer's approved 
        production capacity.  The provisions of this paragraph apply 
        only to production losses that occur in quarters beginning after 
        December 31, 1999. 
           (k) For the purposes of this subdivision "new production 
        capacity" means annual ethanol production capacity that was not 
        allowed under a permit issued by the pollution control agency 
        prior to July 1, 1997, or for which construction did not begin 
        prior to July 1, 1997. 
           [EFFECTIVE DATE.] This section is effective for payments 
        for ethanol production after July 1, 2004. 
           Sec. 7.  [TRANSFER OF FUNDS; DEPOSIT OF REPAYMENTS.] 
           The remaining balance in the disaster recovery revolving 
        fund established under Minnesota Statutes, section 41B.047, 
        subdivision 2, is transferred to the revolving account described 
        in Minnesota Statutes, section 17.115, for purposes of Minnesota 
        Statutes, section 17.115, subdivision 5, and the fund is 
        abolished on the effective date of this section.  
        Notwithstanding Minnesota Statutes, section 41B.047, subdivision 
        2, all future receipts from loans originated under Minnesota 
        Statutes, section 41B.047, shall be deposited in the account. 
           Sec. 8.  [REPEALER.] 
           Minnesota Statutes 2000, section 41B.047, subdivision 2, is 
        repealed. 
           Sec. 9.  [EFFECTIVE DATE.] 
           Except as otherwise specified, this article is effective 
        the day following final enactment. 

                                   ARTICLE 10 
                        STATE GOVERNMENT APPROPRIATIONS 
        Section 1.  [STATE GOVERNMENT APPROPRIATIONS.] 
           The dollar amounts in the columns under "APPROPRIATIONS" 
        are added to or, if shown in parentheses, are subtracted from 
        the appropriations in Laws 2001, First Special Session chapter 
        10, 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 
        "2002" or "2003" means that the addition to or subtraction from 
        the appropriations listed under the figure are for the fiscal 
        year ending June 30, 2002, or June 30, 2003, respectively. 
                                SUMMARY BY FUND 
                                  2002          2003           TOTAL
        APPROPRIATIONS
        General            $  (14,695,000)$  (30,005,000)$  (44,700,000)
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2002         2003 
        Sec. 2.  LEGISLATURE          
        Subdivision 1.  Total           
        Appropriation                              -0-       (2,245,000)
        Subd. 2.  Senate             
               -0-           (688,000)
        Subd. 3.  House of Representatives 
               -0-           (910,000)
        Subd. 4.  Legislative Coordinating Commission 
               -0-           (647,000)
        $164,000 is a reduction for the office 
        of the legislative auditor. 
        Sec. 3.  SECRETARY OF
        STATE                                      -0-         (199,000)
        Budget reductions shall not come from 
        revenue producing programs or elections.
        Sec. 4.  GOVERNOR'S OFFICE              (460,000)      (702,000)
        No funding may be used for the 
        operation of the Washington, D.C., 
        office of the state of Minnesota. 
        Sec. 5.  STATE AUDITOR                  (503,000)      (540,000)
        Sec. 6.  STATE TREASURER                   -0-          (30,000)
        Sec. 7.  ATTORNEY GENERAL                  -0-         (900,000)
        The attorney general, in consultation 
        with the affected agencies, shall 
        prepare a plan for ending partnership 
        agreements with agencies and shall 
        submit the plan to the legislature by 
        November 15, 2002. 
        Sec. 8.  BOARD OF GOVERNMENT INNOVATION
        COOPERATION                             (275,000)      (518,000)
        Sec. 9.  OFFICE OF STRATEGIC
        AND LONG-RANGE PLANNING                 (600,000)      (560,000)
        Sec. 10.  ADMINISTRATION      
        Subdivision 1.  Total 
        Appropriation                           (274,000)    (3,784,000)
        Subd. 2.  Operations Management 
                   -0-           (989,000)  
        The base funding for the 2004-2005 
        biennium is $3,002,000 a year. 
        Subd. 3.  Office of Technology 
                   -0-           (774,000) 
        The base funding for the 2004-2005 
        biennium is $4,622,000 in 2004 and 
        $2,442,000 in 2005. 
        Subd. 4.  Intertechnologies Group 
        General Fund 
                (200,000)        (533,000) 
        The base funding for the 2004-2005 
        biennium is $382,000 a year. 
        Subd. 5.  Management Services 
                   -0-           (707,000)   
        The base funding for the 2004-2005 
        biennium is $3,145,000 a year.  Base 
        funding may not be reduced for the 
        information policy analysis program.  
        Subd. 6.  Facilities Management
                     -0-         (714,000)
        The base funding for the 2004-2005 
        biennium is $3,583,000 a year. 
        Subd. 7.  Public Broadcasting 
                     -0-          (67,000) 
        The base funding for the 2004-2005 
        biennium is $3,197,000 each year.  The 
        $133,000 reduction each year must be 
        applied on a proportional basis. 
        Subd. 8.  Fiscal Agents      
                   (74,000)         -0-  
        Voting equipment grants are reduced by 
        $74,000 in fiscal year 2002.  
        Sec. 11.  FINANCE   
        Subdivision 1.  Total Appropriation 
        Reductions                            (1,773,000)    (3,609,000) 
        Subd. 2.  State Financial Management 
                  (204,000)    (1,195,000)   
        Subd. 3.  Information and Management
        Services 
                  (910,000)    (1,974,000)
        $446,000 in the first year and $220,000 
        in the second year are onetime 
        reductions. 
        Subd. 4.  Carryforward  
                  (660,000)      (440,000)
        This reduction is from Laws 1999, 
        chapter 250, article 1, section 14, 
        subdivision 3. 
        Subd. 5.  Dislocated Worker Program
        The commissioner of finance shall 
        transfer $2,800,000 from the general 
        fund to the workforce development fund 
        for the dislocated worker program.  
        This transfer shall occur within 14 
        days following final enactment of this 
        act. 
        Sec. 12.  EMPLOYEE
        RELATIONS                               (660,000)    (1,269,000)
        Sec. 13.  REVENUE                                               
        Subdivision 1.  Total Appropriation 
        Reduction                             (7,000,000)    (7,000,000)
        Sec. 14. AMATEUR SPORTS COMMISSION       (60,000)       (60,000) 
        Sec. 15. MINNESOTA HUMANITIES
        COMMISSION                               -0-            (41,000)
        Sec. 16. BOARD OF THE ARTS 
        Subdivision 1.  Total
        Appropriation                            -0-           (526,000) 
        Subd. 2.  Operations and Services 
                   -0-            (43,000)
        Subd. 3.  Grants Programs    
                   -0-           (342,000)
        Subd. 4.  Regional Arts Councils 
                   -0-           (141,000)
        Sec. 17.  MILITARY AFFAIRS            (452,000)      (2,399,000)
        The base funding for the 2004-2005 
        biennium is $12,472,000 each year. 
        Sec. 18.  VETERANS
        AFFAIRS                                  -0-           (180,000)
        Sec. 19.  MINNESOTA
        STATE RETIREMENT SYSTEM                  -0-         (2,004,000)
        $2,004,000 of the appropriation 
        reduction the second year is to 
        eliminate the open appropriation for 
        judges not participating in the 
        postretirement fund, effective July 1, 
        2002.  The reduction in 2004 is 
        $2,124,000 and in 2005 is $2,251,000. 
        Sec. 20.  CAMPAIGN FINANCE   
        AND PUBLIC DISCLOSURE BOARD              -0-            (35,000)
        Sec. 21.  INVESTMENT 
        BOARD                                    -0-           (127,000)
        Sec. 22.  CAPITOL AREA ARCHITECTURAL  
        AND PLANNING BOARD                       -0-            (16,000)
        Sec. 23.  LAWFUL GAMBLING CONTROL
        BOARD                                    -0-           (126,000)
        Sec. 24.  MINNESOTA RACING
        COMMISSION                               -0-            (21,000)
        Sec. 25.  TORT CLAIMS                    -0-           (114,000)
        Sec. 26.  CONTINGENT ACCOUNTS       (2,638,000)      (3,000,000)
        Sec. 27.  LEGISLATIVE INTENT
        It is the legislature's intent that, 
        unless provided otherwise in this 
        article, base reductions in an agency's 
        funding be distributed across the 
        agency's accounts without a 
        disproportionate reduction from a 
        single program.  Additionally, all 
        budget reductions should be made with 
        an emphasis on cutting administration 
        and overhead expenses and with as 
        little impact as possible on programs 
        and services. 
           Sec. 28.  Minnesota Statutes 2000, section 15.0591, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BODIES AFFECTED.] A member meeting the 
        qualifications in subdivision 1 must be appointed to the 
        following boards, commissions, advisory councils, task forces, 
        or committees:  
           (1) advisory council on battered women and domestic abuse; 
           (2) advisory task force on the use of state facilities; 
           (3) alcohol and other drug abuse advisory council; 
           (4) board of examiners for nursing home administrators; 
           (5) board on aging; 
           (6) chiropractic examiners board; 
           (7) consumer advisory council on vocational rehabilitation; 
           (8) council on disability; 
           (9) council on affairs of Chicano/Latino people; 
           (10) council on Black Minnesotans; 
           (11) dentistry board; 
           (12) department of economic security advisory council; 
           (13) higher education services office; 
           (14) housing finance agency; 
           (15) Indian advisory council on chemical dependency; 
           (16) medical practice board; 
           (17) medical policy directional task force on mental 
        health; 
           (18) Minnesota employment and economic development task 
        force; 
           (19) Minnesota office of citizenship and volunteer services 
        advisory committee; 
           (20) Minnesota state arts board; 
           (21) (20) nursing board; 
           (22) (21) optometry board; 
           (23) (22) pharmacy board; 
           (24) (23) board of physical therapy; 
           (25) (24) podiatry board; 
           (26) (25) psychology board; 
           (27) (26) veterans advisory committee. 
           Sec. 29.  Minnesota Statutes 2000, section 16A.40, is 
        amended to read: 
           16A.40 [WARRANTS AND ELECTRONIC FUND TRANSFERS.] 
           Money must not be paid out of the state treasury except 
        upon the warrant of the commissioner or an electronic fund 
        transfer approved by the commissioner.  Warrants must be drawn 
        on printed blanks that are in numerical order.  The commissioner 
        shall enter, in numerical order in a warrant register, the 
        number, amount, date, and payee for every warrant issued. 
           Payees receiving more than ten payments or $10,000 per year 
        must supply the commissioner with their bank routing information 
        to enable the payments to be made through an electronic fund 
        transfer. 
           Sec. 30.  Minnesota Statutes 2001 Supplement, section 
        16B.65, subdivision 1, is amended to read: 
           Subdivision 1.  [DESIGNATION.] By January 1, 2002, each 
        municipality shall designate a building official to administer 
        the code.  A municipality may designate no more than one 
        building official responsible for code administration defined by 
        each certification category established in rule.  Two or more 
        municipalities may combine in the designation of a building 
        official for the purpose of administering the provisions of the 
        code within their communities.  In those municipalities for 
        which no building officials have been designated, the state 
        building official may use whichever state employees are 
        necessary to perform the duties of the building official until 
        the municipality makes a temporary or permanent designation.  
        All costs incurred by virtue of these services rendered by state 
        employees must be borne by the involved municipality and 
        receipts arising from these services must be paid into the state 
        treasury and credited to the general special revenue fund.  
           Sec. 31.  Minnesota Statutes 2001 Supplement, section 
        16B.65, subdivision 5a, is amended to read: 
           Subd. 5a.  [ADMINISTRATIVE ACTION AND PENALTIES.] The 
        commissioner shall, by rule, establish a graduated schedule of 
        administrative actions for violations of sections 16B.59 to 
        16B.75 and rules adopted under those sections.  The schedule 
        must be based on and reflect the culpability, frequency, and 
        severity of the violator's actions.  The commissioner may impose 
        a penalty from the schedule on a certification holder for a 
        violation of sections 16B.59 to 16B.75 and rules adopted under 
        those sections.  The penalty is in addition to any criminal 
        penalty imposed for the same violation.  Administrative monetary 
        penalties imposed by the commissioner must be paid to the 
        general special revenue fund.  
           Sec. 32.  Minnesota Statutes 2000, section 124D.385, 
        subdivision 2, is amended to read: 
           Subd. 2.  [MEMBERSHIP.] (a) The commission consists of 18 
        voting members.  Voting members shall include the commissioner 
        of children, families, and learning, a representative of the 
        children's cabinet elected by the members of the children's 
        cabinet, and the executive director of the higher education 
        services office. 
           (b) The governor shall appoint 15 additional voting 
        members.  Eight of the voting members appointed by the governor 
        shall include a representative of public or nonprofit 
        organizations experienced in youth employment and training, 
        organizations promoting adult service and volunteerism, 
        community-based service agencies or organizations, local public 
        or private sector labor unions, local governments, business, a 
        national service program, and Indian tribes.  The remaining 
        seven voting members appointed by the governor shall include an 
        individual with expertise in the educational, training, and 
        development needs of youth, particularly disadvantaged youth; a 
        youth or young adult who is a participant in a higher 
        education-based service-learning program; a disabled individual 
        representing persons with disabilities; a youth who is 
        out-of-school or disadvantaged; an educator of primary or 
        secondary students; an educator from a higher education 
        institution; and an individual between the ages of 16 and 25 who 
        is a participant or supervisor in a youth service program. 
           (c) The governor shall appoint up to five ex officio 
        nonvoting members from among the following agencies or 
        organizations:  the departments of economic security, natural 
        resources, human services, health, corrections, agriculture, 
        public safety, finance, and labor and industry, the Minnesota 
        office of citizenship and volunteer services, the housing 
        finance agency, and Minnesota Technology, Inc.  A representative 
        of the corporation for national and community service shall also 
        serve as an ex officio nonvoting member. 
           (d) Voting and ex officio nonvoting members may appoint 
        designees to act on their behalf.  The number of voting members 
        who are state employees shall not exceed 25 percent. 
           (e) The governor shall ensure that, to the extent possible, 
        the membership of the commission is balanced according to 
        geography, race, ethnicity, age, and gender.  The speaker of the 
        house and the majority leader of the senate shall each appoint 
        two legislators to be nonvoting members of the commission. 
           Sec. 33.  Minnesota Statutes 2000, section 256.9753, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXPENDITURES.] The board shall consult with 
        the office of citizenship and volunteer services commissioner of 
        human services, prior to expending money available for the 
        retired senior volunteer programs.  Expenditures shall be made 
        (1) to strengthen and expand existing retired senior volunteer 
        programs, and (2) to encourage the development of new programs 
        in areas in the state where these programs do not exist.  Grants 
        shall be made consistent with applicable federal guidelines. 
           Sec. 34.  Minnesota Statutes 2000, section 490.123, is 
        amended by adding a subdivision to read: 
           Subd. 1e.  [PARTICIPATION IN THE POSTRETIREMENT INVESTMENT 
        FUND.] Notwithstanding any laws to the contrary, all judges and 
        survivors receiving a benefit under this chapter shall receive 
        that benefit from the postretirement investment fund.  Required 
        reserves for those judges not receiving benefits from the 
        postretirement investment fund as of July 1, 2002, shall be 
        transferred to the postretirement investment fund to pay future 
        benefits by July 31, 2002. 
           Sec. 35.  Laws 1998, chapter 404, section 23, subdivision 
        6, is amended to read:  
        Subd. 6.  St. Paul RiverCentre
        Arena                                                65,000,000
        This appropriation is from the general 
        fund to the commissioner of finance for 
        a loan to the city of St. Paul to 
        demolish the existing St. Paul 
        RiverCentre Arena and to design, 
        construct, furnish, and equip a new 
        arena.  This appropriation is not 
        available until the lessee to whom the 
        city has leased the arena has agreed to 
        make rental or other payments to the 
        city under the terms set forth in this 
        subdivision.  The loan is repayable 
        solely from and secured by the payments 
        made to the city by the lessee.  The 
        loan is not a public debt and the full 
        faith, credit, and taxing powers of the 
        city are not pledged for its repayment. 
        (a) $48,000,000 of the loan must be 
        repaid to the commissioner, without 
        interest, within 20 years from the date 
        of substantial completion of the arena 
        in accordance with the following 
        schedule: 
        (1) no repayments are due in the first 
        two years from the date of substantial 
        completion; 
        (2) in each of the years three to five, 
        the lessee must pay $1,250,000; 
        (3) in each of the years six to ten, 
        the lessee must pay $1,500,000; 
        (4) in each of the years 11 to 13, the 
        lessee must pay $2,000,000; 
        (5) in year 14, the lessee must pay 
        $3,000,000; 
        (6) in year 15, the lessee must pay 
        $4,000,000; and 
        (7) in each of the years 16 to 20, the 
        lessee must pay $4,750,000. 
        (b) The commissioner must deposit the 
        repayments in the state treasury and 
        credit them to the youth activities 
        account, which is hereby created in the 
        special revenue fund.  Money in the 
        youth activities account is available 
        for expenditure as appropriated by 
        law general fund. 
        (c) The loan may not be made until the 
        commissioner has entered into an 
        agreement with the city of St. Paul 
        identifying the rental or other 
        payments that will be made and 
        establishing the dates on and the 
        amounts in which the payments will be 
        made to the city and by the city to the 
        commissioner.  The payments may include 
        operating revenues and additional 
        payments to be made by the lessee under 
        agreements to be negotiated between the 
        commissioner, the city, and the 
        lessee.  Those agreements may include, 
        but are not limited to, an agreement 
        whereby the lessee pledges to provide 
        each year a letter of credit sufficient 
        to guarantee the payment of the amount 
        due for the next succeeding year; an 
        agreement whereby the lessee agrees to 
        maintain a net worth, certified each 
        year by a financial institution or 
        accounting firm satisfactory to the 
        commissioner, that is greater than the 
        balance due under the payment schedule 
        in paragraph (a); and any other 
        agreements the commissioner may deem 
        necessary to ensure that the payments 
        are made as scheduled. 
        (d) The agreements must provide that 
        the failure of the lessee to make a 
        payment due to the city under the 
        agreement is an event of default under 
        the lease between the city and the 
        lessee and that the state is entitled 
        to enforce the remedies of the lessor 
        under the lease in the event of 
        default.  Those remedies must include, 
        but need not be limited to, the 
        obligation of the lessee to pay the 
        balance due for the remainder of the 
        payment schedule in the event the 
        lessee ceases to operate a National 
        Hockey League team in the arena. 
        (e) By January 1, 1999, the 
        commissioner shall report to the chair 
        of the senate committee on state 
        government finance and the chair of the 
        house committee on ways and means the 
        terms of an agreement between the 
        lessee and the amateur sports 
        commission whereby the lessee agrees to 
        make the facilities of the arena 
        available to the commission on terms 
        satisfactory to the commission for 
        amateur sports activities consistent 
        with the purposes of Minnesota 
        Statutes, chapter 240A, each year 
        during the time the loan is 
        outstanding.  The amateur sports 
        commission must negotiate in good faith 
        and may be required to pay no more than 
        actual out-of-pocket expenses for the 
        time it uses the arena.  The agreement 
        may not become effective before 
        February 1, 1999.  During any calendar 
        year after 1999 that an agreement under 
        this paragraph is not in effect and a 
        payment is due under the schedule, the 
        lessee must pay to the commissioner a 
        penalty of $750,000 for that year.  If 
        the amateur sports commission has not 
        negotiated in good faith, no penalty is 
        due. 
