Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2004, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 272-H.F.No. 2867
An act relating to state government; appropriating
money for prekindergarten through grade 12 education,
including general education, education excellence,
special programs, and facilities and technology; early
childhood and family education, including early
childhood family support, prevention, and
self-sufficiency and lifelong learning; libraries; and
health and human services; setting priorities for use
of additional revenues; modifying certain bonding,
loan, and financial provisions of the public
facilities authority; amending Minnesota Statutes
2002, sections 446A.12, subdivision 1; 446A.14;
446A.17; 446A.19; Minnesota Statutes 2003 Supplement,
sections 16A.152, subdivision 2; 123B.54; Laws 2003,
First Special Session chapter 9, article 1, section
53, subdivisions 2, 3, 5, 6, 11, 12; Laws 2003, First
Special Session chapter 9, article 2, section 55,
subdivisions 2, 3, 4, 5, 7, 9, 12; Laws 2003, First
Special Session chapter 9, article 3, section 20,
subdivisions 4, 5, 6, 7, 8, 9; Laws 2003, First
Special Session chapter 9, article 4, section 31,
subdivisions 2, 3; Laws 2003, First Special Session
chapter 9, article 5, section 35, subdivisions 2, 3;
Laws 2003, First Special Session chapter 9, article 6,
section 4; Laws 2003, First Special Session chapter 9,
article 7, section 11, subdivision 3; Laws 2003, First
Special Session chapter 9, article 8, section 7,
subdivisions 2, 5; Laws 2003, First Special Session
chapter 9, article 9, section 9, subdivision 2; Laws
2003, First Special Session chapter 14, article 13C,
sections 1; 2, subdivisions 1, 3, 6, 7, 9, 11; 10,
subdivisions 1, 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
PREKINDERGARTEN THROUGH GRADE 12 EDUCATION
A. GENERAL EDUCATION
Section 1. Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 2, is amended to read:
Subd. 2. [GENERAL EDUCATION AID.] For general education
aid under Minnesota Statutes, section 126C.13, subdivision 4:
$4,764,384,000 $4,726,466,000 ..... 2004
$5,090,303,000 $5,026,983,000 ..... 2005
The 2004 appropriation includes $857,432,000 $860,552,000
for 2003 and $3,906,952,000 $3,865,914,000 for 2004.
The 2005 appropriation includes
$1,009,856,000 $1,009,822,000 for 2004
and $4,080,447,000 $4,017,161,000 for 2005.
Sec. 2. Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 3, is amended to read:
Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For
referendum tax base replacement aid under Minnesota Statutes,
section 126C.17, subdivision 7a:
$ 7,841,000 $8,096,000 ..... 2004
$ 8,543,000 $8,596,000 ..... 2005
The 2004 appropriation includes $1,419,000 for 2003 and
$6,422,000 $6,677,000 for 2004.
The 2005 appropriation includes $1,605,000 $1,669,000 for
2004 and $6,938,000 $6,927,000 for 2005.
Sec. 3. Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 5, is amended to read:
Subd. 5. [ABATEMENT REVENUE.] For abatement aid under
Minnesota Statutes, section 127A.49:
$2,680,000 $2,436,000 ..... 2004
$2,937,000 $1,559,000 ..... 2005
The 2004 appropriation includes $472,000 for 2003 and
$2,208,000 $1,964,000 for 2004.
The 2005 appropriation includes $551,000 $491,000 for 2004
and $2,386,000 $1,068,000 for 2005.
Sec. 4. Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 6, is amended to read:
Subd. 6. [CONSOLIDATION TRANSITION.] For districts
consolidating under Minnesota Statutes, section 123A.485:
$207,000 $ 35,000 ..... 2004
$607,000 $145,000 ..... 2005
The 2004 appropriation includes $35,000 for 2003 and
$172,000 $0 for 2004.
The 2005 appropriation includes $42,000 $0 for 2004 and
$565,000 $145,000 for 2005.
Sec. 5. Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 11, is amended to read:
Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil
education aid under Minnesota Statutes, sections 123B.40 to
123B.43 and 123B.87:
$14,626,000 $14,411,000 ..... 2004
$15,594,000 $15,072,000 ..... 2005
The 2004 appropriation includes $2,715,000 for 2003 and
$11,911,000 $11,696,000 for 2004.
The 2005 appropriation includes $2,977,000 $2,923,000 for
2004 and $12,617,000 $12,149,000 for 2005.
Sec. 6. Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 12, is amended to read:
Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic
pupil transportation aid under Minnesota Statutes, section
123B.92, subdivision 9:
$21,477,000 $20,471,000 ..... 2004
$21,982,000 $21,421,000 ..... 2005
The 2004 appropriation includes $3,990,000 for 2003 and
$17,487,000 $16,481,000 for 2004.
The 2005 appropriation includes $4,371,000 $4,120,000 for
2004 and $17,611,000 $17,301,000 for 2005.
B. EDUCATION EXCELLENCE
Sec. 7. Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 2, is amended to read:
Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building
lease aid under Minnesota Statutes, section 124D.11, subdivision
4:
$17,140,000 $16,753,000 ..... 2004
$21,018,000 $21,347,000 ..... 2005
The 2004 appropriation includes $2,524,000 for 2003 and
$14,616,000 $14,229,000 for 2004.
The 2005 appropriation includes $3,654,000 $3,557,000 for
2004 and $17,364,000 $17,790,000 for 2005.
Sec. 8. Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 3, is amended to read:
Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school
startup cost aid under Minnesota Statutes, section 124D.11:
$824,000 $844,000 ..... 2004
$151,000 $156,000 ..... 2005
The 2004 appropriation includes $220,000 for 2003 and
$604,000 $624,000 for 2004.
The 2005 appropriation includes $151,000 $156,000 for 2004
and $0 for 2005.
Sec. 9. Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 4, is amended to read:
Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants
to charter schools to promote integration and desegregation
under Minnesota Statutes, section 124D.11, subdivision 6,
paragraph (e):
$8,000 $7,000 ..... 2004
This appropriation includes $8,000 $7,000 for 2003 and $0
for 2004.
Sec. 10. Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 5, is amended to read:
Subd. 5. [INTEGRATION AID.] For integration aid under
Minnesota Statutes, section 124D.86, subdivision 5:
$56,869,000 $55,911,000 ..... 2004
$56,092,000 $55,893,000 ..... 2005
The 2004 appropriation includes $8,428,000 for 2003 and
$48,441,000 $47,483,000 for 2004.
The 2005 appropriation includes $12,110,000 $11,870,000 for
2004 and $43,982,000 $44,023,000 for 2005.
Sec. 11. Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 7, is amended to read:
Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school
startup aid under Minnesota Statutes, section 124D.88:
$ 37,000 ..... 2004
$454,000 $ 40,000 ..... 2005
The 2004 appropriation includes $37,000 for 2003 and $0 for
2004.
The 2005 appropriation includes $0 for 2004 and $437,000
$40,000 for 2005.
Sec. 12. Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 9, is amended to read:
Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian
success for the future grants under Minnesota Statutes, section
124D.81:
$2,073,000 $2,061,000 ..... 2004
$2,137,000 ..... 2005
The 2004 appropriation includes $363,000 $351,000 for 2003
and $1,710,000 for 2004.
The 2005 appropriation includes $427,000 for 2004 and
$1,710,000 for 2005.
Sec. 13. Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 12, is amended to read:
Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract
school aid under Minnesota Statutes, section 124D.83:
$2,135,000 $1,617,000 ..... 2004
$2,336,000 $2,185,000 ..... 2005
The 2004 appropriation includes $285,000 for 2003 and
$1,850,000 $1,332,000 for 2004.
The 2005 appropriation includes $462,000 $333,000 for 2004
and $1,874,000 $1,852,000 for 2005.
C. SPECIAL PROGRAMS
Sec. 14. Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 4, is amended to read:
Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid
under Minnesota Statutes, section 125A.75, subdivision 3, for
children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence
can be determined:
$2,177,000 $2,311,000 ..... 2004
$2,244,000 $2,550,000 ..... 2005
If the appropriation for either year is insufficient, the
appropriation for the other year is available.
Sec. 15. Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 5, is amended to read:
Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for
teacher travel for home-based services under Minnesota Statutes,
section 125A.75, subdivision 1:
$220,000 $173,000 ..... 2004
$261,000 $178,000 ..... 2005
The 2004 appropriation includes $34,000 for 2003 and
$186,000 $139,000 for 2004.
