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Office of the Revisor of Statutes

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

                            CHAPTER 155-H.F.No. 2448 
                  An act relating to forecast adjustments; making 
                  forecast adjustments for prekindergarten through grade 
                  12 education and human services programs; providing 
                  for human services savings; appropriating money; 
                  amending Minnesota Statutes 2004, sections 256B.0595, 
                  subdivision 2; 256B.0625, subdivisions 13e, 13f, by 
                  adding subdivisions; Laws 2003, First Special Session 
                  chapter 9, article 1, section 53, subdivision 2, as 
                  amended; Laws 2003, First Special Session chapter 9, 
                  article 1, section 53, subdivision 3, as amended; Laws 
                  2003, First Special Session chapter 9, article 1, 
                  section 53, subdivision 5, as amended; Laws 2003, 
                  First Special Session chapter 9, article 1, section 
                  53, subdivision 6, as amended; Laws 2003, First 
                  Special Session chapter 9, article 1, section 53, 
                  subdivision 11, as amended; Laws 2003, First Special 
                  Session chapter 9, article 1, section 53, subdivision 
                  12, as amended; Laws 2003, First Special Session 
                  chapter 9, article 2, section 55, subdivision 2, as 
                  amended; Laws 2003, First Special Session chapter 9, 
                  article 2, section 55, subdivision 5, as amended; Laws 
                  2003, First Special Session chapter 9, article 2, 
                  section 55, subdivision 7, as amended; Laws 2003, 
                  First Special Session chapter 9, article 2, section 
                  55, subdivision 8; Laws 2003, First Special Session 
                  chapter 9, article 2, section 55, subdivision 9, as 
                  amended; Laws 2003, First Special Session chapter 9, 
                  article 2, section 55, subdivision 12, as amended; 
                  Laws 2003, First Special Session chapter 9, article 3, 
                  section 20, subdivision 2; Laws 2003, First Special 
                  Session chapter 9, article 3, section 20, subdivision 
                  4, as amended; Laws 2003, First Special Session 
                  chapter 9, article 3, section 20, subdivision 5, as 
                  amended; Laws 2003, First Special Session chapter 9, 
                  article 3, section 20, subdivision 6, as amended; Laws 
                  2003, First Special Session chapter 9, article 3, 
                  section 20, subdivision 7, as amended; Laws 2003, 
                  First Special Session chapter 9, article 3, section 
                  20, subdivision 8, as amended; Laws 2003, First 
                  Special Session chapter 9, article 3, section 20, 
                  subdivision 9, as amended; Laws 2003, First Special 
                  Session chapter 9, article 3, section 20, subdivision 
                  10; Laws 2003, First Special Session chapter 9, 
                  article 4, section 31, subdivision 2, as amended; Laws 
                  2003, First Special Session chapter 9, article 4, 
                  section 31, subdivision 3, as amended; Laws 2003, 
                  First Special Session chapter 9, article 4, section 
                  31, subdivision 4; Laws 2003, First Special Session 
                  chapter 9, article 5, section 35, subdivision 2, as 
                  amended; Laws 2003, First Special Session chapter 9, 
                  article 5, section 35, subdivision 3, as amended; Laws 
                  2003, First Special Session chapter 9, article 6, 
                  section 4, as amended; Laws 2003, First Special 
                  Session chapter 9, article 7, section 11, subdivision 
                  2; Laws 2003, First Special Session chapter 9, article 
                  7, section 11, subdivision 3, as amended; Laws 2003, 
                  First Special Session chapter 9, article 7, section 
                  11, subdivision 4; Laws 2003, First Special Session 
                  chapter 9, article 8, section 7, subdivision 2, as 
                  amended; Laws 2003, First Special Session chapter 9, 
                  article 8, section 7, subdivision 3; Laws 2003, First 
                  Special Session chapter 9, article 8, section 7, 
                  subdivision 5, as amended; Laws 2003, First Special 
                  Session chapter 9, article 9, section 9, subdivision 
                  2, as amended; proposing coding for new law in 
                  Minnesota Statutes, chapter 501B. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                   PREKINDERGARTEN THROUGH GRADE 12 EDUCATION 
                            A.  FORECAST ADJUSTMENTS 
           Section 1.  Laws 2003, First Special Session chapter 9, 
        article 1, section 53, subdivision 2, as amended by Laws 2004, 
        chapter 272, article 1, section 1, is amended to read: 
           Subd. 2.  [GENERAL EDUCATION AID.] For general education 
        aid under Minnesota Statutes, section 126C.13, subdivision 4: 
            $4,726,466,000    .....     2004
            $5,026,983,000 $5,281,781,000     .....     2005
           The 2004 appropriation includes $860,552,000 for 2003 and 
        $3,865,914,000 for 2004. 
           The 2005 appropriation includes 
        $1,009,822,000 $1,009,526,000 for 2004 
        and $4,017,161,000 $4,272,255,000 for 2005.  