           Sec. 36.  [REDUCTION IN CONTRACT EXPENDITURES.] 
           During the biennium ending June 30, 2003, the governor must 
        reduce planned executive branch state agency general fund 
        expenditures on contracts for professional or technical services 
        by at least $35,000,000.  The governor must allocate this 
        reduction among executive branch state agencies.  For purposes 
        of this section, "professional or technical services" has the 
        meaning given in Minnesota Statutes, section 16C.08, subdivision 
        1; and "executive branch state agency" has the meaning given in 
        Minnesota Statutes, section 16A.011, subdivision 12a, and 
        includes the Minnesota state colleges and universities.  The 
        base for these reductions is the amount allocated for 
        professional or technical service contracts in agency spending 
        plans as of January 1, 2002. 
           Sec. 37.  [MORATORIUM ON CONSULTANT CONTRACTS.] 
           (a) An entity in the executive branch of state government, 
        including the Minnesota state colleges and universities, may not 
        enter into a new contract or renew an existing contract for 
        professional or technical services after the effective date of 
        this section and before July 1, 2003.  This section does not 
        apply to a contract: 
           (1) that relates to a threat to public health, welfare, or 
        safety that threatens the functioning of government, the 
        protection of property, or the health or safety of people; or 
           (2) that is paid for entirely with federal funds received 
        before the effective date of this section.  
           (b) An entity in the executive branch may apply for a 
        waiver of the moratorium by sending a letter with reasons for 
        the request to the commissioner of administration for executive 
        branch entities.  Upon a finding that a consultant contract is 
        necessary, the commissioner may grant a waiver.  The decision of 
        the commissioner is final and not subject to appeal.  A monthly 
        report of all waivers granted must be filed by the entity 
        granting the waiver.  The report must be published on the 
        entity's Web site, and copies must be provided to the chairs of 
        the house ways and means and senate finance committees and to 
        the legislative reference library.  
           Sec. 38.  [HIRING FREEZE.] 
           Subdivision 1.  [APPLICATION OF FREEZE.] A state employer 
        may not hire any permanent or temporary employees before July 1, 
        2003.  For purposes of this section, "state employer" means 
        state elected officials, departments, boards, agencies, 
        commissions, offices, and other hiring entities in the executive 
        and legislative branches of state government, as those branches 
        are defined in Minnesota Statutes, section 43A.02. 
           "State employer" does not include the Minnesota state 
        colleges and universities. 
           Subd. 2.  [EXCEPTIONS.] Subdivision 1 does not apply to: 
           (1) a student in a work-study position; or 
           (2) a position that is necessary to perform essential 
        government services. 
           A determination under clause (2) must be made by the 
        speaker of the house of representatives with respect to house 
        employees, the chair of the committee on rules and 
        administration with respect to senate employees, and the 
        legislative coordinating commission with respect to its 
        employees, by a constitutional officer with respect to employees 
        of the constitutional office, and by the governor with respect 
        to any other employee covered by this section.  Exceptions 
        granted under clause (2) must be reported monthly by the entity 
        granting the exception.  The reports must be published on the 
        entity's Web site, and copies must be provided to the chairs of 
        the house ways and means and senate finance committees and to 
        the legislative reference library.  
           Subd. 3.  [ANTICIPATED SAVINGS.] The legislature 
        anticipates that application of this section to executive branch 
        agencies and to the Minnesota state colleges and universities 
        will result in savings to the general fund of $40,000,000 by 
        June 30, 2003.  If the governor determines that application of 
        this section will not result in $40,000,000 in savings to the 
        general fund by June 30, 2003, the governor must make 
        proportional reductions in executive agency operating budgets 
        necessary to achieve these savings. 
           Sec. 39.  [SAVINGS ARE ADDITIONAL.] 
           Savings achieved in sections 36 to 38 from the freeze in 
        state hiring or the reduction in the number of state contracts 
        for professional or technical services are in addition to 
        reductions in spending required by other sections of this 
        article. 
           Sec. 40.  [REPEALER.] 
           Minnesota Statutes 2001 Supplement, section 4.50, is 
        repealed.  Minnesota Statutes 2000, sections 13.202, subdivision 
        8; 465.795; 465.796; 465.797; 465.7971; 465.798; 465.799; 
        465.801; 465.802; 465.803; 465.83; 465.87; and 465.88, are 
        repealed effective July 1, 2002.  Minnesota Statutes 2000, 
        section 490.123, subdivision 1d, is repealed effective June 30, 
        2002. 
           Sec. 41.  [EFFECTIVE DATE.] 
           Except as otherwise provided in section 40, this article is 
        effective the day following final enactment. 

                                   ARTICLE 11 
                                     COURTS 
        Section 1.  [APPROPRIATIONS/REDUCTIONS.] 
           The dollar amounts in the columns under "APPROPRIATIONS" 
        are added to or, if shown in parentheses, are subtracted from 
        the appropriations in Laws 2001, First Special Session chapters 
        8, 9, 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 "2002" or "2003" means that the addition to or 
        subtraction from the appropriations listed under the figure are 
        for the fiscal year ending June 30, 2002, or June 30, 2003, 
        respectively. 
                                                2002           2003 
        APPROPRIATION REDUCTIONS                 -0-        ( 1,592,000)
                                                   APPROPRIATIONS 
                                                2002           2003
        Sec. 2.  SUPREME COURT                   -0-        (   454,000)
        $175,000 the second year is to reduce 
        funding to civil legal services.  The 
        funding and base for civil legal 
        services may not be reduced more than 
        these amounts. 
        The base for fiscal year 2004 shall be 
        reduced by $394,000 and for fiscal year 
        2005 by $394,000. 
        No portion of this reduction may come 
        from a reduction in spending of the 
        funds appropriated to the courts for 
        the Minnesota criminal information 
        system. 
        Sec. 3.  COURT OF APPEALS               -0-           ( 86,000)
        The base for fiscal year 2004 shall be 
        reduced by $74,000 and for fiscal year 
        2005 by $74,000. 
        Sec. 4.  DISTRICT COURTS                -0-         (  845,000)
        The base for fiscal year 2004 shall be 
        reduced by $641,000 and for fiscal year 
        2005 by $641,000.  These appropriation 
        reductions may also be applied to the 
        appropriations to the trial courts as 
        amended in Laws 2001, First Special 
        Session chapter 8, article 5, section 
        23. 
        Sec. 5.  HUMAN RIGHTS                   -0-           (207,000)
           Sec. 6.  Minnesota Statutes 2000, 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, 
        including any case arising under the tax laws of the state that 
        could be transferred or appealed to the tax 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 
        $122 $135. 
           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 $122 $135. 
           The party requesting a trial by jury shall pay $75. 
           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, $10, and $5 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 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) Filing a motion or response to a motion for 
        modification of child support, a fee fixed by rule or order of 
        the supreme court.  
           (13) 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. 
           (14) In addition to any other filing fees under this 
        chapter, a surcharge in the amount of $75 must be assessed in 
        accordance with section 259.52, subdivision 14, for each 
        adoption petition filed in district court to fund the fathers' 
        adoption registry under section 259.52. 
           The fees in clauses (3) and (4) need not be paid by a 
        public authority or the party the public authority represents. 
           Sec. 7.  Minnesota Statutes 2000, section 357.022, is 
        amended to read: 
           357.022 [CONCILIATION COURT FEE.] 
           The court administrator in every county shall charge and 
        collect a filing fee of $15 $25 where the amount demanded is 
        less than $2,000 and $25 $35 where the amount demanded is $2,000 
        or more from every plaintiff and from every defendant when the 
        first paper for that party is filed in any conciliation court 
        action.  This section does not apply to conciliation court 
        actions filed by the state.  The court administrator shall 
        transmit the fees monthly to the state treasurer for deposit in 
        the state treasury and credit to the general fund. 

                                   ARTICLE 12 
                              ECONOMIC DEVELOPMENT 
        Section 1.  [APPROPRIATIONS AND REDUCTIONS.] 
           The dollar amounts in the columns under "APPROPRIATIONS" 
        are added to or, if shown in parentheses, subtracted from the 
        appropriations in Laws 2001, First Special Session chapter 4, 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 "2002" 
        or "2003" means that the addition to or subtraction from the 
        appropriations listed under the figure are for the fiscal year 
        ending June 30, 2002, or June 30, 2003, respectively. 
                                SUMMARY BY FUND
                                  2002          2003           TOTAL
        APPROPRIATIONS
        General                (1,899,000)    (3,594,000)    (5,493,000)
        Special Revenue           100,000        100,000        200,000 
        CANCELLATIONS         (10,426,000)         -0-      (10,426,000)
        TRANSFERS IN            9,320,000       (650,000)     8,670,000 
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2002         2003 
        Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
        Subdivision 1.  Total
        Appropriation                          (559,000)       (761,000)
        It is the legislature's intent that 
        base reductions in an agency's funding 
        be distributed across the agency's 
        accounts without a disproportionate 
        reduction from a single program.  
        Additionally, all budget reductions 
        should be made with an emphasis on 
        cutting administration and overhead 
        expenses, and with as little impact as 
        possible on programs and services. 
        Of these amounts: 
        (a) $80,000 the first year and $190,000 
        the second year are for reductions in 
        administrative costs. 
        (b) $146,000 the first year is a 
        reduction for strike salary savings. 
        (c) Other reductions are as stated in 
        this section. 
        Subd. 2.  Business and Community
        Development                              (55,000)       (60,000)
        Of these amounts: 
        (a) The base funding for the Minnesota 
        investment fund is reduced by $500,000 
        each year in the 2004-2005 biennium. 
        (b) $150,000 each year is added to the 
        base funding for the rural policy and 
        development center, beginning in fiscal 
        year 2004. 
        Subd. 3.  Minnesota Trade Office         (43,000)      (270,000)
        The Minnesota trade office's base 
        funding is reduced by $50,000 each year 
        of the 2004-2005 biennium from its base 
        funding for fiscal year 2003. 
        Subd. 4.  Workforce Development            -0-          215,000 
        $250,000 the second year is an 
        appropriation for the ISEEK program.  
        This is a onetime appropriation and is 
        not added to the agency's budget base. 
        Subd. 5.  Office of Tourism             (120,000)      (340,000)
        (a) No part of this reduction may be 
        accomplished by decreasing the grant to 
        the Mississippi River Parkway 
        Commission in Laws 2001, First Special 
        Session chapter 4, article 1, section 
        2, subdivision 5.  The office of 
        tourism's base funding shall be reduced 
        by $350,000 each year in the 2004-2005 
        biennium from its base funding for 
        fiscal year 2003. 
        (b) $20,000 the second year is to 
        reduce funding for the snowbate program 
        in the Minnesota Film Board.  Base 
        funding for the snowbate program shall 
        be $450,000 per year in the 2004-2005 
        biennium. 
        Subd. 6.  Information and 
        Analysis                                (100,000)      (100,000)
        The base funding shall be reduced by an 
        additional $79,000 each year for the 
        2004-2005 biennium. 
        Subd. 7.  Administrative
        Support                                  (15,000)       (16,000)
        Subd. 8.  Dislocated 
        Worker Program                            
        The commissioner of finance shall 
        transfer $13,200,000 from the general 
        fund to the workforce development fund 
        for the dislocated worker program.  
        This transfer shall occur within 14 
        days following final enactment of this 
        act.  This subdivision is effective the 
        day following final enactment. 
        Subd. 9.  Biomedical Innovation
        and Commercialization Initiative     
        The Laws 2001, First Special Session 
        chapter 5, article 19, section 2, 
        appropriation of $10,000,000 for the 
        biomedical innovation and 
        commercialization initiative is 
        canceled to the general fund.  This 
        cancellation is effective the day 
        following final enactment. 
        Sec. 3.  MINNESOTA TECHNOLOGY, 
        INC.                                       -0-         (750,000)
        Sec. 4.  ECONOMIC SECURITY
        Subdivision 1.  Total
        Appropriation                            (80,000)      (559,000)
        It is the legislature's intent that 
        base reductions in an agency's funding 
        be distributed across the agency's 
        accounts without a disproportionate 
        reduction from a single program.  
        Additionally, all budget reductions 
        should be made with an emphasis on 
        cutting administration and overhead 
        expenses, and with as little impact as 
        possible on programs and services. 
        To the extent that any reductions 
        reflected in the department would 
        violate federal requirements regarding 
        maintenance of effort, the commissioner 
        is authorized to exempt from reduction 
        the affected programs to the extent 
        required to comply with federal 
        regulations.  The commissioner shall 
        realize the reductions that would 
        otherwise apply from programs and 
        administrative costs funded with 
        general fund dollars that do not have 
        maintenance of effort requirements.  
        The legislature's intent is that any 
        additional program reductions resulting 
        from this provision be done in a 
        proportional manner among the affected 
        programs. 
        If there is a vacancy in the position 
        of commissioner or deputy commissioner 
        in the department between the date of 
        enactment of this act and July 1, 2003, 
        the position may be filled only by an 
        acting commissioner or acting deputy 
        commissioner and may not be filled on a 
        permanent basis. 
        The department's base appropriation 
        shall be reduced by $200,000 in fiscal 
        year 2004 and then by an additional 
        $400,000 in fiscal year 2005 as a 
        result of reorganization of state 
        agencies. 
        Subd. 2.  Workforce Services               -0-         (228,000)
        The base reduction is $428,000 for each 
        year of the 2004-2005 biennium. 
        The base funding for the Minnesota 
        youth program is reduced by $500,000 
        each year in the 2004-2005 biennium. 
        Base funding for the displaced 
        homemakers program may not be reduced. 
        Subd. 3.  Workforce Rehabilitation
        Services                                   -0-         (204,000)
        Subd. 4.  Workforce Services for
        the Blind                                  -0-         (127,000)
        Subd. 5.  Strike Salary
        Savings                                  (80,000)         -0-   
        Sec. 5.  HOUSING FINANCE
        AGENCY                                     -0-         (216,000) 
        It is the legislature's intent that 
        base reductions in an agency's funding 
        be distributed across the agency's 
        accounts without a disproportionate 
        reduction from a single program.  
        Additionally, all budget reductions 
        should be made with an emphasis on 
        cutting administration and overhead 
        expenses, and with as little impact as 
        possible on programs and services. 
        The department's base funding shall be 
        reduced by an additional $457,000 each 
        year for the 2004-2005 biennium.  
        Sec. 6.  DEPARTMENT OF 
        COMMERCE                                (506,000)      (376,000)
        Of these amounts: 
        (1) $44,000 in the first year and 
        $104,000 in the second year are for 
        staff reduction in the department of 
        commerce/administration program; and 
        (2) $59,000 in the first year and 
        $147,000 in the second year are for 
        staff reduction in the weights and 
        measures program. 
        (3) $50,000 the first year and $125,000 
        the second year are for administrative 
        cost reductions.  The department's base 
        funding shall be reduced an additional 
        $25,000 each year for the 2004-2005 
        biennium. 
        (4) $353,000 the first year is a 
        reduction for strike salary savings. 
        Sec. 7.  LABOR AND INDUSTRY             (324,000)      (402,000)
                      Summary by Fund
        General                (324,000)     (502,000)
        Special Revenue           -0-         100,000 
        $70,000 the first year and $141,000 the 
        second year are for staff reductions.  
        $100,000 the second year is a transfer 
        from the workforce development fund for 
        statewide and agency indirect costs 
        associated with the apprenticeship 
        program. 
        Sec. 8.  BUREAU OF MEDIATION 
        SERVICES                                 (30,000)       (30,000)
        These amounts reduce labor-management 
        cooperation grants.  Base funding for 
        labor-management cooperation grants is 
        $252,000 each year for the 2004-2005 
        biennium. 
        Sec. 9.  MINNESOTA HISTORICAL SOCIETY 
        Subdivision 1.  Total 
        Appropriation                           (400,000)      (400,000)
        It is the intention of the legislature 
        that all reductions in the society's 
        budget be implemented with the smallest 
        possible reduction in services and 
        without the closing of sites. 
        Subd. 2.  Education
        and Outreach                            (224,000)      (224,000)
        Base funding is reduced by $146,000 
        each year for the 2004-2005 biennium. 
        Subd. 3.  Preservation
        and Access                              (176,000)      (176,000)
        Base funding is reduced by $104,000 
        each year for the 2004-2005 biennium. 
           Sec. 10.  [CANCELLATIONS AND TRANSFERS.] 
           Subdivision 1.  [JOURNEY TRAVEL INFORMATION SYSTEM.] The 
        Laws 1999, chapter 223, article 1, section 2, subdivision 5, 
        appropriation to the office of tourism to fund the Journey 
        travel information system, estimated to be $426,000, is canceled 
        to the general fund. 
           Subd. 2.  [RURAL POLICY DEVELOPMENT CENTER FUND.] After 
        July 1, 2003, and before June 30, 2004, the commissioner of 
        finance shall transfer $1,000,000 from the rural policy 
        development center fund established in Minnesota Statutes, 
        section 116J.422, to the general fund.  After July 1, 2004, and 
        before June 30, 2005, the commissioner shall transfer an 
        additional $1,000,000 from the rural policy development center 
        fund to the general fund. 
           Subd. 3.  [REAL ESTATE EDUCATION, RESEARCH, AND RECOVERY 
        FUND.] By June 15, 2002, the commissioner of finance shall 
        transfer $3,200,000 from the real estate education, research, 
        and recovery fund established under Minnesota Statutes, section 
        82.34, to the general fund.  
           Subd. 4.  [WORLD TRADE CONFERENCE CENTER.] The balances of 
        all special revenue accounts for the World Trade Conference 
        Center in the trade office, estimated to be $30,000, are 
        transferred to the general fund. 
           Sec. 11.  Minnesota Statutes 2000, section 82.34, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FEE FOR REAL ESTATE FUND.] Each real estate 
        broker, real estate salesperson, and real estate closing agent 
        entitled under this chapter to renew a license shall pay in 
        addition to the appropriate renewal fee a further fee of $50 $20 
        per licensing period which shall be credited to the real estate 
        education, research, and recovery fund.  Any person who receives 
        an initial license shall pay, in addition to all other fees 
        payable, a fee of $75 if the license expires more than 12 months 
        after issuance, $50 if the license expires less than 12 months 
        after issuance $30.  
           Sec. 12.  Laws 2001, First Special Session chapter 4, 
        article 1, section 4, subdivision 6, is amended to read: 
        Subd. 6.  Economic Security Contingent Account
        Beginning in the 2002-2003 biennium, 
        the first $2,000,000 deposited in each 
        year of the biennium into the economic 
        security contingent account created 
        under Minnesota Statutes, section 
        268.196, subdivision 3, shall be 
        transferred upon deposit to the 
        workforce development fund.  Deposits 
        in excess of the $2,000,000, estimated 
        to amount to $650,000, shall be used 
        for purposes of the economic security 
        contingent account.  It is the intent 
        of the legislature that in future 
        years, $2,000,000 each year will be 
        transferred in this manner transferred 
        upon deposit to the general fund. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 13.  Laws 2001, First Special Session chapter 4, 
        article 3, section 1, is amended to read:  
           Section 1.  [DEPARTMENT OF ECONOMIC SECURITY ABOLISHED.] 
           The department of economic security is abolished. 
           [EFFECTIVE DATE.] This section is effective July 1, 
        2002 2003. 
