Minnesota Session Laws - 2006, Regular Session

CHAPTER 282--H.F.No. 4162

An act

relating to the financing of state government; making supplemental appropriations for early childhood and family prekindergarten through grade 12, and postsecondary education; environment, natural resources, and agriculture; clean water legacy; economic development, transportation; public safety; state government; veterans affairs; miscellaneous health and human services; health care federal compliance; children and families federal compliance; assisted living; long-term care; modifying certain statutory provisions and laws; providing for certain programs; fixing and limiting fees; authorizing rulemaking; requiring reports; appropriating money;

amending Minnesota Statutes 2004, sections 43A.17, subdivision 4; 62A.045; 62S.05, by adding a subdivision; 62S.08, subdivision 3; 62S.081, subdivision 4; 62S.10, subdivision 2; 62S.13, by adding a subdivision; 62S.14, subdivision 2; 62S.15; 62S.20, subdivision 1; 62S.24, subdivisions 1, 3, 4, by adding subdivisions; 62S.25, subdivision 6, by adding a subdivision; 62S.26; 62S.266, subdivision 2; 62S.29, subdivision 1; 62S.30; 84.0835, subdivision 3; 85.32, subdivision 1; 97A.028, subdivision 3; 114D.30, subdivision 2, as added; 119B.13, by adding a subdivision; 123B.57, subdivision 6; 124D.518, subdivision 4; 124D.52, subdivision 1; 125A.27, subdivisions 7, 8, 11, 15, 18; 125A.29; 125A.30; 125A.32; 125A.33; 125A.48; 136A.101, subdivision 8; 136A.15, subdivision 9; 136A.1701, subdivisions 4, 7; 137.022, subdivision 4; 137.17, subdivisions 1, 3; 144.0724, subdivisions 3, 4; 144.6501, subdivision 6; 144A.071, subdivisions 4a, 4c; 144A.10, by adding a subdivision; 144A.161, subdivisions 1, 2, 3, 4, 5, 5a, 5c, 6, 8, by adding a subdivision; 144A.4605; 144D.01, by adding a subdivision; 144D.015; 144D.02; 144D.03, subdivision 2, by adding a subdivision; 144D.04; 144D.05; 144D.065; 181.101; 216C.41, subdivision 4; 256.01, by adding a subdivision; 256B.02, subdivision 9; 256B.056, subdivision 2, by adding subdivisions; 256B.0595, subdivisions 1, 3, 4; 256B.0625, subdivision 20; 256B.0945, subdivision 1; 256B.431, by adding a subdivision; 256B.434, by adding subdivisions; 256B.437, subdivision 3; 256B.438, subdivision 4; 256B.69, subdivision 9, by adding a subdivision; 256B.76; 256J.021; 256J.626, subdivision 2; 256L.04, subdivision 10; 256L.11, by adding a subdivision; 256L.17, subdivision 2; 326.105; 469.334, subdivisions 1, 4; 518.551, subdivision 7; Minnesota Statutes 2005 Supplement, sections 35.05; 119B.13, subdivisions 1, 7; 121A.19; 124D.111, subdivision 1; 124D.135, subdivision 1; 124D.175; 124D.531, subdivision 1; 125A.28; 144.1476, subdivision 4; 144A.071, subdivision 1a; 216C.41, subdivision 3; 256B.0571; 256B.0595, subdivision 2; 256B.06, subdivision 4; 256B.0918, subdivisions 1, 3, 4; 256B.0946, subdivision 1; 256B.434, subdivision 4; 256B.5012, subdivision 6; 256B.69, subdivision 23; 256D.03, subdivision 3; 256L.03, subdivision 5; 299A.641, subdivision 3; 299A.78; Laws 1998, chapter 404, section 15, subdivision 2, as amended; Laws 2005, chapter 136, article 1, section 10; Laws 2005, First Special Session chapter 1, article 2, section 3, subdivision 2; article 3, section 2, subdivision 4; Laws 2005, First Special Session chapter 4, article 7, section 55; article 9, section 5, subdivision 8; Laws 2005, First Special Session chapter 5, article 1, sections 47; 54, subdivisions 2, 3, 5, 6, 7, 8; article 2, section 84, subdivisions 2, 3, 4, 6, 7, 10; article 3, section 18, subdivisions 2, 3, 4, 5, 6, 7; article 4, section 25, subdivisions 2, 3, 4, 6; article 5, section 17, subdivisions 2, 3; article 6, section 1, subdivisions 2, 3, 5; article 7, section 20, subdivisions 2, 3, 4; article 8, section 8, subdivisions 2, 3, 5; proposing coding for new law in Minnesota Statutes, chapters 4; 16E; 43A; 62S; 85; 116J; 116U; 120B; 122A; 124D; 144; 144A; 144D; 197; 245; 256; 256B; 256D; 299A; 341; proposing coding for new law as Minnesota Statutes, chapter 144G; repealing Minnesota Statutes 2004, sections 62J.694; 116J.543; 137.17, subdivisions 2, 4; 144.395; 245.465, subdivision 2; 256B.0945, subdivisions 5, 6, 7, 8, 9; 256B.83; Minnesota Statutes 2005 Supplement, section 256B.0571, subdivisions 2, 5, 11; Minnesota Rules, part 4668.0215.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

SUMMARY

Section 1. new text begin APPROPRIATIONS SUMMARY. new text end

new text begin (General Fund Only, Excluding Forecast Adjustments) new text end
new text begin APPROPRIATIONS new text end		new text begin 2006 new text end		new text begin 2007 new text end		new text begin TOTAL new text end
new text begin Early Childhood Education new text end	new text begin $ new text end	new text begin 124,000 new text end	new text begin $ new text end	new text begin 14,926,000 new text end	new text begin $ new text end	new text begin 15,050,000 new text end
new text begin K-12 Education new text end		new text begin 5,469,000 new text end		new text begin 2,764,000 new text end		new text begin 8,233,000 new text end
new text begin Higher Education new text end				new text begin 5,000,000 new text end		new text begin 5,000,000 new text end
new text begin Environment & Agriculture new text end		new text begin 577,000 new text end		new text begin 1,838,000 new text end		new text begin 2,415,000 new text end
new text begin Clean Water Legacy new text end				new text begin 15,000,000 new text end		new text begin 15,000,000 new text end
new text begin Economic Development new text end				new text begin 29,552,000 new text end		new text begin 29,552,000 new text end
new text begin Transportation new text end				new text begin 692,000 new text end		new text begin 692,000 new text end
new text begin Public Safety new text end		new text begin 3,846,000 new text end		new text begin 15,774,000 new text end		new text begin 19,620,000 new text end
new text begin State Government new text end				new text begin 2,422,000 new text end		new text begin 2,422,000 new text end
new text begin Veterans Affairs new text end		new text begin 250,000 new text end		new text begin 3,230,000 new text end		new text begin 3,480,000 new text end
new text begin Health & Human Services new text end		new text begin 30,989,000 new text end		new text begin 75,663,000 new text end		new text begin 106,652,000 new text end
new text begin SUBTOTAL new text end	new text begin $ new text end	new text begin 41,255,000 new text end	new text begin $ new text end	new text begin 166,861,000 new text end	new text begin $ new text end	new text begin 208,116,000 new text end
new text begin CANCELLATIONS new text end		new text begin 250,000 new text end				new text begin 250,000 new text end
new text begin TRANSFERS IN new text end		new text begin 2,933,000 new text end				new text begin 2,933,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 38,072,000 new text end	new text begin $ new text end	new text begin 166,861,000 new text end	new text begin $ new text end	new text begin 204,933,000 new text end

ARTICLE 2

EARLY CHILDHOOD EDUCATION

Section 1. new text begin EARLY EDUCATION APPROPRIATIONS. new text end			new text begin $ new text end		new text begin $ new text end
new text begin The sums shown in the columns marked "APPROPRIATIONS" are added to or, if shown in parentheses, subtracted from the appropriations in Laws 2005, First Special Session chapter 4, article 9, or other law to the agencies and for the purposes specified in this article. The appropriations are from the general fund or another named fund and are available for the fiscal years indicated for each purpose. The figures "2006" and "2007" used in this article mean that the addition to or subtraction from the appropriation listed under them is available for the fiscal year ending June 30, 2006, or June 30, 2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 2007. "The biennium" is fiscal years 2006 and 2007. Supplementary appropriations and reductions to appropriations for the fiscal year ending June 30, 2006, are effective the day following final enactment. new text end

new text begin Subdivision 1. new text end new text begin Summary new text end
new text begin SUMMARY BY FUND new text end
		new text begin 2006 new text end		new text begin 2007 new text end		new text begin TOTAL new text end
new text begin General new text end	new text begin $ new text end	new text begin 124,000 new text end	new text begin $ new text end	new text begin 14,926,000 new text end	new text begin $ new text end	new text begin 15,050,000 new text end
	new text begin new text end		new text begin new text end		new text begin new text end

new text begin Subd. 2. new text end new text begin Department of Human Services; basic sliding fee child care waiting list new text end

new text begin (a) For child care assistance for eligible families on the basic sliding fee waiting list under Minnesota Statutes, section 119B.03, subdivision 2, as of July 1, 2006. new text end

new text begin General Fund new text end

new text begin -0- new text end

new text begin 3,842,000 new text end

new text begin (b) For basic sliding fee child care assistance grants in fiscal year 2007 new text end

new text begin -0- new text end

new text begin 4,055,000 new text end

new text begin The general fund base is increased by $1,596,000 in fiscal year 2008 and $1,732,000 in fiscal year 2009 for basic sliding fee child care assistance grants. new text end

new text begin (c) For the state share of systems cost to implement the provider rate differential for accreditation new text end

new text begin -0- new text end

new text begin 3,000 new text end

new text begin (d) As determined by the commissioner, counties may use up to six percent of either calendar year 2008 or 2009 allocations under Minnesota Statutes, section 119B.03, to fund accelerated payments that may occur during the preceding calendar year during conversion to the automated child care assistance program system. If conversion occurs over two calendar years, counties may use up to three percent of the combined calendar year allocations to fund accelerated payments. Funding advanced under this subdivision shall be considered part of the allocation from which it was originally advanced for purposes of setting future allocations under Minnesota Statutes, section 119B.03, subdivisions 6, 6a, 6b, and 8, and shall include funding for administrative costs under Minnesota Statutes, section 119B.15. Notwithstanding the provisions of any section to the contrary, this provision shall sunset December 31, 2009. new text end

new text begin (e) Increased child care funds from the federal Deficit Reduction Act of 2005 may be allocated by the commissioner for the basic sliding fee child care program. new text end

Sec. 2.

Minnesota Statutes 2005 Supplement, section 119B.13, subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

deleted text begin (a)(i) Effective July 1, 2005, the commissioner of human services shall modify the rate tables for child care centers published in Department of Human Services Bulletin No. 03-68-07 so that in counties with regional or statewide cells, the higher of the 100th percentile of the 2002 market rate survey data or the rate currently identified in the bulletin will be the maximum rate. The rates established in this clause will be considered as the previous year's rates for purposes of the increase in item (iii), and shall be compared to the 100th percentile of current market rates. deleted text end

deleted text begin (ii) For the period between July 1, 2005, and through the full implementation of the new rates under item (iii), the rates published in Department of Human Services Bulletin No. 03-68-07 as adjusted by item (i) shall remain in effect. deleted text end

deleted text begin (iii) deleted text end new text begin (a) new text end Beginning deleted text begin January deleted text end new text begin July new text end 1, 2006, the maximum rate paid for child care assistance in any county or multicounty region under the child care fund shall be the deleted text begin lesser of the 75th percentile rate for like-care arrangements in the county or multicounty region as surveyed by the commissioner or the previous year's deleted text end rate for like-care arrangements in the county new text begin effective January 1, 2006, new text end increased by percent.

deleted text begin (iv) deleted text end new text begin (b) new text end Rate changes shall be implemented for services provided in deleted text begin March deleted text end new text begin September new text end 2006 unless a participant eligibility redetermination or a new provider agreement is completed between deleted text begin January deleted text end new text begin July new text end 1, 2006, and deleted text begin February 28 deleted text end new text begin August 31 new text end , 2006. deleted text begin deleted text end

As necessary, appropriate notice of adverse action must be made according to Minnesota Rules, part 3400.0185, subparts 3 and 4.

New cases approved on or after deleted text begin January deleted text end new text begin July new text end 1, 2006, shall have the maximum rates under deleted text begin item (iii) deleted text end new text begin paragraph (a), new text end implemented immediately.

deleted text begin (b) deleted text end new text begin (c) new text end Not less than once every two years, the commissioner shall survey rates charged by child care providers in Minnesota to determine the 75th percentile for like-care arrangements in counties. When the commissioner determines that, using the commissioner's established protocol, the number of providers responding to the survey is too small to determine the 75th percentile rate for like-care arrangements in a county or multicounty region, the commissioner may establish the 75th percentile maximum rate based on like-care arrangements in a county, region, or category that the commissioner deems to be similar.

deleted text begin (c) deleted text end new text begin (d) new text end A rate which includes a special needs rate paid under subdivision 3 may be in excess of the maximum rate allowed under this subdivision.

deleted text begin (d) deleted text end new text begin (e) new text end The department shall monitor the effect of this paragraph on provider rates. The county shall pay the provider's full charges for every child in care up to the maximum established. The commissioner shall determine the maximum rate for each type of care on an hourly, full-day, and weekly basis, including special needs and handicapped care.

deleted text begin (e) deleted text end new text begin (f) new text end When the provider charge is greater than the maximum provider rate allowed, the parent is responsible for payment of the difference in the rates in addition to any family co-payment fee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 3.

Minnesota Statutes 2004, section 119B.13, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Provider rate differential for accreditation. new text end

new text begin A family child care provider or child care center shall be paid a 15 percent differential above the maximum rate established in subdivision 1, up to the actual provider rate, if the provider or center holds a current early childhood development credential or is accredited. For a family child care provider, early childhood development credential and accreditation includes an individual who has earned a child development associate degree, a diploma in child development from a Minnesota state technical college, or a bachelor's degree in early childhood education from an accredited college or university, or who is accredited by the National Association for Family Child Care or the Competency Based Training and Assessment Program. For a child care center, accreditation includes accreditation by the National Association for the Education of Young Children, the Council on Accreditation, the National Early Childhood Program Accreditation, the National School-Age Care Association, or the National Head Start Association Program of Excellence. For Montessori programs, accreditation includes the American Montessori Society, Association of Montessori International-USA, or the National Center for Montessori Education. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 4.

Minnesota Statutes 2005 Supplement, section 119B.13, subdivision 7, is amended to read:

Subd. 7.

Absent days.

new text begin (a) new text end Child care providers may not be reimbursed for more than 25 new text begin full-day new text end absent days per child, excluding holidays, in a fiscal year, or for more than ten consecutive new text begin full-day new text end absent days, unless the child has a documented medical condition that causes more frequent absences. Documentation of medical conditions must be on the forms and submitted according to the timelines established by the commissioner. new text begin If a child attends for part of the time authorized to be in care in a day, but is absent for part of the time authorized to be in care in that same day, the absent time will be reimbursed but the time will not count toward the ten consecutive or 25 cumulative absent day limits. If a child attends part of an authorized day, payment to the provider must be for the full amount of care authorized for that day. Child care providers may only be reimbursed for absent days if the provider has a written policy for child absences and charges all other families in care for similar absences. new text end

new text begin (b) Child care providers must be reimbursed for up to ten federal or state holidays or designated holidays per year when the provider charges all families for these days and the holiday or designated holiday falls on a day when the child is authorized to be in attendance. Parents may substitute other cultural or religious holidays for the ten recognized state and federal holidays. Holidays do not count toward the ten consecutive or 25 cumulative absent day limits. new text end

new text begin (c) A family or child care provider may not be assessed an overpayment for an absent day payment unless (1) there was an error in the amount of care authorized for the family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) the family or provider did not timely report a change as required under law. new text end

new text begin (d) The provider and family must receive notification of the number of absent days used upon initial provider authorization for a family and when the family has used 15 cumulative absent days. Upon statewide implementation of the Minnesota Electronic Child Care System, the provider and family authorization for a family and ongoing notification of the number of absent days used as of the date of the notification. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 5.

Minnesota Statutes 2005 Supplement, section 121A.19, is amended to read:

121A.19 DEVELOPMENTAL SCREENING AID.

Each school year, the state must pay a district deleted text begin $50 deleted text end for each deleted text begin three-year-old child screened; $40 for each four-year-old child screened; and $30 for each five-year-old deleted text end child new text begin or student new text end screened by the district deleted text begin prior to kindergarten deleted text end according to the requirements of section 121A.17. new text begin The amount of state aid for each child or student screened shall be: (1) $50 for a child screened at age three; (2) $40 for a child screened at age four; (3) $30 for a child screened at age five or six prior to kindergarten; and (4) $30 for a student screened within 30 days after first enrolling in a public school kindergarten if the student has not previously been screened according to the requirements of section 121A.17. new text end If this amount of aid is insufficient, the district may permanently transfer from the general fund an amount that, when added to the aid, is sufficient. new text begin Developmental screening aid shall not be paid for any student who is screened more than 30 days after the first day of attendance at a public school kindergarten, except if a student transfers to another public school kindergarten within 30 days after first enrolling in a Minnesota public school kindergarten program. In this case, if the student has not been screened, the district to which the student transfers may receive developmental screening aid for screening that student when the screening is performed within 30 days of the transfer date. new text end

Sec. 6.

new text begin [124D.129] EDUCATE PARENTS PARTNERSHIP. new text end

new text begin The commissioner may work in partnership with health care providers and community organizations to provide parent information to parents of newborns at the time of birth. The commissioner may coordinate the partnership and the distribution of informational material to the parents of newborns before they leave the hospital with early childhood organizations, including, but not limited to, early childhood family education, child care resource and referral, and interagency early intervention committees. The commissioner may develop a resource Web site that promotes, at a minimum, the department Web site for information and links to resources on child development, parent education, child care, and consumer safety information. new text end

Sec. 7.

Minnesota Statutes 2005 Supplement, section 124D.135, subdivision 1, is amended to read:

Subdivision 1.

Revenue.

The revenue for early childhood family education programs for a school district equals deleted text begin $96 for fiscal year 2005 and $104 deleted text end new text begin $112 new text end for fiscal year deleted text begin 2006 deleted text end new text begin 2007 new text end and later, times the greater of:

(1) 150; or

(2) the number of people under five years of age residing in the district on October 1 of the previous school year.

Sec. 8.

new text begin [124D.162] KINDERGARTEN READINESS ASSESSMENT. new text end

new text begin The commissioner of education may implement a kindergarten readiness assessment representative of incoming kindergartners. The assessment must be based on the Department of Education Kindergarten Readiness Assessment at kindergarten entrance study. new text end

Sec. 9.

Minnesota Statutes 2005 Supplement, section 124D.175, is amended to read:

124D.175 MINNESOTA EARLY LEARNING FOUNDATION deleted text begin PROPOSAL deleted text end .

(a) The commissioner must new text begin make a grant to the Minnesota Early Learning Foundation to new text end implement an early childhood development grant program for low-income and other challenged families that increases the effectiveness and expands the capacity of public and nonpublic early childhood development programs, which may include child care programs, and leads to improved early childhood parent education and children's kindergarten readiness. The program must include:

(1) grant awards to existing early childhood development program providers that also provide parent education programs and to qualified providers proposing to implement pilot programs for this same purpose;

(2) grant awards to enable low-income families to participate in these programs;

(3) grant awards to improve overall programmatic quality; and

(4) an evaluation of the programmatic and financial efficacy of all these programs, which may be performed using measures of services, staffing, and management systems that provide consistent information about system performance, show trends, confirm successes, and identify potential problems in early childhood development programs.

This grant program must not supplant existing early childhood development programs or child care funds.

(b) The commissioner must deleted text begin contract with deleted text end new text begin make a grant to new text end a private nonprofit, section 501(c)(3) organization to implement the requirements of paragraph (a). The private nonprofit organization must be governed by a board of directors composed of members from the public and nonpublic sectors, where the nonpublic sector members compose a simple majority of board members and where the public sector members are state and local government officials, kindergarten through grade 12 or postsecondary educators, and early childhood providers appointed by the governor. Membership on the board of directors by a state agency official are work duties for the official and are not a conflict of interest under section 43A.38. The board of directors must appoint an executive director and must seek advice from geographically and ethnically diverse parents of young children and representatives of early childhood development providers, kindergarten through grade 12 and postsecondary educators, public libraries, and the business sector.

The board of directors is subject to the open meeting law under chapter 13D. All other terms and conditions under which board members serve and operate must be described in the articles and bylaws of the organization. The private nonprofit organization is not a state agency and is not subject to laws governing public agencies except the provisions of chapter 13, salary limits under section 15A.0815, subdivision 2, and audits by the legislative auditor under chapter 3 apply.

(c) new text begin In addition to the duties under paragraph (a), the Minnesota Early Learning Foundation (MELF) shall evaluate the effectiveness of the voluntary NorthStar Quality Improvement and Rating System. The NorthStar Quality Improvement and Rating System must: new text end

new text begin (1) provide consumer information for parents on child care and early education program quality and ratings; new text end

new text begin (2) set indicators to identify quality in care and early education settings, including licensed family child care and centers, tribal providers and programs, Head Start and school-age programs, and identify quality programs through ratings and ongoing monitoring of programs; new text end

new text begin (3) provide funds for provider improvement grants and quality achievement grants; new text end

new text begin (4) require participating providers to incorporate the state's early learning standards in their curriculum activities and develop appropriate child assessments aligned with the kindergarten readiness assessment; new text end

new text begin (5) provide accountability for the NorthStar Quality Improvement and Rating System's effectiveness in improving child outcomes and kindergarten readiness; and new text end

new text begin (6) align current and new state investments to improve the quality of child care with the NorthStar Quality Improvement and Rating System framework, by providing accountability and informed parent choice. new text end

new text begin The Minnesota Early Learning Foundation shall report back to the legislature by January 15, 2008, on the progress being made under this paragraph. new text end

new text begin (d) new text end This section expires June 30, 2011. If no state appropriation is made for purposes of this section, the commissioner must not implement paragraphs (a) and (b).

Sec. 10.

Minnesota Statutes 2004, section 124D.518, subdivision 4, is amended to read:

Subd. 4.

First prior program year.

"First prior program year" means the deleted text begin period from May 1 of the second prior fiscal year through April 30 of the first prior fiscal year deleted text end new text begin specific time period defined by the commissioner that aligns to a program academic year new text end .

Sec. 11.

Minnesota Statutes 2004, section 124D.52, subdivision 1, is amended to read:

Subdivision 1.

Program requirements.

(a) An adult basic education program is a day or evening program offered by a district that is for people over 16 years of age who do not attend an elementary or secondary school. The program offers academic instruction necessary to earn a high school diploma or equivalency certificate.

(b) Notwithstanding any law to the contrary, a school board or the governing body of a consortium offering an adult basic education program may adopt a sliding fee schedule based on a family's income, but must waive the fee for participants who are under the age of 21 or unable to pay. The fees charged must be designed to enable individuals of all socioeconomic levels to participate in the program. A program may charge a security deposit to assure return of materials, supplies, and equipment.

(c) Each approved adult basic education program must develop a memorandum of understanding with the local workforce development centers located in the approved program's service delivery area. The memorandum of understanding must describe how the adult basic education program and the workforce development centers will cooperate and coordinate services to provide unduplicated, efficient, and effective services to clients.

(d) Adult basic education aid must be spent for adult basic education purposes as specified in sections 124D.518 to 124D.531.

new text begin (e) A state-approved adult basic education program must count and submit student contact hours for a program that offers high school credit toward an adult high school diploma according to student eligibility requirements and competency demonstration requirements established by the commissioner. new text end

Sec. 12.

Minnesota Statutes 2005 Supplement, section 124D.531, subdivision 1, is amended to read:

Subdivision 1.

State total adult basic education aid.

(a) The state total adult basic education aid for fiscal year 2005 is $36,509,000. The state total adult basic education aid for fiscal year 2006 deleted text begin and later is $36,509,000 deleted text end new text begin equals $36,587,000 new text end plus any amount that is not paid for during the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. new text begin The state total adult basic education aid for fiscal year 2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The state total adult basic education aid for later fiscal years equals: new text end

new text begin (1) the state total adult basic education aid for the preceding fiscal year plus any amount that is not paid for during the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times new text end

new text begin (2) the lesser of: new text end

new text begin (i) 1.03; or new text end

new text begin (ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior program year to the state total contact hours in the second prior program year. new text end

Beginning in fiscal year 2002, two percent of the state total adult basic education aid must be set aside for adult basic education supplemental service grants under section 124D.522.

(b) The state total adult basic education aid, excluding basic population aid, equals the difference between the amount computed in paragraph (a), and the state total basic population aid under subdivision 2.

Sec. 13.

Minnesota Statutes 2004, section 125A.27, subdivision 7, is amended to read:

Subd. 7.

Early intervention system.

"Early intervention system" means the total effort in the state to meet the needs of eligible children and their families deleted text begin , including, but not limited to: deleted text end new text begin . new text end

deleted text begin (1) any public agency in the state that receives funds under the Individuals with Disabilities Education Act, United States Code, title 20, sections 1471 to 1485 (Part C, Public Law 102-119); deleted text end

deleted text begin (2) other state and local agencies administering programs involved in the provision of early intervention services, including, but not limited to: deleted text end

deleted text begin (i) the Maternal and Child Health program under title V of the Social Security Act, United States Code, title 42, sections 701 to 709; deleted text end

deleted text begin (ii) the Individuals with Disabilities Education Act, United States Code, title 20, sections 1411 to 1420 (Part B); deleted text end

deleted text begin (iii) medical assistance under the Social Security Act, United States Code, title 42, section 1396 et seq.; deleted text end

deleted text begin (iv) the Developmental Disabilities Assistance and Bill of Rights Act, United States Code, title 42, sections 6021 to 6030 (Part B); and deleted text end

deleted text begin (v) the Head Start Act, United States Code, title 42, sections 9831 to 9852; and deleted text end

deleted text begin (3) services provided by private groups or third-party payers in conformity with an individualized family service plan. deleted text end

Sec. 14.

Minnesota Statutes 2004, section 125A.27, subdivision 8, is amended to read:

Subd. 8.

Eligibility for Part C.

"Eligibility for Part C" means eligibility for early childhood special education under section 125A.02 and Minnesota Rules deleted text begin , part 3525.2335, subpart 1, items A and B deleted text end .

Sec. 15.

Minnesota Statutes 2004, section 125A.27, subdivision 11, is amended to read:

Subd. 11.

Interagency child find systems.

"Interagency child find systems" means activities developed on an interagency basis with the involvement of interagency early intervention committees and other relevant community groups new text begin using rigorous standards new text end to actively seek out, identify, and refer infants and young children new text begin , new text end with, or at risk of, disabilities, and their families new text begin , including a child under the age of three who: (1) is involved in a substantiated case of abuse or neglect, or (2) is identified as affected by illegal substance abuse, or withdrawal symptoms resulting from prenatal drug exposure, to reduce the need for future services new text end .

Sec. 16.

Minnesota Statutes 2004, section 125A.27, subdivision 15, is amended to read:

Subd. 15.

Part C state plan.

"Part C state plan" means the annual state plan application approved by the federal government deleted text begin under the Individuals with Disabilities Education Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law 105-117) deleted text end .

Sec. 17.

Minnesota Statutes 2004, section 125A.27, subdivision 18, is amended to read:

Subd. 18.

State lead agency.

"State lead agency" means the state agency receiving federal funds deleted text begin under the Individuals with Disabilities Education Act, United States Code, title 20, section 1471 et seq. (Part H, Public Law 102-119) deleted text end new text begin for the purposes of providing early intervention services new text end .

Sec. 18.

Minnesota Statutes 2005 Supplement, section 125A.28, is amended to read:

125A.28 STATE INTERAGENCY COORDINATING COUNCIL.

An Interagency Coordinating Council of at least 17, but not more than 25 members is established, in compliance with Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end , section deleted text begin 682 deleted text end new text begin 641 new text end . The members must be appointed by the governor. Council members must elect the council chair. The representative of the commissioner may not serve as the chair. The council must be composed of at least five parents, including persons of color, of children with disabilities under age 12, including at least three parents of a child with a disability under age seven, five representatives of public or private providers of services for children with disabilities under age five, including a special education director, county social service director, local Head Start director, and a community health services or public health nursing administrator, one member of the senate, one member of the house of representatives, one representative of teacher preparation programs in early childhood-special education or other preparation programs in early childhood intervention, at least one representative of advocacy organizations for children with disabilities under age five, one physician who cares for young children with special health care needs, one representative each from the commissioners of commerce, education, health, human services, a representative from the state agency responsible for child care, new text begin foster care, mental health, homeless coordinator of education of homeless children and youth, new text end and a representative from Indian health services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council. The council must meet at least quarterly.

The council must address methods of implementing the state policy of developing and implementing comprehensive, coordinated, multidisciplinary interagency programs of early intervention services for children with disabilities and their families.

The duties of the council include recommending policies to ensure a comprehensive and coordinated system of all state and local agency services for children under age five with disabilities and their families. The policies must address how to incorporate each agency's services into a unified state and local system of multidisciplinary assessment practices, individual intervention plans, comprehensive systems to find children in need of services, methods to improve public awareness, and assistance in determining the role of interagency early intervention committees.

On the date that Minnesota Part C Annual Performance Report is submitted to the federal Office of Special Education, the council must recommend to the governor and the commissioners of education, health, human services, commerce, and employment and economic development policies for a comprehensive and coordinated system.

Notwithstanding any other law to the contrary, the State Interagency Coordinating Council expires on June 30, 2009.

Sec. 19.

Minnesota Statutes 2004, section 125A.29, is amended to read:

125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL BOARDS.

(a) It is the joint responsibility of county boards and school boards to coordinate, provide, and pay for appropriate services, and to facilitate payment for services from public and private sources. Appropriate services for children eligible under section 125A.02 must be determined in consultation with parents, physicians, and other educational, medical, health, and human services providers. The services provided must be in conformity with new text begin : new text end

new text begin (1) new text end an IFSP for each eligible infant and toddler from birth through age two and deleted text begin its deleted text end new text begin the infant's or toddler's new text end family deleted text begin , deleted text end new text begin including: new text end

new text begin (i) American Indian infants and toddlers with disabilities and their families residing on a reservation geographically located in the state; new text end

new text begin (ii) infants and toddlers with disabilities who are homeless children and their families; and new text end

new text begin (iii) infants and toddlers with disabilities who are wards of the state; new text end or

new text begin (2) new text end an individual education plan (IEP) or individual service plan (ISP) for each eligible child ages three through four.

(b) Appropriate services include family education and counseling, home visits, occupational and physical therapy, speech pathology, audiology, psychological services, special instruction, nursing, respite, nutrition, assistive technology, transportation and related costs, social work, vision services, case management including service coordination under section 125A.33, medical services for diagnostic and evaluation purposes, early identification, and screening, assessment, and health services necessary to enable children with disabilities to benefit from early intervention services.

(c) School and county boards shall coordinate early intervention services. In the absence of agreements established according to section 125A.39, service responsibilities for children birth through age two are as follows:

(1) school boards must provide, pay for, and facilitate payment for special education and related services required under sections 125A.05 and 125A.06;

(2) county boards must provide, pay for, and facilitate payment for noneducational services of social work, psychology, transportation and related costs, nursing, respite, and nutrition services not required under clause (1).

(d) School and county boards may develop an interagency agreement according to section 125A.39 to establish agency responsibility that assures early intervention services are coordinated, provided, paid for, and that payment is facilitated from public and private sources.

(e) County and school boards must jointly determine the primary agency in this cooperative effort and must notify the commissioner of the state lead agency of their decision.

Sec. 20.

Minnesota Statutes 2004, section 125A.30, is amended to read:

125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.

(a) A school district, group of districts, or special education cooperative, in cooperation with the health and human service agencies located in the county or counties in which the district or cooperative is located, must establish an Interagency Early Intervention Committee for children with disabilities under age five and their families under this section, and for children with disabilities ages three to 22 consistent with the requirements under sections 125A.023 and 125A.027. Committees must include representatives of local health, education, and county human service agencies, county boards, school boards, early childhood family education programs, Head Start, parents of young children with disabilities under age 12, child care resource and referral agencies, school readiness programs, current service providers, and may also include representatives from other private or public agencies and school nurses. The committee must elect a chair from among its members and must meet at least quarterly.