The 2005 appropriation includes $46,000 $34,000 for 2004
and $215,000 $144,000 for 2005.
Sec. 16. Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 6, is amended to read:
Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess
cost aid under Minnesota Statutes, section 125A.79, subdivision
7:
$92,606,000 $92,605,000 ..... 2004
$92,984,000 $92,799,000 ..... 2005
The 2004 appropriation includes $41,754,000 for 2003 and
$50,852,000 $50,851,000 for 2004.
The 2005 appropriation includes $41,215,000 $41,216,000 for
2004 and $51,769,000 $51,583,000 for 2005.
Sec. 17. Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 7, is amended to read:
Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For
paying the costs a district incurs under Minnesota Statutes,
section 125A.75, subdivision 8:
$346,000 $201,000 ..... 2004
$ 17,000 $150,000 ..... 2005
Sec. 18. Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 8, is amended to read:
Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for
transition programs for children with disabilities under
Minnesota Statutes, section 124D.454:
$8,625,000 $8,570,000 ..... 2004
$8,867,000 $8,760,000 ..... 2005
The 2004 appropriation includes $1,516,000 for 2003 and
$7,109,000 $7,054,000 for 2004.
The 2005 appropriation includes $1,777,000 $1,763,000 for
2004 and $7,090,000 $6,997,000 for 2005.
Sec. 19. Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 9, is amended to read:
Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For
reimbursing serving school districts for unreimbursed eligible
expenditures attributable to children placed in the serving
school district by court action under Minnesota Statutes,
section 125A.79, subdivision 4:
$152,000 $36,000 ..... 2004
$160,000 $61,000 ..... 2005
D. FACILITIES AND TECHNOLOGY
Sec. 20. Minnesota Statutes 2003 Supplement, section
123B.54, is amended to read:
123B.54 [DEBT SERVICE APPROPRIATION.]
(a) $25,987,000 $28,367,000 in fiscal year 2002,
$29,941,000 2006 and $25,560,000 in fiscal year 2003,
$40,075,000 in fiscal year 2004, and $39,774,000 in fiscal years
2005 2007 and later are appropriated from the general fund to
the commissioner of education 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.
Sec. 21. Laws 2003, First Special Session chapter 9,
article 4, section 31, subdivision 2, is amended to read:
Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and
safety aid according to Minnesota Statutes, section 123B.57,
subdivision 5:
$7,839,000 $5,356,000 ..... 2004
$6,068,000 $1,920,000 ..... 2005
The 2004 appropriation includes $1,516,000 for 2003 and
$6,323,000 $3,840,000 for 2004.
The 2005 appropriation includes $1,580,000 $960,000 for
2004 and $4,488,000 $960,000 for 2005.
Sec. 22. Laws 2003, First Special Session chapter 9,
article 4, section 31, subdivision 3, is amended to read:
Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid
according to Minnesota Statutes, section 123B.53, subdivision 6:
$34,500,000 $35,598,000 ..... 2004
$37,575,000 $31,220,000 ..... 2005
The 2004 appropriation includes $5,586,000 for 2003 and
$28,914,000 $30,012,000 for 2004.
The 2005 appropriation includes $7,228,000 $7,503,000 for
2004 and $30,347,000 $23,717,000 for 2005.
E. NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS
Sec. 23. Laws 2003, First Special Session chapter 9,
article 5, section 35, 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:
$7,800,000 $7,650,000 ..... 2004
$7,950,000 $7,760,000 ..... 2005
Sec. 24. Laws 2003, First Special Session chapter 9,
article 5, section 35, subdivision 3, is amended to read:
Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN
MILK.] For traditional school breakfast aid and kindergarten
milk under Minnesota Statutes, sections 124D.1158 and 124D.118:
$3,088,000 $4,382,000 ..... 2004
$3,217,000 $4,460,000 ..... 2005
F. LIBRARIES
Sec. 25. Laws 2003, First Special Session chapter 9,
article 6, section 4, is amended to read:
Sec. 4. [APPROPRIATIONS.]
Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums
indicated in this section are appropriated from the general fund
to the department of education for the fiscal years designated.
Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support
grants under Minnesota Statutes, section 134.355:
$8,072,000 $8,312,000 ..... 2004
$8,570,000 ..... 2005
The 2004 appropriation includes $1,456,000 for 2003 and
$6,616,000 $6,856,000 for 2004.
The 2005 appropriation includes $1,654,000 $1,714,000 for
2004 and $6,916,000 $6,856,000 for 2005.
Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For
regional library telecommunications aid under Minnesota
Statutes, section 134.355:
$1,200,000 $960,000 ..... 2004
$1,200,000 ..... 2005
The 2004 appropriation includes $960,000 for 2004.
The 2005 appropriation includes $240,000 for 2004 and
$960,000 for 2005.
Subd. 4. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For
grants according to Minnesota Statutes, sections 134.353 and
134.354, to multicounty, multitype library systems:
$876,000 ..... 2004
$903,000 ..... 2005
The 2004 appropriation includes $153,000 for 2003 and
$723,000 for 2004.
The 2005 appropriation includes $180,000 for 2004 and
$723,000 for 2005.
Subd. 5. [ELECTRONIC LIBRARY FOR MINNESOTA.] For statewide
licenses to on-line databases selected in cooperation with the
higher education services office for school media centers,
public libraries, state government agency libraries, and public
or private college or university libraries:
$400,000 ..... 2004
$400,000 ..... 2005
Any balance in the first year does not cancel but is
available in the second year.
G. EARLY CHILDHOOD FAMILY SUPPORT
Sec. 26. Laws 2003, First Special Session chapter 9,
article 7, section 11, subdivision 3, is amended to read:
Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early
childhood family education aid under Minnesota Statutes, section
124D.135:
$19,675,000 $19,079,000 ..... 2004
$15,129,000 $14,407,000 ..... 2005
The 2004 appropriation includes $3,239,000 for 2003 and
$16,436,000 $15,840,000 for 2004.
The 2005 appropriation includes $4,109,000 $3,959,000 for
2004 and $11,020,000 $10,448,000 for 2005.
H. PREVENTION
Sec. 27. Laws 2003, First Special Session chapter 9,
article 8, section 7, subdivision 2, is amended to read:
Subd. 2. [COMMUNITY EDUCATION AID.] For community
education aid under Minnesota Statutes, section 124D.20:
$5,495,000 $5,351,000 ..... 2004
$3,406,000 $3,137,000 ..... 2005
The 2004 appropriation includes $956,000 for 2003 and
$4,539,000 $4,395,000 for 2004.
The 2005 appropriation includes $1,134,000 $1,098,000 for
2004 and $2,272,000 $2,039,000 for 2005.
Sec. 28. Laws 2003, First Special Session chapter 9,
article 8, section 7, subdivision 5, is amended to read:
Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day care
aid under Minnesota Statutes, section 124D.22:
$41,000 $40,000 ..... 2004
$22,000 $24,000 ..... 2005
The 2004 appropriation includes $14,000 for 2003 and
$27,000 $26,000 for 2004.
The 2005 appropriation includes $6,000 for 2004 and $16,000
$18,000 for 2005.
I. SELF-SUFFICIENCY AND LIFELONG LEARNING
Sec. 29. Laws 2003, First Special Session chapter 9,
article 9, section 9, subdivision 2, is amended to read:
Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic
education aid under Minnesota Statutes, section 124D.52, in
fiscal year 2004 and Minnesota Statutes, section 124D.531, in
fiscal year 2005:
$33,153,000 $33,014,000 ..... 2004
$35,823,000 $35,808,000 ..... 2005
The 2004 appropriation includes $5,905,000 $5,827,000 for
2003 and $27,248,000 $27,187,000 for 2004.
The 2005 appropriation includes $6,811,000 $6,796,000 for
2004 and $29,012,000 for 2005.
Sec. 30. [EFFECTIVE DATE.]
Sections 1 to 29 are effective the day following final
enactment.
ARTICLE 2
A. HEALTH AND HUMAN SERVICES FORECAST ADJUSTMENTS
Section 1. Laws 2003, First Special Session chapter 14,
article 13C, section 1, is amended to read:
Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS FORECAST
ADJUSTMENTS.]
The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or any other fund named, to
the agencies and for the purposes specified in the sections of
this article, to be available for the fiscal years indicated for
each purpose. The figures "2004" and "2005" where used in this
article, mean that the appropriation or appropriations listed
under them are available for the fiscal year ending June 30,
2004, or June 30, 2005, respectively. Where a dollar amount
appears in parentheses, it means a reduction of an appropriation.