           Sec. 14.  Laws 2001, First Special Session chapter 4, 
        article 3, section 2, subdivision 1, is amended to read: 
           Subdivision 1.  [TO DEPARTMENT OF TRADE AND ECONOMIC 
        DEVELOPMENT.] The responsibilities of the department of economic 
        security performed by its workforce services unit for employment 
        transition services, youth services, welfare-to-work services, 
        and workforce exchange services are transferred to the 
        department of trade and economic development. 
           [EFFECTIVE DATE.] This subdivision is effective July 1, 
        2002 2003. 
           Sec. 15.  Laws 2001, First Special Session chapter 4, 
        article 3, section 3, is amended to read:  
           Sec. 3.  [ORGANIZATION OF DEPARTMENT OF TRADE AND ECONOMIC 
        DEVELOPMENT.] 
           The department of trade and economic development shall have 
        a division of economic development consisting of business and 
        community development, the Minnesota trade office, tourism 
        division, information and analysis division, and administrative 
        support.  The job skills partnership program shall be housed in 
        the department and shall have a policy, research, and evaluation 
        unit.  The job skills partnership board shall provide 
        targeted-worker services to include the dislocated worker 
        program and welfare-to-work services formerly located in the 
        department of economic security.  The board shall have a unit 
        providing special programs under a workforce transition services 
        unit. 
           [EFFECTIVE DATE.] This section is effective July 1, 
        2002 2003. 
           Sec. 16.  [REORGANIZATION POWERS SUSPENDED.] 
           Notwithstanding Minnesota Statutes, section 16B.37, the 
        commissioner of administration may not issue a reorganization 
        order affecting the department of economic security until July 
        1, 2003. 
           Sec. 17.  [EFFECTIVE DATE.] 
           Except as otherwise provided in this article, this article 
        is effective the day following final enactment. 

                                   ARTICLE 13 
                   CANCELLATIONS, TRANSFERS, AND ADJUSTMENTS 
           Section 1.  Minnesota Statutes 2000, section 16A.103, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [FORECAST PARAMETERS.] The forecast must assume 
        the continuation of current laws and reasonable estimates of 
        projected growth in the national and state economies and 
        affected populations.  Revenue must be estimated for all sources 
        provided for in current law.  Expenditures must be estimated for 
        all obligations imposed by law and those projected to occur as a 
        result of inflation and variables outside the control of the 
        legislature.  Expenditure estimates must not include an 
        allowance for inflation. 
           Sec. 2.  Minnesota Statutes 2000, section 16A.103, 
        subdivision 1b, is amended to read: 
           Subd. 1b.  [FORECAST VARIABLE.] In determining the rate of 
        inflation, the application of inflation, the amount of state 
        bonding as it affects debt service, the calculation of 
        investment income, and the other variables to be included in the 
        expenditure part of the forecast, the commissioner must consult 
        with the chairs and lead minority members of the senate state 
        government finance committee and the house ways and means 
        committee, and legislative fiscal staff.  This consultation must 
        occur at least three weeks before the forecast is to be 
        released.  No later than two weeks prior to the release of the 
        forecast, the commissioner must inform the chairs and lead 
        minority members of the senate state government finance 
        committee and the house ways and means committee, and 
        legislative fiscal staff of any changes in these variables from 
        the previous forecast. 
           Sec. 3.  Minnesota Statutes 2000, section 16A.152, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CASH FLOW ACCOUNT ESTABLISHED.] (a) A cash 
        flow account is created in the general fund in the state 
        treasury.  Beginning July 1, 2003, the commissioner of finance 
        shall restrict part or all of the balance before reserves in the 
        general fund as may be necessary to fund the cash flow 
        account as provided by law, up to $350,000,000. 
           (b) The commissioner of finance shall transfer the amount 
        necessary to bring the total amount of the cash flow account to 
        $350,000,000 on July 1, 1995.  The amounts restricted are 
        transferred to the cash flow account and shall remain in the 
        account until drawn down and used to meet cash flow deficiencies 
        resulting from uneven distribution of revenue collections and 
        required expenditures during a fiscal year. 
           Sec. 4.  Minnesota Statutes 2001 Supplement, section 
        16A.152, subdivision 1a, is amended to read: 
           Subd. 1a.  [BUDGET RESERVE.] A budget reserve account of 
        $653,000,000 is created in the general fund in the state 
        treasury.  The commissioner of finance shall transfer to the 
        budget reserve account on July 1 of each odd-numbered year any 
        amounts specifically appropriated by law to the budget reserve. 
           Sec. 5.  Minnesota Statutes 2001 Supplement, section 
        16A.152, subdivision 2, is amended to read: 
           Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] If on the basis 
        of a forecast of general fund revenues and expenditures, the 
        commissioner of finance determines that there will be a positive 
        unrestricted budgetary general fund balance at the close of the 
        biennium, the commissioner of finance must allocate money to the 
        budget reserve until the total amount in the account equals the 
        amount set in this section $653,000,000. 
           The amounts necessary to meet the requirements of this 
        section are appropriated from the general fund within two weeks 
        after the forecast is released. 
           Sec. 6.  Minnesota Statutes 2000, section 144.395, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION.] (a) The tobacco use prevention 
        and local public health endowment fund is created in the state 
        treasury.  The state board of investment shall invest the fund 
        under section 11A.24.  All earnings of the fund must be credited 
        to the fund.  The principal of the fund must be maintained 
        inviolate, except that the principal may be used to make 
        expenditures from the fund for the purposes specified in this 
        section when the market value of the fund falls below 105 
        percent of the cumulative total of the tobacco settlement 
        payments received by the state and credited to the tobacco 
        settlement fund under section 16A.87, subdivision 2.  For 
        purposes of this section, "principal" means an amount equal to 
        the cumulative total of the tobacco settlement payments received 
        by the state and credited to the tobacco settlement fund under 
        section 16A.87, subdivision 2.  
           (b) If the commissioner of finance determines that probable 
        receipts to the general fund will not be sufficient to meet the 
        need for expenditures from the general fund for a fiscal 
        biennium, the commissioner may use cash reserves of the tobacco 
        use prevention and local public health endowment fund to pay 
        expenses of the general fund.  If cash reserves are transferred 
        to the general fund to meet cash flow needs, the cash flow 
        transfers must be returned to the endowment fund as soon as 
        sufficient cash balances are available in the general fund, but 
        in any event before the end of the fiscal biennium.  Any 
        interest earned on cash flow transfers from the endowment fund 
        accrues to the endowment fund and not to the general fund. 
           Sec. 7.  [BALANCES CANCELED TO GENERAL FUND.] 
           The unobligated balances in the following general fund 
        accounts created in the sections of Minnesota Statutes indicated 
        are canceled to the general fund in the fiscal years indicated: 
           (1) the budget reserve account, Minnesota Statutes, section 
        16A.152, subdivision 1a, estimated to be $653,000,000, in fiscal 
        year 2002; 
           (2) the local government aid reform account, Minnesota 
        Statutes, section 16A.1523, estimated to be $14,000,000, in 
        fiscal year 2003; 
           (3) the tax relief account, Minnesota Statutes, section 
        16A.1522, subdivision 4, estimated to be $158,148,000, in fiscal 
        year 2004; and 
           (4) $195,000,000 of the unobligated balance in the cash 
        flow account in Minnesota Statutes, section 16A.152, subdivision 
        1. 
           Sec. 8.  [TIF GRANT FUND.] 
           Subdivision 1.  [APPROPRIATION REDUCTION.] The 
        appropriations for the TIF grant account in Minnesota Statutes, 
        section 469.1799, subdivision 3, of $91,000,000 in fiscal year 
        2002 and $38,000,000 in fiscal year 2003 are canceled. 
           Subd. 2.  [REPEALER.] Minnesota Statutes 2001 Supplement, 
        section 469.1799, subdivisions 1 and 3, are repealed. 
           Sec. 9.  [TRANSFERS TO GENERAL FUND.] 
           Subdivision 1.  [ASSIGNED RISK PLAN.] By June 30, 2002, the 
        commissioner of finance shall transfer $120,000,000 in assets of 
        the assigned risk plan created under Minnesota Statutes, section 
        79.252, to the general fund.  $25,100,000 is appropriated from 
        the general fund to the commissioner of finance to fund the 
        settlement of the lawsuit entitled Danny's Trannys, Inc. et al. 
        v. State, et al., Ramsey County District Court No. C7-00-5714, 
        and to reimburse the tort claims account for amounts paid to 
        implement settlement of this lawsuit. 
           Subd. 2.  [SPECIAL COMPENSATION FUND.] After June 1, 2003, 
        but no later than June 30, 2003, the commissioner of finance 
        shall transfer $230,000,000 in assets of the excess surplus 
        account of the special compensation fund created under Minnesota 
        Statutes, section 176.129, to the general fund. 
           Subd. 3.  [REPEALER.] Laws 2000, chapter 447, section 25, 
        is repealed. 
           Sec. 10.  [APPROPRIATIONS REDUCED AND CANCELED.] 
           Of the appropriations in Laws 2000, chapter 492, article 2, 
        to the metropolitan council for a bus transitway, the 
        appropriation for fiscal year 2001 is reduced to $4,000,000 and 
        the appropriation for fiscal year 2002 is canceled. 
           Sec. 11.  [REPEALER.] 
           Minnesota Statutes 2001 Supplement, section 16A.1523, is 
        repealed. 
           Sec. 12.  [EFFECTIVE DATE.] 
           This article is effective the day following final 
        enactment, except that section 6 is effective July 1, 2003. 

                                   ARTICLE 14
                       CONTINUING CARE AND LONG-TERM CARE
           Section 1.  Minnesota Statutes 2000, section 252.282, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [HOST COUNTY RESPONSIBILITY.] (a) For 
        purposes of this section, "local system needs planning" means 
        the determination of need for ICF/MR services by program type, 
        location, demographics, and size of licensed services for 
        persons with developmental disabilities or related conditions. 
           (b) This section does not apply to semi-independent living 
        services and residential-based habilitation services funded as 
        home and community-based services. 
           (c) In collaboration with the commissioner and ICF/MR 
        providers, counties shall complete a local system needs planning 
        process for each ICF/MR facility.  Counties shall evaluate the 
        preferences and needs of persons with developmental disabilities 
        to determine resource demands through a systematic assessment 
        and planning process by May 15, 2000, and by July 1 every two 
        years thereafter beginning in 2001. 
           (d) A local system needs planning process shall be 
        undertaken more frequently when the needs or preferences of 
        consumers change significantly to require reformation of the 
        resources available to persons with developmental disabilities. 
           (e) A local system needs plan shall be amended anytime 
        recommendations for modifications to existing ICF/MR services 
        are made to the host county, including recommendations for: 
           (1) closure; 
           (2) relocation of services; 
           (3) downsizing; or 
           (4) rate adjustments exceeding 90 days duration to address 
        access; or 
           (5) modification of existing services for which a change in 
        the framework of service delivery is advocated. 
           Sec. 2.  Minnesota Statutes 2000, section 252.282, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RECOMMENDATIONS.] (a) Upon completion of the 
        local system needs planning assessment, the host county shall 
        make recommendations by May 15, 2000, and by July 1 every two 
        years thereafter beginning in 2001.  If no change is 
        recommended, a copy of the assessment along with corresponding 
        documentation shall be provided to the commissioner by July 1 
        prior to the contract year. 
           (b) Except as provided in section 252.292, subdivision 4, 
        recommendations regarding closures, relocations, or downsizings 
        that include a rate increase and recommendations regarding rate 
        adjustments exceeding 90 days shall be submitted to the 
        statewide advisory committee for review and determination, along 
        with the assessment, plan, and corresponding budget 
        documentation that supports the payment rate adjustment request. 
           (c) Recommendations for closures, relocations, and 
        downsizings that do not include a rate increase and for 
        modification of existing services for which a change in the 
        framework of service delivery is necessary shall be provided to 
        the commissioner by July 1 prior to the contract year or at 
        least 90 days prior to the anticipated change, along with the 
        assessment and corresponding documentation. 
           Sec. 3.  Minnesota Statutes 2000, section 252.282, 
        subdivision 4, is amended to read: 
           Subd. 4.  [STATEWIDE ADVISORY COMMITTEE.] (a) The 
        commissioner shall appoint a five-member statewide advisory 
        committee.  The advisory committee shall include representatives 
        of providers and counties and the commissioner or the 
        commissioner's designee. 
           (b) The criteria for ranking proposals, already developed 
        in 1997 by a task force authorized by the legislature, shall be 
        adopted and incorporated into the decision-making process.  
        Specific guidelines, including: 
           (1) time frame for submission of requests; 
           (2) the funds appropriated by the legislature for the 
        purposes outlined in section 256B.5013, subdivisions 2 to 4; and 
           (3) state policy directions for the provision of services 
        to persons with developmental disabilities, shall be established 
        and announced through the State Register, and all requests shall 
        be considered in comparison to each other and the ranking 
        criteria.  The advisory committee shall review and recommend 
        requests for to the commissioner for approval of facility rate 
        adjustments to address closures, downsizing, relocation, or 
        access needs within the county and shall forward recommendations 
        and documentation to the commissioner downsizings, or 
        relocations.  The committee shall ensure that: 
           (1) applications are in compliance with applicable state 
        and federal law and with the state plan; and 
           (2) cost projections for the proposed service are within 
        fiscal limitations the fundings limits established by the 
        legislative appropriation; and 
           (3) their recommendations are submitted to the commissioner.
           (c) The advisory committee shall review proposals and 
        submit recommendations to the commissioner within 60 days 
        following the published deadline for submission under 
        subdivision 5. 
           Sec. 4.  Minnesota Statutes 2000, section 252.282, 
        subdivision 5, is amended to read: 
           Subd. 5.  [RESPONSIBILITIES OF COMMISSIONER.] (a) In 
        collaboration with counties, providers, and the statewide 
        advisory committee, the commissioner shall ensure that services 
        recognize the preferences and needs of persons with 
        developmental disabilities and related conditions through a 
        recurring systemic review and assessment of ICF/MR facilities 
        within the state. 
           (b) The commissioner shall publish a notice in the State 
        Register twice each calendar year no less than biannually to 
        announce the opportunity for counties or providers to submit 
        requests for payment rate adjustments associated with plans for 
        downsizing, relocation, and closure of ICF/MR facilities. 
           (c) The commissioner shall designate funding parameters to 
        counties and to the statewide advisory committee for the overall 
        implementation of system needs within the fiscal resources 
        allocated by the legislature. 
           (d) The commissioner shall contract with ICF/MR providers.  
        The initial contracts shall cover the period from October 1, 
        2000, to December 31, 2001.  Subsequent contracts shall be for 
        two-year periods beginning January 1, 2002. 
           Sec. 5.  Minnesota Statutes 2000, section 256.9657, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [NURSING HOME LICENSE SURCHARGE.] (a) 
        Effective July 1, 1993, each non-state-operated nursing 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 $620 per licensed bed.  If 
        the number of licensed beds is reduced, the surcharge shall be 
        based on the number of remaining licensed beds the second month 
        following the receipt of timely notice by the commissioner of 
        human services that beds have been delicensed.  The nursing home 
        must notify the commissioner of health in writing when beds are 
        delicensed.  The commissioner of health must notify the 
        commissioner of human services within ten working days after 
        receiving written notification.  If the notification is received 
        by the commissioner of human services by the 15th of the month, 
        the invoice for the second following month must be reduced to 
        recognize the delicensing of beds.  Beds on layaway status 
        continue to be subject to the surcharge.  The commissioner of 
        human services must acknowledge a medical care surcharge appeal 
        within 30 days of receipt of the written appeal from the 
        provider. 
           (b) Effective July 1, 1994, the surcharge in paragraph (a) 
        shall be increased to $625. 
           (c) Effective August 15, 2003, the surcharge under 
        paragraph (b) shall be increased by an amount necessary to 
        ensure a net gain to the general fund of $9,620,000 during 
        fiscal year 2004 as a result of: 
           (1) the total transfers anticipated during the fiscal year 
        ending June 30, 2004, under section 256B.19, subdivision 1d, 
        paragraph (c); 
           (2) the county nursing home payment adjustments under 
        section 256B.431, subdivision 23, paragraph (c); 
           (3) the surcharges under this paragraph; and 
           (4) the nursing facility rate increases under section 
        256B.431, subdivision 37. 
        The increase under this paragraph shall not exceed $365 per bed. 
           (d) Effective August 15, 2004, the surcharge under 
        paragraph (c) shall be equal to an amount necessary to ensure a 
        net gain to the general fund each fiscal year of $10,228,000 as 
        a result of: 
           (1) the total transfers anticipated during the fiscal year 
        under section 256B.19, subdivision 1d, paragraph (c); 
           (2) the county nursing home payment adjustments under 
        section 256B.431, subdivision 23, paragraph (c); 
           (3) the surcharges under this paragraph; and 
           (4) the nursing facility rate increases under section 
        256B.431, subdivision 37. 
        The surcharge under this paragraph shall not exceed $365 per bed.
           Sec. 6.  Minnesota Statutes 2000, section 256B.0916, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ALLOCATION OF NEW DIVERSIONS AND PRIORITIES FOR 
        REASSIGNMENT OF RESOURCES AND APPROVAL OF INCREASED CAPACITY FOR 
        THE HOME AND COMMUNITY-BASED WAIVER FOR PERSONS WITH MENTAL 
        RETARDATION OR RELATED CONDITIONS.] In order to maximize the 
        number of persons served with waiver funds, (a) The commissioner 
        shall monitor county utilization of allocated resources and, as 
        appropriate, reassign resources not utilized and approve 
        increased capacity within available county allocations.  
           (b) Effective July 1, 2002, the commissioner shall 
        authorize the spending of new diversion resources beginning 
        January 1 of each year. 
           (c) Effective July 1, 2002, the commissioner shall manage 
        the reassignment of waiver resources that occur from persons who 
        have left the waiver in a manner that results in the cost 
        reduction equivalent to delaying the reuse of those waiver 
        resources by 180 days. 
           (d) Priority consideration for reassignment of resources 
        and approval of increased capacity shall be given to counties 
        with sufficient capacity and counties that form partnerships.  
        In addition to the priorities listed in Minnesota Rules, part 
        9525.1880, the commissioner shall also give priority 
        consideration to persons whose living situations are unstable 
        due to the age or incapacity of the primary caregiver and to 
        children to avoid out-of-home placement. 
           Sec. 7.  Minnesota Statutes 2000, section 256B.19, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DIVISION OF COST.] The state and county 
        share of medical assistance costs not paid by federal funds 
        shall be as follows:  
           (1) ninety percent state funds and ten percent county 
        funds, unless otherwise provided below; 
           (2) beginning January 1, 1992, 50 percent state funds and 
        50 percent county funds for the cost of placement of severely 
        emotionally disturbed children in regional treatment centers; 
        and 
           (3) beginning January 1, 2003, 80 percent state funds and 
        20 percent county funds for the costs of nursing facility 
        placements of persons with disabilities under the age of 65 that 
        have exceeded 90 days.  
           For counties that participate in a Medicaid demonstration 
        project under sections 256B.69 and 256B.71, the division of the 
        nonfederal share of medical assistance expenses for payments 
        made to prepaid health plans or for payments made to health 
        maintenance organizations in the form of prepaid capitation 
        payments, this division of medical assistance expenses shall be 
        95 percent by the state and five percent by the county of 
        financial responsibility.  