(b) The committee must develop and implement interagency policies and procedures concerning the following ongoing duties:

(1) develop public awareness systems designed to inform potential recipient families new text begin , especially parents with premature infants, or infants with other physical risk factors associated with learning or development complications, new text end of available programs and services;

(2) new text begin to reduce families' need for future services, and especially parents with premature infants, or infants with other physical risk factors associated with learning or development complications, new text end implement interagency child find systems designed to actively seek out, identify, and refer infants and young children with, or at risk of, disabilities deleted text begin and their families deleted text end new text begin , including a child under the age of three who: (i) is involved in a substantiated case of abuse or neglect or (ii) is identified as affected by illegal substance abuse, or withdrawal symptoms resulting from prenatal drug exposure new text end ;

(3) establish and evaluate the identification, referral, child and family assessment systems, procedural safeguard process, and community learning systems to recommend, where necessary, alterations and improvements;

(4) assure the development of individualized family service plans for all eligible infants and toddlers with disabilities from birth through age two, and their families, and individual education plans and individual service plans when necessary to appropriately serve children with disabilities, age three and older, and their families and recommend assignment of financial responsibilities to the appropriate agencies;

(5) deleted text begin encourage agencies to develop individual family service plans for children with disabilities, age three and older; deleted text end

deleted text begin (6) deleted text end implement a process for assuring that services involve cooperating agencies at all steps leading to individualized programs;

deleted text begin (7) deleted text end new text begin (6) new text end facilitate the development of a transitional plan if a service provider is not recommended to continue to provide services;

deleted text begin (8) deleted text end new text begin (7) new text end identify the current services and funding being provided within the community for children with disabilities under age five and their families;

deleted text begin (9) deleted text end new text begin (8) new text end develop a plan for the allocation and expenditure of additional state and federal early intervention funds under United States Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ) and United States Code, title 20, section 631, et seq. (Chapter I, Public Law 89-313); and

deleted text begin (10) deleted text end new text begin (9) new text end develop a policy that is consistent with section 13.05, subdivision 9, and federal law to enable a member of an interagency early intervention committee to allow another member access to data classified as not public.

(c) The local committee shall also:

(1) participate in needs assessments and program planning activities conducted by local social service, health and education agencies for young children with disabilities and their families; and

(2) review and comment on the early intervention section of the total special education system for the district, the county social service plan, the section or sections of the community health services plan that address needs of and service activities targeted to children with special health care needs, the section on children with special needs in the county child care fund plan, sections in Head Start plans on coordinated planning and services for children with special needs, any relevant portions of early childhood education plans, such as early childhood family education or school readiness, or other applicable coordinated school and community plans for early childhood programs and services, and the section of the maternal and child health special project grants that address needs of and service activities targeted to children with chronic illness and disabilities.

Sec. 21.

Minnesota Statutes 2004, section 125A.32, is amended to read:

125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN new text begin (IFSP) new text end .

(a) A team must participate in IFSP meetings to develop the IFSP. The team shall include:

(1) a parent or parents of the child;

(2) other family members, as requested by the parent, if feasible to do so;

(3) an advocate or person outside of the family, if the parent requests that the person participate;

(4) the service coordinator who has been working with the family since the initial referral, or who has been designated by the public agency to be responsible for implementation of the IFSP new text begin and coordination with other agencies including transition services new text end ; and

(5) a person or persons involved in conducting evaluations and assessments.

(b) The IFSP must include:

(1) information about the child's developmental status;

(2) family information, with the consent of the family;

(3) new text begin measurable results or new text end major outcomes expected to be achieved by the child deleted text begin and the family deleted text end new text begin with the family's assistance, new text end that include new text begin developmentally appropriate preliteracy and language skills for the child, and new text end the criteria, procedures, and timelines;

(4) specific early intervention services new text begin based on peer-reviewed research, to the extent practicable, new text end necessary to meet the unique needs of the child and the family to achieve the outcomes;

(5) payment arrangements, if any;

(6) medical and other services that the child needs, but that are not required under the Individual with Disabilities Education Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ) including funding sources to be used in paying for those services and the steps that will be taken to secure those services through public or private sources;

(7) dates and duration of early intervention services;

(8) name of the service coordinator;

(9) steps to be taken to support a child's transition from early intervention services to other appropriate services new text begin , including convening a transition conference at least 90 days or, at the discretion of all parties, not more than nine months before the child is eligible for preschool services new text end ; and

(10) signature of the parent and authorized signatures of the agencies responsible for providing, paying for, or facilitating payment, or any combination of these, for early intervention services.

Sec. 22.

Minnesota Statutes 2004, section 125A.33, is amended to read:

125A.33 SERVICE COORDINATION.

(a) The team developing the IFSP under section 125A.32 must select a service coordinator to carry out service coordination activities on an interagency basis. Service coordination must actively promote a family's capacity and competency to identify, obtain, coordinate, monitor, and evaluate resources and services to meet the family's needs. Service coordination activities include:

(1) coordinating the performance of evaluations and assessments;

(2) facilitating and participating in the development, review, and evaluation of individualized family service plans;

(3) assisting families in identifying available service providers;

(4) coordinating and monitoring the delivery of available services;

(5) informing families of the availability of advocacy services;

(6) coordinating with medical, health, and other service providers;

(7) facilitating the development of a transition plan at least 90 days before the time the child is no longer eligible for early intervention services new text begin or new text end , new text begin at the discretion of all parties, not more than nine months prior to the child's eligibility for preschool services, new text end if appropriate;

(8) managing the early intervention record and submitting additional information to the local primary agency at the time of periodic review and annual evaluations; and

(9) notifying a local primary agency when disputes between agencies impact service delivery required by an IFSP.

(b) A service coordinator must be knowledgeable about children and families receiving services under this section, requirements of state and federal law, and services available in the interagency early childhood intervention system.

Sec. 23.

Minnesota Statutes 2004, section 125A.48, is amended to read:

125A.48 STATE INTERAGENCY AGREEMENT.

(a) The commissioners of the Departments of Education, Health, and Human Services must enter into an agreement to implement this section and Part deleted text begin H deleted text end new text begin C new text end , Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end , and as required by Code of Federal Regulations, title 34, section 303.523, to promote the development and implementation of interagency, coordinated, multidisciplinary state and local early childhood intervention service systems for serving eligible young children with disabilities, birth through age two, and their families new text begin and to ensure the meaningful involvement of underserved groups, including children with disabilities from minority, low-income, homeless, and rural families, and children with disabilities who are wards of the state new text end . The agreement must be reviewed annually.

(b) The state interagency agreement must outline at a minimum the conditions, procedures, purposes, and responsibilities of the participating state and local agencies for the following:

(1) membership, roles, and responsibilities of a state interagency committee for the oversight of priorities and budget allocations under Part deleted text begin H deleted text end new text begin C new text end , Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end , and other state allocations for this program;

(2) child find;

(3) establishment of local interagency agreements;

(4) review by a state interagency committee of the allocation of additional state and federal early intervention funds by local agencies;

(5) fiscal responsibilities of the state and local agencies;

(6) intraagency and interagency dispute resolution;

(7) payor of last resort;

(8) maintenance of effort;

(9) procedural safeguards, including mediation;

(10) complaint resolution;

(11) quality assurance;

(12) data collection;

(13) an annual summary to the state Interagency Coordinating Council regarding conflict resolution activities including disputes, due process hearings, and complaints; and

(14) other components of the state and local early intervention system consistent with Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end .

Written materials must be developed for parents, IEIC's, and local service providers that describe procedures developed under this section as required by Code of Federal Regulations, title 34, section 303.

Sec. 24.

Laws 2005, First Special Session chapter 5, article 7, section 20, 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:

		deleted text begin 14,356,000 deleted text end
	$	new text begin 15,105,000 new text end	.......	2006
		deleted text begin 15,137,000 deleted text end
	$	new text begin 17,792,000 new text end	.......	2007

The 2006 appropriation includes deleted text begin $1,861,000 deleted text end new text begin $1,859,000 new text end for 2005 and deleted text begin $12,495,000 deleted text end new text begin $13,246,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $2,327,000 deleted text end new text begin $1,471,000 new text end for 2006 and deleted text begin $12,810,000 deleted text end new text begin $16,321,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 25.

Laws 2005, First Special Session chapter 5, article 7, section 20, 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:

		deleted text begin 3,076,000 deleted text end
	$	new text begin 3,000,000 new text end	.......	2006
		deleted text begin 3,511,000 deleted text end
	$	new text begin 2,997,000 new text end	.......	2007

The 2006 appropriation includes $417,000 for 2005 and deleted text begin $2,659,000 deleted text end new text begin $2,583,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $494,000 deleted text end new text begin $287,000 new text end for 2006 and deleted text begin $3,017,000 deleted text end new text begin $2,710,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 26.

new text begin ADULT LITERACY GRANTS FOR RECENT IMMIGRANTS TO MINNESOTA. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin An adult literacy grant program for recent immigrants to Minnesota is established in fiscal years 2007 and 2008 only in order to meet the English language needs of the unanticipated refugees and immigrants to the state of Minnesota. new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin The commissioner of education shall consult adult basic education service providers in establishing the form and manner of the grant program. The commissioner shall award grants to organizations providing adult literacy services in order to help offset the additional costs due to unanticipated high enrollments of recent refugees and immigrants. new text end

Sec. 27.

new text begin LEGISLATIVE COMMISSION TO END POVERTY IN MINNESOTA BY 2020. new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Legislative Commission to End Poverty in Minnesota by 2020 consists of nine members of the senate appointed by the Subcommittee on Committees of the Committee on Rules and Administration, including four members of the minority, and nine members of the house of representatives appointed by the speaker, including four members of the minority. Appointments must be made by members elected to the 85th session of the legislature and no later than February 15, 2007. The governor may appoint two nonvoting members to sit with the commission. new text end

new text begin Subd. 2. new text end

new text begin Guiding principles. new text end

new text begin In preparing recommendations on how to end poverty in Minnesota by 2020, the commission must be guided by the following principles: new text end

new text begin (a) There should be a consistent and persistent approach that includes participation of people of faith, nonprofit agencies, government, and business. new text end

new text begin (b) All people should be provided with those things that protect human dignity and make for a healthy life, including adequate food and shelter, meaningful work, safe communities, health care, and education. new text end

new text begin (c) All people are intended to live well together as a whole community, seeking the common good, avoiding wide disparities between those who have too little to live on and those who have a disproportionate share of the nation's goods. new text end

new text begin (d) All people need to work together to overcome poverty, and this work transcends both any particular political theory or party and any particular economic theory or structure. Overcoming poverty requires the use of private and public resources. new text end

new text begin (e) Alliances are needed between the faith community, nonprofit agencies, government, business, and others with a commitment to overcoming poverty. new text end

new text begin (f) Overcoming poverty involves both acts of direct service to alleviate the outcomes of poverty and advocacy to change those structures that result in people living in poverty. new text end

new text begin (g) Government is neither solely responsible for alleviating poverty nor removed from that responsibility. Government is the vehicle by which people order their lives based on their shared vision. Society is well served when people bring their values into the public arena. This convergence around issues of poverty and the common good leads people of varying traditions to call on government to make a critical commitment to overcoming poverty. new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The commission shall report its recommendations on how to end poverty in Minnesota by 2020 to the legislature by December 15, 2008. new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin The commission expires December 31, 2008. new text end

Sec. 28.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are appropriated from the general fund to the Department of Education, unless otherwise specified, for the fiscal years designated. new text end

new text begin Subd. 2. new text end

new text begin Educate parents partnership. new text end

new text begin For the educate parents partnership under Minnesota Statutes, section 124D.129: new text end

new text begin $ new text end

new text begin 80,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin The base for this program in fiscal year 2008 and later is $50,000. new text end

new text begin Subd. 3. new text end

new text begin Kindergarten entrance assessment initiative and intervention program. new text end

new text begin For the kindergarten entrance assessment initiative and intervention program under Minnesota Statutes, section 124D.162: new text end

new text begin $ new text end

new text begin 287,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin Subd. 4. new text end

new text begin Early childhood Part C. new text end

new text begin For the expansion of early childhood Part C services: new text end

new text begin $ new text end

new text begin 400,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin Subd. 5. new text end

new text begin Adult literacy grants for recent immigrants. new text end

new text begin For adult literacy grants for recent immigrants to Minnesota under section 26: new text end

new text begin $ new text end

new text begin 1,250,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin The base for this program is $1,250,000 in fiscal year 2008 and $0 in fiscal year 2009. new text end

new text begin Subd. 6. new text end

new text begin NorthStar Quality Improvement and Rating System. new text end

new text begin For a grant to the Minnesota Early Learning Foundation for the NorthStar Quality Improvement and Rating System under Minnesota Statutes, section 124D.175, paragraph (c): new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin This appropriation must be used to implement phase one of the NorthStar Quality Improvement and Rating System including start-up costs, participation of 200 providers, parent information, and materials and evaluation by the Minnesota Early Learning Foundation in consultation with the University of Minnesota. new text end

new text begin This onetime appropriation is available to June 30, 2008. new text end * (The preceding subdivision was indicated as vetoed by the governor.)

new text begin Subd. 7. new text end

new text begin Legislative Commission to End Poverty by 2020. new text end

new text begin To the Legislative Coordinating Commission for the Legislative Commission to End Poverty by 2020 under section 27: new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

ARTICLE 3

GENERAL EDUCATION

Section 1.

Laws 2005, First Special Session chapter 5, article 1, section 47, is amended to read:

Sec. 47. ALTERNATIVE TEACHER COMPENSATION REVENUE GUARANTEE.

Notwithstanding Minnesota Statutes, sections 122A.415, subdivision 1, and 126C.10, subdivision 34, paragraphs (a) and (b), a school district that received alternative teacher compensation aid for fiscal year 2005, but does not qualify for alternative teacher compensation revenue for all sites in the district for fiscal year 2006 deleted text begin or deleted text end new text begin , new text end 2007, new text begin 2008, or 2009, new text end shall receive additional basic alternative teacher compensation aid for that fiscal year equal to the lesser of the amount of alternative teacher compensation aid it received for fiscal year 2005 or the amount it would have received for that fiscal year under Minnesota Statutes 2004, section 122A.415, subdivision 1, for teachers at sites not qualifying for alternative teacher compensation revenue for that fiscal year, if the district submits a timely application and the commissioner determines that the district continues to implement an alternative teacher compensation system, consistent with its application under Minnesota Statutes 2004, section 122A.415, for fiscal year 2005. The additional basic alternative teacher compensation aid under this section must not be used in calculating the alternative teacher compensation levy under Minnesota Statutes, section 126C.10, subdivision 35. This section applies only to fiscal years 2006 deleted text begin and 2007 deleted text end new text begin through 2009 new text end and does not apply to later fiscal years.

Sec. 2.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 2, is amended to read:

Subd. 2. General education aid. For general education aid under Minnesota Statutes, section 126C.13, subdivision 4:

	$	deleted text begin 5,136,578,000 deleted text end new text begin 5,819,153,000 new text end	.....	2006
	$	deleted text begin 5,390,196,000 deleted text end new text begin 5,472,238,000 new text end	.....	2007

The 2006 appropriation includes deleted text begin $784,978,000 deleted text end new text begin $787,978,000 new text end for 2005 and deleted text begin $4,351,600,000 deleted text end new text begin $5,031,175,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $817,588,000 deleted text end new text begin $513,848,000 new text end for 2006 and deleted text begin $4,572,608,000 deleted text end new text begin $4,958,390,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 3.

new text begin ONETIME ENERGY ASSISTANCE AID. new text end

new text begin (a) For fiscal year 2006 only, a school district or charter school's onetime energy assistance aid is equal to $3.67 times its adjusted marginal cost pupil units. A school district or charter school may use its onetime energy assistance aid to pay for heating, fuel, and other energy costs. new text end

new text begin (b) This aid is paid entirely in fiscal year 2006 based on estimated data. By January 31, 2007, the Department of Education shall recalculate the aid for each district or charter school using actual data, and adjust the general education aid paid to school districts or charter schools for fiscal year 2007 by the amount of the difference between the estimated aid and the actual aid. new text end

Sec. 4.

new text begin APPROPRIATION. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sum indicated in this section is appropriated from the general fund to the Department of Education for the fiscal year designated. new text end

new text begin Subd. 2. new text end

new text begin Onetime energy assistance aid. new text end

new text begin For onetime energy assistance aid under section 3: new text end

new text begin $ new text end

new text begin 3,495,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

ARTICLE 4

EDUCATION EXCELLENCE

Section 1.

new text begin [120B.132] RAISED ACADEMIC ACHIEVEMENT; ADVANCED PLACEMENT PROGRAMS. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; eligibility. new text end

new text begin A program is established to raise kindergarten through grade 12 academic achievement through increased student participation in preadvanced placement and advanced placement programs. Schools and charter schools eligible to participate under this section: new text end

new text begin (1) must have a three-year plan approved by the local school board to create a new or expand an existing program to implement the college board advanced placement courses and exams or preadvanced placement courses; and new text end

new text begin (2) must propose to further raise students' academic achievement by: new text end

new text begin (i) increasing the availability of and all students' access to advanced placement; new text end

new text begin (ii) expanding the breadth of advanced placement courses or programs that are available to students; new text end

new text begin (iii) increasing the number and the diversity of the students who participate in advanced placement courses or programs and succeed; new text end

new text begin (iv) providing low-income and other disadvantaged students with increased access to advanced placement courses and programs; or new text end

new text begin (v) increasing the number of high school students, including low-income and other disadvantaged students, who receive college credit by successfully completing advanced placement courses or programs and achieving satisfactory scores on related exams. new text end

new text begin Subd. 2. new text end

new text begin Application and review process; funding priority. new text end

new text begin (a) Charter schools and school districts in which eligible schools under subdivision 1 are located may apply to the commissioner, in the form and manner the commissioner determines, for competitive funding to further raise students' academic achievement. The application must detail the specific efforts the applicant intends to undertake in further raising students' academic achievement, consistent with subdivision 1, and a proposed budget detailing the district or charter school's current and proposed expenditures for advanced placement or preadvanced placement courses and programs. The proposed budget must demonstrate that the applicant's efforts will supplement but not supplant any expenditures for advanced placement and preadvanced placement courses and programs the applicant currently makes available to students. Expenditures for administration must not exceed five percent of the proposed budget. The commissioner may require an applicant to provide additional information. new text end

new text begin (b) When reviewing applications, the commissioner must determine whether the applicant satisfied all the requirements in this subdivision and subdivision 1. The commissioner may give funding priority to an otherwise qualified applicant that demonstrates: new text end

new text begin (1) a focus on developing or expanding advanced placement courses and programs or increasing students' participation in, access to, or success with the courses or programs, including the participation, access, or success of low-income and other disadvantaged students; new text end

new text begin (2) a compelling need for access to advanced placement programs; new text end

new text begin (3) an effective ability to actively involve local business and community organizations in student activities that are integral to advanced placement courses and programs; new text end

new text begin (4) access to additional public or nonpublic funds or in-kind contributions that are available for advanced placement programs; or new text end

new text begin (5) an intent to implement activities that target low-income and other disadvantaged students. new text end

new text begin Subd. 3. new text end

new text begin Funding; permissible funding uses. new text end

new text begin (a) The commissioner shall award grants to applicant school districts and charter schools that meet the requirements of subdivisions 1 and 2. The commissioner must award grants on an equitable geographical basis to the extent feasible and consistent with this section. Grant awards must not exceed the lesser of: new text end

new text begin (1) $85 times the number of pupils enrolled at the participating sites on October 1 of the previous fiscal year; or new text end

new text begin (2) the approved supplemental expenditures based on the budget submitted under subdivision 2. For charter schools in their first year of operation, the maximum grant award must be calculated using the number of pupils enrolled on October 1 of the current fiscal year. The commissioner may adjust the maximum grant award computed using prior year data for changes in enrollment attributable to school closings, school openings, grade level reconfigurations, or school district reorganizations between the prior fiscal year and the current fiscal year. new text end

new text begin (b) School districts and charter schools that submit an application and receive funding under this section must use the funding, consistent with the application, to: new text end

new text begin (1) provide teacher training and instruction to more effectively serve students, including low-income and other disadvantaged students, who participate in preadvanced and advanced placement programs; new text end

new text begin (2) further develop advanced placement courses or programs; new text end

new text begin (3) improve the transition between grade levels to better prepare students, including low-income and other disadvantaged students, for succeeding in advanced placement programs; new text end

new text begin (4) purchase books and supplies; new text end

new text begin (5) pay course or program fees; new text end

new text begin (6) increase students' participation in and success with advanced placement programs; new text end

new text begin (7) expand students' access to preadvanced placement or advanced placement courses or programs through online learning; new text end

new text begin (8) hire appropriately licensed personnel to teach additional advanced placement programs; or new text end

new text begin (9) engage in other activity directly related to expanding students' access to, participation in, and success with preadvanced placement or advanced placement courses and programs, including low-income and other disadvantaged students. new text end

new text begin Subd. 4. new text end

new text begin Annual reports. new text end

new text begin (a) Each school district and charter school that receives a grant under this section annually must collect demographic and other student data to demonstrate and measure the extent to which the district or charter school raised students' academic achievement under this program and must report the data to the commissioner in the form and manner the commissioner determines. The commissioner annually by February 15 must make summary data about this program available to the education policy and finance committees of the legislature. new text end

new text begin (b) Each school district and charter school that receives a grant under this section annually must report to the commissioner, consistent with the Uniform Financial Accounting and Reporting Standards, its actual expenditures for advanced placement and preadvanced placement programs. The report must demonstrate that the school district or charter school has maintained its effort from other sources for advanced placement and preadvanced placement programs compared with the previous fiscal year, and the district or charter school has expended all grant funds, consistent with its approved budget. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to the 2006-2007 school year. new text end

Sec. 2.

new text begin [122A.416] ALTERNATIVE TEACHER COMPENSATION REVENUE FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT INTEGRATION COLLABORATIVES. new text end

new text begin Notwithstanding sections 122A.413, 122A.414, 122A.415, and 126C.10, multidistrict integration collaboratives and the Perpich Center for Arts Education are eligible to receive alternative teacher compensation revenue as if they were intermediate school districts. To qualify for alternative teacher compensation revenue, a multidistrict integration collaborative or the Perpich Center for Arts Education must meet all of the requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate school districts, must report its enrollment as of October 1 of each year to the department, and must annually report its expenditures for the alternative teacher professional pay system consistent with the uniform financial accounting and reporting standards to the department by November 30 of each year. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2007. new text end

Sec. 3.

Minnesota Statutes 2004, section 181.101, is amended to read:

181.101 WAGES; HOW OFTEN PAID.

Every employer must pay all wages earned by an employee at least once every 31 days on a regular pay day designated in advance by the employer regardless of whether the employee requests payment at longer intervals. Unless paid earlier, the wages earned during the first half of the first 31-day pay period become due on the first regular payday following the first day of work. If wages earned are not paid, the commissioner of labor and industry or the commissioner's representative may demand payment on behalf of an employee. If payment is not made within ten days of demand, the commissioner may charge and collect the wages earned and a penalty in the amount of the employee's average daily earnings at the rate agreed upon in the contract of employment, not exceeding 15 days in all, for each day beyond the ten-day limit following the demand. Money collected by the commissioner must be paid to the employee concerned. This section does not prevent an employee from prosecuting a claim for wages. This section does not prevent a school district deleted text begin or deleted text end new text begin , new text end other public school entity new text begin , or other school, as defined under section 120A.22, new text end from paying any wages earned by its employees during a school year on regular pay days in the manner provided by an applicable contract or collective bargaining agreement, or a personnel policy adopted by the governing board. For purposes of this section, "employee" includes a person who performs agricultural labor as defined in section 181.85, subdivision 2. For purposes of this section, wages are earned on the day an employee works.

Sec. 4.

new text begin [120B.19] CHINESE LANGUAGE PROGRAMS; CURRICULUM DEVELOPMENT PROJECT. new text end

new text begin Subdivision 1. new text end

new text begin Project parameters. new text end

new text begin (a) Notwithstanding other law to the contrary, the commissioner of education may contract with the Board of Regents of the University of Minnesota or other Minnesota public entity the commissioner determines is qualified to undertake the development of an articulated K-12 Chinese curriculum for Minnesota schools that involves: new text end

new text begin (1) creating a network of Chinese teachers and educators able to develop new and modify or expand existing world languages K-12 curricula, materials, assessments, and best practices needed to provide Chinese language instruction to students; and new text end

new text begin (2) coordinating statewide efforts to develop and expand Chinese language instruction so that it is uniformly available to students throughout the state, and making innovative use of media and technology, including television, distance learning, and online courses to broaden students' access to the instruction. new text end

new text begin (b) The entity with which the commissioner contracts under paragraph (a) must have sufficient knowledge and expertise to ensure the professional development of appropriate, high-quality curricula, supplementary materials, aligned assessments, and best practices that accommodate different levels of student ability and types of programs. new text end

new text begin (c) Project participants must: new text end

new text begin (1) work throughout the project to develop curriculum, supplementary materials, aligned assessments, and best practices; and new text end

new text begin (2) make curriculum, supplementary materials, aligned assessments, and best practices equitably available to Minnesota schools and students. new text end

new text begin Subd. 2. new text end

new text begin Project participants. new text end

new text begin The entity with which the commissioner contracts must work with the network of Chinese teachers and educators to: new text end

new text begin (1) conduct an inventory of Chinese language curricula, supplementary materials, and professional development initiatives currently used in Minnesota or other states; new text end

new text begin (2) develop Chinese language curricula and benchmarks aligned to local world language standards and classroom-based assessments; and new text end

new text begin (3) review and recommend to the commissioner how best to build an educational infrastructure to provide more students with Chinese language instruction, including how to develop and provide: (i) an adequate supply of Chinese language teachers; (ii) an adequate number of high-quality school programs; (iii) appropriate curriculum, instructional materials, and aligned assessments that include technology-based delivery systems; (iv) teacher preparation programs to train Chinese language teachers; (v) expedited licensing of Chinese language teachers; (vi) best practices in existing educational programs that can be used to establish K-12 Chinese language programs; and (vii) technical assistance resources. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

new text begin NORTHWESTERN ONLINE COLLEGE IN THE HIGH SCHOOL PROGRAM. new text end

new text begin For fiscal year 2007 only, the Northwestern Online College in the High School program is eligible for $50,000 for professional development and to develop Web-based technology. new text end

Sec. 6.

new text begin [120B.233] CHARACTER DEVELOPMENT EDUCATION REVENUE; PILOT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Pilot program created. new text end

new text begin A pilot program is created to allow school districts to receive character development education revenue to purchase curriculum for the purposes of Minnesota Statutes, section 120B.232. Character development education revenue for school districts equals $30 times the district's adjusted marginal cost pupil units. new text end

new text begin Subd. 2. new text end

new text begin Approved provider list. new text end

new text begin The commissioner of education shall maintain a character development education curriculum approved provider list. The character development education curriculum of approved providers shall be research based with at least one completed relational study covering a period of no fewer than five years and completed by an independent party. Approved character development education curriculum must include: new text end

new text begin (1) age appropriate character development for the classroom in all elementary and secondary grades; new text end

new text begin (2) curriculum for character development extracurricular activities; new text end

new text begin (3) teacher training workshops and in-service training; new text end

new text begin (4) plans for school assemblies promoting character development; new text end

new text begin (5) midyear consulting between the school district and the provider; and new text end

new text begin (6) an assessment program. new text end

new text begin Subd. 3. new text end

new text begin Application and selection process. new text end

new text begin A school district may submit to the commissioner an application for funding in the form and manner specified by the commissioner. The commissioner shall approve applications that propose to use an approved provider and that agree to use the program as recommended by the provider. The commissioner must approve or disapprove an application within 30 days of receipt on a first-come, first-served basis. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 7.

new text begin APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are appropriated from the general fund to the Department of Education for the fiscal years designated. new text end

new text begin Subd. 2. new text end

new text begin Northwestern Online College in the High School program. new text end

new text begin For Northwestern Online College in the High School program under section 5: new text end

new text begin $ new text end

new text begin 50,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 3. new text end

new text begin Chinese language. new text end

new text begin For the Chinese language curriculum project under section 4: new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin The commissioner must report to the house of representatives and senate committees having jurisdiction over kindergarten through grade 12 education policy and finance on the range of the program by February 15, 2007. The report shall address the applicability of the Chinese language curriculum project to other world languages and include the availability of instructors, curriculum, high-quality school programs, assessments, and best practices as they apply to world languages. new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 4. new text end

new text begin Advanced placement increased student participation. new text end

new text begin For the increased participation of students in advanced placement programs under Minnesota Statutes, section 120B.132: new text end

	new text begin $ new text end	new text begin 1,000,000 new text end	new text begin ..... new text end	new text begin 2007 new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 5. new text end

new text begin Character development education revenue. new text end

new text begin For the character development education revenue pilot program under section 6: new text end

new text begin $ new text end

new text begin 1,500,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 6. new text end

new text begin Scholars of distinction. new text end

new text begin For the scholars of distinction program: new text end

new text begin $ new text end

new text begin 25,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin This is a onetime appropriation. new text end

new text begin Subd. 7. new text end

new text begin TIMMS Study. new text end

new text begin For the department to contract with Boston College for Minnesota 4th and 8th grade students to participate in the TIMMS International assessment of student achievement in mathematics and science: new text end

new text begin $ new text end

new text begin 500,000 new text end

new text begin ..... new text end

new text begin 2007 new text end

new text begin School districts must apply to participate in the study on a form and in the manner prescribed by the commissioner. The commissioner may select districts to participate if more districts than those applying are needed for the study. The provisions of Minnesota Statutes, chapter 16C, as they relate to competitive bidding, do not apply to this contract. new text end

new text begin The Department of Education must receive at least $150,000 in private sector gifts or bequests to support the TIMMS study by July 1, 2006. If the Department of Education does not receive $150,000 in private gifts or bequests by July 1, 2006, the amount appropriated in this subdivision shall immediately cancel. new text end

new text begin This is a onetime appropriation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 5

FACILITIES, ACCOUNTING, AND TECHNOLOGY

Section 1.

Minnesota Statutes 2004, section 123B.57, subdivision 6, is amended to read:

Subd. 6.

Uses of health and safety revenue.

(a) Health and safety revenue may be used only for approved expenditures necessary to correct fire and life safety hazards, or for the removal or encapsulation of asbestos from school buildings or property owned or being acquired by the district, asbestos-related repairs, cleanup and disposal of polychlorinated biphenyls found in school buildings or property owned or being acquired by the district, or the cleanup, removal, disposal, and repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in section 296A.01, Minnesota occupational safety and health administration regulated facility and equipment hazards, indoor air quality mold abatement, upgrades or replacement of mechanical ventilation systems to meet American Society of Heating, Refrigerating and Air Conditioning Engineers standards and State Mechanical Code, Department of Health Food Code and swimming pool hazards excluding depth correction, and health, safety, and environmental management. new text begin Testing and calibration activities are permitted for existing mechanical ventilation systems at intervals no less than every five years. new text end Health and safety revenue must not be used to finance a lease purchase agreement, installment purchase agreement, or other deferred payments agreement. Health and safety revenue must not be used for the construction of new facilities or the purchase of portable classrooms, for interest or other financing expenses, or for energy efficiency projects under section 123B.65. The revenue may not be used for a building or property or part of a building or property used for postsecondary instruction or administration or for a purpose unrelated to elementary and secondary education.

(b) Notwithstanding paragraph (a), health and safety revenue must not be used for replacement of building materials or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and safety costs associated with demolition of facilities, structural repair or replacement of facilities due to unsafe conditions, violence prevention and facility security, ergonomics, building and heating, ventilating and air conditioning supplies, maintenance, new text begin and new text end cleaning deleted text begin , testing, and calibration deleted text end activities. All assessments, investigations, inventories, and support equipment not leading to the engineering or construction of a project shall be included in the health, safety, and environmental management costs in subdivision 8, paragraph (a).

new text begin new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008 and later. new text end

Sec. 2.

Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 3, is amended to read:

Subd. 3. Debt service equalization. For debt service aid according to Minnesota Statutes, section 123B.53, subdivision 6:

	$	deleted text begin 25,654,000 deleted text end new text begin 27,206,000 new text end	.....	2006
	$	deleted text begin 24,134,000 deleted text end new text begin 18,410,000 new text end	.....	2007

The 2006 appropriation includes $4,654,000 for 2005 and deleted text begin $21,000,000 deleted text end new text begin $22,552,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $3,911,000 deleted text end new text begin $2,504,000 new text end for 2006 and deleted text begin $20,223,000 deleted text end new text begin $15,906,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 3.

Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 6, is amended to read:

Subd. 6. Emergency aid, Red Lake. For Independent School District No. 38, Red Lake, for onetime emergency aid to repair infrastructure damage to the Red Lake High School as a result of the March 21, 2005, school shooting:

		deleted text begin 50,000 deleted text end
	$	new text begin 524,000 new text end	.....	2006

The school district must submit deleted text begin proposed expenditures for these funds for review and comment approval under Minnesota Statutes, section 123B.71 deleted text end new text begin actual expenditure information to support this appropriation to the Department of Education new text end , before the commissioner releases the funds to the district. deleted text begin The district must report the amount of its unreimbursed costs to the commissioner. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 4.

new text begin APPROPRIATION; WASECA LEVY. new text end

new text begin Independent School District No. 829, Waseca, may levy up to $344,000 beginning in 2006 over five years for health and safety revenue lost due to miscalculation. $316,000 is appropriated in fiscal year 2007 to the commissioner of education for payment of the aid portion of lost revenue. If the district does not levy the full amount authorized within the five-year period, other state aid due to the district shall be reduced proportionately. This is a onetime appropriation for fiscal year 2007. new text end

Sec. 5.

new text begin APPROPRIATION; ROCORI SCHOOL DISTRICT. new text end

new text begin $137,000 is appropriated in fiscal year 2007 from the general fund to the commissioner of education for a grant to Independent School District No. 750, Rocori. The grant is for a continuation of district activities that were developed in concert with the district's federal School Emergency Response to Violence, or Project SERV, grant. The grant may be used to continue the district's recovery efforts, and uses include: an academic program and impact of tragedy or program assessment of educational adequacy; an organizational analysis; a strategic planning overview; a district assessment survey; continued recovery support; staff development initiatives; and any other activities developed in response to the federal Project SERV grant. new text end

new text begin The base budget for this program for fiscal year 2008 only is $53,000. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 6.

new text begin FUND TRANSFERS. new text end

new text begin Subdivision 1. new text end

new text begin A.C.G.C. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, Independent School District No. 2396, A.C.G.C., on June 30, 2006, may permanently transfer up to $203,000 from its reserved account for disabled accessibility to its unrestricted general fund without making a levy reduction. new text end

new text begin Subd. 2. new text end

new text begin Alden-Conger. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79 and 123B.80, as of June 30, 2006, Independent School District No. 242, Alden-Conger, may permanently transfer up to $127,000 from its reserved for disabled accessibility account to its unrestricted general fund account without making a levy reduction. new text end

new text begin Subd. 3. new text end

new text begin Fosston. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79 and 123B.80, as of June 30, 2006, Independent School District No. 601, Fosston, may permanently transfer up to $80,000 from its reserved for disabled accessibility account to its unrestricted general fund account without making a levy reduction. new text end

new text begin Subd. 4. new text end

new text begin Hopkins. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2006, Independent School District No. 270, Hopkins, may permanently transfer up to $300,000 from its community education reserve fund balance to its undesignated general fund balance to assist the district in decreasing its statutory operating debt. new text end

new text begin Subd. 5. new text end

new text begin Lester Prairie. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79 or 123B.80, on June 30, 2006, Independent School District No. 424, Lester Prairie, may permanently transfer up to $150,000 from its reserved for operating capital account and up to $107,000 from its reserved for severance account, to its undesignated balance in the general fund. new text end

new text begin Subd. 6. new text end

new text begin Milroy. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2006, Independent School District No. 635, Milroy, may permanently transfer up to $26,000 from its reserved for disability accessibility account to its undesignated general fund balance without making a levy reduction. new text end

new text begin Subd. 7. new text end

new text begin Northland Community Schools. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on or before June 30, 2006, Independent School District No. 118, Northland Community Schools, may permanently transfer up to $197,000 from its reserved for disabled accessibility account to its reserved for operating capital account in its general fund without making a levy reduction. new text end

new text begin Subd. 8. new text end

new text begin Tyler. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, Independent School District No. 409, Tyler, on June 30, 2006, may, based on the approval of the commissioner of education, permanently transfer up to $451,000 from its reserved for capital operating account to its debt redemption fund. The commissioner of education must only allow this fund transfer if it is in the best interest of the Russell-Tyler-Ruthton school district consolidation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 7.

new text begin HEALTH AND SAFETY REVENUE USES; BELLE PLAINE. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.57 and 123B.59, upon approval of the commissioner of education, Independent School District No. 716, Belle Plaine, may use up to $125,000 of its health and safety revenue raised through an alternative facilities bond for other qualifying health and safety projects. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 6

NUTRITION

Section 1.

Minnesota Statutes 2005 Supplement, section 124D.111, subdivision 1, is amended to read:

Subdivision 1.

School lunch aid computation.

Each school year, the state must pay participants in the national school lunch program the amount of deleted text begin ten deleted text end new text begin 10.5 new text end cents for each full paid, reduced, and free student lunch served to students.

Sec. 2.

Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 2, 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:

	$	deleted text begin 8,998,000 deleted text end new text begin 9,760,000 new text end	.....	2006
	$	deleted text begin 9,076,000 deleted text end new text begin 10,391,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

ARTICLE 7

EDUCATION FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

Section 1.

Laws 2005, First Special Session chapter 5, article 1, section 54, 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:

	$	deleted text begin 8,704,000 deleted text end new text begin 9,200,000 new text end	.....	2006
	$	8,704,000	.....	2007

The 2006 appropriation includes $1,366,000 for 2005 and deleted text begin $7,338,000 deleted text end new text begin $7,834,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $1,366,000 deleted text end new text begin $870,000 new text end for 2006 and deleted text begin $7,338,000 deleted text end new text begin $7,834,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 2.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5, is amended to read:

Subd. 5.

Abatement revenue.

For abatement aid under Minnesota Statutes, section 127A.49:

	$	deleted text begin 903,000 deleted text end new text begin 909,000 new text end	.....	2006
	$	deleted text begin 955,000 deleted text end new text begin 1,026,000 new text end	.....	2007

The 2006 appropriation includes $187,000 for 2005 and deleted text begin $716,000 deleted text end new text begin $722,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $133,000 deleted text end new text begin $80,000 new text end for 2006 and deleted text begin $822,000 deleted text end new text begin $946,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 3.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6, is amended to read:

Subd. 6.

Consolidation transition.

For districts consolidating under Minnesota Statutes, section 123A.485:

$

deleted text begin 253,000 deleted text end new text begin 527,000 new text end

.....

2007

The 2007 appropriation includes $0 for 2006 and deleted text begin $253,000 deleted text end new text begin $527,000 new text end for 2007.

Sec. 4.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7, is amended to read:

Subd. 7.

Nonpublic pupil education aid.

For nonpublic pupil education aid under Minnesota Statutes, sections 123B.87 and 123B.40 to 123B.43:

	$	deleted text begin 15,370,000 deleted text end new text begin 15,458,000 new text end	.....	2006
	$	deleted text begin 16,434,000 deleted text end new text begin 15,991,000 new text end	.....	2007

The 2006 appropriation includes deleted text begin $2,305,000 deleted text end new text begin $1,864,000 new text end for 2005 and deleted text begin $13,065,000 deleted text end new text begin $13,594,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $2,433,000 deleted text end new text begin $1,510,000 new text end for 2006 and deleted text begin $14,001,000 deleted text end new text begin $14,481,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8, is amended to read:

Subd. 8.

Nonpublic pupil transportation.

For nonpublic pupil transportation aid under Minnesota Statutes, section 123B.92, subdivision 9:

	$	deleted text begin 21,451,000 deleted text end new text begin 21,371,000 new text end	.....	2006
	$	deleted text begin 23,043,000 deleted text end new text begin 20,843,000 new text end	.....	2007

The 2006 appropriation includes $3,274,000 for 2005 and deleted text begin $18,177,000 deleted text end new text begin $18,097,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $3,385,000 deleted text end new text begin $2,010,000 new text end for 2006 and deleted text begin $19,658,000 deleted text end new text begin $18,833,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

B. EDUCATION EXCELLENCE

Sec. 6.

Laws 2005, First Special Session chapter 5, article 2, section 84, 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:

	$	deleted text begin 25,465,000 deleted text end new text begin 25,331,000 new text end	.....	2006
	$	deleted text begin 30,929,000 deleted text end new text begin 27,806,000 new text end	.....	2007

The 2006 appropriation includes deleted text begin $3,324,000 deleted text end new text begin $3,173,000 new text end for 2005 and deleted text begin $22,141,000 deleted text end new text begin $22,158,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $4,123,000 deleted text end new text begin $2,462,000 new text end for 2006 and deleted text begin $26,806,000 deleted text end new text begin $25,344,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 7.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3, is amended to read:

Subd. 3.

Charter school startup aid.

For charter school startup cost aid under Minnesota Statutes, section 124D.11:

	$	deleted text begin 1,393,000 deleted text end new text begin 1,291,000 new text end	.....	2006
	$	deleted text begin 3,185,000 deleted text end new text begin 2,347,000 new text end	.....	2007

The 2006 appropriation includes $0 for 2005 and deleted text begin $1,393,000 deleted text end new text begin $1,291,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $259,000 deleted text end new text begin $143,000 new text end for 2006 and deleted text begin $2,926,000 deleted text end new text begin $2,204,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 8.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4, is amended to read:

Subd. 4.

Integration aid.

For integration aid under Minnesota Statutes, section 124D.86, subdivision 5:

	$	deleted text begin 57,801,000 deleted text end new text begin 59,404,000 new text end	.....	2006
	$	deleted text begin 57,536,000 deleted text end new text begin 58,405,000 new text end	.....	2007

The 2006 appropriation includes $8,545,000 for 2005 and deleted text begin $49,256,000 deleted text end new text begin $50,859,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $9,173,000 deleted text end new text begin $5,650,000 new text end for 2006 and deleted text begin $48,363,000 deleted text end new text begin $52,755,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 9.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 6, is amended to read:

Subd. 6.

Interdistrict desegregation or integration transportation grants.

For interdistrict desegregation or integration transportation grants under Minnesota Statutes, section 124D.87:

	$	deleted text begin 7,768,000 deleted text end new text begin 6,032,000 new text end	.....	2006
	$	deleted text begin 9,908,000 deleted text end new text begin 10,134,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 10.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 7, is amended to read:

Subd. 7.

Success for the future.

For American Indian success for the future grants under Minnesota Statutes, section 124D.81:

	$	deleted text begin 2,137,000 deleted text end new text begin 2,240,000 new text end	.....	2006
	$	2,137,000	.....	2007

The 2006 appropriation includes deleted text begin $335,000 deleted text end new text begin $316,000 new text end for 2005 and deleted text begin $1,802,000 deleted text end new text begin $1,924,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $335,000 deleted text end new text begin $213,000 new text end for 2006 and deleted text begin $1,802,000 deleted text end new text begin $1,924,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 11.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 10, is amended to read:

Subd. 10.

Tribal contract schools.

For tribal contract school aid under Minnesota Statutes, section 124D.83:

	$	deleted text begin 2,389,000 deleted text end new text begin 2,338,000 new text end	.....	2006
	$	deleted text begin 2,603,000 deleted text end new text begin 2,357,000 new text end	.....	2007

The 2006 appropriation includes $348,000 for 2005 and deleted text begin $2,041,000 deleted text end new text begin $1,990,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $380,000 deleted text end new text begin $221,000 new text end for 2006 and deleted text begin $2,223,000 deleted text end new text begin $2,136,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

C. SPECIAL PROGRAMS

Sec. 12.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 2, is amended to read:

Subd. 2.

Special education; regular.

For special education aid under Minnesota Statutes, section 125A.75:

	$	deleted text begin 528,846,000 deleted text end new text begin 559,485,000 new text end	.....	2006
	$	deleted text begin 527,446,000 deleted text end new text begin 528,106,000 new text end	.....	2007

The 2006 appropriation includes $83,078,000 for 2005 and deleted text begin $445,768,000 deleted text end new text begin $476,407,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $83,019,000 deleted text end new text begin $52,934,000 new text end for 2006 and deleted text begin $444,427,000 deleted text end new text begin $475,172,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 13.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 3, is amended to read:

Subd. 3.

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:

	$	deleted text begin 2,212,000 deleted text end new text begin 1,527,000 new text end	.....	2006
	$	deleted text begin 2,615,000 deleted text end new text begin 1,624,000 new text end	.....	2007

If the appropriation for either year is insufficient, the appropriation for the other year is available.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 14.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 4, is amended to read:

Subd. 4.

Travel for home-based services.

For aid for teacher travel for home-based services under Minnesota Statutes, section 125A.75, subdivision 1:

	$	deleted text begin 187,000 deleted text end new text begin 198,000 new text end	.....	2006
	$	195,000	.....	2007

The 2006 appropriation includes $28,000 for 2005 and deleted text begin $159,000 deleted text end new text begin $170,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $29,000 deleted text end new text begin $18,000 new text end for 2006 and deleted text begin $166,000 deleted text end new text begin $177,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 15.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 5, is amended to read:

Subd. 5.

Special education; excess costs.

For excess cost aid under Minnesota Statutes, section 125A.79, subdivision 7:

	$	deleted text begin 102,083,000 deleted text end new text begin 106,453,000 new text end	.....	2006
	$	deleted text begin 104,286,000 deleted text end new text begin 104,333,000 new text end	.....	2007

The 2006 appropriation includes $37,455,000 for 2005 and deleted text begin $64,628,000 deleted text end new text begin $68,998,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $38,972,000 deleted text end new text begin $34,602,000 new text end for 2006 and deleted text begin $65,314,000 deleted text end new text begin $69,731,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 16.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 6, is amended to read:

Subd. 6.

Transition for disabled students.

For aid for transition programs for children with disabilities under Minnesota Statutes, section 124D.454:

	$	deleted text begin 8,788,000 deleted text end new text begin 9,300,000 new text end	.....	2006
	$	deleted text begin 8,765,000 deleted text end new text begin 8,781,000 new text end	.....	2007

The 2006 appropriation includes $1,380,000 for 2005 and deleted text begin $7,408,000 deleted text end new text begin $7,920,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $1,379,000 deleted text end new text begin $880,000 new text end for 2006 and deleted text begin $7,386,000 deleted text end new text begin $7,901,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 17.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 7, is amended to read:

Subd. 7.

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:

	$	deleted text begin 65,000 deleted text end new text begin 46,000 new text end	.....	2006
	$	70,000	.....	2007

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 18.

Laws 2005, First Special Session chapter 5, article 4, section 25, 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:

	$	deleted text begin 802,000 deleted text end new text begin 823,000 new text end	.....	2006
	$	deleted text begin 578,000 deleted text end new text begin 352,000 new text end	.....	2007

The 2006 appropriation includes $211,000 for 2005 and deleted text begin $591,000 deleted text end new text begin $612,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $109,000 deleted text end new text begin $68,000 new text end for 2006 and deleted text begin $469,000 deleted text end new text begin $284,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 19.

Laws 2005, First Special Session chapter 5, article 4, section 25, 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:

	$	deleted text begin 19,287,000 deleted text end new text begin 20,387,000 new text end	.....	2006
	$	19,287,000	.....	2007

The 2006 appropriation includes $3,028,000 for 2005 and deleted text begin $16,259,000 deleted text end new text begin $17,359,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $3,028,000 deleted text end new text begin $1,928,000 new text end for 2006 and deleted text begin $16,259,000 deleted text end new text begin $17,359,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

D. NUTRITION

Sec. 20.

Laws 2005, First Special Session chapter 5, article 5, section 17, 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:

	$	deleted text begin 4,878,000 deleted text end new text begin 4,856,000 new text end	.....	2006
	$	deleted text begin 4,968,000 deleted text end new text begin 5,044,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

E. LIBRARIES

Sec. 21.

Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 2, is amended to read:

Subd. 2.

Basic system support.

For basic system support grants under Minnesota Statutes, section 134.355:

	$	deleted text begin 8,570,000 deleted text end new text begin 9,058,000 new text end	.....	2006
	$	8,570,000	.....	2007

The 2006 appropriation includes $1,345,000 for 2005 and deleted text begin $7,225,000 deleted text end new text begin $7,713,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $1,345,000 deleted text end new text begin $857,000 new text end for 2006 and deleted text begin $7,225,000 deleted text end new text begin $7,713,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 22.

Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 3, is amended to read:

Subd. 3.

Multicounty, multitype library systems.

For grants under Minnesota Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

	$	deleted text begin 903,000 deleted text end new text begin 954,000 new text end	.....	2006
	$	903,000	.....	2007

The 2006 appropriation includes $141,000 for 2005 and deleted text begin $762,000 deleted text end new text begin $813,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $141,000 deleted text end new text begin $90,000 new text end for 2006 and deleted text begin $762,000 deleted text end new text begin $813,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 23.

Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 5, is amended to read:

Subd. 5.

Regional library telecommunications aid.

For regional library telecommunications aid under Minnesota Statutes, section 134.355:

	$	deleted text begin 1,200,000 deleted text end new text begin 1,268,000 new text end	.....	2006
	$	1,200,000	.....	2007

The 2006 appropriation includes $188,000 for 2005 and deleted text begin $1,012,000 deleted text end new text begin $1,080,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $188,000 deleted text end new text begin $120,000 new text end for 2006 and deleted text begin $1,012,000 deleted text end new text begin $1,080,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

F. EARLY CHILDHOOD EDUCATION

Sec. 24.

Laws 2005, First Special Session chapter 5, article 7, section 20, 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:

	$	deleted text begin 9,020,000 deleted text end new text begin 9,528,000 new text end	.....	2006
	$	deleted text begin 9,042,000 deleted text end new text begin 9,020,000 new text end	.....	2007

The 2006 appropriation includes deleted text begin $1,417,000 deleted text end new text begin $1,415,000 new text end for 2005 and deleted text begin $7,603,000 deleted text end new text begin $8,113,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $1,415,000 deleted text end new text begin $901,000 new text end for 2006 and deleted text begin $7,627,000 deleted text end new text begin $8,119,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

G. PREVENTION

Sec. 25.

Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2, is amended to read:

Subd. 2.

Community education aid.

For community education aid under Minnesota Statutes, section 124D.20:

	$	deleted text begin 1,918,000 deleted text end new text begin 2,043,000 new text end	.....	2006
	$	deleted text begin 1,837,000 deleted text end new text begin 1,949,000 new text end	.....	2007

The 2006 appropriation includes deleted text begin $390,000 deleted text end new text begin $385,000 new text end for 2005 and deleted text begin $1,528,000 deleted text end new text begin $1,658,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $284,000 deleted text end new text begin $184,000 new text end for 2006 and deleted text begin $1,553,000 deleted text end new text begin $1,765,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 26.

Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 3, is amended to read:

Subd. 3.

Adults with disabilities program aid.

For adults with disabilities programs under Minnesota Statutes, section 124D.56:

	$	deleted text begin 710,000 deleted text end new text begin 750,000 new text end	.....	2006
	$	710,000	.....	2007

The 2006 appropriation includes $111,000 for 2005 and deleted text begin $599,000 deleted text end new text begin $639,000 new text end for 2006.

The 2007 appropriation includes deleted text begin $111,000 deleted text end new text begin $71,000 new text end for 2006 and deleted text begin $599,000 deleted text end new text begin $639,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 27.

Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5, is amended to read:

Subd. 5.

School-age care revenue.

For extended day aid under Minnesota Statutes, section 124D.22:

	$	17,000	.....	2006
		deleted text begin 7,000 deleted text end
	$	new text begin 4,000 new text end	.......	2007

The 2006 appropriation includes $4,000 for 2005 and $13,000 for 2006.

The 2007 appropriation includes deleted text begin $2,000 deleted text end new text begin $1,000 new text end for 2006 and deleted text begin $5,000 deleted text end new text begin $3,000 new text end for 2007.

ARTICLE 8

HIGHER EDUCATION

Section 1.

new text begin HIGHER EDUCATION APPROPRIATIONS. new text end

new text begin The sum shown in the column marked "APPROPRIATION" is added to the appropriations in Laws 2005, chapter 107, article 1, or other law to the agency and for the purposes specified in this article. The appropriation is from the general fund or another named fund and is available for the fiscal year indicated for the purpose. The figure "2007" used in this article means that the addition to the appropriation listed under it is available for the fiscal year ending June 30, 2007. new text end

			new text begin APPROPRIATION new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30, 2007 new text end

Sec. 2. new text begin BOARD OF REGENTS new text end

new text begin $ new text end

new text begin 5,000,000 new text end

new text begin To the Board of Regents of the University of Minnesota for the purposes of section 8. This appropriation is for academic programs supporting the University of Minnesota - Rochester, including faculty, staff, and program planning and development in the areas of biomedical technologies, engineering, and computer technologies, health care administration, and allied health programs; ongoing operations of industrial liaison activities; and operation of leased facilities. The funding base for activities related to section 8 is $5,000,000 for fiscal year 2008 and $6,330,000 for fiscal year 2009. new text end

Sec. 3.

Minnesota Statutes 2004, section 136A.101, subdivision 8, is amended to read:

Subd. 8.

Resident student.

"Resident student" means a student who meets one of the following conditions:

(1) a student who has resided in Minnesota for purposes other than postsecondary education for at least 12 months without being enrolled at a postsecondary educational institution for more than five credits in any term;

(2) a dependent student whose parent or legal guardian resides in Minnesota at the time the student applies;

(3) a student who graduated from a Minnesota high school, if the student was a resident of Minnesota during the student's period of attendance at the Minnesota high school new text begin and the student is physically attending a Minnesota postsecondary educational institution new text end ; deleted text begin or deleted text end

(4) a student who, after residing in the state for a minimum of one year, earned a high school equivalency certificate in Minnesota deleted text begin . deleted text end new text begin ; new text end

new text begin (5) a member, spouse, or dependent of a member of the armed forces of the United States stationed in Minnesota on active federal military service as defined in section 190.05, subdivision 5c; new text end

new text begin (6) a person or spouse of a person who relocated to Minnesota from an area that is declared a presidential disaster area within the preceding 12 months if the disaster interrupted the person's postsecondary education; or new text end

new text begin (7) a person defined as a refugee under United States Code, title 8, section 1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has continued to reside in Minnesota. new text end

Sec. 4.

Minnesota Statutes 2004, section 136A.15, subdivision 9, is amended to read:

Subd. 9.

new text begin Minnesota new text end resident deleted text begin student deleted text end .

" new text begin Minnesota new text end resident deleted text begin student deleted text end " means a student who meets new text begin one of new text end the new text begin following new text end conditions deleted text begin in section 136A.101, subdivision 8. deleted text end new text begin : new text end

new text begin (1) a student who has resided in Minnesota for purposes other than postsecondary education for at least 12 months without being enrolled at a postsecondary educational institution for more than five credits in any term; new text end

new text begin (2) a dependent student whose parent or legal guardian resides in Minnesota at the time the student applies; new text end

new text begin (3) a student who graduated from a Minnesota high school, if the student was a resident of Minnesota during the student's period of attendance at the Minnesota high school and the student is physically attending a Minnesota postsecondary educational institution; or new text end

new text begin (4) a student who, after residing in the state for a minimum of one year, earned a high school equivalency certificate in Minnesota. new text end

Sec. 5.

Minnesota Statutes 2004, section 136A.1701, subdivision 4, is amended to read:

Subd. 4.

Terms and conditions of loans.

new text begin (a) new text end The office may loan money upon such terms and conditions as the office may prescribe. The principal amount of a loan to an undergraduate student for a single academic year shall not exceed $6,000 new text begin for grade levels 1 and 2 effective July 1, 2006, through June 30, 2007. Effective July 1, 2007, the principal amount of a loan for grade levels 1 and 2 shall not exceed $7,500. The principal amount of a loan for grade levels 3, 4, and 5 shall not exceed $7,500 effective July 1, 2006 new text end . The aggregate principal amount of all loans made under this section to an undergraduate student shall not exceed deleted text begin $25,000 deleted text end new text begin $34,500 through June 30, 2007, and $37,500 after June 30, 2007 new text end . The principal amount of a loan to a graduate student for a single academic year shall not exceed $9,000. The aggregate principal amount of all loans made under this section to a student as deleted text begin a deleted text end new text begin an undergraduate and new text end graduate student shall not exceed deleted text begin $40,000. deleted text end new text begin $52,500 through June 30, 2007, and $55,500 after June 30, 2007. new text end new text begin The amount of the loan may not exceed the cost of attendance less all other financial aid, including PLUS loans or other similar parent loans borrowed on the student's behalf. The cumulative SELF loan debt must not exceed the borrowing maximums in paragraph (b). new text end

new text begin (b) The cumulative undergraduate borrowing maximums for SELF loans are: new text end

new text begin (1) effective July 1, 2006, through June 30, 2007: new text end

new text begin (i) grade level 1, $6,000; new text end

new text begin (ii) grade level 2, $12,000; new text end

new text begin (iii) grade level 3, $19,500; new text end

new text begin (iv) grade level 4, $27,000; and new text end

new text begin (v) grade level 5, $34,500; and new text end

new text begin (2) effective July 1, 2007: new text end

new text begin (i) grade level 1, $7,500; new text end

new text begin (ii) grade level 2, $15,000; new text end

new text begin (iii) grade level 3, $22,500; new text end

new text begin (iv) grade level 4, $30,000; and new text end

new text begin (v) grade level 5, $37,500. new text end

Sec. 6.

Minnesota Statutes 2004, section 136A.1701, subdivision 7, is amended to read:

Subd. 7.

Repayment of loans.

new text begin (a) new text end The office shall establish repayment procedures for loans made under this section, but in no event shall the period of permitted repayment new text begin for SELF II or SELF III loans new text end exceed ten years from the eligible student's termination of the student's postsecondary academic or vocational program, or 15 years from the date of the student's first loan under this section, whichever is less.

new text begin (b) For SELF loans from phases after SELF III, eligible students with aggregate principal loan balances from all SELF phases that are less than $18,750 shall have a repayment period not exceeding ten years from the eligible student's graduation or termination date. For SELF loans from phases after SELF III, eligible students with aggregate principal loan balances from all SELF phases of $18,750 or greater shall have a repayment period not exceeding 15 years from the eligible student's graduation or termination date. For SELF loans from phases after SELF III, the loans shall enter repayment no later than seven years after the first disbursement date on the loan. new text end

Sec. 7.

Minnesota Statutes 2004, section 137.022, subdivision 4, is amended to read:

Subd. 4.

Mineral research; scholarships.

(a) All income credited after July 1, 1992, to the permanent university fund from royalties for mining under state mineral leases from and after July 1, 1991, must be allocated as provided in this subdivision.

(b)(1) Fifty percent of the income, up to deleted text begin $25,000,000 deleted text end new text begin $50,000,000 new text end , must be credited to the mineral research account of the fund to be allocated for the Natural Resources Research Institute-Duluth and Coleraine facilities, for mineral and mineral-related research including mineral-related environmental research; and

(2) The remainder must be credited to the endowed scholarship account of the fund for distribution annually for scholastic achievement as provided by the Board of Regents to undergraduates enrolled at the University of Minnesota who are resident students as defined in section 136A.101, subdivision 8.

(c) The annual distribution from the endowed scholarship account must be allocated to the various campuses of the University of Minnesota in proportion to the number of undergraduate resident students enrolled on each campus.

(d) The Board of Regents must report to the education committees of the legislature biennially at the time of the submission of its budget request on the disbursement of money from the endowed scholarship account and to the environment and natural resources committees on the use of the mineral research account.

(e) Capital gains and losses and portfolio income of the permanent university fund must be credited to its three accounts in proportion to the market value of each account.

(f) The endowment support from the income and capital gains of the endowed mineral research and endowed scholarship accounts of the fund must not total more than six percent per year of the 36-month trailing average market value of the account from which the support is derived.

Sec. 8.

Minnesota Statutes 2004, section 137.17, subdivision 1, is amended to read:

Subdivision 1.

Establish.

The Board of Regents may establish a deleted text begin school of professional and graduate studies as a nonresidential deleted text end branch campus of the University of Minnesota deleted text begin , deleted text end new text begin in new text end Rochester, to serve the new text begin educational new text end needs of deleted text begin working adults and other nontraditional students in southeastern Minnesota. The campus shall be a joint partnership of the University of Minnesota with Rochester Community and Technical College, and Winona State University. deleted text end new text begin and to foster the economic goals of the region and the state. The University of Minnesota should expand higher education offerings in Rochester that it is uniquely qualified to provide. To the extent possible, the Board of Regents should provide its offerings in partnership with higher education institutions that already serve Rochester and the southeastern region of Minnesota, and should avoid unnecessary duplicative offerings of courses and programs, particularly in nursing and allied health programs. new text end

deleted text begin The Board of Trustees of the Minnesota State Colleges and Universities shall cooperate to achieve the foregoing. deleted text end

Sec. 9.

Minnesota Statutes 2004, section 137.17, subdivision 3, is amended to read:

Subd. 3.

Missions.

The legislature new text begin intends that the mission of the expanded education offerings in Rochester be congruent with the university's unique core mission of teaching, research, and outreach in order to support the educational needs and economic development of this region and the state. The legislature new text end recognizes that the distinctiveness of each of the deleted text begin partner deleted text end new text begin higher education new text end institutions in Rochester must be maintained to achieve success in serving the higher education needs of the community and the economic goals of the state. deleted text begin Further, the legislature intends that the University of Minnesota and the other partner institutions avoid duplicative offerings of courses and programs. Therefore, the University of Minnesota, Winona State University, and Rochester Community and Technical College shall develop jointly a statement of missions, roles, and responsibilities for the programs and services at Rochester which shall be submitted to the legislature by January 30, 2000, and any time thereafter that the missions, roles, and responsibilities change. deleted text end

Sec. 10.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2004, section 137.17, subdivisions 2 and 4, new text end new text begin are repealed. new text end

ARTICLE 9

ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE

Section 1. new text begin ENVIRONMENTAL, NATURAL RESOURCES, AND AGRICULTURAL APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "APPROPRIATIONS" are added to the appropriations in Laws 2005, First Special Session chapter 1, articles 1 and 2, or other specified law, to the named agencies and for the specified programs or activities. The sums shown are appropriated from the general fund, or another named fund, to be available for the fiscal years indicated for each purpose. The figures "2006" and "2007" used in this article mean that the appropriation or appropriations listed under them are available for the fiscal year ending June 30, 2006, or June 30, 2007, respectively. Appropriations in this article for the fiscal year ending June 30, 2006, are effective the day following final enactment. new text end

new text begin SUMMARY BY FUND new text end
		new text begin 2006 new text end		new text begin 2007 new text end		new text begin TOTAL new text end
new text begin General new text end	new text begin $ new text end	new text begin 577,000 new text end	new text begin $ new text end	new text begin 1,838,000 new text end	new text begin $ new text end	new text begin 2,415,000 new text end
new text begin Natural Resources new text end		new text begin -0- new text end		new text begin 530,000 new text end		new text begin 530,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 577,000 new text end	new text begin $ new text end	new text begin 2,368,000 new text end	new text begin $ new text end	new text begin 2,945,000 new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2006 new text end		new text begin 2007 new text end

Sec. 2. new text begin DEPARTMENT OF AGRICULTURE new text end

new text begin $ new text end

new text begin 158,000 new text end

new text begin $ new text end

new text begin 648,000 new text end

new text begin This appropriation includes money for the following purposes: new text end

new text begin (a) Invasive species control activities new text end

new text begin 118,000 new text end

new text begin 130,000 new text end

new text begin (b) Compensation payments for livestock depredation and crop damage new text end

new text begin 40,000 new text end

new text begin 53,000 new text end

new text begin (c) Plant pathology and biological control facility operations new text end

new text begin -0- new text end

new text begin 190,000 new text end

new text begin (d) Grant to Second Harvest Heartland on behalf of Minnesota's six Second Harvest food banks new text end

new text begin -0- new text end

new text begin 200,000 new text end

new text begin For the purchase of milk for distribution to Minnesota's food shelves and other charitable organizations that are eligible to receive food from the food banks. This appropriation becomes base-level funding. new text end

new text begin Milk purchased under the grants must be acquired from Minnesota milk processors and based on low-cost bids. The milk must be allocated to each Second Harvest food bank serving Minnesota according to the formula used in the distribution of United States Department of Agriculture commodities under the Emergency Food Assistance Program. Second Harvest Heartland must submit quarterly reports to the commissioner on forms prescribed by the commissioner. The reports must include, but are not limited to, information on the expenditure of money, the amount of milk purchased, and the organizations to which the milk was distributed. Second Harvest Heartland may enter into contracts or agreements with food banks for shared funding or reimbursement of the direct purchase of milk. Each food bank receiving money from this appropriation may use up to two percent of the grant for administrative expenses. new text end

new text begin (e) Renewable energy new text end

new text begin -0- new text end

new text begin 75,000 new text end

new text begin To the Department of Agriculture for handling increased renewable energy inquiries. new text end

Sec. 3. new text begin BOARD OF ANIMAL HEALTH new text end

new text begin 277,000 new text end

new text begin 408,000 new text end

new text begin To eliminate bovine tuberculosis from cattle herds in Minnesota. This is a onetime appropriation. new text end

Sec. 4. new text begin DEPARTMENT OF NATURAL RESOURCES new text end

new text begin 142,000 new text end

new text begin 1,312,000 new text end

new text begin Summary by Fund new text end
	new text begin 2006 new text end	new text begin 2007 new text end
new text begin General new text end	new text begin 142,000 new text end	new text begin 782,000 new text end
new text begin Natural Resources new text end	new text begin -0- new text end	new text begin 530,000 new text end

new text begin (a) Bovine tuberculosis surveillance and diagnosis new text end

new text begin 88,000 new text end

new text begin 132,000 new text end

new text begin To the Department of Natural Resources to diminish the risk of disease transmission in domestic livestock. This is a onetime appropriation. new text end

new text begin (b) Invasive species new text end

new text begin -0- new text end

new text begin 550,000 new text end

new text begin To the Department of Natural Resources for prevention and control of harmful invasive species. This appropriation includes money for the control of curly leaf pondweed in Lake Osakis. new text end

new text begin (c) Minnesota Shooting Sports Education Center new text end

new text begin -0- new text end

new text begin 100,000 new text end

new text begin The commissioner may make direct expenditures for the operation of the center or contract with another entity to operate the center. This appropriation is available only to the extent it is matched by at least $1 of nonstate money from gifts or grants for each $2 of state money. This appropriation is added to the agency base of the Department of Natural Resources. new text end

new text begin (d) Canoe routes new text end

new text begin -0- new text end

new text begin 130,000 new text end

new text begin This appropriation is from the water recreation account in the natural resources fund to the commissioner of natural resources to cooperate with local units of government in marking routes and designating river accesses and campsites under Minnesota Statutes, section 85.32. This is a onetime appropriation and is available until spent. new text end

new text begin (e) Emergency deterrent materials assistance new text end

new text begin 54,000 new text end

new text begin -0- new text end

new text begin For the emergency deterrent materials assistance program under Minnesota Statutes, section 97A.028, subdivision 3. This is a onetime appropriation and is available until June 30, 2007. new text end

new text begin (f) State park and recreation area operation new text end

new text begin -0- new text end

new text begin 400,000 new text end

new text begin $400,000 is from the state parks account in the natural resources fund for state park and recreation area operations and for the operation and maintenance of the U.S. Army Corps of Engineers recreation sites on Cross Lake, Gull Lake, Sandy Lake, Leech Lake, Lake Pokegama, and Lake Winnibigoshish. The expenditure of money on the U.S. Army Corps of Engineers recreation sites is contingent upon acceptance of a long-term agreement with the U.S. Army Corps of Engineers. Acceptance may be through a lease arrangement, a transfer of the recreation lands, or other agreement with the U.S. Army Corps of Engineers. Rules of the commissioner of natural resources relating to state recreation areas apply to U.S. Army Corps of Engineers recreation sites managed by the commissioner pursuant to this paragraph. This is a onetime appropriation. new text end

new text begin The commissioner may establish fees for these recreation sites as provided in Minnesota Statutes, section 85.052, subdivision 3. The money collected from fees established under this paragraph shall be deposited in the natural resources fund and credited to the state parks account. Until June 30, 2007, money deposited in the natural resources fund from fees established under this paragraph is appropriated to the commissioner for the operation and maintenance of the U.S. Army Corps of Engineers recreation sites. new text end

Sec. 5.