SUMMARY BY FUND
BIENNIAL
2004 2005 TOTAL
General $3,765,212,000 $3,727,319,000 $7,492,531,000
$3,500,860,000 $3,746,520,000 $7,247,380,000
State Government
Special Revenue 45,337,000 45,104,000 90,441,000
Health Care
Access 294,090,000 308,525,000 602,615,000
280,060,000 308,609,000 588,669,000
Federal TANF 261,552,000 270,364,000 531,916,000
276,425,000 276,363,000 552,788,000
Lottery Prize
Fund 1,556,000 1,556,000 3,112,000
Special Revenue 3,340,000 3,340,000 6,680,000
TOTAL $4,371,087,000 $4,356,208,000 $8,727,295,000
$4,107,578,000 $4,381,492,000 $8,489,070,000
APPROPRIATIONS
Available for the Year
Ending June 30
2004 2005
Sec. 2. Laws 2003, First Special Session chapter 14,
article 13C, section 2, subdivision 1, is amended to read:
Subdivision 1. Total
Appropriation $4,111,558,000 $4,110,496,000
$3,848,049,000 $4,135,780,000
Summary by Fund
General 3,566,163,000 3,541,854,000
3,301,811,000 3,561,055,000
State Government
Special Revenue 534,000 534,000
Health Care
Access 287,753,000 302,188,000
273,723,000 302,272,000
Federal TANF 255,552,000 264,364,000
270,425,000 270,363,000
Lottery Cash
Flow 1,556,000 1,556,000
[FEDERAL CONTINGENCY APPROPRIATION.]
(a) Any additional Federal Medicaid
funds made available under title IV of
the federal Jobs and Growth Tax Relief
Reconciliation Act of 2003 are
appropriated to the commissioner of
human services for use in the state's
medical assistance and MinnesotaCare
programs. The commissioners of human
services and finance shall report to
the legislative advisory committee on
the additional federal Medicaid
matching funds that will be available
to the state.
(b) Contingent upon Because of the
availability of these funds, the
following policies shall become
effective and necessary funds are
appropriated for those purposes:
(1) medical assistance and
MinnesotaCare eligibility and local
financial participation changes
provided for in this act may be
implemented prior to September 2, 2003,
or may be delayed as necessary to
maximize the use of federal funds
received under title IV of the Jobs and
Growth Tax Relief Reconciliation Act of
2003;
(2) the aggregate cap on the services
identified in Minnesota Statutes,
section 256L.035, paragraph (a), clause
(3), shall be increased from $2,000 to
$5,000. This increase shall expire at
the end of fiscal year 2007. Funds may
be transferred from the general fund to
the health care access fund as
necessary to implement this provision;
and
(3) the following payment shifts shall
not be implemented:
(i) MFIP payment shift found in
subdivision 11;
(ii) the county payment shift found in
subdivision 1; and
(iii) the delay in medical assistance
and general assistance medical care
fee-for-service payments found in
subdivision 6.
(c) Notwithstanding section 14,
paragraphs (a) and (b) shall expire
June 30, 2007.
[RECEIPTS FOR SYSTEMS PROJECTS.]
Appropriations and federal receipts for
information system projects for MAXIS,
PRISM, MMIS, and SSIS must be deposited
in the state system account authorized
in Minnesota Statutes, section
256.014. Money appropriated for
computer projects approved by the
Minnesota office of technology, funded
by the legislature, and approved by the
commissioner of finance may be
transferred from one project to another
and from development to operations as
the commissioner of human services
considers necessary. Any unexpended
balance in the appropriation for these
projects does not cancel but is
available for ongoing development and
operations.
[GIFTS.] Notwithstanding Minnesota
Statutes, chapter 7, the commissioner
may accept on behalf of the state
additional funding from sources other
than state funds for the purpose of
financing the cost of assistance
program grants or nongrant
administration. All additional funding
is appropriated to the commissioner for
use as designated by the grantor of
funding.
[SYSTEMS CONTINUITY.] In the event of
disruption of technical systems or
computer operations, the commissioner
may use available grant appropriations
to ensure continuity of payments for
maintaining the health, safety, and
well-being of clients served by
programs administered by the department
of human services. Grant funds must be
used in a manner consistent with the
original intent of the appropriation.
[NONFEDERAL SHARE TRANSFERS.] The
nonfederal share of activities for
which federal administrative
reimbursement is appropriated to the
commissioner may be transferred to the
special revenue fund.
[TANF FUNDS APPROPRIATED TO OTHER
ENTITIES.] Any expenditures from the
TANF block grant shall be expended in
accordance with the requirements and
limitations of part A of title IV of
the Social Security Act, as amended,
and any other applicable federal
requirement or limitation. Prior to
any expenditure of these funds, the
commissioner shall assure that funds
are expended in compliance with the
requirements and limitations of federal
law and that any reporting requirements
of federal law are met. It shall be
the responsibility of any entity to
which these funds are appropriated to
implement a memorandum of understanding
with the commissioner that provides the
necessary assurance of compliance prior
to any expenditure of funds. The
commissioner shall receipt TANF funds
appropriated to other state agencies
and coordinate all related interagency
accounting transactions necessary to
implement these appropriations.
Unexpended TANF funds appropriated to
any state, local, or nonprofit entity
cancel at the end of the state fiscal
year unless appropriating language
permits otherwise.
[TANF FUNDS TRANSFERRED TO OTHER
FEDERAL GRANTS.] The commissioner must
authorize transfers from TANF to other
federal block grants so that funds are
available to meet the annual
expenditure needs as appropriated.
Transfers may be authorized prior to
the expenditure year with the agreement
of the receiving entity. Transferred
funds must be expended in the year for
which the funds were appropriated
unless appropriation language permits
otherwise. In accelerating transfer
authorizations, the commissioner must
aim to preserve the future potential
transfer capacity from TANF to other
block grants.
[TANF MAINTENANCE OF EFFORT.] (a) In
order to meet the basic maintenance of
effort (MOE) requirements of the TANF
block grant specified under Code of
Federal Regulations, title 45, section
263.1, the commissioner may only report
nonfederal money expended for allowable
activities listed in the following
clauses as TANF/MOE expenditures:
(1) MFIP cash, diversionary work
program, and food assistance benefits
under Minnesota Statutes, chapter 256J;
(2) the child care assistance programs
under Minnesota Statutes, sections
119B.03 and 119B.05, and county child
care administrative costs under
Minnesota Statutes, section 119B.15;
(3) state and county MFIP
administrative costs under Minnesota
Statutes, chapters 256J and 256K;
(4) state, county, and tribal MFIP
employment services under Minnesota
Statutes, chapters 256J and 256K;
(5) expenditures made on behalf of
noncitizen MFIP recipients who qualify
for the medical assistance without
federal financial participation program
under Minnesota Statutes, section
256B.06, subdivision 4, paragraphs (d),
(e), and (j); and
(6) qualifying working family credit
expenditures under Minnesota Statutes,
section 290.0671.
(b) The commissioner shall ensure that
sufficient qualified nonfederal
expenditures are made each year to meet
the state's TANF/MOE requirements. For
the activities listed in paragraph (a),
clauses (2) to (6), the commissioner
may only report expenditures that are
excluded from the definition of
assistance under Code of Federal
Regulations, title 45, section 260.31.
(c) By August 31 of each year, the
commissioner shall make a preliminary
calculation to determine the likelihood
that the state will meet its annual
federal work participation requirement
under Code of Federal Regulations,
title 45, sections 261.21 and 261.23,
after adjustment for any caseload
reduction credit under Code of Federal
Regulations, title 45, section 261.41.
If the commissioner determines that the
state will meet its federal work
participation rate for the federal
fiscal year ending that September, the
commissioner may reduce the expenditure
under paragraph (a), clause (1), to the
extent allowed under Code of Federal
Regulations, title 45, section
263.1(a)(2).
(d) For fiscal years beginning with
state fiscal year 2003, the
commissioner shall assure that the
maintenance of effort used by the
commissioner of finance for the
February and November forecasts
required under Minnesota Statutes,
section 16A.103, contains expenditures
under paragraph (a), clause (1), equal
to at least 25 percent of the total
required under Code of Federal
Regulations, title 45, section 263.1.
(e) If nonfederal expenditures for the
programs and purposes listed in
paragraph (a) are insufficient to meet
the state's TANF/MOE requirements, the
commissioner shall recommend additional
allowable sources of nonfederal
expenditures to the legislature, if the
legislature is or will be in session to
take action to specify additional
sources of nonfederal expenditures for
TANF/MOE before a federal penalty is
imposed. The commissioner shall
otherwise provide notice to the
legislative commission on planning and
fiscal policy under paragraph (g).
