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

CHAPTER 1--H.F.No. 1

An act

relating to the state budget; balancing proposed general fund spending and anticipated general fund revenue; modifying certain payment schedules to improve cash flow; making reductions in appropriations for E-12 education, higher education, environment and natural resources, energy and commerce, agriculture, economic development, transportation, public safety, state government, human services, and health; modifying calculation of state tax aids and credits; providing for deposit of certain receipts in the special revenue fund rather than the general fund; making changes to health and human services policy provisions including state health care programs, continuing care, children and family services, health care reform, Department of Health, public health, health plans; increasing fees; requiring reports; making supplemental and contingent appropriations and reductions for the Departments of Health and Human Services and other health-related boards and councils;

amending Minnesota Statutes 2008, sections 3.9741, subdivision 2; 8.15, subdivision 3; 13.03, subdivision 10; 13.3806, subdivision 13; 16C.23, subdivision 6; 62D.08, by adding a subdivision; 62J.692, subdivision 4; 62Q.19, subdivision 1; 103B.101, subdivision 9; 103I.681, subdivision 11; 116J.551, subdivision 1; 123B.75, subdivisions 5, 9, by adding a subdivision; 126C.48, subdivision 7; 127A.441; 127A.45, subdivisions 2, 3, 13, by adding a subdivision; 127A.46; 144.05, by adding a subdivision; 144.226, subdivision 3; 144.293, subdivision 4; 144.603; 144.605, subdivisions 2, 3, by adding a subdivision; 144.608, subdivision 1; 144.651, subdivision 2; 144.9504, by adding a subdivision; 144A.51, subdivision 5; 144D.03, subdivision 2; 144D.04, subdivision 2; 144E.37; 144G.06; 152.126, as amended; 190.32; 214.40, subdivision 7; 246.18, by adding a subdivision; 254B.01, subdivision 2; 254B.02, subdivisions 1, 5; 254B.03, subdivision 4, by adding a subdivision; 254B.05, subdivision 4; 254B.06, subdivision 2; 254B.09, subdivision 8; 256.01, by adding a subdivision; 256B.04, subdivision 14a; 256B.055, by adding a subdivision; 256B.056, subdivisions 3, 4; 256B.057, subdivision 9; 256B.0625, subdivisions 8, 8a, 8b, 18a, 22, 31, by adding subdivisions; 256B.0631, subdivisions 1, 3; 256B.0644, as amended; 256B.0915, by adding a subdivision; 256B.19, subdivision 1c; 256B.69, subdivision 27, by adding a subdivision; 256B.692, subdivision 1; 256B.76, subdivisions 2, 4; 256D.03, subdivision 3b; 256D.031, subdivision 5, as added; 256D.0515; 256I.05, by adding a subdivision; 256J.24, subdivision 6; 256L.07, by adding a subdivision; 256L.11, subdivision 6; 256L.12, subdivisions 5, 9; 256L.15, subdivision 1; 257.69, subdivision 2; 260C.331, subdivision 6; 273.1384, subdivision 6, as added; 276.112; 289A.60, by adding a subdivision; 299C.48; 299E.02; 446A.086, subdivision 2, as amended; 469.177, subdivision 11; 517.08, subdivision 1c, as amended; 518.165, subdivision 3; 609.3241; 611.20, subdivision 3; Minnesota Statutes 2009 Supplement, sections 123B.54; 137.025, subdivision 1; 157.16, subdivision 3; 252.27, subdivision 2a; 256.969, subdivisions 2b, 3a; 256.975, subdivision 7; 256B.0625, subdivision 13h; 256B.0659, subdivision 11; 256B.0911, subdivision 1a; 256B.441, subdivision 55; 256B.69, subdivisions 5a, 23; 256B.76, subdivision 1; 256B.766; 256D.03, subdivision 3, as amended; 256J.425, subdivision 3; 256J.621; 256L.03, subdivision 5; 270.97; 289A.20, subdivision 4; 327.15, subdivision 3; 517.08, subdivision 1b; Laws 1994, chapter 531, section 1; Laws 2005, First Special Session chapter 4, article 8, section 66, as amended; Laws 2009, chapter 79, article 3, section 18; article 5, sections 17; 18; 22; 75, subdivision 1; 78, subdivision 5; article 8, sections 4; 51; 84; article 13, sections 3, subdivisions 1, as amended, 3, as amended, 4, as amended, 8, as amended; 4, subdivision 4, as amended; 5, subdivision 8, as amended; Laws 2009, chapter 96, article 1, section 24, subdivisions 2, 4, 5, 6, 7; article 2, section 67, subdivisions 2, 3, 4, 7, 9; article 3, section 21, subdivisions 2, 4, 5; article 4, section 12, subdivisions 2, 3, 4, 6; article 5, section 13, subdivisions 4, 6, 7, 9; article 6, section 11, subdivisions 2, 3, 4, 6, 7, 8, 9, 12; article 7, section 3, subdivision 2; Laws 2009, chapter 173, article 1, section 17; Laws 2010, chapter 200, article 1, sections 12, subdivisions 6, 7, 8; 16; 21; article 2, section 2, subdivisions 1, 4, 5, 8; Laws 2010, chapter 215, article 3, section 3, subdivision 6; article 13, section 6; proposing coding for new law in Minnesota Statutes, chapters 62D; 62E; 62Q; 137; 144; 144D; 246; 254B; 256; 256B; 477A; repealing Minnesota Statutes 2008, sections 144.607; 254B.02, subdivisions 2, 3, 4; 254B.09, subdivisions 4, 5, 7; 256D.03, subdivisions 3, 3a, 5, 6, 7, 8; Laws 2009, chapter 79, article 7, section 26, subdivision 3; Laws 2010, chapter 200, article 1, sections 12, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 18; 19.

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

ARTICLE 1

SUMMARY

Section 1.

new text begin GENERAL FUND SUMMARY. new text end

new text begin The amounts shown in this section summarize general fund direct and open appropriations, and transfers into the general fund from other funds, made in articles 2 to 15, after forecast adjustments and after voiding certain allotment reductions. new text end

new text begin 2010 new text end new text begin 2011 new text end new text begin Total new text end
new text begin E-12 Education new text end new text begin $ new text end new text begin (1,069,361,000) new text end new text begin $ new text end new text begin (893,834,000) new text end new text begin $ new text end new text begin (1,963,195,000) new text end
new text begin Higher Education new text end new text begin (77,000) new text end new text begin (100,077,000) new text end new text begin (100,154,000) new text end
new text begin Environment and Natural Resources new text end new text begin (1,571,000) new text end new text begin (1,564,000) new text end new text begin (3,135,000) new text end
new text begin Energy new text end new text begin (247,000) new text end new text begin (247,000) new text end new text begin (494,000) new text end
new text begin Agriculture new text end new text begin (493,000) new text end new text begin (492,000) new text end new text begin (985,000) new text end
new text begin Economic Development new text end new text begin (489,000) new text end new text begin (745,000) new text end new text begin (1,234,000) new text end
new text begin Transportation new text end new text begin (1,649,000) new text end new text begin (11,649,000) new text end new text begin (13,298,000) new text end
new text begin Public Safety new text end new text begin (79,000) new text end new text begin (79,000) new text end new text begin (158,000) new text end
new text begin State Government new text end new text begin (1,694,000) new text end new text begin (1,820,000) new text end new text begin (3,514,000) new text end
new text begin Health and Human Services new text end new text begin (74,704,000) new text end new text begin (83,154,000) new text end new text begin (157,858,000) new text end
new text begin Tax Aids and Credits new text end new text begin (103,986,000) new text end new text begin (260,495,000) new text end new text begin (364,481,000) new text end
new text begin Subtotal of Appropriations new text end new text begin (1,254,530,000) new text end new text begin (1,354,156,000) new text end new text begin (2,608,686,000) new text end
new text begin Transfers In new text end new text begin 40,418,000 new text end new text begin 40,000,000 new text end new text begin 80,418,000 new text end
new text begin Total new text end new text begin $ new text end new text begin (1,294,948,000) new text end new text begin $ new text end new text begin (1,394,156,000) new text end new text begin $ new text end new text begin (2,689,104,000) new text end

Sec. 2.

new text begin ALLOTMENT REDUCTIONS VOID. new text end

new text begin The allotment reductions made by the commissioner of management and budget from July 1, 2009, to the effective date of this section are void. 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 2

CASH FLOW

Section 1.

Minnesota Statutes 2008, section 127A.46, is amended to read:

127A.46 CHANGE IN PAYMENT OF AIDS AND CREDITS.

If the commissioner of management and budget determines that modifications in the payment schedule would reduce the need for state short-term borrowing, the commissioner deleted text begin shalldeleted text end new text begin maynew text end modify payments to districts according to this section. The modifications must begin no sooner than September 1 of each fiscal year, and must remain in effect until no later than May 30 of that same fiscal year. In calculating the payment to a district pursuant to section 127A.45, subdivision 3, the commissioner may subtract the sum specified in that subdivision, plus an additional amount no greater than the following:

(1) the net cash balance in each of the district's operating funds on June 30 of the preceding fiscal year; minus

(2) the product of deleted text begin $150deleted text end new text begin $700new text end times the number of resident pupil units in the preceding fiscal year; minus

(3) the amount of payments made by the county treasurer during the preceding fiscal year, pursuant to section 276.11, which is considered revenue for the current school year. However, no additional amount shall be subtracted if the total of the net unappropriated fund balances in the district's four operating funds on June 30 of the preceding fiscal year, is less than the product of deleted text begin $350deleted text end new text begin $700new text end times the number of resident pupil units in the preceding fiscal year. The net cash balance must include all cash and investments, less certificates of indebtedness outstanding, and orders not paid for want of funds.

A district may appeal the payment schedule established by this section according to the procedures established in section 127A.45, subdivision 4.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 137.025, subdivision 1, is amended to read:

Subdivision 1.

Monthly payments.

The commissioner of management and budget shall pay 1/12 of the annual appropriation to the University of Minnesota deleted text begin ondeleted text end new text begin by new text end the deleted text begin 21stdeleted text end new text begin 25thnew text end day of each month. If the deleted text begin 21stdeleted text end new text begin 25thnew text end day of the month falls on a Saturday or Sunday, the monthly payment must be made deleted text begin ondeleted text end new text begin bynew text end the first business day immediately following the deleted text begin 21stdeleted text end new text begin 25thnew text end day of the month.

Sec. 3.

Minnesota Statutes 2008, section 276.112, is amended to read:

276.112 STATE PROPERTY TAXES; COUNTY TREASURER.

On deleted text begin or before January 25 each year, for the period ending December 31 of the prior year, and on or before June 28 each year, for the period ending on the most recent settlement day determined in section 276.09, and on or before December 2 each year, for the period ending November 20deleted text end new text begin the estimated payment and settlement dates provided in this chapter for the settlement of taxes levied by school districtsnew text end , the county treasurer must make full settlement with the county auditor deleted text begin according to sections 276.09, 276.10, and 276.111deleted text end for all receipts of state property taxes levied under section 275.025, and must transmit those receipts to the commissioner of revenue by electronic meansnew text begin on the dates and according to the provisions applicable to distributions to school districtsnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions beginning October 1, 2010, and thereafter. new text end

Sec. 4.

Minnesota Statutes 2009 Supplement, section 289A.20, subdivision 4, is amended to read:

Subd. 4.

Sales and use tax.

(a) The taxes imposed by chapter 297A are due and payable to the commissioner monthly on or before the 20th day of the month following the month in which the taxable event occurred, or following another reporting period as the commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f) or (g), except thatnew text begin :new text end

new text begin (1) new text end use taxes due on an annual use tax return as provided under section 289A.11, subdivision 1, are payable by April 15 following the close of the calendar yeardeleted text begin .deleted text end new text begin ; andnew text end

new text begin (2) except as provided in paragraph (f), for a vendor having a liability of $120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the commissioner monthly in the following manner: new text end

new text begin (i) On or before the 14th day of the month following the month in which the taxable event occurred, the vendor must remit to the commissioner 90 percent of the estimated liability for the month in which the taxable event occurred. new text end

new text begin (ii) On or before the 20th day of the month in which the taxable event occurs, the vendor must remit to the commissioner a prepayment for the month in which the taxable event occurs equal to 67 percent of the liability for the previous month. new text end

new text begin (iii) On or before the 20th day of the month following the month in which the taxable event occurred, the vendor must pay any additional amount of tax not previously remitted under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than the vendor's liability for the month in which the taxable event occurred, the vendor may take a credit against the next month's liability in a manner prescribed by the commissioner. new text end

new text begin (iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to continue to make payments in the same manner, as long as the vendor continues having a liability of $120,000 or more during the most recent fiscal year ending June 30. new text end

new text begin (v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required payment in the first month that the vendor is required to make a payment under either item (i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make subsequent monthly payments in the manner provided in item (ii). new text end

new text begin (vi) For vendors making an accelerated payment under item (ii), for the first month that the vendor is required to make the accelerated payment, on the 20th of that month, the vendor will pay 100 percent of the liability for the previous month and a prepayment for the first month equal to 67 percent of the liability for the previous month. new text end

(b)new text begin Notwithstanding paragraph (a),new text end a vendor having a liability of $120,000 or more during a fiscal year ending June 30 must remit the June liability for the next year in the following manner:

(1) Two business days before June 30 of the year, the vendor must remit 90 percent of the estimated June liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount of tax not remitted in June.

(c) A vendor having a liability of:

deleted text begin (1) $20,000 or more in the fiscal year ending June 30, 2005; or deleted text end

deleted text begin (2)deleted text end new text begin (1)new text end $10,000 or more deleted text begin in thedeleted text end new text begin , but less than $120,000 during anew text end fiscal year ending June 30, deleted text begin 2006deleted text end new text begin 2009new text end , and fiscal years thereafter, must remit new text begin by electronic means new text end all liabilities on returns due for periods beginning in the subsequent calendar year deleted text begin by electronic meansdeleted text end on or before the 20th day of the month following the month in which the taxable event occurred, or on or before the 20th day of the month following the month in which the sale is reported under section 289A.18, subdivision 4deleted text begin , except for 90 percent of the estimated June liability, which is due two business days before June 30. The remaining amount of the June liability is due on August 20.deleted text end new text begin ; ornew text end

new text begin (2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years thereafter, must remit by electronic means all liabilities in the manner provided in paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar year, except for 90 percent of the estimated June liability, which is due two business days before June 30. The remaining amount of the June liability is due on August 20. new text end

(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious beliefs from paying electronically shall be allowed to remit the payment by mail. The filer must notify the commissioner of revenue of the intent to pay by mail before doing so on a form prescribed by the commissioner. No extra fee may be charged to a person making payment by mail under this paragraph. The payment must be postmarked at least two business days before the due date for making the payment in order to be considered paid on a timely basis.

new text begin (e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and paid with the chapter 297A taxes, then the payment of all the liabilities on the return must be accelerated as provided in this subdivision. new text end

new text begin (f) At the start of the first calendar quarter at least 90 days after the cash flow account established in section 16A.152, subdivision 1, and the budget reserve account established in section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required under paragraph (a), clause (2), must be suspended. The commissioner of management and budget shall notify the commissioner of revenue when the accounts have reached the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day of the month following the month in which the taxable event occurred. Payments of tax liabilities for taxable events occurring in June under paragraph (b) are not changed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes due and payable after September 1, 2010. new text end

Sec. 5.

Minnesota Statutes 2008, section 289A.60, is amended by adding a subdivision to read:

new text begin Subd. 31. new text end

new text begin Accelerated payment of monthly sales tax liability; penalty for underpayment. new text end

new text begin For payments made after September 1, 2010, if a vendor is required by section 289A.20, subdivision 4, paragraph (a), clause (2), item (i) or (ii), to make accelerated payments, then the penalty for underpayment is as follows: new text end

new text begin (a) For those vendors that must remit a 90 percent payment by the 14th day of the month following the month in which the taxable event occurred, as an estimation of monthly sales tax liabilities, including the liability of any fee or other tax that is to be reported on the same return as and paid with the chapter 297A taxes, for the month in which the taxable event occurred, the vendor shall pay a penalty equal to ten percent of the amount of liability that was required to be paid by the 14th day of the month, less the amount remitted by the 14th day of the month. The penalty must not be imposed, however, if the amount remitted by the 14th day of the month equals the least of: (1) 90 percent of the liability for the month preceding the month in which the taxable event occurred; (2) 90 percent of the liability for the same month in the previous calendar year as the month in which the taxable event occurred; or (3) 90 percent of the average monthly liability for the previous calendar year. new text end

new text begin (b) For those vendors that, on or before the 20th day of the month in which the taxable event occurs, must remit to the commissioner a prepayment of sales tax liabilities for the month in which the taxable event occurs equal to 67 percent of the liabilities for the previous month, including the liability of any fee or other tax that is to be reported on the same return as and paid with the chapter 297A taxes, for the month in which the taxable event occurred, the vendor shall pay a penalty equal to ten percent of the amount of liability that was required to be paid by the 20th of the month, less the amount remitted by the 20th of the month. The penalty must not be imposed, however, if the amount remitted by the 20th of the month equals the lesser of 67 percent of the liability for the month preceding the month in which the taxable event occurred or 67 percent of the liability of the same month in the previous calendar year as the month in which the taxable event occurred. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes due and payable after September 1, 2010. new text end

ARTICLE 3

E-12 EDUCATION

Section 1.

Minnesota Statutes 2008, section 123B.75, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "school district tax settlement revenue" means the current, delinquent, and manufactured home property tax receipts collected by the county and distributed to the school district. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009. new text end

Sec. 2.

Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:

Subd. 5.

Levy recognition.

(a) deleted text begin "School district tax settlement revenue" means the current, delinquent, and manufactured home property tax receipts collected by the county and distributed to the school district.deleted text end

deleted text begin (b)deleted text end For fiscal deleted text begin year 2004 and laterdeleted text end yearsnew text begin 2009 and 2010new text end , in June of each year, the school district must recognize as revenue, in the fund for which the levy was made, the lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in that calendar year, plus general education aid according to section 126C.13, subdivision 4, received in July and August of that calendar year; or

(2) the sum of:

(i) 31 percent of the referendum levy certified according to section 126C.17, in calendar year 2000; and

(ii) the entire amount of the levy certified in the prior calendar year according to section 124D.86, subdivision 4, for school districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2new text begin , paragraph (a)new text end , and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 6new text begin ; plusnew text end

new text begin (iii) zero percent of the amount of the levy certified in the prior calendar year for the school district's general and community service funds, plus or minus auditor's adjustments, not including the levy portions that are assumed by the state, that remains after subtracting the referendum levy certified according to section 126C.17 and the amount recognized according to item (ii)new text end .

new text begin (b) For fiscal year 2011 and later years, in June of each year, the school district must recognize as revenue, in the fund for which the levy was made, the lesser of: new text end

new text begin (1) the sum of May, June, and July school district tax settlement revenue received in that calendar year, plus general education aid according to section 126C.13, subdivision 4, received in July and August of that calendar year; or new text end

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

new text begin (i) the greater of 48.6 percent of the referendum levy certified according to section 126C.17 in the prior calendar year, or 31 percent of the referendum levy certified according to section 126C.17 in calendar year 2000; plus new text end

new text begin (ii) the entire amount of the levy certified in the prior calendar year according to section 124D.86, subdivision 4, for school districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph (a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 6; plus new text end

new text begin (iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the school district's general and community service funds, plus or minus auditor's adjustments, not including the levy portions that are assumed by the state, that remains after subtracting the referendum levy certified according to section 126C.17 and the amount recognized according to item (ii). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009. new text end

Sec. 3.

Minnesota Statutes 2008, section 123B.75, subdivision 9, is amended to read:

Subd. 9.

Commissioner shall specify fiscal year.

The commissioner shall specify the fiscal year or years to which the revenue from any aid or tax levy is applicable if Minnesota Statutes do not so specify.new text begin The commissioner must report to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over education finance by January 15 of each year any adjustments under this subdivision in the previous year.new text end

Sec. 4.

Minnesota Statutes 2008, section 126C.48, subdivision 7, is amended to read:

Subd. 7.

Reporting.

For each tax settlement, the county auditor shall report to each school district by fund, the district tax settlement revenue defined in section 123B.75, subdivision deleted text begin 5deleted text end deleted text begin , paragraph (a)deleted text end new text begin 1anew text end , on the form specified in section 276.10. The county auditor shall send to the district a copy of the spread levy report specified in section 275.124.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009. new text end

Sec. 5.

Minnesota Statutes 2008, section 127A.441, is amended to read:

127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.

Each year, the state aids payable to any school district for that fiscal year that are recognized as revenue in the school district's general and community service funds shall be adjusted by an amount equal to (1) the amount the district recognized as revenue for the prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph new text begin (a) or new text end (b), minus (2) the amount the district recognized as revenue for the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph new text begin (a) or new text end (b). For purposes of making the aid adjustments under this section, the amount the district recognizes as revenue for either the prior fiscal year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b), shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not be adjusted pursuant to this section. The school district shall be notified of the amount of the adjustment made to each payment pursuant to this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009. new text end

Sec. 6.

Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) deleted text begin The termdeleted text end "Other district receipts" means payments by county treasurers pursuant to section 276.10, apportionments from the school endowment fund pursuant to section 127A.33, apportionments by the county auditor pursuant to section 127A.34, subdivision 2, and payments to school districts by the commissioner of revenue pursuant to chapter 298.

(b) deleted text begin The termdeleted text end "Cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) deleted text begin The termdeleted text end "Payment date" means the date on which state payments to districts are made by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday, or a weekday which is a legal holiday, the payment shall be made on the immediately preceding business day. The commissioner may make payments on dates other than those listed in subdivision 3, but only for portions of payments from any preceding payment dates which could not be processed by the electronic funds transfer method due to documented extenuating circumstances.

(d) The current year aid payment percentage equals deleted text begin 90deleted text end new text begin 73 in fiscal year 2010, 70 in fiscal year 2011, and 90 in fiscal years 2012 and laternew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2009. new text end

Sec. 7.

Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:

Subd. 3.

Payment dates and percentages.

(a) deleted text begin For fiscal year 2004 and later,deleted text end The commissioner shall pay to a district on the dates indicated an amount computed as follows: the cumulative amount guaranteed minus the sum of deleted text begin (a)deleted text end new text begin (1) new text end the district's other district receipts through the current payment, and deleted text begin (b)deleted text end new text begin (2) new text end the aid and credit payments through the immediately preceding payment. For purposes of this computation, the payment dates and the cumulative disbursement percentages are as follows:

Payment date Percentage
Payment 1 July 15: 5.5
Payment 2 July 30: 8.0
Payment 3 August 15: 17.5
Payment 4 August 30: 20.0
Payment 5 September 15: 22.5
Payment 6 September 30: 25.0
Payment 7 October 15: 27.0
Payment 8 October 30: 30.0
Payment 9 November 15: 32.5
Payment 10 November 30: 36.5
Payment 11 December 15: 42.0
Payment 12 December 30: 45.0
Payment 13 January 15: 50.0
Payment 14 January 30: 54.0
Payment 15 February 15: 58.0
Payment 16 February 28: 63.0
Payment 17 March 15: 68.0
Payment 18 March 30: 74.0
Payment 19 April 15: 78.0
Payment 20 April 30: 85.0
Payment 21 May 15: 90.0
Payment 22 May 30: 95.0
Payment 23 June 20: 100.0

deleted text begin (b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the commissioner shall pay to a district on the dates indicated an amount computed as follows: deleted text end

deleted text begin Payment 3 deleted text end deleted text begin August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392 deleted text end
deleted text begin Payment 4 deleted text end deleted text begin August 30: one-third of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits deleted text end
deleted text begin Payment 6 deleted text end deleted text begin September 30: one-third of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits deleted text end
deleted text begin Payment 8 deleted text end deleted text begin October 30: one-third of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end In addition to the amounts paid under paragraph (a), deleted text begin for fiscal year 2005 and later,deleted text end the commissioner shall pay to a district on the dates indicated an amount computed as follows:

Payment 3 August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
Payment 4 August 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
Payment 6 September 30: 40 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
Payment 8 October 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and applies to fiscal years 2010 and later. new text end

Sec. 8.

Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision to read:

new text begin Subd. 7b. new text end

new text begin Advance final payment. new text end

new text begin (a) Notwithstanding subdivisions 3 and 7, if the current year aid payment percentage, under subdivision 2, is less than 90, then a school district or charter school exceeding its expenditure limitations under section 123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment for the current fiscal year on June 20, if requested by the district or charter school. The amount paid under this subdivision must not exceed the lesser of: new text end

new text begin (1) the difference between 90 percent and the current year payment percentage in subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or charter school's general education aid plus the aid adjustment in section 127A.50 for the current fiscal year; or new text end

new text begin (2) the amount by which the district's or charter school's net negative unreserved general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the district or charter school's expenditures for that fiscal year. new text end

new text begin (b) The state total advance final payment under this subdivision for any year must not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final payment for each eligible district must be reduced proportionately. 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 fiscal years 2010 and later. new text end

Sec. 9.

Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:

Subd. 13.

Aid payment percentage.

Except as provided in subdivisions 11, 12, 12a, and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392, shall be paid at the current year aid payment percentage of the estimated entitlement during the fiscal year of the entitlement. deleted text begin For the purposes of this subdivision, a district's estimated entitlement for special education excess cost aid under section 125A.79 for fiscal year 2005 equals 70 percent of the district's entitlement for the second prior fiscal year.deleted text end For the purposes of this subdivision, a district's estimated entitlement for special education excess cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the district's entitlement for the current fiscal year. The final adjustment payment, according to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual data, minus the payments made during the fiscal year of the entitlement.

Sec. 10.

Laws 2009, chapter 96, article 1, section 24, 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 5,195,504,000 deleted text end new text begin 4,291,422,000 new text end ..... 2010
$ deleted text begin 5,626,994,000 deleted text end new text begin 4,776,884,000 new text end ..... 2011

The 2010 appropriation includes deleted text begin $555,864,000deleted text end new text begin $553,591,000new text end for 2009 and deleted text begin $4,639,640,000deleted text end new text begin $3,737,831,000new text end for 2010.

The 2011 appropriation includes deleted text begin $500,976,000deleted text end new text begin $1,363,306,000 new text end for 2010 and deleted text begin $5,126,018,000deleted text end new text begin $3,413,578,000 new text end for 2011.

Sec. 11.

Laws 2009, chapter 96, article 6, section 11, subdivision 6, is amended to read:

Subd. 6.

Educate parents partnership.

For the educate parents partnership under Minnesota Statutes, section 124D.129:

$ deleted text begin 50,000 deleted text end new text begin 49,000 new text end ..... 2010
$ deleted text begin 50,000 deleted text end new text begin 49,000 new text end ..... 2011

Any balance in the first year does not cancel but is available in the second year.

Sec. 12.

Laws 2009, chapter 96, article 6, section 11, subdivision 7, is amended to read:

Subd. 7.

Kindergarten entrance assessment initiative and intervention program.

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

$ deleted text begin 287,000 deleted text end new text begin 281,000 new text end ..... 2010
$ deleted text begin 287,000 deleted text end new text begin 281,000 new text end ..... 2011

Any balance in the first year does not cancel but is available in the second year.

Sec. 13.

Laws 2009, chapter 96, article 7, section 3, subdivision 2, is amended to read:

Subd. 2.

Department.

(a) For the Department of Education:

$ deleted text begin 20,943,000 deleted text end
new text begin 20,147,600 new text end
..... 2010
$ deleted text begin 20,943,000 deleted text end
new text begin 19,811,000 new text end
..... 2011

Any balance in the first year does not cancel but is available in the second year.

(b) $260,000 each year is for the Minnesota Children's Museum.

(c) $41,000 each year is for the Minnesota Academy of Science.

(d) deleted text begin $632,000deleted text end new text begin $618,000new text end each year is for the Board of Teaching. Any balance in the first year does not cancel but is available in the second year.

(e) deleted text begin $171,000deleted text end new text begin $167,000new text end each year is for the Board of School Administrators. Any balance in the first year does not cancel but is available in the second year.

(f) deleted text begin $40,000 each yeardeleted text end new text begin $10,000 new text end is for an early hearing loss intervention coordinator under Minnesota Statutes, section 125A.63, subdivision 5. new text begin This appropriation is for fiscal year 2010 only. new text end If the department expends federal funds to employ a hearing loss coordinator under Minnesota Statutes, section 125A.63, subdivision 5, then the appropriation under this paragraph is reallocated for purposes of employing a world languages coordinator.

(g) $50,000 each year is for the Duluth Children's Museum.

(h) None of the amounts appropriated under this subdivision may be used for Minnesota's Washington, D.C., office.

(i) The expenditures of federal grants and aids as shown in the biennial budget document and its supplements are approved and appropriated and shall be spent as indicated. The commissioner must provide, to the K-12 Education Finance Division in the house of representatives and the E-12 Budget Division in the senate, details about the distribution of state incentive grants, education technology state grants, teacher incentive funds, and statewide data system funds as outlined in the supplemental federal funds submission dated March 25, 2009.

ARTICLE 4

E-12 EDUCATION FORECAST ADJUSTMENTS

Section 1.

Minnesota Statutes 2009 Supplement, section 123B.54, is amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $9,109,000 in fiscal year 2009, $7,948,000 in fiscal year 2010, $9,275,000 in fiscal year 2011, $9,574,000deleted text end new text begin $17,161,000new text end in fiscal year 2012, and deleted text begin $8,904,000deleted text end new text begin $19,175,000new text end in fiscal year 2013 and later are appropriated from the general fund to the commissioner of education for payment of debt service equalization aid under section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any money specifically appropriated for the same purpose in any year from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, and supersedes any contrary provision in 2010 H.F. No. 3329, regardless of its date of final enactment. new text end

Sec. 2.

Laws 2009, chapter 96, article 1, section 24, subdivision 4, is amended to read:

Subd. 4.

Abatement revenue.

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

$ deleted text begin 1,175,000 deleted text end new text begin 1,000,000 new text end ..... 2010
$ deleted text begin 1,034,000 deleted text end new text begin 1,132,000 new text end ..... 2011

The 2010 appropriation includes $140,000 for 2009 and deleted text begin $1,035,000deleted text end new text begin $860,000 new text end for 2010.

The 2011 appropriation includes deleted text begin $115,000deleted text end new text begin $317,000new text end for 2010 and deleted text begin $919,000deleted text end new text begin $815,000new text end for 2011.

Sec. 3.

Laws 2009, chapter 96, article 1, section 24, subdivision 5, is amended to read:

Subd. 5.

Consolidation transition.

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

$ deleted text begin 854,000 deleted text end new text begin 684,000 new text end ..... 2010
$ deleted text begin 927,000 deleted text end new text begin 576,000 new text end ..... 2011

The 2010 appropriation includes $0 for 2009 and deleted text begin $854,000deleted text end new text begin $684,000new text end for 2010.

The 2011 appropriation includes deleted text begin $94,000deleted text end new text begin $252,000new text end for 2010 and deleted text begin $833,000deleted text end new text begin $324,000new text end for 2011.

Sec. 4.

Laws 2009, chapter 96, article 1, section 24, subdivision 6, is amended to read:

Subd. 6.

Nonpublic pupil education aid.

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

$ deleted text begin 17,250,000 deleted text end new text begin 12,861,000 new text end ..... 2010
$ deleted text begin 17,889,000 deleted text end new text begin 16,157,000 new text end ..... 2011

The 2010 appropriation includes deleted text begin $1,647,000deleted text end new text begin $1,067,000new text end for 2009 and deleted text begin $15,603,000deleted text end new text begin $11,794,000new text end for 2010.

The 2011 appropriation includes deleted text begin $1,733,000deleted text end new text begin $4,362,000new text end for 2010 and deleted text begin $16,156,000deleted text end new text begin $11,795,000new text end for 2011.

Sec. 5.

Laws 2009, chapter 96, article 1, section 24, subdivision 7, is amended to read:

Subd. 7.

Nonpublic pupil transportation.

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

$ deleted text begin 22,159,000 deleted text end new text begin 17,297,000 new text end ..... 2010
$ deleted text begin 22,712,000 deleted text end new text begin 19,729,000 new text end ..... 2011

The 2010 appropriation includes $2,077,000 for 2009 and deleted text begin $20,082,000deleted text end new text begin $15,220,000 new text end for 2010.

The 2011 appropriation includes deleted text begin $2,231,000deleted text end new text begin $5,629,000 new text end for 2010 and deleted text begin $20,481,000deleted text end new text begin $14,100,000new text end for 2011.

Sec. 6.

Laws 2009, chapter 96, article 2, section 67, 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 40,453,000 deleted text end new text begin 34,833,000 new text end ..... 2010
$ deleted text begin 44,775,000 deleted text end new text begin 44,938,000 new text end ..... 2011

The 2010 appropriation includes $3,704,000 for 2009 and deleted text begin $36,749,000deleted text end new text begin $31,129,000new text end for 2010.

The 2011 appropriation includes deleted text begin $4,083,000deleted text end new text begin $11,513,000new text end for 2010 and deleted text begin $40,692,000deleted text end new text begin $33,425,000new text end for 2011.

Sec. 7.

Laws 2009, chapter 96, article 2, section 67, 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 1,488,000 deleted text end new text begin 1,218,000 new text end ..... 2010
$ deleted text begin 1,064,000 deleted text end new text begin 743,000 new text end ..... 2011

The 2010 appropriation includes $202,000 for 2009 and deleted text begin $1,286,000deleted text end new text begin $1,016,000new text end for 2010.

The 2011 appropriation includes deleted text begin $142,000deleted text end new text begin $375,000new text end for 2010 and deleted text begin $922,000deleted text end new text begin $368,000 new text end for 2011.

Sec. 8.

Laws 2009, chapter 96, article 2, section 67, subdivision 4, is amended to read:

Subd. 4.

Integration aid.

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

$ deleted text begin 65,358,000 deleted text end new text begin 50,812,000 new text end ..... 2010
$ deleted text begin 65,484,000 deleted text end new text begin 61,782,000 new text end ..... 2011

The 2010 appropriation includes deleted text begin $6,110,000deleted text end new text begin $5,832,000new text end for 2009 and deleted text begin $59,248,000deleted text end new text begin $44,980,000new text end for 2010.

The 2011 appropriation includes deleted text begin $6,583,000deleted text end new text begin $16,636,000new text end for 2010 and deleted text begin $58,901,000deleted text end new text begin $45,146,000new text end for 2011.

Sec. 9.

Laws 2009, chapter 96, article 2, section 67, 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 1,774,000 new text end ..... 2010
$ deleted text begin 2,137,000 deleted text end new text begin 2,072,000 new text end ..... 2011

The 2010 appropriation includes $213,000 for 2009 and deleted text begin $1,924,000deleted text end new text begin $1,561,000new text end for 2010.

The 2011 appropriation includes deleted text begin $213,000deleted text end new text begin $576,000new text end for 2010 and deleted text begin $1,924,000deleted text end new text begin $1,496,000new text end for 2011.

Sec. 10.

Laws 2009, chapter 96, article 2, section 67, subdivision 9, is amended to read:

Subd. 9.

Tribal contract schools.