           Sec. 2.  Laws 2003, First Special Session chapter 9, 
        article 1, section 53, subdivision 3, as amended by Laws 2004, 
        chapter 272, article 1, section 2, 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: 
            $8,096,000    .....     2004 
            $8,596,000 $9,007,000    .....     2005 
           The 2004 appropriation includes $1,419,000 for 2003 and 
        $6,677,000 for 2004.  
           The 2005 appropriation includes $1,669,000 for 2004 and 
        $6,927,000 $7,338,000 for 2005. 
           Sec. 3.  Laws 2003, First Special Session chapter 9, 
        article 1, section 53, subdivision 5, as amended by Laws 2004, 
        chapter 272, article 1, section 3, is amended to read: 
           Subd. 5.  [ABATEMENT REVENUE.] For abatement aid under 
        Minnesota Statutes, section 127A.49:  
            $2,436,000     .....     2004 
            $1,559,000 $1,498,000     .....     2005 
           The 2004 appropriation includes $472,000 for 2003 and 
        $1,964,000 for 2004.  
           The 2005 appropriation includes $491,000 for 2004 and 
        $1,068,000 $1,007,000 for 2005.  
           Sec. 4.  Laws 2003, First Special Session chapter 9, 
        article 1, section 53, subdivision 6, as amended by Laws 2004, 
        chapter 272, article 1, section 4, is amended to read: 
           Subd. 6.  [CONSOLIDATION TRANSITION.] For districts 
        consolidating under Minnesota Statutes, section 123A.485: 
            $ 35,000     .....     2004 
            $145,000 $-0-     .....     2005 
           The 2004 appropriation includes $35,000 for 2003 and $0 for 
        2004. 
           The 2005 appropriation includes $0 for 2004 and $145,000 
        for 2005. 
           Sec. 5.  Laws 2003, First Special Session chapter 9, 
        article 1, section 53, subdivision 11, as amended by Laws 2004, 
        chapter 272, article 1, section 5, 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: 
            $14,411,000    .....     2004 
            $15,072,000 $15,304,000    .....     2005 
           The 2004 appropriation includes $2,715,000 for 2003 and 
        $11,696,000 for 2004. 
           The 2005 appropriation includes $2,923,000 for 2004 and 
        $12,149,000 $12,381,000 for 2005. 
           Sec. 6.  Laws 2003, First Special Session chapter 9, 
        article 1, section 53, subdivision 12, as amended by Laws 2004, 
        chapter 272, article 1, section 6, is amended to read: 
           Subd. 12.  [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 
        pupil transportation aid under Minnesota Statutes, section 
        123B.92, subdivision 9: 
            $20,471,000    .....     2004 
            $21,421,000 $21,703,000    .....     2005 
           The 2004 appropriation includes $3,990,000 for 2003 and 
        $16,481,000 for 2004. 
           The 2005 appropriation includes $4,120,000 for 2004 and 
        $17,301,000 $17,583,000 for 2005. 
                            B.  EDUCATION EXCELLENCE
           Sec. 7.  Laws 2003, First Special Session chapter 9, 
        article 2, section 55, subdivision 2, as amended by Laws 2004, 
        chapter 272, article 1, section 7, is amended to read: 
           Subd. 2.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
        lease aid under Minnesota Statutes, section 124D.11, subdivision 
        4: 
            $16,753,000    .....     2004 
            $21,347,000 $21,410,000    .....     2005 
           The 2004 appropriation includes $2,524,000 for 2003 and 
        $14,229,000 for 2004. 
           The 2005 appropriation includes $3,557,000 for 2004 and 
        $17,790,000 $17,853,000 for 2005.  
           Sec. 8.  Laws 2003, First Special Session chapter 9, 
        article 2, section 55, subdivision 5, as amended by Laws 2004, 
        chapter 272, article 1, section 10, is amended to read: 
           Subd. 5.  [INTEGRATION AID.] For integration aid under 
        Minnesota Statutes, section 124D.86, subdivision 5: 
            $55,911,000    .....     2004 
            $55,893,000 $57,756,000    .....     2005 
           The 2004 appropriation includes $8,428,000 for 2003 and 
        $47,483,000 for 2004. 
           The 2005 appropriation includes $11,870,000 for 2004 and 
        $44,023,000 $45,886,000 for 2005.  
           Sec. 9.  Laws 2003, First Special Session chapter 9, 
        article 2, section 55, subdivision 7, as amended by Laws 2004, 
        chapter 272, article 1, section 11, is amended to read: 
           Subd. 7.  [MAGNET SCHOOL STARTUP AID.] For magnet school 
        startup aid under Minnesota Statutes, section 124D.88: 
            $ 37,000     .....     2004 
            $ 40,000     .....     2005 
           The 2004 appropriation includes $37,000 for 2003 and $0 for 
        2004.  