(f) If the commissioner uses authority
granted under section 11, or similar
authority granted by a subsequent
legislature, to meet the state's
TANF/MOE requirement in a reporting
period, the commissioner shall inform
the chairs of the appropriate
legislative committees about all
transfers made under that authority for
this purpose.
(g) If the commissioner determines that
nonfederal expenditures under paragraph
(a) are insufficient to meet TANF/MOE
expenditure requirements, and if the
legislature is not or will not be in
session to take timely action to avoid
a federal penalty, the commissioner may
report nonfederal expenditures from
other allowable sources as TANF/MOE
expenditures after the requirements of
this paragraph are met. The
commissioner may report nonfederal
expenditures in addition to those
specified under paragraph (a) as
nonfederal TANF/MOE expenditures, but
only ten days after the commissioner of
finance has first submitted the
commissioner's recommendations for
additional allowable sources of
nonfederal TANF/MOE expenditures to the
members of the legislative commission
on planning and fiscal policy for their
review.
(h) The commissioner of finance shall
not incorporate any changes in federal
TANF expenditures or nonfederal
expenditures for TANF/MOE that may
result from reporting additional
allowable sources of nonfederal
TANF/MOE expenditures under the interim
procedures in paragraph (g) into the
February or November forecasts required
under Minnesota Statutes, section
16A.103, unless the commissioner of
finance has approved the additional
sources of expenditures under paragraph
(g).
(i) Minnesota Statutes, section
256.011, subdivision 3, which requires
that federal grants or aids secured or
obtained under that subdivision be used
to reduce any direct appropriations
provided by law, do not apply if the
grants or aids are federal TANF funds.
(j) Notwithstanding section 14,
paragraph (a), clauses (1) to (6), and
paragraphs (b) to (j) expire June 30,
2007.
[WORKING FAMILY CREDIT EXPENDITURES AS
TANF MOE.] The commissioner may claim
as TANF maintenance of effort up to the
following amounts of working family
credit expenditures for the following
fiscal years:
(1) fiscal year 2004, $7,013,000;
(2) fiscal year 2005, $25,133,000;
(3) fiscal year 2006, $6,942,000; and
(4) fiscal year 2007, $6,707,000.
[FISCAL YEAR 2003 APPROPRIATIONS
CARRYFORWARD.] Effective the day
following final enactment,
notwithstanding Minnesota Statutes,
section 16A.28, or any other law to the
contrary, state agencies and
constitutional offices may carry
forward unexpended and unencumbered
nongrant operating balances from fiscal
year 2003 general fund appropriations
into fiscal year 2004 to offset general
budget reductions.
[TRANSFER OF GRANT BALANCES.] Effective
the day following final enactment, the
commissioner of human services, with
the approval of the commissioner of
finance and after notification of the
chair of the senate health, human
services and corrections budget
division and the chair of the house of
representatives health and human
services finance committee, may
transfer unencumbered appropriation
balances for the biennium ending June
30, 2003, in fiscal year 2003 among the
MFIP, MFIP child care assistance under
Minnesota Statutes, section 119B.05,
general assistance, general assistance
medical care, medical assistance,
Minnesota supplemental aid, and group
residential housing programs, and the
entitlement portion of the chemical
dependency consolidated treatment fund,
and between fiscal years of the
biennium.
[TANF APPROPRIATION CANCELLATION.]
Notwithstanding the provisions of Laws
2000, chapter 488, article 1, section
16, any prior appropriations of TANF
funds to the department of trade and
economic development or to the job
skills partnership board or any
transfers of TANF funds from another
agency to the department of trade and
economic development or to the job
skills partnership board are not
available until expended, and if
unobligated as of June 30, 2003, these
appropriations or transfers shall
cancel to the TANF fund.
[SHIFT COUNTY PAYMENT.] The
commissioner shall make up to 100
percent of the calendar year 2005
payments to counties for developmental
disabilities semi-independent living
services grants, developmental
disabilities family support grants, and
adult mental health grants from fiscal
year 2006 appropriations. This is a
onetime payment shift. Calendar year
2006 and future payments for these
grants are not affected by this shift.
This provision expires June 30, 2006.
[CAPITATION RATE INCREASE.] Of the
health care access fund appropriations
to the University of Minnesota in the
higher education omnibus appropriation
bill, $2,157,000 in fiscal year 2004
and $2,157,000 in fiscal year 2005 are
to be used to increase the capitation
payments under Minnesota Statutes,
section 256B.69. Notwithstanding the
provisions of section 14, this
provision shall not expire.
Sec. 3. Laws 2003, First Special Session chapter 14,
article 13C, section 2, subdivision 3, is amended to read:
Subd. 3. Revenue and Pass-Through
Federal TANF 55,855,000 53,315,000
56,643,000 57,275,000
[TANF TRANSFER TO SOCIAL SERVICES BLOCK
GRANT.] $3,137,000 in fiscal year 2005
is appropriated to the commissioner for
the purposes of providing services for
families with children whose incomes
are at or below 200 percent of the
federal poverty guidelines. The
commissioner shall authorize a
sufficient transfer of funds from the
state's federal TANF block grant to the
state's federal social services block
grant to meet this appropriation. The
funds shall be distributed to counties
for the children and community services
grant according to the formula for the
state appropriations in Minnesota
Statutes, chapter 256M.
[TANF FUNDS FOR FISCAL YEAR 2006 AND
FISCAL YEAR 2007 REFINANCING.]
$12,692,000 $6,692,000 in fiscal year
2006 and $9,192,000 $3,192,000 in
fiscal year 2007 in TANF funds are
available to the commissioner to
replace general funds in the amount
of $12,692,000 $6,692,000 in fiscal
year 2006 and $9,192,000 $3,192,000 in
fiscal year 2007 in expenditures that
may be counted toward TANF maintenance
of effort requirements or as an
allowable TANF expenditure.
[ADJUSTMENTS IN TANF TRANSFER TO CHILD
CARE AND DEVELOPMENT FUND.] Transfers
of TANF to the child care development
fund for the purposes of MFIP child
care assistance shall be reduced by
$116,000 in fiscal year 2004 and shall
be increased by $1,976,000 in fiscal
year 2005.
Sec. 4. Laws 2003, First Special Session chapter 14,
article 13C, section 2, subdivision 6, is amended to read:
Subd. 6. Basic Health Care Grants
Summary by Fund
General 1,499,941,000 1,533,016,000
1,290,454,000 1,475,996,000
Health Care Access 268,151,000 282,605,000
254,121,000 282,689,000
[UPDATING FEDERAL POVERTY GUIDELINES.]
Annual updates to the federal poverty
guidelines are effective each July 1,
following publication by the United
States Department of Health and Human
Services for health care programs under
Minnesota Statutes, chapters 256, 256B,
256D, and 256L.
The amounts that may be spent from this
appropriation for each purpose are as
follows:
(a) MinnesotaCare Grants
Health Care Access 267,401,000 281,855,000
253,371,000 281,939,000
[MINNESOTACARE FEDERAL RECEIPTS.]
Receipts received as a result of
federal participation pertaining to
administrative costs of the Minnesota
health care reform waiver shall be
deposited as nondedicated revenue in
the health care access fund. Receipts
received as a result of federal
participation pertaining to grants
shall be deposited in the federal fund
and shall offset health care access
funds for payments to providers.
[MINNESOTACARE FUNDING.] The
commissioner may expend money
appropriated from the health care
access fund for MinnesotaCare in either
fiscal year of the biennium.
(b) MA Basic Health Care Grants -
Families and Children
General 568,254,000 582,161,000
427,769,000 489,545,000
[SERVICES TO PREGNANT WOMEN.] The
commissioner shall use available
federal money for the State-Children's
Health Insurance Program for medical
assistance services provided to
pregnant women who are not otherwise
eligible for federal financial
participation beginning in fiscal year
2003. This federal money shall be
deposited in the federal fund and shall
offset general funds for payments to
providers. Notwithstanding section 14,
this paragraph shall not expire.