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

$ deleted text begin 2,030,000 deleted text end new text begin 1,702,000 new text end ..... 2010
$ deleted text begin 2,211,000 deleted text end new text begin 2,119,000 new text end ..... 2011

The 2010 appropriation includes $191,000 for 2009 and deleted text begin $1,839,000deleted text end new text begin $1,511,000new text end for 2010.

The 2011 appropriation includes deleted text begin $204,000deleted text end new text begin $558,000new text end for 2010 and deleted text begin $2,007,000deleted text end new text begin $1,561,000new text end for 2011.

Sec. 11.

Laws 2009, chapter 96, article 3, section 21, subdivision 2, is amended to read:

Subd. 2.

Special education; regular.

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

$ deleted text begin 734,071,000 deleted text end new text begin 609,003,000 new text end ..... 2010
$ deleted text begin 781,497,000 deleted text end new text begin 749,248,000 new text end ..... 2011

The 2010 appropriation includes $71,947,000 for 2009 and deleted text begin $662,124,000deleted text end new text begin $537,056,000new text end for 2010.

The 2011 appropriation includes deleted text begin $73,569,000deleted text end new text begin $198,637,000new text end for 2010 and deleted text begin $707,928,000deleted text end new text begin $550,611,000new text end for 2011.

Sec. 12.

Laws 2009, chapter 96, article 3, section 21, subdivision 4, is amended to read:

Subd. 4.

Travel for home-based services.

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

$ deleted text begin 258,000 deleted text end new text begin 224,000 new text end ..... 2010
$ deleted text begin 282,000 deleted text end new text begin 282,000 new text end ..... 2011

The 2010 appropriation includes $24,000 for 2009 and deleted text begin $234,000deleted text end new text begin $200,000new text end for 2010.

The 2011 appropriation includes deleted text begin $26,000deleted text end new text begin $73,000new text end for 2010 and deleted text begin $256,000deleted text end new text begin $209,000new text end for 2011.

Sec. 13.

Laws 2009, chapter 96, article 3, section 21, 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 110,871,000 deleted text end new text begin 96,926,000 new text end ..... 2010
$ deleted text begin 110,877,000 deleted text end new text begin 108,410,000 new text end ..... 2011

The 2010 appropriation includes $37,046,000 for 2009 and deleted text begin $73,825,000deleted text end new text begin $59,880,000new text end for 2010.

The 2011 appropriation includes deleted text begin $37,022,000deleted text end new text begin $50,967,000new text end for 2010 and deleted text begin $73,855,000deleted text end new text begin $57,443,000 new text end for 2011.

Sec. 14.

Laws 2009, chapter 96, article 4, section 12, 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 161,000 deleted text end new text begin 132,000 new text end ..... 2010
$ deleted text begin 160,000 deleted text end new text begin 135,000 new text end ..... 2011

The 2010 appropriation includes $10,000 for 2009 and deleted text begin $151,000deleted text end new text begin $122,000new text end for 2010.

The 2011 appropriation includes deleted text begin $16,000deleted text end new text begin $44,000new text end for 2010 and deleted text begin $144,000deleted text end new text begin $91,000new text end for 2011.

Sec. 15.

Laws 2009, chapter 96, article 4, section 12, 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 7,948,000 deleted text end new text begin 6,608,000 new text end ..... 2010
$ deleted text begin 9,275,000 deleted text end new text begin 8,204,000 new text end ..... 2011

The 2010 appropriation includes $851,000 for 2009 and deleted text begin $7,097,000deleted text end new text begin $5,757,000new text end for 2010.

The 2011 appropriation includes deleted text begin $788,000deleted text end new text begin $2,128,000new text end for 2010 and deleted text begin $8,487,000deleted text end new text begin $6,076,000new text end for 2011.

Sec. 16.

Laws 2009, chapter 96, article 4, section 12, 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 16,008,000 new text end ..... 2010
$ deleted text begin 19,287,000 deleted text end new text begin 18,708,000 new text end ..... 2011

The 2010 appropriation includes $1,928,000 for 2009 and deleted text begin $17,359,000deleted text end new text begin $14,080,000new text end for 2010.

The 2011 appropriation includes deleted text begin $1,928,000deleted text end new text begin $5,207,000new text end for 2010 and deleted text begin $17,359,000deleted text end new text begin $13,501,000 new text end for 2011.

Sec. 17.

Laws 2009, chapter 96, article 4, section 12, subdivision 6, is amended to read:

Subd. 6.

Deferred maintenance aid.

For deferred maintenance aid, according to Minnesota Statutes, section 123B.591, subdivision 4:

$ deleted text begin 2,302,000 deleted text end new text begin 1,918,000 new text end ..... 2010
$ deleted text begin 2,073,000 deleted text end new text begin 2,146,000 new text end ..... 2011

The 2010 appropriation includes $260,000 for 2009 and deleted text begin $2,042,000deleted text end new text begin $1,658,000new text end for 2010.

The 2011 appropriation includes deleted text begin $226,000deleted text end new text begin $613,000new text end for 2010 and deleted text begin $1,847,000deleted text end new text begin $1,533,000new text end for 2011.

Sec. 18.

Laws 2009, chapter 96, article 5, section 13, subdivision 4, is amended to read:

Subd. 4.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes, section 124D.118:

$ deleted text begin 1,098,000 deleted text end new text begin 1,104,000 new text end ..... 2010
$ deleted text begin 1,120,000 deleted text end new text begin 1,126,000 new text end ..... 2011

Sec. 19.

Laws 2009, chapter 96, article 5, section 13, subdivision 6, is amended to read:

Subd. 6.

Basic system support.

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

$ deleted text begin 13,570,000 deleted text end new text begin 11,264,000 new text end ..... 2010
$ deleted text begin 13,570,000 deleted text end new text begin 13,162,000 new text end ..... 2011

The 2010 appropriation includes $1,357,000 for 2009 and deleted text begin $12,213,000deleted text end new text begin $9,907,000new text end for 2010.

The 2011 appropriation includes deleted text begin $1,357,000deleted text end new text begin $3,663,000new text end for 2010 and deleted text begin $12,213,000deleted text end new text begin $9,499,000new text end for 2011.

Sec. 20.

Laws 2009, chapter 96, article 5, section 13, subdivision 7, is amended to read:

Subd. 7.

Multicounty, multitype library systems.

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

$ deleted text begin 1,300,000 deleted text end new text begin 1,079,000 new text end ..... 2010
$ deleted text begin 1,300,000 deleted text end new text begin 1,261,000 new text end ..... 2011

The 2010 appropriation includes $130,000 for 2009 and deleted text begin $1,170,000deleted text end new text begin $949,000new text end for 2010.

The 2011 appropriation includes deleted text begin $130,000deleted text end new text begin $351,000new text end for 2010 and deleted text begin $1,170,000deleted text end new text begin $910,000new text end for 2011.

Sec. 21.

Laws 2009, chapter 96, article 5, section 13, subdivision 9, is amended to read:

Subd. 9.

Regional library telecommunications aid.

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

$ deleted text begin 2,300,000 deleted text end new text begin 1,909,000 new text end ..... 2010
$ deleted text begin 2,300,000 deleted text end new text begin 2,231,000 new text end ..... 2011

The 2010 appropriation includes $230,000 for 2009 and deleted text begin $2,070,000deleted text end new text begin $1,679,000new text end for 2010.

The 2011 appropriation includes deleted text begin $230,000deleted text end new text begin $621,000new text end for 2010 and deleted text begin $2,070,000deleted text end new text begin $1,610,000new text end for 2011.

Sec. 22.

Laws 2009, chapter 96, article 6, section 11, subdivision 2, is amended to read:

Subd. 2.

School readiness.

For revenue for school readiness programs under Minnesota Statutes, sections 124D.15 and 124D.16:

$ deleted text begin 10,095,000 deleted text end new text begin 8,379,000 new text end ..... 2010
$ deleted text begin 10,095,000 deleted text end new text begin 9,792,000 new text end ..... 2011

The 2010 appropriation includes $1,009,000 for 2009 and deleted text begin $9,086,000deleted text end new text begin $7,370,000new text end for 2010.

The 2011 appropriation includes deleted text begin $1,009,000deleted text end new text begin $2,725,000new text end for 2010 and deleted text begin $9,086,000deleted text end new text begin $7,067,000new text end for 2011.

Sec. 23.

Laws 2009, chapter 96, article 6, section 11, subdivision 3, is amended to read:

Subd. 3.

Early childhood family education aid.

For early childhood family education aid under Minnesota Statutes, section 124D.135:

$ deleted text begin 22,955,000 deleted text end new text begin 19,005,000 new text end ..... 2010
$ deleted text begin 22,547,000 deleted text end new text begin 21,460,000 new text end ..... 2011

The 2010 appropriation includes $3,020,000 for 2009 and deleted text begin $19,935,000deleted text end new text begin $15,985,000new text end for 2010.

The 2011 appropriation includes deleted text begin $2,214,000deleted text end new text begin $5,911,000new text end for 2010 and deleted text begin $20,333,000deleted text end new text begin $15,549,000new text end for 2011.

Sec. 24.

Laws 2009, chapter 96, article 6, section 11, subdivision 4, is amended to read:

Subd. 4.

Health and developmental screening aid.

For health and developmental screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

$ deleted text begin 3,694,000 deleted text end new text begin 2,922,000 new text end ..... 2010
$ deleted text begin 3,800,000 deleted text end new text begin 3,425,000 new text end ..... 2011

The 2010 appropriation includes $367,000 for 2009 and deleted text begin $3,327,000deleted text end new text begin $2,555,000new text end for 2010.

The 2011 appropriation includes deleted text begin $369,000deleted text end new text begin $945,000new text end for 2010 and deleted text begin $3,431,000deleted text end new text begin $2,480,000new text end for 2011.

Sec. 25.

Laws 2009, chapter 96, article 6, section 11, subdivision 8, is amended to read:

Subd. 8.

Community education aid.

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

$ deleted text begin 585,000 deleted text end new text begin 476,000 new text end ..... 2010
$ deleted text begin 467,000 deleted text end new text begin 473,000 new text end ..... 2011

The 2010 appropriation includes $73,000 for 2009 and deleted text begin $512,000deleted text end new text begin $403,000new text end for 2010.

The 2011 appropriation included deleted text begin $56,000deleted text end new text begin $148,000new text end for 2010 and deleted text begin $411,000deleted text end new text begin $325,000new text end for 2011.

Sec. 26.

Laws 2009, chapter 96, article 6, section 11, subdivision 9, is amended to read:

Subd. 9.

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 588,000 new text end ..... 2010
$ deleted text begin 710,000 deleted text end new text begin 688,000 new text end ..... 2011

The 2010 appropriation includes deleted text begin $71,000deleted text end new text begin $69,000new text end for 2009 and deleted text begin $639,000deleted text end new text begin $519,000new text end for 2010.

The 2011 appropriation includes deleted text begin $71,000deleted text end new text begin $191,000new text end for 2010 and deleted text begin $639,000deleted text end new text begin $497,000new text end for 2011.

Sec. 27.

Laws 2009, chapter 96, article 6, section 11, subdivision 12, is amended to read:

Subd. 12.

Adult basic education aid.

For adult basic education aid under Minnesota Statutes, section 124D.531:

$ deleted text begin 42,975,000 deleted text end new text begin 35,671,000 new text end ..... 2010
$ deleted text begin 44,258,000 deleted text end new text begin 42,732,000 new text end ..... 2011

The 2010 appropriation includes $4,187,000 for 2009 and deleted text begin $38,788,000deleted text end new text begin $31,484,000new text end for 2010.

The 2011 appropriation includes deleted text begin $4,309,000deleted text end new text begin $11,644,000new text end for 2010 and deleted text begin $39,949,000deleted text end new text begin $31,088,000new text end for 2011.

ARTICLE 5

HIGHER EDUCATION

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2010 new text end new text begin 2011 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 (77,000) new text end new text begin $ new text end new text begin (100,077,000) new text end new text begin $ new text end new text begin (100,154,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. 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 2009, chapter 95, article 1, 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 "2010" and "2011" 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, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, 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 2010 new text end new text begin 2011 new text end

Sec. 3.

new text begin MINNESOTA OFFICE OF HIGHER EDUCATION new text end

new text begin $ new text end new text begin (77,000) new text end new text begin $ new text end new text begin (77,000) new text end

new text begin This reduction is from the appropriation for agency administration. new text end

Sec. 4.

new text begin BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES 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 (50,000,000) new text end

new text begin $2,079,000 of the reduction in 2011 is from the central offices and shared services unit appropriation. None of these reductions may be charged back or allocated to the campuses. new text end

new text begin $47,921,000 of the reduction in 2011 is from the operations and maintenance appropriation. new text end

new text begin For fiscal years 2012 and 2013, the base for operations and maintenance is $580,802,000 each year. new text end

Sec. 5.

new text begin BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA 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 -0- new text end new text begin $ new text end new text begin (50,000,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Operations and Maintenance new text end

new text begin -0- new text end new text begin (44,606,000) new text end

new text begin For fiscal years 2012 and 2013, the base for operations and maintenance is $578,370,000 each year. new text end

new text begin Subd. 3. new text end

new text begin Special Appropriations new text end

new text begin (a) Agriculture and Extension Service new text end new text begin -0- new text end new text begin (3,858,000) new text end
new text begin (b) Health Sciences new text end new text begin -0- new text end new text begin (389,000) new text end

new text begin $26,000 of the 2011 reduction is from the St. Cloud family practice residency program. new text end

new text begin (c) Institute of Technology new text end new text begin -0- new text end new text begin (102,000) new text end
new text begin (d) System Special new text end new text begin -0- new text end new text begin (454,000) new text end
new text begin (e) University of Minnesota and Mayo Foundation Partnership new text end new text begin -0- new text end new text begin (591,000) new text end

ARTICLE 6

ENVIRONMENT AND NATURAL RESOURCES

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize changes to direct appropriations, by fund, made in this article. new text end

new text begin 2010 new text end new text begin 2011 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 (1,571,000) new text end new text begin $ new text end new text begin (1,564,000) new text end new text begin $ new text end new text begin (3,135,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. 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 2009, chapter 37, article 1, 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 "2010" and "2011" used in this article mean that the addition to or subtraction from the appropriation listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, 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 2010 new text end new text begin 2011 new text end

Sec. 3.

new text begin POLLUTION CONTROL AGENCY 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 (110,000) new text end new text begin $ new text end new text begin (99,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Water new text end

new text begin (98,000) new text end new text begin (38,000) new text end

new text begin The $98,000 reduction in fiscal year 2010 is from the agency's activities to develop minimal impact design standards for urban stormwater runoff. new text end

new text begin Subd. 3. new text end

new text begin Land new text end

new text begin -0- new text end new text begin (30,000) new text end

new text begin The $30,000 reduction in the second year is from the environmental health tracking and biomonitoring activities of the agency. new text end

new text begin Subd. 4. new text end

new text begin Environmental Assistance and Cross Media new text end

new text begin -0- new text end new text begin (16,000) new text end

new text begin Subd. 5. new text end

new text begin Administrative Support new text end

new text begin (12,000) new text end new text begin (15,000) new text end

Sec. 4.

new text begin NATURAL RESOURCES 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 (1,375,000) new text end new text begin $ new text end new text begin (1,379,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Lands and Minerals new text end

new text begin (30,000) new text end new text begin (30,000) new text end

new text begin Subd. 3. new text end

new text begin Water Resources Management new text end

new text begin (84,000) new text end new text begin (84,000) new text end

new text begin Subd. 4. new text end

new text begin Forest Management new text end

new text begin (188,000) new text end new text begin (188,000) new text end

new text begin $53,000 of the reduction each year is from activities supporting the Forest Resources Council with implementation of the Sustainable Forest Resources Act. new text end

new text begin Subd. 5. new text end

new text begin Parks and Trails Management new text end

new text begin (420,000) new text end new text begin (422,000) new text end

new text begin Subd. 6. new text end

new text begin Fish and Wildlife Management new text end

new text begin (265,000) new text end new text begin (265,000) new text end

new text begin $265,000 of the reduction each year is from activities for preserving, restoring, and enhancing grassland/wetland complexes on public or private land. new text end

new text begin Subd. 7. new text end

new text begin Ecological Services new text end

new text begin (46,000) new text end new text begin (47,000) new text end

new text begin Subd. 8. new text end

new text begin Enforcement new text end

new text begin (230,000) new text end new text begin (230,000) new text end

new text begin Subd. 9. new text end

new text begin Operations Support new text end

new text begin (112,000) new text end new text begin (113,000) new text end

Sec. 5.

new text begin METROPOLITAN COUNCIL new text end

new text begin $ new text end new text begin (86,000) new text end new text begin $ new text end new text begin (86,000) new text end

Sec. 6.

Laws 2010, chapter 215, article 3, section 3, subdivision 6, is amended to read:

Subd. 6.

Transfers In

(a) The amounts appropriated from the agency indirect costs account in the special revenue fund are reduced by $328,000 in fiscal year 2010 and $462,000 in fiscal year 2011, and those amounts must be transferred to the general fund by June 30, 2011. The appropriation reductions are onetime.

(b) The commissioner of management and budget shall transfer deleted text begin $8,000,000deleted text end new text begin $48,000,000new text end in fiscal year 2011 from the closed landfill investment fund in Minnesota Statutes, section 115B.421, to the general fund. The commissioner shall transfer deleted text begin $4,000,000deleted text end new text begin $12,000,000new text end on July 1deleted text begin , 2013, and $4,000,000 on July 1,deleted text end new text begin in each of the yearsnew text end 2014,new text begin 2015, 2016, and 2017new text end from the general fund to the closed landfill investment fund. For deleted text begin the July 1, 2014,deleted text end new text begin eachnew text end transfer to the closed landfill investment fund, the commissioner shall determine the total amount of interest and other earnings that would have accrued to the fund if the transfers to the general fund under this paragraph had not been made and add this amount to the transfer. The amounts necessary for these transfers are appropriated from the general fund in the fiscal years specified for the transfers.

ARTICLE 7

ENERGY

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2010 new text end new text begin 2011 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 (247,000) new text end new text begin $ new text end new text begin (247,000) new text end new text begin $ new text end new text begin (494,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. 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 2009, chapter 37, article 2, 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 "2010" and "2011" 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, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, 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 2010 new text end new text begin 2011 new text end

Sec. 3.

new text begin DEPARTMENT OF COMMERCE 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 (247,000) new text end new text begin $ new text end new text begin (247,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Administrative Services new text end

new text begin (97,000) new text end new text begin (97,000) new text end

new text begin Subd. 3. new text end

new text begin Market Assurance new text end

new text begin (150,000) new text end new text begin (150,000) new text end

ARTICLE 8

AGRICULTURE

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2010 new text end new text begin 2011 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 (493,000) new text end new text begin $ new text end new text begin (492,000) new text end new text begin $ new text end new text begin (985,000) new text end

Sec. 2.

new text begin AGRICULTURAL APPROPRIATIONS. 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 2009, chapter 94, article 1, 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 "2010" and "2011" used in this article mean that the addition to or subtraction from the appropriations listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, 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 2010 new text end new text begin 2011 new text end

Sec. 3.

new text begin DEPARTMENT OF AGRICULTURE 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 (493,000) new text end new text begin $ new text end new text begin (492,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Protection Services new text end

new text begin (228,000) new text end new text begin (228,000) new text end

new text begin $13,000 in fiscal year 2010 and $13,000 in fiscal year 2011 are reductions from plant pest surveys. new text end

new text begin Subd. 3. new text end

new text begin Agricultural Marketing and Development new text end

new text begin (127,000) new text end new text begin (127,000) new text end

new text begin $77,000 in fiscal year 2010 and $77,000 in fiscal year 2011 are reductions for integrated pest management activities. new text end

new text begin Subd. 4. new text end

new text begin Administration and Financial Assistance new text end

new text begin (138,000) new text end new text begin (137,000) new text end

new text begin $69,000 in fiscal year 2010 and $69,000 in fiscal year 2011 are reductions from the dairy and profitability enhancement and dairy business planning grant programs established under Laws 1997, chapter 216, section 7, subdivision 2, and Laws 2001, First Special Session chapter 2, section 9, subdivision 2. new text end

new text begin $1,000 in fiscal year 2010 is a reduction from the appropriation for the administration of the Feeding Minnesota Task Force. new text end

ARTICLE 9

ECONOMIC DEVELOPMENT

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2010 new text end new text begin 2011 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 (489,000) new text end new text begin $ new text end new text begin (745,000) new text end new text begin $ new text end new text begin (1,234,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. 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 2009, chapter 78, article 1, 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 "2010" and "2011" 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, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, 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 2010 new text end new text begin 2011 new text end

Sec. 3.

new text begin 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 (285,000) new text end new text begin $ new text end new text begin (285,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Business and Community Development new text end

new text begin (87,000) new text end new text begin (87,000) new text end

new text begin $25,000 in 2010 and $25,000 in 2011 are from the appropriation for the Office of Science and Technology. new text end

new text begin Subd. 3. new text end

new text begin Workforce Development new text end

new text begin (115,000) new text end new text begin (115,000) new text end

new text begin $15,000 in 2010 and $15,000 in 2011 are from the appropriation for the Minnesota job skills partnership program under Minnesota Statutes, sections 116L.01 to 116L.17. new text end

new text begin $11,000 in 2010 and $11,000 in 2011 are from the appropriation for administrative expenses to programs that provide employment support services to persons with mental illness under Minnesota Statutes, sections 268A.13 and 268A.14. new text end

new text begin $89,000 in 2010 and $89,000 in 2011 are from the appropriation for state services for the blind activities. new text end

new text begin Subd. 4. new text end

new text begin State-Funded Administration new text end

new text begin (83,000) new text end new text begin (83,000) new text end

Sec. 4.

new text begin HOUSING FINANCE AGENCY 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 (256,000) new text end

new text begin This reduction is from the appropriation to the Housing Finance Agency for the housing rehabilitation program under Minnesota Statutes, section 462A.05, subdivision 14, for rental housing developments. new text end

new text begin On or before June 30, 2010, the Housing Finance Agency shall transfer $256,000 from the housing rehabilitation program in the housing development fund to the general fund. new text end

Sec. 5.

new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin $ new text end new text begin (20,000) new text end new text begin $ new text end new text begin (20,000) new text end

new text begin This reduction is from the general fund appropriation for labor standards/apprenticeship. new text end

Sec. 6.

new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end new text begin (16,000) new text end new text begin $ new text end new text begin (16,000) new text end

new text begin This reduction is from the general fund appropriation for mediation services. new text end

Sec. 7.

new text begin MINNESOTA HISTORICAL SOCIETY 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 (168,000) new text end new text begin $ new text end new text begin (168,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Education and Outreach new text end

new text begin (96,000) new text end new text begin (96,000) new text end

new text begin Subd. 3. new text end

new text begin Preservation and Access new text end

new text begin (72,000) new text end new text begin (72,000) new text end

ARTICLE 10

TRANSPORTATION

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2010 new text end new text begin 2011 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 (1,649,000) new text end new text begin $ new text end new text begin (11,649,000) new text end new text begin $ new text end new text begin (13,298,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. 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 2009, chapter 36, article 1, 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 "2010" and "2011" used in this article mean that the addition to or subtraction from the appropriation listed under them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, 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 2010 new text end new text begin 2011 new text end

Sec. 3.

new text begin TRANSPORTATION 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 (24,000) new text end new text begin $ new text end new text begin (1,474,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Multimodal Systems new text end

new text begin (a) new text end new text begin Transit new text end new text begin (9,000) new text end new text begin (1,459,000) new text end

new text begin This reduction is to the Transit Improvement Administration appropriation. new text end

new text begin The base appropriation from the general fund for fiscal years 2012 and 2013 is $16,292,000 each year. new text end

new text begin (b) new text end new text begin Freight new text end new text begin (9,000) new text end new text begin (9,000) new text end

new text begin This reduction is to the rail service plan appropriation. new text end

new text begin (c) new text end new text begin Electronic Communication new text end new text begin (6,000) new text end new text begin (6,000) new text end

new text begin This reduction is to the Roosevelt Tower appropriation. new text end

Sec. 4.

new text begin METROPOLITAN COUNCIL 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 (1,625,000) new text end new text begin $ new text end new text begin (10,175,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Bus Transit new text end

new text begin (1,506,000) new text end new text begin (10,056,000) new text end

new text begin This reduction is to the appropriation for bus system operations. new text end

new text begin The base appropriation for fiscal years 2012 and 2013 is $59,796,000 each year. new text end

new text begin Subd. 3. new text end

new text begin Rail Operations new text end

new text begin (119,000) new text end new text begin (119,000) new text end

new text begin This reduction is to the appropriation for rail systems. new text end

new text begin The base appropriation for fiscal years 2012 and 2013 is $5,174,000 each year. new text end

ARTICLE 11

PUBLIC SAFETY

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2010 new text end new text begin 2011 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 (79,000) new text end new text begin $ new text end new text begin (79,000) new text end new text begin $ new text end new text begin (158,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. 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 2009, chapter 83, article 1, 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 "2010" and "2011" 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, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, 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 2010 new text end new text begin 2011 new text end

Sec. 3.

new text begin HUMAN RIGHTS new text end
new text begin $ new text end new text begin (79,000) new text end new text begin $ new text end new text begin (79,000) new text end

ARTICLE 12

STATE GOVERNMENT

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2010 new text end new text begin 2011 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 (1,694,000) new text end new text begin $ new text end new text begin (1,820,000) new text end new text begin $ new text end new text begin (3,514,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. 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 2009, chapter 101, article 1, 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 "2010" and "2011" 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, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, 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 2010 new text end new text begin 2011 new text end

Sec. 3.

new text begin GOVERNOR AND LIEUTENANT GOVERNOR new text end

new text begin $ new text end new text begin (81,000) new text end new text begin $ new text end new text begin (81,000) new text end

new text begin $13,000 of the reduction in each of fiscal years 2010 and 2011 are from the appropriation for necessary expenses in the normal performance of the governor's and lieutenant governor's duties for which no other reimbursement is provided. new text end

Sec. 4.

new text begin OFFICE OF ENTERPRISE TECHNOLOGY new text end

new text begin $ new text end new text begin (130,000) new text end new text begin $ new text end new text begin (130,000) new text end

new text begin $96,000 of the reduction in each of fiscal years 2010 and 2011 are from the appropriation for information technology security. new text end

Sec. 5.

new text begin ADMINISTRATION new text end

new text begin $ new text end new text begin (100,000) new text end new text begin $ new text end new text begin (200,000) new text end

new text begin These reductions are from the Government and Citizen Services Program. new text end

new text begin $162,000 of the balance in the central stores fund is transferred to the general fund on or before June 30, 2010. This is a onetime transfer. new text end

new text begin The base appropriation from the general fund for the Government and Citizen Services Program for fiscal years 2012 and 2013 is $17,116,000 each year. new text end

Sec. 6.

new text begin MANAGEMENT AND BUDGET new text end

new text begin $ new text end new text begin (459,000) new text end new text begin $ new text end new text begin (459,000) new text end
new text begin Health Care Access Fund Loan new text end

new text begin (a) By June 30, 2011, the commissioner of management and budget shall transfer up to $40,000,000 from the balance of the health care access fund to the general fund. new text end

new text begin (b) By June 30, 2012, the commissioner of management and budget shall transfer the amount transferred in paragraph (a) from the general fund to the health care access fund. new text end

new text begin (c) The amounts necessary to complete these transfers are appropriated to the commissioner from each fund. new text end

Sec. 7.

new text begin REVENUE new text end

new text begin $ new text end new text begin (924,000) new text end new text begin $ new text end new text begin (950,000) new text end

new text begin These reductions are from the tax system management program. new text end

ARTICLE 13

AIDS, CREDITS, REFUNDS

Section 1.

Minnesota Statutes 2008, section 273.1384, subdivision 6, as added by Laws 2010, chapter 215, article 13, section 2, is amended to read:

Subd. 6.

Credit reduction.

In 2011 and each year thereafter, the market value credit reimbursement amount for each taxing jurisdiction determined under this section is reduced by the dollar amount of the reduction in market value credit reimbursements for that taxing jurisdiction in 2010 due to deleted text begin unallotmentdeleted text end new text begin the new text end reductions deleted text begin announced prior to February 28, 2010, under section 16A.152deleted text end new text begin under section 477A.0133new text end . No taxing jurisdiction's market value credit reimbursements are reduced to less than zero under this subdivision. The commissioner of revenue shall pay the annual market value credit reimbursement amounts, after reduction under this subdivision, to the affected taxing jurisdictions as provided in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2011 and thereafter. new text end

Sec. 2.

new text begin [477A.0133] 2009 AND 2010 AID REDUCTIONS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given them in this subdivision. new text end

new text begin (b) The "2009 revenue base" for a statutory or home rule charter city is the sum of the city's certified property tax levy for taxes payable in 2009, plus the amount of local government aid under section 477A.013, subdivision 9, that the city was certified to receive in 2009, plus the amount of taconite aids under sections 298.28 and 298.282 that the city was certified to receive in 2009, including any amounts required to be placed in a special fund for distribution in a later year. new text end

new text begin (c) The "2009 revenue base" for a county is the sum of the county's certified property tax levy for taxes payable in 2009, plus the amount of county program aid under section 477A.0124 that the county was certified to receive in 2009, plus the amount of taconite aids under sections 298.28 and 298.282 that the county was certified to receive in 2009, including any amounts required to be placed in a special fund for distribution in a later year. new text end

new text begin (d) The "2009 revenue base" for a town is the sum of the town's certified property tax levy for taxes payable in 2009, plus the amount of aid under section 477A.013 that the town was certified to receive in 2009, plus the amount of taconite aids under sections 298.28 and 298.282 that the town was certified to receive in 2009, including any amounts required to be placed in a special fund for distribution in a later year. new text end

new text begin (e) "Population" means the population of the county, city, or town for 2007 based on information available to the commissioner of revenue in July 2009. new text end

new text begin (f) "Adjusted net tax capacity" means the amount of net tax capacity for the county, city, or town, computed using equalized market values according to section 477A.011, subdivision 20, for aid payable in 2009. new text end

new text begin (g) "Adjusted net tax capacity per capita" means the jurisdiction's adjusted net tax capacity divided by its population. new text end

new text begin Subd. 2. new text end

new text begin 2009 aid reductions. new text end

new text begin (a) The commissioner of revenue must compute a 2009 aid reduction amount for each county. new text end

new text begin The aid reduction amount is zero for a county with a population of less than 5,000, and is zero for a county containing the Shooting Star Casino property that was removed from the tax rolls in 2009. new text end

new text begin For all other counties, the aid reduction amount is equal to 1.188968672 percent of the county's 2009 revenue base. new text end

new text begin The reduction amount is limited to the sum of the amount of county program aid under section 477A.0124 that the county was certified to receive in 2009, plus the amount of market value credit reimbursements under section 273.1384 payable to the county in 2009 before the reductions in this section. new text end

new text begin The reduction amount is applied first to reduce the amount payable to the county in 2009 as county program aid under section 477A.013 and then, if necessary, to reduce the amount payable to the county in 2009 as market value credit reimbursements under section 273.1384. new text end

new text begin No county's aid or reimbursements are reduced to less than zero under this section. new text end

new text begin (b) The commissioner of revenue must compute a 2009 aid reduction amount for each city. new text end

new text begin The aid reduction amount is zero for any city with a population of less than 1,000 that has an adjusted net tax capacity per capita amount less than the statewide average adjusted net tax capacity amount per capita for all cities. The aid reduction amount is also zero for a city located outside the seven-county metropolitan area, with a 2006 population greater than 3,500, a pre-1940 housing percentage greater than 29 percent, a commercial-industrial percentage less than nine percent, and a population decline percentage of zero based on the data used to certify the 2009 local government aid distribution under section 477A.013. new text end

new text begin For all other cities, the aid reduction amount is equal to 3.3127634 percent of the city's 2009 revenue base. new text end

new text begin The reduction amount is limited to the sum of the amount of local government aid under section 477A.013, subdivision 9, that the city was certified to receive in 2009, plus the amount of market value credit reimbursements under section 273.1384 payable to the city in 2009 before the reductions in this section. new text end

new text begin The reduction amount for a city is further limited to $22 per capita. new text end

new text begin The reduction amount is applied first to reduce the amount payable to the city in 2009 as local government aid under section 477A.013 and then, if necessary, to reduce the amount payable to the city in 2009 as market value credit reimbursements under section 273.1384. new text end

new text begin No city's aid or reimbursements are reduced to less than zero under this section. new text end

new text begin (c) The commissioner of revenue must compute a 2009 aid reduction amount for each town. new text end

new text begin The aid reduction amount is zero for any town with a population of less than 1,000 that has an adjusted net tax capacity per capita amount less than the statewide average adjusted net tax capacity amount per capita for all towns. new text end

new text begin For all other towns, the aid reduction amount is equal to 1.735103 percent of the town's 2009 revenue base. new text end

new text begin The reduction amount is limited to $5 per capita. new text end

new text begin The reduction amount is applied to reduce the amount payable to the town in 2009 as market value credit reimbursements under section 273.1384. new text end

new text begin No town's reimbursements are reduced to less than zero under this section. new text end

new text begin Subd. 3. new text end

new text begin 2010 aid reductions. new text end

new text begin (a) The commissioner of revenue must compute a 2010 aid reduction amount for each county. new text end

new text begin The aid reduction amount is zero for a county with a population of less than 5,000, and is zero for a county containing the Shooting Star Casino property that was removed from the tax rolls in 2009. new text end

new text begin For all other counties, the aid reduction amount is equal to 2.41396687 percent of the county's 2009 revenue base. new text end

new text begin The reduction amount is limited to the sum of the amount of county program aid under section 477A.0124 that the county was certified to receive in 2009, plus the amount of market value credit reimbursements under section 273.1384 payable to the county in 2009 before the reductions in this section. new text end

new text begin The reduction amount is applied first to reduce the amount payable to the county in 2010 as county program aid under section 477A.013 and then, if necessary, to reduce the amount payable to the county in 2010 as market value credit reimbursements under section 273.1384. new text end

new text begin No county's aid or reimbursements are reduced to less than zero under this section. new text end

new text begin (b) The commissioner of revenue must compute a 2010 aid reduction amount for each city. new text end

new text begin The aid reduction amount is zero for any city with a population of less than 1,000 that has an adjusted net tax capacity per capita amount less than the statewide average adjusted net tax capacity amount per capita for all cities. new text end

new text begin For all other cities, the aid reduction amount is equal to 7.643803025 percent of the city's 2009 revenue base. new text end

new text begin The reduction amount is limited to the sum of the amount of local government aid under section 477A.013, subdivision 9, that the city was certified to receive in 2010, plus the amount of market value credit reimbursements under section 273.1384 payable to the city in 2010 before the reductions in this section. new text end

new text begin The reduction amount for a city is further limited to $55 per capita. new text end

new text begin The reduction amount is applied first to reduce the amount payable to the city in 2010 as local government aid under section 477A.013 and then, if necessary, to reduce the amount payable to the city in 2010 as market value credit reimbursements under section 273.1384. new text end

new text begin No city's aid or reimbursements are reduced to less than zero under this section. new text end

new text begin (c) The commissioner of revenue must compute a 2010 aid reduction amount for each town. new text end

new text begin The aid reduction amount is zero for any town with a population of less than 1,000 that has an adjusted net tax capacity per capita amount less than the statewide average adjusted net tax capacity amount per capita for all towns. new text end

new text begin For all other towns, the aid reduction amount is equal to 3.660798 percent of the town's 2009 revenue base. new text end

new text begin The reduction amount is limited to $10 per capita. new text end

new text begin The reduction amount is applied to reduce the amount payable to the town in 2010 as market value credit reimbursements under section 273.1384. new text end

new text begin No town's reimbursements are reduced to less than zero under this section. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and is retroactive for aids and credit reimbursements payable in 2009. new text end

Sec. 3.

Laws 2010, chapter 215, article 13, section 6, is amended to read:

Sec. 6.

477A.0134 ADDITIONAL 2010 AID AND CREDIT REDUCTIONS.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have the meanings given them in this subdivision.

(b) The "2010 revenue base" for a county is the sum of the county's certified property tax levy for taxes payable in 2010, plus the amount of county program aid under section 477A.0124 that the county was certified to receive in 2010, plus the amount of taconite aids under sections 298.28 and 298.282 that the county was certified to receive in 2010 including any amounts required to be placed in a special fund for distribution in a later year.

(c) The "2010 revenue base" for a statutory or home rule charter city is the sum of the city's certified property tax levy for taxes payable in 2010, plus the amount of local government aid under section 477A.013, subdivision 9, that the city was certified to receive in 2010, plus the amount of taconite aids under sections 298.28 and 298.282 that the city was certified to receive in 2010 including any amounts required to be placed in a special fund for distribution in a later year.

Subd. 2.

2010 reductions; counties and cities.

The commissioner of revenue must compute additional 2010 aid and credit reimbursement reduction amounts for each county and city under this section, after implementing any reduction of county program aid under section 477A.0124, local government aid under section 477A.013, or market value credit reimbursements under section 273.1384, to reflect the deleted text begin reduction of allotments under section 16A.152deleted text end new text begin reductions under section 477A.0133new text end .

The additional reduction amounts under this section are limited to the sum of the amount of county program aid under section 477A.0124, local government aid under section 477A.013, and market value credit reimbursements under section 273.1384 payable to the county or city in 2010 before the reductions in this section, but after the reductions deleted text begin for unallotmentsdeleted text end new text begin under section 477A.0133new text end .

The reduction amount under this section is applied first to reduce the amount payable to the county or city in 2010 as market value credit reimbursements under section 273.1384, and then if necessary, to reduce the amount payable as either county program aid under section 477A.0124 in the case of a county, or local government aid under section 477A.013 in the case of a city.

No aid or reimbursement amount is reduced to less than zero under this section.

The additional 2010 aid reduction amount for a county is equal to 1.82767 percent of the county's 2010 revenue base. The additional 2010 aid reduction amount for a city is equal to the lesser of (1) 3.4287 percent of the city's 2010 revenue base or (2) $28 multiplied by the city's 2008 population.

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 REFUNDS AND CREDITS. new text end

new text begin Subdivision 1. new text end

new text begin Political contribution credit. new text end

new text begin Notwithstanding the provisions of Minnesota Statutes, section 290.06, subdivision 23, or any other law to the contrary, the political contribution refund does not apply to contributions made after June 30, 2009, and before July 1, 2011. new text end

new text begin Subd. 2. new text end

new text begin Property tax refund. new text end

new text begin For property tax refunds based on rent paid during calendar year 2009 only, but also applying to refunds based on property taxes payable in 2010 that include gross rent paid in 2009, the following rules apply: new text end

new text begin (1) "rent constituting property taxes" must be calculated by substituting "15 percent" for "19 percent" under Minnesota Statutes, section 290A.03, subdivision 11; and new text end

new text begin (2) "property taxes payable" must be calculated under Minnesota Statutes, section 290A.03, subdivision 13, by substituting "15 percent" for "19 percent" in determining the portion of gross rent paid that is included in property taxes payable. new text end

new text begin Subd. 3. new text end

new text begin Sustainable forest incentive program. new text end

new text begin The maximum sustainable forest incentive program payments under Minnesota Statutes, section 290C.07, per each Social Security number or state or federal business tax identification number must not exceed $100,000. The provisions of this subdivision apply only to payments made during fiscal year 2011. 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 LEVY VALIDATION. new text end

new text begin Any special levy under Minnesota Statutes, section 275.70, subdivision 5, clause (22), approved by the commissioner of revenue for taxes payable in 2010, is validated notwithstanding a later judicial decision that may affect the validity of unallotments that were announced in 2009. A local government may not levy under Minnesota Statutes, section 275.70, subdivision 5, clause (22), for taxes payable in 2011 for any retroactive reduction in aid and credit reimbursements for aids and credits payable in 2008 or 2009. 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 PAYMENT OF REFUNDS. new text end

new text begin (a) In paying refunds during fiscal year 2011 of overpayments of corporate franchise tax and of sales tax, including but not limited to capital equipment refunds, the commissioner of revenue shall delay paying a sufficient number of these refunds until fiscal year 2012 so that $152,000,000 less in refunds is paid in fiscal year 2011 than otherwise would have been paid. This amount is in addition to any amount that the commissioner delays pursuant to administrative actions undertaken in connection with the unallotment announced in June 2009. Refunds delayed by the commissioner under this section are deemed to be due on July 1, 2011, for budget purposes, if the law otherwise would provide an earlier date. Any refunds paid after June 30, 2011, and before the close of fiscal year 2011 are deemed to be paid in fiscal year 2012 for budget purposes. new text end

new text begin (b) In carrying out the requirement of paragraph (a), the commissioner shall, to the extent possible, minimize delaying the payment of refunds that would result in payment of additional interest by the state. The commissioner may select refunds for delayed payment under this section or exempt refunds from this section in the manner that the commissioner determines, in the commissioner's sole discretion, has the least adverse effect on tax administration and taxpayer compliance. new text end

ARTICLE 14

SPECIAL REVENUE FUND

Section 1.

Minnesota Statutes 2008, section 3.9741, subdivision 2, is amended to read:

Subd. 2.

Postsecondary Education Board.

The legislative auditor may enter into an interagency agreement with the Board of Trustees of the Minnesota State Colleges and Universities to conduct financial audits, in addition to audits conducted under section 3.972, subdivision 2. All payments received for audits requested by the board shall be deleted text begin added to the appropriation fordeleted text end new text begin deposited in the special revenue fund and appropriated tonew text end the legislative auditornew text begin to pay audit expensesnew text end .

Sec. 2.

Minnesota Statutes 2008, section 8.15, subdivision 3, is amended to read:

Subd. 3.

Agreements.

(a) To facilitate the delivery of legal services, the attorney general may:

(1) enter into agreements with executive branch agencies, political subdivisions, or quasi-state agencies to provide legal services for the benefit of the citizens of Minnesota; and

(2) in addition to funds otherwise appropriated by the legislature, accept and spend funds received under any agreement authorized in clause (1) for the purpose set forth in clause (1), subject to a report of receipts to the chairs of the senate Finance Committee and the house of representatives Ways and Means Committee by October 15 each year.

(b) When entering into an agreement for legal services, the attorney general must notify the committees responsible for funding the Office of the Attorney General. When the attorney general enters into an agreement with a state agency, the attorney general must also notify the committees responsible for funding that agency.

Funds received under this subdivision must be deposited in deleted text begin the generaldeleted text end new text begin an account in the special revenue new text end fund and are appropriated to the attorney general for the purposes set forth in this subdivision.

Sec. 3.

Minnesota Statutes 2008, section 13.03, subdivision 10, is amended to read:

Subd. 10.

Costs for providing copies of data.

Money new text begin may be new text end collected by a responsible authority in a state agency for the actual cost to the agency of providing copies or electronic transmittal of government data deleted text begin is appropriated to the agency and added to the appropriations from which the costs were paiddeleted text end .new text begin When money collected for purposes of this section is of a magnitude sufficient to warrant a separate account in the state treasury, that money must be deposited in a fund other than the general fund and is appropriated to the agency.new text end

Sec. 4.

Minnesota Statutes 2008, section 16C.23, subdivision 6, is amended to read:

Subd. 6.

State surplus property.

The commissioner may do any of the following to dispose of state surplus property:

(1) transfer it to or between state agencies;

(2) transfer it to a governmental unit or nonprofit organization in Minnesota; or

(3) sell it and charge a fee to cover expenses incurred by the commissioner in the disposal of the surplus property.

The proceeds of the sale less the fee new text begin must be deposited in an account in a fund other than the general fund and new text end are appropriated to the agency for whose account the sale was made, to be used and expended by that agency to purchase similar state property.

Sec. 5.

Minnesota Statutes 2008, section 103B.101, subdivision 9, is amended to read:

Subd. 9.

Powers and duties.

In addition to the powers and duties prescribed elsewhere, the board shall:

(1) coordinate the water and soil resources planning activities of counties, soil and water conservation districts, watershed districts, watershed management organizations, and any other local units of government through its various authorities for approval of local plans, administration of state grants, and by other means as may be appropriate;

(2) facilitate communication and coordination among state agencies in cooperation with the Environmental Quality Board, and between state and local units of government, in order to make the expertise and resources of state agencies involved in water and soil resources management available to the local units of government to the greatest extent possible;

(3) coordinate state and local interests with respect to the study in southwestern Minnesota under United States Code, title 16, section 1009;

(4) develop information and education programs designed to increase awareness of local water and soil resources problems and awareness of opportunities for local government involvement in preventing or solving them;

(5) provide a forum for the discussion of local issues and opportunities relating to water and soil resources management;

(6) adopt an annual budget and work program that integrate the various functions and responsibilities assigned to it by law; and

(7) report to the governor and the legislature by October 15 of each even-numbered year with an assessment of board programs and recommendations for any program changes and board membership changes necessary to improve state and local efforts in water and soil resources management.

The board may accept grants, gifts, donations, or contributions in money, services, materials, or otherwise from the United States, a state agency, or other source to achieve an authorized purpose. The board may enter into a contract or agreement necessary or appropriate to accomplish the transfer. The board may receive and expend money to acquire conservation easements, as defined in chapter 84C, on behalf of the state and federal government consistent with the Camp Ripley's Army Compatible Use Buffer Project.

Any money received is hereby new text begin deposited in an account in a fund other than the general fund and new text end appropriated and dedicated for the purpose for which it is granted.

Sec. 6.

Minnesota Statutes 2008, section 103I.681, subdivision 11, is amended to read:

Subd. 11.

Permit fee schedule.

(a) The commissioner of natural resources shall adopt a permit fee schedule under chapter 14. The schedule may provide minimum fees for various classes of permits, and additional fees, which may be imposed subsequent to the application, based on the cost of receiving, processing, analyzing, and issuing the permit, and the actual inspecting and monitoring of the activities authorized by the permit, including costs of consulting services.

(b) A fee may not be imposed on a state or federal governmental agency applying for a permit.

(c) The fee schedule may provide for the refund of a fee, in whole or in part, under circumstances prescribed by the commissioner of natural resources. Fees received must be deposited in the state treasury and credited to deleted text begin the generaldeleted text end new text begin an account in the natural resources new text end fund. Permit fees received are appropriated annually from the deleted text begin generaldeleted text end new text begin natural resourcesnew text end fund to the commissioner of natural resources for the costs of inspecting and monitoring the activities authorized by the permit, including costs of consulting services.

Sec. 7.

Minnesota Statutes 2008, section 116J.551, subdivision 1, is amended to read:

Subdivision 1.

Grant account.

A contaminated site cleanup and development grant account is created in the deleted text begin generaldeleted text end new text begin special revenue new text end fund. Money in the account may be used, as appropriated by law, to make grants as provided in section 116J.554 and to pay for the commissioner's costs in reviewing applications and making grants. Notwithstanding section 16A.28, money appropriated to the account for this program from any source is available until spent.

Sec. 8.

Minnesota Statutes 2008, section 190.32, is amended to read:

190.32 FEDERAL REIMBURSEMENT RECEIPTS.

The Department of Military Affairs may deposit federal reimbursement receipts into deleted text begin the general funddeleted text end new text begin an new text end accountnew text begin in the special revenue fundnew text end , maintenance of military training facilities. These receipts are for services, supplies, and materials initially purchased by the Camp Ripley maintenance account.

Sec. 9.

Minnesota Statutes 2008, section 257.69, subdivision 2, is amended to read:

Subd. 2.

Guardian; legal fees.

(a) The court may order expert witness and guardian ad litem fees and other costs of the trial and pretrial proceedings, including appropriate tests, to be paid by the parties in proportions and at times determined by the court. The court shall require a party to pay part of the fees of court-appointed counsel according to the party's ability to pay, but if counsel has been appointed the appropriate agency shall pay the party's proportion of all other fees and costs. The agency responsible for child support enforcement shall pay the fees and costs for blood or genetic tests in a proceeding in which it is a party, is the real party in interest, or is acting on behalf of the child. However, at the close of a proceeding in which paternity has been established under sections 257.51 to 257.74, the court shall order the adjudicated father to reimburse the public agency, if the court finds he has sufficient resources to pay the costs of the blood or genetic tests. When a party bringing an action is represented by the county attorney, no filing fee shall be paid to the court administrator.

(b) In each fiscal year, the commissioner of management and budget shall deposit guardian ad litem reimbursements in the deleted text begin generaldeleted text end new text begin special revenuenew text end fund and credit them to a separate account with the trial courts. The balance of this account is appropriated to the trial courts and does not cancel but is available until expended. Expenditures by the state court administrator's office from this account must be based on the amount of the guardian ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 10.

Minnesota Statutes 2008, section 260C.331, subdivision 6, is amended to read:

Subd. 6.

Guardian ad litem fees.

(a) In proceedings in which the court appoints a guardian ad litem pursuant to section 260C.163, subdivision 5, clause (a), the court may inquire into the ability of the parents to pay for the guardian ad litem's services and, after giving the parents a reasonable opportunity to be heard, may order the parents to pay guardian fees.

(b) In each fiscal year, the commissioner of management and budget shall deposit guardian ad litem reimbursements in the deleted text begin generaldeleted text end new text begin special revenue new text end fund and credit them to a separate account with the trial courts. The balance of this account is appropriated to the trial courts and does not cancel but is available until expended. Expenditures by the state court administrator's office from this account must be based on the amount of the guardian ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 11.

Minnesota Statutes 2009 Supplement, section 270.97, is amended to read:

270.97 DEPOSIT OF REVENUES.

The commissioner shall deposit all revenues derived from the tax, interest, and penalties received from the county in the contaminated site cleanup and development account in the deleted text begin generaldeleted text end new text begin special revenue new text end fund and is annually appropriated to the commissioner of the Department of Employment and Economic Development, for the purposes of section 116J.551.

Sec. 12.

Minnesota Statutes 2008, section 299C.48, is amended to read:

299C.48 CONNECTION BY AUTHORIZED AGENCY; FEE, APPROPRIATION.

(a) An agency authorized under section 299C.46, subdivision 3, may connect with and participate in the criminal justice data communications network upon approval of the commissioner of public safety; provided, that the agency shall first agree to pay installation charges as may be necessary for connection and monthly operational charges as may be established by the commissioner of public safety. Before participation by a criminal justice agency may be approved, the agency must have executed an agreement with the commissioner providing for security of network facilities and restrictions on access to data supplied to and received through the network.

(b) In addition to any fee otherwise authorized, the commissioner of public safety shall impose a fee for providing secure dial-up or Internet access for criminal justice agencies and noncriminal justice agencies. The following monthly fees apply:

(1) criminal justice agency accessing via Internet, $15;

(2) criminal justice agency accessing via dial-up, $35;

(3) noncriminal justice agency accessing via Internet, $35; and

(4) noncriminal justice agency accessing via dial-up, $35.

(c) The installation and monthly operational charges collected by the commissioner of public safety under paragraphs (a) and (b) new text begin must be deposited in an account in the special revenue fund and new text end are annually appropriated to the commissioner to administer sections 299C.46 to 299C.50.

Sec. 13.

Minnesota Statutes 2008, section 299E.02, is amended to read:

299E.02 CONTRACT SERVICES; APPROPRIATION.

Fees charged for contracted security services provided by the Capitol Complex Security Division of the Department of Public Safety new text begin must be deposited in an account in the special revenue fund and new text end are annually appropriated to the commissioner of public safety to administer and provide these services.

Sec. 14.

Minnesota Statutes 2008, section 446A.086, subdivision 2, as amended by Laws 2010, chapter 290, section 14, is amended to read:

Subd. 2.

Application.

(a) This section provides a state guarantee of the payment of principal and interest on debt obligations if:

(1) the obligations are issued for new projects and are not issued for the purposes of refunding previous obligations;

(2) application to the Public Facilities Authority is made before issuance; and

(3) the obligations are covered by an agreement meeting the requirements of subdivision 3.

(b) Applications to be covered by the provisions of this section must be made in a form and contain the information prescribed by the authority. Applications are subject to either a fee of $500 for each bond issue requested by a county or governmental unit or the applicable fees under section 446A.087.

(c) Application fees paid under this section must be deposited in a separate credit enhancement bond guarantee account in the deleted text begin generaldeleted text end new text begin special revenuenew text end fund. Money in the credit enhancement bond guarantee account is appropriated to the authority for purposes of administering this section.

(d) Neither the authority nor the commissioner is required to promulgate administrative rules under this section and the procedures and requirements established by the authority or commissioner under this section are not subject to chapter 14.

Sec. 15.

Minnesota Statutes 2008, section 469.177, subdivision 11, is amended to read:

Subd. 11.

Deduction for enforcement costs; appropriation.

(a) The county treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to an authority or municipality. The county treasurer shall pay the amount deducted to the commissioner of management and budget for deposit in deleted text begin the state generaldeleted text end new text begin an account in the special revenue new text end fund.

(b) The amounts deducted and paid under paragraph (a) are appropriated to the state auditor for the cost of (1) the financial reporting of tax increment financing information and (2) the cost of examining and auditing of authorities' use of tax increment financing as provided under section 469.1771, subdivision 1. Notwithstanding section 16A.28 or any other law to the contrary, this appropriation does not cancel and remains available until spent.

(c) For taxes payable in 2002 and thereafter, the commissioner of revenue shall increase the percent in paragraph (a) to a percent equal to the product of the percent in paragraph (a) and the amount that the statewide tax increment levy for taxes payable in 2002 would have been without the class rate changes in this act and the elimination of the general education levy in this act divided by the statewide tax increment levy for taxes payable in 2002.

Sec. 16.

Minnesota Statutes 2008, section 518.165, subdivision 3, is amended to read:

Subd. 3.

Fees.

(a) A guardian ad litem appointed under either subdivision 1 or 2 may be appointed either as a volunteer or on a fee basis. If a guardian ad litem is appointed on a fee basis, the court shall enter an order for costs, fees, and disbursements in favor of the child's guardian ad litem. The order may be made against either or both parties, except that any part of the costs, fees, or disbursements which the court finds the parties are incapable of paying shall be borne by the state courts. The costs of court-appointed counsel to the guardian ad litem shall be paid by the county in which the proceeding is being held if a party is incapable of paying for them. Until the recommendations of the task force created in Laws 1999, chapter 216, article 7, section 42, are implemented, the costs of court-appointed counsel to a guardian ad litem in the Eighth Judicial District shall be paid by the state courts if a party is incapable of paying for them. In no event may the court order that costs, fees, or disbursements be paid by a party receiving public assistance or legal assistance or by a party whose annual income falls below the poverty line as established under United States Code, title 42, section 9902(2).

(b) In each fiscal year, the commissioner of management and budget shall deposit guardian ad litem reimbursements in the deleted text begin generaldeleted text end new text begin special revenue new text end fund and credit them to a separate account with the trial courts. The balance of this account is appropriated to the trial courts and does not cancel but is available until expended. Expenditures by the state court administrator's office from this account must be based on the amount of the guardian ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 17.

Minnesota Statutes 2008, section 609.3241, is amended to read:

609.3241 PENALTY ASSESSMENT AUTHORIZED.

When a court sentences an adult convicted of violating section 609.322 or 609.324, while acting other than as a prostitute, the court shall impose an assessment of not less than $250 and not more than $500 for a violation of section 609.324, subdivision 2, or a misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall impose an assessment of not less than $500 and not more than $1,000. The mandatory minimum portion of the assessment is to be used for the purposes described in section 626.558, subdivision 2a, and is in addition to the surcharge required by section 357.021, subdivision 6. Any portion of the assessment imposed in excess of the mandatory minimum amount shall be deleted text begin forwarded to the generaldeleted text end new text begin deposited in an account in the special revenuenew text end fund and is appropriated annually to the commissioner of public safety. The commissioner, with the assistance of the General Crime Victims Advisory Council, shall use money received under this section for grants to agencies that provide assistance to individuals who have stopped or wish to stop engaging in prostitution. Grant money may be used to provide these individuals with medical care, child care, temporary housing, and educational expenses.

Sec. 18.

Minnesota Statutes 2008, section 611.20, subdivision 3, is amended to read:

Subd. 3.

Reimbursement.

In each fiscal year, the commissioner of management and budget shall deposit the payments in the deleted text begin generaldeleted text end new text begin special revenue new text end fund and credit them to a separate account with the Board of Public Defense. The amount credited to this account is appropriated to the Board of Public Defense.

The balance of this account does not cancel but is available until expended. Expenditures by the board from this account for each judicial district public defense office must be based on the amount of the payments received by the state from the courts in each judicial district. A district public defender's office that receives money under this subdivision shall use the money to supplement office overhead payments to part-time attorneys providing public defense services in the district. By January 15 of each year, the Board of Public Defense shall report to the chairs and ranking minority members of the senate and house of representatives divisions having jurisdiction over criminal justice funding on the amount appropriated under this subdivision, the number of cases handled by each district public defender's office, the number of cases in which reimbursements were ordered, the average amount of reimbursement ordered, and the average amount of money received by part-time attorneys under this subdivision.

Sec. 19.

Laws 1994, chapter 531, section 1, is amended to read:

Section 1.

SALE OF WILDLIFE LANDS.

Notwithstanding Minnesota Statutes, sections 84.027, subdivision 10; 92.45; 94.09 to 94.165; 97A.135; 103F.535, or any other law, the commissioner of administration may sell lands located in the Gordy Yaeger wildlife management area in Olmsted county. The consideration for the lands described in sections 2 and 3 shall be $950 per acre. The conveyances shall be by deleted text begin guitclaimdeleted text end new text begin quitclaim new text end deed in a form approved by the attorney general and shall reserve to the state all minerals and mineral rights. The proceeds received from the sales are to be deposited in new text begin an account in new text end the deleted text begin generaldeleted text end new text begin natural resources new text end fund and are appropriated to the commissioner of natural resources for acquisition of replacement wildlife management area lands. These sales are pursuant to the recommendation of the Gordy Yaeger wildlife management area advisory committee.

ARTICLE 15

HEALTH AND HUMAN SERVICES

Section 1.

new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made in this article. new text end

new text begin 2010 new text end new text begin 2011 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 (74,704,000) new text end new text begin $ new text end new text begin (83,154,000) new text end new text begin $ new text end new text begin (157,858,000) new text end

Sec. 2.

new text begin APPROPRIATIONS. 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 2009, chapter 79, article 13, as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes specified in this article. The appropriations are from the general fund and are available for the fiscal years indicated for each purpose. The figures "2010" and "2011" 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, 2010, or June 30, 2011, respectively. Supplemental appropriations and reductions to appropriations for the fiscal year ending June 30, 2010, are effective the day following final enactment unless a different effective date is explicit. All reductions in this article are onetime, unless otherwise stated. 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 2010 new text end new text begin 2011 new text end

Sec. 3.

new text begin DEPARTMENT OF HUMAN SERVICES 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 (74,177,000) new text end new text begin $ new text end new text begin (82,629,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Agency Management; Financial Operations new text end

new text begin (3,289,000) new text end new text begin (3,282,000) new text end

new text begin Subd. 3. new text end

new text begin Children and Economic Assistance Grants new text end

new text begin (a) Child Support Enforcement Grants new text end new text begin (3,400,000) new text end new text begin (1,249,000) new text end
new text begin (b) Children's Services Grants new text end new text begin (600,000) new text end new text begin -0- new text end

new text begin American Indian Child Welfare Projects. Notwithstanding Laws 2009, chapter 79, article 2, section 35, $600,000 of the fiscal year 2009 funds extended in fiscal year 2010 cancel to the general fund. new text end

new text begin (c) Children and Community Services Grants new text end new text begin (16,900,000) new text end new text begin (1,500,000) new text end
new text begin (d) General Assistance Grants new text end new text begin (5,267,000) new text end new text begin -0- new text end
new text begin (e) Minnesota Supplemental Aid Grants new text end new text begin (733,000) new text end new text begin -0- new text end
new text begin (f) Group Residential Housing Grants new text end new text begin (467,000) new text end new text begin (706,000) new text end

new text begin Subd. 4. new text end

new text begin Basic Health Care Grants new text end

new text begin (a) Medical Assistance Basic Health Care Grants - Families and Children new text end new text begin (5,599,000) new text end new text begin (29,979,000) new text end
new text begin (b) Medical Assistance Basic Health Care Grants - Elderly and Disabled new text end new text begin (2,331,000) new text end new text begin (22,298,000) new text end

new text begin Hospital Fee-for-Service Payment Delay. Payments from the Medicaid Management Information System that would otherwise have been made for inpatient hospital services for Minnesota health care program enrollees must be delayed as follows: for fiscal year 2011, June payments must be included in the first payments in fiscal year 2012. The provisions of Minnesota Statutes, section 16A.124, do not apply to these delayed payments. This payment delay includes, and is not in addition to, the payment delay for inpatient hospital services in Laws 2009, chapter 79, article 13, section 3, subdivision 6, paragraph (c). new text end

new text begin Nonhospital Fee-for-Service Payment Delay. Payments from the Medicaid Management Information System that would otherwise have been made for nonhospital acute care services for Minnesota health care program enrollees must be delayed as follows: for fiscal year 2011, June payments must be included in the first payments in fiscal year 2012. This payment delay must not include nursing facilities, intermediate care facilities for persons with developmental disabilities, home and community-based services, prepaid health plans, personal care provider organizations, and home health agencies. The provisions of Minnesota Statutes, section 16A.124, do not apply to these delayed payments. This payment delay includes, and is not in addition to, the payment delay for nonhospital acute care services in Laws 2009, chapter 79, article 13, section 3, subdivision 6, paragraph (c). new text end

new text begin (c) General Assistance Medical Care Grants new text end new text begin (15,879,000) new text end new text begin -0- new text end

new text begin Subd. 5. new text end

new text begin Health Care Management; Administration new text end

new text begin (180,000) new text end new text begin (360,000) new text end

new text begin Incentive Program and Outreach Grants. The general fund appropriation for the incentive program under Laws 2008, chapter 358, article 5, section 3, subdivision 4, paragraph (b), is canceled. This paragraph is effective retroactively from January 1, 2010. new text end

new text begin Subd. 6. new text end

new text begin Continuing Care Grants new text end

new text begin (a) Aging and Adult Services Grants new text end new text begin (3,600,000) new text end new text begin (3,600,000) new text end

new text begin Community Service/Service Development Grants Reduction. Effective retroactively from July 1, 2009, funding for grants made under Minnesota Statutes, sections 256.9754 and 256B.0917, subdivision 13, is reduced by $5,807,000 for each year of the biennium. Grants made during the biennium under Minnesota Statutes, section 256.9754, shall not be used for new construction or building renovation. new text end

new text begin Aging Grants Delay. Aging grants must be reduced by $917,000 in fiscal year 2011 and increased by $917,000 in fiscal year 2012. These adjustments are onetime and must not be applied to the base. This provision expires June 30, 2012. new text end

new text begin (b) Medical Assistance Long-Term Care Facilities Grants new text end new text begin (3,827,000) new text end new text begin (2,745,000) new text end

new text begin ICF/MR Variable Rates Suspension. Effective retroactively from July 1, 2009, to June 30, 2010, no new variable rates shall be authorized for intermediate care facilities for persons with developmental disabilities under Minnesota Statutes, section 256B.5013, subdivision 1. new text end

new text begin ICF/MR Occupancy Rate Adjustment Suspension. Effective retroactively from July 1, 2009, to June 30, 2011, approval of new applications for occupancy rate adjustments for unoccupied short-term beds under Minnesota Statutes, section 256B.5013, subdivision 7, is suspended. new text end

new text begin (c) Medical Assistance Long-Term Care Waivers and Home Care Grants new text end new text begin (2,318,000) new text end new text begin (5,807,000) new text end

new text begin Developmental Disability Waiver Acuity Factor. Effective retroactively from January 1, 2010, the January 1, 2010, one percent growth factor in the developmental disability waiver allocations under Minnesota Statutes, section 256B.092, subdivisions 4 and 5, that is attributable to changes in acuity, is suspended to June 30, 2011. new text end

new text begin (d) Adult Mental Health Grants new text end new text begin (5,000,000) new text end new text begin -0- new text end
new text begin (e) Chemical Dependency Entitlement Grants new text end new text begin (3,622,000) new text end new text begin (3,622,000) new text end
new text begin (f) Chemical Dependency Nonentitlement Grants new text end new text begin (393,000) new text end new text begin (393,000) new text end
new text begin (g) Other Continuing Care Grants new text end new text begin -0- new text end new text begin (2,500,000) new text end

new text begin new text begin Other Continuing Care Grants Delay.new text end Other continuing care grants must be reduced by $1,414,000 in fiscal year 2011 and increased by $1,414,000 in fiscal year 2012. These adjustments are onetime and must not be applied to the base. This provision expires June 30, 2012. new text end

new text begin Subd. 7. new text end

new text begin Continuing Care Management new text end

new text begin (350,000) new text end new text begin -0- new text end

new text begin County Maintenance of Effort. The general fund appropriation for the State-County Results Accountability and Service Delivery Reform under Minnesota Statutes, chapter 402A, is canceled. This paragraph is effective retroactively from July 1, 2009. new text end

new text begin Subd. 8. new text end

new text begin State-Operated Services; Adult Mental Health Services new text end

new text begin (422,000) new text end new text begin (4,588,000) new text end

Sec. 4.

new text begin DEPARTMENT OF HEALTH 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 (527,000) new text end new text begin $ new text end new text begin (525,000) new text end

new text begin The appropriation reductions for each purpose are shown in the following subdivisions. new text end

new text begin Subd. 2. new text end

new text begin Community and Family Health Promotion new text end

new text begin (53,000) new text end new text begin (355,000) new text end

new text begin Subd. 3. new text end

new text begin Policy Quality and Compliance new text end

new text begin (118,000) new text end new text begin (74,000) new text end

new text begin new text begin Office of Unlicensed Health Care Practice.new text end Of the general fund reduction $74,000 in fiscal year 2011 is from the Office of Unlicensed Complementary and Alternative Health Care Practice. new text end

new text begin Subd. 4. new text end

new text begin Health Protection new text end

new text begin (225,000) new text end new text begin (74,000) new text end

new text begin Subd. 5. new text end

new text begin Administrative Support Services new text end

new text begin (131,000) new text end new text begin (22,000) new text end

Sec. 5.

Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by Laws 2009, chapter 173, article 2, section 1, subdivision 8, is amended to read:

Subd. 8.

Continuing Care Grants

The amounts that may be spent from the appropriation for each purpose are as follows:

(a) Aging and Adult Services Grants 13,499,000 15,805,000

Base Adjustment. The general fund base is increased by $5,751,000 in fiscal year 2012 and $6,705,000 in fiscal year 2013.

Information and Assistance Reimbursement. Federal administrative reimbursement obtained from information and assistance services provided by the Senior LinkAge or Disability Linkage lines to people who are identified as eligible for medical assistance shall be appropriated to the commissioner for this activity.

Community Service Development Grant Reduction. Funding for community service development grants must be reduced by $260,000 for fiscal year 2010; $284,000 in fiscal year 2011; $43,000 in fiscal year 2012; and $43,000 in fiscal year 2013. Base level funding shall be restored in fiscal year 2014.

Community Service Development Grant Community Initiative. Funding for community service development grants shall be used to offset the cost of aging support grants. Base level funding shall be restored in fiscal year 2014.

Senior Nutrition Use of Federal Funds. For fiscal year 2010, general fund grants for home-delivered meals and congregate dining shall be reduced by $500,000. The commissioner must replace these general fund reductions with equal amounts from federal funding for senior nutrition from the American Recovery and Reinvestment Act of 2009.

(b) Alternative Care Grants 50,234,000 48,576,000

Base Adjustment. The general fund base is decreased by $3,598,000 in fiscal year 2012 and $3,470,000 in fiscal year 2013.

Alternative Care Transfer. Any money allocated to the alternative care program that is not spent for the purposes indicated does not cancel but must be transferred to the medical assistance account.

(c) Medical Assistance Grants; Long-Term Care Facilities. 367,444,000 419,749,000
(d) Medical Assistance Long-Term Care Waivers and Home Care Grants 853,567,000 1,039,517,000

Manage Growth in TBI and CADI Waivers. During the fiscal years beginning on July 1, 2009, and July 1, 2010, the commissioner shall allocate money for home and community-based waiver programs under Minnesota Statutes, section 256B.49, to ensure a reduction in state spending that is equivalent to limiting the caseload growth of the TBI waiver to 12.5 allocations per month each year of the biennium and the CADI waiver to 95 allocations per month each year of the biennium. Limits do not apply: (1) when there is an approved plan for nursing facility bed closures for individuals under age 65 who require relocation due to the bed closure; (2) to fiscal year 2009 waiver allocations delayed due to unallotment; or (3) to transfers authorized by the commissioner from the personal care assistance program of individuals having a home care rating of "CS," "MT," or "HL." Priorities for the allocation of funds must be for individuals anticipated to be discharged from institutional settings or who are at imminent risk of a placement in an institutional setting.

Manage Growth in DD Waiver. The commissioner shall manage the growth in the DD waiver by limiting the allocations included in the February 2009 forecast to 15 additional diversion allocations each month for the calendar years that begin on January 1, 2010, and January 1, 2011. Additional allocations must be made available for transfers authorized by the commissioner from the personal care program of individuals having a home care rating of "CS," "MT," or "HL."

Adjustment to Lead Agency Waiver Allocations. Prior to the availability of the alternative license defined in Minnesota Statutes, section 245A.11, subdivision 8, the commissioner shall reduce lead agency waiver allocations for the purposes of implementing a moratorium on corporate foster care.

Alternatives to Personal Care Assistance Services. Base level funding of $3,237,000 in fiscal year 2012 and $4,856,000 in fiscal year 2013 is to implement alternative services to personal care assistance services for persons with mental health and other behavioral challenges who can benefit from other services that more appropriately meet their needs and assist them in living independently in the community. These services may include, but not be limited to, a 1915(i) state plan option.

(e) Mental Health Grants
Appropriations by Fund
General 77,739,000 77,739,000
Health Care Access 750,000 750,000
Lottery Prize 1,508,000 1,508,000

Funding Usage. Up to 75 percent of a fiscal year's appropriation for adult mental health grants may be used to fund allocations in that portion of the fiscal year ending December 31.

(f) Deaf and Hard-of-Hearing Grants 1,930,000 1,917,000
(g) Chemical Dependency Entitlement Grants 111,303,000 122,822,000

Payments for Substance Abuse Treatment. For services provided during fiscal years 2010 and 2011, county-negotiated rates and provider claims to the consolidated chemical dependency fund must not exceed rates charged for these services on January 1, 2009new text begin ; and rates for fiscal years 2010 and 2011 must not exceed 160 percent of the average rate on January 1, 2009, for each group of vendors with similar attributesnew text end . For services provided in fiscal years 2012 and 2013, statewide average rates under the new rate methodology to be developed under Minnesota Statutes, section 254B.12, must not exceed the average rates charged for these services on January 1, 2009, plus a state share increase of $3,787,000 for fiscal year 2012 and $5,023,000 for fiscal year 2013. Notwithstanding any provision to the contrary in this article, this provision expires on June 30, 2013.

Chemical Dependency Special Revenue Account. For fiscal year 2010, $750,000 must be transferred from the consolidated chemical dependency treatment fund administrative account and deposited into the general fund.

County CD Share of MA Costs for ARRA Compliance. Notwithstanding the provisions of Minnesota Statutes, chapter 254B, for chemical dependency services provided during the period October 1, 2008, to December 31, 2010, and reimbursed by medical assistance at the enhanced federal matching rate provided under the American Recovery and Reinvestment Act of 2009, the county share is 30 percent of the nonfederal share. This provision is effective the day following final enactment.

(h) Chemical Dependency Nonentitlement Grants 1,729,000 1,729,000
(i) Other Continuing Care Grants 19,201,000 17,528,000

Base Adjustment. The general fund base is increased by $2,639,000 in fiscal year 2012 and increased by $3,854,000 in fiscal year 2013.

Technology Grants. $650,000 in fiscal year 2010 and $1,000,000 in fiscal year 2011 are for technology grants, case consultation, evaluation, and consumer information grants related to developing and supporting alternatives to shift-staff foster care residential service models.

Other Continuing Care Grants; HIV Grants. Money appropriated for the HIV drug and insurance grant program in fiscal year 2010 may be used in either year of the biennium.

Quality Assurance Commission. Effective July 1, 2009, state funding for the quality assurance commission under Minnesota Statutes, section 256B.0951, is canceled.

Sec. 6.

Laws 2009, chapter 79, article 13, section 4, subdivision 4, as amended by Laws 2009, chapter 173, article 2, section 2, subdivision 4, is amended to read:

Subd. 4.

Health Protection

Appropriations by Fund
General 9,871,000 9,780,000
State Government Special Revenue 30,209,000 30,209,000

Base Adjustment. The general fund base is reduced by $50,000 in each of fiscal years 2012 and 2013.

Health Protection Appropriations. (a) $163,000 each year is for the lead abatement grant program.

(b) $100,000 each year is for emergency preparedness and response activities.

(c) $50,000 each year is for tuberculosis prevention and control. This is a onetime appropriation.

deleted text begin (d) $55,000 in fiscal year 2010 is for pentachlorophenol. deleted text end

deleted text begin (e) $20,000 in fiscal year 2010 is for a PFC Citizens Advisory Group. deleted text end

American Recovery and Reinvestment Act Funds. Federal funds received by the commissioner for immunization operations from the American Recovery and Reinvestment Act of 2009, Public Law 111-5, are appropriated to the commissioner for the purposes of the grant.

Sec. 7.

Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11, is amended to read:

Subd. 11.

Personal care assistant; requirements.

(a) A personal care assistant must meet the following requirements:

(1) be at least 18 years of age with the exception of persons who are 16 or 17 years of age with these additional requirements:

(i) supervision by a qualified professional every 60 days; and

(ii) employment by only one personal care assistance provider agency responsible for compliance with current labor laws;

(2) be employed by a personal care assistance provider agency;

(3) enroll with the department as a personal care assistant after clearing a background study. Before a personal care assistant provides services, the personal care assistance provider agency must initiate a background study on the personal care assistant under chapter 245C, and the personal care assistance provider agency must have received a notice from the commissioner that the personal care assistant is:

(i) not disqualified under section 245C.14; or

(ii) is disqualified, but the personal care assistant has received a set aside of the disqualification under section 245C.22;

(4) be able to effectively communicate with the recipient and personal care assistance provider agency;

(5) be able to provide covered personal care assistance services according to the recipient's personal care assistance care plan, respond appropriately to recipient needs, and report changes in the recipient's condition to the supervising qualified professional or physician;

(6) not be a consumer of personal care assistance services;

(7) maintain daily written records including, but not limited to, time sheets under subdivision 12;

(8) effective January 1, 2010, complete standardized training as determined by the commissioner before completing enrollment. Personal care assistant training must include successful completion of the following training components: basic first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of personal care assistants including information about assistance with lifting and transfers for recipients, emergency preparedness, orientation to positive behavioral practices, fraud issues, and completion of time sheets. Upon completion of the training components, the personal care assistant must demonstrate the competency to provide assistance to recipients;

(9) complete training and orientation on the needs of the recipient within the first seven days after the services begin; and

(10) be limited to providing and being paid for up to 310 hours per monthnew text begin , except that this limit shall be 275 hours per month for the period July 1, 2009, through June 30, 2011,new text end of personal care assistance services regardless of the number of recipients being served or the number of personal care assistance provider agencies enrolled with.

(b) A legal guardian may be a personal care assistant if the guardian is not being paid for the guardian services and meets the criteria for personal care assistants in paragraph (a).

(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant include parents and stepparents of minors, spouses, paid legal guardians, family foster care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or staff of a residential setting.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009. new text end

Sec. 8.

Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55, is amended to read:

Subd. 55.

Phase-in of rebased operating payment rates.

(a) For the rate years beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated under this section shall be phased in by blending the operating rate with the operating payment rate determined under section 256B.434. For purposes of this subdivision, the rate to be used that is determined under section 256B.434 shall not include the portion of the operating payment rate related to performance-based incentive payments under section 256B.434, subdivision 4, paragraph (d). For the rate year beginning October 1, 2008, the operating payment rate for each facility shall be 13 percent of the operating payment rate from this section, and 87 percent of the operating payment rate from section 256B.434. deleted text begin For the rate year beginning October 1, 2009, the operating payment rate for each facility shall be 14 percent of the operating payment rate from this section, and 86 percent of the operating payment rate from section 256B.434.deleted text end For rate years beginning new text begin October 1, 2009; new text end October 1, 2010; October 1, 2011; and October 1, 2012, no rate adjustments shall be implemented under this section, but shall be determined under section 256B.434. For the rate year beginning October 1, 2013, the operating payment rate for each facility shall be 65 percent of the operating payment rate from this section, and 35 percent of the operating payment rate from section 256B.434. For the rate year beginning October 1, 2014, the operating payment rate for each facility shall be 82 percent of the operating payment rate from this section, and 18 percent of the operating payment rate from section 256B.434. For the rate year beginning October 1, 2015, the operating payment rate for each facility shall be the operating payment rate determined under this section. The blending of operating payment rates under this section shall be performed separately for each RUG's class.

(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits to the operating payment rate increases under paragraph (a) by creating a minimum percentage increase and a maximum percentage increase.

(1) Each nursing facility that receives a blended October 1, 2008, operating payment rate increase under paragraph (a) of less than one percent, when compared to its operating payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00, shall receive a rate adjustment of one percent.

(2) The commissioner shall determine a maximum percentage increase that will result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing facilities with a blended October 1, 2008, operating payment rate increase under paragraph (a) greater than the maximum percentage increase determined by the commissioner, when compared to its operating payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00, shall receive the maximum percentage increase.

(3) Nursing facilities with a blended October 1, 2008, operating payment rate increase under paragraph (a) greater than one percent and less than the maximum percentage increase determined by the commissioner, when compared to its operating payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00, shall receive the blended October 1, 2008, operating payment rate increase determined under paragraph (a).

(4) The October 1, 2009, through October 1, 2015, operating payment rate for facilities receiving the maximum percentage increase determined in clause (2) shall be the amount determined under paragraph (a) less the difference between the amount determined under paragraph (a) for October 1, 2008, and the amount allowed under clause (2). This rate restriction does not apply to rate increases provided in any other section.

(c) A portion of the funds received under this subdivision that are in excess of operating payment rates that a facility would have received under section 256B.434, as determined in accordance with clauses (1) to (3), shall be subject to the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h).

(1) Determine the amount of additional funding available to a facility, which shall be equal to total medical assistance resident days from the most recent reporting year times the difference between the blended rate determined in paragraph (a) for the rate year being computed and the blended rate for the prior year.

(2) Determine the portion of all operating costs, for the most recent reporting year, that are compensation related. If this value exceeds 75 percent, use 75 percent.

(3) Subtract the amount determined in clause (2) from 75 percent.

(4) The portion of the fund received under this subdivision that shall be subject to the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal the amount determined in clause (1) times the amount determined in clause (3).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from October 1, 2009. new text end

Sec. 9.

Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a, is amended to read:

Subd. 5a.

Managed care contracts.

(a) Managed care contracts under this section and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year basis beginning January 1, 1996. Managed care contracts which were in effect on June 30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 through December 31, 1995 at the same terms that were in effect on June 30, 1995. The commissioner may issue separate contracts with requirements specific to services to medical assistance recipients age 65 and older.

(b) A prepaid health plan providing covered health services for eligible persons pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms of its contract with the commissioner. Requirements applicable to managed care programs under chapters 256B, 256D, and 256L, established after the effective date of a contract with the commissioner take effect when the contract is next issued or renewed.

(c) Effective for services rendered on or after January 1, 2003, the commissioner shall withhold five percent of managed care plan payments under this section and county-based purchasing plan's payment rate under section 256B.692 for the prepaid medical assistance and general assistance medical care programs pending completion of performance targets. Each performance target must be quantifiable, objective, measurable, and reasonably attainable, except in the case of a performance target based on a federal or state law or rule. Criteria for assessment of each performance target must be outlined in writing prior to the contract effective date. The managed care plan must demonstrate, to the commissioner's satisfaction, that the data submitted regarding attainment of the performance target is accurate. The commissioner shall periodically change the administrative measures used as performance targets in order to improve plan performance across a broader range of administrative services. The performance targets must include measurement of plan efforts to contain spending on health care services and administrative activities. The commissioner may adopt plan-specific performance targets that take into account factors affecting only one plan, including characteristics of the plan's enrollee population. The withheld funds must be returned no sooner than July of the following year if performance targets in the contract are achieved. The commissioner may exclude special demonstration projects under subdivision 23.

(d) Effective for services rendered on or after January 1, 2009, through December 31, 2009, the commissioner shall withhold three percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance and general assistance medical care programs. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

The return of the withhold under this paragraph is not subject to the requirements of paragraph (c).

(e) Effective for services provided on or after January 1, 2010, the commissioner shall require that managed care plans use the assessment and authorization processes, forms, timelines, standards, documentation, and data reporting requirements, protocols, billing processes, and policies consistent with medical assistance fee-for-service or the Department of Human Services contract requirements consistent with medical assistance fee-for-service or the Department of Human Services contract requirements for all personal care assistance services under section 256B.0659.

(f) Effective for services rendered on or after January 1, 2010, through December 31, 2010, the commissioner shall withhold deleted text begin 3.5deleted text end new text begin 4.5new text end percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

(g) Effective for services rendered on or after January 1, 2011, through December 31, 2011, the commissioner shall withhold deleted text begin fourdeleted text end new text begin 4.5 new text end percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

(h) Effective for services rendered on or after January 1, 2012, through December 31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

(i) Effective for services rendered on or after January 1, 2013, through December 31, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

(j) Effective for services rendered on or after January 1, 2014, the commissioner shall withhold three percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance and prepaid general assistance medical care programs. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

(k) A managed care plan or a county-based purchasing plan under section 256B.692 may include as admitted assets under section 62D.044 any amount withheld under this section that is reasonably expected to be returned.

(l) Contracts between the commissioner and a prepaid health plan are exempt from the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a), and 7.

new text begin EFFECTIVE DATE. new text end

new text begin The additional withhold percentage in paragraph (f) is effective retroactively from January 1, 2010. new text end

Sec. 10.

Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is amended to read:

Subdivision 1.

Physician 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; and

(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.

(b) 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. The increases in this paragraph shall be implemented January 1, 2000, for managed care.

(c) Effective for services rendered on or after July 1, 2009, payment rates for physician and professional services shall be reduced by five percentnew text begin , except that for the period July 1, 2009, through June 30, 2010, payments rates shall be reduced by 6.5 percent for the medical assistance and general assistance medical care programs,new text end over the rates in effect on June 30, 2009. This reduction does not apply to office or other outpatient visits, preventive medicine visits and family planning visits billed by physicians, advanced practice nurses, or physician assistants in a family planning agency or in one of the following primary care practices: general practice, general internal medicine, general pediatrics, general geriatrics, and family medicine. This reduction does not apply to federally qualified health centers, rural health centers, and Indian health services. Effective October 1, 2009, payments made to managed care plans and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment reduction described in this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin The additional rate reductions in this section are effective retroactively from July 1, 2009. new text end

Sec. 11.

Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:

Subd. 4.

Critical access dental providers.

new text begin (a)new text end Effective for dental services rendered on or after January 1, 2002, the commissioner shall increase reimbursements to dentists and dental clinics deemed by the commissioner to be critical access dental providers. For dental services rendered on or after July 1, 2007, the commissioner shall increase reimbursement by 30 percent above the reimbursement rate that would otherwise be paid to the critical access dental provider. The commissioner shall pay the health plan companies in amounts sufficient 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 (b) Notwithstanding paragraph (a), critical access payments must not be made for dental services provided from April 1, 2010, through June 30, 2010. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2010. new text end

Sec. 12.

Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read:

256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.

(a) Effective for services provided on or after July 1, 2009, total payments for basic care services, shall be reduced by three percentnew text begin , except that for the period July 1, 2009, through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical assistance and general assistance medical care programsnew text end , prior to third-party liability and spenddown calculation. Payments made to managed care plans and county-based purchasing plans shall be reduced for services provided on or after October 1, 2009, to reflect this reduction.

(b) This section does not apply to physician and professional services, inpatient hospital services, family planning services, mental health services, dental services, prescription drugs, medical transportation, federally qualified health centers, rural health centers, Indian health services, and Medicare cost-sharing.

new text begin EFFECTIVE DATE. new text end

new text begin The additional rate reductions in this section are effective retroactively from July 1, 2009. new text end

Sec. 13.

new text begin REDUCTION OF GROUP RESIDENTIAL HOUSING SUPPLEMENTAL SERVICE RATE. new text end

new text begin Effective retroactively from November 1, 2009, through June 30, 2011, the commissioner of human services shall decrease the group residential housing (GRH) supplementary service rate under Minnesota Statutes, section 256I.05, subdivision 1a, by five percent for services rendered on or after that date, except that reimbursement rates for a GRH facility reimbursed as a nursing facility shall not be reduced. The reduction in this paragraph is in addition to the reduction under Laws 2009, chapter 79, article 8, section 79, paragraph (b), clause (11). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from November 1, 2009. new text end

Sec. 14.

new text begin ARTICLE EFFECTIVE DATE. new text end

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

ARTICLE 16

HEALTH CARE

Section 1.

Minnesota Statutes 2008, section 256.01, is amended by adding a subdivision to read:

new text begin Subd. 32. new text end

new text begin Review and evaluation of ongoing studies. new text end

new text begin The commissioner shall review all ongoing studies, reports, and program evaluations completed by the Department of Human Services for state fiscal years 2006 through 2010. For each item, the commissioner shall report the legislature's appropriation for that work, if any, and the actual reported cost of the completed work by the Department of Human Services. The commissioner shall make recommendations to the legislature about which studies, reports, and program evaluations required by law on an ongoing basis are duplicative, unnecessary, or obsolete. The commissioner shall repeat this review every five fiscal years. new text end

Sec. 2.

Minnesota Statutes 2009 Supplement, section 256.969, subdivision 2b, is amended to read:

Subd. 2b.

Operating payment rates.

In determining operating payment rates for admissions occurring on or after the rate year beginning January 1, 1991, and every two years after, or more frequently as determined by the commissioner, the commissioner shall obtain operating data from an updated base year and establish operating payment rates per admission for each hospital based on the cost-finding methods and allowable costs of the Medicare program in effect during the base year. Rates under the general assistance medical care, medical assistance, and MinnesotaCare programs shall not be rebased to more current data on January 1, 1997, January 1, 2005, for the first 24 months of the rebased period beginning January 1, 2009. For the first deleted text begin threedeleted text end new text begin 24 new text end months of the rebased period beginning January 1, 2011, rates shall new text begin not new text end be rebased deleted text begin at 74.25 percent of the full value of the rebasing percentage change. From April 1, 2011, to March 31, 2012, rates shall be rebased at 39.2 percent of the full value of the rebasing percentage changedeleted text end new text begin , except that a Minnesota long-term hospital shall be rebased effective January 1, 2011, based on its most recent Medicare cost report ending on or before September 1, 2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on December 31, 2010. For subsequent rate setting periods in which the base years are updated, a Minnesota long-term hospital's base year shall remain within the same period as other hospitalsnew text end . Effective deleted text begin April 1, 2012deleted text end new text begin January 1, 2013new text end , rates shall be rebased at full value. The base year operating payment rate per admission is standardized by the case mix index and adjusted by the hospital cost index, relative values, and disproportionate population adjustment. The cost and charge data used to establish operating rates shall only reflect inpatient services covered by medical assistance and shall not include property cost information and costs recognized in outlier payments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 3.

Minnesota Statutes 2009 Supplement, section 256.969, subdivision 3a, is amended to read:

Subd. 3a.

Payments.

(a) Acute care hospital billings under the medical assistance program must not be submitted until the recipient is discharged. However, the commissioner shall establish monthly interim payments for inpatient hospitals that have individual patient lengths of stay over 30 days regardless of diagnostic category. Except as provided in section 256.9693, medical assistance reimbursement for treatment of mental illness shall be reimbursed based on diagnostic classifications. Individual hospital payments established under this section and sections 256.9685, 256.9686, and 256.9695, in addition to third party and recipient liability, for discharges occurring during the rate year shall not exceed, in aggregate, the charges for the medical assistance covered inpatient services paid for the same period of time to the hospital. This payment limitation shall be calculated separately for medical assistance and general assistance medical care services. The limitation on general assistance medical care shall be effective for admissions occurring on or after July 1, 1991. Services that have rates established under subdivision 11 or 12, must be limited separately from other services. After consulting with the affected hospitals, the commissioner may consider related hospitals one entity and may merge the payment rates while maintaining separate provider numbers. The operating and property base rates per admission or per day shall be derived from the best Medicare and claims data available when rates are established. The commissioner shall determine the best Medicare and claims data, taking into consideration variables of recency of the data, audit disposition, settlement status, and the ability to set rates in a timely manner. The commissioner shall notify hospitals of payment rates by December 1 of the year preceding the rate year. The rate setting data must reflect the admissions data used to establish relative values. Base year changes from 1981 to the base year established for the rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase under subdivision 1. The commissioner may adjust base year cost, relative value, and case mix index data to exclude the costs of services that have been discontinued by the October 1 of the year preceding the rate year or that are paid separately from inpatient services. Inpatient stays that encompass portions of two or more rate years shall have payments established based on payment rates in effect at the time of admission unless the date of admission preceded the rate year in effect by six months or more. In this case, operating payment rates for services rendered during the rate year in effect and established based on the date of admission shall be adjusted to the rate year in effect by the hospital cost index.

(b) For fee-for-service admissions occurring on or after July 1, 2002, the total payment, before third-party liability and spenddown, made to hospitals for inpatient services is reduced by .5 percent from the current statutory rates.

(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before third-party liability and spenddown, is reduced five percent from the current statutory rates. Mental health services within diagnosis related groups 424 to 432, and facilities defined under subdivision 16 are excluded from this paragraph.

(d) In addition to the reduction in paragraphs (b) and (c), the total payment for fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for inpatient services before third-party liability and spenddown, is reduced 6.0 percent from the current statutory rates. Mental health services within diagnosis related groups 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. Notwithstanding section 256.9686, subdivision 7, for purposes of this paragraph, medical assistance does not include general assistance medical care. Payments made to managed care plans shall be reduced for services provided on or after January 1, 2006, to reflect this reduction.

(e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made to hospitals for inpatient services before third-party liability and spenddown, is reduced 3.46 percent from the current statutory rates. Mental health services with diagnosis related groups 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. Payments made to managed care plans shall be reduced for services provided on or after January 1, 2009, through June 30, 2009, to reflect this reduction.

(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2010, made to hospitals for inpatient services before third-party liability and spenddown, is reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis related groups 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. Payments made to managed care plans shall be reduced for services provided on or after July 1, 2009, through June 30, 2010, to reflect this reduction.

(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for fee-for-service admissions occurring on or after July 1, 2010, made to hospitals for inpatient services before third-party liability and spenddown, is reduced 1.79 percent from the current statutory rates. Mental health services with diagnosis related groups 424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph. Payments made to managed care plans shall be reduced for services provided on or after July 1, 2010, to reflect this reduction.

(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total payment for fee-for-service admissions occurring on or after July 1, 2009, made to hospitals for inpatient services before third-party liability and spenddown, is reduced one percent from the current statutory rates. Facilities defined under subdivision 16 are excluded from this paragraph. Payments made to managed care plans shall be reduced for services provided on or after October 1, 2009, to reflect this reduction.

new text begin (i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total payment for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for inpatient services before third-party liability and spenddown, is reduced 1.96 percent from the current statutory rates. Facilities defined under subdivision 16 are excluded from this paragraph. Payments made to managed care plans shall be reduced for services provided on or after January 1, 2011, to reflect this reduction. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011. new text end

Sec. 4.

Minnesota Statutes 2008, section 256B.04, subdivision 14a, is amended to read:

Subd. 14a.

Level of need determination.

Nonemergency medical transportation level of need determinations must be performed by a physician, a registered nurse working under direct supervision of a physician, a physician's assistant, a nurse practitioner, a licensed practical nurse, or a discharge planner. Nonemergency medical transportation level of need determinations must not be performed more than deleted text begin semiannuallydeleted text end new text begin annually new text end on any individual, unless the individual's circumstances have sufficiently changed so as to require a new level of need determination. Individuals residing in licensed nursing facilities are exempt from a level of need determination and are eligible for special transportation services until the individual no longer resides in a licensed nursing facility. If a person authorized by this subdivision to perform a level of need determination determines that an individual requires stretcher transportation, the individual is presumed to maintain that level of need until otherwise determined by a person authorized to perform a level of need determination, or for six months, whichever is sooner.

Sec. 5.

Minnesota Statutes 2008, section 256B.055, is amended by adding a subdivision to read:

new text begin Subd. 15. new text end

new text begin Adults without children. new text end

new text begin Medical assistance may be paid for a person who is: new text end

new text begin (1) at least age 21 and under age 65; new text end

new text begin (2) not pregnant; new text end

new text begin (3) not entitled to Medicare Part A or enrolled in Medicare Part B under Title XVIII of the Social Security Act; new text end

new text begin (4) not an adult in a family with children as defined in section 256L.01, subdivision 3a; and new text end

new text begin (5) not described in another subdivision of this section. new text end

Sec. 6.

Minnesota Statutes 2008, section 256B.056, subdivision 3, is amended to read:

Subd. 3.

Asset limitations for individuals and families.

new text begin (a) new text end To be eligible for medical assistance, a person must not individually own more than $3,000 in assets, or if a member of a household with two family members, husband and wife, or parent and child, the household must not own more than $6,000 in assets, plus $200 for each additional legal dependent. In addition to these maximum amounts, an eligible individual or family may accrue interest on these amounts, but they must be reduced to the maximum at the time of an eligibility redetermination. The accumulation of the clothing and personal needs allowance according to section 256B.35 must also be reduced to the maximum at the time of the eligibility redetermination. The value of assets that are not considered in determining eligibility for medical assistance is the value of those assets excluded under the supplemental security income program for aged, blind, and disabled persons, with the following exceptions:

(1) household goods and personal effects are not considered;

(2) capital and operating assets of a trade or business that the local agency determines are necessary to the person's ability to earn an income are not considered;

(3) motor vehicles are excluded to the same extent excluded by the supplemental security income program;

(4) assets designated as burial expenses are excluded to the same extent excluded by the supplemental security income program. Burial expenses funded by annuity contracts or life insurance policies must irrevocably designate the individual's estate as contingent beneficiary to the extent proceeds are not used for payment of selected burial expenses; and

(5) effective upon federal approval, for a person who no longer qualifies as an employed person with a disability due to loss of earnings, assets allowed while eligible for medical assistance under section 256B.057, subdivision 9, are not considered for 12 months, beginning with the first month of ineligibility as an employed person with a disability, to the extent that the person's total assets remain within the allowed limits of section 256B.057, subdivision 9, paragraph (c).

new text begin (b) No asset limit shall apply to persons eligible under section 256B.055, subdivision 15. new text end

Sec. 7.

Minnesota Statutes 2008, section 256B.056, subdivision 4, is amended to read:

Subd. 4.

Income.

(a) To be eligible for medical assistance, a person eligible under section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of the federal poverty guidelines. Effective January 1, 2000, and each successive January, recipients of supplemental security income may have an income up to the supplemental security income standard in effect on that date.

(b) To be eligible for medical assistance, families and children may have an income up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996, AFDC state plan. Effective July 1, 2000, the base AFDC standard in effect on July 16, 1996, shall be increased by three percent.

(c) Effective July 1, 2002, to be eligible for medical assistance, families and children may have an income up to 100 percent of the federal poverty guidelines for the family size.

(d) new text begin To be eligible for medical assistance under section 256B.055, subdivision 15, a person may have an income up to 75 percent of federal poverty guidelines for the family size.new text end

new text begin (e) new text end In computing income to determine eligibility of persons under paragraphs (a) to deleted text begin (c)deleted text end new text begin (d) new text end who are not residents of long-term care facilities, the commissioner shall disregard increases in income as required by Public Law Numbers 94-566, section 503; 99-272; and 99-509. Veterans aid and attendance benefits and Veterans Administration unusual medical expense payments are considered income to the recipient.

Sec. 8.

Minnesota Statutes 2008, section 256B.0625, subdivision 8, is amended to read:

Subd. 8.

Physical therapy.

Medical assistance covers physical therapy and related services, including specialized maintenance therapy. new text begin Authorization by the commissioner is required to provide medically necessary services to a recipient beyond any of the following onetime service thresholds, or a lower threshold where one has been established by the commissioner for a specified service: (1) 80 units of any approved CPT code other than modalities; (2) 20 modality sessions; and (3) three evaluations or reevaluations. new text end Services provided by a physical therapy assistant shall be reimbursed at the same rate as services performed by a physical therapist when the services of the physical therapy assistant are provided under the direction of a physical therapist who is on the premises. Services provided by a physical therapy assistant that are provided under the direction of a physical therapist who is not on the premises shall be reimbursed at 65 percent of the physical therapist rate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, for services provided through fee-for-service, and January 1, 2011, for services provided through managed care. new text end

Sec. 9.

Minnesota Statutes 2008, section 256B.0625, subdivision 8a, is amended to read:

Subd. 8a.

Occupational therapy.

Medical assistance covers occupational therapy and related services, including specialized maintenance therapy. new text begin Authorization by the commissioner is required to provide medically necessary services to a recipient beyond any of the following onetime service thresholds, or a lower threshold where one has been established by the commissioner for a specified service: (1) 120 units of any combination of approved CPT codes; and (2) two evaluations or reevaluations. new text end Services provided by an occupational therapy assistant shall be reimbursed at the same rate as services performed by an occupational therapist when the services of the occupational therapy assistant are provided under the direction of the occupational therapist who is on the premises. Services provided by an occupational therapy assistant that are provided under the direction of an occupational therapist who is not on the premises shall be reimbursed at 65 percent of the occupational therapist rate.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, for services provided through fee-for-service, and January 1, 2011, for services provided through managed care. new text end

Sec. 10.

Minnesota Statutes 2008, section 256B.0625, subdivision 8b, is amended to read:

Subd. 8b.

Speech language pathology and audiology services.

Medical assistance covers speech language pathology and related services, including specialized maintenance therapy. new text begin Authorization by the commissioner is required to provide medically necessary services to a recipient beyond any of the following onetime service thresholds, or a lower threshold where one has been established by the commissioner for a specified service: (1) 50 treatment sessions with any combination of approved CPT codes; and (2) one evaluation. new text end Medical assistance covers audiology services and related services. Services provided by a person who has been issued a temporary registration under section 148.5161 shall be reimbursed at the same rate as services performed by a speech language pathologist or audiologist as long as the requirements of section 148.5161, subdivision 3, are met.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, for services provided through fee-for-service, and January 1, 2011, for services provided through managed care. new text end

Sec. 11.

Minnesota Statutes 2008, section 256B.0625, is amended by adding a subdivision to read:

new text begin Subd. 8e. new text end

new text begin Chiropractic services. new text end

new text begin Payment for chiropractic services is limited to one annual evaluation and 12 visits per year unless prior authorization of a greater number of visits is obtained. new text end

Sec. 12.

Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 13h, is amended to read:

Subd. 13h.

Medication therapy management services.

(a) Medical assistance and general assistance medical care cover medication therapy management services for a recipient taking four or more prescriptions to treat or prevent two or more chronic medical conditions, or a recipient with a drug therapy problem that is identified or prior authorized by the commissioner that has resulted or is likely to result in significant nondrug program costs. The commissioner may cover medical therapy management services under MinnesotaCare if the commissioner determines this is cost-effective. For purposes of this subdivision, "medication therapy management" means the provision of the following pharmaceutical care services by a licensed pharmacist to optimize the therapeutic outcomes of the patient's medications:

(1) performing or obtaining necessary assessments of the patient's health status;

(2) formulating a medication treatment plan;

(3) monitoring and evaluating the patient's response to therapy, including safety and effectiveness;

(4) performing a comprehensive medication review to identify, resolve, and prevent medication-related problems, including adverse drug events;

(5) documenting the care delivered and communicating essential information to the patient's other primary care providers;

(6) providing verbal education and training designed to enhance patient understanding and appropriate use of the patient's medications;

(7) providing information, support services, and resources designed to enhance patient adherence with the patient's therapeutic regimens; and

(8) coordinating and integrating medication therapy management services within the broader health care management services being provided to the patient.

Nothing in this subdivision shall be construed to expand or modify the scope of practice of the pharmacist as defined in section 151.01, subdivision 27.

(b) To be eligible for reimbursement for services under this subdivision, a pharmacist must meet the following requirements:

(1) have a valid license issued under chapter 151;

(2) have graduated from an accredited college of pharmacy on or after May 1996, or completed a structured and comprehensive education program approved by the Board of Pharmacy and the American Council of Pharmaceutical Education for the provision and documentation of pharmaceutical care management services that has both clinical and didactic elements;

(3) be practicing in an ambulatory care setting as part of a multidisciplinary team or have developed a structured patient care process that is offered in a private or semiprivate patient care area that is separate from the commercial business that also occurs in the setting, or in home settings, excluding long-term care and group homes, if the service is ordered by the provider-directed care coordination team; and

(4) make use of an electronic patient record system that meets state standards.

(c) For purposes of reimbursement for medication therapy management services, the commissioner may enroll individual pharmacists as medical assistance and general assistance medical care providers. The commissioner may also establish contact requirements between the pharmacist and recipient, including limiting the number of reimbursable consultations per recipient.

(d) new text begin If there are no pharmacists who meet the requirements of paragraph (b) practicing within a reasonable geographic distance of the patient, a pharmacist who meets the requirements may provide the services via two-way interactive video. Reimbursement shall be at the same rates and under the same conditions that would otherwise apply to the services provided. To qualify for reimbursement under this paragraph, the pharmacist providing the services must meet the requirements of paragraph (b), and must be located within an ambulatory care setting approved by the commissioner. The patient must also be located within an ambulatory care setting approved by the commissioner. Services provided under this paragraph may not be transmitted into the patient's residence.new text end

new text begin (e) new text end The commissioner shall establish a pilot project for an intensive medication therapy management program for patients identified by the commissioner with multiple chronic conditions and a high number of medications who are at high risk of preventable hospitalizations, emergency room use, medication complications, and suboptimal treatment outcomes due to medication-related problems. For purposes of the pilot project, medication therapy management services may be provided in a patient's home or community setting, in addition to other authorized settings. The commissioner may waive existing payment policies and establish special payment rates for the pilot project. The pilot project must be designed to produce a net savings to the state compared to the estimated costs that would otherwise be incurred for similar patients without the program. The pilot project must begin by January 1, 2010, and end June 30, 2012.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 13.

Minnesota Statutes 2008, section 256B.0625, subdivision 18a, is amended to read:

Subd. 18a.

Access to medical services.

(a) Medical assistance reimbursement for meals for persons traveling to receive medical care may not exceed $5.50 for breakfast, $6.50 for lunch, or $8 for dinner.

(b) Medical assistance reimbursement for lodging for persons traveling to receive medical care may not exceed $50 per day unless prior authorized by the local agency.

(c) Medical assistance direct mileage reimbursement to the eligible person or the eligible person's driver may not exceed 20 cents per mile.

(d) Regardless of the number of employees that an enrolled health care provider may have, medical assistance covers sign and oral language interpreter services when provided by an enrolled health care provider during the course of providing a direct, person-to-person covered health care service to an enrolled recipient with limited English proficiency or who has a hearing loss and uses interpreting services.new text begin Coverage for face-to-face oral language interpreter services shall be provided only if the oral language interpreter used by the enrolled health care provider is listed in the registry or roster established under section 144.058.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011. new text end

Sec. 14.

Minnesota Statutes 2008, section 256B.0625, subdivision 31, is amended to read:

Subd. 31.

Medical supplies and equipment.

Medical assistance covers medical supplies and equipment. Separate payment outside of the facility's payment rate shall be made for wheelchairs and wheelchair accessories for recipients who are residents of intermediate care facilities for the developmentally disabled. Reimbursement for wheelchairs and wheelchair accessories for ICF/MR recipients shall be subject to the same conditions and limitations as coverage for recipients who do not reside in institutions. A wheelchair purchased outside of the facility's payment rate is the property of the recipient.new text begin The commissioner may set reimbursement rates for specified categories of medical supplies at levels below the Medicare payment rate.new text end

Sec. 15.

Minnesota Statutes 2008, section 256B.0625, is amended by adding a subdivision to read:

new text begin Subd. 54. new text end

new text begin Services provided in birth centers. new text end

new text begin (a) Medical assistance covers services provided in a licensed birth center by a licensed health professional if the service would otherwise be covered if provided in a hospital. new text end

new text begin (b) Facility services provided by a birth center shall be paid at the lower of billed charges or 70 percent of the statewide average for a facility payment rate made to a hospital for an uncomplicated vaginal birth as determined using the most recent calendar year for which complete claims data is available. If a recipient is transported from a birth center to a hospital prior to the delivery, the payment for facility services to the birth center shall be the lower of billed charges or 15 percent of the average facility payment made to a hospital for the services provided for an uncomplicated vaginal delivery as determined using the most recent calendar year for which complete claims data is available. new text end

new text begin (c) Nursery care services provided by a birth center shall be paid the lower of billed charges or 70 percent of the statewide average for a payment rate paid to a hospital for nursery care as determined by using the most recent calendar year for which complete claims data is available. new text end

new text begin (d) Professional services provided by traditional midwives licensed under chapter 147D shall be paid at the lower of billed charges or 100 percent of the rate paid to a physician performing the same services. If a recipient is transported from a birth center to a hospital prior to the delivery, a licensed traditional midwife who does not perform the delivery may not bill for any delivery services. Services are not covered if provided by an unlicensed traditional midwife. new text end

new text begin (e) The commissioner shall apply for any necessary waivers from the Centers for Medicare and Medicaid Services to allow birth centers and birth center providers to be reimbursed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 16.

Minnesota Statutes 2008, section 256B.0631, subdivision 1, is amended to read:

Subdivision 1.

Co-payments.

(a) Except as provided in subdivision 2, the medical assistance benefit plan shall include the following co-payments for all recipients, effective for services provided on or after October 1, 2003, and before January 1, 2009:

(1) $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;

(2) $3 for eyeglasses;

(3) $6 for nonemergency visits to a hospital-based emergency room; and

(4) $3 per brand-name drug prescription and $1 per generic drug prescription, subject to a $12 per month maximum for prescription drug co-payments. No co-payments shall apply to antipsychotic drugs when used for the treatment of mental illness.

(b) Except as provided in subdivision 2, the medical assistance benefit plan shall include the following co-payments for all recipients, effective for services provided on or after January 1, 2009:

(1) deleted text begin $6deleted text end new text begin $3.50new text end for nonemergency visits to a hospital-based emergency room;

(2) $3 per brand-name drug prescription and $1 per generic drug prescription, subject to a $7 per month maximum for prescription drug co-payments. No co-payments shall apply to antipsychotic drugs when used for the treatment of mental illness; and

(3) for individuals identified by the commissioner with income at or below 100 percent of the federal poverty guidelines, total monthly co-payments must not exceed five percent of family income. For purposes of this paragraph, family income is the total earned and unearned income of the individual and the individual's spouse, if the spouse is enrolled in medical assistance and also subject to the five percent limit on co-payments.

(c) Recipients of medical assistance are responsible for all co-payments in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011. new text end

Sec. 17.

Minnesota Statutes 2008, section 256B.0631, subdivision 3, is amended to read:

Subd. 3.

Collection.

(a) The medical assistance reimbursement to the provider shall be reduced by the amount of the co-payment, except that reimbursements shall not be reduced:

(1) once a recipient has reached the $12 per month maximum or the $7 per month maximum effective January 1, 2009, for prescription drug co-payments; or

(2) for a recipient identified by the commissioner under 100 percent of the federal poverty guidelines who has met their monthly five percent co-payment limit.

(b) The provider collects the co-payment from the recipient. Providers may not deny services to recipients who are unable to pay the co-payment.

(c) Medical assistance reimbursement to fee-for-service providers and payments to managed care plans shall not be increased as a result of the removal of deleted text begin thedeleted text end co-payments effective new text begin on or after new text end January 1, 2009.

Sec. 18.

Minnesota Statutes 2008, section 256B.0644, as amended by Laws 2010, chapter 200, article 1, section 6, is amended to read:

256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE PROGRAMS.

(a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a health maintenance organization, as defined in chapter 62D, must participate as a provider or contractor in the medical assistance program, general assistance medical care program, and MinnesotaCare as a condition of participating as a provider in health insurance plans and programs or contractor for state employees established under section 43A.18, the public employees insurance program under section 43A.316, for health insurance plans offered to local statutory or home rule charter city, county, and school district employees, the workers' compensation system under section 176.135, and insurance plans provided through the Minnesota Comprehensive Health Association under sections 62E.01 to 62E.19. The limitations on insurance plans offered to local government employees shall not be applicable in geographic areas where provider participation is limited by managed care contracts with the Department of Human Services.

(b) For providers other than health maintenance organizations, participation in the medical assistance program means that:

(1) the provider accepts new medical assistance, general assistance medical care, and MinnesotaCare patients;

(2) for providers other than dental service providers, at least 20 percent of the provider's patients are covered by medical assistance, general assistance medical care, and MinnesotaCare as their primary source of coverage; or

(3) for dental service providers, at least ten percent of the provider's patients are covered by medical assistance, general assistance medical care, and MinnesotaCare as their primary source of coverage, or the provider accepts new medical assistance and MinnesotaCare patients who are children with special health care needs. For purposes of this section, "children with special health care needs" means children up to age 18 who: (i) require health and related services beyond that required by children generally; and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional condition, including: bleeding and coagulation disorders; immunodeficiency disorders; cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other neurological diseases; visual impairment or deafness; Down syndrome and other genetic disorders; autism; fetal alcohol syndrome; and other conditions designated by the commissioner after consultation with representatives of pediatric dental providers and consumers.

(c) Patients seen on a volunteer basis by the provider at a location other than the provider's usual place of practice may be considered in meeting the participation requirement in this section. The commissioner shall establish participation requirements for health maintenance organizations. The commissioner shall provide lists of participating medical assistance providers on a quarterly basis to the commissioner of management and budget, the commissioner of labor and industry, and the commissioner of commerce. Each of the commissioners shall develop and implement procedures to exclude as participating providers in the program or programs under their jurisdiction those providers who do not participate in the medical assistance program. The commissioner of management and budget shall implement this section through contracts with participating health and dental carriers.

(d) deleted text begin Any hospital or other provider that is participating in a coordinated care delivery system under section 256D.031, subdivision 6, or receives payments from the uncompensated care pool under section 256D.031, subdivision 8, shall not refuse to provide services to any patient enrolled in general assistance medical care regardless of the availability or the amount of payment.deleted text end

deleted text begin (e) deleted text end For purposes of paragraphs (a) and (b), participation in the general assistance medical care program applies only to pharmacy providers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010. new text end

Sec. 19.

new text begin [256B.0755] HEALTH CARE DELIVERY SYSTEMS DEMONSTRATION PROJECT. new text end

new text begin Subdivision 1. new text end

new text begin Implementation. new text end

new text begin (a) The commissioner shall develop and authorize a demonstration project to test alternative and innovative health care delivery systems, including accountable care organizations that provide services to a specified patient population for an agreed upon total cost of care or risk-gain sharing payment arrangement. The commissioner shall develop a request for proposals for participation in the demonstration project in consultation with hospitals, primary care providers, health plans, and other key stakeholders. new text end

new text begin (b) In developing the request for proposals, the commissioner shall: new text end

new text begin (1) establish uniform statewide methods of forecasting utilization and cost of care for the appropriate Minnesota public program populations, to be used by the commissioner for the health care delivery system projects; new text end

new text begin (2) identify key indicators of quality, access, patient satisfaction, and other performance indicators that will be measured, in addition to indicators for measuring cost savings; new text end

new text begin (3) allow maximum flexibility to encourage innovation and variation so that a variety of provider collaborations are able to become health care delivery systems; new text end

new text begin (4) encourage and authorize different levels and types of financial risk; new text end

new text begin (5) encourage and authorize projects representing a wide variety of geographic locations, patient populations, provider relationships, and care coordination models; new text end

new text begin (6) encourage projects that involve close partnerships between the health care delivery system and counties and nonprofit agencies that provide services to patients enrolled with the health care delivery system, including social services, public health, mental health, community-based services, and continuing care; new text end

new text begin (7) encourage projects established by community hospitals, clinics, and other providers in rural communities; new text end

new text begin (8) identify required covered services for a total cost of care model or services considered in whole or partially in an analysis of utilization for a risk/gain sharing model; new text end

new text begin (9) establish a mechanism to monitor enrollment; new text end

new text begin (10) establish quality standards for the delivery system demonstrations; new text end

new text begin (11) encourage participation of privately insured population so as to create sufficient alignment in demonstration systems; and new text end

new text begin (12) coordinate projects with any coordinated care delivery systems established under section 256D.031. new text end

new text begin (c) To be eligible to participate in the demonstration project, a health care delivery system must: new text end

new text begin (1) provide required covered services and care coordination to recipients enrolled in the health care delivery system; new text end

new text begin (2) establish a process to monitor enrollment and ensure the quality of care provided; new text end

new text begin (3) in cooperation with counties and community social service agencies, coordinate the delivery of health care services with existing social services programs; new text end

new text begin (4) provide a system for advocacy and consumer protection; and new text end

new text begin (5) adopt innovative and cost-effective methods of care delivery and coordination, which may include the use of allied health professionals, telemedicine, patient educators, care coordinators, and community health workers. new text end

new text begin (d) A health care delivery system demonstration may be formed by the following groups of providers of services and suppliers if they have established a mechanism for shared governance: new text end

new text begin (1) professionals in group practice arrangements; new text end

new text begin (2) networks of individual practices of professionals; new text end

new text begin (3) partnerships or joint venture arrangements between hospitals and health care professionals; new text end

new text begin (4) hospitals employing professionals; and new text end

new text begin (5) other groups of providers of services and suppliers as the commissioner determines appropriate. new text end

new text begin A managed care plan or county-based purchasing plan may participate in this demonstration in collaboration with one or more of the entities listed in clauses (1) to (5). new text end

new text begin A health care delivery system may contract with a managed care plan or a county-based purchasing plan to provide administrative services, including the administration of a payment system using the payment methods established by the commissioner for health care delivery systems. new text end

new text begin (e) The commissioner may require a health care delivery system to enter into additional third-party contractual relationships for the assessment of risk and purchase of stop loss insurance or another form of insurance risk management related to the delivery of care described in paragraph (c). new text end

new text begin Subd. 2. new text end

new text begin Enrollment. new text end

new text begin (a) Individuals eligible for medical assistance or MinnesotaCare shall be eligible for enrollment in a health care delivery system. new text end

new text begin (b) Eligible applicants and recipients may enroll in a health care delivery system if a system serves the county in which the applicant or recipient resides. If more than one health care delivery system serves a county, the applicant or recipient shall be allowed to choose among the delivery systems. The commissioner may assign an applicant or recipient to a health care delivery system if a health care delivery system is available and no choice has been made by the applicant or recipient. new text end

new text begin Subd. 3. new text end

new text begin Accountability. new text end

new text begin (a) Health care delivery systems must accept responsibility for the quality of care based on standards established under subdivision 1, paragraph (b), clause (10), and the cost of care or utilization of services provided to its enrollees under subdivision 1, paragraph (b), clause (1). new text end

new text begin (b) A health care delivery system may contract and coordinate with providers and clinics for the delivery of services and shall contract with community health clinics, federally qualified health centers, community mental health centers or programs, and rural clinics to the extent practicable. new text end

new text begin Subd. 4. new text end

new text begin Payment system. new text end

new text begin (a) In developing a payment system for health care delivery systems, the commissioner shall establish a total cost of care benchmark or a risk/gain sharing payment model to be paid for services provided to the recipients enrolled in a health care delivery system. new text end

new text begin (b) The payment system may include incentive payments to health care delivery systems that meet or exceed annual quality and performance targets realized through the coordination of care. new text end

new text begin (c) An amount equal to the savings realized to the general fund as a result of the demonstration project shall be transferred each fiscal year to the health care access fund. new text end

new text begin Subd. 5. new text end

new text begin Outpatient prescription drug coverage. new text end

new text begin Outpatient prescription drug coverage may be provided through accountable care organizations only if the delivery method qualifies for federal prescription drug rebates. new text end

new text begin Subd. 6. new text end

new text begin Federal approval. new text end

new text begin The commissioner shall apply for any federal waivers or other federal approval required to implement this section. The commissioner shall also apply for any applicable grant or demonstration under the Patient Protection and Affordable Health Care Act, Public Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law 111-152, that would further the purposes of or assist in the establishment of accountable care organizations. new text end

new text begin Subd. 7. new text end

new text begin Expansion. new text end

new text begin The commissioner shall explore the expansion of the demonstration project to include additional medical assistance and MinnesotaCare enrollees, and shall seek participation of Medicare in demonstration projects. The commissioner shall seek to include participation of privately insured persons and Medicare recipients in the health care delivery demonstration. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011. new text end

Sec. 20.

new text begin [256B.0756] HENNEPIN AND RAMSEY COUNTIES PILOT PROGRAM. new text end

new text begin (a) The commissioner, upon federal approval of a new waiver request or amendment of an existing demonstration, may establish a pilot program in Hennepin County or Ramsey County, or both, to test alternative and innovative integrated health care delivery networks. new text end

new text begin (b) Individuals eligible for the pilot program shall be individuals who are eligible for medical assistance under Minnesota Statutes, section 256B.055, subdivision 15, and who reside in Hennepin County or Ramsey County. new text end

new text begin (c) Individuals enrolled in the pilot shall be enrolled in an integrated health care delivery network in their county of residence. The integrated health care delivery network in Hennepin County shall be a network, such as an accountable care organization or a community-based collaborative care network, created by or including Hennepin County Medical Center. The integrated health care delivery network in Ramsey County shall be a network, such as an accountable care organization or community-based collaborative care network, created by or including Regions Hospital. new text end

new text begin (d) The commissioner shall cap pilot program enrollment at 7,000 enrollees for Hennepin County and 3,500 enrollees for Ramsey County. new text end

new text begin (e) In developing a payment system for the pilot programs, the commissioner shall establish a total cost of care for the recipients enrolled in the pilot programs that equals the cost of care that would otherwise be spent for these enrollees in the prepaid medical assistance program. new text end

new text begin (f) Counties may transfer funds necessary to support the nonfederal share of payments for integrated health care delivery networks in their county. Such transfers per county shall not exceed 15 percent of the expected expenses for county enrollees. new text end

new text begin (g) The commissioner shall apply to the federal government for, or as appropriate, cooperate with counties, providers, or other entities that are applying for any applicable grant or demonstration under the Patient Protection and Affordable Health Care Act, Public Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law 111-152, that would further the purposes of or assist in the creation of an integrated health care delivery network for the purposes of this subdivision, including, but not limited to, a global payment demonstration or the community-based collaborative care network grants. new text end

Sec. 21.

Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a, is amended to read:

Subd. 5a.

Managed care contracts.

(a) Managed care contracts under this section and sections 256L.12 and 256D.03, shall be entered into or renewed on a calendar year basis beginning January 1, 1996. Managed care contracts which were in effect on June 30, 1995, and set to renew on July 1, 1995, shall be renewed for the period July 1, 1995 through December 31, 1995 at the same terms that were in effect on June 30, 1995. The commissioner may issue separate contracts with requirements specific to services to medical assistance recipients age 65 and older.

(b) A prepaid health plan providing covered health services for eligible persons pursuant to chapters 256B, 256D, and 256L, is responsible for complying with the terms of its contract with the commissioner. Requirements applicable to managed care programs under chapters 256B, 256D, and 256L, established after the effective date of a contract with the commissioner take effect when the contract is next issued or renewed.

(c) Effective for services rendered on or after January 1, 2003, the commissioner shall withhold five percent of managed care plan payments under this section and county-based purchasing deleted text begin plan's payment ratedeleted text end new text begin plan paymentsnew text end under section 256B.692 for the prepaid medical assistance and general assistance medical care programs pending completion of performance targets. Each performance target must be quantifiable, objective, measurable, and reasonably attainable, except in the case of a performance target based on a federal or state law or rule. Criteria for assessment of each performance target must be outlined in writing prior to the contract effective date. The managed care plan must demonstrate, to the commissioner's satisfaction, that the data submitted regarding attainment of the performance target is accurate. The commissioner shall periodically change the administrative measures used as performance targets in order to improve plan performance across a broader range of administrative services. The performance targets must include measurement of plan efforts to contain spending on health care services and administrative activities. The commissioner may adopt plan-specific performance targets that take into account factors affecting only one plan, including characteristics of the plan's enrollee population. The withheld funds must be returned no sooner than July of the following year if performance targets in the contract are achieved. The commissioner may exclude special demonstration projects under subdivision 23.

(d) Effective for services rendered on or after January 1, 2009, through December 31, 2009, the commissioner shall withhold three percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance and general assistance medical care programs. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

The return of the withhold under this paragraph is not subject to the requirements of paragraph (c).

(e) Effective for services provided on or after January 1, 2010, the commissioner shall require that managed care plans use the assessment and authorization processes, forms, timelines, standards, documentation, and data reporting requirements, protocols, billing processes, and policies consistent with medical assistance fee-for-service or the Department of Human Services contract requirements consistent with medical assistance fee-for-service or the Department of Human Services contract requirements for all personal care assistance services under section 256B.0659.

(f) Effective for services rendered on or after January 1, 2010, through December 31, 2010, the commissioner shall withhold 3.5 percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

new text begin (g) Effective for services rendered on or after January 1, 2011, the commissioner shall include as part of the performance targets described in paragraph (c) a reduction in the health plan's emergency room utilization rate for state health care program enrollees by a measurable rate of five percent from the plan's utilization rate for state health care program enrollees for the previous calendar year. new text end

new text begin The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following calendar year if the managed care plan demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate was achieved. new text end

new text begin The withhold described in this paragraph shall continue for each consecutive contract period until the plan's emergency room utilization rate for state health care program enrollees is reduced by 25 percent of the plan's emergency room utilization rate for state health care program enrollees for calendar year 2009. Hospitals shall cooperate with the health plans in meeting this performance target and shall accept payment withholds that may be returned to the hospitals if the performance target is achieved. The commissioner shall structure the withhold so that the commissioner returns a portion of the withheld funds in amounts commensurate with achieved reductions in utilization less than the targeted amount. The withhold in this paragraph does not apply to county-based purchasing plans. new text end

deleted text begin (g)deleted text end new text begin (h)new text end Effective for services rendered on or after January 1, 2011, through December 31, 2011, the commissioner shall withhold four percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

deleted text begin (h)deleted text end new text begin (i)new text end Effective for services rendered on or after January 1, 2012, through December 31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

deleted text begin (i)deleted text end new text begin (j)new text end Effective for services rendered on or after January 1, 2013, through December 31, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance program. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

deleted text begin (j)deleted text end new text begin (k)new text end Effective for services rendered on or after January 1, 2014, the commissioner shall withhold three percent of managed care plan payments under this section and county-based purchasing plan payments under section 256B.692 for the prepaid medical assistance and prepaid general assistance medical care programs. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year. The commissioner may exclude special demonstration projects under subdivision 23.

deleted text begin (k)deleted text end new text begin (l)new text end A managed care plan or a county-based purchasing plan under section 256B.692 may include as admitted assets under section 62D.044 any amount withheld under this section that is reasonably expected to be returned.

deleted text begin (l)deleted text end new text begin (m)new text end Contracts between the commissioner and a prepaid health plan are exempt from the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph (a), and 7.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 22.

Minnesota Statutes 2008, section 256B.69, is amended by adding a subdivision to read:

new text begin Subd. 5l. new text end

new text begin Actuarial soundness. new text end

new text begin (a) Rates paid to managed care plans and county-based purchasing plans shall satisfy requirements for actuarial soundness. In order to comply with this subdivision, the rates must: new text end

new text begin (1) be neither inadequate nor excessive; new text end

new text begin (2) satisfy federal requirements; new text end

new text begin (3) in the case of contracts with incentive arrangements, not exceed 105 percent of the approved capitation payments attributable to the enrollees or services covered by the incentive arrangement; new text end

new text begin (4) be developed in accordance with generally accepted actuarial principles and practices; new text end

new text begin (5) be appropriate for the populations to be covered and the services to be furnished under the contract; and new text end

new text begin (6) be certified as meeting the requirements of federal regulations by actuaries who meet the qualification standards established by the American Academy of Actuaries and follow the practice standards established by the Actuarial Standards Board. new text end

new text begin (b) Each year within 30 days of the establishment of plan rates, the commissioner shall report to the chairs and ranking minority members of the senate Health and Human Services Budget Division and the house of representatives Health Care and Human Services Finance Division to certify how each of these conditions have been met by the new payment rates. new text end

Sec. 23.

Minnesota Statutes 2008, section 256B.69, subdivision 27, is amended to read:

Subd. 27.

Information for persons with limited English-language proficiency.

Managed care contracts entered into under this section and deleted text begin sections 256D.03, subdivision 4, paragraph (c), anddeleted text end new text begin section new text end 256L.12 must require demonstration providers to provide language assistance to enrollees that ensures meaningful access to its programs and services according to Title VI of the Civil Rights Act and federal regulations adopted under that law or any guidance from the United States Department of Health and Human Services.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2010. new text end

Sec. 24.

Minnesota Statutes 2008, section 256B.692, subdivision 1, is amended to read:

Subdivision 1.

In general.

County boards or groups of county boards may elect to purchase or provide health care services on behalf of persons eligible for medical assistance deleted text begin and general assistance medical caredeleted text end who would otherwise be required to or may elect to participate in the prepaid medical assistance deleted text begin or prepaid general assistance medical care programsdeleted text end according to deleted text begin sectionsdeleted text end new text begin section new text end 256B.69 deleted text begin and 256D.03deleted text end . Counties that elect to purchase or provide health care under this section must provide all services included in prepaid managed care programs according to deleted text begin sectionsdeleted text end new text begin section new text end 256B.69, subdivisions 1 to 22deleted text begin , and 256D.03deleted text end . County-based purchasing under this section is governed by section 256B.69, unless otherwise provided for under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2010. new text end

Sec. 25.

Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is amended to read:

Subdivision 1.

Physician 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; and

(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.

(b) 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. The increases in this paragraph shall be implemented January 1, 2000, for managed care.

(c) Effective for services rendered on or after July 1, 2009, payment rates for physician and professional services shall be reduced by five percent over the rates in effect on June 30, 2009. This reduction deleted text begin doesdeleted text end new text begin and the reductions in paragraph (d) do new text end not apply to office or other outpatient visits, preventive medicine visits and family planning visits billed by physicians, advanced practice nurses, or physician assistants in a family planning agency or in one of the following primary care practices: general practice, general internal medicine, general pediatrics, general geriatrics, and family medicine. This reduction deleted text begin doesdeleted text end new text begin and the reductions in paragraph (d) do new text end not apply to federally qualified health centers, rural health centers, and Indian health services. Effective October 1, 2009, payments made to managed care plans and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment reduction described in this paragraph.

new text begin (d) Effective for services rendered on or after July 1, 2010, payment rates for physician and professional services shall be reduced an additional seven percent over the five percent reduction in rates described in paragraph (c). This additional reduction does not apply to physical therapy services, occupational therapy services, and speech pathology and related services provided on or after July 1, 2010. This additional reduction does not apply to physician services billed by a psychiatrist or an advanced practice nurse with a specialty in mental health. Effective October 1, 2010, payments made to managed care plans and county-based purchasing plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment reduction described in this paragraph. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 26.

Minnesota Statutes 2008, section 256B.76, subdivision 2, is amended to read:

Subd. 2.

Dental reimbursement.

(a) 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; and

(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.

(b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.

(c) 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.

(d) 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 (1) the submitted charge, or (2) 85 percent of median 1999 charges.

(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1, 2000, for managed care.

new text begin (f) Effective for dental services rendered on or after October 1, 2010, by a state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based on the Medicare principles of reimbursement. This payment shall be effective for services rendered on or after January 1, 2011, to recipients enrolled in managed care plans or county-based purchasing plans. new text end

new text begin (g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal year, a supplemental state payment equal to the difference between the total payments in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated services for the operation of the dental clinics. new text end

new text begin (h) If the cost-based payment system for state-operated dental clinics described in paragraph (f) does not receive federal approval, then state-operated dental clinics shall be designated as critical access dental providers under subdivision 4, paragraph (b), and shall receive the critical access dental reimbursement rate as described under subdivision 4, paragraph (a). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 27.

Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:

Subd. 4.

Critical access dental providers.

new text begin (a) new text end Effective for dental services rendered on or after January 1, 2002, the commissioner shall increase reimbursements to dentists and dental clinics deemed by the commissioner to be critical access dental providers. For dental services rendered on or after July 1, 2007, the commissioner shall increase reimbursement by 30 percent above the reimbursement rate that would otherwise be paid to the critical access dental provider. The commissioner shall pay the deleted text begin health plan companiesdeleted text end new text begin managed care plans and county-based purchasing plans new text end in amounts sufficient to reflect increased reimbursements to critical access dental providers as approved by the commissioner. deleted text begin In determining which dentists and dental clinics shall be deemed critical access dental providers, the commissioner shall review:deleted text end

new text begin (b) The commissioner shall designate the following dentists and dental clinics as critical access dental providers: new text end

(1) deleted text begin 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 coveragedeleted text end new text begin nonprofit community clinics that:new text end

new text begin (i) have nonprofit status in accordance with chapter 317A; new text end

new text begin (ii) have tax exempt status in accordance with the Internal Revenue Code, section 501(c)(3); new text end

new text begin (iii) are established to provide oral health services to patients who are low income, uninsured, have special needs, and are underserved; new text end

new text begin (iv) have professional staff familiar with the cultural background of the clinic's patients; new text end

new text begin (v) charge for services on a sliding fee scale designed to provide assistance to low-income patients based on current poverty income guidelines and family size; new text end

new text begin (vi) do not restrict access or services because of a patient's financial limitations or public assistance status; and new text end

new text begin (vii) have free care available as needednew text end ;

(2) deleted text begin 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 coveragedeleted text end new text begin federally qualified health centers, rural health clinics, and public health clinicsnew text end ; deleted text begin anddeleted text end

(3) deleted text begin whether the level of services provided by the dentist or dental clinic is critical to maintaining adequate levels of patient access within the service areadeleted text end new text begin county owned and operated hospital-based dental clinics;new text end

new text begin (4) a dental clinic or dental group owned and operated by a nonprofit corporation in accordance with chapter 317A with more than 10,000 patient encounters per year with patients who are uninsured or covered by medical assistance, general assistance medical care, or MinnesotaCare; and new text end

new text begin (5) a dental clinic associated with an oral health or dental education program operated by the University of Minnesota or an institution within the Minnesota State Colleges and Universities systemnew text end .

deleted text begin In the absence of a critical access dental provider in a service area,deleted text end new text begin (c) new text end 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 EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 28.

Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read:

256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.

(a) Effective for services provided on or after July 1, 2009, total payments for basic care services, shall be reduced by three percent, prior to third-party liability and spenddown calculation.new text begin Effective July 1, 2010, the commissioner shall classify physical therapy services, occupational therapy services, and speech language pathology and related services as basic care services. The reduction in this paragraph shall apply to physical therapy services, occupational therapy services, and speech language pathology and related services provided on or after July 1, 2010. new text end

new text begin (b) new text end Payments made to managed care plans and county-based purchasing plans shall be reduced for services provided on or after October 1, 2009, to reflect deleted text begin thisdeleted text end new text begin the new text end reductionnew text begin effective July 1, 2009, and payments made to the plans shall be reduced effective October 1, 2010, to reflect the reduction effective July 1, 2010new text end .

deleted text begin (b)deleted text end new text begin (c) new text end This section does not apply to physician and professional services, inpatient hospital services, family planning services, mental health services, dental services, prescription drugs, medical transportation, federally qualified health centers, rural health centers, Indian health services, and Medicare cost-sharing.

Sec. 29.

new text begin [256B.767] MEDICARE PAYMENT LIMIT. new text end

new text begin (a) Effective for services rendered on or after July 1, 2010, fee-for-service payment rates for physician and professional services under section 256B.76, subdivision 1, and basic care services subject to the rate reduction specified in section 256B.766, shall not exceed the Medicare payment rate for the applicable service, as adjusted for any changes in Medicare payment rates after July 1, 2010. The commissioner shall implement this section after any other rate adjustment that is effective July 1, 2010, and shall reduce rates under this section by first reducing or eliminating provider rate add-ons. new text end

new text begin (b) This section does not apply to services provided by advanced practice certified nurse midwives licensed under chapter 148 or traditional midwives licensed under chapter 147D. Notwithstanding this exemption, medical assistance fee-for-service payment rates for advanced practice certified nurse midwives and licensed traditional midwives shall equal and shall not exceed the medical assistance payment rate to physicians for the applicable service. new text end

new text begin (c) This section does not apply to mental health services or physician services billed by a psychiatrist or an advanced practice registered nurse with a specialty in mental health. new text end

Sec. 30.

Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 3, as amended by Laws 2010, chapter 200, article 1, section 11, is amended to read:

Subd. 3.

General assistance medical care; eligibility.

(a) Beginning April 1, 2010, the general assistance medical care program shall be administered according to section 256D.031, unless otherwise stated, except for outpatient prescription drug coverage, which shall continue to be administered under this section and funded under section 256D.031, subdivision 9, beginning June 1, 2010.

(b) Outpatient prescription drug coverage under general assistance medical care is limited to prescription drugs that:

(1) are covered under the medical assistance program as described in section 256B.0625, subdivisions 13 and 13d; and

(2) are provided by manufacturers that have fully executed general assistance medical care rebate agreements with the commissioner and comply with the agreements. Outpatient prescription drug coverage under general assistance medical care must conform to coverage under the medical assistance program according to section 256B.0625, subdivisions 13 to deleted text begin 13gdeleted text end new text begin 13hnew text end .

(c) Outpatient prescription drug coverage does not include drugs administered in a clinic or other outpatient setting.

new text begin (d) For the period beginning April 1, 2010, to May 31, 2010, general assistance medical care covers the services listed in subdivision 4. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2010. new text end

Sec. 31.

Minnesota Statutes 2008, section 256D.03, subdivision 3b, is amended to read:

Subd. 3b.

Cooperation.

deleted text begin (a)deleted text end General assistance deleted text begin or general assistance medical caredeleted text end applicants and recipients must cooperate with the state and local agency to identify potentially liable third-party payors and assist the state in obtaining third-party payments. Cooperation includes identifying any third party who may be liable for care and services provided under this chapter to the applicant, recipient, or any other family member for whom application is made and providing relevant information to assist the state in pursuing a potentially liable third party. deleted text begin General assistance medical care applicants and recipients must cooperate by providing information about any group health plan in which they may be eligible to enroll. They must cooperate with the state and local agency in determining if the plan is cost-effective. For purposes of this subdivision, coverage provided by the Minnesota Comprehensive Health Association under chapter 62E shall not be considered group health plan coverage or cost-effective by the state and local agency. If the plan is determined cost-effective and the premium will be paid by the state or local agency or is available at no cost to the person, they must enroll or remain enrolled in the group health plan. Cost-effective insurance premiums approved for payment by the state agency and paid by the local agency are eligible for reimbursement according to subdivision 6.deleted text end

deleted text begin (b) Effective for all premiums due on or after June 30, 1997, general assistance medical care does not cover premiums that a recipient is required to pay under a qualified or Medicare supplement plan issued by the Minnesota Comprehensive Health Association. General assistance medical care shall continue to cover premiums for recipients who are covered under a plan issued by the Minnesota Comprehensive Health Association on June 30, 1997, for a period of six months following receipt of the notice of termination or until December 31, 1997, whichever is later. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 32.

Minnesota Statutes 2008, section 256D.031, subdivision 5, as added by Laws 2010, chapter 200, article 1, section 12, subdivision 5, is amended to read:

Subd. 5.

Payment rates and contract modification; April 1, 2010, to May 31, 2010.

(a) For the period April 1, 2010, to May 31, 2010, general assistance medical care shall be paid on a fee-for-service basis. Fee-for-service payment rates for services other than outpatient prescription drugs shall be set at 37 percent of the payment rate in effect on March 31, 2010.

(b) Outpatient prescription drugs covered under section 256D.03, subdivision 3, provided on or after April 1, 2010, to May 31, 2010, shall be paid on a fee-for-service basis according to section 256B.0625, subdivisions 13 to 13g.

new text begin (c) If section 256B.055, subdivision 15, and section 256B.056, subdivisions 3 and 4 are implemented effective July 1, 2010: new text end

new text begin (1) general assistance medical care must be paid on a fee-for-service basis for the period June 1 to June 30, 2010; new text end

new text begin (2) fee-for-service payment rates for services other than outpatient prescription drugs must be set at 27 percent of the payment rate in effect on March 31, 2010; and new text end

new text begin (3) outpatient prescription drugs considered under section 256D.03, subdivision 3, must be paid on a fee-for-service basis according to section 256B.0625, subdivisions 13 to 13g. 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. 33.

Minnesota Statutes 2009 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;

(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; and

(5) $6 for nonemergency visits to a hospital-based emergency roomnew text begin for services provided through December 31, 2010, and $3.50 effective January 1, 2011new text end .

(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of children under the age of 21.

(c) Paragraph (a) does not apply to pregnant women and children under the age of 21.

(d) Paragraph (a), clause (4), does not apply to mental health services.

(e) Adult enrollees with family gross income that exceeds 200 percent of the federal poverty guidelines or 215 percent of the federal poverty guidelines on or after July 1, 2009, 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.

(f) 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 (g) MinnesotaCare reimbursements to fee-for-service providers and payments to managed care plans or county-based purchasing plans shall not be increased as a result of the reduction of the co-payments in paragraph (a), clause (5), effective January 1, 2011. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 34.

Minnesota Statutes 2008, section 256L.11, subdivision 6, is amended to read:

Subd. 6.

Enrollees 18 or older.

Payment by the MinnesotaCare program for inpatient hospital services provided to MinnesotaCare enrollees eligible under section 256L.04, subdivision 7, or who qualify under section 256L.04, subdivisions 1 and 2, with family gross income that exceeds 175 percent of the federal poverty guidelines and who are not pregnant, who are 18 years old or older on the date of admission to the inpatient hospital must be in accordance with paragraphs (a) and (b). Payment for adults who are not pregnant and are eligible under section 256L.04, subdivisions 1 and 2, and whose incomes are equal to or less than 175 percent of the federal poverty guidelines, shall be as provided for under paragraph (c).

(a) If the medical assistance rate minus any co-payment required under section 256L.03, subdivision 4, is less than or equal to the amount remaining in the enrollee's benefit limit under section 256L.03, subdivision 3, payment must be the medical assistance rate minus any co-payment required under section 256L.03, subdivision 4. The hospital must not seek payment from the enrollee in addition to the co-payment. The MinnesotaCare payment plus the co-payment must be treated as payment in full.

(b) If the medical assistance rate minus any co-payment required under section 256L.03, subdivision 4, is greater than the amount remaining in the enrollee's benefit limit under section 256L.03, subdivision 3, payment must be the lesser of:

(1) the amount remaining in the enrollee's benefit limit; or

(2) charges submitted for the inpatient hospital services less any co-payment established under section 256L.03, subdivision 4.

The hospital may seek payment from the enrollee for the amount by which usual and customary charges exceed the payment under this paragraph. If payment is reduced under section 256L.03, subdivision 3, paragraph (b), the hospital may not seek payment from the enrollee for the amount of the reduction.

(c) deleted text begin For admissions occurring during the period of July 1, 1997, through June 30, 1998, for adults who are not pregnant and are eligible under section 256L.04, subdivisions 1 and 2, and whose incomes are equal to or less than 175 percent of the federal poverty guidelines, the commissioner shall pay hospitals directly, up to the medical assistance payment rate, for inpatient hospital benefits in excess of the $10,000 annual inpatient benefit limit.deleted text end new text begin For admissions occurring on or after July 1, 2011, for single adults and households without children who are eligible under section 256L.04, subdivision 7, the commissioner shall pay hospitals directly, up to the medical assistance payment rate, for inpatient hospital benefits up to the $10,000 annual inpatient benefit limit, minus any co-payment required under section 256L.03, subdivision 5.new text end

Sec. 35.

Minnesota Statutes 2008, section 256L.07, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Firefighters; volunteer ambulance attendants. new text end

new text begin (a) For purposes of this subdivision, "qualified individual" means: new text end

new text begin (1) a volunteer firefighter with a department as defined in section 299N.01, subdivision 2, who has passed the probationary period; and new text end

new text begin (2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15. new text end

new text begin (b) A qualified individual who documents to the satisfaction of the commissioner status as a qualified individual by completing and submitting a one-page form developed by the commissioner is eligible for MinnesotaCare without meeting other eligibility requirements of this chapter, but must pay premiums equal to the average expected capitation rate for adults with no children paid under section 256L.12. Individuals eligible under this subdivision shall receive coverage for the benefit set provided to adults with no children. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective April 1, 2011. new text end

Sec. 36.

Minnesota Statutes 2008, section 256L.12, subdivision 5, is amended to read:

Subd. 5.

Eligibility for other state programs.

MinnesotaCare enrollees who become eligible for medical assistance deleted text begin or general assistance medical caredeleted text end will remain in the same managed care plan if the managed care plan has a contract for that population. deleted text begin Effective January 1, 1998,deleted text end MinnesotaCare enrollees who were formerly eligible for general assistance medical care pursuant to section 256D.03, subdivision 3, within six months of MinnesotaCare enrollment and were enrolled in a prepaid health plan pursuant to section 256D.03, subdivision 4, paragraph (c), must remain in the same managed care plan if the managed care plan has a contract for that population. Managed care plans must participate in the MinnesotaCare deleted text begin and general assistance medical care programsdeleted text end new text begin program new text end under a contract with the Department of Human Services in service areas where they participate in the medical assistance program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2010. new text end

Sec. 37.

Minnesota Statutes 2008, section 256L.12, subdivision 9, is amended to read:

Subd. 9.

Rate setting; performance withholds.

(a) Rates will be prospective, per capita, where possible. The commissioner may allow health plans to arrange for inpatient hospital services on a risk or nonrisk basis. The commissioner shall consult with an independent actuary to determine appropriate rates.

(b)deleted text begin For services rendered on or after January 1, 2003, to December 31, 2003, the commissioner shall withhold .5 percent of managed care plan payments under this section pending completion of performance targets. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following year if performance targets in the contract are achieved. A managed care plan may include as admitted assets under section 62D.044 any amount withheld under this paragraph that is reasonably expected to be returned. deleted text end

deleted text begin (c)deleted text end For services rendered on or after January 1, 2004, the commissioner shall withhold five percent of managed care plan payments new text begin and county-based purchasing plan payments new text end under this section pending completion of performance targets. Each performance target must be quantifiable, objective, measurable, and reasonably attainable, except in the case of a performance target based on a federal or state law or rule. Criteria for assessment of each performance target must be outlined in writing prior to the contract effective date. The managed care plan must demonstrate, to the commissioner's satisfaction, that the data submitted regarding attainment of the performance target is accurate. The commissioner shall periodically change the administrative measures used as performance targets in order to improve plan performance across a broader range of administrative services. The performance targets must include measurement of plan efforts to contain spending on health care services and administrative activities. The commissioner may adopt plan-specific performance targets that take into account factors affecting only one plan, such as characteristics of the plan's enrollee population. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following calendar year if performance targets in the contract are achieved. deleted text begin A managed care plan or a county-based purchasing plan under section 256B.692 may include as admitted assets under section 62D.044 any amount withheld under this paragraph that is reasonably expected to be returned.deleted text end

new text begin (c) For services rendered on or after January 1, 2011, the commissioner shall withhold an additional three percent of managed care plan or county-based purchasing plan payments under this section. The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following calendar year. The return of the withhold under this paragraph is not subject to the requirements of paragraph (b). new text end

new text begin (d) Effective for services rendered on or after January 1, 2011, the commissioner shall include as part of the performance targets described in paragraph (b) a reduction in the plan's emergency room utilization rate for state health care program enrollees by a measurable rate of five percent from the plan's utilization rate for the previous calendar year. new text end

new text begin The withheld funds must be returned no sooner than July 1 and no later than July 31 of the following calendar year if the managed care plan demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate was achieved. new text end

new text begin The withhold described in this paragraph shall continue for each consecutive contract period until the plan's emergency room utilization rate for state health care program enrollees is reduced by 25 percent of the plan's emergency room utilization rate for state health care program enrollees for calendar year 2009. Hospitals shall cooperate with the health plans in meeting this performance target and shall accept payment withholds that may be returned to the hospitals if the performance target is achieved. The commissioner shall structure the withhold so that the commissioner returns a portion of the withheld funds in amounts commensurate with achieved reductions in utilization less than the targeted amount. The withhold described in this paragraph does not apply to county-based purchasing plans. new text end

new text begin (e) A managed care plan or a county-based purchasing plan under section 256B.692 may include as admitted assets under section 62D.044 any amount withheld under this section that is reasonably expected to be returned. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 38.

Laws 2009, chapter 79, article 5, section 75, subdivision 1, is amended to read:

Subdivision 1.

Medical assistance coverage.

The commissioner of human services shall establish a demonstration project to provide additional medical assistance coverage for a maximum of 200 American Indian children in Minneapolis, St. Paul, and Duluth who are burdened by health disparities associated with the cumulative health impact of toxic environmental exposures. Under this demonstration project, the additional medical assistance coverage for this population must include, but is not limited to, new text begin home environmental assessments for triggers of asthma, and in-home asthma education on the proper medical management of asthma by a certified asthma educator or public health nurse with asthma management training, and must be limited to two visits per child. The home visit payment rates must be based on a rate commensurate with a first-time visit rate and follow-up visit rate. Coverage also includes new text end the following durable medical equipment: high efficiency particulate air (HEPA) cleaners, HEPA vacuum cleaners, allergy bed and pillow encasements, high filtration filters for forced air gas furnaces, and dehumidifiers with medical tubing to connect the appliance to a floor drain, if the listed item is deleted text begin medically necessarydeleted text end new text begin useful new text end to reduce asthma symptoms. Provision of these items new text begin of durable medical equipment new text end must be preceded by a home environmental assessment for triggers of asthma and in-home asthma education on the proper medical management of asthma by a Certified Asthma Educator or public health nurse with asthma management training.

Sec. 39.

Laws 2009, chapter 79, article 5, section 78, subdivision 5, is amended to read:

Subd. 5.

Expiration.

This sectionnew text begin , with the exception of subdivision 4,new text end expires deleted text begin December 31, 2010deleted text end new text begin August 31, 2011. Subdivision 4 expires February 28, 2012new text end .

Sec. 40.

Laws 2010, chapter 200, article 1, section 12, subdivision 6, is amended to read:

Subd. 6.

Coordinated care delivery systems.

(a) Effective June 1, 2010, the commissioner shall contract with hospitals or groups of hospitals that qualify under paragraph (b) and agree to deliver services according to this subdivision. Contracting hospitals shall develop and implement a coordinated care delivery system to provide health care services to individuals who are eligible for general assistance medical care under this section and who either choose to receive services through the coordinated care delivery system or who are enrolled by the commissioner under paragraph (c). The health care services provided by the system must include: (1) the services described in subdivision 4 with the exception of outpatient prescription drug coverage but shall include drugs administered in a clinic or other outpatient setting; or (2) a set of comprehensive and medically necessary health services that the recipients might reasonably require to be maintained in good health and that has been approved by the commissioner, including at a minimum, but not limited to, emergency care, medical transportation services, inpatient hospital and physician care, outpatient health services, preventive health services, mental health services, and prescription drugs administered in a clinic or other outpatient setting. Outpatient prescription drug coverage is covered on a fee-for-service basis in accordance with section 256D.03, subdivision 3, and funded under subdivision 9. A hospital establishing a coordinated care delivery system under this subdivision must ensure that the requirements of this subdivision are met.

(b) A hospital or group of hospitals may contract with the commissioner to develop and implement a coordinated care delivery system as follows:

(1) effective June 1, 2010, a hospital qualifies under this subdivision if: (i) during calendar year 2008, it received fee-for-service payments for services to general assistance medical care recipients (A) equal to or greater than $1,500,000, or (B) equal to or greater than 1.3 percent of net patient revenue; or (ii) a contract with the hospital is necessary to provide geographic access or to ensure that at least 80 percent of enrollees have access to a coordinated care delivery system; and

(2) effective December 1, 2010, a Minnesota hospital not qualified under clause (1) may contract with the commissioner under this subdivision if it agrees to satisfy the requirements of this subdivision.

Participation by hospitals shall become effective quarterly on June 1, September 1, December 1, or March 1. Hospital participation is effective for a period of 12 months and may be renewed for successive 12-month periods.

(c) Applicants and recipients may enroll in any available coordinated care delivery system statewide. If more than one coordinated care delivery system is available, the applicant or recipient shall be allowed to choose among the systems. The commissioner may assign an applicant or recipient to a coordinated care delivery system if no choice is made by the applicant or recipient. The commissioner shall consider a recipient's zip code, city of residence, county of residence, or distance from a participating coordinated care delivery system when determining default assignment. An applicant or recipient may decline enrollment in a coordinated care delivery system. Upon enrollment into a coordinated care delivery system, the recipient must agree to receive all nonemergency services through the coordinated care delivery system. Enrollment in a coordinated care delivery system is for six months and may be renewed for additional six-month periods, except that initial enrollment is for six months or until the end of a recipient's period of general assistance medical care eligibility, whichever occurs first. A recipient who continues to meet the eligibility requirements of this section is not eligible to enroll in MinnesotaCare during a period of enrollment in a coordinated care delivery system. From June 1, 2010, to deleted text begin November 30, 2010deleted text end new text begin February 28, 2011new text end , applicants and recipients not enrolled in a coordinated care delivery system may seek services from a hospital eligible for reimbursement under the temporary uncompensated care pool established under subdivision 8. After deleted text begin November 30, 2010deleted text end new text begin February 28, 2011new text end , services are available only through a coordinated care delivery system.

(d) The hospital may contract and coordinate with providers and clinics for the delivery of services and shall contract with essential community providers as defined under section 62Q.19, subdivision 1, paragraph (a), clauses (1) and (2), to the extent practicable. If a provider or clinic contracts with a hospital to provide services through the coordinated care delivery system, the provider may not refuse to provide services to any recipient enrolled in the system, and payment for services shall be negotiated with the hospital and paid by the hospital from the system's allocation under subdivision 7.

(e) A coordinated care delivery system must:

(1) provide the covered services required under paragraph (a) to recipients enrolled in the coordinated care delivery system, and comply with the requirements of subdivision 4, paragraphs (b) to (g);

(2) establish a process to monitor enrollment and ensure the quality of care provided; and

(3) in cooperation with counties, coordinate the delivery of health care services with existing homeless prevention, supportive housing, and rent subsidy programs and funding administered by the Minnesota Housing Finance Agency under chapter 462A; and

(4) adopt innovative and cost-effective methods of care delivery and coordination, which may include the use of allied health professionals, telemedicine, patient educators, care coordinators, and community health workers.

(f) The hospital may require a recipient to designate a primary care provider or a primary care clinic. The hospital may limit the delivery of services to a network of providers who have contracted with the hospital to deliver services in accordance with this subdivision, and require a recipient to seek services only within this network. The hospital may also require a referral to a provider before the service is eligible for payment. A coordinated care delivery system is not required to provide payment to a provider who is not employed by or under contract with the system for services provided to a recipient enrolled in the system, except in cases of an emergency. For purposes of this section, emergency services are defined in accordance with Code of Federal Regulations, title 42, section 438.114 (a).

(g) A recipient enrolled in a coordinated care delivery system has the right to appeal to the commissioner according to section 256.045.

(h) The state shall not be liable for the payment of any cost or obligation incurred by the coordinated care delivery system.

(i) The hospital must provide the commissioner with data necessary for assessing enrollment, quality of care, cost, and utilization of services. Each hospital must provide, on a quarterly basis on a form prescribed by the commissioner for each recipient served by the coordinated care delivery system, the services provided, the cost of services provided, and the actual payment amount for the services provided and any other information the commissioner deems necessary to claim federal Medicaid match. The commissioner must provide this data to the legislature on a quarterly basis.

(j) Effective June 1, 2010, the provisions of section 256.9695, subdivision 2, paragraph (b), do not apply to general assistance medical care provided under this section.

new text begin (k) Notwithstanding any other provision in this section to the contrary, for participation beginning September 1, 2010, the commissioner shall offer the same contract terms related to an enrollment threshold formula and financial liability protections to a hospital or group of hospitals qualified under this subdivision to develop and implement a coordinated care delivery system as those contained in the coordinated care delivery system contracts effective June 1, 2010. new text end

new text begin (l) If section 256B.055, subdivision 15, and section 256B.056, subdivisions 3 and 4 are implemented effective July 1, 2010, this subdivision must not be implemented. new text end

Sec. 41.

Laws 2010, chapter 200, article 1, section 12, subdivision 7, is amended to read:

Subd. 7.

Payments; rate setting for the hospital coordinated care delivery system.

(a) Effective for general assistance medical care services, with the exception of outpatient prescription drug coverage, provided on or after June 1, 2010, through a coordinated care delivery system, the commissioner shall allocate the annual appropriation for the coordinated care delivery system to hospitals participating under subdivision 6 in quarterly payments, beginning on the first scheduled warrant on or after June 1, 2010. The payment shall be allocated among all hospitals qualified to participate on the allocation datedeleted text begin . Each hospital or group of hospitals shall receive a pro rata share of the allocation based on the hospital's or group of hospitals' calendar year 2008 payments for general assistance medical care services, provided that, for the purposes of this allocation, payments to Hennepin County Medical Center, Regions Hospital, Saint Mary's Medical Center, and University of Minnesota Medical Center, Fairview, shall be weighted at 110 percent of the actual amount.deleted text end new text begin as follows:new text end

new text begin (1) each hospital or group of hospitals shall be allocated an initial amount based on the hospital's or group of hospitals' pro rata share of calendar year 2008 payments for general assistance medical care services to all participating hospitals; new text end

new text begin (2) the initial allocations to Hennepin County Medical Center; Regions Hospital; Saint Mary's Medical Center; and the University of Minnesota Medical Center, Fairview, shall be increased to 110 percent of the value determined in clause (1); new text end

new text begin (3) the initial allocation to hospitals not listed in clause (2) shall be reduced a pro rata amount in order to keep the allocations within the limit of available appropriations; and new text end

new text begin (4) the amounts determined under clauses (1) to (3) shall be allocated to participating hospitals. new text end

The commissioner may prospectively reallocate payments to participating hospitals on a biannual basis to ensure that final allocations reflect actual coordinated care delivery system enrollment. The 2008 base year shall be updated by one calendar year each June 1, beginning June 1, 2011.

(b) new text begin Beginning June 1, 2010, and every quarter beginning in June thereafter, the commissioner shall make one-third of the quarterly payment in June and the remaining two-thirds of the quarterly payment in July to each participating hospital or group of hospitals.new text end

new text begin (c) new text end In order to be reimbursed under this section, nonhospital providers of health care services shall contract with one or more hospitals described in paragraph (a) to provide services to general assistance medical care recipients through the coordinated care delivery system established by the hospital. The hospital shall reimburse bills submitted by nonhospital providers participating under this paragraph at a rate negotiated between the hospital and the nonhospital provider.

deleted text begin (c)deleted text end new text begin (d)new text end The commissioner shall apply for federal matching funds under section 256B.199, paragraphs (a) to (d), for expenditures under this subdivision.

deleted text begin (d)deleted text end new text begin (e)new text end Outpatient prescription drug coverage is provided in accordance with section 256D.03, subdivision 3, and paid on a fee-for-service basis under subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2010. new text end

Sec. 42.

Laws 2010, chapter 200, article 1, section 12, subdivision 8, is amended to read:

Subd. 8.

Temporary uncompensated care pool.

(a) The commissioner shall establish a temporary uncompensated care pool, effective June 1, 2010. Payments from the pool must be distributed, within the limits of the available appropriation, to hospitals that are not part of a coordinated care delivery system established under subdivision 6.

(b) Hospitals seeking reimbursement from this pool must submit an invoice to the commissioner in a form prescribed by the commissioner for payment for services provided to an applicant or recipient not enrolled in a coordinated care delivery system. A payment amount, as calculated under current law, must be determined, but not paid, for each admission of or service provided to a general assistance medical care recipient on or after June 1, 2010, to deleted text begin November 30, 2010deleted text end new text begin February 28, 2011new text end .

(c) The aggregated payment amounts for each hospital must be calculated as a percentage of the total calculated amount for all hospitals.

(d) Distributions from the uncompensated care pool for each hospital must be determined by multiplying the factor in paragraph (c) by the amount of money in the uncompensated care pool that is available for the six-month period.

(e) The commissioner shall apply for federal matching funds under section 256B.199, paragraphs (a) to (d), for expenditures under this subdivision.

(f) Outpatient prescription drugs are not eligible for payment under this subdivision.

Sec. 43.

Laws 2010, chapter 200, article 1, section 16, is amended by adding an effective date to read:

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2010. new text end

Sec. 44.

Laws 2010, chapter 200, article 1, section 21, is amended to read:

Sec. 21.

REPEALER.

(a) Minnesota Statutes 2008, sections 256.742; 256.979, subdivision 8; and 256D.03, subdivision 9, are repealed effective April 1, 2010.

(b) Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, is repealed effective deleted text begin Aprildeleted text end new text begin June new text end 1, 2010.

(c) Minnesota Statutes 2008, section 256B.195, subdivisions 4 and 5, are repealed effective for federal fiscal year 2010.

(d) Minnesota Statutes 2009 Supplement, section 256B.195, subdivisions 1, 2, and 3, are repealed effective for federal fiscal year 2010.

(e) Minnesota Statutes 2008, sections 256L.07, subdivision 6; 256L.15, subdivision 4; and 256L.17, subdivision 7, are repealed deleted text begin January 1, 2011deleted text end new text begin July 1, 2010new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2010. new text end

Sec. 45.

new text begin [256B.69] [Subd. 29] PREPAID HEALTH PLAN RATES. new text end

new text begin In negotiating the prepaid health plan contract rates for services rendered on or after January 1, 2011, the commissioner of human services shall take into consideration and the rates shall reflect the anticipated savings in the medical assistance program due to extending medical assistance coverage to services provided in licensed birth centers, the anticipated use of these services within the medical assistance population, and the reduced medical assistance costs associated with the use of birth centers for normal, low-risk deliveries. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010. new text end

Sec. 46.

new text begin STATE PLAN AMENDMENT; FEDERAL APPROVAL. new text end

new text begin (a) The commissioner of human services shall submit a Medicaid state plan amendment to receive federal fund participation for adults without children whose income is equal to or less than 75 percent of federal poverty guidelines in accordance with the Patient Protection and Affordable Care Act, Public Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law 111-152. The effective date of the state plan amendment shall be July 1, 2010. new text end

new text begin (b) The commissioner of human services shall submit a federal waiver or an amendment to the MinnesotaCare health care reform waiver to include in the waiver single adults and households without children. 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. 47.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, section 256D.03, subdivisions 3, 3a, 5, 6, 7, and 8, new text end new text begin are repealed contingently upon implementation of Minnesota Statutes, sections 256B.055, subdivision 15, and 256B.056, subdivisions 3 and 4. new text end

new text begin (b) new text end new text begin Laws 2010, chapter 200, article 1, sections 12, subdivisions 1, 2, 3, and 5; 18; and 19, new text end new text begin are repealed contingently upon implementation of Minnesota Statutes, sections 256B.055, subdivision 15, and 256B.056, subdivisions 3 and 4. new text end

new text begin (c) new text end new text begin Laws 2010, chapter 200, article 1, section 12, subdivisions 4, 6, 7, 8, 9, and 10, new text end new text begin are repealed contingently upon implementation of Minnesota Statutes, sections 256B.055, subdivision 15, and 256B.056, subdivisions 3 and 4. 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. 48.

new text begin EFFECTIVE DATE OF EARLY ENROLLMENT IN MEDICAL ASSISTANCE. new text end

new text begin (a) In order for sections 5 to 7 and 20 to be effective, the governor in office at the time of enactment of this section must direct, by executive order issued at any time during that governor's term, the commissioner of human services to implement them, notwithstanding any other effective dates for those sections. new text end

new text begin (b) If the governor in office at the time of enactment of this section does not issue an executive order under paragraph (a) directing implementation, the succeeding governor, from the start of that governor's term until January 15, 2011, may by executive order direct the commissioner of human services to implement sections 5 to 7 and 20. new text end

new text begin (c) If a governor does not issue an executive order under paragraph (a) or (b), sections 5 to 7 and 20 are not effective and do not have the force of law. new text end

new text begin (d) In making the determinations under this section whether to issue an executive order under paragraph (a) or (b), the governor shall consider the cost of implementation and the availability of funds in the state treasury, the potential for increased federal funding, the effect of implementation on access to health care services in the state, and alternative approaches that may be available to pursue policy goals. new text end

new text begin (e) If this section is determined by a court of competent jurisdiction to be unconstitutional, sections 5 to 7 and 20 are not effective and do not have the force of law. 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 17

CONTINUING CARE

Section 1.

Minnesota Statutes 2008, section 144D.03, subdivision 2, is amended to read:

Subd. 2.

Registration information.

The establishment shall provide the following information to the commissioner in order to be registered:

(1) the business name, street address, and mailing address of the establishment;

(2) the name and mailing address of the owner or owners of the establishment and, if the owner or owners are not natural persons, identification of the type of business entity of the owner or owners, and the names and addresses of the officers and members of the governing body, or comparable persons for partnerships, limited liability corporations, or other types of business organizations of the owner or owners;

(3) the name and mailing address of the managing agent, whether through management agreement or lease agreement, of the establishment, if different from the owner or owners, and the name of the on-site manager, if any;

(4) verification that the establishment has entered into a housing with services contract, as required in section 144D.04, with each resident or resident's representative;

(5) verification that the establishment is complying with the requirements of section 325F.72, if applicable;

(6) the name and address of at least one natural person who shall be responsible for dealing with the commissioner on all matters provided for in sections 144D.01 to 144D.06, and on whom personal service of all notices and orders shall be made, and who shall be authorized to accept service on behalf of the owner or owners and the managing agent, if any; deleted text begin anddeleted text end

(7) the signature of the authorized representative of the owner or owners or, if the owner or owners are not natural persons, signatures of at least two authorized representatives of each owner, one of which shall be an officer of the ownernew text begin ; andnew text end

new text begin (8) whether services are included in the base rate to be paid by the residentnew text end .

Personal service on the person identified under clause (6) by the owner or owners in the registration shall be considered service on the owner or owners, and it shall not be a defense to any action that personal service was not made on each individual or entity. The designation of one or more individuals under this subdivision shall not affect the legal responsibility of the owner or owners under sections 144D.01 to 144D.06.

Sec. 2.

Minnesota Statutes 2008, section 144D.04, subdivision 2, is amended to read:

Subd. 2.

Contents of contract.

A housing with services contract, which need not be entitled as such to comply with this section, shall include at least the following elements in itself or through supporting documents or attachments:

(1) the name, street address, and mailing address of the establishment;

(2) the name and mailing address of the owner or owners of the establishment and, if the owner or owners is not a natural person, identification of the type of business entity of the owner or owners;

(3) the name and mailing address of the managing agent, through management agreement or lease agreement, of the establishment, if different from the owner or owners;

(4) the name and address of at least one natural person who is authorized to accept service of process on behalf of the owner or owners and managing agent;

(5) a statement describing the registration and licensure status of the establishment and any provider providing health-related or supportive services under an arrangement with the establishment;

(6) the term of the contract;

(7) a description of the services to be provided to the resident in the base rate to be paid by residentnew text begin , including a delineation of the portion of the base rate that constitutes rent and a delineation of charges for each service included in the base ratenew text end ;

(8) a description of any additional services, including home care services, available for an additional fee from the establishment directly or through arrangements with the establishment, and a schedule of fees charged for these services;

(9) a description of the process through which the contract may be modified, amended, or terminated;

(10) a description of the establishment's complaint resolution process available to residents including the toll-free complaint line for the Office of Ombudsman for Long-Term Care;

(11) the resident's designated representative, if any;

(12) the establishment's referral procedures if the contract is terminated;

(13) requirements of residency used by the establishment to determine who may reside or continue to reside in the housing with services establishment;

(14) billing and payment procedures and requirements;

(15) a statement regarding the ability of residents to receive services from service providers with whom the establishment does not have an arrangement;

(16) a statement regarding the availability of public funds for payment for residence or services in the establishment; and

(17) a statement regarding the availability of and contact information for long-term care consultation services under section 256B.0911 in the county in which the establishment is located.

Sec. 3.

new text begin [144D.08] UNIFORM CONSUMER INFORMATION GUIDE. new text end

new text begin All housing with services establishments shall make available to all prospective and current residents information consistent with the uniform format and the required components adopted by the commissioner under section 144G.06. new text end

Sec. 4.

new text begin [144D.09] TERMINATION OF LEASE. new text end

new text begin The housing with services establishment shall include with notice of termination of lease information about how to contact the ombudsman for long-term care, including the address and phone number along with a statement of how to request problem-solving assistance. new text end

Sec. 5.

Minnesota Statutes 2008, section 144G.06, is amended to read:

144G.06 UNIFORM CONSUMER INFORMATION GUIDE.

(a) The commissioner of health shall establish an advisory committee consisting of representatives of consumers, providers, county and state officials, and other groups the commissioner considers appropriate. The advisory committee shall present recommendations to the commissioner on:

(1) a format for a guide to be used by individual providers of assisted living, as defined in section 144G.01, that includes information about services offered by that provider,new text begin which services may be covered by Medicare,new text end service costs, and other relevant provider-specific information, as well as a statement of philosophy and values associated with assisted living, presented in uniform categories that facilitate comparison with guides issued by other providers; and

(2) requirements for informing assisted living clients, as defined in section 144G.01, of their applicable legal rights.

(b) The commissioner, after reviewing the recommendations of the advisory committee, shall adopt a uniform format for the guide to be used by individual providers, and the required components of materials to be used by providers to inform assisted living clients of their legal rights, and shall make the uniform format and the required components available to assisted living providers.

Sec. 6.

Minnesota Statutes 2009 Supplement, section 252.27, subdivision 2a, is amended to read:

Subd. 2a.

Contribution amount.

(a) The natural or adoptive parents of a minor child, including a child determined eligible for medical assistance without consideration of parental income, must contribute to the cost of services used by making monthly payments on a sliding scale based on income, unless the child is married or has been married, parental rights have been terminated, or the child's adoption is subsidized according to section 259.67 or through title IV-E of the Social Security Act. The parental contribution is a partial or full payment for medical services provided for diagnostic, therapeutic, curing, treating, mitigating, rehabilitation, maintenance, and personal care services as defined in United States Code, title 26, section 213, needed by the child with a chronic illness or disability.

(b) For households with adjusted gross income equal to or greater than 100 percent of federal poverty guidelines, the parental contribution shall be computed by applying the following schedule of rates to the adjusted gross income of the natural or adoptive parents:

(1) if the adjusted gross income is equal to or greater than 100 percent of federal poverty guidelines and less than 175 percent of federal poverty guidelines, the parental contribution is $4 per month;

(2) if the adjusted gross income is equal to or greater than 175 percent of federal poverty guidelines and less than or equal to 545 percent of federal poverty guidelines, the parental contribution shall be determined using a sliding fee scale established by the commissioner of human services which begins at one percent of adjusted gross income at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted gross income for those with adjusted gross income up to 545 percent of federal poverty guidelines;

(3) if the adjusted gross income is greater than 545 percent of federal poverty guidelines and less than 675 percent of federal poverty guidelines, the parental contribution shall be 7.5 percent of adjusted gross income;

(4) if the adjusted gross income is equal to or greater than 675 percent of federal poverty guidelines and less than 975 percent of federal poverty guidelines, the parental contribution shall be determined using a sliding fee scale established by the commissioner of human services which begins at 7.5 percent of adjusted gross income at 675 percent of federal poverty guidelines and increases to ten percent of adjusted gross income for those with adjusted gross income up to 975 percent of federal poverty guidelines; and

(5) if the adjusted gross income is equal to or greater than 975 percent of federal poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross income.

If the child lives with the parent, the annual adjusted gross income is reduced by $2,400 prior to calculating the parental contribution. If the child resides in an institution specified in section 256B.35, the parent is responsible for the personal needs allowance specified under that section in addition to the parental contribution determined under this section. The parental contribution is reduced by any amount required to be paid directly to the child pursuant to a court order, but only if actually paid.

(c) The household size to be used in determining the amount of contribution under paragraph (b) includes natural and adoptive parents and their dependents, including the child receiving services. Adjustments in the contribution amount due to annual changes in the federal poverty guidelines shall be implemented on the first day of July following publication of the changes.

(d) For purposes of paragraph (b), "income" means the adjusted gross income of the natural or adoptive parents determined according to the previous year's federal tax form, except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds have been used to purchase a home shall not be counted as income.

(e) The contribution shall be explained in writing to the parents at the time eligibility for services is being determined. The contribution shall be made on a monthly basis effective with the first month in which the child receives services. Annually upon redetermination or at termination of eligibility, if the contribution exceeded the cost of services provided, the local agency or the state shall reimburse that excess amount to the parents, either by direct reimbursement if the parent is no longer required to pay a contribution, or by a reduction in or waiver of parental fees until the excess amount is exhausted. All reimbursements must include a notice that the amount reimbursed may be taxable income if the parent paid for the parent's fees through an employer's health care flexible spending account under the Internal Revenue Code, section 125, and that the parent is responsible for paying the taxes owed on the amount reimbursed.

(f) The monthly contribution amount must be reviewed at least every 12 months; when there is a change in household size; and when there is a loss of or gain in income from one month to another in excess of ten percent. The local agency shall mail a written notice 30 days in advance of the effective date of a change in the contribution amount. A decrease in the contribution amount is effective in the month that the parent verifies a reduction in income or change in household size.

(g) Parents of a minor child who do not live with each other shall each pay the contribution required under paragraph (a). An amount equal to the annual court-ordered child support payment actually paid on behalf of the child receiving services shall be deducted from the adjusted gross income of the parent making the payment prior to calculating the parental contribution under paragraph (b).

(h) The contribution under paragraph (b) shall be increased by an additional five percent if the local agency determines that insurance coverage is available but not obtained for the child. For purposes of this section, "available" means the insurance is a benefit of employment for a family member at an annual cost of no more than five percent of the family's annual income. For purposes of this section, "insurance" means health and accident insurance coverage, enrollment in a nonprofit health service plan, health maintenance organization, self-insured plan, or preferred provider organization.

Parents who have more than one child receiving services shall not be required to pay more than the amount for the child with the highest expenditures. There shall be no resource contribution from the parents. The parent shall not be required to pay a contribution in excess of the cost of the services provided to the child, not counting payments made to school districts for education-related services. Notice of an increase in fee payment must be given at least 30 days before the increased fee is due.

(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if, in the 12 months prior to July 1:

(1) the parent applied for insurance for the child;

(2) the insurer denied insurance;

(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted a complaint or appeal, in writing, to the commissioner of health or the commissioner of commerce, or litigated the complaint or appeal; and

(4) as a result of the dispute, the insurer reversed its decision and granted insurance.

For purposes of this section, "insurance" has the meaning given in paragraph (h).

A parent who has requested a reduction in the contribution amount under this paragraph shall submit proof in the form and manner prescribed by the commissioner or county agency, including, but not limited to, the insurer's denial of insurance, the written letter or complaint of the parents, court documents, and the written response of the insurer approving insurance. The determinations of the commissioner or county agency under this paragraph are not rules subject to chapter 14.

new text begin (j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30, 2013, the parental contribution shall be computed by applying the following contribution schedule to the adjusted gross income of the natural or adoptive parents: new text end

new text begin (1) if the adjusted gross income is equal to or greater than 100 percent of federal poverty guidelines and less than 175 percent of federal poverty guidelines, the parental contribution is $4 per month; new text end

new text begin (2) if the adjusted gross income is equal to or greater than 175 percent of federal poverty guidelines and less than or equal to 525 percent of federal poverty guidelines, the parental contribution shall be determined using a sliding fee scale established by the commissioner of human services which begins at one percent of adjusted gross income at 175 percent of federal poverty guidelines and increases to eight percent of adjusted gross income for those with adjusted gross income up to 525 percent of federal poverty guidelines; new text end

new text begin (3) if the adjusted gross income is greater than 525 percent of federal poverty guidelines and less than 675 percent of federal poverty guidelines, the parental contribution shall be 9.5 percent of adjusted gross income; new text end

new text begin (4) if the adjusted gross income is equal to or greater than 675 percent of federal poverty guidelines and less than 900 percent of federal poverty guidelines, the parental contribution shall be determined using a sliding fee scale established by the commissioner of human services which begins at 9.5 percent of adjusted gross income at 675 percent of federal poverty guidelines and increases to 12 percent of adjusted gross income for those with adjusted gross income up to 900 percent of federal poverty guidelines; and new text end

new text begin (5) if the adjusted gross income is equal to or greater than 900 percent of federal poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross income. If the child lives with the parent, the annual adjusted gross income is reduced by $2,400 prior to calculating the parental contribution. If the child resides in an institution specified in section 256B.35, the parent is responsible for the personal needs allowance specified under that section in addition to the parental contribution determined under this section. The parental contribution is reduced by any amount required to be paid directly to the child pursuant to a court order, but only if actually paid. new text end

Sec. 7.

new text begin [256.4825] REPORT REGARDING PROGRAMS AND SERVICES FOR PEOPLE WITH DISABILITIES. new text end

new text begin The Minnesota State Council on Disability, the Minnesota Consortium for Citizens with Disabilities, and the Arc of Minnesota may submit an annual report by January 15 of each year, beginning in 2012, to the chairs and ranking minority members of the legislative committees with jurisdiction over programs serving people with disabilities as provided in this section. The report must describe the existing state policies and goals for programs serving people with disabilities including, but not limited to, programs for employment, transportation, housing, education, quality assurance, consumer direction, physical and programmatic access, and health. The report must provide data and measurements to assess the extent to which the policies and goals are being met. The commissioner of human services and the commissioners of other state agencies administering programs for people with disabilities shall cooperate with the Minnesota State Council on Disability, the Minnesota Consortium for Citizens with Disabilities, and the Arc of Minnesota and provide those organizations with existing published information and reports that will assist in the preparation of the report. new text end

Sec. 8.

Minnesota Statutes 2009 Supplement, section 256.975, subdivision 7, is amended to read:

Subd. 7.

Consumer information and assistance and long-term care options counseling; Senior LinkAge Line.

(a) The Minnesota Board on Aging shall operate a statewide service to aid older Minnesotans and their families in making informed choices about long-term care options and health care benefits. Language services to persons with limited English language skills may be made available. The service, known as Senior LinkAge Line, must be available during business hours through a statewide toll-free number and must also be available through the Internet.

(b) The service must provide long-term care options counseling by assisting older adults, caregivers, and providers in accessing information and options counseling about choices in long-term care services that are purchased through private providers or available through public options. The service must:

(1) develop a comprehensive database that includes detailed listings in both consumer- and provider-oriented formats;

(2) make the database accessible on the Internet and through other telecommunication and media-related tools;

(3) link callers to interactive long-term care screening tools and make these tools available through the Internet by integrating the tools with the database;

(4) develop community education materials with a focus on planning for long-term care and evaluating independent living, housing, and service options;

(5) conduct an outreach campaign to assist older adults and their caregivers in finding information on the Internet and through other means of communication;

(6) implement a messaging system for overflow callers and respond to these callers by the next business day;

(7) link callers with county human services and other providers to receive more in-depth assistance and consultation related to long-term care options;

(8) link callers with quality profiles for nursing facilities and other providers developed by the commissioner of health;

(9) incorporate information aboutnew text begin the availability ofnew text end housingnew text begin options, as well as registered housingnew text end with services and consumer rights within the MinnesotaHelp.info network long-term care database to facilitate consumer comparison of services and costs among housing with services establishments and with other in-home services and to support financial self-sufficiency as long as possible. Housing with services establishments and their arranged home care providers shall provide information deleted text begin to the commissioner of human services that is consistent with information required by the commissioner of health under section 144G.06, the Uniform Consumer Information Guidedeleted text end new text begin that will facilitate price comparisons, including delineation of charges for rent and for services available. The commissioners of health and human services shall align the data elements required by section 144G.06, the Uniform Consumer Information Guide, and this section to provide consumers standardized information and ease of comparison of long-term care optionsnew text end . The commissioner of human services shall provide the data to the Minnesota Board on Aging for inclusion in the MinnesotaHelp.info network long-term care database;

(10) provide long-term care options counseling. Long-term care options counselors shall:

(i) for individuals not eligible for case management under a public program or public funding source, provide interactive decision support under which consumers, family members, or other helpers are supported in their deliberations to determine appropriate long-term care choices in the context of the consumer's needs, preferences, values, and individual circumstances, including implementing a community support plan;

(ii) provide Web-based educational information and collateral written materials to familiarize consumers, family members, or other helpers with the long-term care basics, issues to be considered, and the range of options available in the community;

(iii) provide long-term care futures planning, which means providing assistance to individuals who anticipate having long-term care needs to develop a plan for the more distant future; and

(iv) provide expertise in benefits and financing options for long-term care, including Medicare, long-term care insurance, tax or employer-based incentives, reverse mortgages, private pay options, and ways to access low or no-cost services or benefits through volunteer-based or charitable programs; and

(11) using risk management and support planning protocols, provide long-term care options counseling to current residents of nursing homes deemed appropriate for discharge by the commissioner. In order to meet this requirement, the commissioner shall provide designated Senior LinkAge Line contact centers with a list of nursing home residents appropriate for discharge planning via a secure Web portal. Senior LinkAge Line shall provide these residents, if they indicate a preference to receive long-term care options counseling, with initial assessment, review of risk factors, independent living support consultation, or referral to:

(i) long-term care consultation services under section 256B.0911;

(ii) designated care coordinators of contracted entities under section 256B.035 for persons who are enrolled in a managed care plan; or

(iii) the long-term care consultation team for those who are appropriate for relocation service coordination due to high-risk factors or psychological or physical disability.

Sec. 9.

Minnesota Statutes 2008, section 256B.057, subdivision 9, is amended to read:

Subd. 9.

Employed persons with disabilities.

(a) Medical assistance may be paid for a person who is employed and who:

(1)new text begin but for excess earnings or assets,new text end meets the definition of disabled under the supplemental security income program;

(2) is at least 16 but less than 65 years of age;

(3) meets the asset limits in paragraph (c); and

(4) deleted text begin effective November 1, 2003,deleted text end pays a premium and other obligations under paragraph (e).

Any spousal income or assets shall be disregarded for purposes of eligibility and premium determinations.

(b) After the month of enrollment, a person enrolled in medical assistance under this subdivision who:

(1) is temporarily unable to work and without receipt of earned income due to a medical condition, as verified by a physician, may retain eligibility for up to four calendar months; or

(2) effective January 1, 2004, loses employment for reasons not attributable to the enrollee, may retain eligibility for up to four consecutive months after the month of job loss. To receive a four-month extension, enrollees must verify the medical condition or provide notification of job loss. All other eligibility requirements must be met and the enrollee must pay all calculated premium costs for continued eligibility.

(c) For purposes of determining eligibility under this subdivision, a person's assets must not exceed $20,000, excluding:

(1) all assets excluded under section 256B.056;

(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans, Keogh plans, and pension plans; and

(3) medical expense accounts set up through the person's employer.

(d)(1) Effective January 1, 2004, for purposes of eligibility, there will be a $65 earned income disregard. To be eligible, a person applying for medical assistance under this subdivision must have earned income above the disregard level.

(2) Effective January 1, 2004, to be considered earned income, Medicare, Social Security, and applicable state and federal income taxes must be withheld. To be eligible, a person must document earned income tax withholding.

(e)(1) A person whose earned and unearned income is equal to or greater than 100 percent of federal poverty guidelines for the applicable family size must pay a premium to be eligible for medical assistance under this subdivision. The premium shall be based on the person's gross earned and unearned income and the applicable family size using a sliding fee scale established by the commissioner, which begins at one percent of income at 100 percent of the federal poverty guidelines and increases to 7.5 percent of income for those with incomes at or above 300 percent of the federal poverty guidelines. Annual adjustments in the premium schedule based upon changes in the federal poverty guidelines shall be effective for premiums due in July of each year.

(2) Effective January 1, 2004, all enrollees must pay a premium to be eligible for medical assistance under this subdivision. An enrollee shall pay the greater of a $35 premium or the premium calculated in clause (1).

(3) Effective November 1, 2003, all enrollees who receive unearned income must pay one-half of one percent of unearned income in addition to the premium amount.

(4) Effective November 1, 2003, for enrollees whose income does not exceed 200 percent of the federal poverty guidelines and who are also enrolled in Medicare, the commissioner must reimburse the enrollee for Medicare Part B premiums under section 256B.0625, subdivision 15, paragraph (a).

(5) Increases in benefits under title II of the Social Security Act shall not be counted as income for purposes of this subdivision until July 1 of each year.

(f) A person's eligibility and premium shall be determined by the local county agency. Premiums must be paid to the commissioner. All premiums are dedicated to the commissioner.

(g) Any required premium shall be determined at application and redetermined at the enrollee's six-month income review or when a change in income or household size is reported. Enrollees must report any change in income or household size within ten days of when the change occurs. A decreased premium resulting from a reported change in income or household size shall be effective the first day of the next available billing month after the change is reported. Except for changes occurring from annual cost-of-living increases, a change resulting in an increased premium shall not affect the premium amount until the next six-month review.

(h) Premium payment is due upon notification from the commissioner of the premium amount required. Premiums may be paid in installments at the discretion of the commissioner.

(i) Nonpayment of the premium shall result in denial or termination of medical assistance unless the person demonstrates good cause for nonpayment. Good cause exists if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to D, are met. Except when an installment agreement is accepted by the commissioner, all persons disenrolled for nonpayment of a premium must pay any past due premiums as well as current premiums due prior to being reenrolled. Nonpayment shall include payment with a returned, refused, or dishonored instrument. The commissioner may require a guaranteed form of payment as the only means to replace a returned, refused, or dishonored instrument.

new text begin (j) The commissioner shall notify enrollees annually beginning at least 24 months before the person's 65th birthday of the medical assistance eligibility rules affecting income, assets, and treatment of a spouse's income and assets that will be applied upon reaching age 65. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011. new text end

Sec. 10.

Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11, is amended to read:

Subd. 11.

Personal care assistant; requirements.

(a) A personal care assistant must meet the following requirements:

(1) be at least 18 years of age with the exception of persons who are 16 or 17 years of age with these additional requirements:

(i) supervision by a qualified professional every 60 days; and

(ii) employment by only one personal care assistance provider agency responsible for compliance with current labor laws;

(2) be employed by a personal care assistance provider agency;

(3) enroll with the department as a personal care assistant after clearing a background study. Before a personal care assistant provides services, the personal care assistance provider agency must initiate a background study on the personal care assistant under chapter 245C, and the personal care assistance provider agency must have received a notice from the commissioner that the personal care assistant is:

(i) not disqualified under section 245C.14; or

(ii) is disqualified, but the personal care assistant has received a set aside of the disqualification under section 245C.22;

(4) be able to effectively communicate with the recipient and personal care assistance provider agency;

(5) be able to provide covered personal care assistance services according to the recipient's personal care assistance care plan, respond appropriately to recipient needs, and report changes in the recipient's condition to the supervising qualified professional or physician;

(6) not be a consumer of personal care assistance services;

(7) maintain daily written records including, but not limited to, time sheets under subdivision 12;

(8) effective January 1, 2010, complete standardized training as determined by the commissioner before completing enrollment. Personal care assistant training must include successful completion of the following training components: basic first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of personal care assistants including information about assistance with lifting and transfers for recipients, emergency preparedness, orientation to positive behavioral practices, fraud issues, and completion of time sheets. Upon completion of the training components, the personal care assistant must demonstrate the competency to provide assistance to recipients;

(9) complete training and orientation on the needs of the recipient within the first seven days after the services begin; and

(10) be limited to providing and being paid for up to deleted text begin 310deleted text end new text begin 275 new text end hours per month of personal care assistance services regardless of the number of recipients being served or the number of personal care assistance provider agencies enrolled with.

(b) A legal guardian may be a personal care assistant if the guardian is not being paid for the guardian services and meets the criteria for personal care assistants in paragraph (a).

(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant include parents and stepparents of minors, spouses, paid legal guardians, family foster care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or staff of a residential setting.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011. new text end

Sec. 11.

Minnesota Statutes 2008, section 256B.0915, is amended by adding a subdivision to read:

new text begin Subd. 3i. new text end

new text begin Rate reduction for customized living and 24-hour customized living services. new text end

new text begin (a) Effective July 1, 2010, the commissioner shall reduce service component rates and service rate limits for customized living services and 24-hour customized living services, from the rates in effect on June 30, 2010, by five percent. new text end

new text begin (b) To implement the rate reductions in this subdivision, capitation rates paid by the commissioner to managed care organizations under section 256B.69 shall reflect a ten percent reduction for the specified services for the period January 1, 2011, to June 30, 2011, and a five percent reduction for those services on and after July 1, 2011. new text end

Sec. 12.

Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55, is amended to read:

Subd. 55.

Phase-in of rebased operating payment rates.

(a) For the rate years beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated under this section shall be phased in by blending the operating rate with the operating payment rate determined under section 256B.434. For purposes of this subdivision, the rate to be used that is determined under section 256B.434 shall not include the portion of the operating payment rate related to performance-based incentive payments under section 256B.434, subdivision 4, paragraph (d). For the rate year beginning October 1, 2008, the operating payment rate for each facility shall be 13 percent of the operating payment rate from this section, and 87 percent of the operating payment rate from section 256B.434. deleted text begin For the rate year beginning October 1, 2009, the operating payment rate for each facility shall be 14 percent of the operating payment rate from this section, and 86 percent of the operating payment rate from section 256B.434. For rate years beginning October 1, 2010; October 1, 2011; and October 1, 2012,deleted text end new text begin For the rate period from October 1, 2009, to September 30, 2013, new text end no rate adjustments shall be implemented under this section, but shall be determined under section 256B.434. For the rate year beginning October 1, 2013, the operating payment rate for each facility shall be 65 percent of the operating payment rate from this section, and 35 percent of the operating payment rate from section 256B.434. For the rate year beginning October 1, 2014, the operating payment rate for each facility shall be 82 percent of the operating payment rate from this section, and 18 percent of the operating payment rate from section 256B.434. For the rate year beginning October 1, 2015, the operating payment rate for each facility shall be the operating payment rate determined under this section. The blending of operating payment rates under this section shall be performed separately for each RUG's class.

(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits to the operating payment rate increases under paragraph (a) by creating a minimum percentage increase and a maximum percentage increase.

(1) Each nursing facility that receives a blended October 1, 2008, operating payment rate increase under paragraph (a) of less than one percent, when compared to its operating payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00, shall receive a rate adjustment of one percent.

(2) The commissioner shall determine a maximum percentage increase that will result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing facilities with a blended October 1, 2008, operating payment rate increase under paragraph (a) greater than the maximum percentage increase determined by the commissioner, when compared to its operating payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00, shall receive the maximum percentage increase.

(3) Nursing facilities with a blended October 1, 2008, operating payment rate increase under paragraph (a) greater than one percent and less than the maximum percentage increase determined by the commissioner, when compared to its operating payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00, shall receive the blended October 1, 2008, operating payment rate increase determined under paragraph (a).

(4) The October 1, 2009, through October 1, 2015, operating payment rate for facilities receiving the maximum percentage increase determined in clause (2) shall be the amount determined under paragraph (a) less the difference between the amount determined under paragraph (a) for October 1, 2008, and the amount allowed under clause (2). This rate restriction does not apply to rate increases provided in any other section.

(c) A portion of the funds received under this subdivision that are in excess of operating payment rates that a facility would have received under section 256B.434, as determined in accordance with clauses (1) to (3), shall be subject to the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h).

(1) Determine the amount of additional funding available to a facility, which shall be equal to total medical assistance resident days from the most recent reporting year times the difference between the blended rate determined in paragraph (a) for the rate year being computed and the blended rate for the prior year.

(2) Determine the portion of all operating costs, for the most recent reporting year, that are compensation related. If this value exceeds 75 percent, use 75 percent.

(3) Subtract the amount determined in clause (2) from 75 percent.

(4) The portion of the fund received under this subdivision that shall be subject to the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal the amount determined in clause (1) times the amount determined in clause (3).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive to October 1, 2009. new text end

Sec. 13.

Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 23, is amended to read:

Subd. 23.

Alternative services; elderly and disabled persons.

(a) The commissioner may implement demonstration projects to create alternative integrated delivery systems for acute and long-term care services to elderly persons and persons with disabilities as defined in section 256B.77, subdivision 7a, that provide increased coordination, improve access to quality services, and mitigate future cost increases. The commissioner may seek federal authority to combine Medicare and Medicaid capitation payments for the purpose of such demonstrations and may contract with Medicare-approved special needs plans to provide Medicaid services. Medicare funds and services shall be administered according to the terms and conditions of the federal contract and demonstration provisions. For the purpose of administering medical assistance funds, demonstrations under this subdivision are subject to subdivisions 1 to 22. The provisions of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations, with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1, items B and C, which do not apply to persons enrolling in demonstrations under this section. An initial open enrollment period may be provided. Persons who disenroll from demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450 to 9500.1464. When a person is enrolled in a health plan under these demonstrations and the health plan's participation is subsequently terminated for any reason, the person shall be provided an opportunity to select a new health plan and shall have the right to change health plans within the first 60 days of enrollment in the second health plan. Persons required to participate in health plans under this section who fail to make a choice of health plan shall not be randomly assigned to health plans under these demonstrations. Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220, subpart 1, item A, if adopted, for the purpose of demonstrations under this subdivision, the commissioner may contract with managed care organizations, including counties, to serve only elderly persons eligible for medical assistance, elderly and disabled persons, or disabled persons only. For persons with a primary diagnosis of developmental disability, serious and persistent mental illness, or serious emotional disturbance, the commissioner must ensure that the county authority has approved the demonstration and contracting design. Enrollment in these projects for persons with disabilities shall be voluntary. The commissioner shall not implement any demonstration project under this subdivision for persons with a primary diagnosis of developmental disabilities, serious and persistent mental illness, or serious emotional disturbance, without approval of the county board of the county in which the demonstration is being implemented.

(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501 to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement under this section projects for persons with developmental disabilities. The commissioner may capitate payments for ICF/MR services, waivered services for developmental disabilities, including case management services, day training and habilitation and alternative active treatment services, and other services as approved by the state and by the federal government. Case management and active treatment must be individualized and developed in accordance with a person-centered plan. Costs under these projects may not exceed costs that would have been incurred under fee-for-service. Beginning July 1, 2003, and until four years after the pilot project implementation date, subcontractor participation in the long-term care developmental disability pilot is limited to a nonprofit long-term care system providing ICF/MR services, home and community-based waiver services, and in-home services to no more than 120 consumers with developmental disabilities in Carver, Hennepin, and Scott Counties. The commissioner shall report to the legislature prior to expansion of the developmental disability pilot project. This paragraph expires four years after the implementation date of the pilot project.

(c) Before implementation of a demonstration project for disabled persons, the commissioner must provide information to appropriate committees of the house of representatives and senate and must involve representatives of affected disability groups in the design of the demonstration projects.

(d) A nursing facility reimbursed under the alternative reimbursement methodology in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity provide services under paragraph (a). The commissioner shall amend the state plan and seek any federal waivers necessary to implement this paragraph.

(e) The commissioner, in consultation with the commissioners of commerce and health, may approve and implement programs for all-inclusive care for the elderly (PACE) according to federal laws and regulations governing that program and state laws or rules applicable to participating providers. deleted text begin The process for approval of these programs shall begin only after the commissioner receives grant money in an amount sufficient to cover the state share of the administrative and actuarial costs to implement the programs during state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an account in the special revenue fund and are appropriated to the commissioner to be used solely for the purpose of PACE administrative and actuarial costs.deleted text end A PACE provider is not required to be licensed or certified as a health plan company as defined in section 62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county and found to be eligible for services under the elderly waiver or community alternatives for disabled individuals or who are already eligible for Medicaid but meet level of care criteria for receipt of waiver services may choose to enroll in the PACE program. Medicare and Medicaid services will be provided according to this subdivision and federal Medicare and Medicaid requirements governing PACE providers and programs. PACE enrollees will receive Medicaid home and community-based services through the PACE provider as an alternative to services for which they would otherwise be eligible through home and community-based waiver programs and Medicaid State Plan Services. The commissioner shall establish Medicaid rates for PACE providers that do not exceed costs that would have been incurred under fee-for-service or other relevant managed care programs operated by the state.

(f) The commissioner shall seek federal approval to expand the Minnesota disability health options (MnDHO) program established under this subdivision in stages, first to regional population centers outside the seven-county metro area and then to all areas of the state. Until July 1, 2009, expansion for MnDHO projects that include home and community-based services is limited to the two projects and service areas in effect on March 1, 2006. Enrollment in integrated MnDHO programs that include home and community-based services shall remain voluntary. Costs for home and community-based services included under MnDHO must not exceed costs that would have been incurred under the fee-for-service program. Notwithstanding whether expansion occurs under this paragraph, in determining MnDHO payment rates and risk adjustment methods deleted text begin for contract years starting in 2012,deleted text end the commissioner must consider the methods used to determine county allocations for home and community-based program participants. If necessary to reduce MnDHO rates to comply with the provision regarding MnDHO costs for home and community-based services, the commissioner shall achieve the reduction by maintaining the base rate for contract deleted text begin yearsdeleted text end new text begin year new text end 2010 deleted text begin and 2011deleted text end for services provided under the community alternatives for disabled individuals waiver at the same level as for contract year 2009. The commissioner may apply other reductions to MnDHO rates to implement decreases in provider payment rates required by state law. new text begin Effective January 1, 2011, enrollment and operation of the MnDHO program in effect during 2010 shall cease. The commissioner may reopen the program provided all applicable conditions of this section are met. new text end In developing program specifications for expansion of integrated programs, the commissioner shall involve and consult the state-level stakeholder group established in subdivision 28, paragraph (d), including consultation on whether and how to include home and community-based waiver programs. Plans deleted text begin for further expansion ofdeleted text end new text begin to reopennew text end MnDHO projects shall be presented to the chairs of the house of representatives and senate committees with jurisdiction over health and human services policy and finance deleted text begin by February 1, 2007deleted text end new text begin prior to implementationnew text end .

(g) Notwithstanding section 256B.0261, health plans providing services under this section are responsible for home care targeted case management and relocation targeted case management. Services must be provided according to the terms of the waivers and contracts approved by the federal government.

Sec. 14.

Laws 2009, chapter 79, article 8, section 51, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective deleted text begin Januarydeleted text end new text begin Julynew text end 1, 2011.

Sec. 15.

Laws 2009, chapter 79, article 8, section 84, is amended to read:

Sec. 84.

HOUSING OPTIONS.

The commissioner of human services, in consultation with the commissioner of administration and the Minnesota Housing Finance Agency, and representatives of counties, residents' advocacy groups, consumers of housing services, and provider agencies shall explore ways to maximize the availability and affordability of housing choices available to persons with disabilities or who need care assistance due to other health challenges. A goal shall also be to minimize state physical plant costs in order to serve more persons with appropriate program and care support. Consideration shall be given to:

(1) improved access to rent subsidies;

(2) use of cooperatives, land trusts, and other limited equity ownership models;

(3) whether a public equity housing fund should be established that would maintain the state's interest, to the extent paid from state funds, including group residential housing and Minnesota supplemental aid shelter-needy funds in provider-owned housing, so that when sold, the state would recover its share for a public equity fund to be used for future public needs under this chapter;

(4) the desirability of the state acquiring an ownership interest or promoting the use of publicly owned housing;

(5) promoting more choices in the market for accessible housing that meets the needs of persons with physical challenges; deleted text begin anddeleted text end

(6) what consumer ownership models, if any, are appropriatenew text begin ; andnew text end

new text begin (7) a review of the definition of home and community services and appropriate settings where these services may be provided, including the number of people who may reside under one roof, through the home and community-based waivers for seniors and individuals with disabilitiesnew text end .

The commissioner shall provide a written report on the findings of the evaluation of housing options to the chairs and ranking minority members of the house of representatives and senate standing committees with jurisdiction over health and human services policy and funding by December 15, 2010. This report shall replace the November 1, 2010, annual report by the commissioner required in Minnesota Statutes, sections 256B.0916, subdivision 7, and 256B.49, subdivision 21.

Sec. 16.

new text begin COMMISSIONER TO SEEK FEDERAL MATCH. new text end

new text begin (a) The commissioner of human services shall seek federal financial participation for eligible activity related to fiscal years 2010 and 2011 grants to Advocating Change Together to establish a statewide self-advocacy network for persons with developmental disabilities and for eligible activities under any future grants to the organization. new text end

new text begin (b) The commissioner shall report to the chairs and ranking minority members of the senate Health and Human Services Budget Division and the house of representatives Health Care and Human Services Finance Division by December 15, 2010, with the results of the application for federal matching funds. new text end

Sec. 17.

new text begin ICF/MR RATE INCREASE. new text end

new text begin The daily rate at an intermediate care facility for the developmentally disabled located in Clearwater County and classified as a Class A facility with 15 beds shall be increased from $112.73 to $138.23 for the rate period July 1, 2010, to June 30, 2011. new text end

ARTICLE 18

CHILDREN AND FAMILY SERVICES

Section 1.

Minnesota Statutes 2008, section 256D.0515, is amended to read:

256D.0515 ASSET LIMITATIONS FOR FOOD STAMP HOUSEHOLDS.

All food stamp households must be determined eligible for the benefit discussed under section 256.029. Food stamp households must demonstrate thatdeleted text begin :deleted text end

deleted text begin (1)deleted text end their gross income deleted text begin meets the federal Food Stamp requirements under United deleted text end deleted text begin States Code, title 7, section 2014(c); anddeleted text end

deleted text begin (2) they have financial resources, excluding vehicles, of less than $7,000deleted text end new text begin is equal to or less than 165 percent of the federal poverty guidelines for the same family sizenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective November 1, 2010. new text end

Sec. 2.

Minnesota Statutes 2008, section 256I.05, is amended by adding a subdivision to read:

new text begin Subd. 1n. new text end

new text begin Supplemental rate; Mahnomen County. new text end

new text begin Notwithstanding the provisions of this section, for the rate period July 1, 2010, to June 30, 2011, a county agency shall negotiate a supplemental service rate in addition to the rate specified in subdivision 1, not to exceed $753 per month or the existing rate, including any legislative authorized inflationary adjustments, for a group residential provider located in Mahnomen County that operates a 28-bed facility providing 24-hour care to individuals who are homeless, disabled, chemically dependent, mentally ill, or chronically homeless. new text end

Sec. 3.

Minnesota Statutes 2008, section 256J.24, subdivision 6, is amended to read:

Subd. 6.

Family cap.

(a) MFIP assistance units shall not receive an increase in the cash portion of the transitional standard as a result of the birth of a child, unless one of the conditions under paragraph (b) is met. The child shall be considered a member of the assistance unit according to subdivisions 1 to 3, but shall be excluded in determining family size for purposes of determining the amount of the cash portion of the transitional standard under subdivision 5. The child shall be included in determining family size for purposes of determining the food portion of the transitional standard. The transitional standard under this subdivision shall be the total of the cash and food portions as specified in this paragraph. The family wage level under this subdivision shall be based on the family size used to determine the food portion of the transitional standard.

(b) A child shall be included in determining family size for purposes of determining the amount of the cash portion of the MFIP transitional standard when at least one of the following conditions is met:

(1) for families receiving MFIP assistance on July 1, 2003, the child is born to the adult parent before May 1, 2004;

(2) for families who apply for the diversionary work program under section 256J.95 or MFIP assistance on or after July 1, 2003, the child is born to the adult parent within ten months of the date the family is eligible for assistance;

(3) the child was conceived as a result of a sexual assault or incest, provided that the incident has been reported to a law enforcement agency;

(4) the child's mother is a minor caregiver as defined in section 256J.08, subdivision 59, and the child, or multiple children, are the mother's first birth; deleted text begin ordeleted text end

(5) new text begin the child is the mother's first child subsequent to a pregnancy that did not result in a live birth; ornew text end

new text begin (6) new text end any child previously excluded in determining family size under paragraph (a) shall be included if the adult parent or parents have not received benefits from the diversionary work program under section 256J.95 or MFIP assistance in the previous ten months. An adult parent or parents who reapply and have received benefits from the diversionary work program or MFIP assistance in the past ten months shall be under the ten-month grace period of their previous application under clause (2).

(c) Income and resources of a child excluded under this subdivision, except child support received or distributed on behalf of this child, must be considered using the same policies as for other children when determining the grant amount of the assistance unit.

(d) The caregiver must assign support and cooperate with the child support enforcement agency to establish paternity and collect child support on behalf of the excluded child. Failure to cooperate results in the sanction specified in section 256J.46, subdivisions 2 and 2a. Current support paid on behalf of the excluded child shall be distributed according to section 256.741, subdivision 15.

(e) County agencies must inform applicants of the provisions under this subdivision at the time of each application and at recertification.

(f) Children excluded under this provision shall be deemed MFIP recipients for purposes of child care under chapter 119B.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2010. new text end

Sec. 4.

Minnesota Statutes 2009 Supplement, section 256J.425, subdivision 3, is amended to read:

Subd. 3.

Hard-to-employ participants.

(a) An assistance unit subject to the time limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under a hardship extension if the participant who reached the time limit belongs to any of the following groups:

(1) a person who is diagnosed by a licensed physician, psychological practitioner, or other qualified professional, as developmentally disabled or mentally ill, and the condition severely limits the person's ability to obtain or maintain suitable employment;

(2) a person who:

(i) has been assessed by a vocational specialist or the county agency to be unemployable for purposes of this subdivision; or

(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county agency to be employable, but the condition severely limits the person's ability to obtain or maintain suitable employment. The determination of IQ level must be made by a qualified professional. In the case of a non-English-speaking person: (A) the determination must be made by a qualified professional with experience conducting culturally appropriate assessments, whenever possible; (B) the county may accept reports that identify an IQ range as opposed to a specific score; (C) these reports must include a statement of confidence in the results;

(3) a person who is determined by a qualified professional to be learning disabled, and the condition severely limits the person's ability to obtain or maintain suitable employment. For purposes of the initial approval of a learning disability extension, the determination must have been made or confirmed within the previous 12 months. In the case of a non-English-speaking person: (i) the determination must be made by a qualified professional with experience conducting culturally appropriate assessments, whenever possible; and (ii) these reports must include a statement of confidence in the results. If a rehabilitation plan for a participant extended as learning disabled is developed or approved by the county agency, the plan must be incorporated into the employment plan. However, a rehabilitation plan does not replace the requirement to develop and comply with an employment plan under section 256J.521; or

(4) a person who has been granted a family violence waiver, and who is complying with an employment plan under section 256J.521, subdivision 3.

(b) For purposes of this deleted text begin sectiondeleted text end new text begin chapternew text end , "severely limits the person's ability to obtain or maintain suitable employment" meansnew text begin : new text end

new text begin (1)new text end that a qualified professional has determined that the person's condition prevents the person from working 20 or more hours per weeknew text begin ; or new text end

new text begin (2) for a person who meets the requirements of paragraph (a), clause (2), item (ii), or clause (3), a qualified professional has determined the person's condition: new text end

new text begin (i) significantly restricts the range of employment that the person is able to perform; or new text end

new text begin (ii) significantly interferes with the person's ability to obtain or maintain suitable employment for 20 or more hours per weeknew text end .

Sec. 5.

Minnesota Statutes 2009 Supplement, section 256J.621, is amended to read:

256J.621 WORK PARTICIPATION CASH BENEFITS.

(a) Effective October 1, 2009, upon exiting the diversionary work program (DWP) or upon terminating the Minnesota family investment program with earnings, a participant who is employed may be eligible for work participation cash benefits of deleted text begin $50deleted text end new text begin $25 new text end per month to assist in meeting the family's basic needs as the participant continues to move toward self-sufficiency.

(b) To be eligible for work participation cash benefits, the participant shall not receive MFIP or diversionary work program assistance during the month and the participant or participants must meet the following work requirements:

(1) if the participant is a single caregiver and has a child under six years of age, the participant must be employed at least 87 hours per month;

(2) if the participant is a single caregiver and does not have a child under six years of age, the participant must be employed at least 130 hours per month; or

(3) if the household is a two-parent family, at least one of the parents must be employed an average of at least 130 hours per month.

Whenever a participant exits the diversionary work program or is terminated from MFIP and meets the other criteria in this section, work participation cash benefits are available for up to 24 consecutive months.

(c) Expenditures on the program are maintenance of effort state funds under a separate state program for participants under paragraph (b), clauses (1) and (2). Expenditures for participants under paragraph (b), clause (3), are nonmaintenance of effort funds. Months in which a participant receives work participation cash benefits under this section do not count toward the participant's MFIP 60-month time limit.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2010. new text end

ARTICLE 19

MISCELLANEOUS

Section 1.

new text begin [62Q.545] COVERAGE OF PRIVATE DUTY NURSING SERVICES. new text end

new text begin (a) Private duty nursing services, as provided under section 256B.0625, subdivision 7, with the exception of section 256B.0654, subdivision 4, shall be covered under a health plan for persons who are concurrently covered by both the health plan and enrolled in medical assistance under chapter 256B. new text end

new text begin (b) For purposes of this section, a period of private duty nursing services may be subject to the co-payment, coinsurance, deductible, or other enrollee cost-sharing requirements that apply under the health plan. Cost-sharing requirements for private duty nursing services must not place a greater financial burden on the insured or enrollee than those requirements applied by the health plan to other similar services or benefits. Nothing in this section is intended to prevent a health plan company from requiring prior authorization by the health plan company for such services as required by section 256B.0625, subdivision 7, or use of contracted providers under the applicable provisions of the health plan. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010, and applies to health plans offered, sold, issued, or renewed on or after that date. new text end

Sec. 2.

new text begin [137.32] MINNESOTA COUPLES ON THE BRINK PROJECT. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Within the limits of available appropriations, the Board of Regents of the University of Minnesota is requested to develop and implement a Minnesota couples on the brink project, as provided for in this section. The regents may administer the project with federal grants, state appropriations, and in-kind services received for this purpose. new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The purpose of the project is to develop, evaluate, and disseminate best practices for promoting successful reconciliation between married persons who are considering or have commenced a marriage dissolution proceeding and who choose to pursue reconciliation. new text end

new text begin Subd. 3. new text end

new text begin Implementation. new text end

new text begin The regents shall: new text end

new text begin (1) enter into contracts or manage a grant process for implementation of the project; and new text end

new text begin (2) develop and implement an evaluation component for the project. new text end

Sec. 3.

Minnesota Statutes 2008, section 152.126, as amended by Laws 2009, chapter 79, article 11, sections 9, 10, and 11, is amended to read:

152.126 deleted text begin SCHEDULE II AND IIIdeleted text end CONTROLLED SUBSTANCES PRESCRIPTION ELECTRONIC REPORTING SYSTEM.

Subdivision 1.

Definitions.

For purposes of this section, the terms defined in this subdivision have the meanings given.

(a) "Board" means the Minnesota State Board of Pharmacy established under chapter 151.

(b) "Controlled substances" means those substances listed in section 152.02, subdivisions 3 to 5, and those substances defined by the board pursuant to section 152.02, subdivisions 7, 8, and 12.

(c) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision 30. Dispensing does not include the direct administering of a controlled substance to a patient by a licensed health care professional.

(d) "Dispenser" means a person authorized by law to dispense a controlled substance, pursuant to a valid prescription. For the purposes of this section, a dispenser does not include a licensed hospital pharmacy that distributes controlled substances for inpatient hospital care or a veterinarian who is dispensing prescriptions under section 156.18.

(e) "Prescriber" means a licensed health care professional who is authorized to prescribe a controlled substance under section 152.12, subdivision 1.

(f) "Prescription" has the meaning given in section 151.01, subdivision 16.

Subd. 1a.

Treatment of intractable pain.

This section is not intended to limit or interfere with the legitimate prescribing of controlled substances for pain. No prescriber shall be subject to disciplinary action by a health-related licensing board for prescribing a controlled substance according to the provisions of section 152.125.

Subd. 2.

Prescription electronic reporting system.

(a) The board shall establish by January 1, 2010, an electronic system for reporting the information required under subdivision 4 for all controlled substances dispensed within the state.

(b) The board may contract with a vendor for the purpose of obtaining technical assistance in the design, implementation, operation, and maintenance of the electronic reporting system.

Subd. 3.

Prescription Electronic Reporting Advisory Committee.

(a) The board shall convene an advisory committee. The committee must include at least one representative of:

(1) the Department of Health;

(2) the Department of Human Services;

(3) each health-related licensing board that licenses prescribers;

(4) a professional medical association, which may include an association of pain management and chemical dependency specialists;

(5) a professional pharmacy association;

(6) a professional nursing association;

(7) a professional dental association;

(8) a consumer privacy or security advocate; and

(9) a consumer or patient rights organization.

(b) The advisory committee shall advise the board on the development and operation of the electronic reporting system, including, but not limited to:

(1) technical standards for electronic prescription drug reporting;

(2) proper analysis and interpretation of prescription monitoring data; and

(3) an evaluation process for the program.

deleted text begin (c) The Board of Pharmacy, after consultation with the advisory committee, shall present recommendations and draft legislation on the issues addressed by the advisory committee under paragraph (b), to the legislature by December 15, 2007. deleted text end

Subd. 4.

Reporting requirements; notice.

(a) Each dispenser must submit the following data to the board or its designated vendor, subject to the notice required under paragraph (d):

(1) name of the prescriber;

(2) national provider identifier of the prescriber;

(3) name of the dispenser;

(4) national provider identifier of the dispenser;

(5) prescription number;

(6) name of the patient for whom the prescription was written;

(7) address of the patient for whom the prescription was written;

(8) date of birth of the patient for whom the prescription was written;

(9) date the prescription was written;

(10) date the prescription was filled;

(11) name and strength of the controlled substance;

(12) quantity of controlled substance prescribed;

(13) quantity of controlled substance dispensed; and

(14) number of days supply.

(b) The dispenser must submit the required information by a procedure and in a format established by the board. The board may allow dispensers to omit data listed in this subdivision or may require the submission of data not listed in this subdivision provided the omission or submission is necessary for the purpose of complying with the electronic reporting or data transmission standards of the American Society for Automation in Pharmacy, the National Council on Prescription Drug Programs, or other relevant national standard-setting body.

(c) A dispenser is not required to submit this data for those controlled substance prescriptions dispensed for:

(1) individuals residing in licensed skilled nursing or intermediate care facilities;

(2) individuals receiving assisted living services under chapter 144G or through a medical assistance home and community-based waiver;

(3) individuals receiving medication intravenously;

(4) individuals receiving hospice and other palliative or end-of-life care; and

(5) individuals receiving services from a home care provider regulated under chapter 144A.

(d) A dispenser must not submit data under this subdivision unless a conspicuous notice of the reporting requirements of this section is given to the patient for whom the prescription was written.

Subd. 5.

Use of data by board.

(a) The board shall develop and maintain a database of the data reported under subdivision 4. The board shall maintain data that could identify an individual prescriber or dispenser in encrypted form. The database may be used by permissible users identified under subdivision 6 for the identification of:

(1) individuals receiving prescriptions for controlled substances from prescribers who subsequently obtain controlled substances from dispensers in quantities or with a frequency inconsistent with generally recognized standards of use for those controlled substances, including standards accepted by national and international pain management associations; and

(2) individuals presenting forged or otherwise false or altered prescriptions for controlled substances to dispensers.

(b) No permissible user identified under subdivision 6 may access the database for the sole purpose of identifying prescribers of controlled substances for unusual or excessive prescribing patterns without a valid search warrant or court order.

(c) No personnel of a state or federal occupational licensing board or agency may access the database for the purpose of obtaining information to be used to initiate or substantiate a disciplinary action against a prescriber.

(d) Data reported under subdivision 4 shall be retained by the board in the database for a 12-month period, and shall be removed from the database new text begin no later than new text end 12 months from deleted text begin the datedeleted text end new text begin the last day of the month during which new text end the data was received.

Subd. 6.

Access to reporting system data.

(a) Except as indicated in this subdivision, the data submitted to the board under subdivision 4 is private data on individuals as defined in section 13.02, subdivision 12, and not subject to public disclosure.

(b) Except as specified in subdivision 5, the following persons shall be considered permissible users and may access the data submitted under subdivision 4 in the same or similar manner, and for the same or similar purposes, as those persons who are authorized to access similar private data on individuals under federal and state law:

(1) a prescribernew text begin or an agent or employee of the prescriber to whom the prescriber has delegated the task of accessing the datanew text end , to the extent the information relates specifically to a current patient, to whom the prescriber is prescribing or considering prescribing any controlled substancenew text begin and with the provision that the prescriber remains responsible for the use or misuse of data accessed by a delegated agent or employeenew text end ;

(2) a dispensernew text begin or an agent or employee of the dispenser to whom the dispenser has delegated the task of accessing the datanew text end , to the extent the information relates specifically to a current patient to whom that dispenser is dispensing or considering dispensing any controlled substancenew text begin and with the provision that the dispenser remains responsible for the use or misuse of data accessed by a delegated agent or employeenew text end ;

(3) an individual who is the recipient of a controlled substance prescription for which data was submitted under subdivision 4, or a guardian of the individual, parent or guardian of a minor, or health care agent of the individual acting under a health care directive under chapter 145C;

(4) personnel of the board specifically assigned to conduct a bona fide investigation of a specific licensee;

(5) personnel of the board engaged in the collection of controlled substance prescription information as part of the assigned duties and responsibilities under this section;

(6) authorized personnel of a vendor under contract with the board who are engaged in the design, implementation, operation, and maintenance of the electronic reporting system as part of the assigned duties and responsibilities of their employment, provided that access to data is limited to the minimum amount necessary to carry out such duties and responsibilities;

(7) federal, state, and local law enforcement authorities acting pursuant to a valid search warrant; and

(8) personnel of the medical assistance program assigned to use the data collected under this section to identify recipients whose usage of controlled substances may warrant restriction to a single primary care physician, a single outpatient pharmacy, or a single hospital.

For purposes of clause (3), access by an individual includes persons in the definition of an individual under section 13.02.

(c) Any permissible user identified in paragraph (b), who directly accesses the data electronically, shall implement and maintain a comprehensive information security program that contains administrative, technical, and physical safeguards that are appropriate to the user's size and complexity, and the sensitivity of the personal information obtained. The permissible user shall identify reasonably foreseeable internal and external risks to the security, confidentiality, and integrity of personal information that could result in the unauthorized disclosure, misuse, or other compromise of the information and assess the sufficiency of any safeguards in place to control the risks.

(d) The board shall not release data submitted under this section unless it is provided with evidence, satisfactory to the board, that the person requesting the information is entitled to receive the data.

(e) The board shall not release the name of a prescriber without the written consent of the prescriber or a valid search warrant or court order. The board shall provide a mechanism for a prescriber to submit to the board a signed consent authorizing the release of the prescriber's name when data containing the prescriber's name is requested.

(f) The board shall maintain a log of all persons who access the data and shall ensure that any permissible user complies with paragraph (c) prior to attaining direct access to the data.

(g) Section 13.05, subdivision 6, shall apply to any contract the board enters into pursuant to subdivision 2. A vendor shall not use data collected under this section for any purpose not specified in this section.

Subd. 7.

Disciplinary action.

(a) A dispenser who knowingly fails to submit data to the board as required under this section is subject to disciplinary action by the appropriate health-related licensing board.

(b) A prescriber or dispenser authorized to access the data who knowingly discloses the data in violation of state or federal laws relating to the privacy of health care data shall be subject to disciplinary action by the appropriate health-related licensing board, and appropriate civil penalties.

Subd. 8.

Evaluation and reporting.

(a) The board shall evaluate the prescription electronic reporting system to determine if the system is negatively impacting appropriate prescribing practices of controlled substances. The board may contract with a vendor to design and conduct the evaluation.

(b) The board shall submit the evaluation of the system to the legislature by deleted text begin Januarydeleted text end new text begin July new text end 15, 2011.

Subd. 9.

Immunity from liability; no requirement to obtain information.

(a) A pharmacist, prescriber, or other dispenser making a report to the program in good faith under this section is immune from any civil, criminal, or administrative liability, which might otherwise be incurred or imposed as a result of the report, or on the basis that the pharmacist or prescriber did or did not seek or obtain or use information from the program.

(b) Nothing in this section shall require a pharmacist, prescriber, or other dispenser to obtain information about a patient from the program, and the pharmacist, prescriber, or other dispenser, if acting in good faith, is immune from any civil, criminal, or administrative liability that might otherwise be incurred or imposed for requesting, receiving, or using information from the program.

new text begin Subd. 10. new text end

new text begin Funding. new text end

new text begin (a) The board may seek grants and private funds from nonprofit charitable foundations, the federal government, and other sources to fund the enhancement and ongoing operations of the prescription electronic reporting system established under this section. Any funds received shall be appropriated to the board for this purpose. The board may not expend funds to enhance the program in a way that conflicts with this section without seeking approval from the legislature. new text end

new text begin (b) The administrative services unit for the health-related licensing boards shall apportion between the Board of Medical Practice, the Board of Nursing, the Board of Dentistry, the Board of Podiatric Medicine, the Board of Optometry, and the Board of Pharmacy an amount to be paid through fees by each respective board. The amount apportioned to each board shall equal each board's share of the annual appropriation to the Board of Pharmacy from the state government special revenue fund for operating the prescription electronic reporting system under this section. Each board's apportioned share shall be based on the number of prescribers or dispensers that each board identified in this paragraph licenses as a percentage of the total number of prescribers and dispensers licensed collectively by these boards. Each respective board may adjust the fees that the boards are required to collect to compensate for the amount apportioned to each board by the administrative services unit. new text end

Sec. 4.

new text begin [246.125] CHEMICAL AND MENTAL HEALTH SERVICES TRANSFORMATION ADVISORY TASK FORCE. new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Chemical and Mental Health Services Transformation Advisory Task Force is established to make recommendations to the commissioner of human services and the legislature on the continuum of services needed to provide individuals with complex conditions including mental illness, chemical dependency, traumatic brain injury, and developmental disabilities access to quality care and the appropriate level of care across the state to promote wellness, reduce cost, and improve efficiency. new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The Chemical and Mental Health Services Transformation Advisory Task Force shall make recommendations to the commissioner and the legislature no later than December 15, 2010, on the following: new text end

new text begin (1) transformation needed to improve service delivery and provide a continuum of care, such as transition of current facilities, closure of current facilities, or the development of new models of care, including the redesign of the Anoka-Metro Regional Treatment Center; new text end

new text begin (2) gaps and barriers to accessing quality care, system inefficiencies, and cost pressures; new text end

new text begin (3) services that are best provided by the state and those that are best provided in the community; new text end

new text begin (4) an implementation plan to achieve integrated service delivery across the public, private, and nonprofit sectors; new text end

new text begin (5) an implementation plan to ensure that individuals with complex chemical and mental health needs receive the appropriate level of care to achieve recovery and wellness; and new text end

new text begin (6) financing mechanisms that include all possible revenue sources to maximize federal funding and promote cost efficiencies and sustainability. new text end

new text begin Subd. 3. new text end

new text begin Membership. new text end

new text begin The advisory task force shall be composed of the following, who will serve at the pleasure of their appointing authority: new text end

new text begin (1) the commissioner of human services or the commissioner's designee, and two additional representatives from the department; new text end

new text begin (2) two legislators appointed by the speaker of the house, one from the minority and one from the majority; new text end

new text begin (3) two legislators appointed by the senate rules committee, one from the minority and one from the majority; new text end

new text begin (4) one representative appointed by AFSCME Council 5; new text end

new text begin (5) one representative appointed by the ombudsman for mental health and developmental disabilities; new text end

new text begin (6) one representative appointed by the Minnesota Association of Professional Employees; new text end

new text begin (7) one representative appointed by the Minnesota Hospital Association; new text end

new text begin (8) one representative appointed by the Minnesota Nurses Association; new text end

new text begin (9) one representative appointed by NAMI-MN; new text end

new text begin (10) one representative appointed by the Mental Health Association of Minnesota; new text end

new text begin (11) one representative appointed by the Minnesota Association of Community Mental Health Programs; new text end

new text begin (12) one representative appointed by the Minnesota Dental Association; new text end

new text begin (13) three clients or client family members representing different populations receiving services from state-operated services, who are appointed by the commissioner; new text end

new text begin (14) one representative appointed by the chair of the state-operated services governing board; new text end

new text begin (15) one representative appointed by the Minnesota Disability Law Center; new text end

new text begin (16) one representative appointed by the Consumer Survivor Network; new text end

new text begin (17) one representative appointed by the Association of Residential Resources in Minnesota; new text end

new text begin (18) one representative appointed by the Minnesota Council of Child Caring Agencies; new text end

new text begin (19) one representative appointed by the Association of Minnesota Counties; and new text end

new text begin (20) one representative appointed by the Minnesota Pharmacists Association. new text end

new text begin The commissioner may appoint additional members to reflect stakeholders who are not represented above. new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin The commissioner shall convene the first meeting of the advisory task force and shall provide administrative support and staff. new text end

new text begin Subd. 5. new text end

new text begin Recommendations. new text end

new text begin The advisory task force must report its recommendations to the commissioner and to the legislature no later than December 15, 2010. new text end

new text begin Subd. 6. new text end

new text begin Member requirement. new text end

new text begin The commissioner shall provide per diem and travel expenses pursuant to section 256.01, subdivision 6, for task force members who are consumers or family members and whose participation on the task force is not as a paid representative of any agency, organization, or association. Notwithstanding section 15.059, other task force members are not eligible for per diem or travel reimbursement. new text end

Sec. 5.

new text begin [246.128] NOTIFICATION TO LEGISLATURE REQUIRED. new text end

new text begin The commissioner shall notify the chairs and ranking minority members of the relevant legislative committees regarding the redesign, closure, or relocation of state-operated services programs. The notification must include the advice of the Chemical and Mental Health Services Transformation Advisory Task Force under section 246.125. new text end

Sec. 6.

new text begin [246.129] LEGISLATIVE APPROVAL REQUIRED. new text end

new text begin If the closure of a state-operated facility is proposed, and the department and respective bargaining units fail to arrive at a mutually agreed upon solution to transfer affected state employees to other state jobs, the closure of the facility requires legislative approval. This does not apply to state-operated enterprise services. new text end

Sec. 7.

Minnesota Statutes 2008, section 246.18, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin State-operated services account. new text end

new text begin The state-operated services account is established in the special revenue fund. Revenue generated by new state-operated services listed under this section established after July 1, 2010, that are not enterprise activities must be deposited into the state-operated services account, unless otherwise specified in law: new text end

new text begin (1) intensive residential treatment services; new text end

new text begin (2) foster care services; and new text end

new text begin (3) psychiatric extensive recovery treatment services. new text end

Sec. 8.

Minnesota Statutes 2008, section 254B.01, subdivision 2, is amended to read:

Subd. 2.

American Indian.

For purposes of services provided under section 254B.09, subdivision deleted text begin 7deleted text end new text begin 8new text end , "American Indian" means a person who is a member of an Indian tribe, and the commissioner shall use the definitions of "Indian" and "Indian tribe" and "Indian organization" provided in Public Law 93-638. For purposes of services provided under section 254B.09, subdivision deleted text begin 4deleted text end new text begin 6new text end , "American Indian" means a resident of federally recognized tribal lands who is recognized as an Indian person by the federally recognized tribal governing body.

Sec. 9.

Minnesota Statutes 2008, section 254B.02, subdivision 1, is amended to read:

Subdivision 1.

Chemical dependency treatment allocation.

The chemical dependency deleted text begin funds appropriated for allocationdeleted text end new text begin treatment appropriation new text end shall be placed in a special revenue account. The commissioner shall annually transfer funds from the chemical dependency fund to pay for operation of the drug and alcohol abuse normative evaluation system and to pay for all costs incurred by adding two positions for licensing of chemical dependency treatment and rehabilitation programs located in hospitals for which funds are not otherwise appropriated. deleted text begin Six percent of the remaining money must be reserved for tribal allocation under section 254B.09, subdivisions 4 and 5. The commissioner shall annually divide the money available in the chemical dependency fund that is not held in reserve by counties from a previous allocation, or allocated to the American Indian chemical dependency tribal account. Six percent of the remaining money must be reserved for the nonreservation American Indian chemical dependency allocation for treatment of American Indians by eligible vendors under section 254B.05, subdivision 1.deleted text end The remainder of the money deleted text begin must be allocated among the counties according to the following formula, using state demographer data and other data sources determined by the commissioner: deleted text end

deleted text begin (a) For purposes of this formula, American Indians and children under age 14 are subtracted from the population of each county to determine the restricted population. deleted text end

deleted text begin (b) The amount of chemical dependency fund expenditures for entitled persons for services not covered by prepaid plans governed by section 256B.69 in the previous year is divided by the amount of chemical dependency fund expenditures for entitled persons for all services to determine the proportion of exempt service expenditures for each county. deleted text end

deleted text begin (c) The prepaid plan months of eligibility is multiplied by the proportion of exempt service expenditures to determine the adjusted prepaid plan months of eligibility for each county. deleted text end

deleted text begin (d) The adjusted prepaid plan months of eligibility is added to the number of restricted population fee for service months of eligibility for the Minnesota family investment program, general assistance, and medical assistance and divided by the county restricted population to determine county per capita months of covered service eligibility. deleted text end

deleted text begin (e) The number of adjusted prepaid plan months of eligibility for the state is added to the number of fee for service months of eligibility for the Minnesota family investment program, general assistance, and medical assistance for the state restricted population and divided by the state restricted population to determine state per capita months of covered service eligibility. deleted text end

deleted text begin (f) The county per capita months of covered service eligibility is divided by the state per capita months of covered service eligibility to determine the county welfare caseload factor. deleted text end

deleted text begin (g) The median married couple income for the most recent three-year period available for the state is divided by the median married couple income for the same period for each county to determine the income factor for each county. deleted text end

deleted text begin (h) The county restricted population is multiplied by the sum of the county welfare caseload factor and the county income factor to determine the adjusted population. deleted text end

deleted text begin (i) $15,000 shall be allocated to each county. deleted text end

deleted text begin (j) The remaining funds shall be allocated proportional to the county adjusted populationdeleted text end new text begin in the special revenue account must be used according to the requirements in this chapternew text end .

Sec. 10.

Minnesota Statutes 2008, section 254B.02, subdivision 5, is amended to read:

Subd. 5.

Administrative adjustment.

The commissioner may make payments to local agencies from money allocated under this section to support administrative activities under sections 254B.03 and 254B.04. The administrative payment must not exceed new text begin the lesser of: (1) new text end five percent of the first $50,000, four percent of the next $50,000, and three percent of the remaining payments for services from the deleted text begin allocationdeleted text end new text begin special revenue account according to subdivision 1; or (2) the local agency administrative payment for the fiscal year ending June 30, 2009, adjusted in proportion to the statewide change in the appropriation for this chapternew text end .

Sec. 11.

Minnesota Statutes 2008, section 254B.03, subdivision 4, is amended to read:

Subd. 4.

Division of costs.

Except for services provided by a county under section 254B.09, subdivision 1, or services provided under section 256B.69 or 256D.03, subdivision 4, paragraph (b), the county shall, out of local money, pay the state for deleted text begin 15deleted text end new text begin 16.14new text end percent of the cost of chemical dependency services, including those services provided to persons eligible for medical assistance under chapter 256B and general assistance medical care under chapter 256D. Counties may use the indigent hospitalization levy for treatment and hospital payments made under this section. deleted text begin Fifteendeleted text end new text begin 16.14new text end percent of any state collections from private or third-party pay, less 15 percent deleted text begin ofdeleted text end new text begin fornew text end the cost of payment and collections, must be distributed to the county that paid for a portion of the treatment under this section. deleted text begin If all funds allocated according to section 254B.02 are exhausted by a county and the county has met or exceeded the base level of expenditures under section 254B.02, subdivision 3, the county shall pay the state for 15 percent of the costs paid by the state under this section. The commissioner may refuse to pay state funds for services to persons not eligible under section 254B.04, subdivision 1, if the county financially responsible for the persons has exhausted its allocation. deleted text end

Sec. 12.

Minnesota Statutes 2008, section 254B.03, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Division of costs for medical assistance services. new text end

new text begin Notwithstanding subdivision 4, for chemical dependency services provided on or after October 1, 2008, and reimbursed by medical assistance, the county share is 30 percent of the nonfederal share. new text end

Sec. 13.

Minnesota Statutes 2008, section 254B.05, subdivision 4, is amended to read:

Subd. 4.

Regional treatment centers.

Regional treatment center chemical dependency treatment units are eligible vendors. The commissioner may expand the capacity of chemical dependency treatment units beyond the capacity funded by direct legislative appropriation to serve individuals who are referred for treatment by counties and whose treatment will be paid for deleted text begin with a county's allocation under section 254B.02deleted text end new text begin by funding under this chapternew text end or other funding sources. Notwithstanding the provisions of sections 254B.03 to 254B.041, payment for any person committed at county request to a regional treatment center under chapter 253B for chemical dependency treatment and determined to be ineligible under the chemical dependency consolidated treatment fund, shall become the responsibility of the county.

Sec. 14.

Minnesota Statutes 2008, section 254B.06, subdivision 2, is amended to read:

Subd. 2.

Allocation of collections.

The commissioner shall allocate all federal financial participation collections to deleted text begin the reserve fund under section 254B.02, subdivision 3deleted text end new text begin a special revenue accountnew text end . The commissioner shall deleted text begin retain 85deleted text end new text begin allocate 83.86new text end percent of patient payments and third-party payments new text begin to the special revenue account new text end and deleted text begin allocate the collections to the treatment allocation for the county that is financially responsible for the person. Fifteendeleted text end new text begin 16.14new text end percent deleted text begin of patient and third-party payments must be paiddeleted text end to the county financially responsible for the patient. deleted text begin Collections for patient payment and third-party payment for services provided under section 254B.09 shall be allocated to the allocation of the tribal unit which placed the person. Collections of federal financial participation for services provided under section 254B.09 shall be allocated to the tribal reserve account under section 254B.09, subdivision 5.deleted text end

Sec. 15.

Minnesota Statutes 2008, section 254B.09, subdivision 8, is amended to read:

Subd. 8.

Payments to improve services to American Indians.

The commissioner may set rates for chemical dependency services new text begin to American Indians new text end according to the American Indian Health Improvement Act, Public Law 94-437, for eligible vendors. These rates shall supersede rates set in county purchase of service agreements when payments are made on behalf of clients eligible according to Public Law 94-437.

Sec. 16.

new text begin [254B.13] PILOT PROJECTS; CHEMICAL HEALTH CARE. new text end

new text begin Subdivision 1. new text end

new text begin Authorization for pilot projects. new text end

new text begin The commissioner may approve and implement pilot projects developed under the planning process required under Laws 2009, chapter 79, article 7, section 26, to provide alternatives to and enhance coordination of the delivery of chemical health services required under section 254B.03. new text end

new text begin Subd. 2. new text end

new text begin Program design and implementation. new text end

new text begin (a) The commissioner and counties participating in the pilot projects shall continue to work in partnership to refine and implement the pilot projects initiated under Laws 2009, chapter 79, article 7, section 26. new text end

new text begin (b) The commissioner and counties participating in the pilot projects shall complete the planning phase by June 30, 2010, and, if approved by the commissioner for implementation, enter into agreements governing the operation of the pilot projects with implementation scheduled no earlier than July 1, 2010. new text end

new text begin Subd. 3. new text end

new text begin Program evaluation. new text end

new text begin The commissioner shall evaluate pilot projects under this section and report the results of the evaluation to the chairs and ranking minority members of the legislative committees with jurisdiction over chemical health issues by January 15, 2013. Evaluation of the pilot projects must be based on outcome evaluation criteria negotiated with the pilot projects prior to implementation. new text end

new text begin Subd. 4. new text end

new text begin Notice of project discontinuation. new text end

new text begin Each county's participation in the pilot project may be discontinued for any reason by the county or the commissioner of human services after 30 days' written notice to the other party. Any unspent funds held for the exiting county's pro rata share in the special revenue fund under the authority in subdivision 5, paragraph (d), shall be transferred to the consolidated chemical dependency treatment fund following discontinuation of the pilot project. new text end

new text begin Subd. 5. new text end

new text begin Duties of commissioner. new text end

new text begin (a) Notwithstanding any other provisions in this chapter, the commissioner may authorize pilot projects to use chemical dependency treatment funds to pay for nontreatment pilot services: new text end

new text begin (1) in addition to those authorized under section 254B.03, subdivision 2, paragraph (a); and new text end

new text begin (2) by vendors in addition to those authorized under section 254B.05 when not providing chemical dependency treatment services. new text end

new text begin (b) For purposes of this section, "nontreatment pilot services" include navigator services, peer support, family engagement and support, housing support, rent subsidies, supported employment, and independent living skills. new text end

new text begin (c) State expenditures for chemical dependency services and nontreatment pilot services provided by or through the pilot projects must not be greater than the chemical dependency treatment fund expected share of forecasted expenditures in the absence of the pilot projects. The commissioner may restructure the schedule of payments between the state and participating counties under the local agency share and division of cost provisions under section 254B.03, subdivisions 3 and 4, as necessary to facilitate the operation of the pilot projects. new text end

new text begin (d) To the extent that state fiscal year expenditures within a pilot project are less than the expected share of forecasted expenditures in the absence of the pilot projects, the commissioner shall deposit the unexpended funds in a separate account within the consolidated chemical dependency treatment fund, and make these funds available for expenditure by the pilot projects the following year. To the extent that treatment and nontreatment pilot services expenditures within the pilot project exceed the amount expected in the absence of the pilot projects, the pilot project county or counties are responsible for the portion of nontreatment pilot services expenditures in excess of the otherwise expected share of forecasted expenditures. new text end

new text begin (e) The commissioner may waive administrative rule requirements that are incompatible with the implementation of the pilot project, except that any chemical dependency treatment funded under this section must continue to be provided by a licensed treatment provider. new text end

new text begin (f) The commissioner shall not approve or enter into any agreement related to pilot projects authorized under this section that puts current or future federal funding at risk. new text end

new text begin Subd. 6. new text end

new text begin Duties of county board. new text end

new text begin The county board, or other county entity that is approved to administer a pilot project, shall: new text end

new text begin (1) administer the pilot project in a manner consistent with the objectives described in subdivision 2 and the planning process in subdivision 5; new text end

new text begin (2) ensure that no one is denied chemical dependency treatment services for which they would otherwise be eligible under section 254A.03, subdivision 3; and new text end

new text begin (3) provide the commissioner with timely and pertinent information as negotiated in agreements governing operation of the pilot projects. new text end

Sec. 17.

Minnesota Statutes 2009 Supplement, section 517.08, subdivision 1b, is amended to read:

Subd. 1b.

Term of license; fee; premarital education.

(a) The local registrar shall examine upon oath the parties applying for a license relative to the legality of the contemplated marriage. If one party is unable to appear in person, the party appearing may complete the absent applicant's information. The local registrar shall provide a copy of the marriage application to the party who is unable to appear, who must verify the accuracy of the party's information in a notarized statement. The marriage license must not be released until the verification statement has been received by the local registrar. If at the expiration of a five-day period, on being satisfied that there is no legal impediment to it, including the restriction contained in section 259.13, the local registrar shall issue the license, containing the full names of the parties before and after marriage, and county and state of residence, with the county seal attached, and make a record of the date of issuance. The license shall be valid for a period of six months. Except as provided in paragraph (c), the local registrar shall collect from the applicant a fee of deleted text begin $110deleted text end new text begin $115new text end for administering the oath, issuing, recording, and filing all papers required, and preparing and transmitting to the state registrar of vital statistics the reports of marriage required by this section. If the license should not be used within the period of six months due to illness or other extenuating circumstances, it may be surrendered to the local registrar for cancellation, and in that case a new license shall issue upon request of the parties of the original license without fee. A local registrar who knowingly issues or signs a marriage license in any manner other than as provided in this section shall pay to the parties aggrieved an amount not to exceed $1,000.

(b) In case of emergency or extraordinary circumstances, a judge of the district court of the county in which the application is made may authorize the license to be issued at any time before expiration of the five-day period required under paragraph (a). A waiver of the five-day waiting period must be in the following form:

STATE OF MINNESOTA, COUNTY OF .................... (insert county name)

APPLICATION FOR WAIVER OF MARRIAGE LICENSE WAITING PERIOD:

................................................................................. (legal names of the applicants)

Represent and state as follows:

That on ......................... (date of application) the applicants applied to the local registrar of the above-named county for a license to marry.

That it is necessary that the license be issued before the expiration of five days from the date of the application by reason of the following: (insert reason for requesting waiver of waiting period)

.............................................................................................................

.............................................................................................................

.............................................................................................................

WHEREAS, the applicants request that the judge waive the required five-day waiting period and the local registrar be authorized and directed to issue the marriage license immediately.

Date: .............................

.......................................................................................

.......................................................................................

(Signatures of applicants)

Acknowledged before me on this ....... day of .................... .

..........................................

NOTARY PUBLIC

COURT ORDER AND AUTHORIZATION:

STATE OF MINNESOTA, COUNTY OF .................... (insert county name)

After reviewing the above application, I am satisfied that an emergency or extraordinary circumstance exists that justifies the issuance of the marriage license before the expiration of five days from the date of the application. IT IS HEREBY ORDERED that the local registrar is authorized and directed to issue the license forthwith.

.....................................................

................................ (judge of district court)

................................ (date).

(c) The marriage license fee for parties who have completed at least 12 hours of premarital education is $40. In order to qualify for the reduced license fee, the parties must submit at the time of applying for the marriage license a signed, dated, and notarized statement from the person who provided the premarital education on their letterhead confirming that it was received. The premarital education must be provided by a licensed or ordained minister or the minister's designee, a person authorized to solemnize marriages under section 517.18, or a person authorized to practice marriage and family therapy under section 148B.33. The education must include the use of a premarital inventory and the teaching of communication and conflict management skills.

(d) The statement from the person who provided the premarital education under paragraph (b) must be in the following form:

"I, .......................... (name of educator), confirm that .......................... (names of both parties) received at least 12 hours of premarital education that included the use of a premarital inventory and the teaching of communication and conflict management skills. I am a licensed or ordained minister, a person authorized to solemnize marriages under Minnesota Statutes, section 517.18, or a person licensed to practice marriage and family therapy under Minnesota Statutes, section 148B.33."

The names of the parties in the educator's statement must be identical to the legal names of the parties as they appear in the marriage license application. Notwithstanding section 138.17, the educator's statement must be retained for seven years, after which time it may be destroyed.

(e) If section 259.13 applies to the request for a marriage license, the local registrar shall grant the marriage license without the requested name change. Alternatively, the local registrar may delay the granting of the marriage license until the party with the conviction:

(1) certifies under oath that 30 days have passed since service of the notice for a name change upon the prosecuting authority and, if applicable, the attorney general and no objection has been filed under section 259.13; or

(2) provides a certified copy of the court order granting it. The parties seeking the marriage license shall have the right to choose to have the license granted without the name change or to delay its granting pending further action on the name change request.

Sec. 18.

Minnesota Statutes 2008, section 517.08, subdivision 1c, as amended by Laws 2010, chapter 200, article 1, section 17, is amended to read:

Subd. 1c.

Disposition of license fee.

(a) Of the marriage license fee collected pursuant to subdivision 1b, paragraph (a), $25 must be retained by the county. The local registrar must pay deleted text begin $85deleted text end new text begin $90new text end to the commissioner of management and budget to be deposited as follows:

(1) $55 in the general fund;

(2) $3 in the state government special revenue fund to be appropriated to the commissioner of public safety for parenting time centers under section 119A.37;

(3) $2 in the special revenue fund to be appropriated to the commissioner of health for developing and implementing the MN ENABL program under section 145.9255; deleted text begin anddeleted text end

(4) $25 in the special revenue fund is appropriated to the commissioner of employment and economic development for the displaced homemaker program under section 116L.96new text begin ; andnew text end

new text begin (5) $5 in the special revenue fund, which is appropriated to the Board of Regents of the University of Minnesota for the Minnesota couples on the brink project under section 137.32new text end .

(b) Of the $40 fee under subdivision 1b, paragraph (b), $25 must be retained by the county. The local registrar must pay $15 to the commissioner of management and budget to be deposited as follows:

(1) $5 as provided in paragraph (a), clauses (2) and (3); and

(2) $10 in the special revenue fund is appropriated to the commissioner of employment and economic development for the displaced homemaker program under section 116L.96.

Sec. 19.

Laws 2009, chapter 79, article 3, section 18, is amended to read:

Sec. 18.

REQUIRING THE DEVELOPMENT OF COMMUNITY-BASED MENTAL HEALTH SERVICES FOR PATIENTS COMMITTED TO THE ANOKA-METRO REGIONAL TREATMENT CENTER.

deleted text begin In consultation with community partners, the commissioner of human servicesdeleted text end new text begin The Chemical and Mental Health Services Transformation Advisory Task Forcenew text end shall deleted text begin developdeleted text end new text begin recommendnew text end an array of community-based services new text begin in the metro area new text end to transform the current services now provided to patients at the Anoka-Metro Regional Treatment Center. The community-based services may be deleted text begin provided in facilities with 16 or fewer beds, and must provide the appropriate level of care for the patients being admitted to the facilitiesdeleted text end new text begin established in partnership with private and public hospital organizations, community mental health centers and other mental health community services providers, and community partnerships, and must be staffed by state employeesnew text end . The planning for this transition must be completed by October 1, deleted text begin 2009deleted text end new text begin 2010new text end , with deleted text begin an initialdeleted text end new text begin a new text end report new text begin detailing the transition plan, services that will be provided, including incorporating peer specialists where appropriate, the location of the services, and the number of patients that will be served, new text end to the committee chairs of health and human services by November 30, deleted text begin 2009, and a semiannual report on progress until the transition is completed. The commissioner of human services shall solicit interest from stakeholders and potential community partnersdeleted text end new text begin 2010new text end . The individuals deleted text begin working indeleted text end new text begin employed by new text end the community-based services deleted text begin facilitiesdeleted text end under this section are state employees supervised by the commissioner of human services. No layoffs shall occur as a result of restructuring under this section.new text begin Savings generated as a result of transitioning patients from the Anoka-Metro Regional Treatment Center to community-based services may be used to fund supportive housing staffed by state employees.new text end

Sec. 20.

new text begin REPORT ON HUMAN SERVICES FISCAL NOTES. new text end

new text begin The commissioner of management and budget shall issue a report to the legislature no later than November 15, 2010, making recommendations for improving the preparation and delivery of fiscal notes under Minnesota Statutes, section 3.98, relating to human services. The report shall consider: (1) the establishment of an independent fiscal note office in the human services department and (2) transferring the responsibility for preparing human services fiscal notes to the legislature. The report must include detailed information regarding the financial costs, staff resources, training, access to information, and data protection issues relative to the preparation of human services fiscal notes. The report shall describe methods and procedures used by other states to insure independence and accuracy of fiscal estimates on legislative proposals for changes in human services. new text end

Sec. 21.

new text begin PRESCRIPTION DRUG WASTE REDUCTION. new text end

new text begin The Minnesota Board of Pharmacy, in cooperation with the commissioners of human services, pollution control, health, veterans affairs, and corrections, shall study prescription drug waste reduction techniques and technologies applicable to long-term care facilities, veterans nursing homes, and correctional facilities. In conducting the study, the commissioners shall consult with the Minnesota Pharmacists Association, the University of Minnesota College of Pharmacy, University of Minnesota's Minnesota Technical Assistance Project, consumers, long-term care providers, and other interested parties. The board shall evaluate the extent to which new prescription drug waste reduction techniques and technologies can reduce the amount of prescription drugs that enter the waste stream and reduce state prescription drug costs. The techniques and technologies studied must include, but are not limited to, daily, weekly, and automated dose dispensing. The study must provide an estimate of the cost of adopting these and other techniques and technologies, and an estimate of waste reduction and state prescription drug savings that would result from adoption. The study must also evaluate methods of encouraging the adoption of effective drug waste reduction techniques and technologies. The board shall present recommendations on the adoption of new prescription drug waste reduction techniques and technologies to the legislature by December 15, 2011. new text end

Sec.