           The 2005 appropriation includes $0 for 2004 and $40,000 for 
        2005. 
           Sec. 10.  Laws 2003, First Special Session chapter 9, 
        article 2, section 55, subdivision 8, is amended to read: 
           Subd. 8.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
        TRANSPORTATION GRANTS.] For interdistrict desegregation or 
        integration transportation grants under Minnesota Statutes, 
        section 124D.87: 
             $5,796,000    .....     2004 
             $8,401,000 $5,279,000    .....     2005
           Sec. 11.  Laws 2003, First Special Session chapter 9, 
        article 2, section 55, subdivision 9, as amended by Laws 2004, 
        chapter 272, article 1, section 12, is amended to read: 
           Subd. 9.  [SUCCESS FOR THE FUTURE.] For American Indian 
        success for the future grants under Minnesota Statutes, section 
        124D.81: 
            $2,061,000    .....     2004
            $2,137,000 $2,229,000    .....     2005
           The 2004 appropriation includes $351,000 for 2003 and 
        $1,710,000 for 2004. 
           The 2005 appropriation includes $427,000 for 2004 and 
        $1,710,000 $1,802,000 for 2005. 
           Sec. 12.  Laws 2003, First Special Session chapter 9, 
        article 2, section 55, subdivision 12, as amended by Laws 2004, 
        chapter 272, article 1, section 13, is amended to read:  
           Subd. 12.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
        school aid under Minnesota Statutes, section 124D.83: 
            $1,617,000    .....     2004
            $2,185,000 $2,203,000    .....     2005
           The 2004 appropriation includes $285,000 for 2003 and 
        $1,332,000 for 2004. 
           The 2005 appropriation includes $333,000 for 2004 and 
        $1,852,000 $1,870,000 for 2005. 
                              C.  SPECIAL PROGRAMS
           Sec. 13.  Laws 2003, First Special Session chapter 9, 
        article 3, section 20, subdivision 2, is amended to read: 
           Subd. 2.  [SPECIAL EDUCATION; REGULAR.] For special 
        education aid under Minnesota Statutes, section 125A.75: 
             $515,091,000  .....     2004 
             $529,460,000 $552,214,000  .....     2005 
           The 2004 appropriation includes $90,577,000 for 2003 and 
        $424,514,000 for 2004. 
           The 2005 appropriation includes $106,128,000 for 2004 and 
        $423,332,000 $446,086,000 for 2005. 
           Sec. 14.  Laws 2003, First Special Session chapter 9, 
        article 3, section 20, subdivision 4, as amended by Laws 2004, 
        chapter 272, article 1, section 14, 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: 
            $2,311,000     .....     2004 
            $2,550,000 $3,155,000     .....     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, as amended by Laws 2004, 
        chapter 272, article 1, section 15, 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: 
            $173,000    .....     2004 
            $178,000 $187,000    .....     2005 
           The 2004 appropriation includes $34,000 for 2003 and 
        $139,000 for 2004. 
           The 2005 appropriation includes $34,000 for 2004 and 
        $144,000 $153,000 for 2005. 
           Sec. 16.  Laws 2003, First Special Session chapter 9, 
        article 3, section 20, subdivision 6, as amended by Laws 2004, 
        chapter 272, article 1, section 16, is amended to read: 
           Subd. 6.  [SPECIAL EDUCATION; EXCESS COSTS.] For excess 
        cost aid under Minnesota Statutes, section 125A.79, subdivision 
        7: 
            $92,605,000     .....     2004 
            $92,799,000 $95,572,000     .....     2005 
           The 2004 appropriation includes $41,754,000 for 2003 and 
        $50,851,000 for 2004. 
           The 2005 appropriation includes $41,216,000 for 2004 and 
        $51,583,000 $54,356,000 for 2005.  
           Sec. 17.  Laws 2003, First Special Session chapter 9, 
        article 3, section 20, subdivision 7, as amended by Laws 2004, 
        chapter 272, article 1, section 17, 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: 
            $201,000     .....     2004 
            $150,000 $109,000     .....     2005 
           Sec. 18.  Laws 2003, First Special Session chapter 9, 
        article 3, section 20, subdivision 8, as amended by Laws 2004, 
        chapter 272, article 1, section 18, 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: 
            $8,570,000     .....     2004 
            $8,760,000 $9,176,000     .....     2005 
           The 2004 appropriation includes $1,516,000 for 2003 and 
        $7,054,000 for 2004.  
           The 2005 appropriation includes $1,763,000 for 2004 and 
        $6,997,000 $7,413,000 for 2005.  