[MANAGED CARE RATE INCREASE.] (a)
Effective January 1, 2004, the
commissioner of human services shall
increase the total payments to managed
care plans under Minnesota Statutes,
section 256B.69, by an amount equal to
the cost increases to the managed care
plans from by the elimination of: (1)
the exemption from the taxes imposed
under Minnesota Statutes, section
297I.05, subdivision 5, for premiums
paid by the state for medical
assistance, general assistance medical
care, and the MinnesotaCare program;
and (2) the exemption of gross revenues
subject to the taxes imposed under
Minnesota Statutes, sections 295.50 to
295.57, for payments paid by the state
for services provided under medical
assistance, general assistance medical
care, and the MinnesotaCare program.
Any increase based on clause (2) must
be reflected in provider rates paid by
the managed care plan unless the
managed care plan is a staff model
health plan company.
(b) The commissioner of human services
shall increase by two percent the
fee-for-service payments under medical
assistance, general assistance medical
care, and the MinnesotaCare program for
services subject to the hospital,
surgical center, or health care
provider taxes under Minnesota
Statutes, sections 295.50 to 295.57,
effective for services rendered on or
after January 1, 2004.
(c) The commissioner of finance shall
transfer from the health care access
fund to the general fund the following
amounts in the fiscal years indicated:
2004, $16,587,000; 2005, $46,322,000;
2006, $49,413,000; and 2007,
$52,659,000.
(d) For fiscal years after 2007, the
commissioner of finance shall transfer
from the health care access fund to the
general fund an amount equal to the
revenue collected by the commissioner
of revenue on the following:
(1) gross revenues received by
hospitals, surgical centers, and health
care providers as payments for services
provided under medical assistance,
general assistance medical care, and
the MinnesotaCare program, including
payments received directly from the
state or from a prepaid plan, under
Minnesota Statutes, sections 295.50 to
295.57; and
(2) premiums paid by the state under
medical assistance, general assistance
medical care, and the MinnesotaCare
program under Minnesota Statutes,
section 297I.05, subdivision 5.
The commissioner of finance shall
monitor and adjust if necessary the
amount transferred each fiscal year
from the health care access fund to the
general fund to ensure that the amount
transferred equals the tax revenue
collected for the items described in
clauses (1) and (2) for that fiscal
year.
(e) Notwithstanding section 14, these
provisions shall not expire.
(c) MA Basic Health Care Grants - Elderly
and Disabled
General 695,421,000 741,605,000
610,518,000 743,858,000
[DELAY MEDICAL ASSISTANCE
FEE-FOR-SERVICE - ACUTE CARE.] The
following payments in fiscal year 2005
from the Medicaid Management
Information System that would otherwise
have been made to providers for medical
assistance and general assistance
medical care services shall be delayed
and included in the first payment in
fiscal year 2006:
(1) for hospitals, the last two
payments; and
(2) for nonhospital providers, the last
payment.
This payment delay shall not include
payments to skilled nursing facilities,
intermediate care facilities for mental
retardation, prepaid health plans, home
health agencies, personal care nursing
providers, and providers of only waiver
services. The provisions of Minnesota
Statutes, section 16A.124, shall not
apply to these delayed payments.
Notwithstanding section 14, this
provision shall not expire.
[DEAF AND HARD-OF-HEARING SERVICES.]
If, after making reasonable efforts,
the service provider for mental health
services to persons who are deaf or
hearing impaired is not able to earn
$227,000 through participation in
medical assistance intensive
rehabilitation services in fiscal year
2005, the commissioner shall transfer
$227,000 minus medical assistance
earnings achieved by the grantee to
deaf and hard-of-hearing grants to
enable the provider to continue
providing services to eligible persons.
(d) General Assistance Medical Care
Grants
General 223,960,000 196,617,000
239,861,000 229,960,000
(e) Health Care Grants - Other
Assistance
General 3,067,000 3,407,000
Health Care Access 750,000 750,000
[MINNESOTA PRESCRIPTION DRUG DEDICATED
FUND.] Of the general fund
appropriation, $284,000 in fiscal year
2005 is appropriated to the
commissioner for the prescription drug
dedicated fund established under the
prescription drug discount program.
[DENTAL ACCESS GRANTS CARRYOVER
AUTHORITY.] Any unspent portion of the
appropriation from the health care
access fund in fiscal years 2002 and
2003 for dental access grants under
Minnesota Statutes, section 256B.53,
shall not cancel but shall be allowed
to carry forward to be spent in the
biennium beginning July 1, 2003, for
these purposes.
[STOP-LOSS FUND ACCOUNT.] The
appropriation to the purchasing
alliance stop-loss fund account
established under Minnesota Statutes,
section 256.956, subdivision 2, for
fiscal years 2004 and 2005 shall only
be available for claim reimbursements
for qualifying enrollees who are
members of purchasing alliances that
meet the requirements described under
Minnesota Statutes, section 256.956,
subdivision 1, paragraph (f), clauses
(1), (2), and (3).
(f) Prescription Drug Program
General 9,239,000 9,226,000
[PRESCRIPTION DRUG ASSISTANCE PROGRAM.]
Of the general fund appropriation,
$702,000 in fiscal year 2004 and
$887,000 in fiscal year 2005 are for
the commissioner to establish and
administer the prescription drug
assistance program through the
Minnesota board on aging.
[REBATE REVENUE RECAPTURE.] Any funds
received by the state from a drug
manufacturer due to errors in the
pharmaceutical pricing used by the
manufacturer in determining the
prescription drug rebate are
appropriated to the commissioner to
augment funding of the prescription
drug program established in Minnesota
Statutes, section 256.955.
Sec. 5. Laws 2003, First Special Session chapter 14,
article 13C, section 2, subdivision 7, is amended to read:
Subd. 7. Health Care Management
Summary by Fund
General 24,845,000 26,199,000
24,834,000
Health Care Access 14,522,000 14,533,000
The amounts that may be spent from this
appropriation for each purpose are as
follows:
(a) Health Care Policy Administration
General 5,523,000 7,223,000
Health Care Access 1,066,000 1,200,000
[PAYMENT CODE STUDY.] Of this
appropriation, $345,000 each year is
for a study to determine the
appropriateness of eliminating
reimbursement for certain payment codes
under medical assistance, general
assistance medical care, or
MinnesotaCare. As part of the study,
the commissioner shall also examine
covered services under the Minnesota
health care programs and make
recommendations on possible
modification of the services covered
under the program. The commissioner
shall report to the legislature by
January 15, 2005, with an analysis of
the feasibility of this approach, a
list of codes, if any, to be eliminated
from the payment system, and estimates
of savings to be obtained from this
approach.
[TRANSFERS FROM HEALTH CARE ACCESS
FUND.] (a) Notwithstanding Minnesota
Statutes, section 295.581, to the
extent available resources in the
health care access fund exceed
expenditures in that fund during fiscal
years 2005 to 2007, the excess annual
funds shall be transferred from the
health care access fund to the general
fund on June 30 of fiscal years 2005,
2006, and 2007. These transfers shall
not be reduced to accommodate
MinnesotaCare expansions. The
estimated amounts to be transferred are:
(1) in fiscal year 2005, $192,442,000;
(2) in fiscal year 2006, $52,943,000;
and
(3) in fiscal year 2007, $59,105,000.
These estimates shall be updated with
each forecast, but in no case shall the
transfers exceed the amounts listed in
clauses (1) to (3).
(b) The commissioner shall limit
transfers under paragraph (a) in order
to avoid implementation of Minnesota
Statutes, section 256L.02, subdivision
3, paragraph (b).
(c) For fiscal years 2004 to 2007,
MinnesotaCare shall be a forecasted
program and, if necessary, the
commissioner shall reduce transfers
under paragraph (a) to meet forecasted
expenditures.
(d) The department of human services in
recommending its 2007-2008 budget shall
consider the repayment of the amount
transferred in fiscal years 2006 and
2007 from the health care access fund
to the general fund to the health care
access fund.
(e) Notwithstanding section 14, this
section is in effect until June 30,
2007.
[MINNESOTACARE OUTREACH REIMBURSEMENT.]
Federal administrative reimbursement
resulting from MinnesotaCare outreach
is appropriated to the commissioner for
this activity.
[MINNESOTA SENIOR HEALTH OPTIONS
REIMBURSEMENT.] Federal administrative
reimbursement resulting from the
Minnesota senior health options project
is appropriated to the commissioner for
this activity.
[UTILIZATION REVIEW.] Federal
administrative reimbursement resulting
from prior authorization and inpatient
admission certification by a
professional review organization shall
be dedicated to the commissioner for
these purposes. A portion of these
funds must be used for activities to
decrease unnecessary pharmaceutical
costs in medical assistance.