           In counties where prepaid health plans are under contract 
        to the commissioner to provide services to medical assistance 
        recipients, the cost of court ordered treatment ordered without 
        consulting the prepaid health plan that does not include 
        diagnostic evaluation, recommendation, and referral for 
        treatment by the prepaid health plan is the responsibility of 
        the county of financial responsibility. 
           Sec. 8.  Minnesota Statutes 2000, section 256B.19, 
        subdivision 1d, is amended to read: 
           Subd. 1d.  [PORTION OF NONFEDERAL SHARE TO BE PAID BY 
        CERTAIN COUNTIES.] (a) 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 cost.  For purposes of this subdivision, 
        "designated governmental unit" means the counties of Becker, 
        Beltrami, Clearwater, Cook, Dodge, Hubbard, Itasca, Lake, 
        Pennington, Pipestone, Ramsey, St. Louis, Steele, Todd, 
        Traverse, and Wadena. 
           (b) Beginning in 1994, each of the governmental units 
        designated in this subdivision shall transfer before noon on May 
        31 to the state Medicaid agency an amount equal to the number of 
        licensed beds in any nursing home owned and operated by the 
        county, with the county named as licensee, multiplied by $5,723. 
        If two or more counties own and operate a nursing home, the 
        payment shall be prorated.  These sums shall be part of the 
        designated governmental unit's portion of the nonfederal share 
        of medical assistance costs, but shall not be subject to payback 
        provisions of section 256.025. 
           (c) Beginning in 2002, in addition to any transfer under 
        paragraph (b), each of the governmental units designated in this 
        subdivision shall transfer before noon on May 31 to the state 
        Medicaid agency an amount equal to the number of licensed beds 
        in any nursing home owned and operated by the county on that 
        date, with the county named as licensee, multiplied by $10,784.  
        The provisions of paragraph (b) apply to transfers under this 
        paragraph. 
           (d) The commissioner may reduce the intergovernmental 
        transfers under paragraph (c) based on the commissioner's 
        determination of the payment rate in section 256B.431, 
        subdivision 23, paragraphs (c) and (d).  Any adjustments must be 
        made on a per-bed basis and must result in an amount equivalent 
        to the total amount resulting from the rate adjustment in 
        section 256B.431, subdivision 23, paragraphs (c) and (d). 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 9.  Minnesota Statutes 2000, section 256B.431, 
        subdivision 23, is amended to read: 
           Subd. 23.  [COUNTY NURSING HOME PAYMENT ADJUSTMENTS.] (a) 
        Beginning in 1994, the commissioner shall pay a nursing home 
        payment adjustment on May 31 after noon to a county in which is 
        located a nursing home that, as of January 1 of the previous 
        year, was county-owned and operated, with the county named as 
        licensee by the commissioner of health, and had over 40 beds and 
        medical assistance occupancy in excess of 50 percent during the 
        reporting year ending September 30, 1991.  The adjustment shall 
        be an amount equal to $16 per calendar day multiplied by the 
        number of beds licensed in the facility as of September 30, 1991.
           (b) Payments under paragraph (a) are excluded from medical 
        assistance per diem rate calculations.  These payments are 
        required notwithstanding any rule prohibiting medical assistance 
        payments from exceeding payments from private pay residents.  A 
        facility receiving a payment under paragraph (a) may not 
        increase charges to private pay residents by an amount 
        equivalent to the per diem amount payments under paragraph (a) 
        would equal if converted to a per diem. 
           (c) Beginning in 2002, in addition to any payment under 
        paragraph (a), the commissioner shall pay to a nursing facility 
        described in paragraph (a) an adjustment in an amount equal to 
        $29.55 per calendar day multiplied by the number of beds 
        licensed in the facility on that date.  The provisions of 
        paragraphs (a) and (b) apply to payments under this paragraph.  
           (d) The commissioner may reduce payments under paragraph (c)
        based on the commissioner's determination of Medicare upper 
        payment limits.  Any adjustments must be proportional to 
        adjustments made under section 256B.19, subdivision 1d, 
        paragraph (d). 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 10.  Minnesota Statutes 2000, section 256B.431, is 
        amended by adding a subdivision to read: 
           Subd. 37.  [NURSING HOME RATE INCREASES EFFECTIVE JULY 1, 
        2003.] For rate years beginning on or after July 1, 2003, the 
        commissioner shall provide to each nursing home reimbursed under 
        this section or section 256B.434 an increase in each case mix 
        payment rate equal to the increase in the per-bed surcharge paid 
        under section 256.9657, subdivision 1, paragraph (c) or (d), 
        divided by 365 and further divided by .80.  The increase under 
        this subdivision shall be added following the determination of 
        the payment rate for the home under this chapter.  The increase 
        shall not be subject to any annual percentage increase. 
           Sec. 11.  Minnesota Statutes 2001 Supplement, section 
        256B.437, subdivision 2, is amended to read: 
           Subd. 2.  [PLANNING AND DEVELOPMENT OF COMMUNITY-BASED 
        SERVICES.] (a) The commissioner of human services shall 
        establish a process to adjust the capacity and distribution of 
        long-term care services to equalize the supply and demand for 
        different types of services.  This process must include 
        community planning, expansion or establishment of needed 
        services, and analysis of voluntary nursing facility closures. 
           (b) The purpose of this process is to support the planning 
        and development of community-based services.  This process must 
        support early intervention, advocacy, and consumer protection 
        while providing resources and incentives for expanded county 
        planning and for nursing facilities to transition to meet 
        community needs. 
           (c) The process shall support and facilitate expansion of 
        community-based services under the county-administered 
        alternative care program under section 256B.0913 and waivers for 
        elderly under section 256B.0915, including, but not limited to, 
        the development of supportive services such as housing and 
        transportation.  The process shall utilize community assessments 
        and planning developed for the community health services plan 
        and plan update and for the community social services act plan, 
        and other relevant information. 
           (d) The commissioners of health and human services, as 
        appropriate, shall provide, by July 15, 2001, available data 
        necessary for the county, including, but not limited to, data on 
        nursing facility bed distribution, housing with services 
        options, the closure of nursing facilities that occur outside of 
        the planned closure process, and approval of planned closures in 
        the county and contiguous counties. 
           (e) Each county shall submit to the commissioner of human 
        services, by October 15, 2001, a gaps analysis that identifies 
        local service needs, pending development of services, and any 
        other issues that would contribute to or impede further 
        development of community-based services.  The gaps analysis must 
        also be sent to the local area agency on aging and, if 
        applicable, local SAIL projects, for review and comment.  The 
        review and comment must assess needs across county boundaries.  
        The area agencies on aging and SAIL projects must provide the 
        commissioner and the counties with their review and analyses by 
        November 15, 2001. 
           (f) The addendum to the biennial plan shall be submitted 
        annually biennially, beginning December 31, 2001, and each 
        December 31 every other year thereafter in accordance with the 
        Community Social Services Act plan timeline, and shall include 
        recommendations for development of community-based 
        services.  Area agencies on aging and SAIL projects must provide 
        the commissioner and the counties with their review and analyses 
        within 60 days following the Community Social Services Act plan 
        submission date.  Both planning and implementation shall be 
        implemented within the amount of funding made available to the 
        county board for these purposes. 
           (g) The plan, within the funding allocated, shall: 
           (1) include the gaps analysis required by paragraph (e); 
           (2) involve providers, consumers, cities, townships, 
        businesses, and area agencies on aging in the planning process; 
           (3) address the availability of alternative care and 
        elderly waiver services for eligible recipients; 
           (4) address the development of other supportive services, 
        such as transit, housing, and workforce and economic 
        development; and 
           (5) estimate the cost and timelines for development. 
           (h) The biennial plan addendum shall be coordinated with 
        the county mental health plan for inclusion in the community 
        health services plan and included as an addendum to the 
        community social services plan. 
           (i) The county board having financial responsibility for 
        persons present in another county shall cooperate with that 
        county for planning and development of services. 
           (j) The county board shall cooperate in planning and 
        development of community-based services with other counties, as 
        necessary, and coordinate planning for long-term care services 
        that involve more than one county, within the funding allocated 
        for these purposes. 
           (k) The commissioners of health and human services, in 
        cooperation with county boards, shall report biennially to the 
        legislature by February 1 of each year, beginning February 1, 
        2002, regarding the development of community-based services, 
        transition or closure of nursing facilities, and specific gaps 
        in services in identified geographic areas that may require 
        additional resources or flexibility, as documented by the 
        process in this subdivision and reported to the commissioners by 
        December 31 of each year. 
           Sec. 12.  Minnesota Statutes 2001 Supplement, section 
        256B.439, subdivision 1, is amended to read: 
           Subdivision 1.  [DEVELOPMENT AND IMPLEMENTATION OF QUALITY 
        PROFILES.] (a) The commissioner of human services, in 
        cooperation with the commissioner of health, shall develop and 
        implement a quality profile system for nursing facilities and, 
        beginning not later than July 1, 2003 2004, other providers of 
        long-term care services, except when the quality profile system 
        would duplicate requirements under section 256B.5011, 256B.5012, 
        or 256B.5013.  The system must be developed and implemented to 
        the extent possible without the collection of significant 
        amounts of new data.  To the extent possible, the system must 
        incorporate or be coordinated with information on quality 
        maintained by area agencies on aging, long-term care trade 
        associations, and other entities.  The system must be designed 
        to provide information on quality to: 
           (1) consumers and their families to facilitate informed 
        choices of service providers; 
           (2) providers to enable them to measure the results of 
        their quality improvement efforts and compare quality 
        achievements with other service providers; and 
           (3) public and private purchasers of long-term care 
        services to enable them to purchase high-quality care. 
           (b) The system must be developed in consultation with the 
        long-term care task force, area agencies on aging, and 
        representatives of consumers, providers, and labor unions.  
        Within the limits of available appropriations, the commissioners 
        may employ consultants to assist with this project. 
           Sec. 13.  Minnesota Statutes 2001 Supplement, section 
        256B.439, subdivision 4, is amended to read: 
           Subd. 4.  [DISSEMINATION OF QUALITY PROFILES.] By July 
        1, 2002 2003, the commissioners shall implement a system to 
        disseminate the quality profiles developed from consumer surveys 
        using the quality measurement tool.  Profiles may be 
        disseminated to the Senior LinkAge line and to consumers, 
        providers, and purchasers of long-term care services through all 
        feasible printed and electronic outlets.  The commissioners may 
        conduct a public awareness campaign to inform potential users 
        regarding profile contents and potential uses. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 14.  Minnesota Statutes 2001 Supplement, section 
        256B.5013, subdivision 1, is amended to read: 
           Subdivision 1.  [VARIABLE RATE ADJUSTMENTS.] (a) For rate 
        years beginning on or after October 1, 2000, when there is a 
        documented increase in the resource needs of a current ICF/MR 
        recipient or recipients, or a person is admitted to a facility 
        who requires additional resources, the county of financial 
        responsibility may recommend approval of a variable rate to 
        enable the facility to meet the individual's increased needs.  
        Variable rate adjustments made under this subdivision replace 
        payments for persons with special needs under section 256B.501, 
        subdivision 8, and payments for persons with special needs for 
        crisis intervention services under section 256B.501, subdivision 
        8a.  Resource needs directly attributable to an individual that 
        may be considered under the variable rate adjustment include 
        increased direct staff hours, other specialized services, and 
        equipment.  The guidelines in paragraphs (a) to (d) apply for 
        the payment rate adjustments under this section.  Facilities 
        with a base rate above the 50th percentile of the statewide 
        average reimbursement rate for a Class A facility or Class B 
        facility, whichever matches the facility licensure, are not 
        eligible for a variable rate adjustment.  Variable rate 
        adjustments may not exceed a 12-month period, except when 
        approved for purposes established in paragraph (b), clause (1).  
        Variable rate adjustments approved solely on the basis of 
        changes on a developmental disabilities screening document will 
        end June 30, 2002. 
           (a) All persons must be screened according to section 
        256B.092, subdivisions 7 and 8, prior to implementation of the 
        new payment system, and annually thereafter, and when a variable 
        rate is being requested due to changes in the needs of the 
        recipient.  Screening data shall be used to monitor changes as 
        follows: 
           (1) the functional ability of a recipient to care for and 
        maintain the recipient's own basic needs; 
           (2) the intensity of any aggressive or destructive 
        behavior; and 
           (3) any history of obstructive behavior in combination with 
        a diagnosis of psychosis or neurosis. 
           (b) A variable rate may be recommended by the county of 
        financial responsibility for increased service needs such as in 
        the following situations: 
           (1) a need for resources due to a change in resident day 
        program participation because the resident an individual's full 
        or partial retirement from participation in a day training and 
        habilitation service when the individual:  (i) has reached the 
        age of 65 or has a change in health condition that makes it 
        difficult for the person to participate in day training and 
        habilitation services over an extended period of time because it 
        is medically contraindicated; and (ii) has expressed a desire 
        for change through the mental retardation and related conditions 
        screening process under section 256B.092; and 
           (2) a need for additional resources for intensive 
        short-term programming which is necessary prior to a recipient's 
        an individual's discharge to a less restrictive, more integrated 
        setting.; 
           Recommendations for a variable rate shall be used to link 
        resource needs to funding.  The variable rate must be applied to 
        expenses related to increased direct staff hours, other 
        specialized services, and equipment.  
           (c) A recipient must be screened by the county of financial 
        responsibility using the developmental disabilities screening 
        document completed immediately prior to approval of a variable 
        rate by the county.  A comparison of the updated screening and 
        the previous screening must demonstrate an increase in resource 
        needs. 
           (d) Rate adjustments projected to exceed the authorized 
        funding level associated with the person's profile must be 
        submitted to the commissioner. 
           (3) a demonstrated medical need that significantly impacts 
        the type or amount of services needed by the individual; or 
           (4) a demonstrated behavioral need that significantly 
        impacts the type or amount of services needed by the individual. 
           (e) (c) The county of financial responsibility must 
        indicate justify the purpose, the projected length of time that, 
        and the additional funding may be needed for the facility to 
        meet the needs of the individual.  The need to continue an 
        individual variable rate must be reviewed at the end of the 
        anticipated duration of need but at least annually through the 
        completion of the developmental disabilities screening document. 
           (d) The facility shall provide a quarterly report to the 
        county case manager on the use of the variable rate funds and 
        the status of the individual on whose behalf the funds were 
        approved.  The county case manager will forward the facility's 
        report with a recommendation to the commissioner to approve or 
        disapprove a continuation of the variable rate. 
           (e) Funds made available through the variable rate process 
        that are not used by the facility to meet the needs of the 
        individual for whom they were approved shall be returned to the 
        state. 
           Sec. 15.  Minnesota Statutes 2000, section 256B.5013, 
        subdivision 2, is amended to read: 
           Subd. 2.  [OTHER PAYMENT RATE ADJUSTMENTS.] Facility total 
        payment rates may be adjusted by the commissioner following the 
        recommendation of both the host county, with authorization from 
        a and the statewide advisory committee, if, through the local 
        system needs planning process, it is determined that a need 
        exists to amend the package of purchased services with a 
        resulting increase or decrease in costs.  Except as provided in 
        section 252.292, subdivision 4, if a provider demonstrates that 
        the loss of revenues caused by the downsizing or closure of a 
        facility cannot be absorbed by the facility based on current 
        operations, the host county or the provider may submit a request 
        to the statewide advisory committee for a facility base rate 
        adjustment.  Funds for this purpose are limited to those made 
        available through a legislative appropriation and published in 
        the State Register notice required by section 252.282, 
        subdivision 5. 
           Sec. 16.  Minnesota Statutes 2000, section 256B.5013, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TEMPORARY RATE ADJUSTMENTS TO ADDRESS OCCUPANCY 
        AND ACCESS.] If a facility is operating at less than 100 percent 
        occupancy on September 30, 2000, or if a recipient is discharged 
        from a facility, Beginning July 1, 2002, the commissioner shall 
        adjust the total payment rate for up to 90 75 days for the 
        remaining recipients for facilities in which the monthly 
        occupancy rate of licensed beds is 75 percent or greater.  This 
        mechanism shall not be used to pay for hospital or therapeutic 
        leave days beyond the maximums allowed.  Facility payment 
        adjustments exceeding 90 days to address a demonstrated need for 
        access must be submitted to the statewide advisory committee 
        with a local system needs assessment, plan, and budget for 
        review and recommendation. 
           Sec. 17.  Minnesota Statutes 2000, section 256B.5013, 
        subdivision 5, is amended to read: 
           Subd. 5.  [REQUIRED OCCUPANCY DATA; PAYMENT ADJUSTMENTS.] 
        Facilities shall maintain and submit monthly occupancy bed use 
        data in the form of resident days and variable rate 
        information.  When a variable rate is reported by a facility, 
        monthly bed use data shall be used to track the amount and time 
        span of the rate adjustment.  The total payments made to a 
        facility may be adjusted based on concurrent changes in the 
        needs of recipients that are covered by a variable rate 
        adjustment.  Any adjustment for multiple resident changes shall 
        not result in a decrease to the facility base rate by client and 
        report this data monthly in a format determined by the 
        commissioner. 
           Sec. 18.  Minnesota Statutes 2000, section 256B.5013, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COMMISSIONER REVIEW COMMISSIONER'S 
        RESPONSIBILITIES.] During the initial contracting period, The 
        commissioner shall review the process of variable rate 
        adjustments to determine if the variable rate process is being 
        effectively implemented and whether the variable rate process 
        minimizes unnecessary detailed recordkeeping and meets recipient 
        needs.: 
           (1) make a determination to approve, deny, or modify a 
        request for a variable rate adjustment within 30 days of the 
        receipt of the completed application; 
           (2) notify the ICF/MR facility and county case manager of 
        the duration and conditions of variable rate adjustment 
        approvals; 
           (3) modify MMIS II service agreements to reimburse ICF/MR 
        facilities for approved variable rates; 
           (4) provide notification of legislatively appropriated 
        funding for facility closures, downsizings, and relocations; 
           (5) assess the fiscal impacts of the proposals for 
        closures, downsizings, and relocations forwarded for 
        consideration through the state advisory committee; and 
           (6) review the payment rate process on a biannual basis and 
        make recommendations to the legislature for necessary 
        adjustments to the review and approval process.  
           Sec. 19.  Laws 2001, First Special Session chapter 9, 
        article 5, section 35, is amended to read: 
           Sec. 35.  [DEVELOPMENT OF NEW NURSING FACILITY 
        REIMBURSEMENT SYSTEM.] 
           (a) The commissioner of human services shall develop and 
        report to the legislature by January 15, 2003 2004, a system to 
        replace the current nursing facility reimbursement system 
        established under Minnesota Statutes, sections 256B.431, 
        256B.434, and 256B.435. 
           (b) The system must be developed in consultation with the 
        long-term care task force and with representatives of consumers, 
        providers, and labor unions.  Within the limits of available 
        appropriations, the commissioner may employ consultants to 
        assist with this project. 
           (c) The new reimbursement system must: 
           (1) provide incentives to enhance quality of life and 
        quality of care; 
           (2) recognize cost differences in the care of different 
        types of populations, including subacute care and dementia care; 
           (3) establish rates that are sufficient without being 
        excessive; 
           (4) be affordable for the state and for private-pay 
        residents; 
           (5) be sensitive to changing conditions in the long-term 
        care environment; 
           (6) avoid creating access problems related to insufficient 
        funding; 
           (7) allow providers maximum flexibility in their business 
        operations; 
           (8) recognize the need for capital investment to improve 
        physical plants; and 
           (9) provide incentives for the development and use of 
        private rooms. 