           Sec. 19.  Laws 2003, First Special Session chapter 9, 
        article 3, section 20, subdivision 9, as amended by Laws 2004, 
        chapter 272, article 1, section 19, 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: 
            $36,000     .....     2004 
            $61,000 $62,000     .....     2005 
           Sec. 20.  Laws 2003, First Special Session chapter 9, 
        article 3, section 20, subdivision 10, is amended to read: 
           Subd. 10.  [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For 
        special education out-of-state tuition according to Minnesota 
        Statutes, section 125A.79, subdivision 8: 
             $250,000      .....     2004 
             $250,000 $208,000      .....     2005 
                         D.  FACILITIES AND TECHNOLOGY
           Sec. 21.  Laws 2003, First Special Session chapter 9, 
        article 4, section 31, subdivision 2, as amended by Laws 2004, 
        chapter 272, article 1, section 21, is amended to read: 
           Subd. 2.  [HEALTH AND SAFETY REVENUE.] For health and 
        safety aid according to Minnesota Statutes, section 123B.57, 
        subdivision 5: 
            $5,356,000    .....     2004 
            $1,920,000 $2,099,000    .....     2005 
           The 2004 appropriation includes $1,516,000 for 2003 and 
        $3,840,000 for 2004. 
           The 2005 appropriation includes $960,000 for 2004 and 
        $960,000 $1,139,000 for 2005. 
           Sec. 22.  Laws 2003, First Special Session chapter 9, 
        article 4, section 31, subdivision 3, as amended by Laws 2004, 
        chapter 272, article 1, section 22, is amended to read: 
           Subd. 3.  [DEBT SERVICE EQUALIZATION.] For debt service aid 
        according to Minnesota Statutes, section 123B.53, subdivision 6: 
            $35,598,000     .....     2004 
            $31,220,000 $32,495,000     .....     2005 
           The 2004 appropriation includes $5,586,000 for 2003 and 
        $30,012,000 for 2004. 
           The 2005 appropriation includes $7,503,000 for 2004 and 
        $23,717,000 $24,992,000 for 2005. 
           Sec. 23.  Laws 2003, First Special Session chapter 9, 
        article 4, section 31, subdivision 4, is amended to read: 
           Subd. 4.  [ALTERNATIVE FACILITIES BONDING AID.] For 
        alternative facilities bonding aid, according to Minnesota 
        Statutes, section 123B.59, subdivision 1: 
             $18,708,000    .....     2004 
             $19,287,000 $20,116,000   .....     2005 
           The 2004 appropriation includes $3,278,000 for 2003 and 
        $15,430,000 for 2004. 
           The 2005 appropriation includes $3,857,000 for 2004 and 
        $15,430,000 $16,259,000 for 2005. 
                E.  NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS
           Sec. 24.  Laws 2003, First Special Session chapter 9, 
        article 5, section 35, subdivision 2, as amended by Laws 2004, 
        chapter 272, article 1, section 23, is amended to read: 
           Subd. 2.  [SCHOOL LUNCH.] For school lunch aid according to 
        Minnesota Statutes, section 124D.111, and Code of Federal 
        Regulations, title 7, section 210.17:  
            $7,650,000    .....     2004 
            $7,760,000 $7,671,000    .....     2005 
           Sec. 25.  Laws 2003, First Special Session chapter 9, 
        article 5, section 35, subdivision 3, as amended by Laws 2004, 
        chapter 272, article 1, section 24, 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: 
            $4,382,000    .....     2004 
            $4,460,000 $4,548,000    .....     2005 
                                 F.  LIBRARIES
           Sec. 26.  Laws 2003, First Special Session chapter 9, 
        article 6, section 4, as amended by Laws 2004, chapter 272, 
        article 1, section 25, and Laws 2004, chapter 286, section 3, 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: 
            $8,312,000     .....     2004 
            $8,570,000 $8,939,000     .....     2005 
           The 2004 appropriation includes $1,456,000 for 2003 and 
        $6,856,000 for 2004. 
           The 2005 appropriation includes $1,714,000 for 2004 and 
        $6,856,000 $7,225,000 for 2005. 
           Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
        regional library telecommunications aid under Minnesota 
        Statutes, section 134.355: 
            $960,000     .....     2004
            $1,200,000 $1,252,000     .....     2005
           The 2004 appropriation includes $960,000 for 2004. 
           The 2005 appropriation includes $240,000 for 2004 and 
        $960,000 $1,012,000 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 $942,000       .....     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 $762,000 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. 27.  Laws 2003, First Special Session chapter 9, 
        article 7, section 11, subdivision 2, is amended to read: 
           Subd. 2.  [SCHOOL READINESS.] For revenue for school 
        readiness programs under Minnesota Statutes, sections 124D.15 
        and 124D.16: 
             $ 9,536,000    .....     2004
             $ 9,258,000 $9,594,000   .....     2005
           The 2004 appropriation includes $1,605,000 for 2003 and 
        $7,931,000 for 2004. 
           The 2005 appropriation includes $1,982,000 for 2004 and 
        $7,276,000 $7,612,000 for 2005.  
           Sec. 28.  Laws 2003, First Special Session chapter 9, 
        article 7, section 11, subdivision 3, as amended by Laws 2004, 
        chapter 272, article 1, section 26, is amended to read: 
           Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 
        childhood family education aid under Minnesota Statutes, section 
        124D.135: 
            $19,079,000    .....     2004 
            $14,407,000 $13,956,000    .....     2005 
           The 2004 appropriation includes $3,239,000 for 2003 and 
        $15,840,000 for 2004.  
           The 2005 appropriation includes $3,959,000 for 2004 and 
        $10,448,000 $9,997,000 for 2005.  
           Sec. 29.  Laws 2003, First Special Session chapter 9, 
        article 7, section 11, subdivision 4, is amended to read: 
           Subd. 4.  [HEALTH AND DEVELOPMENTAL SCREENING AID.] For 
        health and developmental screening aid under Minnesota Statutes, 
        sections 121A.17 and 121A.19: 
             $2,581,000    .....     2004 
             $2,661,000 $2,776,000    .....     2005 
           The 2004 appropriation includes $452,000 for 2003 and 
        $2,129,000 for 2004.  
           The 2005 appropriation includes $532,000 for 2004 and 
        $2,129,000 $2,244,000 for 2005.  
                                 H.  PREVENTION
           Sec. 30.  Laws 2003, First Special Session chapter 9, 
        article 8, section 7, subdivision 2, as amended by Laws 2004, 
        chapter 272, article 1, section 27, is amended to read: 
           Subd. 2.  [COMMUNITY EDUCATION AID.] For community 
        education aid under Minnesota Statutes, section 124D.20: 
            $5,351,000    .....     2004 
            $3,137,000 $3,198,000    .....     2005 
           The 2004 appropriation includes $956,000 for 2003 and 
        $4,395,000 for 2004.  
           The 2005 appropriation includes $1,098,000 for 2004 and 
        $2,039,000 $2,100,000 for 2005.  
           Sec. 31.  Laws 2003, First Special Session chapter 9, 
        article 8, section 7, subdivision 3, is amended to read: 
           Subd. 3.  [ADULTS WITH DISABILITIES PROGRAM AID.] For 
        adults with disabilities programs under Minnesota Statutes, 
        section 124D.56: 
             $688,000       .....     2004 
             $710,000 $741,000      .....     2005 
           The 2004 appropriation includes $120,000 for 2003 and 
        $568,000 for 2004.  
           The 2005 appropriation includes $142,000 for 2004 and 
        $568,000 $599,000 for 2005. 
           Sec. 32.  Laws 2003, First Special Session chapter 9, 
        article 8, section 7, subdivision 5, as amended by Laws 2004, 
        chapter 272, article 1, section 28, is amended to read: 
           Subd. 5.  [SCHOOL-AGE CARE REVENUE.] For extended day care 
        aid under Minnesota Statutes, section 124D.22: 
            $40,000    .....     2004 
            $24,000 $30,000    .....     2005
           The 2004 appropriation includes $14,000 for 2003 and 
        $26,000 for 2004. 
           The 2005 appropriation includes $6,000 for 2004 and 
        $18,000 $24,000 for 2005. 
                   I.  SELF-SUFFICIENCY AND LIFELONG LEARNING
           Sec. 33.  Laws 2003, First Special Session chapter 9, 
        article 9, section 9, subdivision 2, as amended by Laws 2004, 
        chapter 272, article 1, section 29, 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:  
            $33,014,000    .....     2004 
            $35,808,000 $37,444,000    .....     2005 
           The 2004 appropriation includes $5,827,000 for 2003 and 
        $27,187,000 for 2004.  
           The 2005 appropriation includes $6,796,000 for 2004 and 
        $29,012,000 $30,648,000 for 2005.  
           Sec. 34.  [EFFECTIVE DATE.] 
           This article is effective the day following final enactment.

                                   ARTICLE 2 
                      HUMAN SERVICES FORECAST ADJUSTMENTS 
        Section 1.  [DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.] 
           The dollar amounts shown are added to or, if shown in 
        parentheses, are subtracted from the appropriations in Laws 
        2003, First Special Session chapter 14, as amended by Laws 2004, 
        chapter 272, or other law, and are appropriated from the general 
        fund, or any other fund named, to the Department of Human 
        Services for the purposes specified in this article, to be 
        available for the fiscal year indicated for each purpose.  The 
        figure "2005" used in this article means that the appropriation 
        or appropriations listed are available for the fiscal year 
        ending June 30, 2005. 
                                SUMMARY BY FUND
                                                                  2005  
        General Fund                                          33,797,000 
        Health Care Access                                   (33,947,000)
        TANF                                                 (17,645,000)
        TOTAL                                                (17,795,000)
        Sec. 2.  COMMISSIONER OF HUMAN SERVICES 
        Subdivision 1.  Total
        Appropriation                                        (17,795,000)
                                Summary by Fund
        General                                33,797,000 
        Health Care Access                    (33,947,000)
        TANF                                  (17,645,000)
        Subd. 2.  Revenue and Pass-Through 
        TANF                                                    (814,000)
        Subd. 3.  Basic Health Care Grants 
        General                                               44,502,000 
        Health Care Access                                   (33,947,000)
        The amount that may be spent from this 
        appropriation for each purpose is as 
        follows: 
        (a) MinnesotaCare   
        Health Care Access                                   (33,947,000)
        (b) MA Basic Health Care - Families and Children
        General                                               39,343,000
        (c) MA Basic Health Care - Elderly and Disabled 
        General                                              (20,641,000)
        (d) General Assistance Medical Care 
        General                                               25,800,000
        Subd. 4.  Continuing Care Grants 
        General                                              (12,968,000)
        The amount that may be spent from this 
        appropriation for each purpose is as 
        follows: 
        (a) MA Long-Term Care Waivers
        General                                               (6,218,000)
        (b) MA Long-Term Care Facilities
        General                                              (15,645,000)
        (c) Group Residential Housing
        General                                                6,017,000
        (d) Chemical Dependency Entitlement Grants
        General                                                2,878,000
        Subd. 5.  Economic Support Grants 
        General                                               22,940,000 
        TANF                                                 (16,831,000)
        The amount that may be spent from this 
        appropriation for each purpose is as 
        follows: 
        (a) Minnesota Family Investment Program 
        General                                               21,000,000
        TANF                                                 (16,831,000)
        (b) General Assistance                                 2,840,000 
        (c) Minnesota Supplemental Aid                          (900,000)
        Subd. 6.  Child Care 
        Total Appropriation                                  (20,677,000)
        General Fund                       (20,677,000)

                                   ARTICLE 3 
                             HUMAN SERVICES SAVINGS 
           Section 1.  Minnesota Statutes 2004, 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 first day of the month after 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 on the first day of the month after the 
        month in which the first uncompensated transfer was made.  If 
        the transfer was reported to the local agency after the date 
        that advance notice of a period of ineligibility that affects 
        the next month could be provided to the recipient and the 
        recipient received medical assistance services or the transfer 
        was not reported to the local agency, and the applicant or 
        recipient 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 $200, 
        then such transfers shall be disregarded for each month prior to 
        the month of application for or during receipt of medical 
        assistance. 
           [EFFECTIVE DATE.] This section is effective for transfers 
        occurring on or after July 1, 2005. 
           Sec. 2.  Minnesota Statutes 2004, section 256B.0625, is 
        amended by adding a subdivision to read: 
           Subd. 3c.  [HEALTH SERVICES POLICY COMMITTEE.] The 
        commissioner, after receiving recommendations from professional 
        physician associations, professional associations representing 
        licensed nonphysician health care professionals, and consumer 
        groups, shall establish a 13-member Health Services Policy 
        Committee, which consists of 12 voting members and one nonvoting 
        member.  The Health Services Policy Committee shall advise the 
        commissioner regarding health services pertaining to the 
        administration of health care benefits covered under the medical 
        assistance, general assistance medical care, and MinnesotaCare 
        programs.  The Health Services Policy Committee shall meet at 
        least quarterly.  The Health Services Policy Committee shall 
        annually elect a physician chair from among its members, who 
        shall work directly with the commissioner's medical director, to 
        establish the agenda for each meeting. 
           Sec. 3.  Minnesota Statutes 2004, section 256B.0625, is 
        amended by adding a subdivision to read: 
           Subd. 3d.  [HEALTH SERVICES POLICY COMMITTEE MEMBERS.] The 
        Health Services Policy Committee consists of: 
           (1) seven voting members who are licensed physicians 
        actively engaged in the practice of medicine in Minnesota, one 
        of whom must be actively engaged in the treatment of persons 
        with mental illness, and three of whom must represent health 
        plans currently under contract to serve medical assistance 
        recipients; 
           (2) two voting members who are physician specialists 
        actively practicing their specialty in Minnesota; 
           (3) two voting members who are nonphysician health care 
        professionals licensed or registered in their profession and 
        actively engaged in their practice of their profession in 
        Minnesota; 
           (4) one consumer who shall serve as a voting member; and 
           (5) the commissioner's medical director who shall serve as 
        a nonvoting member.  
           Members of the Health Services Policy Committee shall not 
        be employed by the Department of Human Services, except for the 
        medical director. 
           Sec. 4.  Minnesota Statutes 2004, section 256B.0625, is 
        amended by adding a subdivision to read: 
           Subd. 3e.  [HEALTH SERVICES POLICY COMMITTEE TERMS AND 
        COMPENSATION.] Committee members shall serve staggered 
        three-year terms, with one-third of the voting members' terms 
        expiring annually.  Members may be reappointed by the 
        commissioner.  The commissioner may require more frequent Health 
        Services Policy Committee meetings as needed.  An honorarium of 
        $200 per meeting and reimbursement for mileage and parking shall 
        be paid to each committee member in attendance except the 
        medical director.  The Health Services Policy Committee does not 
        expire as provided in section 15.059, subdivision 6.  
           Sec. 5.  Minnesota Statutes 2004, section 256B.0625, 
        subdivision 13e, is amended to read: 
           Subd. 13e.  [PAYMENT RATES.] (a) 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 amount of payment 
        basis must be reduced to reflect all discount amounts applied to 
        the charge by any provider/insurer agreement or contract for 
        submitted charges to medical assistance programs.  The net 
        submitted charge may not be greater than the patient liability 
        for the service.  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 11.5 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 11.5 percent deduction.  The actual 
        acquisition cost of antihemophilic factor drugs shall be 
        estimated at the average wholesale price minus 30 percent.  The 
        maximum allowable cost of a multisource drug may be set by the 
        commissioner and it shall be comparable to, but no higher than, 
        the maximum amount paid by other third-party payors in this 
        state who have maximum allowable cost programs.  Establishment 
        of the amount of payment for drugs shall not be subject to the 
        requirements of the Administrative Procedure Act.  
           (b) 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.  
           (c) Whenever a generically equivalent product is available, 
        payment shall be on the basis of the actual acquisition cost of 
        the generic drug, or on the maximum allowable cost established 
        by the commissioner. 
           (d) 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 paragraphs (a) to (c) or the amount 
        established for Medicare by the United States Department of 
        Health and Human Services pursuant to title XVIII, section 1847a 
        of the federal Social Security Act. 
           (e) The commissioner may negotiate lower reimbursement 
        rates for specialty pharmacy products than the rates specified 
        in paragraph (a).  The commissioner may require individuals 
        enrolled in the health care programs administered by the 
        department to obtain specialty pharmacy products from providers 
        with whom the commissioner has negotiated lower reimbursement 
        rates.  Specialty pharmacy products are defined as those used by 
        a small number of recipients or recipients with complex and 
        chronic diseases that require expensive and challenging drug 
        regimens.  Examples of these conditions include, but are not 
        limited to:  multiple sclerosis, HIV/AIDS, transplantation, 
        hepatitis C, growth hormone deficiency, Crohn's Disease, 
        rheumatoid arthritis, and certain forms of cancer.  Specialty 
        pharmaceutical products include injectable and infusion 
        therapies, biotechnology drugs, high-cost therapies, and 
        therapies that require complex care.  The commissioner shall 
        consult with the formulary committee to develop a list of 
        specialty pharmacy products subject to this paragraph.  In 
        consulting with the formulary committee in developing this list, 
        the commissioner shall take into consideration the population 
        served by specialty pharmacy products, the current delivery 
        system and standard of care in the state, and access to care 
        issues.  The commissioner shall have the discretion to adjust 
        the reimbursement rate to prevent access to care issues. 
           Sec. 6.  Minnesota Statutes 2004, section 256B.0625, 
        subdivision 13f, is amended to read: 
           Subd. 13f.  [PRIOR AUTHORIZATION.] (a) The Formulary 
        Committee shall review and recommend drugs which require prior 
        authorization.  The Formulary Committee shall establish general 
        criteria to be used for the prior authorization of brand-name 
        drugs for which generically equivalent drugs are available, but 
        the committee is not required to review each brand-name drug for 
        which a generically equivalent drug is available.  
           (b) Prior authorization may be required by the commissioner 
        before certain formulary drugs are eligible for payment.  The 
        Formulary Committee may recommend drugs for prior authorization 
        directly to the commissioner.  The commissioner may also request 
        that the Formulary Committee review a drug for prior 
        authorization.  Before the commissioner may require prior 
        authorization for a drug: 
           (1) the commissioner must provide information to the 
        Formulary Committee on the impact that placing the drug on prior 
        authorization may have on the quality of patient care and on 
        program costs, information regarding whether the drug is subject 
        to clinical abuse or misuse, and relevant data from the state 
        Medicaid program if such data is available; 
           (2) the Formulary Committee must review the drug, taking 
        into account medical and clinical data and the information 
        provided by the commissioner; and 
           (3) the Formulary Committee must hold a public forum and 
        receive public comment for an additional 15 days. 
        The commissioner must provide a 15-day notice period before 
        implementing the prior authorization.  
           (c) Prior authorization shall not be required or utilized 
        for any atypical antipsychotic drug prescribed for the treatment 
        of mental illness if: 
           (1) there is no generically equivalent drug available; and 
           (2) the drug was initially prescribed for the recipient 
        prior to July 1, 2003; or 
           (3) the drug is part of the recipient's current course of 
        treatment. 
        This paragraph applies to any multistate preferred drug list or 
        supplemental drug rebate program established or administered by 
        the commissioner. 
           (d) Prior authorization shall not be required or utilized 
        for any antihemophilic factor drug prescribed for the treatment 
        of hemophilia and blood disorders where there is no generically 
        equivalent drug available if the prior authorization is used in 
        conjunction with any supplemental drug rebate program or 
        multistate preferred drug list established or administered by 
        the commissioner.  This paragraph expires July 1, 2005. 
           (e) The commissioner may require prior authorization for 
        brand name drugs whenever a generically equivalent product is 
        available, even if the prescriber specifically indicates 
        "dispense as written-brand necessary" on the prescription as 
        required by section 151.21, subdivision 2. 
           (f) Notwithstanding this subdivision, the commissioner may 
        automatically require prior authorization, for a period not to 
        exceed 180 days, for any drug that is approved by the United 
        States Food and Drug Administration on or after July 1, 2005.  
        The 180-day period begins no later than the first day that a 
        drug is available for shipment to pharmacies within the state.  
        The Formulary Committee shall recommend to the commissioner 
        general criteria to be used for the prior authorization of the 
        drugs, but the committee is not required to review each 
        individual drug.  In order to continue prior authorizations for 
        a drug after the 180-day period has expired, the commissioner 
        must follow provisions of this subdivision. 
           Sec. 7.  [501B.895] [PUBLIC HEALTH CARE PROGRAMS AND 
        CERTAIN TRUSTS.] 
           (a) It is the public policy of this state that individuals 
        use all available resources to pay for the cost of long-term 
        care services, as defined in section 256B.0595, before turning 
        to Minnesota health care program funds, and that trust 
        instruments should not be permitted to shield available 
        resources of an individual or an individual's spouse from such 
        use.  
           (b) When a state or local agency makes a determination on 
        an application by the individual or the individual's spouse for 
        payment of long-term care services through a Minnesota public 
        health care program pursuant to chapter 256B, any irrevocable 
        inter-vivos trust or any legal instrument, device, or 
        arrangement similar to an irrevocable inter-vivos trust created 
        on or after July 1, 2005, containing assets or income of an 
        individual or an individual's spouse, including those created by 
        a person, court, or administrative body with legal authority to 
        act in place of, at the direction of, upon the request of, or on 
        behalf of the individual or individual's spouse, becomes 
        revocable for the sole purpose of that determination.  For 
        purposes of this section, any inter-vivos trust and any legal 
        instrument, device, or arrangement similar to an inter-vivos 
        trust: 
           (1) shall be deemed to be located in and subject to the 
        laws of this state; and 
           (2) is created as of the date it is fully executed by or on 
        behalf of all of the settlors or others.  
           (c) For purposes of this section, a legal instrument, 
        device, or arrangement similar to an irrevocable inter-vivos 
        trust means any instrument, device, or arrangement which 
        involves a grantor who transfers or whose property is 
        transferred by another including, but not limited to, any court, 
        administrative body, or anyone else with authority to act on 
        their behalf or at their direction, to an individual or entity 
        with fiduciary, contractual, or legal obligations to the grantor 
        or others to be held, managed, or administered by the individual 
        or entity for the benefit of the grantor or others.  These legal 
        instruments, devices, or other arrangements are irrevocable 
        inter-vivos trusts for purposes of this section. 
           (d) In the event of a conflict between this section and the 
        provisions of an irrevocable trust created on or after July 1, 
        2005, this section shall control. 
           (e) This section does not apply to trusts that qualify as 
        supplemental needs trusts under section 501B.89 or to trusts 
        meeting the criteria of United States Code, title 42, section 
        1396p (d)(4)(a) and (c) for purposes of eligibility for medical 
        assistance. 
           (f) This section applies to all trusts first created on or 
        after July 1, 2005, as permitted under United States Code, title 
        42, section 1396p, and to all interests in real or personal 
        property regardless of the date on which the interest was 
        created, reserved, or acquired. 
           Sec. 8.  [LIMITING WAIVER GROWTH.] 
           (a) For each year of the biennium ending June 30, 2007, the 
        commissioner shall limit the new diversion caseload growth in 
        the MR/RC waiver to 75 additional allocations.  Notwithstanding 
        Minnesota Statutes, section 256B.0916, subdivision 5, paragraph 
        (b), the available diversion allocations shall be awarded to 
        support individuals whose health and safety needs result in an 
        imminent risk of an institutional placement at any time during 
        the fiscal year. 
           (b) For each year of the biennium ending June 30, 2007, the 
        commissioner of human services shall make available additional 
        allocations for community alternatives for disabled individuals 
        waivered services covered under Minnesota Statutes, section 
        256B.49, at a rate of 105 per month or 1,260 per year, plus any 
        additional legislatively authorized growth.  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. 
           (c) For each year of the biennium ending June 30, 2007, the 
        commissioner shall make available additional allocations for 
        traumatic brain injury waivered services covered under Minnesota 
        Statutes, section 256B.49, at a rate of 165 per year.  
        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. 
           Presented to the governor May 31, 2005 
           Signed by the governor June 3, 2005, 9:00 a.m.