(b) Health Care Operations
General 19,322,000 18,976,000
19,311,000
Health Care Access 13,456,000 13,333,000
[PREPAID MEDICAL PROGRAMS.] For all
counties in which the PMAP program has
been operating for 12 or more months,
state funding for the nonfederal share
of prepaid medical assistance program
administration costs for county managed
care advocacy and enrollment operations
is eliminated. State funding will
continue for these activities for
counties and tribes establishing new
PMAP programs for a maximum of 16
months (four months prior to beginning
PMAP enrollment and through the first
12 months of their PMAP program
operation). Those counties operating
PMAP programs for less than 12 months
can continue to receive state funding
for advocacy and enrollment activities
through their first year of operation.
Sec. 6. Laws 2003, First Special Session chapter 14,
article 13C, section 2, subdivision 9, is amended to read:
Subd. 9. Continuing Care Grants
Summary by Fund
General 1,504,933,000 1,490,958,000
1,448,029,000 1,567,392,000
Lottery Prize Fund 1,408,000 1,408,000
The amounts that may be spent from this
appropriation for each purpose are as
follows:
(a) Community Social Services
General 496,000 371,000
(b) Aging and Adult Service Grant
General 12,998,000 13,951,000
[LONG-TERM CARE PROGRAM REDUCTIONS.]
For the biennium ending June 30, 2005,
state funding for the following state
long-term care programs is reduced by
15 percent from the level of state
funding provided on June 30, 2003:
SAIL project grants under Minnesota
Statutes, section 256B.0917; senior
nutrition programs under Minnesota
Statutes, section 256.9752; foster
grandparents program under Minnesota
Statutes, section 256.976; retired
senior volunteer program under
Minnesota Statutes, section 256.9753;
and the senior companion program under
Minnesota Statutes, section 256.977.
(c) Deaf and Hard-of-hearing
Service Grants
General 1,719,000 1,490,000
(d) Mental Health Grants
General 53,479,000 34,690,000
46,551,000
Lottery Prize Fund 1,408,000 1,408,000
[RESTRUCTURING OF ADULT MENTAL HEALTH
SERVICES.] The commissioner may make
transfers that do not increase the
state share of costs to effectively
implement the restructuring of adult
mental health services.
[COMPULSIVE GAMBLING.] Of the
appropriation from the lottery prize
fund, $250,000 each year is for the
following purposes:
(1) $100,000 each year is for a grant
to the Southeast Asian Problem Gambling
Consortium. The consortium must
provide statewide compulsive gambling
prevention and treatment services for
Lao, Hmong, Vietnamese, and Cambodian
families, adults, and adolescents. The
appropriation in this clause shall not
become part of base level funding for
the biennium beginning July 1, 2005.
Any unencumbered balance of the
appropriation in the first year does
not cancel but is available for the
second year; and
(2) $150,000 each year is for a grant
to a compulsive gambling council
located in St. Louis county. The
gambling council must provide a
statewide compulsive gambling
prevention and education project for
adolescents. Any unencumbered balance
of the appropriation in the first year
of the biennium does not cancel but is
available for the second year.
(e) Community Support Grants
12,523,000 9,093,000
12,024,000
[CENTERS FOR INDEPENDENT LIVING STUDY.]
The commissioner of human services, in
consultation with the commissioner of
economic security, the centers for
independent living, and consumer
representatives, shall study the
financing of the centers for
independent living authorized under
Minnesota Statutes, section 268A.11,
and make recommendations on options to
maximize federal financial
participation. Study components shall
include:
(1) the demographics of individuals
served by the centers for independent
living;
(2) the range of services the centers
for independent living provide to these
individuals;
(3) other publicly funded services
received by individuals supported by
the centers; and
(4) strategies for maximizing federal
financial participation for eligible
activities carried out by centers for
independent living.
The commissioner shall report with
fiscal and programmatic recommendations
to the chairs of the appropriate house
of representatives and senate finance
and policy committees by January 15,
2004.
(f) Medical Assistance Long-Term
Care Waivers and Home Care Grants
General 659,211,000 718,665,000
624,631,000 748,189,000
[RATE AND ALLOCATION DECREASES FOR
CONTINUING CARE PROGRAMS.]
Notwithstanding any law or rule to the
contrary, the commissioner of human
services shall decrease reimbursement
rates or reduce allocations to assure
the necessary reductions in state
spending for the providers or programs
listed in paragraphs (a) to (d). The
decreases are effective for services
rendered on or after July 1, 2003.
(a) Effective July 1, 2003, the
commissioner shall reduce payment rates
for services and individual or service
limits by one percent. The rate
decreases described in this section
must be applied to:
(1) home and community-based waivered
services for the elderly under
Minnesota Statutes, section 256B.0915;
(2) day training and habilitation
services for adults with mental
retardation or related conditions under
Minnesota Statutes, sections 252.40 to
252.46;
(3) the group residential housing
supplementary service rate under
Minnesota Statutes, section 256I.05,
subdivision 1a;
(4) chemical dependency residential and
nonresidential service rates under
Minnesota Statutes, section 245B.03;
(5) consumer support grants under
Minnesota Statutes, section 256.476;
and
(6) home and community-based services
for alternative care services under
Minnesota Statutes, section 256B.0913.
(b) The commissioner shall reduce
allocations made available to county
agencies for home and community-based
waivered services to assure a
one-percent reduction in state spending
for services rendered on or after July
1, 2003. The commissioner shall apply
the allocation decreases described in
this section to:
(1) persons with mental retardation or
related conditions under Minnesota
Statutes, section 256B.501;
(2) waivered services under community
alternatives for disabled individuals
under Minnesota Statutes, section
256B.49;
(3) community alternative care waivered
services under Minnesota Statutes,
section 256B.49; and
(4) traumatic brain injury waivered
services under Minnesota Statutes,
section 256B.49.
County agencies will be responsible for
100 percent of any spending in excess
of the allocation made by the
commissioner. Nothing in this section
shall be construed as reducing the
county's responsibility to offer and
make available feasible home and
community-based options to eligible
waiver recipients within the resources
allocated to them for that purpose.
(c) The commissioner shall reduce deaf
and hard-of-hearing grants by one
percent on July 1, 2003.
(d) Effective July 1, 2003, the
commissioner shall reduce payment rates
for each facility reimbursed under
Minnesota Statutes, section 256B.5012,
by decreasing the total operating
payment rate for intermediate care
facilities for the mentally retarded by
one percent. For each facility, the
commissioner shall multiply the
adjustment by the total payment rate,
excluding the property-related payment
rate, in effect on June 30, 2003. A
facility whose payment rates are
governed by closure agreements,
receivership agreements, or Minnesota
Rules, part 9553.0075, is not subject
to an adjustment otherwise taken under
this subdivision.
Notwithstanding section 14, these
adjustments shall not expire.
[REDUCE GROWTH IN MR/RC WAIVER.] The
commissioner shall reduce the growth in
the MR/RC waiver by not allocating the
300 additional diversion allocations
that are included in the February 2003
forecast for the fiscal years that
begin on July 1, 2003, and July 1, 2004.
[MANAGE THE GROWTH IN THE TBI WAIVER.]
During the fiscal years beginning on
July 1, 2003, and July 1, 2004, the
commissioner shall allocate money for
home and community-based programs
covered under Minnesota Statutes,
section 256B.49, to assure a reduction
in state spending that is equivalent to
limiting the caseload growth of the TBI
waiver to 150 in each year of the
biennium. Priorities for the
allocation of funds shall be for
individuals anticipated to be
discharged from institutional settings
or who are at imminent risk of a
placement in an institutional setting.
[TARGETED CASE MANAGEMENT FOR HOME CARE
RECIPIENTS.] Implementation of the
targeted case management benefit for
home care recipients, according to
Minnesota Statutes, section 256B.0621,
subdivisions 2, 3, 5, 6, 7, 9, and 10,
will be delayed until July 1, 2005.
[COMMON SERVICE MENU.] Implementation
of the common service menu option
within the home and community-based
waivers, according to Minnesota
Statutes, section 256B.49, subdivision
16, will be delayed until July 1, 2005.
