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Office of the Revisor of Statutes

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

                            CHAPTER 294-S.F.No. 2550 
                  An act relating to human services; defining special 
                  instruction and services; modifying consent 
                  requirements for billing medical assistance and 
                  MinnesotaCare for covered individual education plan 
                  services; modifying individualized family service plan 
                  definition; modifying certain mediation procedures; 
                  modifying revenue allocation provisions for special 
                  education; modifying coverage for special education 
                  services; amending Minnesota Statutes 2000, sections 
                  125A.03; 125A.21, subdivision 2; 125A.27, subdivision 
                  10; 125A.43; 125A.76, subdivision 7; 256B.0625, 
                  subdivision 26. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 125A.03, is 
        amended to read: 
           125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
        DISABILITY.] 
           (a) As defined in paragraph (b), every district must 
        provide special instruction and services, either within the 
        district or in another district, for children with a disability 
        who are residents of the district and who are disabled as set 
        forth in section 125A.02.  For purposes of state and federal 
        special education laws, the phrase "special instruction and 
        services" in the state education code means a free and 
        appropriate public education provided to an eligible child with 
        disabilities and includes special education and related services 
        defined in the Individuals with Disabilities Education Act, 
        subpart A, section 300.24.  
           (b) Notwithstanding any age limits in laws to the contrary, 
        special instruction and services must be provided from birth 
        until July 1 after the child with a disability becomes 21 years 
        old but shall not extend beyond secondary school or its 
        equivalent, except as provided in section 124D.68, subdivision 
        2.  Local health, education, and social service agencies must 
        refer children under age five who are known to need or suspected 
        of needing special instruction and services to the school 
        district.  Districts with less than the minimum number of 
        eligible children with a disability as determined by the 
        commissioner must cooperate with other districts to maintain a 
        full range of programs for education and services for children 
        with a disability.  This section does not alter the compulsory 
        attendance requirements of section 120A.22. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Sec. 2.  Minnesota Statutes 2000, section 125A.21, 
        subdivision 2, is amended to read: 
           Subd. 2.  [THIRD PARTY REIMBURSEMENT.] (a) Beginning July 
        1, 2000, districts shall seek reimbursement from insurers and 
        similar third parties for the cost of services provided by the 
        district whenever the services provided by the district are 
        otherwise covered by the child's health coverage.  Districts 
        shall request, but may not require, the child's family to 
        provide information about the child's health coverage when a 
        child with a disability begins to receive services from the 
        district of a type that may be reimbursable, and shall request, 
        but may not require, updated information after that as needed.  
           (b) For children enrolled in medical assistance under 
        chapter 256B or MinnesotaCare under chapter 256L who have no 
        other health coverage, a district shall provide an initial 
        written notice to the enrolled child's parent or legal 
        representative of its intent to seek reimbursement from medical 
        assistance or MinnesotaCare for the individual education plan 
        health-related services provided by the district. 
           (c) The district shall give the parent or legal 
        representative annual written notice of: 
           (1) the district's intent to seek reimbursement from 
        medical assistance or MinnesotaCare for individual education 
        plan health-related services provided by the district; 
           (2) the right of the parent or legal representative to 
        request a copy of all records concerning individual education 
        plan health-related services disclosed by the district to any 
        third party; and 
           (3) the right of the parent or legal representative to 
        withdraw consent for disclosure of a child's records at any time 
        without consequence. 
        The written notice shall be provided as part of the written 
        notice required by Code of Federal Regulations, title 34, 
        section 300.503. 
           Districts shall request, but may not require, the child's 
        parent or legal representative to sign a consent form, 
        permitting the school district to apply for and receive 
        reimbursement directly from the insurer or other similar third 
        party, to the extent permitted by the insurer or other third 
        party and subject to their networking credentialing, prior 
        authorization, and determination of medical necessity criteria. 
           (d) In order to access the private health care coverage of 
        a child who is covered by private health care coverage in whole 
        or in part, a district must: 
           (1) obtain annual written informed consent from the parent 
        or legal representative, in compliance with subdivision 5; and 
           (2) inform the parent or legal representative that a 
        refusal to permit the district or state Medicaid agency to 
        access their private health care coverage does not relieve the 
        district of its responsibility to provide all services necessary 
        to provide free and appropriate public education at no cost to 
        the parent or legal representative. 
           (e) If the commissioner of human services obtains federal 
        approval to exempt covered individual education plan 
        health-related services from the requirement that private health 
        care coverage refuse payment before medical assistance may be 
        billed, paragraphs (b), (c), and (d), shall also apply to 
        students with a combination of private health care coverage and 
        health care coverage through medical assistance or MinnesotaCare.
           (f) In the event that Congress or any federal agency or the 
        Minnesota legislature or any state agency establishes lifetime 
        limits, limits for any health care services, cost-sharing 
        provisions, or otherwise provides that individual education plan 
        health-related services impact benefits for persons enrolled in 
        medical assistance or MinnesotaCare, the amendments to this 
        subdivision adopted in 2002 are repealed on the effective date 
        of any federal or state law or regulation that imposes the 
        limits.  In that event, districts must obtain informed consent 
        consistent with this subdivision as it existed prior to the 2002 
        amendments and subdivision 5, before seeking reimbursement for 
        children enrolled in medical assistance under chapter 256B or 
        MinnesotaCare under chapter 256L who have no other health care 
        coverage. 