Minnesota Statutes 2005 Supplement, section 35.05, is amended to read:

35.05 AUTHORITY OF STATE BOARD.

(a) The state board may quarantine or kill any domestic animal infected with, or which has been exposed to, a contagious or infectious dangerous disease if it is necessary to protect the health of the domestic animals of the state.

(b) The board may regulate or prohibit the arrival in and departure from the state of infected or exposed animals and, in case of violation of any rule or prohibition, may detain any animal at its owner's expense. The board may regulate or prohibit the importation of domestic animals which, in its opinion, may injure the health of Minnesota livestock.

(c) When the governor declares an emergency under section 35.0661, the board, through its executive director, may assume control of such resources within the University of Minnesota's Veterinary Diagnostic Laboratory as necessary to effectively address the disease outbreak. The director of the laboratory and other laboratory personnel must cooperate fully in performing necessary functions related to the outbreak or threatened outbreak.

(d) deleted text begin Rules adopted by the board under authority of this chapter must be published in the State Register deleted text end new text begin The board may test or require tests of any bovine or cervidae in the state when the board deems it necessary to achieve or maintain bovine tuberculosis accredited free state or zone status under the regulations and laws administered by the United States Department of Agriculture new text end .

Sec. 6.

Minnesota Statutes 2004, section 84.0835, subdivision 3, is amended to read:

Subd. 3.

Citation authority.

Employees designated by the commissioner under subdivision 1 may issue citations, as specifically authorized under this subdivision, for violations of:

(1) sections 85.052, subdivision 3 (payment of camping fees in state parks) deleted text begin and deleted text end new text begin , new text end 85.45, subdivision 1 (cross-country ski pass) new text begin , and 85.46 (horse trail pass) new text end ;

(2) rules relating to hours and days of operation, restricted areas, noise, fireworks, environmental protection, fires and refuse, pets, picnicking, camping and dispersed camping, nonmotorized uses, construction of unauthorized permanent trails, mooring of boats, fish cleaning, swimming, storage and abandonment of personal property, structures and stands, animal trespass, state park individual and group motor vehicle permits, licensed motor vehicles, designated roads, and snowmobile operation off trails;

(3) rules relating to off-highway vehicle registration, display of registration numbers, required equipment, operation restrictions, off-trail use for hunting and trapping, and operation in lakes, rivers, and streams;

(4) rules relating to off-highway vehicle and snowmobile operation causing damage or in closed areas within the Richard J. Dorer Memorial Hardwood State Forest;

(5) rules relating to parking, snow removal, and damage on state forest roads; and

(6) rules relating to controlled hunting zones on major wildlife management units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007. new text end

Sec. 7.

Minnesota Statutes 2004, section 85.32, subdivision 1, is amended to read:

Subdivision 1.

Areas marked.

The commissioner of natural resources is authorized in cooperation with local units of government and private individuals and groups when feasible to mark canoe and boating routes on the Little Fork, Big Fork, Minnesota, St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in Swift County to Montevideo in Chippewa County, Long Prairie, Red River of the North, new text begin Sauk, Otter Tail, new text end and Crow Rivers which have historic and scenic values and to mark appropriately points of interest, portages, camp sites, and all dams, rapids, waterfalls, whirlpools, and other serious hazards which are dangerous to canoe and watercraft travelers.

Sec. 8.

new text begin [85.46] HORSE TRAIL PASS. new text end

new text begin Subdivision 1. new text end

new text begin Pass in possession. new text end

new text begin While riding, leading, or driving a horse on horse trails and associated day use areas on state trails, in state parks, in state recreation areas, and in state forests, a person 16 years of age or over shall carry in immediate possession and visibly display on person or horse tack, a valid horse trail pass. The pass must be available for inspection by a peace officer, a conservation officer, or an employee designated under section 84.0835. new text end

new text begin Subd. 2. new text end

new text begin License agents. new text end

new text begin (a) The commissioner of natural resources may appoint agents to issue and sell horse trail passes. The commissioner may revoke the appointment of an agent at any time. new text end

new text begin (b) The commissioner may adopt additional rules as provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted by the commissioner for the accounting and handling of passes according to section 97A.485, subdivision 11. new text end

new text begin (c) An agent must promptly deposit and remit all money received from the sale of passes, except issuing fees, to the commissioner. new text end

new text begin Subd. 3. new text end

new text begin Issuance. new text end

new text begin The commissioner of natural resources and agents shall issue and sell horse trail passes. The pass shall include the applicant's signature and other information deemed necessary by the commissioner. To be valid, a pass must be signed by the person riding, leading, or driving the horse. new text end

new text begin Subd. 4. new text end

new text begin Pass fees. new text end

new text begin (a) The fee for an annual horse trail pass is $20 for an individual 16 years of age and over. The fee shall be collected at the time the pass is purchased. Annual passes are valid for one year beginning January 1 and ending December 31. new text end

new text begin (b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and over. The fee shall be collected at the time the pass is purchased. The daily pass is valid only for the date designated on the pass form. new text end

new text begin Subd. 5. new text end

new text begin Issuing fee. new text end

new text begin In addition to the fee for a horse trail pass, an issuing fee of $1 per pass shall be charged. The issuing fee shall be retained by the seller of the pass. Issuing fees for passes sold by the commissioner of natural resources shall be deposited in the state treasury and credited to the horse trail account in the natural resources fund and are appropriated to the commissioner for the operation of the electronic licensing system. A pass shall indicate the amount of the fee that is retained by the seller. new text end

new text begin Subd. 6. new text end

new text begin Disposition of receipts. new text end

new text begin Fees collected under this section, except for the issuing fee, shall be deposited in the state treasury and credited to the horse trail account in the natural resources fund. Except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, the fees are appropriated to the commissioner of natural resources for trail acquisition, trail and facility development, and maintenance, enforcement, and rehabilitation of horse trails or trails authorized for horse use, whether for riding, leading, or driving, on state trails and in state parks, state recreation areas, and state forests. new text end

new text begin Subd. 7. new text end

new text begin Duplicate horse trail passes. new text end

new text begin The commissioner of natural resources and agents shall issue a duplicate pass to a person whose pass is lost or destroyed using the process established under section 97A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate horse trail pass is $2, with an issuing fee of 50 cents. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2007. new text end

Sec. 9.

Minnesota Statutes 2004, section 97A.028, subdivision 3, is amended to read:

Subd. 3.

Emergency deterrent materials assistance.

(a) For the purposes of this subdivision, "cooperative damage management agreement" means an agreement between a landowner or tenant and the commissioner that establishes a program for addressing the problem of destruction of the landowner's or tenant's specialty crops or stored forage crops by wild animals, or destruction of agricultural crops by flightless Canada geese.

(b) A landowner or tenant may apply to the commissioner for emergency deterrent materials assistance in controlling destruction of the landowner's or tenant's specialty crops or stored forage crops by wild animals, or destruction of agricultural crops by flightless Canada geese. Subject to the availability of money appropriated for this purpose, the commissioner shall provide suitable deterrent materials when the commissioner determines that:

(1) immediate action is necessary to prevent significant damage from continuing new text begin or to prevent the spread of bovine tuberculosis new text end ; and

(2) a cooperative damage management agreement cannot be implemented immediately.

(c) A person may receive emergency deterrent materials assistance under this subdivision more than once, but the cumulative total value of deterrent materials provided to a person, or for use on a parcel, may not exceed $3,000 for specialty crops new text begin , $5,000 for measures to prevent the spread of bovine tuberculosis within a five-mile radius of a cattle herd that is infected with bovine tuberculosis as determined by the Board of Animal Health new text end , deleted text begin or deleted text end $750 for new text begin protecting new text end stored forage crops, or $500 for agricultural crops damaged by flightless Canada geese. If a person is a co-owner or cotenant with respect to the specialty crops for which the deterrent materials are provided, the deterrent materials are deemed to be "provided" to the person for the purposes of this paragraph.

(d) As a condition of receiving emergency deterrent materials assistance under this subdivision, a landowner or tenant shall enter into a cooperative damage management agreement with the commissioner. Deterrent materials provided by the commissioner may include repellents, fencing materials, or other materials recommended in the agreement to alleviate the damage problem. If requested by a landowner or tenant, any fencing materials provided must be capable of providing long-term protection of specialty crops. A landowner or tenant who receives emergency deterrent materials assistance under this subdivision shall comply with the terms of the cooperative damage management agreement.

Sec. 10.

Laws 2005, First Special Session chapter 1, article 2, section 3, subdivision 2, is amended to read:

Subd. 2. Land and Mineral Resources Management
deleted text begin 8,903,000 deleted text end new text begin 8,653,000 new text end	8,675,000

Summary by Fund
General	deleted text begin 5,498,000 deleted text end new text begin 5,248,000 new text end	5,248,000
Natural Resources	2,222,000	2,222,000
Game and Fish	983,000	1,005,000
Permanent School	200,000	200,000

$275,000 the first year and $275,000 the second year are for iron ore cooperative research, of which $137,500 the first year and $137,500 the second year are available only as matched by $1 of nonstate money for each $1 of state money. The match may be cash or in-kind.

$86,000 the first year and $86,000 the second year are for minerals cooperative environmental research, of which $43,000 the first year and $43,000 the second year are available only as matched by $1 of nonstate money for each $1 of state money. The match may be cash or in-kind.

$2,046,000 the first year and $2,046,000 the second year are from the minerals management account in the natural resources fund for only the purposes specified in new Minnesota Statutes, section 93.2236, paragraph (c). Of this amount, $1,526,000 the first year and $1,526,000 the second year are for mineral resource management, $420,000 the first year and $420,000 the second year are for projects to enhance future income and promote new opportunities, including value-added iron products, geological mapping, and mercury research, and $100,000 the first year and $100,000 the second year are for environmental review and the processing of permits for mining projects that involve state-owned mineral rights. The appropriation is from the revenue deposited in the minerals management account under Minnesota Statutes, section 93.22, subdivision 1, paragraph (b). $100,000 each year is a onetime appropriation.

$150,000 the first year and $150,000 the second year are from the state forest suspense account in the permanent school fund to accelerate land exchanges, land sales, and commercial leasing of school trust lands. This appropriation is to be used toward meeting the provisions of Minnesota Statutes, section 92.121, to exchange school trust lands or put alternatives in effect when management practices have diminished or prohibited revenue generation, and the direction of Minnesota Statutes, section 127A.31, to secure maximum long-term economic return from the school trust lands consistent with fiduciary responsibilities and sound natural resources conservation and management principles.

$50,000 the first year and $50,000 the second year are from the state forest suspense account in the permanent school fund to identify, evaluate, and lease construction aggregate located on school trust lands.

deleted text begin $250,000 the first year is for a grant to the Board of Regents of the University of Minnesota to drill a 5,000 foot core sampling bore hole at the Tower-Soudan mine complex in support of a National Science Foundation grant. This is a onetime appropriation. deleted text end

Sec. 11.

new text begin EFFECTIVE DATE. new text end

new text begin Unless otherwise specified, this article is effective the day following final enactment. new text end

ARTICLE 10

CLEAN WATER LEGACY

Section 1. new text begin CLEAN WATER LEGACY APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "APPROPRIATIONS" are appropriated from the general fund to the agencies and for the purposes specified in this article. Unless otherwise specified, the appropriations in this article are available for the fiscal year ending June 30, 2007. Appropriations in this article that are encumbered under contract, including grant contracts, on or before June 30, 2007, are available until June 30, 2009. All the appropriations in this article are onetime appropriations. new text end

new text begin The appropriations in this article must be used to protect, restore, and preserve the quality of Minnesota's surface waters. Allowable activities include surface water assessments, program activities that target identified impairments, and development of total maximum daily load studies (TMDL's) as required by section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d), and applicable federal regulations. new text end

new text begin SUMMARY BY FUND new text end
				new text begin 2007 new text end		new text begin TOTAL new text end
new text begin General new text end			new text begin $ new text end	new text begin 15,000,000 new text end	new text begin $ new text end	new text begin 15,000,000 new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
						new text begin 2007 new text end

Sec. 2. new text begin POLLUTION CONTROL AGENCY new text end

new text begin $ new text end

new text begin 5,030,000 new text end

new text begin This appropriation may be spent for the following purposes: new text end

new text begin (a) Statewide assessment of surface water quality and trends new text end

new text begin 1,860,000 new text end

new text begin new text end

new text begin Up to $1,010,000 is available for grants or contracts to support citizen monitoring of surface waters. new text end

new text begin (b) Develop TMDL's and TMDL implementation plans for waters listed on the United States Environmental Protection Agency approved 2004 impaired waters list new text end

new text begin 3,170,000 new text end

new text begin Up to $1,740,000 is available for grants or contracts to develop TMDL's. new text end

Sec. 3. new text begin PUBLIC FACILITIES AUTHORITY new text end

new text begin 100,000 new text end

new text begin Small community wastewater treatment loans and grants new text end

new text begin 100,000 new text end

Sec. 4. new text begin AGRICULTURE DEPARTMENT new text end

new text begin 2,400,000 new text end

new text begin This appropriation may be spent for the following purposes: new text end

new text begin (a) Agricultural best management practices loan program new text end

new text begin 1,200,000 new text end

new text begin For loans to producers and rural landowners. This appropriation is available until spent. new text end

new text begin At least $1,000,000 is available for pass-through to local governments and lenders for low-interest loans. new text end

new text begin (b) Technical assistance new text end

new text begin 400,000 new text end

new text begin To expand technical assistance to producers and conservation professionals on nutrient and pasture management, target practices to sources of water impairments, coordinate federal and state farm conservation programs to fully utilize federal conservation funds, and expand conservation planning assistance for producers. new text end

new text begin $210,000 is available for grants or contracts to develop nutrient and conservation planning assistance information materials. new text end

new text begin (c) Research, evaluation, and effectiveness monitoring of agricultural practices in restoring impaired waters new text end

new text begin 800,000 new text end

Sec. 5. new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin 5,840,000 new text end

new text begin All of the money appropriated in this section as grants to local governments shall be administered through the Board of Water and Soil Resources' local water resources protection and management program under Minnesota Statutes, section 103B.3369. new text end

new text begin This appropriation may be spent for the following purposes: new text end

new text begin (a) Targeted nonpoint restoration cost-share and incentive payments new text end

new text begin 1,500,000 new text end

new text begin Up to $1,400,000 is available for grants. new text end

new text begin new text end

new text begin (b) Targeted nonpoint restoration technical, compliance, and engineering assistance activities new text end

new text begin 2,000,000 new text end

new text begin Up to $1,800,000 is available for grants. new text end

new text begin (c) Reporting and evaluation of applied soil and water conservation practices new text end

new text begin 200,000 new text end

new text begin (d) Grants to implement county individual sewage treatment system programs new text end

new text begin 730,000 new text end

new text begin (e) Grants to support local nonpoint source protection activities related to lake and river protection and management new text end

new text begin 1,410,000 new text end

Sec. 6. new text begin DEPARTMENT OF NATURAL RESOURCES new text end

new text begin 1,630,000 new text end

new text begin This appropriation may be spent for the following purposes: new text end

new text begin (a) Statewide assessment of surface water quality and trends new text end

new text begin 280,000 new text end

new text begin (b) Acquire high priority, sensitive riparian lands new text end

new text begin 500,000 new text end

new text begin (c) Forest stewardship planning and implementation; research, evaluation, and monitoring; and technical assistance to local units of government new text end

new text begin 850,000 new text end

Sec. 7.

Minnesota Statutes 2004, section 114D.30, subdivision 2, as added by 2006 S.F. No. 762, if enacted, is amended to read:

Subd. 2.

Membership; appointment.

The commissioners of natural resources, agriculture, and the Pollution Control Agency, and the executive director of the Board of Water and Soil Resources shall appoint one person from their respective agency to serve as a member of the council. Agency members serve as nonvoting members of the council. deleted text begin Seventeen deleted text end new text begin Nineteen new text end additional nonagency members of the council shall be appointed by the governor as follows:

(1) two members representing statewide farm organizations;

(2) deleted text begin one member deleted text end new text begin two members new text end representing business organizations;

(3) deleted text begin one member deleted text end new text begin two members new text end representing environmental organizations;

(4) one member representing soil and water conservation districts;

(5) one member representing watershed districts;

(6) one member representing nonprofit organizations focused on improvement of Minnesota lakes or streams;

(7) two members representing organizations of county governments, one member representing the interests of rural counties and one member representing the interests of counties in the seven-county metropolitan area;

(8) two members representing organizations of city governments;

(9) one member representing the Metropolitan Council established under section 473.123;

(10) one township officer;

(11) one member representing the interests of tribal governments;

(12) one member representing statewide hunting organizations;

(13) one member representing the University of Minnesota or a Minnesota state university; and

(14) one member representing statewide fishing organizations.

Members appointed under clauses (1) to (14) must not be registered lobbyists. In making appointments, the governor must attempt to provide for geographic balance. The members of the council appointed by the governor are subject to the advice and consent of the senate.

ARTICLE 11

ECONOMIC DEVELOPMENT

Section 1. new text begin ECONOMIC DEVELOPMENT APPROPRIATIONS. new text end			new text begin $ new text end		new text begin $ new text end
new text begin The sums shown in the columns marked "APPROPRIATIONS" are added to the appropriations in Laws 2005, First Special Session chapter 1, article 3, or other law to the agencies and for the purposes specified in this article. The appropriations are from the general fund or another named fund and are available for the fiscal years indicated for each purpose. The figures "2006" and "2007" used in this article mean that the addition to the appropriation listed under them is available for the fiscal year ending June 30, 2006, or June 30, 2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 2007. "The biennium" is fiscal years 2006 and 2007. Supplementary appropriations and reductions to appropriations for the fiscal year ending June 30, 2006, are effective the day following final enactment. new text end

new text begin SUMMARY BY FUND new text end
		new text begin 2006 new text end		new text begin 2007 new text end		new text begin TOTAL new text end
new text begin General new text end	new text begin $ new text end	new text begin - 0 - new text end	new text begin $ new text end	new text begin 29,552,000 new text end	new text begin $ new text end	new text begin 29,552,000 new text end
new text begin Workforce Development new text end		new text begin 1,250,000 new text end		new text begin 1,950,000 new text end		new text begin 3,200,000 new text end
new text begin Petroleum Tank Cleanup new text end		new text begin 477,000 new text end		new text begin 478,000 new text end		new text begin 955,000 new text end
new text begin Telecommunications Access new text end				new text begin 200,000 new text end		new text begin 200,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 1,727,000 new text end	new text begin $ new text end	new text begin 32,180,000 new text end	new text begin $ new text end	new text begin 33,907,000 new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2006 new text end		new text begin 2007 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total appropriation new text end

new text begin $ new text end

new text begin 1,250,000 new text end

new text begin $ new text end

new text begin 29,552,000 new text end

new text begin This appropriation includes money for the purposes in subdivisions 2 to 13. new text end

new text begin Subd. 2. new text end new text begin Business and community development new text end

new text begin 467,000 new text end

new text begin For a grant to BioBusiness Alliance of Minnesota for bioscience business development programs that will work to grow and create bioscience jobs in this state and position Minnesota as a global biobusiness leader. An annual report on the expenditure of the appropriation must be submitted to the senate Environment, Agriculture, and Economic Development Budget Division, and the house of representatives Jobs and Economic Opportunity Policy and Finance Committee by June 30 of each fiscal year until the appropriation is expended. The report must include the impact, if available, of the subsidy on reducing consumer costs of bioengineered products, and the jobs created, including wages and benefits. This is a onetime appropriation. new text end

new text begin Subd. 3. new text end new text begin Youthbuild new text end

new text begin 150,000 new text end

new text begin For the youthbuild program under Minnesota Statutes, sections 116L.361 to 116L.366. The base for this appropriation is $75,000 in fiscal year 2008 and after. new text end

new text begin Subd. 4. new text end new text begin Hard hats program new text end

new text begin 200,000 new text end

new text begin For a grant to the Summit Academy OIC for the 100 hard hats program. This is a onetime appropriation. new text end

new text begin Subd. 5. new text end new text begin Biotech partnership new text end

new text begin 15,000,000 new text end

new text begin For the direct and indirect expenses of the collaborative research partnership between the University of Minnesota and the Mayo Foundation for research in biotechnology and medical genomics. The is a onetime appropriation. new text end

new text begin An annual report on the expenditure of this appropriation must be submitted to the governor and the chairs of the senate Higher Education Budget Division, the house of representatives Higher Education Finance Committee, the senate Environment, Agriculture, and Economic Development Budget Division, and the house of representatives Jobs and Economic Opportunity Policy and Finance Committee by June 30 of each fiscal year until the appropriation is expended. This appropriation is available until expended. new text end

new text begin Subd. 6. new text end new text begin Itasca County infrastructure new text end

new text begin 11,500,000 new text end

new text begin For transfer to the Minnesota minerals 21st century fund for a grant to Itasca County to design, construct, and equip roads, rail lines, natural gas pipelines, water supply systems, or wastewater collection and treatment systems for a steel plant in Itasca County. Of this amount, up to $500,000 may be used for other mineral related projects in the taconite relief area. This is a onetime appropriation. new text end

new text begin Subd. 7. new text end new text begin Programs for persons with developmental and mental disabilities new text end

new text begin 150,000 new text end

new text begin For a grant to Advocating Change Together. The grant must be used to provide training, technical assistance, and resource materials to persons with developmental and mental health disabilities. This appropriation becomes part of the base appropriation for the Department of Employment and Economic Development. new text end

new text begin Subd. 8. new text end new text begin Wastewater treatment new text end

new text begin 100,000 new text end

new text begin For a grant to the city of Cedar Mills for costs it incurred in construction of a wastewater treatment system for 28 properties. The city must use the money to reduce its indebtedness for additional costs of the system that was not part of the originally planned project and resulted in excessive costs to homeowners. This is a onetime appropriation. new text end

new text begin Subd. 9. new text end new text begin Pilot workforce program new text end

new text begin 250,000 new text end

new text begin This appropriation is from the workforce development fund for grants to the West Central Initiative in Fergus Falls. These grants must be used to implement and operate Northern Connections, a pilot workforce program that provides one-stop supportive services to assist individuals as they transition into the workforce. This appropriation is available to the extent matched by $1 of nonstate money for each $1 of state money. This is a onetime appropriation. new text end

new text begin Subd. 10. new text end new text begin Summer youth employment new text end

new text begin 1,250,000 new text end

new text begin 1,250,000 new text end

new text begin This appropriation is from the workforce development fund for grants to fund summer youth employment in Minneapolis. The grants shall be used to fund up to 500 jobs for youth each summer. Of this appropriation, $250,000 the first year and $250,000 the second year are for a grant to the learn-to-earn summer youth employment program. The commissioner shall establish criteria for awarding the grants. This appropriation is available in either year of the biennium and is available until spent. new text end

new text begin Subd. 11. new text end new text begin Veterans' memorial new text end

new text begin 10,000 new text end

new text begin For a grant to the city of Worthington for the construction of a veterans' memorial in Freedom Veterans' Memorial Park. This appropriation is contingent upon the receipt of local matching money on a $1 to $1 basis. This is a onetime appropriation. new text end

new text begin Subd. 12. new text end new text begin Workforce partnership new text end

new text begin 450,000 new text end

new text begin This appropriation is from the workforce development fund for a pilot project to encourage the licensure in Minnesota of foreign-trained health care professionals, including physicians, nurses, dentists, pharmacists, veterinarians, and other allied health care professionals. The commissioner must work with local workforce boards to award grants to foreign-trained health care professionals that are sufficient to cover the actual costs of taking a course intended to prepare health care professionals for required licensing examinations and the fee for taking required licensing examinations. When awarding grants, the commissioner must consider whether the recipient's training involves a medical specialty that is in demand in one or more Minnesota communities. The commissioner also must establish additional criteria for the award of grants. The program will begin on July 1, 2006, and end on June 30, 2007. The commissioner must submit a report evaluating the effectiveness of the pilot program to the legislative committees with jurisdiction over employment by October 1, 2007. This is a onetime appropriation. new text end

new text begin Subd. 13. new text end new text begin Housing collaboration new text end

new text begin 25,000 new text end

new text begin For a grant to the city of St. Louis Park for the Meadowbrook collaborative housing project to enhance youth outreach services and to provide educational and recreational programming for at-risk youth. The collaborative must include a cross section of public and private sector community representatives. This is a onetime appropriation. new text end

Sec. 3. new text begin DEPARTMENT OF COMMERCE new text end

new text begin 477,000 new text end

new text begin 478,000 new text end

new text begin Notwithstanding Minnesota Statutes, section 115C.09, subdivision 2a, this appropriation is from the petroleum tank release cleanup fund for costs reimbursable to the Department of Transportation under Minnesota Statutes, section 115C.09, that were incurred before January 1, 2004. This is a onetime appropriation. new text end

Sec. 4. new text begin DEPARTMENT OF HUMAN SERVICES new text end

new text begin 200,000 new text end

new text begin This appropriation is from the telecommunications access Minnesota fund under Minnesota Statutes, section 237.52, to supplement the ongoing operational expenses of the Commission Serving Deaf and Hard-of-Hearing People. This appropriation shall become part of base level funding for the commission for the biennium beginning July 1, 2007. new text end

Sec. 5. new text begin BOXING COMMISSION new text end

new text begin 50,000 new text end

new text begin To operate and administer the commission. This is a onetime appropriation. new text end

new text begin By December 15, 2006, the commission must submit a report to the governor and the legislature setting forth a fee schedule that raises sufficient revenue to operate and administer the commission in fiscal year 2008 and thereafter. new text end

Sec. 6. new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin 1,700,000 new text end

new text begin For a grant to the Minnesota Film and TV Board for reimbursements of up to 15 percent of film production costs incurred in Minnesota, under Minnesota Statutes, section 116U.26. This appropriation is available for films that begin filming on or after May 1, 2006, and is available until June 30, 2007. This is a onetime appropriation. new text end

Sec. 7. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin 200,000 new text end

new text begin For a onetime grant to the Minnesota Agricultural Interpretive Center in Waseca to equip and restore current sites and exhibits. new text end

Sec. 8.

Laws 2005, First Special Session chapter 1, article 3, section 2, subdivision 4, is amended to read:

Subd. 4. Workforce Services

27,960,000

28,160,000

Summary by Fund
General	20,165,000	20,165,000
Workforce Development	7,795,000	7,995,000

$4,864,000 the first year and $4,864,000 the second year are from the general fund and $7,420,000 the first year and $7,420,000 the second year are from the workforce development fund for extended employment services for persons with severe disabilities or related conditions under Minnesota Statutes, section 268A.15. Of the amount from the workforce development fund, $500,000 each year is onetime.

$1,690,000 the first year and $1,690,000 the second year are from the general fund for grants under Minnesota Statutes, section 268A.11, for the eight centers for independent living. Money not expended the first year is available the second year.

$150,000 the first year and $150,000 the second year are from the general fund and $175,000 the first year and $175,000 the second year are from the workforce development fund for grants under Minnesota Statutes, section 268A.03, to Rise, Inc. for the Minnesota Employment Center for People Who are Deaf or Hard-of-Hearing. Money not expended the first year is available the second year. Of the amount from the workforce development fund, $150,000 each year is deleted text begin onetime deleted text end new text begin added to the budget base new text end .

$1,000,000 the first year and $1,000,000 the second year are from the general fund and $200,000 the first year and $400,000 the second year are from the workforce development fund for grants for programs that provide employment support services to persons with mental illness under Minnesota Statutes, sections 268A.13 and 268A.14. Up to $77,000 each year may be used for administrative and salary expenses. The appropriation from the workforce development fund is onetime.

$4,940,000 the first year and $4,940,000 the second year are from the general fund for state services for the blind activities.

$7,521,000 the first year and $7,521,000 the second year are from the general fund for the state's vocational rehabilitation program for people with significant disabilities to assist with employment, under Minnesota Statutes, chapter 268A.

On or after July 1, 2005, the commissioner of finance shall cancel the unencumbered balance in the contaminated site cleanup and development account to the unrestricted fund balance in the general fund.

Sec. 9.

new text begin [116J.656] SMALL BUSINESS ACCESS TO FEDERAL RESEARCH FUNDS. new text end

new text begin (a) The commissioner shall assist small businesses to access federal money through the federal Small Business Innovation Research program and the Small Business Technology Transfer program. In providing this assistance, the commissioner shall maintain connections to eligible federal programs, assess specific funding opportunities, review funding proposals, provide referrals to specific consulting services, and hold training workshops throughout the state. new text end

new text begin (b) Unless prohibited by federal law, the commissioner must implement fees for services that help companies seek federal Phase II Small Business Innovation Research grants. The fees must be deposited in a special revenue account and are annually appropriated to the commissioner for the Small Business Innovation Research and Small Business Technology Transfer programs. new text end

Sec. 9a.

new text begin [116U.26] FILM JOBS PRODUCTION PROGRAM. new text end

new text begin (a) The film production jobs program is created. The program shall be operated by the Minnesota Film and TV Board with administrative oversight and control by the director of Explore Minnesota Tourism. The program shall make payment to producers of feature films, national television programs, documentaries, music videos, and commercials that directly create new film jobs in Minnesota. To be eligible for a payment, a producer must submit documentation to the Minnesota Film and TV Board of expenditures for production costs incurred in Minnesota that are directly attributable to the production in Minnesota of a film product. new text end

new text begin The Minnesota Film and TV Board shall make recommendations to the director of Explore Minnesota Tourism about program payment, but the director has the authority to make the final determination on payments. The director's determination must be based on proper documentation of eligible production costs submitted for payments. No more than five percent of the funds appropriated for the program in any year may be expended for administration. new text end

new text begin (b) For the purposes of this section: new text end

new text begin (1) "production costs" means the cost of the following: new text end

new text begin (i) a story and scenario to be used for a film; new text end

new text begin (ii) salaries of talent, management, and labor, including payments to personal services corporations for the services of a performing artist; new text end

new text begin (iii) set construction and operations, wardrobe, accessories, and related services; new text end

new text begin (iv) photography, sound synchronization, lighting, and related services; new text end

new text begin (v) editing and related services; new text end

new text begin (vi) rental of facilities and equipment; or new text end

new text begin (vii) other direct costs of producing the film in accordance with generally accepted entertainment industry practice; and new text end

new text begin (2) "film" means a movie, television show, documentary, music video, or television commercial, whether on film or video. Film does not include news, current events, public programming, or a program that includes weather or market reports; a talk show; a production with respect to a questionnaire or contest; a sports event or sports activity; a gala presentation or awards show; a finished production that solicits funds; or a production for which the production company is required under United States Code, title 18, section 2257, to maintain records with respect to a performer portrayed in a single-media or multimedia program. new text end

Sec. 10.

Minnesota Statutes 2005 Supplement, section 216C.41, subdivision 3, is amended to read:

Subd. 3.

Eligibility window.

Payments may be made under this section only for electricity generated:

(1) from a qualified hydroelectric facility that is operational and generating electricity before December 31, deleted text begin 2007 deleted text end new text begin 2009 new text end ;

(2) from a qualified wind energy conversion facility that is operational and generating electricity before January 1, deleted text begin 2007 deleted text end new text begin 2008 new text end ; or

(3) from a qualified on-farm biogas recovery facility from July 1, 2001, through December 31, 2017.

Sec. 11.

Minnesota Statutes 2004, section 216C.41, subdivision 4, is amended to read:

Subd. 4.

Payment period.

(a) A facility may receive payments under this section for a ten-year period. No payment under this section may be made for electricity generated:

(1) by a qualified hydroelectric facility after December 31, deleted text begin 2017 deleted text end new text begin 2019 new text end ;

(2) by a qualified wind energy conversion facility after December 31, deleted text begin 2017 deleted text end new text begin 2018 new text end ; or

(3) by a qualified on-farm biogas recovery facility after December 31, 2015.

(b) The payment period begins and runs consecutively from the date the facility begins generating electricity or, in the case of refurbishment of a hydropower facility, after substantial repairs to the hydropower facility dam funded by the incentive payments are initiated.

Sec. 12.

Minnesota Statutes 2004, section 326.105, is amended to read:

326.105 FEES.

The fee for licensure or renewal of licensure as an architect, professional engineer, land surveyor, landscape architect, or geoscience professional is $120 per biennium. The fee for certification as a certified interior designer or for renewal of the certificate is $120 per biennium. The fee for an architect applying for original certification as a certified interior designer is $50 per biennium. The initial license or certification fee for all professions is $120. The renewal fee shall be paid biennially on or before June 30 of each even-numbered year. The renewal fee, when paid by mail, is not timely paid unless it is postmarked on or before June 30 of each even-numbered year. The application fee is $25 for in-training applicants and $75 for professional license applicants.

deleted text begin The fee for monitoring licensing examinations for applicants is $25, payable by the applicant. deleted text end

Sec. 13.

new text begin [341.21] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin The definitions in this section apply to this chapter. new text end

new text begin Subd. 2. new text end

new text begin Boxing. new text end

new text begin "Boxing" means the act of attack and defense with the fists, using padded gloves, that is practiced as a sport under the rules of the Association of Boxing Commissions, or equivalent. Where applicable, boxing includes tough person contests. new text end

new text begin Subd. 3. new text end

new text begin Commission. new text end

new text begin "Commission" means the Minnesota Boxing Commission. new text end

new text begin Subd. 4. new text end

new text begin Contest. new text end

new text begin "Contest" means any boxing contest, match, or exhibition. new text end

new text begin Subd. 5. new text end

new text begin Professional. new text end

new text begin "Professional" means any person who competes for any money prize or a prize that exceeds the value of $50 or teaches, pursues, or assists in the practice of boxing as a means of obtaining a livelihood or pecuniary gain. new text end

new text begin Subd. 6. new text end

new text begin Director. new text end

new text begin "Director" means the executive director of the commission. new text end

new text begin Subd. 7. new text end

new text begin Tough person contest. new text end

new text begin "Tough person contest," including contests marketed as tough man and tough woman contests, means any boxing match consisting of one-minute rounds between two or more persons who use their hands, or their feet, or both, in any manner. Tough person contest does not include kick boxing or any recognized martial arts competition. new text end

Sec. 14.

new text begin [341.22] BOXING COMMISSION. new text end

new text begin There is hereby created the Minnesota Boxing Commission consisting of five members who are citizens of this state. The members must be appointed by the governor. One member of the commission must be a retired judge of the Minnesota district court, Minnesota Court of Appeals, Minnesota Supreme Court, the United States District Court for the District of Minnesota, or the Eighth Circuit Court of Appeals, and at least three members must have knowledge of the boxing industry. The governor shall make serious efforts to appoint qualified women to serve on the commission. Membership terms, compensation of members, removal of members, the filling of membership vacancies, and fiscal year and reporting requirements must be as provided in sections 214.07 to 214.09. The provision of staff, administrative services, and office space; the review and processing of complaints; the setting of fees; and other provisions relating to commission operations must be as provided in chapter 214. The purpose of the commission is to protect health, promote safety, and ensure fair events. new text end

Sec. 15.

new text begin [341.23] LIMITATIONS. new text end

new text begin No member of the Boxing Commission may directly or indirectly promote a boxing contest, directly or indirectly engage in the managing of a boxer, or have an interest in any manner in the proceeds from a boxing contest. new text end

Sec. 16.

new text begin [341.24] EXECUTIVE DIRECTOR. new text end

new text begin The governor may appoint, and at pleasure remove, an executive director and prescribe the powers and duties of the office. The executive director shall not be a member of the commission. The commission may employ personnel necessary to the performance of its duties. new text end

Sec. 17.

new text begin [341.25] RULES. new text end

new text begin (a) The commission may adopt rules that include standards for the physical examination and condition of boxers and referees. new text end

new text begin (b) The commission may adopt other rules necessary to carry out the purposes of this chapter, including, but not limited to, the conduct of boxing exhibitions, bouts, and fights, and their manner, supervision, time, and place. new text end

Sec. 18.

new text begin [341.26] MEETINGS. new text end

new text begin The commission shall hold a regular meeting quarterly and may hold special meetings. Except as otherwise provided in law, all meetings of the commission must be open to the public and reasonable notice of the meetings must be given under chapter 13D. new text end

Sec. 19.

new text begin [341.27] COMMISSION DUTIES. new text end

new text begin The commission shall: new text end

new text begin (1) issue, deny, renew, suspend, or revoke licenses; new text end

new text begin (2) make and maintain records of its acts and proceedings including the issuance, denial, renewal, suspension, or revocation of licenses; new text end

new text begin (3) keep public records of the commission open to inspection at all reasonable times; new text end

new text begin (4) assist the director in the development of rules to be implemented under this chapter; and new text end

new text begin (5) conform to the rules adopted under this chapter. new text end

Sec. 20.

new text begin [341.28] REGULATION OF BOXING CONTESTS. new text end

new text begin Subdivision 1. new text end

new text begin Regulatory authority; boxing. new text end

new text begin All professional boxing contests are subject to this chapter. Every contestant in a boxing contest shall wear padded gloves that weigh at least eight ounces. The commission shall, for every boxing contest: new text end

new text begin (1) direct a commission member to be present; and new text end

new text begin (2) direct the attending commission member to make a written report of the contest. new text end

new text begin All boxing contests within this state must be conducted according to the requirements of this chapter. new text end

new text begin Subd. 2. new text end

new text begin Regulatory authority; tough person contests. new text end

new text begin All tough person contests, including amateur tough person contests, are subject to this chapter. Every contestant in a tough person contest shall wear padded gloves that weigh at least 12 ounces. new text end

Sec. 21.

new text begin [341.29] JURISDICTION OF COMMISSION. new text end

new text begin The commission shall: new text end

new text begin (1) have sole direction, supervision, regulation, control, and jurisdiction over all boxing contests and tough person contests held within this state unless a contest is exempt from the application of this chapter under federal law; new text end

new text begin (2) have sole control, authority, and jurisdiction over all licenses required by this chapter; and new text end

new text begin (3) grant a license to an applicant if, in the judgment of the commission, the financial responsibility, experience, character, and general fitness of the applicant are consistent with the public interest, convenience, or necessity and the best interests of boxing and conforms with this chapter and the commission's rules. new text end

Sec. 22.

new text begin [341.30] LICENSURE; PERSONS REQUIRED TO OBTAIN LICENSES; REQUIREMENTS; BACKGROUND INFORMATION; FEE; BOND. new text end

new text begin Subdivision 1. new text end

new text begin Licensure; individuals. new text end

new text begin All referees, judges, matchmakers, promoters, trainers, ring announcers, timekeepers, ringside physicians, boxers, boxers' managers, and boxers' seconds are required to be licensed by the commission. The commission shall not permit any of these persons to participate in the holding or conduct of any boxing contest unless the commission has first issued the person a license. new text end

new text begin Subd. 2. new text end

new text begin Entity licensure. new text end

new text begin Before participating in the holding or conduct of any boxing contest, a corporation, partnership, limited liability company, or other business entity organized and existing under law, its officers and directors, and any person holding 25 percent or more of the ownership of the corporation shall obtain a license from the commission and must be authorized to do business under the laws of this state. new text end

new text begin Subd. 3. new text end

new text begin Background investigation. new text end

new text begin The commission may require referees, judges, matchmakers, promoters, and boxers to furnish fingerprints and background information under commission rules before licensure. The commission shall charge a fee for receiving fingerprints and background information in an amount determined by the commission. The commission may require referees, judges, matchmakers, promoters, and boxers to furnish fingerprints and background information before license renewal. The fee may include a reasonable charge for expenses incurred by the commission or the Department of Public Safety. For this purpose, the commission and the Department of Public Safety may enter into an interagency agreement. new text end

new text begin Subd. 4. new text end

new text begin Prelicensure requirements. new text end

new text begin (a) Before the commission issues a license to a promoter, matchmaker, corporation, or other business entity, the applicant shall: new text end

new text begin (1) provide the commission with a copy of any agreement between a contestant and the applicant that binds the applicant to pay the contestant a certain fixed fee or percentage of the gate receipts; new text end

new text begin (2) show on the application the owner or owners of the applicant entity and the percentage of interest held by each owner holding a 25 percent or more interest in the applicant; new text end

new text begin (3) provide the commission with a copy of the latest financial statement of the entity; and new text end

new text begin (4) provide the commission with a copy or other proof acceptable to the commission of the insurance contract or policy required by this chapter. new text end

new text begin (b) Before the commission issues a license to a promoter, the applicant shall deposit with the commission a cash bond or surety bond in an amount set by the commission. The bond shall be executed in favor of this state and shall be conditioned on the faithful performance by the promoter of the promoter's obligations under this chapter and the rules adopted under it. new text end

new text begin (c) Before the commission issues a license to a boxer, the applicant shall submit to the commission the results of a current medical examination on forms furnished or approved by the commission. The medical examination must include an ophthalmological and neurological examination. The ophthalmological examination must be designed to detect any retinal defects or other damage or condition of the eye that could be aggravated by boxing. The neurological examination must include an electroencephalogram or medically superior test if the boxer has been knocked unconscious in a previous boxing or other athletic competition. The commission may also order an electroencephalogram or other appropriate neurological or physical examination before any contest, match, or exhibition if it determines that the examination is desirable to protect the health of the boxer. new text end

Sec. 23.

new text begin [341.31] SIMULCAST LICENSES. new text end

new text begin The commission shall issue a license to a person or organization holding, showing, or exhibiting a simultaneous telecast of any live, current, or spontaneous boxing or sparring match on a closed circuit telecast or subscription television program viewed within the state, whether originating in this state or elsewhere, and for which a charge is made. Each person or organization shall apply for such a license in advance of each showing. No showing may be licensed unless the person or organization applying for the license: new text end

new text begin (1) certifies that the match is subject to the jurisdiction and regulation of a boxing or athletic regulatory authority in another state or country; new text end

new text begin (2) certifies the match is in compliance with the requirements of the authority; new text end

new text begin (3) identifies the authority; and new text end

new text begin (4) provides any information the commission may require. new text end

Sec. 24.

new text begin [341.32] LICENSE FEES; EXPIRATION; RENEWAL. new text end

new text begin Subdivision 1. new text end

new text begin Annual licensure. new text end

new text begin The commission may establish and issue annual licenses subject to the collection of advance fees by the commission for promoters, matchmakers, managers, judges, referees, ring announcers, ringside physicians, timekeepers, boxers, boxers' trainers, boxers' seconds, business entities filing for a license to participate in the holding of any boxing contest, and officers, directors, or other persons affiliated with the business entity. new text end

new text begin Subd. 2. new text end

new text begin Expiration and renewal. new text end

new text begin A license expires December 31 at midnight in the year of its issuance and may be renewed by filing an application for renewal with the commission and payment of the license fee. An application for a license and renewal of a license must be on a form provided by the commission. There is a 30-day grace period during which a license may be renewed if a late filing penalty fee equal to the license fee is submitted with the regular license fee. A licensee that files late shall not conduct any activity regulated by this chapter until the commission has renewed the license. If the licensee fails to apply to the commission within the 30-day grace period, the licensee must apply for a new license under subdivision 1. new text end

Sec. 25.

new text begin [341.321] FEE SCHEDULE. new text end

new text begin The fee schedule for licenses issued by the Minnesota Boxing Commission is as follows: new text end

new text begin (1) referees, $35 for each initial license and each renewal; new text end

new text begin (2) promoters, $400 for each initial license and each renewal; new text end

new text begin (3) judges, $25 for each initial license and each renewal; new text end

new text begin (4) trainers, $35 for each initial license and each renewal; new text end

new text begin (5) ring announcers, $25 for each initial license and each renewal; new text end

new text begin (6) boxers' seconds, $25 for each initial license and each renewal; new text end

new text begin (7) timekeepers, $25 for each initial license and each renewal; and new text end

new text begin (8) boxers, $35 for each initial license and each renewal. new text end

new text begin All fees collected by the Minnesota Boxing Commission must be deposited in the Boxing Commission account in the special revenue fund. new text end

Sec. 26.

new text begin [341.33] CONTESTANTS AND REFEREES; PHYSICAL EXAMINATION; ATTENDANCE OF PHYSICIAN; PAYMENT OF FEES. new text end

new text begin Subdivision 1. new text end

new text begin Examination by physician. new text end

new text begin All boxers and referees must be examined by a physician licensed by this state within three hours before entering the ring, and the examining physician shall immediately file with the commission a written report of the examination. The physician's examination shall report on the condition of the boxer's heart and general physical and neurological condition. The physician's report may record the condition of the boxer's nervous system and brain as required by the commission. The physician may prohibit the boxer from entering the ring if, in the physician's professional opinion, it is in the best interest of the boxer's health. The cost of the examination is payable by the person or entity conducting the contest or exhibition. new text end

new text begin Subd. 2. new text end

new text begin Attendance of physician. new text end

new text begin A person holding or sponsoring a boxing contest shall have in attendance a physician licensed by this state. The commission may establish a schedule of fees to be paid to each attending physician by the person holding or sponsoring the contest. new text end

Sec. 27.

new text begin [341.34] INSURANCE. new text end

new text begin Subdivision 1. new text end

new text begin Required insurance. new text end

new text begin The commission shall: new text end

new text begin (1) require insurance coverage for a boxer to provide for medical, surgical, and hospital care for injuries sustained in the ring in an amount of at least $20,000 and payable to the boxer as beneficiary; and new text end

new text begin (2) require life insurance for a boxer in the amount of at least $20,000 payable in case of accidental death resulting from injuries sustained in the ring. new text end

new text begin Subd. 2. new text end

new text begin Payment for insurance. new text end

new text begin The cost of the insurance required by this section is payable by the promoter. new text end

Sec. 28.

new text begin [341.35] PENALTIES FOR NONLICENSED EXHIBITIONS. new text end

new text begin Any person or persons who send or cause to be sent, published, or otherwise made known, any challenge to fight what is commonly known as a prize fight, or engage in any public boxing or sparring match or contest, with or without gloves, for any prize, reward, or compensation, or for which any admission fee is charged directly or indirectly, or go into training preparatory for the fight, exhibition, or contest, or act as a trainer, aider, abettor, backer, umpire, referee, second, surgeon, assistant, or attendant at the fight, exhibition, or contest, or in any preparation for same, and any owner or lessee of any ground, building, or structure of any kind permitting the same to be used for any fight, exhibition, or contest, is guilty of a misdemeanor unless a license for the holding of the fight, exhibition, or contest has been issued by the commission in compliance with the rules adopted by it. new text end

Sec. 29.

new text begin [341.37] APPROPRIATION. new text end

new text begin A Boxing Commission account is created in the special revenue fund. Money in the account is annually appropriated to the Boxing Commission for the purposes of conducting its statutory responsibilities and obligations. new text end

Sec. 30.

Minnesota Statutes 2004, section 469.334, subdivision 1, is amended to read:

Subdivision 1.

Commissioner to designate.

(a) The commissioner, in consultation with the commissioner of revenue and the director of the Office of Strategic and Long-Range Planning, shall designate deleted text begin not more than deleted text end one new text begin or more new text end biotechnology and health sciences industry zone. Priority must be given to applicants with a development plan that links a higher education/research institution with a biotechnology and health sciences industry facility.

(b) The commissioner may consult with the applicant prior to the designation of the zone. The commissioner may modify the development plan, including the boundaries of the zone or subzones, if in the commissioner's opinion a modified plan would better meet the objectives of the biotechnology and health sciences industry zone program. The commissioner shall notify the applicant of the modifications and provide a statement of the reasons for the modifications.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 31.

Minnesota Statutes 2004, section 469.334, subdivision 4, is amended to read:

Subd. 4.

Designation schedule.

(a) The schedule in paragraphs (b) to (e) applies to the designation of the new text begin first new text end biotechnology and health sciences industry zone.

(b) The commissioner shall publish the form for applications and any procedural, form, or content requirements for applications by no later than August 1, 2003. The commissioner may publish these requirements on the Internet, in the State Register, or by any other means the commissioner determines appropriate to disseminate the information to potential applicants for designation.

(c) Applications must be submitted by October 15, 2003.

(d) The commissioner shall designate the zones by no later than December 31, 2003.

(e) The designation of the zones takes effect January 1, 2004.

new text begin (f) Additional zones may be designated in later years, following substantially the same application and designation process as provided in paragraphs (b) to (e). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 32.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2004, section 116J.543, new text end new text begin is repealed. new text end

ARTICLE 12

TRANSPORTATION

Section 1.

new text begin TRANSPORTATION APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "APPROPRIATIONS" are added to the appropriations in Laws 2005, First Special Session chapter 6, article 1, or other specified law, to the named agencies and for the specified purposes. The sums shown are appropriated from the general fund, or another named fund, to be available for the fiscal year indicated for each purpose. The figure "2007" used in this article means that the appropriations listed under it are available for the fiscal year ending June 30, 2007. new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30, 2007 new text end
					new text begin $ new text end

Sec. 2. new text begin TOTAL APPROPRIATION new text end

new text begin 692,000 new text end

Sec. 3. new text begin TRANSPORTATION new text end

new text begin Department of Transportation radio tower new text end

new text begin 380,000 new text end

new text begin To design and construct a new radio tower in Roseau County. This appropriation is available until expended. new text end

Sec. 4. new text begin STATE PATROL new text end

new text begin Automatic defibrillators new text end

new text begin 312,000 new text end

new text begin For purchase of automated external defibrillators for State Patrol vehicles. This is a onetime appropriation. It is available until June 30, 2009, and is available only as matched by $2 from nonstate sources for each $3 from this appropriation. new text end

Sec. 5.

new text begin EFFECTIVE DATE. new text end

new text begin This article is effective the day following final enactment. new text end

ARTICLE 13

PUBLIC SAFETY

Section 1. new text begin PUBLIC SAFETY APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "APPROPRIATIONS" are added to the appropriations in Laws 2005, chapter 136, article 1, or other law to the agencies and for the purposes specified in this article. The appropriations are from the general fund or another named fund and are available for the fiscal years indicated for each purpose. The figures "2006" and "2007" used in this article mean that the addition to the appropriation listed under them is available for the fiscal year ending June 30, 2006, or June 30, 2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 2007. "The biennium" is fiscal years 2006 and 2007. Supplementary appropriations and reductions to appropriations for the fiscal year ending June 30, 2006, are effective the day following final enactment. new text end

new text begin SUMMARY BY FUND new text end
		new text begin 2006 new text end		new text begin 2007 new text end		new text begin TOTAL new text end
new text begin General new text end	new text begin $ new text end	new text begin 3,846,000 new text end	new text begin $ new text end	new text begin 15,774,000 new text end	new text begin $ new text end	new text begin 19,620,000 new text end
new text begin Special Revenue new text end		new text begin -0- new text end		new text begin 200,000 new text end		new text begin 200,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 3,846,000 new text end	new text begin $ new text end	new text begin 15,974,000 new text end	new text begin $ new text end	new text begin 19,820,000 new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2006 new text end		new text begin 2007 new text end

Sec. 2. new text begin SUPREME COURT new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 600,000 new text end

new text begin AOD offenders new text end

new text begin For the first phase of a judicial initiative to more effectively address the increasing numbers of alcohol and other drug (AOD) offenders coming into Minnesota courts, including the increase in methamphetamine offenders. This is a onetime appropriation. Of this amount: new text end

new text begin (1) $300,000 is for a study to recommend a more uniform and cost-effective structure for creating statewide applications of the problem-solving court model; new text end

new text begin (2) $100,000 is to augment treatment services for problem-solving courts; and new text end

new text begin (3) $200,000 is for development of a multicounty pilot problem-solving court. new text end

Sec. 3. new text begin BOARD ON JUDICIAL STANDARDS new text end

new text begin 172,000 new text end

new text begin -0- new text end

new text begin Special hearings new text end

new text begin For costs of special hearings and an investigation regarding complaints of judicial misconduct. This is a onetime appropriation and is available until June 30, 2007. new text end

Sec. 4. new text begin PUBLIC SAFETY new text end

new text begin Subdivision 1. new text end new text begin Total appropriation new text end

new text begin 461,000 new text end

new text begin 4,628,000 new text end

new text begin These appropriations are added to the appropriations in Laws 2005, chapter 136, article 1, section 9. The amounts that may be spent from these appropriations for each program are specified in subdivisions 2, 3, and 4. new text end

new text begin Subd. 2. new text end new text begin Emergency Management new text end

new text begin 284,000 new text end

new text begin -0- new text end

new text begin The fiscal year 2006 appropriation is to provide matching funds for FEMA funds received for natural disaster assistance payments. This appropriation is available on the day after enactment and is available until June 30, 2007. This is a onetime appropriation. new text end

new text begin Subd. 3. new text end new text begin Criminal Apprehension new text end

new text begin -0- new text end

new text begin 1,300,000 new text end

new text begin This appropriation may be spent for the following purposes: new text end

new text begin (a) Child pornography investigative unit new text end

new text begin -0- new text end

new text begin 1,000,000 new text end

new text begin To create a child pornography investigative unit to assist law enforcement throughout the state. The base for this activity shall be $778,000 in fiscal year 2008 and fiscal year 2009. new text end

new text begin (b) Predatory offender database new text end

new text begin -0- new text end

new text begin 200,000 new text end

new text begin For the enhancement of the predatory offender database to facilitate public notification of noncompliant sex offenders via the Internet. The base for this activity shall be $116,000 in fiscal year 2008 and fiscal year 2009. new text end

new text begin (c) Missing persons and unidentified bodies backlog new text end

new text begin -0- new text end

new text begin 100,000 new text end

new text begin To address the missing persons and unidentified bodies backlog. This is a onetime appropriation. new text end

new text begin The superintendent shall coordinate with federal and local units of government; federal, state, and local law enforcement agencies; medical examiners; coroners; odontologists; and other entities to reduce the state's reporting, data entry, and record-keeping backlog relating to missing persons and unidentified bodies. To the degree feasible, the superintendent shall ensure that all necessary data and samples, including, but not limited to, DNA samples and dental records get entered into all relevant federal and state databases. new text end

new text begin By February 1, 2007, the superintendent shall report to the chairs and ranking minority members of the senate and house committees and divisions having jurisdiction over criminal justice policy and funding on the efforts to reduce the state's backlog. The report must give detailed information on how this appropriation was spent and how this affected the backlog. In addition, the report must make recommendations for changes to state law, including suggested legislative language, to improve reporting, data entry, and record keeping relating to future cases involving missing persons and unidentified bodies. new text end

new text begin The superintendent, in consultation with the Minnesota Sheriffs Association and the Minnesota Chiefs of Police Association, shall develop a model policy to address law enforcement efforts and duties regarding missing adults and provide training to local law enforcement agencies on this model policy. new text end

new text begin By February 1, 2007, the superintendent shall report to the chairs and ranking minority members of the senate and house committees and divisions having jurisdiction over criminal justice policy and funding on the model policy and training. new text end

new text begin Subd. 4. new text end new text begin Office of justice programs new text end

new text begin 177,000 new text end

new text begin 3,328,000 new text end

new text begin This appropriation may be spent for the following purposes: new text end

new text begin (a) Gang strike force and narcotic task forces new text end

new text begin -0- new text end

new text begin 800,000 new text end

new text begin For expanded operations of the criminal gang strike force and narcotics task forces. This money is to be used to expand the activities of the criminal gang strike force and narcotics task forces to include investigations of gang or narcotics-related human trafficking and domestic or international drug trafficking cases. This appropriation must be used to increase the complement of individuals assigned to the criminal gang strike force and narcotics task forces throughout the state. new text end

new text begin (b) Safe harbor for sexually exploited youth pilot project new text end

new text begin -0- new text end

new text begin 98,000 new text end

new text begin For a grant to Ramsey County to implement the safe harbor for sexually exploited youth pilot project. The project must develop a victim services model to address the needs of sexually exploited youth. The project must focus on intervention and prevention methods; training for law enforcement, educators, social services providers, health care workers, advocates, court officials, prosecutors, and public defenders; and programs promoting positive outcomes for victims. The project must include development and implementation of a statewide model protocol for intervention and response methods for professionals, individuals, and agencies that may encounter sexually exploited youth. "Sexually exploited youth" include juvenile runaways, truants, and victims of criminal sexual conduct, prostitution, labor trafficking, sex trafficking, domestic abuse, and assault. This is a onetime appropriation. new text end

new text begin By January 15, 2008, Ramsey County shall report to the chairs and ranking minority members of the senate and house committees and divisions having jurisdiction over criminal justice funding and policy on the results of the pilot project. new text end

new text begin (c) Human trafficking task force and plan new text end

new text begin -0- new text end

new text begin 75,000 new text end

new text begin To implement Minnesota Statutes, sections 299A.78 to 299A.7955, relating to the human trafficking task force and plan. This is a onetime appropriation. new text end

new text begin (d) Legal advocacy trafficking victims new text end

new text begin -0- new text end

new text begin 60,000 new text end

new text begin For grants to three weekly clinics in Hennepin County that are staffed by attorneys from a nonprofit organization that provides free legal services to immigrants. This is a onetime appropriation. new text end

new text begin (e) Toll-free hotline new text end

new text begin -0- new text end

new text begin 35,000 new text end

new text begin To implement the toll-free hotline for trafficking victims described in Minnesota Statutes, section 299A.7957. The base budget for this activity is $15,000 in fiscal year 2008 and fiscal year 2009. new text end

new text begin (f) Youth intervention programs new text end

new text begin -0- new text end

new text begin 200,000 new text end

new text begin For youth intervention programs under Minnesota Statutes, section 299A.73. This money must be used to help existing programs serve unmet needs in communities and to create new programs in underserved areas of the state. This appropriation is added to the program's base budget. new text end

new text begin (g) Crime victim support grant new text end

new text begin -0- new text end

new text begin 150,000 new text end

new text begin For a grant to a private, nonprofit organization dedicated to providing immediate and long-term emotional support and practical help for the families and friends of individuals who have died by homicide, suicide, or accident. This is a onetime appropriation. new text end

new text begin (h) Minneapolis Security Collaborative new text end

new text begin -0- new text end

new text begin 200,000 new text end

new text begin For a grant to the city of Minneapolis. This grant money is to be used by the Minneapolis Police Department to expand the worksite system throughout the city that supports the downtown security collaborative currently in use in the city's first precinct. The city shall give the highest priority to expanding the system to neighborhoods having the highest crime rate per capita. This is a onetime appropriation. new text end

new text begin (i) Additional Minneapolis peace officers new text end

new text begin -0- new text end

new text begin 1,533,000 new text end

new text begin For a grant to the city of Minneapolis. This grant money is to be used by the Minneapolis Police Department to hire additional peace officers to be assigned to downtown Minneapolis. new text end

new text begin The commissioner shall work with the Bureau of Criminal Apprehension, the State Patrol, the Hennepin County Sheriff's Office, the Minneapolis Police Department, and the Metro Transit Police, in a collaborative manner to increase and coordinate law enforcement efforts in downtown Minneapolis. This is a onetime appropriation. new text end

new text begin (j) Financial Crimes Task Force new text end

new text begin 177,000 new text end

new text begin 177,000 new text end

new text begin This is a onetime appropriation. new text end

Sec. 5. new text begin CORRECTIONS new text end

new text begin Subdivision 1. new text end new text begin Total appropriation new text end

new text begin 3,213,000 new text end

new text begin 10,546,000 new text end

new text begin These appropriations are added to the appropriations in Laws 2005, chapter 136, article 1, section 13. The amounts that may be spent from these appropriations for each program are specified in subdivisions 2 and 3. new text end

new text begin Subd. 2. new text end new text begin Correctional institutions new text end

new text begin 2,668,000 new text end

new text begin 8,788,000 new text end

new text begin The base for this item is $6,875,000 in fiscal year 2008 and fiscal year 2009. new text end

new text begin Subd. 3. new text end new text begin Community services new text end

new text begin (a) General operations new text end

new text begin 545,000 new text end

new text begin 1,758,000 new text end

new text begin The base for this item is $1,250,000 in fiscal year 2008 and fiscal year 2009. new text end

new text begin (b) Mentoring program new text end

new text begin -0- new text end

new text begin 250,000 new text end

new text begin For a grant to a nonprofit organization that is located in the greater Twin Cities and provides one-to-one mentoring relationships to youth enrolled between the ages of seven to 13 whose parent or other significant family member is incarcerated in a county workhouse, county jail, state prison, or other type of correctional facility or is subject to correctional supervision. The grant must be used to provide children with adult mentors to strengthen developmental outcomes, including enhanced self-confidence and esteem; improved academic performance; and improved relationships with peers, family, and other adults designed to prevent the mentored youth from entering the juvenile justice system. new text end

new text begin As a condition of receiving the grant, the grant recipient must: new text end

new text begin (1) collaborate with other organizations that have a demonstrated history of providing services to youth and families in disadvantaged situations; new text end

new text begin (2) implement procedures to ensure that the mentors pose no safety risk to the child and have the skills to participate in a mentoring relationship; new text end

new text begin (3) provide enhanced training to mentors focusing on asset building and family dynamics when a parent is incarcerated; and new text end

new text begin (4) provide individual family plan and aftercare. new text end

new text begin The grant recipient must submit an evaluation plan to the commissioner delineating the program and student outcome goals and activities implemented to achieve the stated outcomes. The goals must be clearly stated and measurable. The grant recipient must collect, analyze, and report on participation and outcome data that enable the department to verify that the program goals were met. This is a onetime appropriation. new text end

new text begin (c) Scott County new text end

new text begin -0- new text end

new text begin 196,000 new text end

new text begin To increase the Community Corrections Act subsidy for the addition of Scott County. The money must be distributed according to the community corrections aid formula contained in Minnesota Statutes, section 401.10. new text end

new text begin (d) Discharge planning new text end

new text begin -0- new text end

new text begin -0- new text end

new text begin Base funding for fiscal years 2008 and 2009 for discharge planning for inmates with mental illness is $200,000 each year. new text end

Sec. 6.

Laws 2005, chapter 136, article 1, section 10, is amended to read:

Sec. 10. PEACE OFFICER STANDARDS AND TRAINING BOARD (POST)

4,154,000

deleted text begin 4,014,000 deleted text end new text begin 4,214,000 new text end

EXCESS AMOUNTS TRANSFERRED. This appropriation is from the peace officer training account in the special revenue fund. Any new receipts credited to that account in the first year in excess of $4,154,000 must be transferred and credited to the general fund. Any new receipts credited to that account in the second year in excess of deleted text begin $4,014,000 deleted text end new text begin $4,214,000 new text end must be transferred and credited to the general fund.

TECHNOLOGY IMPROVEMENTS. $140,000 the first year is for technology improvements.

PEACE OFFICER TRAINING REIMBURSEMENT. $2,909,000 deleted text begin each deleted text end new text begin the first new text end year new text begin and $3,109,000 the second year new text end is for reimbursements to local governments for peace officer training costs.

Sec. 7.

Minnesota Statutes 2005 Supplement, section 299A.641, subdivision 3, is amended to read:

Subd. 3.

Oversight council's duties.

The oversight council shall develop an overall strategy to ameliorate the harm caused to the public by gang and drug crime within the state of Minnesota. This strategy may include the development of protocols and procedures to investigate gang and drug crime and a structure for best addressing these issues in a multijurisdictional manner. Additionally, the oversight council shall:

(1) identify and recommend a candidate or candidates for statewide coordinator to the commissioner of public safety;

(2) establish multijurisdictional task forces and strike forces to combat gang and drug crime, to include a metro gang strike force new text begin and a gang strike force located in the St. Cloud metropolitan area new text end ;

(3) assist the Department of Public Safety in developing an objective grant review application process that is free from conflicts of interest;

(4) make funding recommendations to the commissioner of public safety on grants to support efforts to combat gang and drug crime;

(5) assist in developing a process to collect and share information to improve the investigation and prosecution of drug offenses;

(6) develop and approve an operational budget for the office of the statewide coordinator and the oversight council; and

(7) adopt criteria and identifying characteristics for use in determining whether individuals are or may be members of gangs involved in criminal activity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 8.

Minnesota Statutes 2005 Supplement, section 299A.78, is amended to read:

299A.78 STATEWIDE HUMAN TRAFFICKING ASSESSMENT.

Subdivision 1.

Definitions.

For purposes of sections 299A.78 to , the following definitions apply:

(a) "Commissioner" means the commissioner of the Department of Public Safety.

(b) "Nongovernmental organizations" means nonprofit, nongovernmental organizations that provide legal, social, or other community services.

(c) "Blackmail" has the meaning given in section 609.281, subdivision 2.

(d) "Debt bondage" has the meaning given in section 609.281, subdivision 3.

(e) "Forced labor or services" has the meaning given in section 609.281, subdivision 4.

(f) "Labor trafficking" has the meaning given in section 609.281, subdivision 5.

(g) "Labor trafficking victim" has the meaning given in section 609.281, subdivision 6.

(h) "Sex trafficking" has the meaning given in section 609.321, subdivision 7a.

(i) "Sex trafficking victim" has the meaning given in section 609.321, subdivision 7b.

(j) "Trafficking" includes "labor trafficking" and "sex trafficking."

(k) "Trafficking victim" includes "labor trafficking victim" and "sex trafficking victim."

Subd. 2.

General duties.

The commissioner of public safety, in cooperation with local authorities, shall new text begin : new text end

new text begin (1) new text end collect, share, and compile trafficking data among government agencies to assess the nature and extent of trafficking in Minnesota deleted text begin . deleted text end new text begin ; and new text end

new text begin (2) analyze the collected data to develop a plan to address and prevent human trafficking. new text end

Subd. 3.

Outside services.

As provided for in section 15.061, the commissioner of public safety may contract with professional or technical services in connection with the duties to be performed under deleted text begin section deleted text end new text begin sections new text end 299A.785 new text begin , 299A.79, and 299A.795 new text end . The commissioner may also contract with other outside organizations to assist with the duties to be performed under deleted text begin section deleted text end new text begin sections new text end 299A.785 new text begin , 299A.79, and 299A.795 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 9.

new text begin [299A.79] TRAFFICKING STUDY; ANALYSIS AND USE OF DATA. new text end

new text begin Subdivision 1. new text end

new text begin Data analysis. new text end

new text begin The commissioner shall analyze the data collected in section 299A.785 to develop a plan to address current trafficking and prevent future trafficking in this state. The commissioner may evaluate various approaches used by other state and local governments to address trafficking. The plan must include, but not be limited to: new text end

new text begin (1) ways to train agencies, organizations, and officials involved in law enforcement, prosecution, and social services; new text end

new text begin (2) ways to increase public awareness of trafficking; and new text end

new text begin (3) procedures to enable the state government to work with nongovernmental organizations to prevent trafficking. new text end

new text begin Subd. 2. new text end

new text begin Training plan. new text end

new text begin The training plan required in subdivision 1 must include: new text end

new text begin (1) methods used in identifying trafficking victims, including preliminary interview techniques and appropriate interrogation methods; new text end

new text begin (2) methods for prosecuting traffickers; new text end

new text begin (3) methods for protecting the rights of trafficking victims, taking into account the need to consider human rights and special needs of women and children trafficking victims; and new text end

new text begin (4) methods for promoting the safety of trafficking victims. new text end

new text begin Subd. 3. new text end

new text begin Public awareness initiative. new text end

new text begin The public awareness initiative required in subdivision 1 must address, at a minimum, the following subjects: new text end

new text begin (1) the risks of becoming a trafficking victim; new text end

new text begin (2) common recruitment techniques; use of debt bondage, blackmail, forced labor and services, prostitution, and other coercive tactics; and risks of assault, criminal sexual conduct, exposure to sexually transmitted diseases, and psychological harm; new text end

new text begin (3) crime victims' rights; and new text end

new text begin (4) reporting recruitment activities involved in trafficking. new text end

new text begin Subd. 4. new text end

new text begin Report to legislature. new text end

new text begin The commissioner shall report the plan to the chairs and ranking minority members of the senate and house committees and divisions having jurisdiction over criminal justice policy and funding by December 15, 2006. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 10.

new text begin [299A.795] TRAFFICKING VICTIM ASSISTANCE. new text end

new text begin The commissioner may review the existing services and facilities to meet trafficking victims' needs and recommend a plan that would coordinate the services including, but not limited to: new text end

new text begin (1) medical and mental health services; new text end

new text begin (2) housing; new text end

new text begin (3) education and job training; new text end

new text begin (4) English as a second language; new text end

new text begin (5) interpreting services; new text end

new text begin (6) legal and immigration services; and new text end

new text begin (7) victim compensation. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 11.

new text begin [299A.7955] HUMAN TRAFFICKING TASK FORCE. new text end

new text begin Subdivision 1. new text end

new text begin Creation and duties. new text end

new text begin By September 1, 2006, the commissioner shall appoint a 22-member task force on human trafficking to advise the commissioner on the commissioner's duties in sections 299A.78 to 299A.795. The task force shall also serve as a liaison between the commissioner and agencies and nongovernmental organizations that provide services to trafficking victims. The members must receive expense reimbursement as specified in section 15.059. new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin To the extent possible, the human trafficking task force consists of the following individuals, or their designees, who are knowledgeable in trafficking, crime victims' rights, or violence protection: new text end

new text begin (1) a representative of the Minnesota Chiefs of Police Association; new text end

new text begin (2) a representative of the Bureau of Criminal Apprehension; new text end

new text begin (3) a representative of the Minnesota Sheriffs' Association; new text end

new text begin (4) a peace officer who works and resides in the metropolitan area, composed of Hennepin, Ramsey, Anoka, Dakota, Scott, Washington, and Carver Counties; new text end

new text begin (5) a peace officer who works and resides in the nonmetropolitan area; new text end

new text begin (6) a county attorney who works in Hennepin County; new text end

new text begin (7) a county attorney who works in Ramsey County; new text end

new text begin (8) a representative of the attorney general's office; new text end

new text begin (9) a representative of the Department of Public Safety's office of justice program; new text end

new text begin (10) a representative of the federal Homeland Security Department; new text end

new text begin (11) a representative of the Department of Health; new text end

new text begin (12) the chair or executive director of the Council on Asian-Pacific Minnesotans; new text end

new text begin (13) the chair or executive director of the Minnesota Chicano-Latino Affairs Council; new text end

new text begin (14) a representative of the United States Attorney's Office; and new text end

new text begin (15) eight representatives from nongovernmental organizations, which may include representatives of: new text end

new text begin (i) the Minnesota Coalition for Battered Women; new text end

new text begin (ii) the Minnesota Coalition Against Sexual Assault; new text end

new text begin (iii) a statewide or local organization that provides civil legal services to women and children; new text end

new text begin (iv) a statewide or local organization that provides mental health services to women and children; new text end

new text begin (v) a statewide or local human rights and social justice advocacy organization; new text end

new text begin (vi) a statewide or local organization that provides services to victims of torture, trauma, or human trafficking; new text end

new text begin (vii) a statewide or local organization that serves the needs of immigrants and refugee women and children from diverse ethnic communities; and new text end

new text begin (viii) a statewide or local organization that provides legal services to low-income immigrants. new text end

new text begin Subd. 3. new text end

new text begin Officers; meetings. new text end

new text begin (a) The task force shall annually elect a chair and vice-chair from among its members, and may elect other officers as necessary. The task force shall meet at least quarterly, or upon the call of its chair. The task force shall meet sufficiently enough to accomplish the tasks identified in this section. new text end

new text begin (b) The task force shall seek out and enlist the cooperation and assistance of nongovernmental organizations and academic researchers, especially those specializing in trafficking, representing diverse communities disproportionately affected by trafficking, or focusing on child services and runaway services. new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin Notwithstanding section 15.059, the task force expires June 30, 2011, or once it has implemented and evaluated the programs and policies in sections 299A.78 to 299A.795 to the satisfaction of the commissioner, whichever occurs first. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 12.

new text begin [299A.7957] TOLL-FREE HOTLINE FOR TRAFFICKING VICTIMS. new text end

new text begin (a) As used in this section, "trafficking victim" has the meaning given in section 299A.78, subdivision 1. new text end

new text begin (b) The commissioner of public safety shall contract with a nonprofit organization that provides legal services to domestic and international trafficking victims to maintain a toll-free telephone hotline for trafficking victims. new text end

new text begin The hotline must be in place by January 1, 2007, and must be operated 24 hours a day, 365 days a year. The hotline must offer language interpreters for languages commonly spoken in Minnesota, including, but not limited to, Spanish, Vietnamese, Hmong, and Somali. At a minimum, the hotline must screen trafficking victims, both domestic and international, and provide appropriate referrals to attorneys and victims' services organizations. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

ARTICLE 14

STATE GOVERNMENT

Section 1.

new text begin STATE GOVERNMENT APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "APPROPRIATIONS" are added to the appropriations in Laws 2005, chapter 156, article 1, or other law to the agencies and for the purposes specified in this article. The appropriations are from the general fund or another named fund and are available for the fiscal year indicated for each purpose. The figure "2007" used in this article means that the addition to the appropriation listed under it is available for the fiscal year ending June 30, 2007. new text end

new text begin SUMMARY BY FUND new text end
				new text begin 2007 new text end
new text begin General new text end			new text begin $ new text end	new text begin 2,422,000 new text end
new text begin Workers' Compensation new text end			new text begin $ new text end	new text begin 320,000 new text end
new text begin TOTAL new text end			new text begin $ new text end	new text begin 2,742,000 new text end

			new text begin APPROPRIATION new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30, 2007 new text end

Sec. 2. new text begin LEGISLATURE new text end

new text begin new text end

new text begin new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin new text end

new text begin $ new text end

new text begin 37,000 new text end

new text begin The appropriations in this section are to the Legislative Coordinating Commission for the purposes in subdivisions 2 and 3. new text end

new text begin Subd. 2. new text end new text begin Legislative forums new text end

new text begin 30,000 new text end

new text begin For the cost of annual forums to improve legislative effectiveness. This is a onetime appropriation. new text end

new text begin Subd. 3. new text end new text begin International Legislators' Forum new text end

new text begin 7,000 new text end

new text begin For the International Legislators' Forum, to allow Minnesota legislators to meet with counterparts from South Dakota, North Dakota, and Manitoba, Canada, to discuss issues of mutual concern. This is a onetime appropriation. new text end * (The preceding section was indicated as vetoed by the governor.)

Sec. 3. new text begin FINANCE new text end

new text begin 325,000 new text end

new text begin Northwest Airlines bankruptcy counsel new text end

new text begin For the state's share of the cost of bankruptcy counsel representing joint interests of the state and the city of Duluth in the Northwest Airlines bankruptcy. This is a onetime appropriation. new text end

Sec. 4. new text begin OFFICE OF ENTERPRISE TECHNOLOGY new text end

new text begin 1,900,000 new text end

new text begin For comprehensive planning, implementation, and administration of enterprise information technology security according to Minnesota Statutes, sections 16E.01 and 16E.03. $1,900,000 is added to the appropriation base for fiscal years 2008 and thereafter to provide for continuing administration of enterprise security. new text end

Sec. 5. new text begin OFFICE OF ADMINISTRATIVE HEARINGS new text end

new text begin 320,000 new text end

new text begin From the workers' compensation fund for costs associated with the relocation of offices to St. Paul. The commissioner of administration shall take all steps as necessary to complete the renovation of the Stassen Building for these purposes by January 1, 2008. Minnesota Statutes, section 16B.33, subdivision 3, does not apply if the estimated cost of construction exceeds $2,000,000. This is a onetime appropriation. new text end

new text begin new text end

new text begin Beginning in fiscal year 2009 and for all fiscal years thereafter, the appropriation base for the workers' compensation fund for the Office of Administrative Hearings is reduced by $297,000 to reflect savings in rent costs due to the relocation of offices to St. Paul. new text end

Sec. 6. new text begin EMPLOYEE RELATIONS new text end

new text begin Center for Health Care Purchasing Improvement new text end

new text begin 100,000 new text end

new text begin To establish and operate the Center for Health Care Purchasing Improvement. new text end

Sec. 7. new text begin AMATEUR SPORTS COMMISSION new text end

new text begin 60,000 new text end

new text begin This is a onetime appropriation. new text end

Sec. 8.

new text begin [4.51] EXPENSES OF GOVERNOR-ELECT. new text end

new text begin This section applies after a state general election in which a person who is not the current governor is elected to take office as the next governor. The commissioner of administration must request a transfer from the general fund contingent account of an amount equal to 1.5 percent of the amount appropriated for operation of the Office of the Governor and Lieutenant Governor for the current fiscal year. This request is subject to the review and advice of the Legislative Advisory Commission pursuant to section 3.30. If the transfer is approved, the commissioner of administration must make this amount available to the governor-elect before he or she takes office. The commissioner must provide office space for the governor-elect and for any employees the governor-elect hires. new text end

Sec. 9.

new text begin [16E.21] INFORMATION AND TELECOMMUNICATIONS ACCOUNT. new text end

new text begin Subdivision 1. new text end

new text begin Account established; appropriation. new text end

new text begin The information and telecommunications technology systems and services account is created in the special revenue fund. Receipts credited to the account are appropriated to the Office of Enterprise Technology for the purpose of defraying the costs of personnel and technology for activities that create government efficiencies in accordance with this chapter. new text end

new text begin Subd. 2. new text end

new text begin Charges. new text end

new text begin Upon agreement of the participating agency, the Office of Enterprise Technology may collect a charge for purchases of information and telecommunications technology systems and services by state agencies and other governmental entities through state contracts for purposes described in subdivision 1. Charges collected under this section must be credited to the information and telecommunications technology systems and services account. new text end

Sec. 10.

new text begin [43A.312] CENTER FOR HEALTH CARE PURCHASING IMPROVEMENT. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; administration. new text end

new text begin The commissioner shall establish and administer the Center for Health Care Purchasing Improvement as an administrative unit within the Department of Employee Relations. The Center for Health Care Purchasing Improvement shall support the state in its efforts to be a more prudent and efficient purchaser of quality health care services. The center shall aid the state in developing and using more common strategies and approaches for health care performance measurement and health care purchasing. The common strategies and approaches shall promote greater transparency of health care costs and quality, and greater accountability for health care results and improvement. The center shall also identify barriers to more efficient, effective, quality health care and options for overcoming the barriers. new text end

new text begin Subd. 2. new text end

new text begin Staffing; duties; scope. new text end

new text begin (a) The commissioner may appoint a director, and up to three additional senior-level staff or codirectors, and other staff as needed who are under the direction of the commissioner. The staff of the center are in the unclassified service. new text end

new text begin (b) With the authorization of the commissioner of employee relations, and in consultation or interagency agreement with the appropriate commissioners of state agencies, the director, or codirectors, may: new text end

new text begin (1) initiate projects to develop plan designs for state health care purchasing; new text end

new text begin (2) require reports or surveys to evaluate the performance of current health care purchasing strategies; new text end

new text begin (3) calculate fiscal impacts, including net savings and return on investment, of health care purchasing strategies and initiatives; new text end

new text begin (4) conduct policy audits of state programs to measure conformity to state statute or other purchasing initiatives or objectives; new text end

new text begin (5) support the Administrative Uniformity Committee under section 62J.50 and other relevant groups or activities to advance agreement on health care administrative process streamlining; new text end

new text begin (6) consult with the Health Economics Unit of the Department of Health regarding reports and assessments of the health care marketplace; new text end

new text begin (7) consult with the departments of Health and Commerce regarding health care regulatory issues and legislative initiatives; new text end

new text begin (8) work with appropriate Department of Human Services staff and the Centers for Medicare and Medicaid Services to address federal requirements and conformity issues for health care purchasing; new text end

new text begin (9) assist the Minnesota Comprehensive Health Association in health care purchasing strategies; new text end

new text begin (10) convene medical directors of agencies engaged in health care purchasing for advice, collaboration, and exploring possible synergies; new text end

new text begin (11) contact and participate with other relevant health care task forces, study activities, and similar efforts with regard to health care performance measurement and performance-based purchasing; and new text end

new text begin (12) assist in seeking external funding through appropriate grants or other funding opportunities and may administer grants and externally funded projects. new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The commissioner must report annually to the legislature and the governor on the operations, activities, and impacts of the center. The report must be posted on the Department of Employee Relations Web site and must be available to the public. The report must include a description of the state's efforts to develop and use more common strategies for health care performance measurement and health care purchasing. The report must also include an assessment of the impacts of these efforts, especially in promoting greater transparency of health care costs and quality, and greater accountability for health care results and improvement. new text end

Sec. 11.

Laws 1998, chapter 404, section 15, subdivision 2, as amended by Laws 2005, chapter 20, article 1, section 40, as amended by Laws 2005, chapter 156, article 2, section 43, is amended to read:

Subd. 2. National Sports Center

4,800,000

$1,700,000 is to purchase and develop land adjacent to the National Sports Center in Blaine for use as athletic fields.

$3,100,000 is to develop the National Children's Golf Course. The primary purpose of the National Children's Golf Course is to serve youth of 18 years and younger. Market rates must be charged for adult golf.

new text begin Notwithstanding Minnesota Statutes, section 16B.24, subdivision 5, new text end the Minnesota Amateur Sports Commission may lease up to 20 percent of the area of the land purchased with money from the general fund appropriations in this subdivision for a term of up to 30 years new text begin , plus two renewals for a term of up to 30 years each, new text end to one or more governmental or private entities for any use by the lessee, whether public or private, so long as the use provides some benefit to amateur sports. The commission must submit proposed leases for the land described in this subdivision to the chairs of the legislative committees with jurisdiction over state government policy and finance for review at least 30 days before the leases may be entered into by the commission. Up to $300,000 of lease payments received by the commission each fiscal year is appropriated to the commission for the purposes specified in Minnesota Statutes, chapter 240A. The land purchased from the general fund appropriations may be used for any amateur sport.

Sec. 12.

new text begin LABOR AGREEMENTS AND COMPENSATION PLANS. new text end

new text begin Subdivision 1. new text end

new text begin American Federation of State, County and Municipal Employees. new text end

new text begin The labor agreement between the state of Minnesota and the American Federation of State, County and Municipal Employees, Council 5, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on September 14, 2005, is ratified. new text end

new text begin Subd. 2. new text end

new text begin Minnesota Association of Professional Employees. new text end

new text begin The labor agreement between the state of Minnesota and the Minnesota Association of Professional Employees, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on September 14, 2005, is ratified. new text end

new text begin Subd. 3. new text end

new text begin Middle Management Association. new text end

new text begin The labor agreement between the state of Minnesota and the Middle Management Association, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, is ratified. new text end

new text begin Subd. 4. new text end

new text begin Minnesota state college faculty. new text end

new text begin The labor agreement between the state of Minnesota and the Minnesota state college faculty, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, is ratified. new text end

new text begin Subd. 5. new text end

new text begin American Federation of State, County and Municipal Employees. new text end

new text begin The labor agreement between the state of Minnesota and the American Federation of State, County and Municipal Employees, Council 5, Unit 8, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, is ratified. new text end

new text begin Subd. 6. new text end

new text begin Managerial plan. new text end

new text begin The managerial plan, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, is ratified. new text end

new text begin Subd. 7. new text end

new text begin Commissioner's plan. new text end

new text begin The commissioner of employee relations' plan for unrepresented employees, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, is ratified. new text end

new text begin Subd. 8. new text end

new text begin Minnesota Government Engineers Council. new text end

new text begin The labor agreement between the state of Minnesota and the Minnesota Government Engineers Council, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. new text end

new text begin Subd. 9. new text end

new text begin State Residential Schools Education Association. new text end

new text begin The labor agreement between the state of Minnesota and the State Residential Schools Education Association, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. new text end

new text begin Subd. 10. new text end

new text begin Interfaculty Organization. new text end

new text begin The labor agreement between the state of Minnesota and the Interfaculty Organization, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. new text end

new text begin Subd. 11. new text end

new text begin Minnesota State University Association of Administrative and Service Faculty. new text end

new text begin The labor agreement between the state of Minnesota and the Minnesota State University Association of Administrative and Service Faculty, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. new text end

new text begin Subd. 12. new text end

new text begin Office of Higher Education. new text end

new text begin The compensation plan for unrepresented employees of the Office of Higher Education, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. new text end

new text begin Subd. 13. new text end

new text begin MnSCU Administrators. new text end

new text begin The personnel plan for Minnesota State Colleges and Universities administrators, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. new text end

new text begin Subd. 14. new text end

new text begin State Board of Investment. new text end

new text begin The salary administration plan for the Minnesota State Board of Investment, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on March 1, 2006, is ratified. new text end

new text begin Subd. 15. new text end

new text begin Managerial plan amendment. new text end

new text begin The amendment to the managerial plan, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on March 1, 2006, is ratified. new text end

new text begin Subd. 16. new text end

new text begin Commissioner's plan amendment. new text end

new text begin The amendment to the commissioner's plan, approved by the Legislative Coordinating Commission Subcommittee on Employee Relations on March 1, 2006, is ratified. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 13.

new text begin TRANSFER. new text end

new text begin On June 30, 2006, the commissioner of finance shall transfer the balances in the tobacco use prevention and local public health endowment fund and the medical education endowment fund to the general fund. These balances result from investment income credited to the funds after the transfer of balances on July 1, 2003. The amount transferred under this section is estimated to be $2,933,000. new text end

Sec. 14.

new text begin REVISOR'S INSTRUCTION. new text end

new text begin The revisor of statutes shall correct internal cross-references to sections that are affected by section 15. The revisor may make changes necessary to correct the punctuation, grammar, or structure of the remaining text and preserve its meaning. new text end

Sec. 15.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2004, sections 62J.694; and 144.395, new text end new text begin are repealed. new text end

ARTICLE 15

VETERANS AFFAIRS

Section 1. new text begin VETERANS AFFAIRS APPROPRIATIONS. new text end

new text begin The sums shown are appropriated from the general fund, or another named fund, to be available for the fiscal years indicated for each purpose. The figures "2006" and "2007" used in this article mean that the appropriation or appropriations listed under them are available for the fiscal year ending June 30, 2006, or June 30, 2007, respectively. Appropriations in this article for the fiscal year ending June 30, 2006, are effective the day following final enactment. new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2006 new text end		new text begin 2007 new text end

Sec. 2. new text begin VETERANS AFFAIRS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin $ new text end

new text begin 3,230,000 new text end

new text begin The appropriations in this section are for the purposes in subdivisions 2 to 7. new text end

new text begin Subd. 2. new text end new text begin State soldiers' assistance fund new text end

new text begin -0- new text end

new text begin 2,000,000 new text end

new text begin To be deposited in the state soldiers' assistance fund established in Minnesota Statutes, section 197.03. The appropriations in this subdivision are in addition to other appropriations made to the commissioner of veterans affairs. new text end

new text begin Subd. 3. new text end new text begin Web site development new text end

new text begin -0- new text end

new text begin 100,000 new text end

new text begin To create a centralized Web site to contain information on all state, federal, local, and private agencies and organizations that provide goods or services to veterans or their families. new text end

new text begin Subd. 4. new text end new text begin Grants to counties new text end

new text begin -0- new text end

new text begin 200,000 new text end

new text begin For grants to counties under the terms of this subdivision. The commissioner shall issue a request for proposals for grants to enhance the benefits, programs, and services provided to veterans. The request must specify that priority will be given to proposals that meet the programmatic goals established by the commissioner, including proposals that: new text end

new text begin (1) will provide the most effective outreach to veterans; new text end

new text begin (2) reintegrate combat veterans into society; new text end

new text begin (3) collaborate with other social service agencies, educational institutions, and other relevant community resources; new text end

new text begin (4) reduce homelessness among veterans; and new text end

new text begin (5) provide measurable outcomes. new text end

new text begin The commissioner may provide incentives to encourage regional collaboration for service delivery. new text end

new text begin The grants may be for a term of up to two years. The commissioner shall ensure that grants are made throughout all regions of the state and shall develop a description of best practices for the use of these grants. A county may not reduce its veterans service office budget by any amount received as a grant under this subdivision. Grants made under this subdivision are in addition to and not subject to the requirements for grants made under Minnesota Statutes, section 197.608. The Vinland Center and the Minnesota Assistance Council for Veterans may apply for grants under this subdivision in fiscal year 2007. This appropriation must be included in the appropriation base through fiscal year 2009. new text end

new text begin Subd. 5. new text end new text begin Higher education veterans assistance offices new text end

new text begin -0- new text end

new text begin 600,000 new text end

new text begin For the higher education veterans assistance program in section 3. This appropriation must be included in the appropriation base through fiscal year 2011. new text end

new text begin Subd. 6. new text end new text begin Outreach and assistance new text end

new text begin 250,000 new text end

new text begin 250,000 new text end

new text begin For an outreach and assistance initiative for underserved veterans. new text end

new text begin Subd. 7. new text end new text begin Veterans organizations new text end

new text begin -0- new text end

new text begin 80,000 new text end

new text begin For veterans' services provided by Veterans of Foreign Wars, the Military Order of the Purple Heart, Disabled American Veterans, and the Vietnam Veterans of America. This is a onetime appropriation. new text end

Sec. 3.

new text begin [197.585] HIGHER EDUCATION VETERANS ASSISTANCE PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Assistance provided. new text end

new text begin The commissioner of veterans affairs shall provide central liaison staff and campus veterans assistance officers to serve the needs of students who are veterans at higher education institutions in Minnesota. Methods of assistance may include, but are not limited to, work-study positions for veterans, and providing information and assistance regarding the availability of state, federal, local, and private resources. new text end

new text begin Subd. 2. new text end

new text begin Steering committee. new text end

new text begin The commissioner of veterans affairs shall chair a higher education veterans assistance program steering committee composed of: new text end

new text begin (1) the adjutant general or the adjutant general's designee; new text end

new text begin (2) a representative of Minnesota State Colleges and Universities, designated by the chancellor; new text end

new text begin (3) a representative of the University of Minnesota, appointed by the president of the university; new text end

new text begin (4) a representative of private colleges and universities in Minnesota, appointed by the governor; new text end

new text begin (5) a representative of the Office of Higher Education, appointed by the executive director; new text end

new text begin (6) a representative of county veterans service offices, appointed by the commissioner of veterans affairs; and new text end

new text begin (7) a representative of the Department of Employment and Economic Development, appointed by the commissioner of that department. new text end

new text begin The steering committee shall advise the commissioner of veterans affairs regarding the allocation of appropriations for the purposes of this section and shall develop a long-range plan to serve the needs of students at higher education institutions in Minnesota who are veterans. new text end

new text begin Subd. 3. new text end

new text begin Office space provided. new text end

new text begin Each campus of the University of Minnesota and each institution within the Minnesota State Colleges and Universities system shall provide adequate space for a veterans assistance office to be administered by the commissioner of veterans affairs, and each private college and university in Minnesota is encouraged to provide adequate space for a veterans assistance office to be administered by the commissioner of veterans affairs. The veterans assistance office must provide information and assistance to veterans who are students or family members of students at the school regarding the availability of state, federal, local, and private resources. new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin Beginning January 15, 2007, and each year thereafter, the steering committee established in subdivision 2 shall report to the chairs of the legislative committees with jurisdiction over veterans affairs policy and finance and higher education policy and finance regarding the implementation and effectiveness of the program established in this section. new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires at the end of the first fiscal year in which the number of veterans enrolled in Minnesota public institutions of higher education is fewer than 4,000, but no later than June 30, 2011. new text end

ARTICLE 16

HEALTH AND HUMAN SERVICES MISCELLANEOUS PROVISIONS

Section 1.

Minnesota Statutes 2004, section 43A.17, subdivision 4, is amended to read:

Subd. 4.

Exceptions.

(a) The commissioner may without regard to subdivision 1 establish special salary rates and plans of compensation designed to attract and retain exceptionally qualified doctors of medicine new text begin and doctors of dental surgery new text end . These rates and plans shall be included in the commissioner's plan. In establishing salary rates and eligibility for nomination for payment at special rates, the commissioner shall consider the standards of eligibility established by national medical specialty boards where appropriate. The incumbents assigned to these special ranges shall be excluded from the collective bargaining process.

(b) The commissioner may without regard to subdivision 1, but subject to collective bargaining agreements or compensation plans, establish special salary rates designed to attract and retain exceptionally qualified employees in the following positions:

(1) information systems staff;

(2) actuaries in the Departments of Health, Human Services, and Commerce; and

(3) epidemiologists in the Department of Health.

Sec. 2.

Minnesota Statutes 2005 Supplement, section 144.1476, subdivision 4, is amended to read:

Subd. 4.

Allocation of grants.

(a) The commissioner shall establish a deadline for receiving applications and must make a final decision on the funding of each application within 60 days of the deadline. An applicant must apply no later than March 1 of each fiscal year for grants awarded for that fiscal year.

(b) Any grant awarded must not exceed $50,000 a year deleted text begin and may not exceed a one-year term deleted text end . new text begin Notwithstanding any law to the contrary, funds awarded to grantees in a grant agreement do not lapse until expended by the grantee. new text end

(c) Applicants may apply to the program each year they are eligible.

(d) Project grants may not be used to retire debt incurred with respect to any capital expenditure made prior to the date on which the project is initiated.

Sec. 3.

new text begin [144.3345] INTERCONNECTED ELECTRONIC HEALTH RECORD GRANTS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following definitions are used for the purposes of this section. new text end

new text begin (a) "Eligible community e-health collaborative" means an existing or newly established collaborative to support the adoption and use of interoperable electronic health records. A collaborative must consist of at least three or more eligible health care entities in at least two of the categories listed in paragraph (b) and have a focus on interconnecting the members of the collaborative for secure and interoperable exchange of health care information. new text end

new text begin (b) "Eligible health care entity" means one of the following: new text end

new text begin (1) community clinics, as defined under section 145.9268; new text end

new text begin (2) hospitals eligible for rural hospital capital improvement grants, as defined in section 144.148; new text end

new text begin (3) physician clinics located in a community with a population of less than 50,000 according to United States Census Bureau statistics and outside the seven-county metropolitan area; new text end

new text begin (4) nursing facilities licensed under sections 144A.01 to 144A.27; new text end

new text begin (5) community health boards as established under chapter 145A; new text end

new text begin (6) nonprofit entities with a purpose to provide health information exchange coordination governed by a representative, multi-stakeholder board of directors; and new text end

new text begin (7) other providers of health or health care services approved by the commissioner for which interoperable electronic health record capability would improve quality of care, patient safety, or community health. new text end

new text begin Subd. 2. new text end

new text begin Grants authorized. new text end

new text begin The commissioner of health shall award grants to eligible community e-health collaborative projects to improve the implementation and use of interoperable electronic health records including but not limited to the following projects: new text end

new text begin (1) collaborative efforts to host and support fully functional interoperable electronic health records in multiple care settings; new text end

new text begin (2) electronic medication history and electronic patient registration information; new text end

new text begin (3) electronic personal health records for persons with chronic diseases and for prevention services; new text end

new text begin (4) rural and underserved community models for electronic prescribing; and new text end

new text begin (5) enabling local public health systems to rapidly and electronically exchange information needed to participate in community e-health collaboratives or for public health emergency preparedness and response. new text end

new text begin Grant funds may not be used for construction of health care or other buildings or facilities. new text end

new text begin Subd. 3. new text end

new text begin Allocation of grants. new text end

new text begin (a) To receive a grant under this section, an eligible community e-health collaborative must submit an application to the commissioner of health by the deadline established by the commissioner. A grant may be awarded upon the signing of a grant contract. In awarding grants, the commissioner shall give preference to projects benefiting providers located in rural and underserved areas of Minnesota which the commissioner has determined have an unmet need for the development and funding of electronic health records. Applicants may apply for and the commissioner may award grants for one-year, two-year, or three-year periods. new text end

new text begin (b) An application must be on a form and contain information as specified by the commissioner but at a minimum must contain: new text end

new text begin (1) a description of the purpose or project for which grant funds will be used; new text end

new text begin (2) a description of the problem or problems the grant funds will be used to address, including an assessment likelihood of the project occurring absent grant funding; new text end

new text begin (3) a description of achievable objectives, a workplan, budget, budget narrative, a project communications plan, a timeline for implementation and completion of processes or projects enabled by the grant, and an assessment of privacy and security issues and a proposed approach to address these issues; new text end

new text begin (4) a description of the health care entities and other groups participating in the project, including identification of the lead entity responsible for applying for and receiving grant funds; new text end

new text begin (5) a plan for how patients and consumers will be involved in development of policies and procedures related to the access to and interchange of information; new text end

new text begin (6) evidence of consensus and commitment among the health care entities and others who developed the proposal and are responsible for its implementation; and new text end

new text begin (7) a plan for documenting and evaluating results of the grant. new text end

new text begin (c) The commissioner shall review each application to determine whether the application is complete and whether the applicant and the project are eligible for a grant. In evaluating applications, the commissioner shall take into consideration factors, including but not limited to, the following: new text end

new text begin (1) the degree to which the proposal interconnects the various providers of care in the applicant's geographic community; new text end

new text begin (2) the degree to which the project provides for the interoperability of electronic health records or related health information technology between the members of the collaborative, and presence and scope of a description of how the project intends to interconnect with other providers not part of the project into the future; new text end

new text begin (3) the degree to which the project addresses current unmet needs pertaining to interoperable electronic health records in a geographic area of Minnesota and the likelihood that the needs would not be met absent grant funds; new text end

new text begin (4) the applicant's thoroughness and clarity in describing the project, how the project will improve patient safety, quality of care, and consumer empowerment, and the role of the various collaborative members; new text end

new text begin (5) the recommendations of the Health Information and Technology Infrastructure Advisory Committee; and new text end

new text begin (6) other factors that the commissioner deems relevant. new text end

new text begin (d) Grant funds shall be awarded on a three-to-one match basis. Applicants shall be required to provide one dollar in the form of cash or in-kind staff or services for each three dollars provided under the grant program. new text end

new text begin (e) Grants shall not exceed $900,000 per grant. The commissioner has discretion over the size and number of grants awarded. new text end

new text begin Subd. 4. new text end

new text begin Evaluation and report. new text end

new text begin The commissioner of health shall evaluate the overall effectiveness of the grant program. The commissioner shall collect progress and expenditure reports to evaluate the grant program from the eligible community collaboratives receiving grants. new text end

Sec. 4.

new text begin [245.4835] COUNTY MAINTENANCE OF EFFORT. new text end

new text begin Subdivision 1. new text end

new text begin Required expenditures. new text end

new text begin Counties must maintain a level of expenditures for mental health services under sections 245.461 to 245.484 and 245.487 to 245.4887 so that each year's county expenditures are at least equal to that county's average expenditures for those services for calendar years 2004 and 2005. The commissioner will adjust each county's base level for minimum expenditures in each year by the amount of any increase or decrease in that county's state grants or other noncounty revenues for mental health services under sections 245.461 to 245.484 and 245.487 to 245.4887. new text end

new text begin Subd. 2. new text end

new text begin Failure to maintain expenditures. new text end

new text begin If a county does not comply with subdivision 1, the commissioner shall require the county to develop a corrective action plan according to a format and timeline established by the commissioner. If the commissioner determines that a county has not developed an acceptable corrective action plan within the required timeline, or that the county is not in compliance with an approved corrective action plan, the protections provided to that county under section 245.485 do not apply. new text end

Sec. 5.

Minnesota Statutes 2004, section 256.01, is amended by adding a subdivision to read:

new text begin Subd. 2b. new text end

new text begin Performance payments. new text end

new text begin The commissioner shall develop and implement a pay-for-performance system to provide performance payments to medical groups that demonstrate optimum care in serving individuals with chronic diseases who are enrolled in health care programs administered by the commissioner under chapters 256B, 256D, and 256L. new text end

Sec. 6.

Minnesota Statutes 2004, section 256B.0625, subdivision 20, is amended to read:

Subd. 20.

Mental health case management.

(a) To the extent authorized by rule of the state agency, medical assistance covers case management services to persons with serious and persistent mental illness and children with severe emotional disturbance. Services provided under this section must meet the relevant standards in sections 245.461 to 245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10.

(b) Entities meeting program standards set out in rules governing family community support services as defined in section 245.4871, subdivision 17, are eligible for medical assistance reimbursement for case management services for children with severe emotional disturbance when these services meet the program standards in Minnesota Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10.

(c) Medical assistance and MinnesotaCare payment for mental health case management shall be made on a monthly basis. In order to receive payment for an eligible child, the provider must document at least a face-to-face contact with the child, the child's parents, or the child's legal representative. To receive payment for an eligible adult, the provider must document:

(1) at least a face-to-face contact with the adult or the adult's legal representative; or

(2) at least a telephone contact with the adult or the adult's legal representative and document a face-to-face contact with the adult or the adult's legal representative within the preceding two months.

(d) Payment for mental health case management provided by county or state staff shall be based on the monthly rate methodology under section 256B.094, subdivision 6, paragraph (b), with separate rates calculated for child welfare and mental health, and within mental health, separate rates for children and adults.

(e) Payment for mental health case management provided by Indian health services or by agencies operated by Indian tribes may be made according to this section or other relevant federally approved rate setting methodology.

(f) Payment for mental health case management provided by vendors who contract with a county or Indian tribe shall be based on a monthly rate negotiated by the host county or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same service to other payers. If the service is provided by a team of contracted vendors, the county or tribe may negotiate a team rate with a vendor who is a member of the team. The team shall determine how to distribute the rate among its members. No reimbursement received by contracted vendors shall be returned to the county or tribe, except to reimburse the county or tribe for advance funding provided by the county or tribe to the vendor.

(g) If the service is provided by a team which includes contracted vendors, tribal staff, and county or state staff, the costs for county or state staff participation in the team shall be included in the rate for county-provided services. In this case, the contracted vendor, the tribal agency, and the county may each receive separate payment for services provided by each entity in the same month. In order to prevent duplication of services, each entity must document, in the recipient's file, the need for team case management and a description of the roles of the team members.

(h) The commissioner shall calculate the nonfederal share of actual medical assistance and general assistance medical care payments for each county, based on the higher of calendar year 1995 or 1996, by service date, project that amount forward to 1999, and transfer one-half of the result from medical assistance and general assistance medical care to each county's mental health grants under section 256E.12 for calendar year 1999. The annualized minimum amount added to each county's mental health grant shall be $3,000 per year for children and $5,000 per year for adults. The commissioner may reduce the statewide growth factor in order to fund these minimums. The annualized total amount transferred shall become part of the base for future mental health grants for each county.

deleted text begin (i) Any net increase in revenue to the county or tribe as a result of the change in this section must be used to provide expanded mental health services as defined in sections to , the Comprehensive Adult and Children's Mental Health Acts, excluding inpatient and residential treatment. For adults, increased revenue may also be used for services and consumer supports which are part of adult mental health projects approved under Laws 1997, chapter 203, article 7, section 25. For children, increased revenue may also be used for respite care and nonresidential individualized rehabilitation services as defined in section deleted text begin 245.492, subdivisions 17 and 23 deleted text end . "Increased revenue" has the meaning given in Minnesota Rules, part 9520.0903, subpart 3. deleted text end

deleted text begin (j) deleted text end new text begin (i) new text end Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for mental health case management shall be provided by the recipient's county of responsibility, as defined in sections 256G.01 to 256G.12, from sources other than federal funds or funds used to match other federal funds. If the service is provided by a tribal agency, the nonfederal share, if any, shall be provided by the recipient's tribe.

deleted text begin (k) deleted text end new text begin (j) new text end The commissioner may suspend, reduce, or terminate the reimbursement to a provider that does not meet the reporting or other requirements of this section. The county of responsibility, as defined in sections 256G.01 to 256G.12, or, if applicable, the tribal agency, is responsible for any federal disallowances. The county or tribe may share this responsibility with its contracted vendors.

deleted text begin (l) deleted text end new text begin (k) new text end The commissioner shall set aside a portion of the federal funds earned under this section to repay the special revenue maximization account under section 256.01, subdivision 2, clause (15). The repayment is limited to:

(1) the costs of developing and implementing this section; and

(2) programming the information systems.

deleted text begin (m) deleted text end new text begin (l) new text end Payments to counties and tribal agencies for case management expenditures under this section shall only be made from federal earnings from services provided under this section. Payments to county-contracted vendors shall include both the federal earnings and the county share.

deleted text begin (n) deleted text end new text begin (m) new text end Notwithstanding section 256B.041, county payments for the cost of mental health case management services provided by county or state staff shall not be made to the commissioner of finance. For the purposes of mental health case management services provided by county or state staff under this section, the centralized disbursement of payments to counties under section 256B.041 consists only of federal earnings from services provided under this section.

deleted text begin (o) deleted text end new text begin (n) new text end Case management services under this subdivision do not include therapy, treatment, legal, or outreach services.

deleted text begin (p) deleted text end new text begin (o) new text end If the recipient is a resident of a nursing facility, intermediate care facility, or hospital, and the recipient's institutional care is paid by medical assistance, payment for case management services under this subdivision is limited to the last 180 days of the recipient's residency in that facility and may not exceed more than six months in a calendar year.

deleted text begin (q) deleted text end new text begin (p) new text end Payment for case management services under this subdivision shall not duplicate payments made under other program authorities for the same purpose.

deleted text begin (r) deleted text end new text begin (q) new text end By July 1, 2000, the commissioner shall evaluate the effectiveness of the changes required by this section, including changes in number of persons receiving mental health case management, changes in hours of service per person, and changes in caseload size.

deleted text begin (s) deleted text end new text begin (r) new text end For each calendar year beginning with the calendar year 2001, the annualized amount of state funds for each county determined under paragraph (h) shall be adjusted by the county's percentage change in the average number of clients per month who received case management under this section during the fiscal year that ended six months prior to the calendar year in question, in comparison to the prior fiscal year.

deleted text begin (t) deleted text end new text begin (s) new text end For counties receiving the minimum allocation of $3,000 or $5,000 described in paragraph (h), the adjustment in paragraph (s) shall be determined so that the county receives the higher of the following amounts:

(1) a continuation of the minimum allocation in paragraph (h); or

(2) an amount based on that county's average number of clients per month who received case management under this section during the fiscal year that ended six months prior to the calendar year in question, times the average statewide grant per person per month for counties not receiving the minimum allocation.

deleted text begin (u) deleted text end new text begin (t) new text end The adjustments in paragraphs (s) and (t) shall be calculated separately for children and adults.

Sec. 7.

Minnesota Statutes 2004, section 256B.0945, subdivision 1, is amended to read:

Subdivision 1.

Provider qualifications.

Counties must arrange to provide residential services for children with severe emotional disturbance according to sections 245.4882, 245.4885, and this section. Services must be provided by a facility that is licensed according to section 245.4882 and administrative rules promulgated thereunder, and under contract with the county. deleted text begin Facilities providing services under subdivision 2, paragraph (a), must be accredited as a psychiatric facility by the Joint Commission on Accreditation of Healthcare Organizations, the Commission on Accreditation of Rehabilitation Facilities, or the Council on Accreditation. Accreditation is not required for facilities providing services under subdivision 2, paragraph (b). deleted text end

Sec. 8.

Minnesota Statutes 2005 Supplement, section 256B.0946, subdivision 1, is amended to read:

Subdivision 1.

Covered service.

(a) Effective July 1, 2006, and subject to federal approval, medical assistance covers medically necessary services described under paragraph (b) that are provided by a provider entity eligible under subdivision 3 to a client eligible under subdivision 2 who is placed in a treatment foster home licensed under Minnesota Rules, parts 2960.3000 to 2960.3340.

(b) Services to children with severe emotional disturbance residing in treatment foster care settings must meet the relevant standards for mental health services under sections 245.487 to 245.4887. In addition, specific service components reimbursed by medical assistance must meet the following standards:

(1) case management service component must meet the standards in Minnesota Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10;

(2) psychotherapy new text begin , crisis assistance, new text end and skills training components must meet the standards for children's therapeutic services and supports in section 256B.0943; and

(3) family psychoeducation services under supervision of a mental health professional.

Sec. 9.

Minnesota Statutes 2004, section 256B.76, is amended to read:

256B.76 PHYSICIAN AND DENTAL REIMBURSEMENT.

(a) Effective for services rendered on or after October 1, 1992, the commissioner shall make payments for physician services as follows:

(1) payment for level one Centers for Medicare and Medicaid Services' common procedural coding system codes titled "office and other outpatient services," "preventive medicine new and established patient," "delivery, antepartum, and postpartum care," "critical care," cesarean delivery and pharmacologic management provided to psychiatric patients, and level three codes for enhanced services for prenatal high risk, shall be paid at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992. If the rate on any procedure code within these categories is different than the rate that would have been paid under the methodology in section 256B.74, subdivision 2, then the larger rate shall be paid;

(2) payments for all other services shall be paid at the lower of (i) submitted charges, or (ii) 15.4 percent above the rate in effect on June 30, 1992;

(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th percentile of 1989, less the percent in aggregate necessary to equal the above increases except that payment rates for home health agency services shall be the rates in effect on September 30, 1992;

(4) effective for services rendered on or after January 1, 2000, payment rates for physician and professional services shall be increased by three percent over the rates in effect on December 31, 1999, except for home health agency and family planning agency services; and

(5) the increases in clause (4) shall be implemented January 1, 2000, for managed care.

(b) Effective for services rendered on or after October 1, 1992, the commissioner shall make payments for dental services as follows:

(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 30, 1992;

(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th percentile of 1989, less the percent in aggregate necessary to equal the above increases;

(3) effective for services rendered on or after January 1, 2000, payment rates for dental services shall be increased by three percent over the rates in effect on December 31, 1999;

(4) the commissioner shall award grants to community clinics or other nonprofit community organizations, political subdivisions, professional associations, or other organizations that demonstrate the ability to provide dental services effectively to public program recipients. Grants may be used to fund the costs related to coordinating access for recipients, developing and implementing patient care criteria, upgrading or establishing new facilities, acquiring furnishings or equipment, recruiting new providers, or other development costs that will improve access to dental care in a region. In awarding grants, the commissioner shall give priority to applicants that plan to serve areas of the state in which the number of dental providers is not currently sufficient to meet the needs of recipients of public programs or uninsured individuals. The commissioner shall consider the following in awarding the grants:

(i) potential to successfully increase access to an underserved population;

(ii) the ability to raise matching funds;

(iii) the long-term viability of the project to improve access beyond the period of initial funding;

(iv) the efficiency in the use of the funding; and

(v) the experience of the proposers in providing services to the target population.

The commissioner shall monitor the grants and may terminate a grant if the grantee does not increase dental access for public program recipients. The commissioner shall consider grants for the following:

(i) implementation of new programs or continued expansion of current access programs that have demonstrated success in providing dental services in underserved areas;

(ii) a pilot program for utilizing hygienists outside of a traditional dental office to provide dental hygiene services; and

(iii) a program that organizes a network of volunteer dentists, establishes a system to refer eligible individuals to volunteer dentists, and through that network provides donated dental care services to public program recipients or uninsured individuals;

(5) beginning October 1, 1999, the payment for tooth sealants and fluoride treatments shall be the lower of (i) submitted charge, or (ii) 80 percent of median 1997 charges;

(6) the increases listed in clauses (3) and (5) shall be implemented January 1, 2000, for managed care; and

(7) effective for services provided on or after January 1, 2002, payment for diagnostic examinations and dental x-rays provided to children under age 21 shall be the lower of (i) the submitted charge, or (ii) 85 percent of median 1999 charges.

(c) Effective for dental services rendered on or after January 1, 2002, the commissioner may, within the limits of available appropriation, increase reimbursements to dentists and dental clinics deemed by the commissioner to be critical access dental providers. Reimbursement to a critical access dental provider may be increased by not more than 50 percent above the reimbursement rate that would otherwise be paid to the provider. Payments to health plan companies shall be adjusted to reflect increased reimbursements to critical access dental providers as approved by the commissioner. In determining which dentists and dental clinics shall be deemed critical access dental providers, the commissioner shall review:

(1) the utilization rate in the service area in which the dentist or dental clinic operates for dental services to patients covered by medical assistance, general assistance medical care, or MinnesotaCare as their primary source of coverage;

(2) the level of services provided by the dentist or dental clinic to patients covered by medical assistance, general assistance medical care, or MinnesotaCare as their primary source of coverage; and

(3) whether the level of services provided by the dentist or dental clinic is critical to maintaining adequate levels of patient access within the service area.

In the absence of a critical access dental provider in a service area, the commissioner may designate a dentist or dental clinic as a critical access dental provider if the dentist or dental clinic is willing to provide care to patients covered by medical assistance, general assistance medical care, or MinnesotaCare at a level which significantly increases access to dental care in the service area.

new text begin The commissioner shall annually establish a reimbursement schedule for critical access dental providers and provider-specific limits on total reimbursement received under the reimbursement schedule, and shall notify each critical access dental provider of the schedule and limit. new text end

(d) An entity that operates both a Medicare certified comprehensive outpatient rehabilitation facility and a facility which was certified prior to January 1, 1993, that is licensed under Minnesota Rules, parts 9570.2000 to 9570.3600, and for whom at least 33 percent of the clients receiving rehabilitation services in the most recent calendar year are medical assistance recipients, shall be reimbursed by the commissioner for rehabilitation services at rates that are 38 percent greater than the maximum reimbursement rate allowed under paragraph (a), clause (2), when those services are (1) provided within the comprehensive outpatient rehabilitation facility and (2) provided to residents of nursing facilities owned by the entity.

(e) Effective for services rendered on or after January 1, 2007, the commissioner shall make payments for physician and professional services based on the Medicare relative value units (RVUs). This change shall be budget neutral and the cost of implementing RVUs will be incorporated in the established conversion factor.

Sec. 10.

new text begin [256B.763] CRITICAL ACCESS MENTAL HEALTH RATE INCREASE. new text end

new text begin (a) For services defined in paragraph (b) and rendered on or after July 1, 2007, payment rates shall be increased by 23.7 percent over the rates in effect on January 1, 2006, for: new text end

new text begin (1) psychiatrists and advanced practice registered nurses with a psychiatric specialty; new text end

new text begin (2) community mental health centers under section 256B.0625, subdivision 5; and new text end

new text begin (3) mental health clinics and centers certified under Minnesota Rules, parts 9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated as essential community providers under section 62Q.19. new text end

new text begin (b) This increase applies to group skills training when provided as a component of children's therapeutic services and support, psychotherapy, medication management, evaluation and management, diagnostic assessment, explanation of findings, psychological testing, neuropsychological services, direction of behavioral aides, and inpatient consultation. new text end

new text begin (c) This increase does not apply to rates that are governed by section 256B.0625, subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are negotiated with the county, rates that are established by the federal government, or rates that increased between January 1, 2004, and January 1, 2005. new text end

new text begin (d) The commissioner shall adjust rates paid to prepaid health plans under contract with the commissioner to reflect the rate increases provided in paragraph (a). The prepaid health plan must pass this rate increase to the providers identified in paragraph (a). new text end

Sec. 11.

Minnesota Statutes 2005 Supplement, section 256D.03, subdivision 3, is amended to read:

Subd. 3.

General assistance medical care; eligibility.

(a) General assistance medical care may be paid for any person who is not eligible for medical assistance under chapter 256B, including eligibility for medical assistance based on a spenddown of excess income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in paragraph (b), except as provided in paragraph (c), and:

(1) who is receiving assistance under section 256D.05, except for families with children who are eligible under Minnesota family investment program (MFIP), or who is having a payment made on the person's behalf under sections 256I.01 to 256I.06; or

(2) who is a resident of Minnesota; and

(i) who has gross countable income not in excess of 75 percent of the federal poverty guidelines for the family size, using a six-month budget period and whose equity in assets is not in excess of $1,000 per assistance unit. new text begin General assistance medical care is not available for applicants or enrollees who are otherwise eligible for medical assistance but fail to verify their assets. Enrollees who become eligible for medical assistance shall be terminated and transferred to medical assistance. new text end Exempt assets, the reduction of excess assets, and the waiver of excess assets must conform to the medical assistance program in section 256B.056, subdivision 3, with the following exception: the maximum amount of undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by the trustee, assuming the full exercise of the trustee's discretion under the terms of the trust, must be applied toward the asset maximum;

(ii) who has gross countable income above 75 percent of the federal poverty guidelines but not in excess of 175 percent of the federal poverty guidelines for the family size, using a six-month budget period, whose equity in assets is not in excess of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient hospitalization; or

(iii) the commissioner shall adjust the income standards under this section each July 1 by the annual update of the federal poverty guidelines following publication by the United States Department of Health and Human Services.

(b) Effective for applications and renewals processed on or after September 1, 2006, general assistance medical care may not be paid for applicants or recipients who are adults with dependent children under 21 whose gross family income is equal to or less than 275 percent of the federal poverty guidelines who are not described in paragraph (e).

(c) Effective for applications and renewals processed on or after September 1, 2006, general assistance medical care may be paid for applicants and recipients who meet all eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period beginning the date of application. Immediately following approval of general assistance medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04, subdivision 7, with covered services as provided in section 256L.03 for the rest of the six-month eligibility period, until their six-month renewal.

(d) To be eligible for general assistance medical care following enrollment in MinnesotaCare as required by paragraph (c), an individual must complete a new application.

(e) Applicants and recipients eligible under paragraph (a), clause (1) deleted text begin , or deleted text end new text begin ; new text end who have applied for and are awaiting a determination of blindness or disability by the state medical review team or a determination of eligibility for Supplemental Security Income or Social Security Disability Insurance by the Social Security Administration deleted text begin , or deleted text end new text begin ; new text end who fail to meet the requirements of section 256L.09, subdivision 2 deleted text begin , deleted text end new text begin ; new text end new text begin who are classified as end-stage renal disease beneficiaries in the Medicare program; who are enrolled in private health care coverage as defined in section 256B.02, subdivision 9; who are eligible under paragraph (j); or who receive treatment funded pursuant to section 254B.02 new text end are exempt from the MinnesotaCare enrollment requirements of this subdivision.

(f) For applications received on or after October 1, 2003, eligibility may begin no earlier than the date of application. For individuals eligible under paragraph (a), clause (2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but may reapply if there is a subsequent period of inpatient hospitalization.

(g) Beginning September 1, 2006, Minnesota health care program applications and renewals completed by recipients and applicants who are persons described in paragraph (c) and submitted to the county agency shall be determined for MinnesotaCare eligibility by the county agency. If all other eligibility requirements of this subdivision are met, eligibility for general assistance medical care shall be available in any month during which MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, notice of termination for eligibility for general assistance medical care shall be sent to an applicant or recipient. If all other eligibility requirements of this subdivision are met, eligibility for general assistance medical care shall be available until enrollment in MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).

(h) The date of an initial Minnesota health care program application necessary to begin a determination of eligibility shall be the date the applicant has provided a name, address, and Social Security number, signed and dated, to the county agency or the Department of Human Services. If the applicant is unable to provide a name, address, Social Security number, and signature when health care is delivered due to a medical condition or disability, a health care provider may act on an applicant's behalf to establish the date of an initial Minnesota health care program application by providing the county agency or Department of Human Services with provider identification and a temporary unique identifier for the applicant. The applicant must complete the remainder of the application and provide necessary verification before eligibility can be determined. The county agency must assist the applicant in obtaining verification if necessary.

(i) County agencies are authorized to use all automated databases containing information regarding recipients' or applicants' income in order to determine eligibility for general assistance medical care or MinnesotaCare. Such use shall be considered sufficient in order to determine eligibility and premium payments by the county agency.

(j) General assistance medical care is not available for a person in a correctional facility unless the person is detained by law for less than one year in a county correctional or detention facility as a person accused or convicted of a crime, or admitted as an inpatient to a hospital on a criminal hold order, and the person is a recipient of general assistance medical care at the time the person is detained by law or admitted on a criminal hold order and as long as the person continues to meet other eligibility requirements of this subdivision.

(k) General assistance medical care is not available for applicants or recipients who do not cooperate with the county agency to meet the requirements of medical assistance.

(l) In determining the amount of assets of an individual eligible under paragraph (a), clause (2), item (i), there shall be included any asset or interest in an asset, including an asset excluded under paragraph (a), that was given away, sold, or disposed of for less than fair market value within the 60 months preceding application for general assistance medical care or during the period of eligibility. Any transfer described in this paragraph shall be presumed to have been for the purpose of establishing eligibility for general assistance medical care, unless the individual furnishes convincing evidence to establish that the transaction was exclusively for another purpose. For purposes of this paragraph, the value of the asset or interest shall be the fair market value at the time it was given away, sold, or disposed of, less the amount of compensation received. For any uncompensated transfer, the number of months of ineligibility, including partial months, shall be calculated by dividing the uncompensated transfer amount by the average monthly per person payment made by the medical assistance program to skilled nursing facilities for the previous calendar year. The individual shall remain ineligible until this fixed period has expired. The period of ineligibility may exceed 30 months, and a reapplication for benefits after 30 months from the date of the transfer shall not result in eligibility unless and until the period of ineligibility has expired. The period of ineligibility begins in the month the transfer was reported to the county agency, or if the transfer was not reported, the month in which the county agency discovered the transfer, whichever comes first. For applicants, the period of ineligibility begins on the date of the first approved application.

(m) When determining eligibility for any state benefits under this subdivision, the income and resources of all noncitizens shall be deemed to include their sponsor's income and resources as defined in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and subsequently set out in federal rules.

(n) Undocumented noncitizens and nonimmigrants are ineligible for general assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and an undocumented noncitizen is an individual who resides in the United States without the approval or acquiescence of the Immigration and Naturalization Service.

(o) Notwithstanding any other provision of law, a noncitizen who is ineligible for medical assistance due to the deeming of a sponsor's income and resources, is ineligible for general assistance medical care.

(p) Effective July 1, 2003, general assistance medical care emergency services end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2006. new text end

Sec. 12.

Minnesota Statutes 2005 Supplement, section 256L.03, subdivision 5, is amended to read:

Subd. 5.

Co-payments and coinsurance.

(a) Except as provided in paragraphs (b) and (c), the MinnesotaCare benefit plan shall include the following co-payments and coinsurance requirements for all enrollees:

(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and $3,000 per family;

(2) $3 per prescription for adult enrollees;

(3) $25 for eyeglasses for adult enrollees;

(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an episode of service which is required because of a recipient's symptoms, diagnosis, or established illness, and which is delivered in an ambulatory setting by a physician or physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, audiologist, optician, or optometrist; new text begin and new text end

(5) $6 for nonemergency visits to a hospital-based emergency room deleted text begin ; and deleted text end new text begin . new text end

deleted text begin (6) 50 percent of the fee-for-service rate for adult dental care services other than preventive care services for persons eligible under section deleted text begin 256L.04, subdivisions 1 to 7 deleted text end , with income equal to or less than 175 percent of the federal poverty guidelines. deleted text end

(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of children under the age of 21 in households with family income equal to or less than 175 percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to parents and relative caretakers of children under the age of 21 in households with family income greater than 175 percent of the federal poverty guidelines for inpatient hospital admissions occurring on or after January 1, 2001.

(c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children under the age of 21.

(d) Adult enrollees with family gross income that exceeds 175 percent of the federal poverty guidelines and who are not pregnant shall be financially responsible for the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient hospital benefit limit.

(e) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, or changes from one prepaid health plan to another during a calendar year, any charges submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket expenses incurred by the enrollee for inpatient services, that were submitted or incurred prior to enrollment, or prior to the change in health plans, shall be disregarded.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007. new text end

Sec. 13.

Minnesota Statutes 2004, section 256L.11, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Critical access dental providers. new text end

new text begin Effective for dental services provided to MinnesotaCare enrollees on or after January 1, 2007, the commissioner shall increase payment rates to dentists and dental clinics deemed by the commissioner to be critical access providers under section 256B.76, paragraph (c), by 50 percent above the payment rate that would otherwise be paid to the provider. The commissioner shall adjust the rates paid on or after January 1, 2007, to prepaid health plans under contract with the commissioner to reflect this rate increase. The prepaid health plan must pass this rate increase to providers who have been identified by the commissioner as critical access dental providers under section 256B.76, paragraph (c). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 14.

Minnesota Statutes 2004, section 256L.17, subdivision 2, is amended to read:

Subd. 2.

Limit on total assets.

(a) Effective July 1, 2002, or upon federal approval, whichever is later, in order to be eligible for the MinnesotaCare program, a household of two or more persons must not own more than $20,000 in total net assets, and a household of one person must not own more than $10,000 in total net assets.

(b) For purposes of this subdivision, assets are determined according to section 256B.056, subdivision 3c.

new text begin (c) State-funded MinnesotaCare is not available for applicants or enrollees who are otherwise eligible for medical assistance but fail to verify assets. Enrollees who become eligible for federally funded medical assistance shall be terminated from state-funded MinnesotaCare and transferred to medical assistance. new text end

Sec. 15.

new text begin PHARMACY PAYMENT REFORM ADVISORY COMMITTEE. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following words, terms, and phrases have the following meanings: new text end

new text begin (a) "Department" means the Department of Human Services. new text end

new text begin (b) "Commissioner" means the commissioner of the Department of Human Services. new text end

new text begin (c) "Cost of dispensing" includes, but is not limited to, operational and overhead costs; professional counseling as required under the Omnibus Budget Reconciliation Act of 1990, excluding medication management services under Minnesota Statutes, section 256B.0625, subdivision 13h; salaries; and other associated administrative costs. In addition, cost of dispensing includes expenses transferred by wholesale drug distributors to pharmacies as a result of the wholesale drug distributor tax under Minnesota Statutes, sections 295.52 to 295.582. new text end

new text begin (d) "Additional costs" include, but are not limited to, costs relating to coordination of benefits, bad debt, uncollected co-pays, payment lag times, and high rate of rejected claims. new text end

new text begin (e) "Advisory committee" means the Pharmacy Payment Reform Advisory Committee established by this section. new text end

new text begin Subd. 2. new text end

new text begin Advisory committee. new text end

new text begin The Pharmacy Payment Reform Advisory Committee is established under the direction of the commissioner of human services. The commissioner, after receiving recommendations from the Minnesota Pharmacists Association, the Minnesota Retailers Association, the Minnesota Hospital Association, and the Minnesota Wholesale Druggists Association, shall convene a pharmacy payment reform advisory committee to advise the commissioner and make recommendations to the legislature on implementation of pharmacy reforms contained in title VI, chapter IV, of the Deficit Reduction Act of 2005. The committee shall be comprised of seven private sector representatives with management/operations experience, representing each of the following pharmacy practice settings: independent and chain pharmacy entities, one of whom must have expertise in pharmacoeconomics; managed care; hospital outpatient pharmacies; and wholesale drug distribution. The committee shall be staffed by an employee of the department who shall serve as an ex officio nonvoting member of the committee. The department's pharmacy program manager shall also serve as an ex officio, nonvoting member of the committee. The committee is governed by Minnesota Statutes, section 15.059, except that committee members do not receive compensation or reimbursement for expenses. The advisory committee members shall serve a two-year term and the advisory committee will expire on January 31, 2008. At least five of the committee members shall be registered pharmacists. new text end

new text begin Subd. 3. new text end

new text begin Cost of dispensing study. new text end

new text begin The department shall conduct a prescription drug cost of dispensing study to determine the average cost of dispensing Medicaid prescriptions in Minnesota. The department shall contract with an independent third party to conduct a Medicaid prescription drug cost of dispensing study. The cost of dispensing study shall be completed by an independent third party no later than January 1, 2007, and reported to the department and the advisory committee upon completion. new text end

new text begin Subd. 4. new text end

new text begin Content of study. new text end

new text begin The study shall determine the cost of dispensing the average prescription and any additional costs that might be incurred for dispensing Medicaid prescriptions. The study shall include the current level of dispensing fees paid to providers for dispensing Medicaid prescription drugs and an estimate of revenues required to adequately adjust reimbursement to cover the cost to pharmacies for dispensing Medicaid prescription drugs. new text end

new text begin Subd. 5. new text end

new text begin Methodology of study and publishing requirement. new text end

new text begin The independent third-party entity performing the cost of dispensing research shall submit to the advisory committee the entity's proposed research methodology and shall make the data available to allow other independent researchers to review the study results. The data shall be published in a manner that does not identify the source of the data. new text end

new text begin Subd. 6. new text end

new text begin Recommendations. new text end

new text begin The advisory committee shall use the information from the cost of dispensing study and make recommendations to the commissioner on implementation of pharmacy reforms contained in title VI, chapter IV, of the Deficit Reduction Act of 2005. The commissioner shall report the findings of the study and the recommendations of the advisory committee to the legislature by February 1, 2007. The commissioner, in consultation with the advisory committee, shall make recommendations to the legislature on how to adequately adjust Medicaid reimbursement rates to pharmacies to cover the costs of dispensing and additional costs to pharmacies. Reports shall include the current level of dispensing fees paid to providers for dispensing Medicaid prescription drugs and an estimate of revenues required to adequately adjust reimbursement to cover the cost to pharmacies for dispensing Medicaid prescription drugs to ensure that: new text end

new text begin (1) reimbursement is sufficient to enlist an adequate number of participating pharmacy providers so that pharmacy services are as available for Medicaid recipients under the program as for the state's general population; new text end

new text begin (2) Medicaid dispensing fees are adequate to reimburse pharmacy providers for the costs of dispensing prescriptions under the Medicaid program; new text end

new text begin (3) Medicaid pharmacy reimbursement for multiple-source drugs included on the federal upper reimbursement limit is set at the level established by the federal government under United States Code, title 42, section 1396r-8(e)(5); and new text end

new text begin (4) the new payment system does not create disincentives for pharmacists to dispense generic drugs. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 16.

new text begin MENTAL HEALTH PILOT PROGRAM FOR UNSHELTERED INDIVIDUALS. new text end

new text begin Subdivision 1. new text end

new text begin Pilot project program components. new text end

new text begin The commissioner of human services shall establish two pilot projects, one in Ramsey County and one in Hennepin County, which shall: new text end

new text begin (1) operate two ten-bed facilities in separate locations; new text end

new text begin (2) provide community support to individuals who have been living homeless for at least one year; new text end

new text begin (3) provide 24-hour supervision; and new text end

new text begin (4) provide on-site mental health services which focus on the mental health needs of individuals who have lived unsheltered. new text end

new text begin Subd. 2. new text end

new text begin Group residential housing. new text end

new text begin Notwithstanding Minnesota Statutes, section 256I.05, subdivisions 1a and 1c, a county agency shall negotiate a supplementary rate in addition to the rate specified in Minnesota Statutes, section 256I.05, subdivision 1, not to exceed $700 per month, including any legislatively authorized inflationary adjustments for a group residential program that meets the components under subdivision 1, and for the independent living component of the program under subdivision 3. new text end

new text begin Subd. 3. new text end

new text begin Independent living. new text end

new text begin An individual who has lived in one of the facilities under subdivision 1, and who is being transitioned to independent living as part of the program plan, continues to be eligible for group residential housing and the supplementary service rate negotiated with the county under subdivision 2. new text end

new text begin Subd. 4. new text end

new text begin Effective date. new text end

new text begin This section is effective July 1, 2006, through June 30, 2008. new text end

Sec. 17.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2004, sections 245.465, subdivision 2; 256B.0945, subdivisions 5, 6, 7, 8, and 9; and 256B.83, new text end new text begin are repealed. new text end

ARTICLE 17

HEALTH CARE FEDERAL COMPLIANCE

Section 1.

Minnesota Statutes 2004, section 62A.045, is amended to read:

62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT HEALTH PROGRAMS.

(a) new text begin As a condition of doing business in Minnesota, each health insurer shall comply with the requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171, including any federal regulations adopted under that act, to the extent that it imposes a requirement that applies in this state and that is not also required by the laws of this state. This section does not require compliance with any provision of the federal act prior to the effective date provided for that provision in the federal act. The commissioner shall enforce this section. new text end

new text begin For the purpose of this section, "health insurer" includes self-insured plans, group health plans (as defined in section 607(1) of the Employee Retirement Income Security Act of 1974), service benefit plans, managed care organizations, pharmacy benefit managers, or other parties that are by contract legally responsible to pay a claim for a healthcare item or service for an individual receiving benefits under paragraph (b). new text end

new text begin (b) new text end No health plan issued or renewed to provide coverage to a Minnesota resident shall contain any provision denying or reducing benefits because services are rendered to a person who is eligible for or receiving medical benefits pursuant to title XIX of the Social Security Act (Medicaid) in this or any other state; chapter 256; 256B; or 256D or services pursuant to section 252.27; 256L.01 to 256L.10; 260B.331, subdivision 2; 260C.331, subdivision 2; or 393.07, subdivision 1 or 2. No health carrier providing benefits under plans covered by this section shall use eligibility for medical programs named in this section as an underwriting guideline or reason for nonacceptance of the risk.

deleted text begin (b) deleted text end new text begin (c) new text end If payment for covered expenses has been made under state medical programs for health care items or services provided to an individual, and a third party has a legal liability to make payments, the rights of payment and appeal of an adverse coverage decision for the individual, or in the case of a child their responsible relative or caretaker, will be subrogated to the state agency. The state agency may assert its rights under this section within three years of the date the service was rendered. For purposes of this section, "state agency" includes prepaid health plans under contract with the commissioner according to sections 256B.69, 256D.03, subdivision 4, paragraph (c), and 256L.12; children's mental health collaboratives under section 245.493; demonstration projects for persons with disabilities under section 256B.77; nursing homes under the alternative payment demonstration project under section 256B.434; and county-based purchasing entities under section 256B.692.

deleted text begin (c) deleted text end new text begin (d) new text end Notwithstanding any law to the contrary, when a person covered by a health plan receives medical benefits according to any statute listed in this section, payment for covered services or notice of denial for services billed by the provider must be issued directly to the provider. If a person was receiving medical benefits through the Department of Human Services at the time a service was provided, the provider must indicate this benefit coverage on any claim forms submitted by the provider to the health carrier for those services. If the commissioner of human services notifies the health carrier that the commissioner has made payments to the provider, payment for benefits or notices of denials issued by the health carrier must be issued directly to the commissioner. Submission by the department to the health carrier of the claim on a Department of Human Services claim form is proper notice and shall be considered proof of payment of the claim to the provider and supersedes any contract requirements of the health carrier relating to the form of submission. Liability to the insured for coverage is satisfied to the extent that payments for those benefits are made by the health carrier to the provider or the commissioner as required by this section.

deleted text begin (d) deleted text end new text begin (e) new text end When a state agency has acquired the rights of an individual eligible for medical programs named in this section and has health benefits coverage through a health carrier, the health carrier shall not impose requirements that are different from requirements applicable to an agent or assignee of any other individual covered.

deleted text begin (e) deleted text end new text begin (f) new text end For the purpose of this section, health plan includes coverage offered by community integrated service networks, any plan governed under the federal Employee Retirement Income Security Act of 1974 (ERISA), United States Code, title 29, sections 1001 to 1461, and coverage offered under the exclusions listed in section 62A.011, subdivision 3, clauses (2), (6), (9), (10), and (12).

Sec. 2.

Minnesota Statutes 2004, section 62S.05, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Extension of limitation periods. new text end

new text begin The commissioner may extend the limitation periods set forth in subdivisions 1 and 2 as to specific age group categories in specific policy forms upon finding that the extension is in the best interest of the public. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 3.

Minnesota Statutes 2004, section 62S.08, subdivision 3, is amended to read:

Subd. 3.

Mandatory format.

The following standard format outline of coverage must be used, unless otherwise specifically indicated:

COMPANY NAME

ADDRESS - CITY AND STATE

TELEPHONE NUMBER

LONG-TERM CARE INSURANCE

OUTLINE OF COVERAGE

Policy Number or Group Master Policy and Certificate Number

(Except for policies or certificates which are guaranteed issue, the following caution statement, or language substantially similar, must appear as follows in the outline of coverage.)

CAUTION: The issuance of this long-term care insurance (policy) (certificate) is based upon your responses to the questions on your application. A copy of your (application) (enrollment form) (is enclosed) (was retained by you when you applied). If your answers are incorrect or untrue, the company has the right to deny benefits or rescind your policy. The best time to clear up any questions is now, before a claim arises. If, for any reason, any of your answers are incorrect, contact the company at this address: (insert address).

(1) This policy is (an individual policy of insurance) (a group policy) which was issued in the (indicate jurisdiction in which group policy was issued).

(2) PURPOSE OF OUTLINE OF COVERAGE. This outline of coverage provides a very brief description of the important features of the policy. You should compare this outline of coverage to outlines of coverage for other policies available to you. This is not an insurance contract, but only a summary of coverage. Only the individual or group policy contains governing contractual provisions. This means that the policy or group policy sets forth in detail the rights and obligations of both you and the insurance company. Therefore, if you purchase this coverage, or any other coverage, it is important that you READ YOUR POLICY (OR CERTIFICATE) CAREFULLY.

(3) THIS PLAN IS INTENDED TO BE A QUALIFIED LONG-TERM CARE INSURANCE CONTRACT AS DEFINED UNDER SECTION 7702(B)(b) OF THE INTERNAL REVENUE CODE OF 1986.

(4) new text begin TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE CONTINUED IN FORCE OR DISCONTINUED. new text end

new text begin (a) (For long-term care health insurance policies or certificates describe one of the following permissible policy renewability provisions:) new text end

new text begin (1) (Policies and certificates that are guaranteed renewable shall contain the following statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS GUARANTEED RENEWABLE. This means you have the right, subject to the terms of your policy, (certificate) to continue this policy as long as you pay your premiums on time. (Company name) cannot change any of the terms of your policy on its own, except that, in the future, IT MAY INCREASE THE PREMIUM YOU PAY. new text end

new text begin (2) (Policies and certificates that are noncancelable shall contain the following statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS NONCANCELABLE. This means that you have the right, subject to the terms of your policy, to continue this policy as long as you pay your premiums on time. (Company name) cannot change any of the terms of your policy on its own and cannot change the premium you currently pay. However, if your policy contains an inflation protection feature where you choose to increase your benefits, (Company name) may increase your premium at that time for those additional benefits. new text end

new text begin (b) (For group coverage, specifically describe continuation/conversion provisions applicable to the certificate and group policy.) new text end

new text begin (c) (Describe waiver of premium provisions or state that there are not such provisions.) new text end

new text begin (5) TERMS UNDER WHICH THE COMPANY MAY CHANGE PREMIUMS. new text end

new text begin (In bold type larger than the maximum type required to be used for the other provisions of the outline of coverage, state whether or not the company has a right to change the premium and, if a right exists, describe clearly and concisely each circumstance under which the premium may change.) new text end

new text begin (6) new text end TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE RETURNED AND PREMIUM REFUNDED.

(a) (Provide a brief description of the right to return -- "free look" provision of the policy.)

(b) (Include a statement that the policy either does or does not contain provisions providing for a refund or partial refund of premium upon the death of an insured or surrender of the policy or certificate. If the policy contains such provisions, include a description of them.)

deleted text begin (5) deleted text end new text begin (7) new text end THIS IS NOT MEDICARE SUPPLEMENT COVERAGE. If you are eligible for Medicare, review the Medicare Supplement Buyer's Guide available from the insurance company.

(a) (For agents) neither (insert company name) nor its agents represent Medicare, the federal government, or any state government.

(b) (For direct response) (insert company name) is not representing Medicare, the federal government, or any state government.

deleted text begin (6) deleted text end new text begin (8) new text end LONG-TERM CARE COVERAGE. Policies of this category are designed to provide coverage for one or more necessary or medically necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services, provided in a setting other than an acute care unit of a hospital, such as in a nursing home, in the community, or in the home.

This policy provides coverage in the form of a fixed dollar indemnity benefit for covered long-term care expenses, subject to policy (limitations), (waiting periods), and (coinsurance) requirements. (Modify this paragraph if the policy is not an indemnity policy.)

deleted text begin (7) deleted text end new text begin (9) new text end BENEFITS PROVIDED BY THIS POLICY.

(a) (Covered services, related deductible(s), waiting periods, elimination periods, and benefit maximums.)

(b) (Institutional benefits, by skill level.)

(c) (Noninstitutional benefits, by skill level.)

new text begin (d) (Eligibility for payment of benefits.) new text end

new text begin (Activities of daily living and cognitive impairment shall be used to measure an insured's need for long-term care and must be defined and described as part of the outline of coverage.) new text end

(Any benefit screens must be explained in this section. If these screens differ for different benefits, explanation of the screen should accompany each benefit description. If an attending physician or other specified person must certify a certain level of functional dependency in order to be eligible for benefits, this too must be specified. If activities of daily living (ADLs) are used to measure an insured's need for long-term care, then these qualifying criteria or screens must be explained.)

deleted text begin (8) deleted text end new text begin (10) new text end LIMITATIONS AND EXCLUSIONS:

Describe:

(a) preexisting conditions;

(b) noneligible facilities/provider;

(c) noneligible levels of care (e.g., unlicensed providers, care or treatment provided by a family member, etc.);

(d) exclusions/exceptions; and

(e) limitations.

(This section should provide a brief specific description of any policy provisions which limit, exclude, restrict, reduce, delay, or in any other manner operate to qualify payment of the benefits described in paragraph deleted text begin (6) deleted text end new text begin (8) new text end .)

THIS POLICY MAY NOT COVER ALL THE EXPENSES ASSOCIATED WITH YOUR LONG-TERM CARE NEEDS.

deleted text begin (9) deleted text end new text begin (11) new text end RELATIONSHIP OF COST OF CARE AND BENEFITS. Because the costs of long-term care services will likely increase over time, you should consider whether and how the benefits of this plan may be adjusted. As applicable, indicate the following:

(a) that the benefit level will not increase over time;

(b) any automatic benefit adjustment provisions;

(c) whether the insured will be guaranteed the option to buy additional benefits and the basis upon which benefits will be increased over time if not by a specified amount or percentage;

(d) if there is such a guarantee, include whether additional underwriting or health screening will be required, the frequency and amounts of the upgrade options, and any significant restrictions or limitations; and

(e) whether there will be any additional premium charge imposed and how that is to be calculated.

deleted text begin (10) deleted text end new text begin (12) new text end ALZHEIMER'S DISEASE AND OTHER ORGANIC BRAIN DISORDERS. (State that the policy provides coverage for insureds clinically diagnosed as having Alzheimer's disease or related degenerative and dementing illnesses. Specifically, describe each benefit screen or other policy provision which provides preconditions to the availability of policy benefits for such an insured.)

deleted text begin (11) deleted text end new text begin (13) new text end PREMIUM.

(a) State the total annual premium for the policy.

(b) If the premium varies with an applicant's choice among benefit options, indicate the portion of annual premium which corresponds to each benefit option.

deleted text begin (12) deleted text end new text begin (14) new text end ADDITIONAL FEATURES.

(a) Indicate if medical underwriting is used.

(b) Describe other important features.

new text begin (15) CONTACT THE STATE DEPARTMENT OF COMMERCE OR SENIOR LINKAGE LINE IF YOU HAVE GENERAL QUESTIONS REGARDING LONG-TERM CARE INSURANCE. CONTACT THE INSURANCE COMPANY IF YOU HAVE SPECIFIC QUESTIONS REGARDING YOUR LONG-TERM CARE INSURANCE POLICY OR CERTIFICATE. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 4.

Minnesota Statutes 2004, section 62S.081, subdivision 4, is amended to read:

Subd. 4.

Forms.

An insurer shall use the forms in Appendices B new text begin (Personal Worksheet) new text end and F new text begin (Potential Rate Increase Disclosure Form) new text end of the Long-term Care Insurance Model Regulation adopted by the National Association of Insurance Commissioners to comply with the requirements of subdivisions 1 and 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 5.

Minnesota Statutes 2004, section 62S.10, subdivision 2, is amended to read:

Subd. 2.

Contents.

The summary must include the following information:

(1) an explanation of how the long-term care benefit interacts with other components of the policy, including deductions from death benefits;

(2) an illustration of the amount of benefits, the length of benefits, and the guaranteed lifetime benefits, if any, for each covered person; deleted text begin and deleted text end

(3) any exclusions, reductions, and limitations on benefits of long-term care new text begin ; and new text end

new text begin (4) a statement that any long-term care inflation protection option required by section 62S.23 is not available under this policy new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 6.

Minnesota Statutes 2004, section 62S.13, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Death of insured. new text end

new text begin In the event of the death of the insured, this section shall not apply to the remaining death benefit of a life insurance policy that accelerates benefits for long-term care. In this situation, the remaining death benefits under these policies shall be governed by section 61A.03, subdivision 1, paragraph (c). In all other situations, this section shall apply to life insurance policies that accelerate benefits for long-term care. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 7.

Minnesota Statutes 2004, section 62S.14, subdivision 2, is amended to read:

Subd. 2.

Terms.

The terms "guaranteed renewable" and "noncancelable" may not be used in an individual long-term care insurance policy without further explanatory language that complies with the disclosure requirements of section 62S.20. new text begin The term "level premium" may only be used when the insurer does not have the right to change the premium. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 8.

Minnesota Statutes 2004, section 62S.15, is amended to read:

62S.15 AUTHORIZED LIMITATIONS AND EXCLUSIONS.

No policy may be delivered or issued for delivery in this state as long-term care insurance if the policy limits or excludes coverage by type of illness, treatment, medical condition, or accident, except as follows:

(1) preexisting conditions or diseases;

(2) mental or nervous disorders; except that the exclusion or limitation of benefits on the basis of Alzheimer's disease is prohibited;

(3) alcoholism and drug addiction;

(4) illness, treatment, or medical condition arising out of war or act of war; participation in a felony, riot, or insurrection; service in the armed forces or auxiliary units; suicide, attempted suicide, or intentionally self-inflicted injury; or non-fare-paying aviation; deleted text begin and deleted text end

(5) treatment provided in a government facility unless otherwise required by law, services for which benefits are available under Medicare or other government program except Medicaid, state or federal workers' compensation, employer's liability or occupational disease law, motor vehicle no-fault law; services provided by a member of the covered person's immediate family; and services for which no charge is normally made in the absence of insurance new text begin ; and new text end

new text begin (6) expenses for services or items available or paid under another long-term care insurance or health insurance policy new text end .

This subdivision does not prohibit exclusions and limitations by type of provider or territorial limitations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 9.

Minnesota Statutes 2004, section 62S.20, subdivision 1, is amended to read:

Subdivision 1.

Renewability.

new text begin (a) new text end Individual long-term care insurance policies must contain a renewability provision that is appropriately captioned, appears on the first page of the policy, and clearly states deleted text begin the duration, where limited, of renewability and the duration of the term of coverage for which the policy is issued and for which it may be renewed deleted text end new text begin that the coverage is guaranteed renewable or noncancelable new text end . This subdivision does not apply to policies which are part of or combined with life insurance policies which do not contain a renewability provision and under which the right to nonrenew is reserved solely to the policyholder.

new text begin (b) A long-term care insurance policy or certificate, other than one where the insurer does not have the right to change the premium, shall include a statement that premium rates may change. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 10.

Minnesota Statutes 2004, section 62S.24, subdivision 1, is amended to read:

Subdivision 1.

Required questions.

An application form must include the following questions designed to elicit information as to whether, as of the date of the application, the applicant has another long-term care insurance policy or certificate in force or whether a long-term care policy or certificate is intended to replace any other new text begin accident and sickness or new text end long-term care policy or certificate presently in force. A supplementary application or other form to be signed by the applicant and agent, except where the coverage is sold without an agent, containing the following questions may be used. If a replacement policy is issued to a group as defined under section 62S.01, subdivision 15, clause (1), the following questions may be modified only to the extent necessary to elicit information about long-term care insurance policies other than the group policy being replaced; provided, however, that the certificate holder has been notified of the replacement:

(1) do you have another long-term care insurance policy or certificate in force new text begin (including health care service contract or health maintenance organization contract) new text end ?;

(2) did you have another long-term care insurance policy or certificate in force during the last 12 months?;

(i) if so, with which company?; and

(ii) if that policy lapsed, when did it lapse?; deleted text begin and deleted text end

(3) are you covered by Medicaid? new text begin ; and new text end

new text begin (4) do you intend to replace any of your medical or health insurance coverage with this policy (certificate)? new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 11.

Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Other health insurance policies sold by agent. new text end

new text begin Agents shall list all other health insurance policies they have sold to the applicant that are still in force or were sold in the past five years and are no longer in force. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 12.

Minnesota Statutes 2004, section 62S.24, subdivision 3, is amended to read:

Subd. 3.

Solicitations other than direct response.

After determining that a sale will involve replacement, an insurer, other than an insurer using direct response solicitation methods or its agent, shall furnish the applicant, before issuance or delivery of the individual long-term care insurance policy, a notice regarding replacement of accident and sickness or long-term care coverage. One copy of the notice must be retained by the applicant and an additional copy signed by the applicant must be retained by the insurer. The required notice must be provided in the following manner:

NOTICE TO APPLICANT REGARDING REPLACEMENT OF

INDIVIDUAL ACCIDENT AND SICKNESS OR LONG-TERM CARE INSURANCE

(Insurance company's name and address)

SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE.

According to (your application) (information you have furnished), you intend to lapse or otherwise terminate existing new text begin accident and sickness or new text end long-term care insurance and replace it with an individual long-term care insurance policy to be issued by (company name) insurance company. Your new policy provides 30 days within which you may decide, without cost, whether you desire to keep the policy. For your own information and protection, you should be aware of and seriously consider certain factors which may affect the insurance protection available to you under the new policy.

You should review this new coverage carefully, comparing it with all new text begin accident and sickness or new text end long-term care insurance coverage you now have, and terminate your present policy only if, after due consideration, you find that purchase of this long-term care coverage is a wise decision.

STATEMENT TO APPLICANT BY AGENT

(BROKER OR OTHER REPRESENTATIVE):

(Use additional sheets, as necessary.)

I have reviewed your current new text begin medical health new text end insurance coverage. I believe the replacement of insurance involved in this transaction materially improves your position. My conclusion has taken into account the following considerations, which I call to your attention:

(a) Health conditions which you presently have (preexisting conditions) may not be immediately or fully covered under the new policy. This could result in denial or delay in payment of benefits under the new policy, whereas a similar claim might have been payable under your present policy.

(b) State law provides that your replacement policy or certificate may not contain new preexisting conditions or probationary periods. The insurer will waive any time periods applicable to preexisting conditions or probationary periods in the new policy (or coverage) for similar benefits to the extent such time was spent (depleted) under the original policy.

(c) If you are replacing existing long-term care insurance coverage, you may wish to secure the advice of your present insurer or its agent regarding the proposed replacement of your present policy. This is not only your right, but it is also in your best interest to make sure you understand all the relevant factors involved in replacing your present coverage.

(d) If, after due consideration, you still wish to terminate your present policy and replace it with new coverage, be certain to truthfully and completely answer all questions on the application concerning your medical health history. Failure to include all material medical information on an application may provide a basis for the company to deny any future claims and to refund your premium as though your policy had never been in force. After the application has been completed and before you sign it, reread it carefully to be certain that all information has been properly recorded.

.

(Signature of Agent, Broker, or Other Representative)

(Typed Name and Address of Agency or Broker)

The above "Notice to Applicant" was delivered to me on:

	.
	(Date)
	.
	(Applicant's Signature)

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 13.

Minnesota Statutes 2004, section 62S.24, subdivision 4, is amended to read:

Subd. 4.

Direct response solicitations.

Insurers using direct response solicitation methods shall deliver a notice regarding replacement of long-term care coverage to the applicant upon issuance of the policy. The required notice must be provided in the following manner:

NOTICE TO APPLICANT REGARDING REPLACEMENT OF new text begin ACCIDENT AND SICKNESS OR new text end

LONG-TERM CARE INSURANCE

(Insurance company's name and address)

SAVE THIS NOTICE! IT MAY BE

IMPORTANT TO YOU IN THE FUTURE.

According to (your application) (information you have furnished), you intend to lapse or otherwise terminate existing new text begin accident and sickness or new text end long-term care insurance and replace it with the long-term care insurance policy delivered herewith issued by (company name) insurance company.

Your new policy provides 30 days within which you may decide, without cost, whether you desire to keep the policy. For your own information and protection, you should be aware of and seriously consider certain factors which may affect the insurance protection available to you under the new policy.

You should review this new coverage carefully, comparing it with all long-term care insurance coverage you now have, and terminate your present policy only if, after due consideration, you find that purchase of this long-term care coverage is a wise decision.

(a) Health conditions which you presently have (preexisting conditions) may not be immediately or fully covered under the new policy. This could result in denial or delay in payment of benefits under the new policy, whereas a similar claim might have been payable under your present policy.

(b) State law provides that your replacement policy or certificate may not contain new preexisting conditions or probationary periods. Your insurer will waive any time periods applicable to preexisting conditions or probationary periods in the new policy (or coverage) for similar benefits to the extent such time was spent (depleted) under the original policy.

(c) If you are replacing existing long-term care insurance coverage, you may wish to secure the advice of your present insurer or its agent regarding the proposed replacement of your present policy. This is not only your right, but it is also in your best interest to make sure you understand all the relevant factors involved in replacing your present coverage.

(d) (To be included only if the application is attached to the policy.)

If, after due consideration, you still wish to terminate your present policy and replace it with new coverage, read the copy of the application attached to your new policy and be sure that all questions are answered fully and correctly. Omissions or misstatements in the application could cause an otherwise valid claim to be denied. Carefully check the application and write to (company name and address) within 30 days if any information is not correct and complete, or if any past medical history has been left out of the application.

	.
	(Company Name)

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 14.

Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Life insurance policies. new text end

new text begin Life insurance policies that accelerate benefits for long-term care shall comply with this section if the policy being replaced is a long-term care insurance policy. If the policy being replaced is a life insurance policy, the insurer shall comply with the replacement requirements of sections 61A.53 to 61A.60. If a life insurance policy that accelerates benefits for long-term care is replaced by another such policy, the replacing insurer shall comply with both the long-term care and the life insurance replacement requirements. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 15.

Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Exchange for long-term care partnership policy; addition of policy rider. new text end

new text begin (a) If authorized by federal law or a federal waiver is granted with respect to the long-term care partnership program referenced in section 256B.0571, issuers of long-term care policies may voluntarily exchange a current long-term care insurance policy for a long-term care partnership policy that meets the requirements of Public Law 109-171, section 6021, after the effective date of the state plan amendment implementing the partnership program in this state. new text end

new text begin (b) If authorized by federal law or a federal waiver is granted with respect to the long-term care partnership program referenced in section 256B.0571, allowing an existing long-term care insurance policy to qualify as a partnership policy by addition of a policy rider, the issuer of the policy is authorized to add the rider to the policy after the effective date of the state plan amendment implementing the partnership program in this state. new text end

new text begin (c) The commissioner, in cooperation with the commissioner of human services, shall pursue any federal law changes or waivers necessary to allow the implementation of paragraphs (a) and (b). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 16.

Minnesota Statutes 2004, section 62S.25, subdivision 6, is amended to read:

Subd. 6.

Claims denied.

Each insurer shall report annually by June 30 the number of claims denied new text begin for any reason new text end during the reporting period for each class of business, expressed as a percentage of claims denied, other than claims denied for failure to meet the waiting period or because of any applicable preexisting condition. new text begin For purposes of this subdivision, "claim" means a request for payment of benefits under an in-force policy regardless of whether the benefit claimed is covered under the policy or any terms or conditions of the policy have been met. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 17.

Minnesota Statutes 2004, section 62S.25, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Reports. new text end

new text begin Reports under this section shall be done on a statewide basis and filed with the commissioner. They shall include, at a minimum, the information in the format contained in Appendix E (Claim Denial Reporting Form) and in Appendix G (Replacement and Lapse Reporting Form) of the Long-Term Care Model Regulation adopted by the National Association of Insurance Commissioners. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 18.

Minnesota Statutes 2004, section 62S.26, is amended to read:

62S.26 LOSS RATIO.

new text begin Subdivision 1. new text end

new text begin Minimum loss ratio. new text end

deleted text begin (a) deleted text end The minimum loss ratio must be at least 60 percent, calculated in a manner which provides for adequate reserving of the long-term care insurance risk. In evaluating the expected loss ratio, the commissioner shall give consideration to all relevant factors, including:

(1) statistical credibility of incurred claims experience and earned premiums;

(2) the period for which rates are computed to provide coverage;

(3) experienced and projected trends;

(4) concentration of experience within early policy duration;

(5) expected claim fluctuation;

(6) experience refunds, adjustments, or dividends;

(7) renewability features;

(8) all appropriate expense factors;

(9) interest;

(10) experimental nature of the coverage;

(11) policy reserves;

(12) mix of business by risk classification; and

(13) product features such as long elimination periods, high deductibles, and high maximum limits.

new text begin Subd. 2. new text end

new text begin Life insurance policies. new text end

new text begin Subdivision 1 shall not apply to life insurance policies that accelerate benefits for long-term care. A life insurance policy that funds long-term care benefits entirely by accelerating the death benefit is considered to provide reasonable benefits in relation to premiums paid, if the policy complies with all of the following provisions: new text end

new text begin (1) the interest credited internally to determine cash value accumulations, including long-term care, if any, are guaranteed not to be less than the minimum guaranteed interest rate for cash value accumulations without long-term care set forth in the policy; new text end

new text begin (2) the portion of the policy that provides life insurance benefits meets the nonforfeiture requirements of section 61A.24; new text end

new text begin (3) the policy meets the disclosure requirements of sections 62S.09, 62S.10, and 62S.11; and new text end

new text begin (4) an actuarial memorandum is filed with the insurance department that includes: new text end

new text begin (i) a description of the basis on which the long-term care rates were determined; new text end

new text begin (ii) a description of the basis for the reserves; new text end

new text begin (iii) a summary of the type of policy, benefits, renewability, general marketing method, and limits on ages of issuance; new text end

new text begin (iv) a description and a table of each actuarial assumption used. For expenses, an insurer must include percentage of premium dollars per policy and dollars per unit of benefits, if any; new text end

new text begin (v) a description and a table of the anticipated policy reserves and additional reserves to be held in each future year for active lives; new text end

new text begin (vi) the estimated average annual premium per policy and the average issue age; new text end

new text begin (vii) a statement as to whether underwriting is performed at the time of application. The statement shall indicate whether underwriting is used and, if used, the statement shall include a description of the type or types of underwriting used, such as medical underwriting or functional assessment underwriting. Concerning a group policy, the statement shall indicate whether the enrollee or any dependent will be underwritten and when underwriting occurs; and new text end

new text begin (viii) a description of the effect of the long-term care policy provision on the required premiums, nonforfeiture values, and reserves on the underlying life insurance policy, both for active lives and those in long-term care claim status. new text end

new text begin Subd. 3. new text end

new text begin Nonapplication. new text end

deleted text begin (b) deleted text end This section does not apply to policies or certificates that are subject to sections 62S.021, 62S.081, and 62S.265, and that comply with those sections.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 19.

Minnesota Statutes 2004, section 62S.266, subdivision 2, is amended to read:

Subd. 2.

Requirement.

new text begin (a) new text end An insurer must offer each prospective policyholder a nonforfeiture benefit in compliance with the following requirements:

(1) a policy or certificate offered with nonforfeiture benefits must have coverage elements, eligibility, benefit triggers, and benefit length that are the same as coverage to be issued without nonforfeiture benefits. The nonforfeiture benefit included in the offer must be the benefit described in subdivision 5; and

(2) the offer must be in writing if the nonforfeiture benefit is not otherwise described in the outline of coverage or other materials given to the prospective policyholder.

new text begin (b) When a group long-term care insurance policy is issued, the offer required in paragraph (a) shall be made to the group policy holder. However, if the policy is issued as group long-term care insurance as defined in section 62S.01, subdivision 15, clause (4), other than to a continuing care retirement community or other similar entity, the offering shall be made to each proposed certificate holder. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 20.

Minnesota Statutes 2004, section 62S.29, subdivision 1, is amended to read:

Subdivision 1.

Requirements.

An insurer or other entity marketing long-term care insurance coverage in this state, directly or through its producers, shall:

(1) establish marketing procedures new text begin and agent training requirements new text end to assure that deleted text begin a deleted text end new text begin any marketing activities, including any new text end comparison of policies by its agents or other producers new text begin , new text end are fair and accurate;

(2) establish marketing procedures to assure excessive insurance is not sold or issued;

(3) display prominently by type, stamp, or other appropriate means, on the first page of the outline of coverage and policy, the following:

"Notice to buyer: This policy may not cover all of the costs associated with long-term care incurred by the buyer during the period of coverage. The buyer is advised to review carefully all policy limitations.";

(4) new text begin provide copies of the disclosure forms required in section 62S.081, subdivision 4, to the applicant; new text end

new text begin (5) new text end inquire and otherwise make every reasonable effort to identify whether a prospective applicant or enrollee for long-term care insurance already has long-term care insurance and the types and amounts of the insurance;

deleted text begin (5) deleted text end new text begin (6) new text end establish auditable procedures for verifying compliance with this subdivision; deleted text begin and deleted text end

deleted text begin (6) deleted text end new text begin (7) new text end if applicable, provide written notice to the prospective policyholder and certificate holder, at solicitation, that a senior insurance counseling program approved by the commissioner is available and the name, address, and telephone number of the program new text begin ; new text end

new text begin (8) use the terms "noncancelable" or "level premium" only when the policy or certificate conforms to section 62S.14; and new text end

new text begin (9) provide an explanation of contingent benefit upon lapse provided for in section 62S.266 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006. new text end

Sec. 21.

Minnesota Statutes 2004, section 62S.30, is amended to read:

62S.30 deleted text begin APPROPRIATENESS OF RECOMMENDED PURCHASE deleted text end new text begin SUITABILITY new text end .

deleted text begin In recommending the purchase or replacement of a long-term care insurance policy or certificate, an agent shall comply with section 60K.46, subdivision 4. deleted text end

new text begin Subdivision 1. new text end

new text begin Standards. new text end

new text begin Every insurer or other entity marketing long-term care insurance shall: new text end

new text begin (1) develop and use suitability standards to determine whether the purchase or replacement of long-term care insurance is appropriate for the needs of the applicant; new text end

new text begin (2) train its agents in the use of its suitability standards; and new text end

new text begin (3) maintain a copy of its suitability standards and make them available for inspection upon request by the commissioner. new text end

new text begin Subd. 2. new text end

new text begin Procedures. new text end

new text begin (a) To determine whether the applicant meets the standards developed by the insurer or other entity marketing long-term care insurance, the agent and insurer or other entity marketing long-term care insurance shall develop procedures that take the following into consideration: new text end

new text begin (1) the ability to pay for the proposed coverage and other pertinent financial information related to the purchase of the coverage; new text end

new text begin (2) the applicant's goals or needs with respect to long-term care and the advantages and disadvantages of insurance to meet those goals or needs; and new text end

new text begin (3) the values, benefits, and costs of the applicant's existing insurance, if any, when compared to the values, benefits, and costs of the recommended purchase or replacement. new text end

new text begin