[LIMITATION ON COMMUNITY ALTERNATIVES
FOR DISABLED INDIVIDUALS CASELOAD
GROWTH.] For the biennium ending June
30, 2005, the commissioner shall limit
the allocations made available in the
community alternatives for disabled
individuals waiver program in order not
to exceed average caseload growth of 95
per month from June 2003 program
levels, plus any additional
legislatively authorized program
growth. The commissioner shall
allocate available resources to achieve
the following outcomes:
(1) the establishment of feasible and
viable alternatives for persons in
institutional or hospital settings to
relocate to home and community-based
settings;
(2) the availability of timely
assistance to persons at imminent risk
of institutional or hospital placement
or whose health and safety is at
immediate risk; and
(3) the maximum provision of essential
community supports to eligible persons
in need of and waiting for home and
community-based service alternatives.
The commissioner may reallocate
resources from one county or region to
another if available funding in that
county or region is not likely to be
spent and the reallocation is necessary
to achieve the outcomes specified in
this paragraph.
(g) Medical Assistance Long-term
Care Facilities Grants
General 543,999,000 514,483,000
513,763,000 536,321,000
(h) Alternative Care Grants
General 75,206,000 66,351,000
[ALTERNATIVE CARE TRANSFER.] Any money
allocated to the alternative care
program that is not spent for the
purposes indicated does not cancel but
shall be transferred to the medical
assistance account.
[ALTERNATIVE CARE APPROPRIATION.] The
commissioner may expend the money
appropriated for the alternative care
program for that purpose in either year
of the biennium.
[ALTERNATIVE CARE IMPLEMENTATION OF
CHANGES TO FEES AND ELIGIBILITY.]
Changes to Minnesota Statutes, section
256B.0913, subdivision 4, paragraph
(d), and subdivision 12, are effective
July 1, 2003, for all persons found
eligible for the alternative care
program on or after July 1, 2003. All
recipients of alternative care funding
as of June 30, 2003, shall be subject
to Minnesota Statutes, section
256B.0913, subdivision 4, paragraph
(d), and subdivision 12, on the annual
reassessment and review of their
eligibility after July 1, 2003, but no
later than January 1, 2004.
(i) Group Residential Housing Grants
General 94,996,000 80,472,000
94,547,000 81,055,000
[GROUP RESIDENTIAL HOUSING COSTS
REFINANCED.] (1) Effective July 1,
2004, the commissioner shall increase
the home and community-based service
rates and county allocations provided
to programs for persons with
disabilities established under section
1915(c) of the Social Security Act to
the extent that these programs will be
paying for the costs above the rate
established in Minnesota Statutes,
section 256I.05, subdivision 1.
(2) For persons in receipt of services
under Minnesota Statutes, section
256B.0915, who reside in licensed adult
foster care beds for which a
supplemental room and board payment was
being made under Minnesota Statutes,
section 256I.05, subdivision 1,
counties may request an exception to
the individual caps specified in
Minnesota Statutes, section 256B.0915,
subdivision 3, paragraph (b), not to
exceed the difference between the
individual cap and the client's monthly
service expenditures plus the amount of
the supplemental room and board rate.
The county must submit a request to
exceed the individual cap to the
commissioner for approval.
(j) Chemical Dependency
Entitlement Grants
General 49,251,000 50,337,000
57,612,000 60,034,000
(k) Chemical Dependency Nonentitlement
Grants
General 1,055,000 1,055,000
Sec. 7. Laws 2003, First Special Session chapter 14,
article 13C, section 2, subdivision 11, is amended to read:
Subd. 11. Economic Support Grants
Summary by Fund
General 122,647,000 117,198,000
124,697,000 116,985,000
Federal TANF 199,009,000 207,224,000
212,844,000 209,264,000
The amounts that may be spent from this
appropriation for each purpose are as
follows:
(a) Minnesota Family Investment Program
General 59,922,000 39,375,000
53,818,000 43,942,000
Federal TANF 106,535,000 110,543,000
114,370,000 106,583,000
(b) Work Grants
General 666,000 14,678,000
8,666,000 8,678,000
Federal TANF 92,474,000 96,681,000
98,474,000 102,681,000
[MFIP SUPPORT SERVICES COUNTY AND
TRIBAL ALLOCATION.] When determining
the funds available for the
consolidated MFIP support services
grant in the 18-month period ending
December 31, 2004, the commissioner
shall apportion the funds appropriated
for fiscal year 2005 in such manner as
necessary to provide $14,000,000 more
to counties and tribes for the period
ending December 31, 2004, than would
have been available had the funds been
evenly divided within the fiscal year
between the period before December 31,
2004, and the period after December 31,
2004.
For allocations for the calendar years
starting January 1, 2005, the
commissioner shall apportion the funds
appropriated for each fiscal year in
such manner as necessary to provide
$14,000,000 more to counties and tribes
for the period ending December 31 of
that year than would have been
available had the funds been evenly
divided within the fiscal year between
the period before December 31 and the
period after December 31.
(c) Economic Support Grants - Other
Assistance
General 3,358,000 3,463,000
[SUPPORTIVE HOUSING.] Of the general
fund appropriation, $500,000 each year
is to provide services to families who
are participating in the supportive
housing and managed care pilot project
under Minnesota Statutes, section
256K.25. This appropriation shall not
become part of base level funding for
the biennium beginning July 1, 2007.
(d) Child Support Enforcement Grants
General 3,571,000 3,503,000
(e) General Assistance Grants
General 24,901,000 24,732,000
26,329,000 26,909,000
[GENERAL ASSISTANCE STANDARD.] The
commissioner shall set the monthly
standard of assistance for general
assistance units consisting of an adult
recipient who is childless and
unmarried or living apart from parents
or a legal guardian at $203. The
commissioner may reduce this amount
according to Laws 1997, chapter 85,
article 3, section 54.
[EMERGENCY GENERAL ASSISTANCE.] The
amount appropriated for emergency
general assistance funds is limited to
no more than $7,889,812 in each fiscal
year of 2004 and 2005. Funds to
counties shall be allocated by the
commissioner using the allocation
method specified in Minnesota Statutes,
section 256D.06.
(f) Minnesota Supplemental Aid Grants
General 30,229,000 31,447,000
28,955,000 30,490,000
[EMERGENCY MINNESOTA SUPPLEMENTAL AID
FUNDS.] The amount appropriated for
emergency Minnesota supplemental aid
funds is limited to no more than
$1,138,707 in fiscal year 2004 and
$1,017,000 in fiscal year 2005. Funds
to counties shall be allocated by the
commissioner using the allocation
method specified in Minnesota Statutes,
section 256D.46.
Sec. 8. Laws 2003, First Special Session chapter 14,
article 13C, section 10, subdivision 1, is amended to read:
Subdivision 1. Total
Appropriation $ 107,829,000 $ 92,649,000
106,221,000 97,564,000
Summary by Fund
General 104,489,000 89,309,000
102,881,000 92,224,000
State Special
Revenue 3,340,000 3,340,000
Sec. 9. Laws 2003, First Special Session chapter 14,
article 13C, section 10, subdivision 2, is amended to read:
Subd. 2. Child Care
[BASIC SLIDING FEE CHILD CARE.] Of this
appropriation, $27,628,000 in fiscal
year 2004 and $18,771,000 in fiscal
year 2005 are for child care assistance
according to Minnesota Statutes,
section 119B.03. These appropriations
are available to be spent either year.
The fiscal years 2006 and 2007 general
fund base for basic sliding fee child
care is $30,312,000 each year.
[MFIP CHILD CARE.] Of this
appropriation, $69,543,000 $67,935,000
in fiscal year 2004
and $63,720,000 $68,635,000 in fiscal
year 2005 are for MFIP child care.
[CHILD CARE PROGRAM INTEGRITY.] Of this
appropriation, $425,000 in fiscal year
2004, and $376,000 in fiscal year 2005
are for the administrative costs of
program integrity and fraud prevention
for child care assistance under
Minnesota Statutes, chapter 119B.
[CHILD CARE DEVELOPMENT.] Of this
appropriation, $1,115,000 in fiscal
year 2004, and $1,164,000 in fiscal
year 2005 are for child care
development grants according to
Minnesota Statutes, section 119B.21.
Sec. 10. [EFFECTIVE DATE.]
Sections 1 to 9 are effective the day following final
enactment, unless a different effective date is specified.