           (d) Notwithstanding Minnesota Statutes, section 256B.435, 
        the commissioner must not implement a performance-based 
        contracting system for nursing facilities prior to July 1, 2003 
        2004. The commissioner shall continue to reimburse nursing 
        facilities under Minnesota Statutes, section 256B.431 or 
        256B.434, until otherwise directed by law. 
           (e) The commissioner of human services, in consultation 
        with the commissioner of health, shall conduct or contract for a 
        time study to determine staff time being spent on various case 
        mix categories; recommend adjustments to the case mix weights 
        based on the time study data; and determine whether current 
        staffing standards are adequate for providing quality care based 
        on professional best practice and consumer experience.  If the 
        commissioner determines the current standards are inadequate, 
        the commissioner shall determine an appropriate staffing 
        standard for the various case mix categories and the financial 
        implications of phasing into this standard over the next four 
        years. 
           Sec. 20.  [REPEALER.] 
           Minnesota Statutes 2000, section 256B.0916, subdivision 1, 
        is repealed. 

                                   ARTICLE 15
                                  HEALTH CARE
           Section 1.  Minnesota Statutes 2000, section 62J.692, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DISTRIBUTION OF FUNDS.] (a) The commissioner 
        shall annually distribute medical education funds to all 
        qualifying applicants based on the following criteria:  
           (1) total medical education funds available for 
        distribution; 
           (2) total number of eligible trainee FTEs in each clinical 
        medical education program; and 
           (3) the statewide average cost per trainee as determined by 
        the application information provided in the first year of the 
        biennium, by type of trainee, in each clinical medical education 
        program.  
           (b) Funds distributed shall not be used to displace current 
        funding appropriations from federal or state sources.  
           (c) Funds shall be distributed to the sponsoring 
        institutions indicating the amount to be distributed to each of 
        the sponsor's clinical medical education programs based on the 
        criteria in this subdivision and in accordance with the 
        commissioner's approval letter.  Each clinical medical education 
        program must distribute funds to the training sites as specified 
        in the commissioner's approval letter.  Sponsoring institutions, 
        which are accredited through an organization recognized by the 
        department of education or the health care financing 
        administration, may contract directly with training sites to 
        provide clinical training.  To ensure the quality of clinical 
        training, those accredited sponsoring institutions must: 
           (1) develop contracts specifying the terms, expectations, 
        and outcomes of the clinical training conducted at sites; and 
           (2) take necessary action if the contract requirements are 
        not met.  Action may include the withholding of payments under 
        this section or the removal of students from the site.  
           (d) Any funds not distributed in accordance with the 
        commissioner's approval letter must be returned to the medical 
        education and research fund within 30 days of receiving notice 
        from the commissioner.  The commissioner shall distribute 
        returned funds to the appropriate training sites in accordance 
        with the commissioner's approval letter. 
           (e) The commissioner shall distribute no later than June 30 
        of each year an amount equal to the funds transferred under 
        section 62J.694, subdivision 2a, paragraph (b), plus interest at 
        a rate equal to the average earnings paid under section 62J.694, 
        subdivision 2a, to the University of Minnesota board of regents 
        for the costs of the academic health center as specified under 
        section 62J.694, subdivision 2a, paragraph (a).  
           Sec. 2.  Minnesota Statutes 2001 Supplement, section 
        62J.692, subdivision 7, is amended to read: 
           Subd. 7.  [TRANSFERS FROM THE COMMISSIONER OF HUMAN 
        SERVICES.] (a) The amount transferred according to section 
        256B.69, subdivision 5c, paragraph (a), clause (1), shall be 
        distributed by the commissioner to clinical medical education 
        programs that meet the qualifications of subdivision 3 based on 
        a distribution formula that reflects a summation of two factors: 
           (1) an education factor, which is determined by the total 
        number of eligible trainee FTEs and the total statewide average 
        costs per trainee, by type of trainee, in each clinical medical 
        education program; and 
           (2) a public program volume factor, which is determined by 
        the total volume of public program revenue received by each 
        training site as a percentage of all public program revenue 
        received by all training sites in the fund pool created under 
        this subdivision.  
           In this formula, the education factor shall be weighted at 
        50 percent and the public program volume factor shall be 
        weighted at 50 percent. 
           Public program revenue for the distribution formula shall 
        include revenue from medical assistance, prepaid medical 
        assistance, general assistance medical care, and prepaid general 
        assistance medical care.  Training sites that receive no public 
        program revenue shall be ineligible for funds available under 
        this paragraph. 
           (b) Fifty percent of the amount transferred according to 
        section 256B.69, subdivision 5c, paragraph (a), clause (2), 
        shall be distributed by the commissioner to the University of 
        Minnesota board of regents for the purposes described in 
        sections 137.38 to 137.40.  Of the remaining amount transferred 
        according to section 256B.69, subdivision 5c, paragraph (a), 
        clause (2), 24 percent of the amount shall be distributed by the 
        commissioner to the Hennepin County Medical Center for clinical 
        medical education.  The remaining 26 percent of the amount 
        transferred shall be distributed by the commissioner in 
        accordance with subdivision 7a.  If the federal approval is not 
        obtained for the matching funds under section 256B.69, 
        subdivision 5c, paragraph (a), clause (2), 100 percent of the 
        amount transferred under this paragraph shall be distributed by 
        the commissioner to the University of Minnesota board of regents 
        for the purposes described in sections 137.38 to 137.40.  
           (c) The amount transferred according to section 256B.69, 
        subdivision 5c, paragraph (a), clause (3), shall be distributed 
        by the commissioner upon receipt to the University of Minnesota 
        board of regents for the purposes of clinical graduate medical 
        education. 
           Sec. 3.  Minnesota Statutes 2001 Supplement, section 
        62J.694, subdivision 2a, is amended to read: 
           Subd. 2a.  [EXPENDITURE; ACADEMIC HEALTH CENTER ACCOUNT.] 
        (a) Beginning in January 2002, up to five percent of the fair 
        market value of the academic health center account is annually 
        appropriated to the board of regents for the costs of the 
        academic health center.  Appropriations are to be transferred 
        quarterly and may only be used for instructional costs of health 
        professional programs at the academic health center and for 
        interdisciplinary academic initiatives within the academic 
        health center, except as specified in paragraph (b). 
           (b) Of the amount appropriated under paragraph (a), 
        $4,850,000 shall be transferred annually to the commissioner of 
        health no later than April 15 of each year for distribution 
        under section 62J.692, subdivision 4. 
           Sec. 4.  Minnesota Statutes 2001 Supplement, section 
        256.01, subdivision 2, is amended to read: 
           Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
        section 241.021, subdivision 2, the commissioner of human 
        services shall: 
           (1) Administer and supervise all forms of public assistance 
        provided for by state law and other welfare activities or 
        services as are vested in the commissioner.  Administration and 
        supervision of human services activities or services includes, 
        but is not limited to, assuring timely and accurate distribution 
        of benefits, completeness of service, and quality program 
        management.  In addition to administering and supervising human 
        services activities vested by law in the department, the 
        commissioner shall have the authority to: 
           (a) require county agency participation in training and 
        technical assistance programs to promote compliance with 
        statutes, rules, federal laws, regulations, and policies 
        governing human services; 
           (b) monitor, on an ongoing basis, the performance of county 
        agencies in the operation and administration of human services, 
        enforce compliance with statutes, rules, federal laws, 
        regulations, and policies governing welfare services and promote 
        excellence of administration and program operation; 
           (c) develop a quality control program or other monitoring 
        program to review county performance and accuracy of benefit 
        determinations; 
           (d) require county agencies to make an adjustment to the 
        public assistance benefits issued to any individual consistent 
        with federal law and regulation and state law and rule and to 
        issue or recover benefits as appropriate; 
           (e) delay or deny payment of all or part of the state and 
        federal share of benefits and administrative reimbursement 
        according to the procedures set forth in section 256.017; 
           (f) make contracts with and grants to public and private 
        agencies and organizations, both profit and nonprofit, and 
        individuals, using appropriated funds; and 
           (g) enter into contractual agreements with federally 
        recognized Indian tribes with a reservation in Minnesota to the 
        extent necessary for the tribe to operate a federally approved 
        family assistance program or any other program under the 
        supervision of the commissioner.  The commissioner shall consult 
        with the affected county or counties in the contractual 
        agreement negotiations, if the county or counties wish to be 
        included, in order to avoid the duplication of county and tribal 
        assistance program services.  The commissioner may establish 
        necessary accounts for the purposes of receiving and disbursing 
        funds as necessary for the operation of the programs. 
           (2) Inform county agencies, on a timely basis, of changes 
        in statute, rule, federal law, regulation, and policy necessary 
        to county agency administration of the programs. 
           (3) Administer and supervise all child welfare activities; 
        promote the enforcement of laws protecting handicapped, 
        dependent, neglected and delinquent children, and children born 
        to mothers who were not married to the children's fathers at the 
        times of the conception nor at the births of the children; 
        license and supervise child-caring and child-placing agencies 
        and institutions; supervise the care of children in boarding and 
        foster homes or in private institutions; and generally perform 
        all functions relating to the field of child welfare now vested 
        in the state board of control. 
           (4) Administer and supervise all noninstitutional service 
        to handicapped persons, including those who are visually 
        impaired, hearing impaired, or physically impaired or otherwise 
        handicapped.  The commissioner may provide and contract for the 
        care and treatment of qualified indigent children in facilities 
        other than those located and available at state hospitals when 
        it is not feasible to provide the service in state hospitals. 
           (5) Assist and actively cooperate with other departments, 
        agencies and institutions, local, state, and federal, by 
        performing services in conformity with the purposes of Laws 
        1939, chapter 431. 
           (6) Act as the agent of and cooperate with the federal 
        government in matters of mutual concern relative to and in 
        conformity with the provisions of Laws 1939, chapter 431, 
        including the administration of any federal funds granted to the 
        state to aid in the performance of any functions of the 
        commissioner as specified in Laws 1939, chapter 431, and 
        including the promulgation of rules making uniformly available 
        medical care benefits to all recipients of public assistance, at 
        such times as the federal government increases its participation 
        in assistance expenditures for medical care to recipients of 
        public assistance, the cost thereof to be borne in the same 
        proportion as are grants of aid to said recipients. 
           (7) Establish and maintain any administrative units 
        reasonably necessary for the performance of administrative 
        functions common to all divisions of the department. 
           (8) Act as designated guardian of both the estate and the 
        person of all the wards of the state of Minnesota, whether by 
        operation of law or by an order of court, without any further 
        act or proceeding whatever, except as to persons committed as 
        mentally retarded.  For children under the guardianship of the 
        commissioner whose interests would be best served by adoptive 
        placement, the commissioner may contract with a licensed 
        child-placing agency or a Minnesota tribal social services 
        agency to provide adoption services.  A contract with a licensed 
        child-placing agency must be designed to supplement existing 
        county efforts and may not replace existing county programs, 
        unless the replacement is agreed to by the county board and the 
        appropriate exclusive bargaining representative or the 
        commissioner has evidence that child placements of the county 
        continue to be substantially below that of other counties.  
        Funds encumbered and obligated under an agreement for a specific 
        child shall remain available until the terms of the agreement 
        are fulfilled or the agreement is terminated. 
           (9) Act as coordinating referral and informational center 
        on requests for service for newly arrived immigrants coming to 
        Minnesota. 
           (10) The specific enumeration of powers and duties as 
        hereinabove set forth shall in no way be construed to be a 
        limitation upon the general transfer of powers herein contained. 
           (11) Establish county, regional, or statewide schedules of 
        maximum fees and charges which may be paid by county agencies 
        for medical, dental, surgical, hospital, nursing and nursing 
        home care and medicine and medical supplies under all programs 
        of medical care provided by the state and for congregate living 
        care under the income maintenance programs. 
           (12) Have the authority to conduct and administer 
        experimental projects to test methods and procedures of 
        administering assistance and services to recipients or potential 
        recipients of public welfare.  To carry out such experimental 
        projects, it is further provided that the commissioner of human 
        services is authorized to waive the enforcement of existing 
        specific statutory program requirements, rules, and standards in 
        one or more counties.  The order establishing the waiver shall 
        provide alternative methods and procedures of administration, 
        shall not be in conflict with the basic purposes, coverage, or 
        benefits provided by law, and in no event shall the duration of 
        a project exceed four years.  It is further provided that no 
        order establishing an experimental project as authorized by the 
        provisions of this section shall become effective until the 
        following conditions have been met: 
           (a) The secretary of health and human services of the 
        United States has agreed, for the same project, to waive state 
        plan requirements relative to statewide uniformity. 
           (b) A comprehensive plan, including estimated project 
        costs, shall be approved by the legislative advisory commission 
        and filed with the commissioner of administration.  
           (13) According to federal requirements, establish 
        procedures to be followed by local welfare boards in creating 
        citizen advisory committees, including procedures for selection 
        of committee members. 
           (14) Allocate federal fiscal disallowances or sanctions 
        which are based on quality control error rates for the aid to 
        families with dependent children program formerly codified in 
        sections 256.72 to 256.87, medical assistance, or food stamp 
        program in the following manner:  
           (a) One-half of the total amount of the disallowance shall 
        be borne by the county boards responsible for administering the 
        programs.  For the medical assistance and the AFDC program 
        formerly codified in sections 256.72 to 256.87, disallowances 
        shall be shared by each county board in the same proportion as 
        that county's expenditures for the sanctioned program are to the 
        total of all counties' expenditures for the AFDC program 
        formerly codified in sections 256.72 to 256.87, and medical 
        assistance programs.  For the food stamp program, sanctions 
        shall be shared by each county board, with 50 percent of the 
        sanction being distributed to each county in the same proportion 
        as that county's administrative costs for food stamps are to the 
        total of all food stamp administrative costs for all counties, 
        and 50 percent of the sanctions being distributed to each county 
        in the same proportion as that county's value of food stamp 
        benefits issued are to the total of all benefits issued for all 
        counties.  Each county shall pay its share of the disallowance 
        to the state of Minnesota.  When a county fails to pay the 
        amount due hereunder, the commissioner may deduct the amount 
        from reimbursement otherwise due the county, or the attorney 
        general, upon the request of the commissioner, may institute 
        civil action to recover the amount due. 
           (b) Notwithstanding the provisions of paragraph (a), if the 
        disallowance results from knowing noncompliance by one or more 
        counties with a specific program instruction, and that knowing 
        noncompliance is a matter of official county board record, the 
        commissioner may require payment or recover from the county or 
        counties, in the manner prescribed in paragraph (a), an amount 
        equal to the portion of the total disallowance which resulted 
        from the noncompliance, and may distribute the balance of the 
        disallowance according to paragraph (a).  
           (15) Develop and implement special projects that maximize 
        reimbursements and result in the recovery of money to the 
        state.  For the purpose of recovering state money, the 
        commissioner may enter into contracts with third parties.  Any 
        recoveries that result from projects or contracts entered into 
        under this paragraph shall be deposited in the state treasury 
        and credited to a special account until the balance in the 
        account reaches $1,000,000.  When the balance in the account 
        exceeds $1,000,000, the excess shall be transferred and credited 
        to the general fund.  All money in the account is appropriated 
        to the commissioner for the purposes of this paragraph. 
           (16) Have the authority to make direct payments to 
        facilities providing shelter to women and their children 
        according to section 256D.05, subdivision 3.  Upon the written 
        request of a shelter facility that has been denied payments 
        under section 256D.05, subdivision 3, the commissioner shall 
        review all relevant evidence and make a determination within 30 
        days of the request for review regarding issuance of direct 
        payments to the shelter facility.  Failure to act within 30 days 
        shall be considered a determination not to issue direct payments.
           (17) Have the authority to establish and enforce the 
        following county reporting requirements:  
           (a) The commissioner shall establish fiscal and statistical 
        reporting requirements necessary to account for the expenditure 
        of funds allocated to counties for human services programs.  
        When establishing financial and statistical reporting 
        requirements, the commissioner shall evaluate all reports, in 
        consultation with the counties, to determine if the reports can 
        be simplified or the number of reports can be reduced. 
           (b) The county board shall submit monthly or quarterly 
        reports to the department as required by the commissioner.  
        Monthly reports are due no later than 15 working days after the 
        end of the month.  Quarterly reports are due no later than 30 
        calendar days after the end of the quarter, unless the 
        commissioner determines that the deadline must be shortened to 
        20 calendar days to avoid jeopardizing compliance with federal 
        deadlines or risking a loss of federal funding.  Only reports 
        that are complete, legible, and in the required format shall be 
        accepted by the commissioner.  
           (c) If the required reports are not received by the 
        deadlines established in clause (b), the commissioner may delay 
        payments and withhold funds from the county board until the next 
        reporting period.  When the report is needed to account for the 
        use of federal funds and the late report results in a reduction 
        in federal funding, the commissioner shall withhold from the 
        county boards with late reports an amount equal to the reduction 
        in federal funding until full federal funding is received.  
           (d) A county board that submits reports that are late, 
        illegible, incomplete, or not in the required format for two out 
        of three consecutive reporting periods is considered 
        noncompliant.  When a county board is found to be noncompliant, 
        the commissioner shall notify the county board of the reason the 
        county board is considered noncompliant and request that the 
        county board develop a corrective action plan stating how the 
        county board plans to correct the problem.  The corrective 
        action plan must be submitted to the commissioner within 45 days 
        after the date the county board received notice of noncompliance.
           (e) The final deadline for fiscal reports or amendments to 
        fiscal reports is one year after the date the report was 
        originally due.  If the commissioner does not receive a report 
        by the final deadline, the county board forfeits the funding 
        associated with the report for that reporting period and the 
        county board must repay any funds associated with the report 
        received for that reporting period. 
           (f) The commissioner may not delay payments, withhold 
        funds, or require repayment under paragraph (c) or (e) if the 
        county demonstrates that the commissioner failed to provide 
        appropriate forms, guidelines, and technical assistance to 
        enable the county to comply with the requirements.  If the 
        county board disagrees with an action taken by the commissioner 
        under paragraph (c) or (e), the county board may appeal the 
        action according to sections 14.57 to 14.69. 
           (g) Counties subject to withholding of funds under 
        paragraph (c) or forfeiture or repayment of funds under 
        paragraph (e) shall not reduce or withhold benefits or services 
        to clients to cover costs incurred due to actions taken by the 
        commissioner under paragraph (c) or (e). 
           (18) Allocate federal fiscal disallowances or sanctions for 
        audit exceptions when federal fiscal disallowances or sanctions 
        are based on a statewide random sample for the foster care 
        program under title IV-E of the Social Security Act, United 
        States Code, title 42, in direct proportion to each county's 
        title IV-E foster care maintenance claim for that period. 
           (19) Be responsible for ensuring the detection, prevention, 
        investigation, and resolution of fraudulent activities or 
        behavior by applicants, recipients, and other participants in 
        the human services programs administered by the department. 
           (20) Require county agencies to identify overpayments, 
        establish claims, and utilize all available and cost-beneficial 
        methodologies to collect and recover these overpayments in the 
        human services programs administered by the department. 
           (21) Have the authority to administer a drug rebate program 
        for drugs purchased pursuant to the prescription drug program 
        established under section 256.955 after the beneficiary's 
        satisfaction of any deductible established in the program.  The 
        commissioner shall require a rebate agreement from all 
        manufacturers of covered drugs as defined in section 256B.0625, 
        subdivision 13.  Rebate agreements for prescription drugs 
        delivered on or after July 1, 2002, must include rebates for 
        individuals covered under the prescription drug program who are 
        under 65 years of age.  For each drug, the amount of the rebate 
        shall be equal to the basic rebate as defined for purposes of 
        the federal rebate program in United States Code, title 42, 
        section 1396r-8(c)(1).  This basic rebate shall be applied to 
        single-source and multiple-source drugs.  The manufacturers must 
        provide full payment within 30 days of receipt of the state 
        invoice for the rebate within the terms and conditions used for 
        the federal rebate program established pursuant to section 1927 
        of title XIX of the Social Security Act.  The manufacturers must 
        provide the commissioner with any information necessary to 
        verify the rebate determined per drug.  The rebate program shall 
        utilize the terms and conditions used for the federal rebate 
        program established pursuant to section 1927 of title XIX of the 
        Social Security Act. 
           (22) Have the authority to administer the federal drug 
        rebate program for drugs purchased under the medical assistance 
        program as allowed by section 1927 of title XIX of the Social 
        Security Act and according to the terms and conditions of 
        section 1927.  Rebates shall be collected for all drugs that 
        have been dispensed or administered in an outpatient setting and 
        that are from manufacturers who have signed a rebate agreement 
        with the United States Department of Health and Human Services. 
           (23) Have the authority to administer a supplemental drug 
        rebate program for drugs purchased under the medical assistance 
        program and under the prescription drug program established in 
        section 256.955.  The commissioner may enter into supplemental 
        rebate contracts with pharmaceutical manufacturers and may 
        require prior authorization for drugs that are from 
        manufacturers that have not signed a supplemental rebate 
        contract.  Prior authorization of drugs shall be subject to the 
        provisions of section 256B.0625, subdivision 13, paragraph (b). 
           (24) Operate the department's communication systems account 
        established in Laws 1993, First Special Session chapter 1, 
        article 1, section 2, subdivision 2, to manage shared 
        communication costs necessary for the operation of the programs 
        the commissioner supervises.  A communications account may also 
        be established for each regional treatment center which operates 
        communications systems.  Each account must be used to manage 
        shared communication costs necessary for the operations of the 
        programs the commissioner supervises.  The commissioner may 
        distribute the costs of operating and maintaining communication 
        systems to participants in a manner that reflects actual usage. 
        Costs may include acquisition, licensing, insurance, 
        maintenance, repair, staff time and other costs as determined by 
        the commissioner.  Nonprofit organizations and state, county, 
        and local government agencies involved in the operation of 
        programs the commissioner supervises may participate in the use 
        of the department's communications technology and share in the 
        cost of operation.  The commissioner may accept on behalf of the 
        state any gift, bequest, devise or personal property of any 
        kind, or money tendered to the state for any lawful purpose 
        pertaining to the communication activities of the department.  
        Any money received for this purpose must be deposited in the 
        department's communication systems accounts.  Money collected by 
        the commissioner for the use of communication systems must be 
        deposited in the state communication systems account and is 
        appropriated to the commissioner for purposes of this section. 
           (24) (25) Receive any federal matching money that is made 
        available through the medical assistance program for the 
        consumer satisfaction survey.  Any federal money received for 
        the survey is appropriated to the commissioner for this 
        purpose.  The commissioner may expend the federal money received 
        for the consumer satisfaction survey in either year of the 
        biennium. 
           (25) (26) Incorporate cost reimbursement claims from First 
        Call Minnesota and Greater Twin Cities United Way into the 
        federal cost reimbursement claiming processes of the department 
        according to federal law, rule, and regulations.  Any 
        reimbursement received is appropriated to the commissioner and 
        shall be disbursed to First Call Minnesota and Greater Twin 
        Cities United Way according to normal department payment 
        schedules. 
           (26) (27) Develop recommended standards for foster care 
        homes that address the components of specialized therapeutic 
        services to be provided by foster care homes with those services.
           Sec. 5.  Minnesota Statutes 2001 Supplement, section 
        256.969, subdivision 3a, is amended to read: 
           Subd. 3a.  [PAYMENTS.] (a) Acute care hospital billings 
        under the medical assistance program must not be submitted until 
        the recipient is discharged.  However, the commissioner shall 
        establish monthly interim payments for inpatient hospitals that 
        have individual patient lengths of stay over 30 days regardless 
        of diagnostic category.  Except as provided in section 256.9693, 
        medical assistance reimbursement for treatment of mental illness 
        shall be reimbursed based on diagnostic classifications.  
        Individual hospital payments established under this section and 
        sections 256.9685, 256.9686, and 256.9695, in addition to third 
        party and recipient liability, for discharges occurring during 
        the rate year shall not exceed, in aggregate, the charges for 
        the medical assistance covered inpatient services paid for the 
        same period of time to the hospital.  This payment limitation 
        shall be calculated separately for medical assistance and 
        general assistance medical care services.  The limitation on 
        general assistance medical care shall be effective for 
        admissions occurring on or after July 1, 1991.  Services that 
        have rates established under subdivision 11 or 12, must be 
        limited separately from other services.  After consulting with 
        the affected hospitals, the commissioner may consider related 
        hospitals one entity and may merge the payment rates while 
        maintaining separate provider numbers.  The operating and 
        property base rates per admission or per day shall be derived 
        from the best Medicare and claims data available when rates are 
        established.  The commissioner shall determine the best Medicare 
        and claims data, taking into consideration variables of recency 
        of the data, audit disposition, settlement status, and the 
        ability to set rates in a timely manner.  The commissioner shall 
        notify hospitals of payment rates by December 1 of the year 
        preceding the rate year.  The rate setting data must reflect the 
        admissions data used to establish relative values.  Base year 
        changes from 1981 to the base year established for the rate year 
        beginning January 1, 1991, and for subsequent rate years, shall 
        not be limited to the limits ending June 30, 1987, on the 
        maximum rate of increase under subdivision 1.  The commissioner 
        may adjust base year cost, relative value, and case mix index 
        data to exclude the costs of services that have been 
        discontinued by the October 1 of the year preceding the rate 
        year or that are paid separately from inpatient services.  
        Inpatient stays that encompass portions of two or more rate 
        years shall have payments established based on payment rates in 
        effect at the time of admission unless the date of admission 
        preceded the rate year in effect by six months or more.  In this 
        case, operating payment rates for services rendered during the 
        rate year in effect and established based on the date of 
        admission shall be adjusted to the rate year in effect by the 
        hospital cost index. 
           (b) For fee-for-service admissions occurring on or after 
        July 1, 2002, the total payment, before third-party liability 
        and spenddown, made to hospitals for inpatient services is 
        reduced by .5 percent from the current statutory rates. 
           Sec. 6.  Minnesota Statutes 2001 Supplement, section 
        256B.056, subdivision 3, is amended to read: 
           Subd. 3.  [ASSET LIMITATIONS FOR ELDERLY AND DISABLED 
        INDIVIDUALS.] 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.  The accumulation of the clothing and personal 
        needs allowance according 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 excluded under the supplemental security income 
        program for aged, blind, and disabled persons, with the 
        following exceptions: 
           (a) Household goods and personal effects are not considered.
           (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. 
           (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.  Burial expenses funded by annuity contracts or life 
        insurance policies must irrevocably designate the individual's 
        estate as contingent beneficiary to the extent proceeds are not 
        used for payment of selected burial expenses. 
           (e) Effective upon federal approval, for a person who no 
        longer qualifies as an employed person with a disability due to 
        loss of earnings, assets allowed while eligible for medical 
        assistance under section 256B.057, subdivision 9, are not 
        considered for 12 months, beginning with the first month of 
        ineligibility as an employed person with a disability, to the 
        extent that the person's total assets remain within the allowed 
        limits of section 256B.057, subdivision 9, paragraph (b). 
           Sec. 7.  Minnesota Statutes 2000, section 256B.059, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
        section and section 256B.0595, the terms defined in this 
        subdivision have the meanings given them. 
           (b) "Community spouse" means the spouse of an 
        institutionalized spouse. 
           (c) "Spousal share" means one-half of the total value of 
        all assets, to the extent that either the institutionalized 
        spouse or the community spouse had an ownership interest at the 
        time of institutionalization. 
           (d) "Assets otherwise available to the community spouse" 
        means assets individually or jointly owned by the community 
        spouse, other than assets excluded by subdivision 5, paragraph 
        (c). 
           (e) "Community spouse asset allowance" is the value of 
        assets that can be transferred under subdivision 3. 
           (f) "Institutionalized spouse" means a person who is: 
           (1) in a hospital, nursing facility, or intermediate care 
        facility for persons with mental retardation, or receiving home 
        and community-based services under section 256B.0915 or 256B.49, 
        and is expected to remain in the facility or institution or 
        receive the home and community-based services for at least 30 
        consecutive days; and 
           (2) married to a person who is not in a hospital, nursing 
        facility, or intermediate care facility for persons with mental 
        retardation, and is not receiving home and community-based 
        services under section 256B.0915 or 256B.49. 
           (g) "For the sole benefit of" means no other individual or 
        entity can benefit in any way from the assets or income at the 
        time of a transfer or at any time in the future. 
           Sec. 8.  Minnesota Statutes 2000, section 256B.059, 
        subdivision 3, is amended to read: 
           Subd. 3.  [COMMUNITY SPOUSE ASSET ALLOWANCE.] An 
        institutionalized spouse may transfer assets to the community 
        spouse solely for the sole benefit of the community spouse.  
        Except for increased amounts allowable under subdivision 4, the 
        maximum amount of assets allowed to be transferred is the amount 
        which, when added to the assets otherwise available to the 
        community spouse, is as follows:  
           (1) prior to July 1, 1994, the greater of: 
           (i) $14,148; 
           (ii) the lesser of the spousal share or $70,740; or 
           (iii) the amount required by court order to be paid to the 
        community spouse; and 
           (2) for persons whose date of initial determination of 
        eligibility for medical assistance following their first 
        continuous period of institutionalization occurs on or after 
        July 1, 1994, the greater of: 
           (i) $20,000; 
           (ii) the lesser of the spousal share or $70,740; or 
           (iii) the amount required by court order to be paid to the 
        community spouse. 
           If the assets available to the community spouse are already 
        at the limit permissible under this section, or the higher limit 
        attributable to increases under subdivision 4, no assets may be 
        transferred from the institutionalized spouse to the community 
        spouse.  The transfer must be made as soon as practicable after 
        the date the institutionalized spouse is determined eligible for 
        medical assistance, or within the amount of time needed for any 
        court order required for the transfer.  On January 1, 1994, and 
        every January 1 thereafter, the limits in this subdivision shall 
        be adjusted by the same percentage change in the consumer price 
        index for all urban consumers (all items; United States city 
        average) between the two previous Septembers.  These adjustments 
        shall also be applied to the limits in subdivision 5. 
           Sec. 9.  Minnesota Statutes 2000, section 256B.059, 
        subdivision 5, is amended to read: 
           Subd. 5.  [ASSET AVAILABILITY.] (a) At the time of initial 
        determination of eligibility for medical assistance benefits 
        following the first continuous period of institutionalization on 
        or after October 1, 1989, 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 
        following amount for the community spouse: 
           (1) prior to July 1, 1994, the greater of:  
           (i) $14,148; 
           (ii) the lesser of the spousal share or $70,740; or 
           (iii) the amount required by court order to be paid to the 
        community spouse; 
           (2) for persons whose date of initial determination of 
        eligibility for medical assistance following their first 
        continuous period of institutionalization occurs on or after 
        July 1, 1994, the greater of:  
           (i) $20,000; 
           (ii) the lesser of the spousal share or $70,740; or 
           (iii) the amount required by court order to be paid to the 
        community spouse.  
        The value of assets transferred for the sole benefit of the 
        community spouse under section 256B.0595, subdivision 4, in 
        combination with other assets available to the community spouse 
        under this section, cannot exceed the limit for the community 
        spouse asset allowance determined under subdivision 3 or 4.  
        Assets that exceed this allowance shall be considered available 
        to the institutionalized spouse whether or not converted to 
        income.  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 3; (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 paragraph (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 the supplemental security income program. 
           [EFFECTIVE DATE.] This section is effective July 1, 2002. 
           Sec. 10.  Minnesota Statutes 2001 Supplement, section 
        256B.0595, subdivision 1, is amended to read: 
           Subdivision 1.  [PROHIBITED TRANSFERS.] (a) For transfers 
        of assets made on or before August 10, 1993, 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 the 
        supplemental security program, 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) Effective for transfers made after August 10, 1993, a 
        person, a person's spouse, or any person, court, or 
        administrative body with legal authority to act in place of, on 
        behalf of, at the direction of, or upon the request of the 
        person or person's spouse, may not give away, sell, or dispose 
        of, for less than fair market value, any asset or interest 
        therein, except assets other than the homestead that are 
        excluded under the supplemental security income program, for the 
        purpose of establishing or maintaining medical assistance 
        eligibility.  For purposes of determining eligibility for 
        long-term care services, any transfer of such assets within 36 
        months before or any time after an institutionalized person 
        applies for medical assistance, or 36 months before or any time 
        after a medical assistance recipient becomes institutionalized, 
        for less than fair market value may be considered.  Any such 
        transfer is presumed to have been made for the purpose of 
        establishing or maintaining medical assistance eligibility and 
        the person is ineligible for long-term care services for the 
        period of time determined under subdivision 2, unless the person 
        furnishes convincing evidence to establish that the transaction 
        was exclusively for another purpose, or unless the transfer is 
        permitted under subdivision 3 or 4.  Notwithstanding the 
        provisions of this paragraph, in the case of payments from a 
        trust or portions of a trust that are considered transfers of 
        assets under federal law, any transfers made within 60 months 
        before or any time after an institutionalized person applies for 
        medical assistance and within 60 months before or any time after 
        a medical assistance recipient becomes institutionalized, may be 
        considered. 
           (c) This section applies to transfers, for less than fair 
        market value, of income or assets, including assets that are 
        considered income in the month received, such as inheritances, 
        court settlements, and retroactive benefit payments or income to 
        which the person or the person's spouse is entitled but does not 
        receive due to action by the person, the person's spouse, or any 
        person, court, or administrative body with legal authority to 
        act in place of, on behalf of, at the direction of, or upon the 
        request of the person or the person's spouse.  
           (d) 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. 
           (e) This section applies to the portion of any asset or 
        interest that a person, a person's spouse, or any person, court, 
        or administrative body with legal authority to act in place of, 
        on behalf of, at the direction of, or upon the request of the 
        person or the person's spouse, transfers to any annuity that 
        exceeds the value of the benefit likely to be returned to the 
        person or spouse while alive, based on 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.  This section applies to an annuity described in this 
        paragraph purchased on or after March 1, 2002, that: 
           (1) is not purchased from an insurance company or financial 
        institution that is subject to licensing or regulation by the 
        Minnesota department of commerce or a similar regulatory agency 
        of another state; 
           (2) does not pay out principal and interest in equal 
        monthly installments; or 
           (3) does not begin payment at the earliest possible date 
        after annuitization.  
           (f) For purposes of this section, long-term care services 
        include services in a nursing facility, services that are 
        eligible for payment according to section 256B.0625, subdivision 
        2, because they are provided in a swing bed, intermediate care 
        facility for persons with mental retardation, and home and 
        community-based services provided pursuant to sections 
        256B.0915, 256B.092, and 256B.49.  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 in a swing bed, or intermediate care facility for 
        persons with mental retardation or who is receiving home and 
        community-based services under sections 256B.0915, 256B.092, and 
        256B.49. 
           Sec. 11.  Minnesota Statutes 2001 Supplement, section 
        256B.0595, subdivision 2, is amended to read: 
           Subd. 2.  [PERIOD OF INELIGIBILITY.] (a) For any 
        uncompensated transfer occurring on or before August 10, 1993, 
        the number of months of ineligibility for long-term care 
        services shall be the lesser of 30 months, or the uncompensated 
        transfer amount divided by the average medical assistance rate 
        for nursing facility services in the state in effect on the date 
        of application.  The amount used to calculate the average 
        medical assistance payment rate shall be adjusted each July 1 to 
        reflect payment rates for the previous calendar year.  The 
        period of ineligibility begins with the month in which the 
        assets were transferred.  If the transfer was not reported to 
        the local agency at the time of application, and the applicant 
        received long-term care services during what would have been the 
        period of ineligibility if the transfer had been reported, a 
        cause of action exists against the transferee for the cost of 
        long-term care services provided during the period of 
        ineligibility, or for the uncompensated amount of the transfer, 
        whichever is less.  The action may be brought by the state or 
        the local agency responsible for providing medical assistance 
        under chapter 256G.  The uncompensated transfer amount is the 
        fair market value of the asset at the time it was given away, 
        sold, or disposed of, less the amount of compensation received.  
           (b) For uncompensated transfers made after August 10, 1993, 
        the number of months of ineligibility for long-term care 
        services shall be the total uncompensated value of the resources 
        transferred divided by the average medical assistance rate for 
        nursing facility services in the state in effect on the date of 
        application.  The amount used to calculate the average medical 
        assistance payment rate shall be adjusted each July 1 to reflect 
        payment rates for the previous calendar year.  The period of 
        ineligibility begins with the month in which the assets were 
        transferred except that if one or more uncompensated transfers 
        are made during a period of ineligibility, the total assets 
        transferred during the ineligibility period shall be combined 
        and a penalty period calculated to begin in the month the first 
        uncompensated transfer was made.  If the transfer was not 
        reported to the local agency at the time of application, and the 
        applicant received medical assistance services during what would 
        have been the period of ineligibility if the transfer had been 
        reported, a cause of action exists against the transferee for 
        the cost of medical assistance services provided during the 
        period of ineligibility, or for the uncompensated amount of the 
        transfer, whichever is less.  The action may be brought by the 
        state or the local agency responsible for providing medical 
        assistance under chapter 256G.  The uncompensated transfer 
        amount is the fair market value of the asset at the time it was 
        given away, sold, or disposed of, less the amount of 
        compensation received.  Effective for transfers made on or after 
        March 1, 1996, involving persons who apply for medical 
        assistance on or after April 13, 1996, no cause of action exists 
        for a transfer unless: 
           (1) the transferee knew or should have known that the 
        transfer was being made by a person who was a resident of a 
        long-term care facility or was receiving that level of care in 
        the community at the time of the transfer; 
           (2) the transferee knew or should have known that the 
        transfer was being made to assist the person to qualify for or 
        retain medical assistance eligibility; or 
           (3) the transferee actively solicited the transfer with 
        intent to assist the person to qualify for or retain eligibility 
        for medical assistance.  
           (c) If a calculation of a penalty period results in a 
        partial month, payments for long-term care services shall be 
        reduced in an amount equal to the fraction, except that in 
        calculating the value of uncompensated transfers, if the total 
        value of all uncompensated transfers made in a month not 
        included in an existing penalty period does not 
        exceed $500 $200, then such transfers shall be disregarded for 
        each month prior to the month of application for or during 
        receipt of medical assistance. 
           Sec. 12.  Minnesota Statutes 2000, section 256B.0595, 
        subdivision 4, is amended to read: 
           Subd. 4.  [OTHER EXCEPTIONS TO TRANSFER PROHIBITION.] An 
        institutionalized person who has made, or whose spouse has made 
        a transfer prohibited by subdivision 1, is not ineligible for 
        long-term care services if one of the following conditions 
        applies: 
           (1) the assets were transferred to the individual's spouse 
        or to another for the sole benefit of the spouse; or 
           (2) the institutionalized spouse, prior to being 
        institutionalized, transferred assets to a spouse, provided that 
        the spouse to whom the assets were transferred does not then 
        transfer those assets to another person for less than fair 
        market value.  (At the time when one spouse is 
        institutionalized, assets must be allocated between the spouses 
        as provided under section 256B.059); or 
           (3) the assets were transferred to the individual's child 
        who is blind or permanently and totally disabled as determined 
        in the supplemental security income program; or 
           (4) a satisfactory showing is made that the individual 
        intended to dispose of the assets either at fair market value or 
        for other valuable consideration; or 
           (5) the local agency determines that denial of eligibility 
        for long-term care services would work an undue hardship and 
        grants a waiver of a penalty resulting from a transfer for less 
        than fair market value based on an imminent threat to the 
        individual's health and well-being.  Whenever an applicant or 
        recipient is denied eligibility because of a transfer for less 
        than fair market value, the local agency shall notify the 
        applicant or recipient that the applicant or recipient may 
        request a waiver of the penalty if the denial of eligibility 
        will cause undue hardship.  In evaluating a waiver, the local 
        agency shall take into account whether the individual was the 
        victim of financial exploitation, whether the individual has 
        made reasonable efforts to recover the transferred property or 
        resource, and other factors relevant to a determination of 
        hardship.  If the local agency does not approve a hardship 
        waiver, the local agency shall issue a written notice to the 
        individual stating the reasons for the denial and the process 
        for appealing the local agency's decision.  When a waiver is 
        granted, a cause of action exists against the person to whom the 
        assets were transferred for that portion of long-term care 
        services granted within: 
           (i) 30 months of a transfer made on or before August 10, 
        1993; 
           (ii) 60 months of a transfer if the assets were transferred 
        after August 30, 1993, to a trust or portion of a trust that is 
        considered a transfer of assets under federal law; or 
           (iii) 36 months of a transfer if transferred in any other 
        manner after August 10, 1993, 
        or the amount of the uncompensated transfer, whichever is less, 
        together with the costs incurred due to the action.  The action 
        shall be brought by the state unless the state delegates this 
        responsibility to the local agency responsible for providing 
        medical assistance under this chapter; or 
           (6) for transfers occurring after August 10, 1993, the 
        assets were transferred by the person or person's spouse:  (i) 
        into a trust established solely for the sole benefit of a son or 
        daughter of any age who is blind or disabled as defined by the 
        Supplemental Security Income program; or (ii) into a trust 
        established solely for the sole benefit of an individual who is 
        under 65 years of age who is disabled as defined by the 
        Supplemental Security Income program. 
           "For the sole benefit of" has the meaning found in section 
        256B.059, subdivision 1. 
           [EFFECTIVE DATE.] This section is effective July 1, 2002. 
           Sec. 13.  Minnesota Statutes 2001 Supplement, section 
        256B.0625, subdivision 13, is amended to read: 
           Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
        except for fertility drugs when specifically used to enhance 
        fertility, 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, vitamins for children under the 
        age of seven and pregnant or nursing women, and 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; 
           (iii) anorectics, except that medically necessary 
        anorectics shall be covered for a recipient previously diagnosed 
        as having pickwickian syndrome and currently diagnosed as having 
        diabetes and being morbidly obese; 
           (iv) drugs for which medical value has not been 
        established; and 
           (v) drugs from manufacturers who have not signed a rebate 
        agreement with the Department of Health and Human Services 
        pursuant to section 1927 of title XIX of the Social Security Act.
           The commissioner shall publish conditions for prohibiting 
        payment for specific drugs after considering the formulary 
        committee's recommendations.  An honorarium of $100 per meeting 
        and reimbursement for mileage shall be paid to each committee 
        member in attendance.  
           (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 $3.65, except that 
        the dispensing fee for intravenous solutions which must be 
        compounded by the pharmacist shall be $8 per bag, $14 per bag 
        for cancer chemotherapy products, and $30 per bag for total 
        parenteral nutritional products dispensed in one liter 
        quantities, or $44 per bag for total parenteral nutritional 
        products dispensed in quantities greater than one liter.  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, except that where a drug has 
        had its wholesale price reduced as a result of the actions of 
        the National Association of Medicaid Fraud Control Units, the 
        estimated actual acquisition cost shall be the reduced average 
        wholesale price, without the nine percent deduction.  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.  The 
        commissioner shall set maximum allowable costs for multisource 
        drugs that are not on the federal upper limit list as described 
        in United States Code, title 42, chapter 7, section 1396r-8(e), 
        the Social Security Act, and Code of Federal Regulations, title 
        42, part 447, section 447.332.  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. 
           (d) For purposes of this subdivision, "multisource drugs" 
        means covered outpatient drugs, excluding innovator multisource 
        drugs for which there are two or more drug products, which: 
           (1) are related as therapeutically equivalent under the 
        Food and Drug Administration's most recent publication of 
        "Approved Drug Products with Therapeutic Equivalence 
        Evaluations"; 
           (2) are pharmaceutically equivalent and bioequivalent as 
        determined by the Food and Drug Administration; and 
           (3) are sold or marketed in Minnesota. 
        "Innovator multisource drug" means a multisource drug that was 
        originally marketed under an original new drug application 
        approved by the Food and Drug Administration. 
           (e) 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 and on cost 
        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 on 
        program costs, 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. 
           (f) The basis for determining the amount of payment for 
        drugs administered in an outpatient setting shall be the lower 
        of the usual and customary cost submitted by the provider; the 
        average wholesale price minus five percent; or the maximum 
        allowable cost set by the federal government under United States 
        Code, title 42, chapter 7, section 1396r-8(e), and Code of 
        Federal Regulations, title 42, section 447.332, or by the 
        commissioner under paragraph (c). 
           Sec. 14.  Minnesota Statutes 2000, section 256B.32, is 
        amended to read: 
           256B.32 [FACILITY FEE FOR OUTPATIENT HOSPITAL EMERGENCY 
        ROOM AND CLINIC VISITS.] 
           (a) The commissioner shall establish a facility fee payment 
        mechanism that will pay a facility fee to all enrolled 
        outpatient hospitals for each emergency room or outpatient 
        clinic visit provided on or after July 1, 1989.  This payment 
        mechanism may not result in an overall increase in outpatient 
        payment rates.  This section does not apply to federally 
        mandated maximum payment limits, department approved program 
        packages, or services billed using a nonoutpatient hospital 
        provider number. 
           (b) For fee-for-service services provided on or after July 
        1, 2002, the total payment, before third-party liability and 
        spenddown, made to hospitals for outpatient hospital facility 
        services is reduced by .5 percent from the current statutory 
        rates. 
           Sec. 15.  Minnesota Statutes 2000, section 256B.69, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [MANAGED CARE CONTRACTS.] (a) Managed care 
        contracts under this section and sections 256L.12 and 256D.03, 
        shall be entered into or renewed on a calendar year basis 
        beginning January 1, 1996.  Managed care contracts which were in 
        effect on June 30, 1995, and set to renew on July 1, 1995, shall 
        be renewed for the period July 1, 1995 through December 31, 1995 
        at the same terms that were in effect on June 30, 1995. 
           (b) A prepaid health plan providing covered health services 
        for eligible persons pursuant to chapters 256B, 256D, and 256L, 
        is responsible for complying with the terms of its contract with 
        the commissioner.  Requirements applicable to managed care 
        programs under chapters 256B, 256D, and 256L, established after 
        the effective date of a contract with the commissioner take 
        effect when the contract is next issued or renewed. 
           (c) Effective for services rendered on or after January 1, 
        2003, the commissioner shall withhold five percent of managed 
        care plan payments under this section for the prepaid medical 
        assistance and general assistance medical care programs pending 
        completion of performance targets.  The withheld funds will be 
        returned no sooner than July of the following year if 
        performance targets in the contract are achieved.  The 
        commissioner may exclude special demonstration projects under 
        subdivision 23. 
           Sec. 16.  Minnesota Statutes 2001 Supplement, section 
        256B.69, subdivision 5b, is amended to read: 
           Subd. 5b.  [PROSPECTIVE REIMBURSEMENT RATES.] (a) For 
        prepaid medical assistance and general assistance medical care 
        program contract rates set by the commissioner under subdivision 
        5 and effective on or after January 1, 1998 2003, capitation 
        rates for nonmetropolitan counties shall on a weighted average 
        be no less than 88 87 percent of the capitation rates for 
        metropolitan counties, excluding Hennepin county.  The 
        commissioner shall make a pro rata adjustment in capitation 
        rates paid to counties other than nonmetropolitan counties in 
        order to make this provision budget neutral.  
           (b) For prepaid medical assistance program contract rates 
        set by the commissioner under subdivision 5 and effective on or 
        after January 1, 2001, capitation rates for nonmetropolitan 
        counties shall, on a weighted average, be no less than 89 
        percent of the capitation rates for metropolitan counties, 
        excluding Hennepin county. 
           (c) This subdivision shall not affect the nongeographically 
        based risk adjusted rates established under section 62Q.03, 
        subdivision 5a. 
           Sec. 17.  Minnesota Statutes 2001 Supplement, section 
        256B.69, subdivision 5c, is amended to read: 
           Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH FUND.] (a) The 
        commissioner of human services shall transfer each year to the 
        medical education and research fund established under section 
        62J.692, the following: 
           (1) an amount equal to the reduction in the prepaid medical 
        assistance and prepaid general assistance medical care payments 
        as specified in this clause.  Until January 1, 2002, the county 
        medical assistance and general assistance medical care 
        capitation base rate prior to plan specific adjustments and 
        after the regional rate adjustments under section 256B.69, 
        subdivision 5b, is reduced 6.3 percent for Hennepin county, two 
        percent for the remaining metropolitan counties, and no 
        reduction for nonmetropolitan Minnesota counties; and after 
        January 1, 2002, the county medical assistance and general 
        assistance medical care capitation base rate prior to plan 
        specific adjustments is reduced 6.3 percent for Hennepin county, 
        two percent for the remaining metropolitan counties, and 1.6 
        percent for nonmetropolitan Minnesota counties.  Nursing 
        facility and elderly waiver payments and demonstration project 
        payments operating under subdivision 23 are excluded from this 
        reduction.  The amount calculated under this clause shall not be 
        adjusted for periods already paid due to subsequent changes to 
        the capitation payments; and 
           (2) beginning July 1, 2001, $2,537,000 from the capitation 
        rates paid under this section plus any federal matching funds on 
        this amount; 
           (3) beginning July 1, 2002, an additional $12,700,000 from 
        the capitation rates paid under this section; and 
           (4) beginning July 1, 2003, an additional $4,700,000 from 
        the capitation rates paid under this section. 
           (b) This subdivision shall be effective upon approval of a 
        federal waiver which allows federal financial participation in 
        the medical education and research fund. 
           Sec. 18.  Minnesota Statutes 2000, section 256B.69, is 
        amended by adding a subdivision to read: 
           Subd. 5f.  [CAPITATION RATES.] Beginning July 1, 2002, the 
        capitation rates paid under this section are increased by 
        $12,700,000 per year.  Beginning July 1, 2003, the capitation 
        rates paid under this section are increased by $4,700,000 per 
        year. 
           Sec. 19.  Minnesota Statutes 2000, section 256B.69, is 
        amended by adding a subdivision to read: 
           Subd. 5g.  [PAYMENT FOR COVERED SERVICES.] For services 
        rendered on or after January 1, 2003, the total payment made to 
        managed care plans for providing covered services under the 
        medical assistance and general assistance medical care programs 
        is reduced by .5 percent from their current statutory rates.  
        This provision excludes payments for nursing home services, home 
        and community-based waivers, and payments to demonstration 
        projects for persons with disabilities. 
           Sec. 20.  Minnesota Statutes 2001 Supplement, section 
        256B.75, is amended to read: 
           256B.75 [HOSPITAL OUTPATIENT REIMBURSEMENT.] 
           (a) 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.  Effective for services rendered on or after 
        January 1, 2000, payment rates for nonsurgical outpatient 
        hospital facility fees and emergency room facility fees shall be 
        increased by eight percent over the rates in effect on December 
        31, 1999, 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. 
           (b) Notwithstanding paragraph (a), payment for outpatient, 
        emergency, and ambulatory surgery hospital facility fee services 
        for critical access hospitals designated under section 144.1483, 
        clause (11), shall be paid on a cost-based payment system that 
        is based on the cost-finding methods and allowable costs of the 
        Medicare program. 
           (c) Effective for services provided on or after July 1, 
        2002 2003, rates that are based on the Medicare outpatient 
        prospective payment system shall be replaced by a budget neutral 
        prospective payment system that is derived using medical 
        assistance data.  The commissioner shall provide a proposal to 
        the 2002 2003 legislature to define and implement this provision.
           (d) For fee-for-service services provided on or after July 
        1, 2002, the total payment, before third-party liability and 
        spenddown, made to hospitals for outpatient hospital facility 
        services is reduced by .5 percent from the current statutory 
        rate. 
           Sec. 21.  Minnesota Statutes 2000, section 256L.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL REQUIREMENTS.] (a) Children 
        enrolled in the original children's health plan as of September 
        30, 1992, children who enrolled in the MinnesotaCare program 
        after September 30, 1992, pursuant to Laws 1992, chapter 549, 
        article 4, section 17, and children who have family gross 
        incomes that are equal to or less than 150 175 percent of the 
        federal poverty guidelines are eligible without meeting the 
        requirements of subdivision 2, as long as they maintain 
        continuous coverage in the MinnesotaCare program or medical 
        assistance.  Children who apply for MinnesotaCare on or after 
        the implementation date of the employer-subsidized health 
        coverage program as described in Laws 1998, chapter 407, article 
        5, section 45, who have family gross incomes that are equal to 
        or less than 150 175 percent of the federal poverty guidelines, 
        must meet the requirements of subdivision 2 to be eligible for 
        MinnesotaCare. 
           (b) Families enrolled in MinnesotaCare under section 
        256L.04, subdivision 1, whose income increases above 275 percent 
        of the federal poverty guidelines, are no longer eligible for 
        the program and shall be disenrolled by the commissioner.  
        Individuals enrolled in MinnesotaCare under section 256L.04, 
        subdivision 7, whose income increases above 175 percent of the 
        federal poverty guidelines are no longer eligible for the 
        program and shall be disenrolled by the commissioner.  For 
        persons disenrolled under this subdivision, MinnesotaCare 
        coverage terminates the last day of the calendar month following 
        the month in which the commissioner determines that the income 
        of a family or individual exceeds program income limits.  
           (c) Notwithstanding paragraph (b), individuals and families 
        may remain enrolled in MinnesotaCare if ten percent of their 
        annual income is less than the annual premium for a policy with 
        a $500 deductible available through the Minnesota comprehensive 
        health association.  Individuals and families who are no longer 
        eligible for MinnesotaCare under this subdivision shall be given 
        an 18-month notice period from the date that ineligibility is 
        determined before disenrollment.  
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 22.  Minnesota Statutes 2000, section 256L.07, 
        subdivision 3, is amended to read: 
           Subd. 3.  [OTHER HEALTH COVERAGE.] (a) Families and 
        individuals enrolled in the MinnesotaCare program must have no 
        health coverage while enrolled or for at least four months prior 
        to application and renewal.  Children enrolled in the original 
        children's health plan and children in families with income 
        equal to or less than 150 175 percent of the federal poverty 
        guidelines, who have other health insurance, are eligible if the 
        coverage: 
           (1) lacks two or more of the following: 
           (i) basic hospital insurance; 
           (ii) medical-surgical insurance; 
           (iii) prescription drug coverage; 
           (iv) dental coverage; or 
           (v) vision coverage; 
           (2) requires a deductible of $100 or more per person per 
        year; or 
           (3) lacks coverage because the child has exceeded the 
        maximum coverage for a particular diagnosis or the policy 
        excludes a particular diagnosis. 
           The commissioner may change this eligibility criterion for 
        sliding scale premiums in order to remain within the limits of 
        available appropriations.  The requirement of no health coverage 
        does not apply to newborns. 
           (b) Medical assistance, general assistance medical care, 
        and civilian health and medical program of the uniformed 
        service, CHAMPUS, are not considered insurance or health 
        coverage for purposes of the four-month requirement described in 
        this subdivision. 
           (c) For purposes of this subdivision, Medicare Part A or B 
        coverage under title XVIII of the Social Security Act, United 
        States Code, title 42, sections 1395c to 1395w-4, is considered 
        health coverage.  An applicant or enrollee may not refuse 
        Medicare coverage to establish eligibility for MinnesotaCare. 
           (d) Applicants who were recipients of medical assistance or 
        general assistance medical care within one month of application 
        must meet the provisions of this subdivision and subdivision 2. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003. 
           Sec. 23.  Minnesota Statutes 2000, section 256L.12, 
        subdivision 9, is amended to read: 
           Subd. 9.  [RATE SETTING.] (a) Rates will be prospective, 
        per capita, where possible.  The commissioner may allow health 
        plans to arrange for inpatient hospital services on a risk or 
        nonrisk basis.  The commissioner shall consult with an 
        independent actuary to determine appropriate rates. 
           (b) For services rendered on or after January 1, 2003, the 
        commissioner shall withhold .5 percent of managed care plan 
        payments under this section pending completion of performance 
        targets.  The withheld funds will be returned no sooner than 
        July 1 and no later than July 31 of the following year if 
        performance targets in the contract are achieved. 
           Sec. 24.  Minnesota Statutes 2001 Supplement, section 
        256L.15, subdivision 1, is amended to read: 
           Subdivision 1.  [PREMIUM DETERMINATION.] (a) Families with 
        children and individuals shall pay a premium determined 
        according to a sliding fee based on a percentage of the family's 
        gross family income.  
           (b) Pregnant women and children under age two are exempt 
        from the provisions of section 256L.06, subdivision 3, paragraph 
        (b), clause (3), requiring disenrollment for failure to pay 
        premiums.  For pregnant women, this exemption continues until 
        the first day of the month following the 60th day postpartum.  
        Women who remain enrolled during pregnancy or the postpartum 
        period, despite nonpayment of premiums, shall be disenrolled on 
        the first of the month following the 60th day postpartum for the 
        penalty period that otherwise applies under section 256L.06, 
        unless they begin paying premiums. 
           (c) Effective July 1, 2002, through June 30, 2006, at their 
        option, children with gross family income at or below 217 
        percent of the federal poverty guidelines who are eligible for 
        MinnesotaCare in the first month following termination from 
        medical assistance shall not pay a premium for 12 months. 
           [EFFECTIVE DATE.] This section is effective July 1, 2002. 
           Sec. 25.  Minnesota Statutes 2000, section 256L.15, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXCEPTIONS TO SLIDING SCALE.] An annual premium 
        of $48 is required for all children in families with income at 
        or less than 150 175 percent of federal poverty guidelines. 
           [EFFECTIVE DATE.] This section is effective July 1, 2003.  
           Sec. 26.  Laws 2001, First Special Session chapter 9, 
        article 2, section 7, the effective date, is amended to read: 
           [EFFECTIVE DATE.] This section is effective January 1, 2002 
        July 1, 2003. 
           Sec. 27.  [REPEALER.] 
           Minnesota Statutes 2001 Supplement, section 256L.03, 
        subdivision 5a, is repealed. 

                                   ARTICLE 16
                              MISCELLANEOUS HEALTH
           Section 1.  Minnesota Statutes 2000, section 145.9266, 
        subdivision 3, is amended to read: 
           Subd. 3.  [PROFESSIONAL TRAINING AND EDUCATION ABOUT FETAL 
        ALCOHOL SYNDROME.] (a) The commissioner of health, in 
        collaboration with the board of medical practice, the board of 
        nursing, and other professional boards and state agencies, shall 
        develop curricula and materials about fetal alcohol syndrome for 
        professional training of health care providers, social service 
        providers, educators, and judicial and corrections systems 
        professionals.  The training and curricula shall increase 
        knowledge and develop practical skills of professionals to help 
        them address the needs of at-risk pregnant women and the needs 
        of individuals affected by fetal alcohol syndrome or fetal 
        alcohol effects and their families. 
           (b) Training for health care providers shall focus on skill 
        building for screening, counseling, referral, and follow-up for 
        women using or at risk of using alcohol while pregnant.  
        Training for health care professionals shall include methods for 
        diagnosis and evaluation of fetal alcohol syndrome and fetal 
        alcohol effects.  Training for education, judicial, and 
        corrections professionals shall involve effective education 
        strategies, methods to identify the behaviors and learning 
        styles of children with alcohol-related birth defects, and 
        methods to identify available referral and community resources. 
           (c) Training and education for social service providers 
        shall focus on resources for assessing, referring, and treating 
        at-risk pregnant women, changes in the mandatory reporting and 
        commitment laws, and resources for affected children and their 
        families.  
           Sec. 2.  Minnesota Statutes 2000, section 251.013, is 
        amended to read: 
           251.013 [AH-GWAH-CHING CENTER, WILLMAR, AND FERGUS FALLS 
        REGIONAL TREATMENT CENTERS.] 
           Subdivision 1.  [INTENT AH-GWAH-CHING.] It is the intent of 
        the legislature that the Ah-Gwah-Ching center continue operation 
        in Walker, Minnesota, as a provider of nursing care to geriatric 
        and other residents whose aggressive or difficult to manage 
        behavioral needs cannot be met in their home community. 
           Subd. 2.  [ADMISSIONS CRITERIA.] An individual who has a 
        documented history of behavioral patterns that pose a 
        substantial risk of harm to the individual, other vulnerable 
        adults, staff, or visitors is eligible for placement at the 
        Ah-Gwah-Ching center if the individual meets all other 
        admissions criteria. 
           Subd. 3.  [GERIATRIC RAPID ASSESSMENT STABILIZATION 
        PROGRAM.] The Ah-Gwah-Ching center shall provide information on 
        the geriatric rapid assessment stabilization program (GRASP) or 
        emergency admittance programs to nursing facilities throughout 
        the state and shall promote and encourage the use of these 
        programs by these facilities. 
           Subd. 4.  [WILLMAR.] It is the intent of the legislature 
        that the Willmar regional treatment center continue operation in 
        Willmar as a provider of mental health and chemical dependency 
        treatment, and also as an operator of community-based programs 
        for persons with developmental disabilities. 
           Subd. 5.  [FERGUS FALLS.] It is the intent of the 
        legislature to continue operation as a downsized regional 
        treatment center in Fergus Falls and use state employees to 
        operate and maintain the downsized facility. 
           Sec. 3.  [REPEALER.] 
           (a) Minnesota Statutes 2000, sections 144.6905 and 145.475, 
        are repealed. 
           (b) Minnesota Statutes 2000, section 256.9731, is repealed. 
           (c) Minnesota Statutes 2000, sections 256K.01; 256K.015; 
        256K.02; 256K.03, subdivisions 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 
        and 12; 256K.04; 256K.05; 256K.06; 256K.08; 256K.09; and 
        Minnesota Statutes 2001 Supplement, sections 256K.03, 
        subdivision 1; and 256K.07, are repealed. 
           (d) Laws 1999, chapter 152, as amended by Laws 2000, 
        chapter 488, article 9, section 33, Laws 2001, First Special 
        Session chapter 9, article 3, section 72, and Laws 2001, First 
        Special Session chapter 9, article 13, section 18, is repealed. 
           (e) Laws 2001, First Special Session chapter 9, article 13, 
        sections 22, 25, 26, 27, and 28, are repealed. 

                                   ARTICLE 17
                    HEALTH AND HUMAN SERVICES APPROPRIATIONS 
        Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
           The dollar amounts shown in the columns marked 
        "APPROPRIATIONS" are added to or, if shown in parentheses, are 
        subtracted from the appropriations in Laws 2001, First Special 
        Session chapter 9, or other law, and are appropriated from the 
        general fund, or any other fund named, to the agencies and for 
        the purposes specified in this article, to be available for the 
        fiscal years indicated for each purpose.  The figures "2002" and 
        "2003" used in this article mean that the appropriation or 
        appropriations listed under them are available for the fiscal 
        year ending June 30, 2002, or June 30, 2003, respectively.  
                                SUMMARY BY FUND
                                  2002          2003           TOTAL
        General  
        Forecast 
        Adjustments           $13,759,000    $36,283,000    $50,042,000
        Nonforecast            (1,386,000)   (54,038,000)   (55,424,000)
        Health Care
        Access                 13,881,000      8,410,000     22,291,000
        State Government
        Special Revenue            75,000        -0-             75,000
        Federal TANF            7,406,000      9,482,000     16,888,000 
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2002         2003 
        Sec. 2.  COMMISSIONER OF
        HUMAN SERVICES
        Subdivision 1.  Total
        Appropriation                     $   41,003,000 $    7,280,000 
                      Summary by Fund
        General              19,716,000   (10,612,000)
        Health Care
        Access               13,881,000     8,410,000
        Federal TANF          7,406,000     9,482,000
        Subd. 2.  Agency Management 
        General                   -0-      (8,972,000)
        The amounts that may be spent from the 
        appropriation for each purpose are as 
        follows: 
        Management Operations
        General                   -0-      (8,972,000)
        Subd. 3.  Basic Health Care
        Grants
        General              11,992,000     6,229,000 
        Health Care
        Access               13,881,000     8,410,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) MinnesotaCare Grants
        Health Care
        Access               13,881,000     8,410,000 
        (b) MA Basic Health Care
        Grants - Families and Children
        General             (17,319,000)  (18,764,000)
        [TRANSFER.] (a) Of the general fund 
        appropriations to the University of 
        Minnesota in the higher education 
        omnibus appropriation bill, $12,700,000 
        in fiscal year 2003 is to be 
        transferred to the commissioner of 
        human services for the following 
        purposes:  (1) $6,350,000 is for the 
        capitation payments under Minnesota 
        Statutes, section 256B.69; and (2) 
        $6,350,000 is to be deposited in the 
        general fund.  
        (b) For fiscal years beginning on or 
        after July 1, 2003, $17,400,000 each 
        year shall be transferred to the 
        commissioner for the following 
        purposes:  (1) $8,700,000 is for the 
        capitation payments under Minnesota 
        Statutes, section 256B.69; and (2) 
        $8,700,000 is to be deposited in the 
        general fund. 
        (c) These transfers shall not be made 
        until the federal government approves 
        the medical education payments 
        authorized in Minnesota Statutes, 
        section 62J.692, subdivision 7, 
        paragraph (c).  Notwithstanding the 
        provisions of section 5, this provision 
        shall not expire. 
        [NONMETROPOLITAN COUNTY PREPAID MEDICAL 
        ASSISTANCE PROGRAM RATE REDUCTION.] A 
        demonstration provider must not reduce 
        payment rates to providers to reflect 
        the reduction effective January 1, 
        2003, in rates paid under Minnesota 
        Statutes, section 256B.69, to 
        nonmetropolitan counties. 
        (c) MA Basic Health Care
        Grants - Elderly and Disabled
        General               3,062,000    (15,710,000)
        (d) General Assistance
        Medical Care Grants
        General              26,249,000     40,752,000
        (e) Health Care Grants -
        Other Assistance
        General                   -0-          (49,000)
        [PRESCRIPTION DRUG PROGRAM FUNDING.] 
        (1) The commissioner may expend money 
        appropriated for the prescription drug 
        program in either fiscal year of the 
        2002-2003 biennium.  (2) The 
        commissioner shall administer the 
        prescription drug program pursuant to 
        Minnesota Statutes, section 256.955, 
        subdivision 9, so that the costs total 
        not more than funds appropriated plus 
        the drug rebate proceeds. 
        [COMMISSIONER OF FINANCE TO RECOGNIZE 
        DRUG PROGRAM PROJECTED NEED.] For 
        November 2002 and February 2003 
        forecasts, the commissioner of finance 
        shall recognize in the fund balance the 
        prescription drug program's projected 
        spending for fiscal years 2002 and 
        2003.  When establishing the base 
        funding level for the prescription drug 
        program for the biennium beginning July 
        1, 2003, the commissioner of finance 
        shall provide a base level adjustment 
        to reflect the program's projected 
        spending, as reflected in legislative 
        tracking documents as of the effective 
        date of this article. 
        [DENTAL ACCESS GRANTS CARRYOVER 
        AUTHORITY.] Any unspent portion of the 
        appropriation from the health care 
        access fund in fiscal year 2002 for 
        dental access grants under Minnesota 
        Statutes, section 256B.53, shall not 
        cancel but shall be allowed to carry 
        forward to be spent in fiscal year 2003 
        for these purposes. 
        Subd. 4.  Basic Health Care
        Management
        General                   -0-     (1,065,000)
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Health Care Policy
        Administration
        General                   -0-        400,000
        (b) Health Care
        Operations
        General                   -0-     (1,465,000)
        Subd. 5.  State-Operated
        Services
        General                   -0-     (8,520,000)
        Subd. 6.  Continuing Care 
        Grants
        General              (8,907,000) (26,227,000)
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Aging Adult Service
        Grants
        General                   -0-     (2,638,000)
        [PLANNING AND SERVICE DEVELOPMENT.] The 
        planning and service development grant 
        from Laws 2001, First Special Session 
        chapter 9, article 17, section 2, 
        subdivision 9, is eliminated for fiscal 
        year 2003.  Base funding for the 
        2004-2005 biennium shall be $550,000 
        each year.  Notwithstanding Laws 2001, 
        First Special Session chapter 9, 
        article 17, section 2, subdivision 9, 
        beginning in fiscal year 2004, the 
        commissioner shall annually distribute 
        $5,000 to each county.  Counties with 
        more than 10,000 persons over age 65 
        shall receive a distribution of an 
        additional 25 cents for each person 
        over age 65.  The amount distributed to 
        each area agency on aging shall be 
        $2,500. 
        [COMMUNITY SERVICES DEVELOPMENT 
        GRANTS.] For fiscal year 2003, base 
        level funding for community services 
        development grants under Minnesota 
        Statutes, section 256.9754, is reduced 
        by $1,478,000.  For fiscal year 2004, 
        base level funding for these grants is 
        reduced by $768,000.  For fiscal year 
        2005, base level funding shall be 
        $3,000,000, and this amount shall be 
        the base funding level for these grants 
        for the biennium beginning July 1, 
        2005.  Notwithstanding section 5, this 
        provision shall not expire. 
        (b) Medical Assistance
        Long-Term Care Waivers and
        Home Care Grants
        General              18,471,000    12,833,000
        (c) Medical Assistance
        Long-Term Care Facilities
        Grants
        General             (27,382,000)  (31,922,000)
        (d) Group Residential
        Housing Grants
        General                   4,000       574,000
        [FEDERAL FUNDING FOR GROUP RESIDENTIAL 
        HOUSING COSTS.] The commissioner shall 
        seek federal funding to offset costs 
        for group residential housing services 
        under Minnesota Statutes, chapter 256I. 
        Any federal funding received shall be 
        distributed to counties on a pro rata 
        basis according to county spending 
        under Minnesota Statutes, section 
        256B.19, subdivision 1, clause (3), for 
        the costs of nursing facility 
        placements of persons with disabilities 
        under the age of 65 that have exceeded 
        90 days.  The commissioner shall report 
        to the legislature by January 15, 2003, 
        on the status of additional federal 
        funding for group residential housing 
        costs. 
        (e) Chemical Dependency 
        Entitlement Grants
        General                  -0-          (84,000)
        [CONSOLIDATED CHEMICAL DEPENDENCY 
        TREATMENT FUND RESERVE TRANSFER.] In 
        fiscal year 2003, $8,544,000 of funds 
        available in the consolidated chemical 
        dependency treatment fund general 
        reserve account is transferred to the 
        general fund. 
        (f) Community Social Services
        Block Grants
        General                  -0-       (4,990,000)
        [CSSA TRADITIONAL APPROPRIATION 
        REDUCTION.] For fiscal year 2003, base 
        level funding for community social 
        service aids under Minnesota Statutes, 
        section 256E.06, subdivisions 1 and 2, 
        is reduced by $4,700,000.  This 
        reduction shall become part of base 
        level funding for the biennium 
        beginning July 1, 2003.  
        Notwithstanding section 5, this 
        provision shall not expire. 
        [CSSA GRANTS FOR FORMER GRH 
        RECIPIENTS.] For fiscal year 2003, base 
        level funding for community social 
        service aids under Minnesota Statutes, 
        section 256E.06, subdivision 2b, is 
        reduced by $290,000.  This reduction 
        shall become part of base level funding 
        for the biennium beginning July 1, 
        2003.  These reductions shall be made 
        on a pro rata basis to each affected 
        county.  Notwithstanding section 5, 
        this provision shall not expire. 
        Subd. 7.  Continuing Care
        Management
        General              (1,295,000)     (205,000)
        [DAY TRAINING TASK FORCE.] The general 
        fund appropriation in fiscal year 2003 
        in Laws 2001, First Special Session 
        chapter 9, article 17, section 2, 
        subdivision 10, for the day training 
        and habilitation restructuring task 
        force is eliminated. 
        Subd. 8.  Economic
        Support Grants
        General              17,926,000    30,734,000
        Federal TANF          9,656,000    11,232,000
        The amounts that may be spent from the 
        appropriation for each purpose are as 
        follows: 
        (a) Assistance to Families
        Grants
        General              16,988,000    28,391,000
        Federal TANF          9,656,000    11,232,000
        [TANF MAINTENANCE OF EFFORT.] If the 
        commissioner determines that the state 
        will meet its federal work 
        participation rate for the federal 
        fiscal year ending that September, the 
        commissioner shall reduce the state 
        maintenance of effort expenditure for 
        MFIP cash and food assistance benefits 
        to the extent allowed under Code of 
        Federal Regulations, title 45, section 
        263.1(a)(2), in state fiscal years 2004 
        and 2005. 
        (b) Work Grants
        General                   -0-        (404,000)
        (c) Economic Support
        Grants - Other Assistance
        General              (1,000,000)     (100,000)
        (d) General Assistance
        Grants
        General               3,300,000     4,288,000
        (e) Minnesota Supplemental
        Aid Grants
        General              (1,362,000)   (1,441,000)
        Subd. 9.  Administrative
        Reimbursement and Pass-Through
        TANF                 (2,250,000)   (1,750,000)
        Subd. 10.  Children's
        Services
        General                 -0-        (2,586,000)
        Sec. 3.  COMMISSIONER OF HEALTH
        Subdivision 1.  Total Appropriation
        Reductions                            (7,343,000)    (7,143,000)
                                SUMMARY BY FUND
                                  2002          2003                
        General                (7,343,000)    (7,143,000)               
        Subd. 2.  Family and Community
        Health                                (1,647,000)    (1,097,000)
                      Summary by Fund
        General              (1,647,000)   (1,097,000)
        [ONETIME GRANT REDUCTIONS.] $200,000 of 
        the appropriation reduction the first 
        year is from competitive grants to 
        reduce health disparities in infant 
        mortality rates and adult and child 
        immunization rates authorized in Laws 
        2001, First Special Session chapter 9, 
        article 17, section 3, subdivision 2. 
        $300,000 of the appropriation reduction 
        the first year is from competitive 
        grants to reduce health disparities in 
        breast and cervical cancer screening 
        rates, HIV/AIDS and sexually 
        transmitted infection rates, 
        cardiovascular disease rates, diabetes 
        rates, and rates of accidental injuries 
        and violence authorized in Laws 2001, 
        First Special Session chapter 9, 
        article 17, section 3, subdivision 2. 
        $150,000 of the appropriation reduction 
        the first year is from community-based 
        programs for suicide prevention 
        authorized in Laws 2001, First Special 
        Session chapter 9, article 17, section 
        3, subdivision 2. 
        [HEALTH CARE ACCESS FUND 
        ADMINISTRATION.] The appropriation from 
        the health care access fund for 
        administration in Laws 2001, First 
        Special Session chapter 9, article 17, 
        section 3, is reduced by $347,000 each 
        year of the biennium beginning July 1, 
        2001. 
        [HEALTH CARE INTERN AND CAREER 
        PROGRAMS.] Of the appropriation in Laws 
        2001, First Special Session chapter 9, 
        article 17, section 3, from the health 
        care access fund, $200,000 each year of 
        the biennium beginning July 1, 2001, is 
        for the summer health care intern 
        program under Minnesota Statutes, 
        section 144.1464, and $147,000 each 
        year is for the promotion of health and 
        long-term care careers under Minnesota 
        Statutes, section 144.1499. 
        Subd. 3.  Access and Quality
        Improvement                           (4,970,000)    (5,020,000)
        [HEALTH STATUS IMPROVEMENT GRANTS.] Of 
        this reduction, $120,000 each year is 
        from money for grants appropriated 
        under Laws 2001, First Special Session 
        chapter 9, article 17, section 3, 
        subdivision 2. 
        Subd. 4.  Health Protection             (351,000)      (651,000)
        [FOOD SAFETY.] Of this reduction, 
        $200,000 in fiscal year 2002 is from 
        the appropriation for a community 
        health education and promotion program 
        on food safety authorized under Laws 
        2001, First Special Session chapter 9, 
        article 17, section 3, subdivision 4. 
        Subd. 5.  Management and Support
        Services                                (375,000)      (375,000)
        Sec. 4.  HEALTH-RELATED BOARDS
        Subdivision 1.  Total
        Appropriation                             75,000       -0-      
        The appropriations in this section are 
        from the state government special 
        revenue fund. 
        [NO SPENDING IN EXCESS OF REVENUES.] 
        The commissioner of finance shall not 
        permit the allotment, encumbrance, or 
        expenditure of money appropriated in 
        this section in excess of the 
        anticipated biennial revenues or 
        accumulated surplus revenues from fees 
        collected by the boards.  Neither this 
        provision nor Minnesota Statutes, 
        section 214.06, applies to transfers 
        from the general contingent account. 
        Subd. 2.  Board of Chiropractic
        Examiners                                 75,000      -0-       
        [LEGAL COSTS.] Of this appropriation, 
        $75,000 for the fiscal year beginning 
        July 1, 2001, is to the board to pay 
        for extraordinary legal costs.  This is 
        a onetime appropriation and shall not 
        become part of base-level funding for 
        the 2004-2005 biennium. 
           Sec. 5.  [SUNSET OF UNCODIFIED LANGUAGE.] 
           All uncodified language contained in this article expires 
        on June 30, 2003, unless a different expiration date is explicit.
           Sec. 6.  [EFFECTIVE DATE.] 
           Except as otherwise provided in this article, this article 
        is effective the day following final enactment. 
           Presented to the governor February 21, 2002 
           Vetoed by the governor February 25, 2002, 3:48 p.m. 
           Reconsidered and approved by the legislature after the 
        governor's veto February 28, 2002