           Sec. 3.  Minnesota Statutes 2000, section 125A.27, 
        subdivision 10, is amended to read: 
           Subd. 10.  [INDIVIDUALIZED FAMILY SERVICE PLAN.] 
        "Individualized family service plan" or "IFSP" means a written 
        plan for providing services to a child age birth to three years 
        and the child's family.  
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 4.  Minnesota Statutes 2000, section 125A.43, is 
        amended to read: 
           125A.43 [MEDIATION PROCEDURE.] 
           (a) The commissioner, or the commissioner's designee, of 
        the state lead agency must use federal funds to provide 
        mediation for the activities in paragraphs (b) and (c). 
           (b) A parent may resolve a dispute regarding issues in 
        section 125A.42, paragraph (b), clause (5), through mediation.  
        If the parent chooses mediation, all public agencies involved in 
        the dispute must participate in the mediation process mediation 
        must be voluntary on the part of the parties.  The parent and 
        the public agencies must complete the mediation process within 
        30 calendar days of the date the office of dispute resolution 
        receives a parent's written request for mediation.  The 
        mediation process may not be used to delay a parent's right to a 
        due process hearing.  The resolution of the mediation is not 
        binding on any party. 
           (c) Resolution of a dispute through mediation, or other 
        form of alternative dispute resolution, is not limited to formal 
        disputes arising from the objection of a parent or guardian and 
        is not limited to the period following a request for a due 
        process hearing. 
           (d) The commissioner shall provide training and resources 
        to school districts to facilitate early identification of 
        disputes and access to mediation. 
           (e) The local primary agency may request mediation on 
        behalf of involved agencies when there are disputes between 
        agencies regarding responsibilities to coordinate, provide, pay 
        for, or facilitate payment for early intervention services. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 5.  Minnesota Statutes 2000, section 125A.76, 
        subdivision 7, is amended to read: 
           Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
        INTERMEDIATES.] For the purposes of this section, a special 
        education cooperative, a service cooperative, an education 
        district, or an intermediate district must allocate its approved 
        expenditures for special education programs among participating 
        school districts. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment.  
           Sec. 6.  Minnesota Statutes 2000, section 256B.0625, 
        subdivision 26, is amended to read: 
           Subd. 26.  [SPECIAL EDUCATION SERVICES.] (a) Medical 
        assistance covers medical services identified in a recipient's 
        individualized education plan and covered under the medical 
        assistance state plan.  Covered services include occupational 
        therapy, physical therapy, speech-language therapy, clinical 
        psychological services, nursing services, school psychological 
        services, school social work services, personal care assistants 
        serving as management aides, assistive technology devices, 
        transportation services, health assessments, and other services 
        covered under the medical assistance state plan.  Mental health 
        services eligible for medical assistance reimbursement must be 
        provided or coordinated through a children's mental health 
        collaborative where a collaborative exists if the child is 
        included in the collaborative operational target population.  
        The provision or coordination of services does not require that 
        the individual education plan be developed by the collaborative. 
           The services may be provided by a Minnesota school district 
        that is enrolled as a medical assistance provider or its 
        subcontractor, and only if the services meet all the 
        requirements otherwise applicable if the service had been 
        provided by a provider other than a school district, in the 
        following areas:  medical necessity, physician's orders, 
        documentation, personnel qualifications, and prior authorization 
        requirements.  The nonfederal share of costs for services 
        provided under this subdivision is the responsibility of the 
        local school district as provided in section 125A.74.  Services 
        listed in a child's individual education plan are eligible for 
        medical assistance reimbursement only if those services meet 
        criteria for federal financial participation under the Medicaid 
        program.  
           (b) Approval of health-related services for inclusion in 
        the individual education plan does not require prior 
        authorization for purposes of reimbursement under this chapter.  
        The commissioner may require physician review and approval of 
        the plan not more than once annually or upon any modification of 
        the individual education plan that reflects a change in 
        health-related services. 
           (c) Services of a speech-language pathologist provided 
        under this section are covered notwithstanding Minnesota Rules, 
        part 9505.0390, subpart 1, item L, if the person: 
           (1) holds a masters degree in speech-language pathology; 
           (2) is licensed by the Minnesota board of teaching as an 
        educational speech-language pathologist; and 
           (3) either has a certificate of clinical competence from 
        the American Speech and Hearing Association, has completed the 
        equivalent educational requirements and work experience 
        necessary for the certificate or has completed the academic 
        program and is acquiring supervised work experience to qualify 
        for the certificate. 
           (d) Medical assistance coverage for medically necessary 
        services provided under other subdivisions in this section may 
        not be denied solely on the basis that the same or similar 
        services are covered under this subdivision. 
           (e) The commissioner shall develop and implement package 
        rates, bundled rates, or per diem rates for special education 
        services under which separately covered services are grouped 
        together and billed as a unit in order to reduce administrative 
        complexity.  
           (f) The commissioner shall develop a cost-based payment 
        structure for payment of these services.  
           (g) Effective July 1, 2000, medical assistance services 
        provided under an individual education plan or an individual 
        family service plan by local school districts shall not count 
        against medical assistance authorization thresholds for that 
        child. 
           (h) Nursing services as defined in section 148.171, 
        subdivision 15, and provided as an individual education plan 
        health-related service, are eligible for medical assistance 
        payment if they are otherwise a covered service in the medical 
        assistant program. 
           [EFFECTIVE DATE.] This section is effective the day 
        following final enactment. 
           Presented to the governor March 25, 2002 
           Signed by the governor March 26, 2002, 2:33 p.m.