ARTICLE 3
ADDITIONAL REVENUES
Section 1. Minnesota Statutes 2003 Supplement, section
16A.152, subdivision 2, is amended to read:
Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] (a) 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 following accounts and purposes in priority order:
(1) the cash flow account established in subdivision 1
until that account reaches $350,000,000; and
(2) the budget reserve account established in subdivision
1a until that account reaches $653,000,000;
(3) the amount necessary to increase the aid payment
schedule for school district aids and credits payments in
section 127A.45 to not more than 90 percent; and
(4) the amount necessary to restore all or a portion of the
net aid reductions under section 127A.441 and to reduce the
property tax revenue recognition shift under section 123B.75,
subdivision 5, paragraph (c), and Laws 2003, First Special
Session chapter 9, article 5, section 34, as amended by Laws
2003, First Special Session chapter 23, section 20, by the same
amount.
(b) The amounts necessary to meet the requirements of this
section are appropriated from the general fund within two weeks
after the forecast is released or, in the case of transfers
under paragraph (a), clauses (3) and (4), as necessary to meet
the appropriations schedules otherwise established in statute.
(c) To the extent that a positive unrestricted budgetary
general fund balance is projected, appropriations under this
section must be made before any transfer is made under section
16A.1522.
(d) The commissioner of finance shall certify the total
dollar amount of the reductions under paragraph (a), clauses (3)
and (4), to the commissioner of education. The commissioner of
education shall increase the aid payment percentage and reduce
the property tax shift percentage by these amounts and apply
those reductions to the current fiscal year and thereafter.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
ARTICLE 4
PUBLIC FACILITIES AUTHORITY
Section 1. Minnesota Statutes 2002, section 446A.12,
subdivision 1, is amended to read:
Subdivision 1. [BONDING AUTHORITY.] The authority may
issue negotiable bonds in a principal amount that the authority
determines necessary to provide sufficient funds for achieving
its purposes, including the making of loans and purchase of
securities, the payment of interest on bonds of the authority,
the establishment of reserves to secure its bonds, the payment
of fees to a third party providing credit enhancement, and the
payment of all other expenditures of the authority incident to
and necessary or convenient to carry out its corporate purposes
and powers, but not including the making of grants. Bonds of
the authority may be issued as bonds or notes or in any other
form authorized by law. The principal amount of bonds issued
and outstanding under this section at any time may not exceed
$1,000,000,000 $1,250,000,000, excluding bonds for which
refunding bonds or crossover refunding bonds have been issued.
Sec. 2. Minnesota Statutes 2002, section 446A.14, is
amended to read:
446A.14 [INTEREST EXCHANGES RATE SWAPS AND OTHER
AGREEMENTS.]
The authority may enter into an agreement with a third
party for an exchange of interest rates under this subdivision.
With respect to outstanding obligations bearing interest at a
variable rate, the authority may agree to pay sums equal to
interest at a fixed rate or at a different variable rate
determined in accordance with a formula set out in the agreement
on an amount not exceeding the outstanding principal amount of
the obligations, in exchange for an agreement by the third party
to pay sums equal to interest on a similar amount at a variable
rate determined according to a formula set out in the agreement.
With respect to outstanding obligations bearing interest at a
fixed rate or rates, the authority may agree to pay sums equal
to interest at a variable rate determined according to a formula
set out in the agreement on an amount not exceeding the
outstanding principal amount of the obligations in exchange for
an agreement by the third party to pay sums equal to interest on
a similar amount at a fixed rate or rates set out in the
agreement. Subject to any applicable bonds covenants, payments
required to be made by the municipality under the swap agreement
may be made from amounts secured to pay debt service on the
obligations with respect to which the swap agreement was made
from any other available source of the authority. Subdivision 1.
[AGREEMENTS.] (a) The authority may enter into interest rate
exchange or swap agreements, hedges, forward purchase or sale
agreements, loan sale or pooling agreements or trusts, or other
similar agreements in connection with:
(1) the issuance or proposed issuance of bonds;
(2) the making, proposed making, or sale of loans or other
financial assistance or investments;
(3) outstanding bonds, loans, or other financial
assistance; or
(4) existing similar agreements.
(b) The agreements authorized by this subdivision include,
without limitation, master agreements, options or contracts to
enter into those agreements in the future and related
agreements, including, without limitation, agreements to provide
credit enhancement, liquidity, or remarketing; valuation;
monitoring; or administrative services currently or in the
future. However, the term of an option to enter into an
interest rate swap, exchange, hedge, or other similar agreement
and the term of a contract to sell, buy, or refund bonds in the
future must not exceed five years and the authorization of the
authority to enter into option agreements with respect to
interest rate swap agreements expires on December 31, 2008;
provided that the option agreements entered into prior to that
date remain valid agreements of the authority after that date.
(c) The agreements authorized by this subdivision or
supplements to master agreements may be entered into on the
basis of negotiation with a qualified third party or through a
competitive proposal process on terms and conditions and with
covenants and provisions approved by the authority and may
include, without limitation:
(1) provisions establishing reserves;
(2) pledging assets or revenues of the authority for
current or other payments or termination payments;
(3) contracting with the other parties to the agreements to
provide for the custody, collection, securing, investment, and
payment of money of the authority or money held in trust; or
(4) requiring the issuance of bonds or entering into loans
or other agreements authorized by this subdivision in the future.
(d) Subject to the terms of the agreement and other
agreements of the authority with bondholders or other third
parties, the agreements authorized by this subdivision may be
general or limited obligations of the authority payable from all
available or certain specified funds appropriated to the
authority. The agreements authorized by this subdivision do not
constitute debt of the authority for the purposes of the limits
on bonds or notes of the authority set forth in section 446A.12,
subdivision 1.
(e) The authority may issue bonds to provide funds to make
payments, including, without limitation, termination payments
pursuant to an agreement authorized by this subdivision.
(f) The aggregate notional amount of interest rate swap or
exchange agreements in effect at any time must not exceed an
amount equal to ten percent of the aggregate principal amount of
bonds the authority is authorized to have outstanding pursuant
to section 446A.12, subdivision 1, including the notional amount
of interest rate swap or exchange agreements with respect to
which a reversing agreement has been entered into, the effect of
which is to terminate the original agreement or a portion
thereof, and reversing agreements with respect to all or a
portion of existing agreements.
Subd. 2. [POWERS OF AUTHORITY.] For the purposes of this
section, the authority may exercise all powers provided in this
chapter. The authority may consent, whenever it considers it
necessary or desirable in connection with agreements entered
into under this subdivision, to modifications, amendments, or
waivers of the terms of the agreements. The proceeds of any
agreements entered into pursuant to this subdivision are
appropriated to the authority pursuant to section 446A.11,
subdivision 13. The agreements entered into pursuant to this
subdivision are not subject to sections 16C.03, subdivision 4,
and 16C.05.
Sec. 3. Minnesota Statutes 2002, section 446A.17, is
amended to read:
446A.17 [NONLIABILITY.]
Subdivision 1. [NONLIABILITY OF INDIVIDUALS.] No member of
the authority or other person executing the bonds, loans,
interest rate swaps, or other agreements or contracts of the
authority is liable personally on the bonds, loans, interest
rate swaps, or other agreements or contracts of the authority or
is subject to any personal liability or accountability by reason
of their issuance, execution, delivery, or performance.
Subd. 2. [NONLIABILITY OF STATE.] The state is not liable
on bonds, loans, interest rate swaps, or other agreements or
contracts of the authority issued or entered into under this
chapter and those bonds the bonds, loans, interest rate swaps,
or other agreements or contracts of the authority are not a debt
of the state. The bonds, loans, interest rate swaps, or other
agreements or contracts of the authority must contain on their
face a statement to that effect.
Sec. 4. Minnesota Statutes 2002, section 446A.19, is
amended to read:
446A.19 [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.]
The state pledges and agrees with the holders of bonds
issued under sections 446A.051, and 446A.12 to 446A.20 or other
parties to any loans, interest rate swaps, or other agreements
or contracts of the authority that the state will not limit or
alter the rights vested in the authority to fulfill the terms of
any agreements made with the bondholders or parties to any
loans, interest rate swaps, or other agreements or contracts of
the authority or in any way impair the rights and remedies of
the holders until the bonds, together with interest on them,
with interest on any unpaid installments of interest, and all
costs and expenses in connection with any action or proceeding
by or on behalf of the bondholders, are fully met and discharged
or, with respect to any loans, interest rate swaps, or other
agreements or contracts of the authority, the agreements have
been fully performed by the authority or otherwise terminated or
discharged. The authority may include this pledge and agreement
of the state in any agreement with the holders of bonds issued
under sections 446A.051, and 446A.12 to 446A.20 or in any loans,
interest rate swaps, or other agreements or contracts of the
authority.
Presented to the governor May 18, 2004
Signed by the governor May 29, 2004, 1:20 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes