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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. GENERAL FUND SUMMARY.
    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.

2010
2011
Total

E-12 Education
$
(1,069,361,000)
$
(893,834,000)
$
(1,963,195,000)

Higher Education
(77,000)
(100,077,000)
(100,154,000)


Environment and Natural
Resources
(1,571,000)
(1,564,000)
(3,135,000)

Energy
(247,000)
(247,000)
(494,000)

Agriculture
(493,000)
(492,000)
(985,000)

Economic Development
(489,000)
(745,000)
(1,234,000)

Transportation
(1,649,000)
(11,649,000)
(13,298,000)

Public Safety
(79,000)
(79,000)
(158,000)

State Government
(1,694,000)
(1,820,000)
(3,514,000)

Health and Human Services
(74,704,000)
(83,154,000)
(157,858,000)

Tax Aids and Credits
(103,986,000)
(260,495,000)
(364,481,000)

Subtotal of Appropriations
(1,254,530,000)
(1,354,156,000)
(2,608,686,000)

Transfers In
40,418,000
40,000,000
80,418,000

Total
$
(1,294,948,000)
$
(1,394,156,000)
$
(2,689,104,000)

    Sec. 2. ALLOTMENT REDUCTIONS VOID.
The allotment reductions made by the commissioner of management and budget
from July 1, 2009, to the effective date of this section are void.
EFFECTIVE DATE.This section is effective the day following final enactment.

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
shall may 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 $150 $700 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 $350 $700 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 on by the 21st
25th day of each month. If the 21st 25th day of the month falls on a Saturday or Sunday,
the monthly payment must be made on by the first business day immediately following
the 21st 25th day of the month.

    Sec. 3. Minnesota Statutes 2008, section 276.112, is amended to read:
276.112 STATE PROPERTY TAXES; COUNTY TREASURER.
On 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 20 the estimated payment and settlement dates provided in
this chapter for the settlement of taxes levied by school districts, the county treasurer must
make full settlement with the county auditor according to sections 276.09, 276.10, and
276.111 for all receipts of state property taxes levied under section 275.025, and must
transmit those receipts to the commissioner of revenue by electronic means on the dates
and according to the provisions applicable to distributions to school districts.
EFFECTIVE DATE.This section is effective for distributions beginning October
1, 2010, and thereafter.

    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 that:
(1) 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 year.; and
(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:
(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.
(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.
(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.
(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.
(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).
(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.
    (b) Notwithstanding paragraph (a), 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:
    (1) $20,000 or more in the fiscal year ending June 30, 2005; or
    (2) (1) $10,000 or more in the, but less than $120,000 during a fiscal year ending
June 30, 2006 2009, and fiscal years thereafter, must remit by electronic means all
liabilities on returns due for periods beginning in the subsequent calendar year by
electronic means 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 4, 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.; or
(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.
(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.
(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.
(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.
EFFECTIVE DATE.This section is effective for taxes due and payable after
September 1, 2010.

    Sec. 5. Minnesota Statutes 2008, section 289A.60, is amended by adding a subdivision
to read:
    Subd. 31. Accelerated payment of monthly sales tax liability; penalty for
underpayment. 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:
(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.
(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.
EFFECTIVE DATE.This section is effective for taxes due and payable after
September 1, 2010.

ARTICLE 3
E-12 EDUCATION

    Section 1. Minnesota Statutes 2008, section 123B.75, is amended by adding a
subdivision to read:
    Subd. 1a. Definition. 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.
EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

    Sec. 2. Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:
    Subd. 5. Levy recognition. (a) "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.
(b) For fiscal year 2004 and later years 2009 and 2010, 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, 2, paragraph
(a), and 3
, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6
; plus
(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).
(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:
(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) 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
(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
(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).
EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

    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. 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.

    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 5
, paragraph (a) 1a, 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.
EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

    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 (a) or (b), minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph (a) or (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.
EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

    Sec. 6. Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:
    Subd. 2. Definitions. (a) The term "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) The term "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) The term "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 90 73 in fiscal year 2010, 70
in fiscal year 2011, and 90 in fiscal years 2012 and later.
EFFECTIVE DATE.This section is effective retroactively from July 1, 2009.

    Sec. 7. Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:
    Subd. 3. Payment dates and percentages. (a) For fiscal year 2004 and later, The
commissioner shall pay to a district on the dates indicated an amount computed as follows:
the cumulative amount guaranteed minus the sum of (a) (1) the district's other district
receipts through the current payment, and (b) (2) 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
(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:


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: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits


Payment 6
September 30: one-third of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits


Payment 8
October 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
(c) (b) In addition to the amounts paid under paragraph (a), for fiscal year 2005 and
later, 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
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to fiscal years 2010 and later.

    Sec. 8. Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision
to read:
    Subd. 7b. Advance final payment. (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:
(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
(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.
(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.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to fiscal years 2010 and later.

    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. 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. 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:


$
5,195,504,000
4,291,422,000
.....
2010


$
5,626,994,000
4,776,884,000
.....
2011
The 2010 appropriation includes $555,864,000 $553,591,000 for 2009 and
$4,639,640,000 $3,737,831,000 for 2010.
The 2011 appropriation includes $500,976,000 $1,363,306,000 for 2010 and
$5,126,018,000 $3,413,578,000 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:

$
50,00049,000
.....
2010

$
50,00049,000
.....
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:

$
287,000281,000
.....
2010

$
287,000281,000
.....
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:


$
20,943,000
20,147,600
.....
2010


$
20,943,000
19,811,000
.....
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) $632,000 $618,000 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) $171,000 $167,000 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) $40,000 each year $10,000 is for an early hearing loss intervention coordinator
under Minnesota Statutes, section 125A.63, subdivision 5. This appropriation is for
fiscal year 2010 only. 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) $9,109,000 in fiscal year 2009, $7,948,000 in fiscal year 2010, $9,275,000 in
fiscal year 2011, $9,574,000 $17,161,000 in fiscal year 2012, and $8,904,000 $19,175,000
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.
EFFECTIVE DATE.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.

    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:


$
1,175,000
1,000,000
.....
2010


$
1,034,000
1,132,000
.....
2011
The 2010 appropriation includes $140,000 for 2009 and $1,035,000 $860,000 for
2010.
The 2011 appropriation includes $115,000 $317,000 for 2010 and $919,000
$815,000 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:

$
854,000 684,000
.....
2010

$
927,000 576,000
.....
2011
The 2010 appropriation includes $0 for 2009 and $854,000 $684,000 for 2010.
The 2011 appropriation includes $94,000 $252,000 for 2010 and $833,000 $324,000
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:


$
17,250,000
12,861,000
.....
2010


$
17,889,000
16,157,000
.....
2011
The 2010 appropriation includes $1,647,000 $1,067,000 for 2009 and $15,603,000
$11,794,000 for 2010.
The 2011 appropriation includes $1,733,000 $4,362,000for 2010 and $16,156,000
$11,795,000 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:


$
22,159,000
17,297,000
.....
2010


$
22,712,000
19,729,000
.....
2011
The 2010 appropriation includes $2,077,000 for 2009 and $20,082,000 $15,220,000
for 2010.
The 2011 appropriation includes $2,231,000 $5,629,000 for 2010 and $20,481,000
$14,100,000 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:


$
40,453,000
34,833,000
.....
2010


$
44,775,000
44,938,000
.....
2011
The 2010 appropriation includes $3,704,000 for 2009 and $36,749,000 $31,129,000
for 2010.
The 2011 appropriation includes $4,083,000 $11,513,000 for 2010 and $40,692,000
$33,425,000 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:


$
1,488,000
1,218,000
.....
2010


$
1,064,000
743,000
.....
2011
The 2010 appropriation includes $202,000 for 2009 and $1,286,000 $1,016,000
for 2010.
The 2011 appropriation includes $142,000 $375,000 for 2010 and $922,000
$368,000 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:


$
65,358,000
50,812,000
.....
2010


$
65,484,000
61,782,000
.....
2011
The 2010 appropriation includes $6,110,000 $5,832,000 for 2009 and $59,248,000
$44,980,000 for 2010.
The 2011 appropriation includes $6,583,000 $16,636,000 for 2010 and $58,901,000
$45,146,000 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:


$
2,137,000
1,774,000
.....
2010


$
2,137,000
2,072,000
.....
2011
The 2010 appropriation includes $213,000 for 2009 and $1,924,000 $1,561,000
for 2010.
The 2011 appropriation includes $213,000 $576,000 for 2010 and $1,924,000
$1,496,000 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:


$
2,030,000
1,702,000
.....
2010


$
2,211,000
2,119,000
.....
2011
The 2010 appropriation includes $191,000 for 2009 and $1,839,000 $1,511,000
for 2010.
The 2011 appropriation includes $204,000 $558,000 for 2010 and $2,007,000
$1,561,000 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:


$
734,071,000
609,003,000
.....
2010


$
781,497,000
749,248,000
.....
2011
The 2010 appropriation includes $71,947,000 for 2009 and $662,124,000
$537,056,000 for 2010.
The 2011 appropriation includes $73,569,000 $198,637,000 for 2010 and
$707,928,000 $550,611,000 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:

$
258,000 224,000
.....
2010

$
282,000 282,000
.....
2011
The 2010 appropriation includes $24,000 for 2009 and $234,000 $200,000 for 2010.
The 2011 appropriation includes $26,000 $73,000 for 2010 and $256,000 $209,000
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:


$
110,871,000
96,926,000
.....
2010


$
110,877,000
108,410,000
.....
2011
The 2010 appropriation includes $37,046,000 for 2009 and $73,825,000 $59,880,000
for 2010.
The 2011 appropriation includes $37,022,000 $50,967,000 for 2010 and $73,855,000
$57,443,000 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:

$
161,000 132,000
.....
2010

$
160,000 135,000
.....
2011
The 2010 appropriation includes $10,000 for 2009 and $151,000 $122,000 for 2010.
The 2011 appropriation includes $16,000 $44,000 for 2010 and $144,000 $91,000
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:


$
7,948,000
6,608,000
.....
2010


$
9,275,000
8,204,000
.....
2011
The 2010 appropriation includes $851,000 for 2009 and $7,097,000 $5,757,000
for 2010.
The 2011 appropriation includes $788,000 $2,128,000 for 2010 and $8,487,000
$6,076,000 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:


$
19,287,000
16,008,000
.....
2010


$
19,287,000
18,708,000
.....
2011
The 2010 appropriation includes $1,928,000 for 2009 and $17,359,000 $14,080,000
for 2010.
The 2011 appropriation includes $1,928,000 $5,207,000 for 2010 and $17,359,000
$13,501,000 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:


$
2,302,000
1,918,000
.....
2010


$
2,073,000
2,146,000
.....
2011
The 2010 appropriation includes $260,000 for 2009 and $2,042,000 $1,658,000
for 2010.
The 2011 appropriation includes $226,000 $613,000 for 2010 and $1,847,000
$1,533,000 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:


$
1,098,000
1,104,000
.....
2010


$
1,120,000
1,126,000
.....
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:


$
13,570,000
11,264,000
.....
2010


$
13,570,000
13,162,000
.....
2011
The 2010 appropriation includes $1,357,000 for 2009 and $12,213,000 $9,907,000
for 2010.
The 2011 appropriation includes $1,357,000 $3,663,000 for 2010 and $12,213,000
$9,499,000 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:


$
1,300,000
1,079,000
.....
2010


$
1,300,000
1,261,000
.....
2011
The 2010 appropriation includes $130,000 for 2009 and $1,170,000 $949,000 for
2010.
The 2011 appropriation includes $130,000 $351,000 for 2010 and $1,170,000
$910,000 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:


$
2,300,000
1,909,000
.....
2010


$
2,300,000
2,231,000
.....
2011
The 2010 appropriation includes $230,000 for 2009 and $2,070,000 $1,679,000
for 2010.
The 2011 appropriation includes $230,000 $621,000 for 2010 and $2,070,000
$1,610,000 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:


$
10,095,000
8,379,000
.....
2010


$
10,095,000
9,792,000
.....
2011
The 2010 appropriation includes $1,009,000 for 2009 and $9,086,000 $7,370,000
for 2010.
The 2011 appropriation includes $1,009,000 $2,725,000 for 2010 and $9,086,000
$7,067,000 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:


$
22,955,000
19,005,000
.....
2010


$
22,547,000
21,460,000
.....
2011
The 2010 appropriation includes $3,020,000 for 2009 and $19,935,000 $15,985,000
for 2010.
The 2011 appropriation includes $2,214,000 $5,911,000 for 2010 and $20,333,000
$15,549,000 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:


$
3,694,000
2,922,000
.....
2010


$
3,800,000
3,425,000
.....
2011
The 2010 appropriation includes $367,000 for 2009 and $3,327,000 $2,555,000
for 2010.
The 2011 appropriation includes $369,000 $945,000 for 2010 and $3,431,000
$2,480,000 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:

$
585,000 476,000
.....
2010

$
467,000 473,000
.....
2011
The 2010 appropriation includes $73,000 for 2009 and $512,000 $403,000 for 2010.
The 2011 appropriation included $56,000 $148,000 for 2010 and $411,000 $325,000
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:

$
710,000 588,000
.....
2010

$
710,000688,000
.....
2011
The 2010 appropriation includes $71,000 $69,000 for 2009 and $639,000 $519,000
for 2010.
The 2011 appropriation includes $71,000 $191,000 for 2010 and $639,000 $497,000
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:


$
42,975,000
35,671,000
.....
2010


$
44,258,000
42,732,000
.....
2011
The 2010 appropriation includes $4,187,000 for 2009 and $38,788,000 $31,484,000
for 2010.
The 2011 appropriation includes $4,309,000 $11,644,000 for 2010 and $39,949,000
$31,088,000 for 2011.

ARTICLE 5
HIGHER EDUCATION


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(77,000)
$
(100,077,000)
$
(100,154,000)


Sec. 2. APPROPRIATIONS.
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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011



Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION
$
(77,000)
$
(77,000)
This reduction is from the appropriation for
agency administration.




Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
$
-0-
$
(50,000,000)
$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.
$47,921,000 of the reduction in 2011
is from the operations and maintenance
appropriation.
For fiscal years 2012 and 2013, the base for
operations and maintenance is $580,802,000
each year.



Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA

Subdivision 1.Total Appropriation
$
-0-
$
(50,000,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.Operations and Maintenance
-0-
(44,606,000)
For fiscal years 2012 and 2013, the base for
operations and maintenance is $578,370,000
each year.

Subd. 3.Special Appropriations

(a) Agriculture and Extension Service
-0-
(3,858,000)

(b) Health Sciences
-0-
(389,000)
$26,000 of the 2011 reduction is from the St.
Cloud family practice residency program.

(c) Institute of Technology
-0-
(102,000)

(d) System Special
-0-
(454,000)


(e) University of Minnesota and Mayo
Foundation Partnership
-0-
(591,000)

ARTICLE 6
ENVIRONMENT AND NATURAL RESOURCES


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize changes to direct appropriations, by
fund, made in this article.

2010
2011
Total

General
$
(1,571,000)
$
(1,564,000)
$
(3,135,000)


Sec. 2. APPROPRIATIONS.
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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. POLLUTION CONTROL AGENCY

Subdivision 1.Total Appropriation
$
(110,000)
$
(99,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.Water
(98,000)
(38,000)
The $98,000 reduction in fiscal year 2010
is from the agency's activities to develop
minimal impact design standards for urban
stormwater runoff.

Subd. 3.Land
-0-
(30,000)
The $30,000 reduction in the second year is
from the environmental health tracking and
biomonitoring activities of the agency.


Subd. 4.Environmental
Assistance and Cross Media
-0-
(16,000)


Subd. 5.Administrative
Support
(12,000)
(15,000)


Sec. 4. NATURAL RESOURCES

Subdivision 1.Total Appropriation
$
(1,375,000)
$
(1,379,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.


Subd. 2.Lands and
Minerals
(30,000)
(30,000)


Subd. 3.Water Resources
Management
(84,000)
(84,000)


Subd. 4.Forest
Management
(188,000)
(188,000)
$53,000 of the reduction each year is from
activities supporting the Forest Resources
Council with implementation of the
Sustainable Forest Resources Act.


Subd. 5.Parks and Trails
Management
(420,000)
(422,000)


Subd. 6.Fish and Wildlife
Management
(265,000)
(265,000)
$265,000 of the reduction each year is from
activities for preserving, restoring, and
enhancing grassland/wetland complexes on
public or private land.

Subd. 7.Ecological Services
(46,000)
(47,000)

Subd. 8.Enforcement
(230,000)
(230,000)


Subd. 9.Operations
Support
(112,000)
(113,000)


Sec. 5. METROPOLITAN COUNCIL
$
(86,000)
$
(86,000)

    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 $8,000,000 $48,000,000
in fiscal year 2011 from the closed landfill
investment fund in Minnesota Statutes,
section 115B.421, to the general fund. The
commissioner shall transfer $4,000,000
$12,000,000 on July 1, 2013, and $4,000,000
on July 1, in each of the years 2014, 2015,
2016, and 2017 from the general fund to the
closed landfill investment fund. For the July
1, 2014, each 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. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(247,000)
$
(247,000)
$
(494,000)


Sec. 2. APPROPRIATIONS.
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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. DEPARTMENT OF COMMERCE

Subdivision 1.Total Appropriation
$
(247,000)
$
(247,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.Administrative Services
(97,000)
(97,000)

Subd. 3.Market Assurance
(150,000)
(150,000)

ARTICLE 8
AGRICULTURE


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(493,000)
$
(492,000)
$
(985,000)


Sec. 2. AGRICULTURAL APPROPRIATIONS.
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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. DEPARTMENT OF AGRICULTURE

Subdivision 1.Total Appropriation
$
(493,000)
$
(492,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.Protection Services
(228,000)
(228,000)
$13,000 in fiscal year 2010 and $13,000 in
fiscal year 2011 are reductions from plant
pest surveys.


Subd. 3.Agricultural Marketing and
Development
(127,000)
(127,000)
$77,000 in fiscal year 2010 and $77,000 in
fiscal year 2011 are reductions for integrated
pest management activities.


Subd. 4.Administration and Financial
Assistance
(138,000)
(137,000)
$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.
$1,000 in fiscal year 2010 is a reduction from
the appropriation for the administration of
the Feeding Minnesota Task Force.

ARTICLE 9
ECONOMIC DEVELOPMENT


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(489,000)
$
(745,000)
$
(1,234,000)


Sec. 2. APPROPRIATIONS.
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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011



Sec. 3. EMPLOYMENT AND ECONOMIC
DEVELOPMENT

Subdivision 1.Total Appropriation
$
(285,000)
$
(285,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.


Subd. 2.Business and Community
Development
(87,000)
(87,000)
$25,000 in 2010 and $25,000 in 2011 are
from the appropriation for the Office of
Science and Technology.

Subd. 3.Workforce Development
(115,000)
(115,000)
$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.
$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.
$89,000 in 2010 and $89,000 in 2011 are
from the appropriation for state services for
the blind activities.

Subd. 4.State-Funded Administration
(83,000)
(83,000)


Sec. 4. HOUSING FINANCE AGENCY
$
-0-
$
(256,000)
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.
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.



Sec. 5. DEPARTMENT OF LABOR AND
INDUSTRY
$
(20,000)
$
(20,000)
This reduction is from the general
fund appropriation for labor
standards/apprenticeship.



Sec. 6. BUREAU OF MEDIATION
SERVICES
$
(16,000)
$
(16,000)
This reduction is from the general fund
appropriation for mediation services.



Sec. 7. MINNESOTA HISTORICAL
SOCIETY

Subdivision 1.Total Appropriation
$
(168,000)
$
(168,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.Education and Outreach
(96,000)
(96,000)

Subd. 3.Preservation and Access
(72,000)
(72,000)

ARTICLE 10
TRANSPORTATION


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(1,649,000)
$
(11,649,000)
$
(13,298,000)


Sec. 2. APPROPRIATIONS.
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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. TRANSPORTATION

Subdivision 1.Total Appropriation
$
(24,000)
$
(1,474,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.Multimodal Systems

(a) Transit
(9,000)
(1,459,000)
This reduction is to the Transit Improvement
Administration appropriation.
The base appropriation from the general fund
for fiscal years 2012 and 2013 is $16,292,000
each year.

(b) Freight
(9,000)
(9,000)
This reduction is to the rail service plan
appropriation.

(c) Electronic Communication
(6,000)
(6,000)
This reduction is to the Roosevelt Tower
appropriation.


Sec. 4. METROPOLITAN COUNCIL

Subdivision 1.Total Appropriation
$
(1,625,000)
$
(10,175,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.Bus Transit
(1,506,000)
(10,056,000)
This reduction is to the appropriation for bus
system operations.
The base appropriation for fiscal years 2012
and 2013 is $59,796,000 each year.

Subd. 3.Rail Operations
(119,000)
(119,000)
This reduction is to the appropriation for rail
systems.
The base appropriation for fiscal years 2012
and 2013 is $5,174,000 each year.

ARTICLE 11
PUBLIC SAFETY


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(79,000)
$
(79,000)
$
(158,000)


Sec. 2. APPROPRIATIONS.
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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011


Sec. 3. HUMAN RIGHTS
$
(79,000)
$
(79,000)

ARTICLE 12
STATE GOVERNMENT


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(1,694,000)
$
(1,820,000)
$
(3,514,000)


Sec. 2. APPROPRIATIONS.
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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011



Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR
$
(81,000)
$
(81,000)
$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.



Sec. 4. OFFICE OF ENTERPRISE
TECHNOLOGY
$
(130,000)
$
(130,000)
$96,000 of the reduction in each of
fiscal years 2010 and 2011 are from the
appropriation for information technology
security.


Sec. 5. ADMINISTRATION
$
(100,000)
$
(200,000)
These reductions are from the Government
and Citizen Services Program.
$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.
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.


Sec. 6. MANAGEMENT AND BUDGET
$
(459,000)
$
(459,000)

Health Care Access Fund Loan
(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.
(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.
(c) The amounts necessary to complete
these transfers are appropriated to the
commissioner from each fund.


Sec. 7. REVENUE
$
(924,000)
$
(950,000)
These reductions are from the tax system
management program.

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 unallotment the reductions announced prior
to February 28, 2010, under section 16A.152 under section 477A.0133. 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.
EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
thereafter.

    Sec. 2. [477A.0133] 2009 AND 2010 AID REDUCTIONS.
    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
have the meanings given them in this subdivision.
(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.
(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.
(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.
(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.
(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.
(g) "Adjusted net tax capacity per capita" means the jurisdiction's adjusted net tax
capacity divided by its population.
    Subd. 2. 2009 aid reductions. (a) The commissioner of revenue must compute a
2009 aid reduction amount for each county.
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.
For all other counties, the aid reduction amount is equal to 1.188968672 percent of
the county's 2009 revenue base.
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.
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.
No county's aid or reimbursements are reduced to less than zero under this section.
(b) The commissioner of revenue must compute a 2009 aid reduction amount for
each city.
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.
For all other cities, the aid reduction amount is equal to 3.3127634 percent of the
city's 2009 revenue base.
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.
The reduction amount for a city is further limited to $22 per capita.
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.
No city's aid or reimbursements are reduced to less than zero under this section.
(c) The commissioner of revenue must compute a 2009 aid reduction amount for
each town.
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.
For all other towns, the aid reduction amount is equal to 1.735103 percent of the
town's 2009 revenue base.
The reduction amount is limited to $5 per capita.
The reduction amount is applied to reduce the amount payable to the town in 2009
as market value credit reimbursements under section 273.1384.
No town's reimbursements are reduced to less than zero under this section.
    Subd. 3. 2010 aid reductions. (a) The commissioner of revenue must compute a
2010 aid reduction amount for each county.
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.
For all other counties, the aid reduction amount is equal to 2.41396687 percent of
the county's 2009 revenue base.
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.
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.
No county's aid or reimbursements are reduced to less than zero under this section.
(b) The commissioner of revenue must compute a 2010 aid reduction amount for
each city.
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.
For all other cities, the aid reduction amount is equal to 7.643803025 percent of the
city's 2009 revenue base.
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.
The reduction amount for a city is further limited to $55 per capita.
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.
No city's aid or reimbursements are reduced to less than zero under this section.
(c) The commissioner of revenue must compute a 2010 aid reduction amount for
each town.
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.
For all other towns, the aid reduction amount is equal to 3.660798 percent of the
town's 2009 revenue base.
The reduction amount is limited to $10 per capita.
The reduction amount is applied to reduce the amount payable to the town in 2010
as market value credit reimbursements under section 273.1384.
No town's reimbursements are reduced to less than zero under this section.
EFFECTIVE DATE.This section is effective the day following final enactment
and is retroactive for aids and credit reimbursements payable in 2009.

    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 reduction of allotments
under section 16A.152 reductions under section 477A.0133.
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 for unallotments under section 477A.0133.
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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. REFUNDS AND CREDITS.
    Subdivision 1. Political contribution credit. 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.
    Subd. 2. Property tax refund. 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:
(1) "rent constituting property taxes" must be calculated by substituting "15 percent"
for "19 percent" under Minnesota Statutes, section 290A.03, subdivision 11; and
(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.
    Subd. 3. Sustainable forest incentive program. 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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 5. LEVY VALIDATION.
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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 6. PAYMENT OF REFUNDS.
(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.
(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.

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
added to the appropriation for deposited in the special revenue fund and appropriated to
the legislative auditor to pay audit expenses.

    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 the general an account in
the special revenue 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 may be 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 is appropriated to the agency and
added to the appropriations from which the costs were paid. 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.

    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 must be deposited in an account in a fund other
than the general fund and 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 deposited in an account in a fund other than the
general fund and 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 the general an account in the natural
resources fund. Permit fees received are appropriated annually from the general natural
resources 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 general special revenue 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
the general fund an account in the special revenue fund, 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 general special revenue 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 general special revenue 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 general special revenue 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) must be deposited in an account in the special
revenue fund and 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 must be deposited in an account in
the special revenue fund and 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 general special revenue 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 the state general an account in
the special revenue 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 general special revenue 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 forwarded to the general deposited in an account in the special revenue 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 general special revenue 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 guitclaim quitclaim 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 an account in the general natural resources 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. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(74,704,000)
$
(83,154,000)
$
(157,858,000)


Sec. 2. APPROPRIATIONS.
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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011



Sec. 3. DEPARTMENT OF HUMAN
SERVICES

Subdivision 1.Total Appropriation
$
(74,177,000)
$
(82,629,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.


Subd. 2.Agency Management; Financial
Operations
(3,289,000)
(3,282,000)


Subd. 3.Children and Economic Assistance
Grants

(a) Child Support Enforcement Grants
(3,400,000)
(1,249,000)

(b) Children's Services Grants
(600,000)
-0-
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.

(c) Children and Community Services Grants
(16,900,000)
(1,500,000)

(d) General Assistance Grants
(5,267,000)
-0-

(e) Minnesota Supplemental Aid Grants
(733,000)
-0-

(f) Group Residential Housing Grants
(467,000)
(706,000)

Subd. 4.Basic Health Care Grants


(a) Medical Assistance Basic Health Care
Grants - Families and Children
(5,599,000)
(29,979,000)


(b) Medical Assistance Basic Health Care
Grants - Elderly and Disabled
(2,331,000)
(22,298,000)
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).
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).

(c) General Assistance Medical Care Grants
(15,879,000)
-0-


Subd. 5.Health Care Management;
Administration
(180,000)
(360,000)
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.

Subd. 6.Continuing Care Grants

(a) Aging and Adult Services Grants
(3,600,000)
(3,600,000)
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.
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.


(b) Medical Assistance Long-Term Care
Facilities Grants
(3,827,000)
(2,745,000)
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.
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.


(c) Medical Assistance Long-Term Care
Waivers and Home Care Grants
(2,318,000)
(5,807,000)
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.

(d) Adult Mental Health Grants
(5,000,000)
-0-

(e) Chemical Dependency Entitlement Grants
(3,622,000)
(3,622,000)


(f) Chemical Dependency Nonentitlement
Grants
(393,000)
(393,000)

(g) Other Continuing Care Grants
-0-
(2,500,000)
Other Continuing Care Grants Delay.
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.

Subd. 7.Continuing Care Management
(350,000)
-0-
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.


Subd. 8.State-Operated Services; Adult
Mental Health Services
(422,000)
(4,588,000)


Sec. 4. DEPARTMENT OF HEALTH

Subdivision. 1.Total Appropriation
$
(527,000)
$
(525,000)
The appropriation reductions for each
purpose are shown in the following
subdivisions.


Subd. 2.Community and Family Health
Promotion
(53,000)
(355,000)

Subd. 3.Policy Quality and Compliance
(118,000)
(74,000)
Office of Unlicensed Health Care Practice.
Of the general fund reduction $74,000
in fiscal year 2011 is from the Office of
Unlicensed Complementary and Alternative
Health Care Practice.

Subd. 4.Health Protection
(225,000)
(74,000)

Subd. 5.Administrative Support Services
(131,000)
(22,000)

    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,
2009; 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 attributes.
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.
(d) $55,000 in fiscal year 2010 is for
pentachlorophenol.
(e) $20,000 in fiscal year 2010 is for a PFC
Citizens Advisory Group.
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 month, except
that this limit shall be 275 hours per month for the period July 1, 2009, through June 30,
2011, 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.
EFFECTIVE DATE.This section is effective July 1, 2009.

    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.
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, 2009;
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).
EFFECTIVE DATE.This section is effective retroactively from October 1, 2009.

    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 3.5 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.
(g) Effective for services rendered on or after January 1, 2011, through December 31,
2011, the commissioner shall withhold four 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.
(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.
EFFECTIVE DATE.The additional withhold percentage in paragraph (f) is
effective retroactively from January 1, 2010.

    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 percent, 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, 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.
EFFECTIVE DATE.The additional rate reductions in this section are effective
retroactively from July 1, 2009.

    Sec. 11. Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:
    Subd. 4. Critical access dental providers. (a) 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.
(b) Notwithstanding paragraph (a), critical access payments must not be made for
dental services provided from April 1, 2010, through June 30, 2010.
EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

    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 percent, 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 programs, 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.
EFFECTIVE DATE.The additional rate reductions in this section are effective
retroactively from July 1, 2009.

    Sec. 13. REDUCTION OF GROUP RESIDENTIAL HOUSING
SUPPLEMENTAL SERVICE RATE.
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).
EFFECTIVE DATE.This section is effective retroactively from November 1, 2009.

    Sec. 14. ARTICLE EFFECTIVE DATE.
This article is effective the day following final enactment.

ARTICLE 16
HEALTH CARE

    Section 1. Minnesota Statutes 2008, section 256.01, is amended by adding a
subdivision to read:
    Subd. 32. Review and evaluation of ongoing studies. 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.

    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 three 24 months of the rebased
period beginning January 1, 2011, rates shall not be rebased 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 change, 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 hospitals.
Effective April 1, 2012 January 1, 2013, 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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    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.
(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.
EFFECTIVE DATE.This section is effective July 1, 2011.

    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 semiannually annually 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:
    Subd. 15. Adults without children. Medical assistance may be paid for a person
who is:
(1) at least age 21 and under age 65;
(2) not pregnant;
(3) not entitled to Medicare Part A or enrolled in Medicare Part B under Title XVIII
of the Social Security Act;
(4) not an adult in a family with children as defined in section 256L.01, subdivision
3a; and
(5) not described in another subdivision of this section.

    Sec. 6. Minnesota Statutes 2008, section 256B.056, subdivision 3, is amended to read:
    Subd. 3. Asset limitations for individuals and families. (a) 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).
(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision
15.

    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) 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.
(e) In computing income to determine eligibility of persons under paragraphs (a) to
(c) (d) 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. 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.
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.
EFFECTIVE DATE.This section is effective July 1, 2010, for services provided
through fee-for-service, and January 1, 2011, for services provided through managed care.

    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. 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. 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.
EFFECTIVE DATE.This section is effective July 1, 2010, for services provided
through fee-for-service, and January 1, 2011, for services provided through managed care.

    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. 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. 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.
EFFECTIVE DATE.This section is effective July 1, 2010, for services provided
through fee-for-service, and January 1, 2011, for services provided through managed care.

    Sec. 11. Minnesota Statutes 2008, section 256B.0625, is amended by adding a
subdivision to read:
    Subd. 8e. Chiropractic services. 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.

    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) 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.
(e) 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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    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. 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.
EFFECTIVE DATE.This section is effective January 1, 2011.

    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.
The commissioner may set reimbursement rates for specified categories of medical
supplies at levels below the Medicare payment rate.

    Sec. 15. Minnesota Statutes 2008, section 256B.0625, is amended by adding a
subdivision to read:
    Subd. 54. Services provided in birth centers. (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.
(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.
(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.
(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.
(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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    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) $6 $3.50 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.
EFFECTIVE DATE.This section is effective January 1, 2011.

    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 the co-payments
effective on or after 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) 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.
    (e) For purposes of paragraphs (a) and (b), participation in the general assistance
medical care program applies only to pharmacy providers.
EFFECTIVE DATE.This section is effective June 1, 2010.

    Sec. 19. [256B.0755] HEALTH CARE DELIVERY SYSTEMS
DEMONSTRATION PROJECT.
    Subdivision 1. Implementation. (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.
(b) In developing the request for proposals, the commissioner shall:
(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;
(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;
(3) allow maximum flexibility to encourage innovation and variation so that a variety
of provider collaborations are able to become health care delivery systems;
(4) encourage and authorize different levels and types of financial risk;
(5) encourage and authorize projects representing a wide variety of geographic
locations, patient populations, provider relationships, and care coordination models;
(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;
(7) encourage projects established by community hospitals, clinics, and other
providers in rural communities;
(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;
(9) establish a mechanism to monitor enrollment;
(10) establish quality standards for the delivery system demonstrations;
(11) encourage participation of privately insured population so as to create sufficient
alignment in demonstration systems; and
(12) coordinate projects with any coordinated care delivery systems established
under section 256D.031.
(c) To be eligible to participate in the demonstration project, a health care delivery
system must:
(1) provide required covered services and care coordination to recipients enrolled in
the health care delivery system;
(2) establish a process to monitor enrollment and ensure the quality of care provided;
(3) in cooperation with counties and community social service agencies, coordinate
the delivery of health care services with existing social services programs;
(4) provide a system for advocacy and consumer protection; and
(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.
(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:
(1) professionals in group practice arrangements;
(2) networks of individual practices of professionals;
(3) partnerships or joint venture arrangements between hospitals and health care
professionals;
(4) hospitals employing professionals; and
(5) other groups of providers of services and suppliers as the commissioner
determines appropriate.
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).
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.
(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).
    Subd. 2. Enrollment. (a) Individuals eligible for medical assistance or
MinnesotaCare shall be eligible for enrollment in a health care delivery system.
(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.
    Subd. 3. Accountability. (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).
(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.
    Subd. 4. Payment system. (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.
(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.
(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.
    Subd. 5. Outpatient prescription drug coverage. Outpatient prescription drug
coverage may be provided through accountable care organizations only if the delivery
method qualifies for federal prescription drug rebates.
    Subd. 6. Federal approval. 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.
    Subd. 7. Expansion. 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.
EFFECTIVE DATE.This section is effective July 1, 2011.

    Sec. 20. [256B.0756] HENNEPIN AND RAMSEY COUNTIES PILOT
PROGRAM.
(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.
(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.
(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.
(d) The commissioner shall cap pilot program enrollment at 7,000 enrollees for
Hennepin County and 3,500 enrollees for Ramsey County.
(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.
(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.
(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.

    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 plan's payment rate plan payments 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.
(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.
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.
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.
(g) (h) 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.
(h) (i) 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) (j) 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) (k) 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) (l) 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) (m) 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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 22. Minnesota Statutes 2008, section 256B.69, is amended by adding a
subdivision to read:
    Subd. 5l. Actuarial soundness. (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:
(1) be neither inadequate nor excessive;
(2) satisfy federal requirements;
(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;
(4) be developed in accordance with generally accepted actuarial principles and
practices;
(5) be appropriate for the populations to be covered and the services to be furnished
under the contract; and
(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.
(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.

    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 sections 256D.03, subdivision
4
, paragraph (c), and section 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.
EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

    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 and general assistance medical care who would otherwise be required to or may
elect to participate in the prepaid medical assistance or prepaid general assistance medical
care programs according to sections section 256B.69 and 256D.03. Counties that elect to
purchase or provide health care under this section must provide all services included in
prepaid managed care programs according to sections section 256B.69, subdivisions 1
to 22
, and 256D.03. County-based purchasing under this section is governed by section
256B.69, unless otherwise provided for under this section.
EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

    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 does and the reductions in paragraph (d) do 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
and the reductions in paragraph (d) do 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.
(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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    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.
(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.
(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.
(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).
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 27. Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:
    Subd. 4. Critical access dental providers. (a) 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 managed care plans and county-based purchasing plans 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:
(b) The commissioner shall designate the following dentists and dental clinics as
critical access dental providers:
    (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 nonprofit community clinics
that:
(i) have nonprofit status in accordance with chapter 317A;
(ii) have tax exempt status in accordance with the Internal Revenue Code, section
501(c)(3);
(iii) are established to provide oral health services to patients who are low income,
uninsured, have special needs, and are underserved;
(iv) have professional staff familiar with the cultural background of the clinic's
patients;
(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;
(vi) do not restrict access or services because of a patient's financial limitations
or public assistance status; and
(vii) have free care available as needed;
    (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 federally qualified health centers, rural health clinics, and public
health clinics; 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 county owned
and operated hospital-based dental clinics;
(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
(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 system.
    In the absence of a critical access dental provider in a service area, (c) 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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    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. 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.
(b) 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 the reduction
effective July 1, 2009, and payments made to the plans shall be reduced effective October
1, 2010, to reflect the reduction effective July 1, 2010.
(b) (c) 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. [256B.767] MEDICARE PAYMENT LIMIT.
(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.
(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.
(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.

    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 13g 13h.
    (c) Outpatient prescription drug coverage does not include drugs administered in a
clinic or other outpatient setting.
(d) For the period beginning April 1, 2010, to May 31, 2010, general assistance
medical care covers the services listed in subdivision 4.
EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

    Sec. 31. Minnesota Statutes 2008, section 256D.03, subdivision 3b, is amended to read:
    Subd. 3b. Cooperation. (a) General assistance or general assistance medical care
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. 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.
    (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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    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.
(c) If section 256B.055, subdivision 15, and section 256B.056, subdivisions 3 and 4
are implemented effective July 1, 2010:
(1) general assistance medical care must be paid on a fee-for-service basis for the
period June 1 to June 30, 2010;
(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
(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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    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 room for services
provided through December 31, 2010, and $3.50 effective January 1, 2011.
    (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.
(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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    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) 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. 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.

    Sec. 35. Minnesota Statutes 2008, section 256L.07, is amended by adding a subdivision
to read:
    Subd. 9. Firefighters; volunteer ambulance attendants. (a) For purposes of this
subdivision, "qualified individual" means:
(1) a volunteer firefighter with a department as defined in section 299N.01,
subdivision 2, who has passed the probationary period; and
(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15.
(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.
EFFECTIVE DATE.This section is effective April 1, 2011.

    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 or general assistance medical care will remain in
the same managed care plan if the managed care plan has a contract for that population.
Effective January 1, 1998, 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 and general assistance medical care programs program
under a contract with the Department of Human Services in service areas where they
participate in the medical assistance program.
EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

    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) 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.
    (c) For services rendered on or after January 1, 2004, the commissioner shall
withhold five percent of managed care plan payments and county-based purchasing
plan payments 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. 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.
(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).
(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.
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.
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.
(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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    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, 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 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 medically
necessary useful to reduce asthma symptoms. Provision of these items of durable medical
equipment 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 section, with the exception of subdivision 4, expires
December 31, 2010 August 31, 2011. Subdivision 4 expires February 28, 2012.

    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 November 30, 2010 February 28, 2011, 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 November 30, 2010 February 28, 2011, 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.
(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.
(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.

    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 date. 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. as follows:
(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;
(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);
(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
(4) the amounts determined under clauses (1) to (3) shall be allocated to participating
hospitals.
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) 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.
(c) 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.
(c) (d) The commissioner shall apply for federal matching funds under section
256B.199, paragraphs (a) to (d), for expenditures under this subdivision.
(d) (e) 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.
EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

    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 November 30, 2010 February 28, 2011.
(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:
EFFECTIVE DATE.This section is effective June 1, 2010.

    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 April June 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 January 1, 2011 July 1, 2010.
EFFECTIVE DATE.This section is effective retroactively from April 1, 2010.

    Sec. 45. [256B.69] [Subd. 29] PREPAID HEALTH PLAN RATES.
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.
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 46. STATE PLAN AMENDMENT; FEDERAL APPROVAL.
(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.
(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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 47. REPEALER.
(a) Minnesota Statutes 2008, section 256D.03, subdivisions 3, 3a, 5, 6, 7, and 8, are
repealed contingently upon implementation of Minnesota Statutes, sections 256B.055,
subdivision 15, and 256B.056, subdivisions 3 and 4.
(b) Laws 2010, chapter 200, article 1, sections 12, subdivisions 1, 2, 3, and 5; 18;
and 19, are repealed contingently upon implementation of Minnesota Statutes, sections
256B.055, subdivision 15, and 256B.056, subdivisions 3 and 4.
(c) Laws 2010, chapter 200, article 1, section 12, subdivisions 4, 6, 7, 8, 9, and 10,
are repealed contingently upon implementation of Minnesota Statutes, sections 256B.055,
subdivision 15, and 256B.056, subdivisions 3 and 4.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 48. EFFECTIVE DATE OF EARLY ENROLLMENT IN MEDICAL
ASSISTANCE.
(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.
(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.
(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.
(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.
(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.
EFFECTIVE DATE.This section is effective the day following final enactment.

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; and
(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 owner; and
(8) whether services are included in the base rate to be paid by the resident.
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 resident, 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 rate;
(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. [144D.08] UNIFORM CONSUMER INFORMATION GUIDE.
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.

    Sec. 4. [144D.09] TERMINATION OF LEASE.
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.

    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, which services may be covered by Medicare, 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.
(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:
(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 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;
(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;
(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
(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.

    Sec. 7. [256.4825] REPORT REGARDING PROGRAMS AND SERVICES FOR
PEOPLE WITH DISABILITIES.
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.

    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 about the availability of housing options, as well as
registered housing 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 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 Guide 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 options.
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) but for excess earnings or assets, 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) effective November 1, 2003, 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.
(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.
EFFECTIVE DATE.This section is effective January 1, 2011.

    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 310 275 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.
EFFECTIVE DATE.This section is effective July 1, 2011.

    Sec. 11. Minnesota Statutes 2008, section 256B.0915, is amended by adding a
subdivision to read:
    Subd. 3i. Rate reduction for customized living and 24-hour customized living
services. (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.
(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.

    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.
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, For the rate period from October 1, 2009, to
September 30, 2013, 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).
EFFECTIVE DATE.This section is effective retroactive to October 1, 2009.

    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. 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. 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 for
contract years starting in 2012, 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 years year 2010 and 2011 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. 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. 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 for further expansion of to
reopen 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
by February 1, 2007 prior to implementation.
    (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 January July 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; and
(6) what consumer ownership models, if any, are appropriate; and
(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 disabilities.
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. COMMISSIONER TO SEEK FEDERAL MATCH.
(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.
(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.

    Sec. 17. ICF/MR RATE INCREASE.
    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.

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 that:
(1) their gross income meets the federal Food Stamp requirements under United
States Code, title 7, section 2014(c); and
(2) they have financial resources, excluding vehicles, of less than $7,000 is equal to
or less than 165 percent of the federal poverty guidelines for the same family size.
EFFECTIVE DATE.This section is effective November 1, 2010.

    Sec. 2. Minnesota Statutes 2008, section 256I.05, is amended by adding a subdivision
to read:
    Subd. 1n. Supplemental rate; Mahnomen County. 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.

    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; or
(5) the child is the mother's first child subsequent to a pregnancy that did not result
in a live birth; or
(6) 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.
EFFECTIVE DATE.This section is effective September 1, 2010.

    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 section chapter, "severely limits the person's ability to obtain
or maintain suitable employment" means:
    (1) that a qualified professional has determined that the person's condition prevents
the person from working 20 or more hours per week; or
    (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:
    (i) significantly restricts the range of employment that the person is able to perform;
or
    (ii) significantly interferes with the person's ability to obtain or maintain suitable
employment for 20 or more hours per week.

    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 $50 $25 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.
EFFECTIVE DATE.This section is effective October 1, 2010.

ARTICLE 19
MISCELLANEOUS

    Section 1. [62Q.545] COVERAGE OF PRIVATE DUTY NURSING SERVICES.
(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.
(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.
EFFECTIVE DATE.This section is effective July 1, 2010, and applies to health
plans offered, sold, issued, or renewed on or after that date.

    Sec. 2. [137.32] MINNESOTA COUPLES ON THE BRINK PROJECT.
    Subdivision 1. Establishment. 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.
    Subd. 2. Purpose. 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.
    Subd. 3. Implementation. The regents shall:
(1) enter into contracts or manage a grant process for implementation of the project;
and
(2) develop and implement an evaluation component for the project.

    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 SCHEDULE II AND III 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.
    (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.
    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 no later than 12 months
from the date the last day of the month during which 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 prescriber or an agent or employee of the prescriber to whom the prescriber has
delegated the task of accessing the data, to the extent the information relates specifically to
a current patient, to whom the prescriber is prescribing or considering prescribing any
controlled substance and with the provision that the prescriber remains responsible for the
use or misuse of data accessed by a delegated agent or employee;
    (2) a dispenser or an agent or employee of the dispenser to whom the dispenser has
delegated the task of accessing the data, to the extent the information relates specifically
to a current patient to whom that dispenser is dispensing or considering dispensing any
controlled substance and with the provision that the dispenser remains responsible for the
use or misuse of data accessed by a delegated agent or employee;
    (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 January
July 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.
    Subd. 10. Funding. (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.
(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.

    Sec. 4. [246.125] CHEMICAL AND MENTAL HEALTH SERVICES
TRANSFORMATION ADVISORY TASK FORCE.
    Subdivision 1. Establishment. 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.
    Subd. 2. Duties. 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:
(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;
(2) gaps and barriers to accessing quality care, system inefficiencies, and cost
pressures;
(3) services that are best provided by the state and those that are best provided
in the community;
(4) an implementation plan to achieve integrated service delivery across the public,
private, and nonprofit sectors;
(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
(6) financing mechanisms that include all possible revenue sources to maximize
federal funding and promote cost efficiencies and sustainability.
    Subd. 3. Membership. The advisory task force shall be composed of the following,
who will serve at the pleasure of their appointing authority:
(1) the commissioner of human services or the commissioner's designee, and two
additional representatives from the department;
(2) two legislators appointed by the speaker of the house, one from the minority
and one from the majority;
(3) two legislators appointed by the senate rules committee, one from the minority
and one from the majority;
(4) one representative appointed by AFSCME Council 5;
(5) one representative appointed by the ombudsman for mental health and
developmental disabilities;
(6) one representative appointed by the Minnesota Association of Professional
Employees;
(7) one representative appointed by the Minnesota Hospital Association;
(8) one representative appointed by the Minnesota Nurses Association;
(9) one representative appointed by NAMI-MN;
(10) one representative appointed by the Mental Health Association of Minnesota;
(11) one representative appointed by the Minnesota Association of Community
Mental Health Programs;
(12) one representative appointed by the Minnesota Dental Association;
(13) three clients or client family members representing different populations
receiving services from state-operated services, who are appointed by the commissioner;
(14) one representative appointed by the chair of the state-operated services
governing board;
(15) one representative appointed by the Minnesota Disability Law Center;
(16) one representative appointed by the Consumer Survivor Network;
(17) one representative appointed by the Association of Residential Resources
in Minnesota;
(18) one representative appointed by the Minnesota Council of Child Caring
Agencies;
(19) one representative appointed by the Association of Minnesota Counties; and
(20) one representative appointed by the Minnesota Pharmacists Association.
The commissioner may appoint additional members to reflect stakeholders who
are not represented above.
    Subd. 4. Administration. The commissioner shall convene the first meeting of the
advisory task force and shall provide administrative support and staff.
    Subd. 5. Recommendations. The advisory task force must report its
recommendations to the commissioner and to the legislature no later than December
15, 2010.
    Subd. 6. Member requirement. 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.

    Sec. 5. [246.128] NOTIFICATION TO LEGISLATURE REQUIRED.
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.

    Sec. 6. [246.129] LEGISLATIVE APPROVAL REQUIRED.
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.

    Sec. 7. Minnesota Statutes 2008, section 246.18, is amended by adding a subdivision
to read:
    Subd. 8. State-operated services account. 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:
(1) intensive residential treatment services;
(2) foster care services; and
(3) psychiatric extensive recovery treatment services.

    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 7 8, "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 4 6, "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 funds appropriated for allocation treatment appropriation 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. 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
. The remainder of the money must be allocated among the counties according to the
following formula, using state demographer data and other data sources determined by
the commissioner:
    (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.
    (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.
    (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.
    (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.
    (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.
    (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.
    (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.
    (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.
    (i) $15,000 shall be allocated to each county.
    (j) The remaining funds shall be allocated proportional to the county adjusted
population in the special revenue account must be used according to the requirements
in this chapter.

    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
the lesser of: (1) 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 allocation 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 chapter.

    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
15 16.14 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. Fifteen 16.14 percent
of any state collections from private or third-party pay, less 15 percent of for the cost
of payment and collections, must be distributed to the county that paid for a portion of
the treatment under this section. 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.

    Sec. 12. Minnesota Statutes 2008, section 254B.03, is amended by adding a
subdivision to read:
    Subd. 4a. Division of costs for medical assistance services. 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.

    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 with a county's allocation under section 254B.02 by
funding under this chapter 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 the reserve fund under section 254B.02, subdivision 3
a special revenue account. The commissioner shall retain 85 allocate 83.86 percent of
patient payments and third-party payments to the special revenue account and allocate
the collections to the treatment allocation for the county that is financially responsible
for the person. Fifteen 16.14 percent of patient and third-party payments must be paid
to the county financially responsible for the patient. 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.

    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 to American Indians 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. [254B.13] PILOT PROJECTS; CHEMICAL HEALTH CARE.
    Subdivision 1. Authorization for pilot projects. 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.
    Subd. 2. Program design and implementation. (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.
(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.
    Subd. 3. Program evaluation. 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.
    Subd. 4. Notice of project discontinuation. 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.
    Subd. 5. Duties of commissioner. (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:
(1) in addition to those authorized under section 254B.03, subdivision 2, paragraph
(a); and
(2) by vendors in addition to those authorized under section 254B.05 when not
providing chemical dependency treatment services.
(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.
(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.
(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.
(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.
(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.
    Subd. 6. Duties of county board. The county board, or other county entity that is
approved to administer a pilot project, shall:
(1) administer the pilot project in a manner consistent with the objectives described
in subdivision 2 and the planning process in subdivision 5;
(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
(3) provide the commissioner with timely and pertinent information as negotiated
in agreements governing operation of the pilot projects.

    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 $110 $115 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 $85 $90 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; and
    (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.96; and
    (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 137.32.
    (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.
In consultation with community partners, the commissioner of human services
The Chemical and Mental Health Services Transformation Advisory Task Force shall
develop recommend an array of community-based services in the metro area to transform
the current services now provided to patients at the Anoka-Metro Regional Treatment
Center. The community-based services may be provided in facilities with 16 or fewer
beds, and must provide the appropriate level of care for the patients being admitted to
the facilities 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 employees. The planning
for this transition must be completed by October 1, 2009 2010, with an initial a report
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, to the committee chairs of health and human services by November
30, 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 partners 2010. The individuals working in employed by the community-based
services facilities 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.
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.

    Sec. 20. REPORT ON HUMAN SERVICES FISCAL NOTES.
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.

    Sec. 21. PRESCRIPTION DRUG WASTE REDUCTION.
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.

    Sec. 22. VETERINARY PRACTICE AND CONTROLLED SUBSTANCE
ABUSE STUDY.
The Board of Pharmacy, in consultation with the Prescription Electronic Reporting
Advisory Committee and the Board of Veterinary Medical Practice, shall study the issue
of the diversion of controlled substances from veterinary practice and report to the chairs
and ranking minority members of the senate health and human services policy and finance
division and the house of representatives health care and human services policy and
finance division by December 15, 2011, on recommendations to include veterinarians in
the prescription electronic reporting system in Minnesota Statutes, section 152.126.

    Sec. 23. DATA COLLECTION ON HEALTH DISPARITIES.
    Subdivision 1. Inventory. The commissioners of health and human services shall
conduct an inventory on the health-related data collected by each respective department
including, but not limited to, health care programs and activities, vital statistics, disease
surveillance registries and screenings, and health outcome measurements.
The inventory must review the categories of data that are collected, describe the
methods of collecting, organizing, and reporting data relating to race, ethnicity, country of
origin, primary language, tribal enrollment status, and socioeconomic status, and specify
whether the data being collected in these categories is currently required.
    Subd. 2. Review. (a) Upon completion of the inventory in subdivision 1, the
commissioners of health and human services shall consult with representatives of culturally
based community groups, community health boards, tribal governments, hospitals, and
health plan companies to review the compiled inventory and make recommendations on:
(1) whether the data currently being collected is sufficient to identify and describe
health disparities for particular communities or if the collection of additional types and
categories of data is necessary in order to better identify health disparities and to facilitate
efforts to reduce these disparities;
(2) if additional types and categories of data collection is determined necessary, what
additional types and categories should be collected and in what areas;
(3) whether there is a need to aggregate data to make data in the categories identified
in subdivision 1 more accessible to community groups, researchers, and to the legislature;
and
(4) other ways to improve data collection efforts in order to ensure the collection
of high-quality, reliable data in clauses (1) to (3) that will ensure accurate research and
the ability to create measurable program outcomes in order to facilitate public policy
decisions regarding the elimination of health disparities.
(b) In making recommendations, the work group shall consider national and state
standardized data classification systems, as well as federal or state requirements for
collection of certain data based on predetermined classification systems that may impact
some data collection efforts.
    Subd. 3. Report. By January 15, 2011, the commissioners of health and human
services shall submit to the chairs and ranking minority members of the legislative
committees and divisions with jurisdiction over health and human services the inventory
compiled in subdivision 1 and the recommendations developed in subdivision 2.

    Sec. 24. REPEALER.
(a) Minnesota Statutes 2008, sections 254B.02, subdivisions 2, 3, and 4; and
254B.09, subdivisions 4, 5, and 7, are repealed.
(b) Laws 2009, chapter 79, article 7, section 26, subdivision 3, is repealed.

    Sec. 25. EFFECTIVE DATE.
Sections 8 to 11, 13 to 15, and 24, paragraph (a) are effective for claims paid on or
after July 1, 2010.

ARTICLE 20
DEPARTMENT OF HEALTH

    Section 1. Minnesota Statutes 2008, section 13.3806, subdivision 13, is amended to
read:
    Subd. 13. Traumatic injury. Data on individuals with a brain or spinal injury or
who sustain major trauma that are collected by the commissioner of health are classified
under section sections 144.6071 and 144.665.

    Sec. 2. Minnesota Statutes 2008, section 62D.08, is amended by adding a subdivision
to read:
    Subd. 7. Consistent administrative expenses and investment income reporting.
(a) Every health maintenance organization must directly allocate administrative expenses
to specific lines of business or products when such information is available. Remaining
expenses that cannot be directly allocated must be allocated based on other methods, as
recommended by the Advisory Group on Administrative Expenses. Health maintenance
organizations must submit this information, including administrative expenses for dental
services, using the reporting template provided by the commissioner of health.
(b) Every health maintenance organization must allocate investment income based
on cumulative net income over time by business line or product and must submit this
information, including investment income for dental services, using the reporting template
provided by the commissioner of health.
EFFECTIVE DATE.This section is effective January 1, 2013.

    Sec. 3. ADVISORY GROUP ON ADMINISTRATIVE EXPENSES.
    Subdivision 1. Establishment. The Advisory Group on Administrative Expenses
is established to make recommendations on the development of consistent guidelines
and reporting requirements, including development of a reporting template, for health
maintenance organizations and county-based purchasing plans that participate in publicly
funded programs.
    Subd. 2. Membership. The membership of the advisory group shall be comprised
of the following, who serve at the pleasure of their appointing authority:
(1) the commissioner of health or the commissioner's designee;
(2) the commissioner of human services or the commissioner's designee;
(3) the commissioner of commerce or the commissioner's designee; and
(4) representatives of health maintenance organizations and county-based purchasers
appointed by the commissioner of health.
    Subd. 3. Administration. The commissioner of health shall convene the first
meeting of the advisory group by December 1, 2010, and shall provide administrative
support and staff. The commissioner of health may contract with a consultant to provide
professional assistance and expertise to the advisory group.
    Subd. 4. Recommendations. The Advisory Group on Administrative Expenses
must report its recommendations, including any proposed legislation necessary to
implement the recommendations, to the commissioner of health and to the chairs and
ranking minority members of the legislative committees and divisions with jurisdiction
over health policy and finance by February 15, 2012.
    Subd. 5. Expiration. This section expires after submission of the report required
under subdivision 4 or June 30, 2012, whichever is sooner.

    Sec. 4. Minnesota Statutes 2008, section 62Q.19, subdivision 1, is amended to read:
    Subdivision 1. Designation. (a) The commissioner shall designate essential
community providers. The criteria for essential community provider designation shall be
the following:
(1) a demonstrated ability to integrate applicable supportive and stabilizing services
with medical care for uninsured persons and high-risk and special needs populations,
underserved, and other special needs populations; and
(2) a commitment to serve low-income and underserved populations by meeting the
following requirements:
(i) has nonprofit status in accordance with chapter 317A;
(ii) has tax exempt status in accordance with the Internal Revenue Service Code,
section 501(c)(3);
(iii) charges for services on a sliding fee schedule based on current poverty income
guidelines; and
(iv) does not restrict access or services because of a client's financial limitation;
(3) status as a local government unit as defined in section 62D.02, subdivision 11, a
hospital district created or reorganized under sections 447.31 to 447.37, an Indian tribal
government, an Indian health service unit, or a community health board as defined in
chapter 145A;
(4) a former state hospital that specializes in the treatment of cerebral palsy, spina
bifida, epilepsy, closed head injuries, specialized orthopedic problems, and other disabling
conditions; or
(5) a sole community hospital. For these rural hospitals, the essential community
provider designation applies to all health services provided, including both inpatient and
outpatient services. For purposes of this section, "sole community hospital" means a
rural hospital that:
(i) is eligible to be classified as a sole community hospital according to Code
of Federal Regulations, title 42, section 412.92, or is located in a community with a
population of less than 5,000 and located more than 25 miles from a like hospital currently
providing acute short-term services;
(ii) has experienced net operating income losses in two of the previous three
most recent consecutive hospital fiscal years for which audited financial information is
available; and
(iii) consists of 40 or fewer licensed beds; or
(6) a birth center licensed under section 144.615.
(b) Prior to designation, the commissioner shall publish the names of all applicants
in the State Register. The public shall have 30 days from the date of publication to submit
written comments to the commissioner on the application. No designation shall be made
by the commissioner until the 30-day period has expired.
(c) The commissioner may designate an eligible provider as an essential community
provider for all the services offered by that provider or for specific services designated by
the commissioner.
(d) For the purpose of this subdivision, supportive and stabilizing services include at
a minimum, transportation, child care, cultural, and linguistic services where appropriate.

    Sec. 5. Minnesota Statutes 2008, section 144.05, is amended by adding a subdivision
to read:
    Subd. 5. Firearms data. Notwithstanding any law to the contrary, the commissioner
of health is prohibited from collecting data on individuals regarding lawful firearm
ownership in the state or data related to an individual's right to carry a weapon under
section 624.714.

    Sec. 6. Minnesota Statutes 2008, section 144.226, subdivision 3, is amended to read:
    Subd. 3. Birth record surcharge. (a) In addition to any fee prescribed under
subdivision 1, there shall be a nonrefundable surcharge of $3 for each certified birth or
stillbirth record and for a certification that the vital record cannot be found. The local or
state registrar shall forward this amount to the commissioner of management and budget
for deposit into the account for the children's trust fund for the prevention of child abuse
established under section 256E.22. This surcharge shall not be charged under those
circumstances in which no fee for a certified birth or stillbirth record is permitted under
subdivision 1, paragraph (a). Upon certification by the commissioner of management and
budget that the assets in that fund exceed $20,000,000, this surcharge shall be discontinued.
(b) In addition to any fee prescribed under subdivision 1, there shall be a
nonrefundable surcharge of $10 for each certified birth record. The local or state registrar
shall forward this amount to the commissioner of management and budget for deposit in
the general fund. This surcharge shall not be charged under those circumstances in which
no fee for a certified birth record is permitted under subdivision 1, paragraph (a).
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 7. Minnesota Statutes 2008, section 144.293, subdivision 4, is amended to read:
    Subd. 4. Duration of consent. Except as provided in this section, a consent is
valid for one year or for a lesser period specified in the consent or for a different period
provided by law.

    Sec. 8. Minnesota Statutes 2008, section 144.603, is amended to read:
144.603 STATEWIDE TRAUMA SYSTEM CRITERIA.
    Subdivision 1. Criteria established. The commissioner shall adopt criteria to
ensure that severely injured people are promptly transported and treated at trauma
hospitals appropriate to the severity of injury. Minimum criteria shall address emergency
medical service trauma triage and transportation guidelines as approved under section
144E.101, subdivision 14, designation of hospitals as trauma hospitals, interhospital
transfers, a trauma registry, and a trauma system governance structure.
    Subd. 2. Basis; verification. The commissioner shall base the establishment,
implementation, and modifications to the criteria under subdivision 1 on the
department-published Minnesota comprehensive statewide trauma system plan. The
commissioner shall seek the advice of the Trauma Advisory Council in implementing
and updating the criteria, using accepted and prevailing trauma transport, treatment,
and referral standards of the American College of Surgeons, the American College of
Emergency Physicians, the Minnesota Emergency Medical Services Regulatory Board,
the national Trauma Resources Network Center Association of America, and other widely
recognized trauma experts. The commissioner shall adapt and modify the standards as
appropriate to accommodate Minnesota's unique geography and the state's hospital and
health professional distribution and shall verify that the criteria are met by each hospital
voluntarily participating in the statewide trauma system.
    Subd. 3. Rule exemption and report to legislature. In developing and adopting
the criteria under this section, the commissioner of health is exempt from chapter 14,
including section 14.386. By September 1, 2009, the commissioner must report to the
legislature on implementation of the voluntary trauma system, including recommendations
on the need for including the trauma system criteria in rule.

    Sec. 9. Minnesota Statutes 2008, section 144.605, subdivision 2, is amended to read:
    Subd. 2. Designation; reverification. The commissioner shall designate four six
levels of trauma hospitals. A hospital that voluntarily meets the criteria for a particular
level of trauma hospital shall apply to the commissioner for designation and, upon the
commissioner's verifying the hospital meets the criteria, be designated a trauma hospital
at the appropriate level for a three-year period. Prior to the expiration of the three-year
designation, a hospital seeking to remain part of the voluntary system must apply for
and successfully complete a reverification process, be awaiting the site visit for the
reverification, or be awaiting the results of the site visit. The commissioner may extend a
hospital's existing designation for up to 18 months on a provisional basis if the hospital has
applied for reverification in a timely manner but has not yet completed the reverification
process within the expiration of the three-year designation and the extension is in the
best interest of trauma system patient safety. To be granted a provisional extension, the
hospital must be:
(1) scheduled and awaiting the site visit for reverification;
(2) awaiting the results of the site visit; or
(3) responding to and correcting identified deficiencies identified in the site visit.

    Sec. 10. Minnesota Statutes 2008, section 144.605, subdivision 3, is amended to read:
    Subd. 3. ACS verification. The commissioner shall grant the appropriate level I, II,
or III trauma hospital or level I or II pediatric trauma hospital designation to a hospital that
successfully completes and passes the American College of Surgeons (ACS) verification
standards at the hospital's cost, submits verification documentation to the Trauma Advisory
Council, and formally notifies the Trauma Advisory Council of ACS verification.

    Sec. 11. Minnesota Statutes 2008, section 144.605, is amended by adding a subdivision
to read:
    Subd. 9. Designation process protection. Data on patients in information and
reports related to the designation and redesignation of trauma hospitals pursuant to
subdivisions 3 to 5 are private data on individuals, as defined in section 13.02, subdivision
12.

    Sec. 12. [144.6071] TRAUMA REGISTRY.
    Subdivision 1. Registry. The commissioner of health shall establish and maintain
a central registry of persons who sustain major trauma as defined in section 144.602,
subdivision 3. The registry shall collect information to facilitate the development of
clinical and system quality improvement, injury prevention, treatment, and rehabilitation
programs.
    Subd. 2. Registry participation required. A trauma hospital must participate in
the statewide trauma registry. The consent of the injured person is not required.
    Subd. 3. Registry information. Trauma hospitals must electronically submit the
following information to the registry:
(1) demographic information of the injured person;
(2) information about the date, location, and cause of the injury;
(3) information about the condition of the injured person;
(4) information about the treatment, comorbidities, and diagnosis of the injured
person;
(5) information about the outcome and disposition of the injured person; and
(6) other trauma-related information required by the commissioner, if necessary to
facilitate the development of clinical and system quality improvement, treatment, and
rehabilitation programs.
    Subd. 4. Rules. The commissioner may adopt rules to collect other information
required to facilitate the development of clinical and system quality improvement, injury
prevention, treatment, and rehabilitation programs. The commissioner may adopt rules at
any time to implement this section and is not subject to the requirements of section 14.125.
    Subd. 5. Reporting without liability. Any person or facility furnishing information
required in this section shall not be subject to any action for damages or other relief,
provided that the person or facility is acting in good faith.
    Subd. 6. Data classification. Data on individuals collected by the commissioner
of health under this section are private data on individuals, as defined in section 13.02,
subdivision 12. Data not on individuals are nonpublic data as defined in section 13.02,
subdivision 9. The commissioner shall provide summary registry data to public and
private entities to conduct studies using data collected by the registry. The commissioner
may charge a fee under section 13.03, subdivision 3, for all out-of-pocket expenses
associated with the provision of data or data analysis.
    Subd. 7. Report requirements. The commissioner shall use the registry to annually
publish a report that includes comparative demographic and risk-adjusted epidemiological
data on designated trauma hospitals. Any analyses or reports that identify providers
may only be published after the provider has been provided the opportunity by the
commissioner to review the underlying data and submit comments. The provider shall
have 21 days to review the data for accuracy.

    Sec. 13. Minnesota Statutes 2008, section 144.608, subdivision 1, is amended to read:
    Subdivision 1. Trauma Advisory Council established. (a) A Trauma Advisory
Council is established to advise, consult with, and make recommendations to the
commissioner on the development, maintenance, and improvement of a statewide trauma
system.
(b) The council shall consist of the following members:
(1) a trauma surgeon certified by the American College of Surgeons Board of
Surgery or the American Osteopathic Board of Surgery who practices in a level I or
II trauma hospital;
(2) a general surgeon certified by the American College of Surgeons Board
of Surgery or the American Osteopathic Board of Surgery whose practice includes
trauma and who practices in a designated rural area as defined under section 144.1501,
subdivision 1
, paragraph (b);
(3) a neurosurgeon certified by the American Board of Neurological Surgery who
practices in a level I or II trauma hospital;
(4) a trauma program nurse manager or coordinator practicing in a level I or II
trauma hospital;
(5) an emergency physician certified by the American College Board of Emergency
Physicians Medicine or the American Osteopathic Board of Emergency Medicine whose
practice includes emergency room care in a level I, II, III, or IV trauma hospital;
(6) an emergency room nurse manager a trauma program manager or coordinator
who practices in a level III or IV trauma hospital;
(7) a family practice physician certified by the American Board of Family Medicine
or the American Osteopathic Board of Family Practice whose practice includes emergency
room department care in a level III or IV trauma hospital located in a designated rural area
as defined under section 144.1501, subdivision 1, paragraph (b);
(8) a nurse practitioner, as defined under section 144.1501, subdivision 1, paragraph
(h), or a physician assistant, as defined under section 144.1501, subdivision 1, paragraph
(j), whose practice includes emergency room care in a level IV trauma hospital located in
a designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
(9) a pediatrician certified by the American Academy Board of Pediatrics or the
American Osteopathic Board of Pediatrics whose practice includes emergency room
department care in a level I, II, III, or IV trauma hospital;
(10) an orthopedic surgeon certified by the American Board of Orthopaedic Surgery
or the American Osteopathic Board of Orthopedic Surgery whose practice includes trauma
and who practices in a level I, II, or III trauma hospital;
(11) the state emergency medical services medical director appointed by the
Emergency Medical Services Regulatory Board;
(12) a hospital administrator of a level III or IV trauma hospital located in a
designated rural area as defined under section 144.1501, subdivision 1, paragraph (b);
(13) a rehabilitation specialist whose practice includes rehabilitation of patients
with major trauma injuries or traumatic brain injuries and spinal cord injuries as defined
under section 144.661;
(14) an attendant or ambulance director who is an EMT, EMT-I, or EMT-P within
the meaning of section 144E.001 and who actively practices with a licensed ambulance
service in a primary service area located in a designated rural area as defined under section
144.1501, subdivision 1, paragraph (b); and
(15) the commissioner of public safety or the commissioner's designee.
(c) Council members whose appointment is dependent on practice in a level III or IV
trauma hospital may be appointed to an initial term based upon their statements that the
hospital intends to become a level III or IV facility by July 1, 2009.

    Sec. 14. [144.615] BIRTH CENTERS.
    Subdivision 1. Definitions. (a) For purposes of this section, the following definitions
have the meanings given them.
(b) "Birth center" means a facility licensed for the primary purpose of performing
low-risk deliveries that is not a hospital or licensed as part of a hospital and where births are
planned to occur away from the mother's usual residence following a low-risk pregnancy.
(c) "CABC" means the Commission for the Accreditation of Birth Centers.
(d) "Low-risk pregnancy" means a normal, uncomplicated prenatal course as
determined by documentation of adequate prenatal care and the anticipation of a normal
uncomplicated labor and birth, as defined by reasonable and generally accepted criteria
adopted by professional groups for maternal, fetal, and neonatal health care.
    Subd. 2. License required. (a) Beginning January 1, 2011, no birth center shall be
established, operated, or maintained in the state without first obtaining a license from the
commissioner of health according to this section.
(b) A license issued under this section is not transferable or assignable and is subject
to suspension or revocation at any time for failure to comply with this section.
(c) A birth center licensed under this section shall not assert, represent, offer,
provide, or imply that the center is or may render care or services other than the services it
is permitted to render within the scope of the license or the accreditation issued.
(d) The license must be conspicuously posted in an area where patients are admitted.
    Subd. 3. Temporary license. For new birth centers planning to begin operations
after January 1, 2011, the commissioner may issue a temporary license to the birth center
that is valid for a period of six months from the date of issuance. The birth center must
submit to the commissioner an application and applicable fee for licensure as required
under subdivision 4. The application must include the information required in subdivision
4, clauses (1) to (3) and (5) to (7), and documentation that the birth center has submitted
an application for accreditation to the CABC. Upon receipt of accreditation from the
CABC, the birth center must submit to the commissioner the information required in
subdivision 4, clause (4), and the applicable fee under subdivision 8. The commissioner
shall issue a new license.
    Subd. 4. Application. An application for a license to operate a birth center and the
applicable fee under subdivision 8 must be submitted to the commissioner on a form
provided by the commissioner and must contain:
(1) the name of the applicant;
(2) the site location of the birth center;
(3) the name of the person in charge of the center;
(4) documentation that the accreditation described under subdivision 6 has been
issued, including the effective date and the expiration date of the accreditation, and the
date of the last site visit by the CABC;
(5) the number of patients the birth center is capable of serving at a given time;
(6) the names and license numbers, if applicable, of the health care professionals
on staff at the birth center; and
(7) any other information the commissioner deems necessary.
    Subd. 5. Suspension, revocation, and refusal to renew. The commissioner may
refuse to grant or renew, or may suspend or revoke, a license on any of the grounds
described under section 144.55, subdivision 6, paragraph (a), clause (2), (3), or (4), or
upon the loss of accreditation by the CABC. The applicant or licensee is entitled to notice
and a hearing as described under section 144.55, subdivision 7, and a new license may be
issued after proper inspection of the birth center has been conducted.
    Subd. 6. Standards for licensure. (a) To be eligible for licensure under this
section, a birth center must be accredited by the CABC or must obtain accreditation
within six months of the date of the application for licensure. If the birth center loses its
accreditation, the birth center must immediately notify the commissioner.
(b) The center must have procedures in place specifying criteria by which risk status
will be established and applied to each woman at admission and during labor.
(c) Upon request, the birth center shall provide the commissioner of health with any
material submitted by the birth center to the CABC as part of the accreditation process,
including the accreditation application, the self-evaluation report, the accreditation
decision letter from the CABC, and any reports from the CABC following a site visit.
    Subd. 7. Limitations of services. (a) The following limitations apply to the services
performed at a birth center:
(1) surgical procedures must be limited to those normally accomplished during an
uncomplicated birth, including episiotomy and repair;
(2) no abortions may be administered; and
(3) no general or regional anesthesia may be administered.
(b) Notwithstanding paragraph (a), local anesthesia may be administered at a birth
center if the administration of the anesthetic is performed within the scope of practice of a
health care professional.
    Subd. 8. Fees. (a) The biennial license fee for a birth center is $365.
(b) The temporary license fee is $365.
(c) Fees shall be collected and deposited according to section 144.122.
    Subd. 9. Renewal. (a) Except as provided in paragraph (b), a license issued under
this section expires two years from the date of issue.
(b) A temporary license issued under subdivision 3 expires six months from the date
of issue, and may be renewed for one additional six-month period.
(c) An application for renewal shall be submitted at least 60 days prior to expiration
of the license on forms prescribed by the commissioner of health.
    Subd. 10. Records. All health records maintained on each client by a birth center
are subject to sections 144.292 to 144.298.
    Subd. 11. Report. (a) The commissioner of health, in consultation with the
commissioner of human services and representatives of the licensed birth centers,
the American College of Obstetricians and Gynecologists, the American Academy
of Pediatrics, the Minnesota Hospital Association, and the Minnesota Ambulance
Association, shall evaluate the quality of care and outcomes for services provided in
licensed birth centers, including, but not limited to, the utilization of services provided at a
birth center, the outcomes of care provided to both mothers and newborns, and the numbers
of transfers to other health care facilities that are required and the reasons for the transfers.
The commissioner shall work with the birth centers to establish a process to gather and
analyze the data within protocols that protect the confidentiality of patient identification.
(b) The commissioner of health shall report the findings of the evaluation to the
legislature by January 15, 2014.

    Sec. 15. Minnesota Statutes 2008, section 144.651, subdivision 2, is amended to read:
    Subd. 2. Definitions. For the purposes of this section, "patient" means a person
who is admitted to an acute care inpatient facility for a continuous period longer than
24 hours, for the purpose of diagnosis or treatment bearing on the physical or mental
health of that person. For purposes of subdivisions 4 to 9, 12, 13, 15, 16, and 18 to 20,
"patient" also means a person who receives health care services at an outpatient surgical
center or at a birth center licensed under section 144.615. "Patient" also means a minor
who is admitted to a residential program as defined in section 253C.01. For purposes of
subdivisions 1, 3 to 16, 18, 20 and 30, "patient" also means any person who is receiving
mental health treatment on an outpatient basis or in a community support program or other
community-based program. "Resident" means a person who is admitted to a nonacute care
facility including extended care facilities, nursing homes, and boarding care homes for
care required because of prolonged mental or physical illness or disability, recovery from
injury or disease, or advancing age. For purposes of all subdivisions except subdivisions
28 and 29, "resident" also means a person who is admitted to a facility licensed as a board
and lodging facility under Minnesota Rules, parts 4625.0100 to 4625.2355, or a supervised
living facility under Minnesota Rules, parts 4665.0100 to 4665.9900, and which operates
a rehabilitation program licensed under Minnesota Rules, parts 9530.4100 to 9530.4450.

    Sec. 16. Minnesota Statutes 2008, section 144.9504, is amended by adding a
subdivision to read:
    Subd. 12. Blood lead level guidelines. (a) By January 1, 2011, the commissioner
must revise clinical and case management guidelines to include recommendations
for protective health actions and follow-up services when a child's blood lead level
exceeds five micrograms of lead per deciliter of blood. The revised guidelines must be
implemented to the extent possible using available resources.
(b) In revising the clinical and case management guidelines for blood lead levels
greater than five micrograms of lead per deciliter of blood under this subdivision,
the commissioner of health must consult with a statewide organization representing
physicians, the public health department of Minneapolis and other public health
departments, one representative of the residential construction industry, and a nonprofit
organization with expertise in lead abatement.

    Sec. 17. Minnesota Statutes 2008, section 144A.51, subdivision 5, is amended to read:
    Subd. 5. Health facility. "Health facility" means a facility or that part of a facility
which is required to be licensed pursuant to sections 144.50 to 144.58, 144.615, and a
facility or that part of a facility which is required to be licensed under any law of this state
which provides for the licensure of nursing homes.

    Sec. 18. Minnesota Statutes 2008, section 144E.37, is amended to read:
144E.37 COMPREHENSIVE ADVANCED LIFE SUPPORT.
The board commissioner of health shall establish a comprehensive advanced
life-support educational program to train rural medical personnel, including physicians,
physician assistants, nurses, and allied health care providers, in a team approach to
anticipate, recognize, and treat life-threatening emergencies before serious injury or
cardiac arrest occurs.
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 19. HEALTH PLAN AND COUNTY ADMINISTRATIVE COST
REDUCTION; REPORTING REQUIREMENTS.
(a) Minnesota health plans and county-based purchasing plans may complete an
inventory of existing data collection and reporting requirements for health plans and
county-based purchasing plans and submit to the commissioners of health and human
services a list of data, documentation, and reports that:
(1) are collected from the same health plan or county-based purchasing plan more
than once;
(2) are collected directly from the health plan or county-based purchasing plan but
are available to the state agencies from other sources;
(3) are not currently being used by state agencies; or
(4) collect similar information more than once in different formats, at different
times, or by more than one state agency.
(b) The report to the commissioners may also identify the percentage of health
plan and county-based purchasing plan administrative time and expense attributed to
fulfilling reporting requirements and include recommendations regarding ways to reduce
duplicative reporting requirements.
(c) Upon receipt, the commissioners shall submit the inventory and recommendations
to the chairs of the appropriate legislative committees, along with their comments
and recommendations as to whether any action should be taken by the legislature to
establish a consolidated and streamlined reporting system under which data, reports, and
documentation are collected only once and only when needed for the state agencies to
fulfill their duties under law and applicable regulations.

    Sec. 20. VENDOR ACCREDITATION SIMPLIFICATION.
The Minnesota Hospital Association must coordinate with the Minnesota
Credentialing Collaborative to make recommendations by January 1, 2012, on the
development of standard accreditation methods for vendor services provided within
hospitals and clinics. The recommendations must be consistent with requirements of
hospital credentialing organizations and applicable federal requirements.

    Sec. 21. APPLICATION PROCESS FOR HEALTH INFORMATION
EXCHANGE.
To the extent that the commissioner of health applies for additional federal funding
to support the commissioner's responsibilities of developing and maintaining state level
health information exchange under section 3013 of the HITECH Act, the commissioner of
health shall ensure that applications are made through an open process that provides health
information exchange service providers equal opportunity to receive funding.

    Sec. 22. TRANSFER.
The powers and duties of the Emergency Medical Services Regulatory Board with
respect to the comprehensive advanced life-support educational program under Minnesota
Statutes, section 144E.37, are transferred to the commissioner of health under Minnesota
Statutes, section 15.039.
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 23. REVISOR'S INSTRUCTION.
The revisor of statutes shall renumber Minnesota Statutes, section 144E.37, as
Minnesota Statutes, section 144.6062, and make all necessary changes in statutory
cross-references in Minnesota Statutes and Minnesota Rules.
EFFECTIVE DATE.This section is effective July 1, 2010.

    Sec. 24. REPEALER.
Minnesota Statutes 2008, section 144.607, is repealed.

ARTICLE 21
PUBLIC HEALTH

    Section 1. Minnesota Statutes 2008, section 62J.692, subdivision 4, is amended to read:
    Subd. 4. Distribution of funds. (a) Following the distribution described under
paragraph (b), the commissioner shall annually distribute the available medical education
funds to all qualifying applicants based on a distribution formula that reflects a summation
of two factors:
    (1) a public program volume factor, which is determined by the total volume of
public program revenue received by each training site as a percentage of all public
program revenue received by all training sites in the fund pool; and
    (2) a supplemental public program volume factor, which is determined by providing
a supplemental payment of 20 percent of each training site's grant to training sites whose
public program revenue accounted for at least 0.98 percent of the total public program
revenue received by all eligible training sites. Grants to training sites whose public
program revenue accounted for less than 0.98 percent of the total public program revenue
received by all eligible training sites shall be reduced by an amount equal to the total
value of the supplemental payment.
    Public program revenue for the distribution formula includes revenue from medical
assistance, prepaid medical assistance, general assistance medical care, and prepaid
general assistance medical care. Training sites that receive no public program revenue
are ineligible for funds available under this subdivision. For purposes of determining
training-site level grants to be distributed under paragraph (a), total statewide average
costs per trainee for medical residents is based on audited clinical training costs per trainee
in primary care clinical medical education programs for medical residents. Total statewide
average costs per trainee for dental residents is based on audited clinical training costs
per trainee in clinical medical education programs for dental students. Total statewide
average costs per trainee for pharmacy residents is based on audited clinical training costs
per trainee in clinical medical education programs for pharmacy students.
    (b) $5,350,000 of the available medical education funds shall be distributed as
follows:
    (1) $1,475,000 to the University of Minnesota Medical Center-Fairview;
    (2) $2,075,000 to the University of Minnesota School of Dentistry; and
    (3) $1,800,000 to the Academic Health Center. $150,000 of the funds distributed to
the Academic Health Center under this paragraph shall be used for a program to assist
internationally trained physicians who are legal residents and who commit to serving
underserved Minnesota communities in a health professional shortage area to successfully
compete for family medicine residency programs at the University of Minnesota.
    (c) Funds distributed shall not be used to displace current funding appropriations
from federal or state sources.
    (d) Funds shall be distributed to the sponsoring institutions indicating the amount
to be distributed to each of the sponsor's clinical medical education programs based on
the criteria in this subdivision and in accordance with the commissioner's approval letter.
Each clinical medical education program must distribute funds allocated under paragraph
(a) to the training sites as specified in the commissioner's approval letter. Sponsoring
institutions, which are accredited through an organization recognized by the Department
of Education or the Centers for Medicare and Medicaid Services, may contract directly
with training sites to provide clinical training. To ensure the quality of clinical training,
those accredited sponsoring institutions must:
    (1) develop contracts specifying the terms, expectations, and outcomes of the clinical
training conducted at sites; and
    (2) take necessary action if the contract requirements are not met. Action may
include the withholding of payments under this section or the removal of students from
the site.
    (e) Any funds not distributed in accordance with the commissioner's approval letter
must be returned to the medical education and research fund within 30 days of receiving
notice from the commissioner. The commissioner shall distribute returned funds to the
appropriate training sites in accordance with the commissioner's approval letter.
    (f) A maximum of $150,000 of the funds dedicated to the commissioner under
section 297F.10, subdivision 1, clause (2), may be used by the commissioner for
administrative expenses associated with implementing this section.

    Sec. 2. Minnesota Statutes 2009 Supplement, section 157.16, subdivision 3, is
amended to read:
    Subd. 3. Establishment fees; definitions. (a) The following fees are required
for food and beverage service establishments, youth camps, hotels, motels, lodging
establishments, public pools, and resorts licensed under this chapter. Food and beverage
service establishments must pay the highest applicable fee under paragraph (d), clause
(1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable
fee under paragraph (d), clause (6) or (7). The license fee for new operators previously
licensed under this chapter for the same calendar year is one-half of the appropriate annual
license fee, plus any penalty that may be required. The license fee for operators opening
on or after October 1 is one-half of the appropriate annual license fee, plus any penalty
that may be required.
    (b) All food and beverage service establishments, except special event food stands,
and all hotels, motels, lodging establishments, public pools, and resorts shall pay an
annual base fee of $150.
    (c) A special event food stand shall pay a flat fee of $50 annually. "Special event
food stand" means a fee category where food is prepared or served in conjunction with
celebrations, county fairs, or special events from a special event food stand as defined
in section 157.15.
    (d) In addition to the base fee in paragraph (b), each food and beverage service
establishment, other than a special event food stand, and each hotel, motel, lodging
establishment, public pool, and resort shall pay an additional annual fee for each fee
category, additional food service, or required additional inspection specified in this
paragraph:
    (1) Limited food menu selection, $60. "Limited food menu selection" means a fee
category that provides one or more of the following:
    (i) prepackaged food that receives heat treatment and is served in the package;
    (ii) frozen pizza that is heated and served;
    (iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;
    (iv) soft drinks, coffee, or nonalcoholic beverages; or
    (v) cleaning for eating, drinking, or cooking utensils, when the only food served
is prepared off site.
    (2) Small establishment, including boarding establishments, $120. "Small
establishment" means a fee category that has no salad bar and meets one or more of
the following:
    (i) possesses food service equipment that consists of no more than a deep fat fryer, a
grill, two hot holding containers, and one or more microwave ovens;
    (ii) serves dipped ice cream or soft serve frozen desserts;
    (iii) serves breakfast in an owner-occupied bed and breakfast establishment;
    (iv) is a boarding establishment; or
    (v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum
patron seating capacity of not more than 50.
    (3) Medium establishment, $310. "Medium establishment" means a fee category
that meets one or more of the following:
    (i) possesses food service equipment that includes a range, oven, steam table, salad
bar, or salad preparation area;
    (ii) possesses food service equipment that includes more than one deep fat fryer,
one grill, or two hot holding containers; or
    (iii) is an establishment where food is prepared at one location and served at one or
more separate locations.
    Establishments meeting criteria in clause (2), item (v), are not included in this fee
category.
    (4) Large establishment, $540. "Large establishment" means either:
    (i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a
medium establishment, (B) seats more than 175 people, and (C) offers the full menu
selection an average of five or more days a week during the weeks of operation; or
    (ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium
establishment, and (B) prepares and serves 500 or more meals per day.
    (5) Other food and beverage service, including food carts, mobile food units,
seasonal temporary food stands, and seasonal permanent food stands, $60.
    (6) Beer or wine table service, $60. "Beer or wine table service" means a fee
category where the only alcoholic beverage service is beer or wine, served to customers
seated at tables.
    (7) Alcoholic beverage service, other than beer or wine table service, $165.
    "Alcohol beverage service, other than beer or wine table service" means a fee
category where alcoholic mixed drinks are served or where beer or wine are served from
a bar.
    (8) Lodging per sleeping accommodation unit, $10, including hotels, motels,
lodging establishments, and resorts, up to a maximum of $1,000. "Lodging per sleeping
accommodation unit" means a fee category including the number of guest rooms, cottages,
or other rental units of a hotel, motel, lodging establishment, or resort; or the number of
beds in a dormitory.
    (9) First public pool, $325; each additional public pool, $175. "Public pool" means a
fee category that has the meaning given in section 144.1222, subdivision 4.
    (10) First spa, $175; each additional spa, $100. "Spa pool" means a fee category that
has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.
    (11) Private sewer or water, $60. "Individual private water" means a fee category
with a water supply other than a community public water supply as defined in Minnesota
Rules, chapter 4720. "Individual private sewer" means a fee category with an individual
sewage treatment system which uses subsurface treatment and disposal.
    (12) Additional food service, $150. "Additional food service" means a location at
a food service establishment, other than the primary food preparation and service area,
used to prepare or serve food to the public.
    (13) Additional inspection fee, $360. "Additional inspection fee" means a fee to
conduct the second inspection each year for elementary and secondary education facility
school lunch programs when required by the Richard B. Russell National School Lunch
Act.
    (e) A fee for review of construction plans must accompany the initial license
application for restaurants, hotels, motels, lodging establishments, resorts, seasonal food
stands, and mobile food units. The fee for this construction plan review is as follows:

Service Area
Type
Fee

Food
limited food menu
$275

small establishment
$400

medium establishment
$450

large food establishment
$500

additional food service
$150

Transient food service
food cart
$250

seasonal permanent food stand
$250

seasonal temporary food stand
$250

mobile food unit
$350

Alcohol
beer or wine table service
$150

alcohol service from bar
$250

Lodging
less than 25 rooms
$375

25 to less than 100 rooms
$400

100 rooms or more
$500

less than five cabins
$350

five to less than ten cabins
$400

ten cabins or more
$450
    (f) When existing food and beverage service establishments, hotels, motels, lodging
establishments, resorts, seasonal food stands, and mobile food units are extensively
remodeled, a fee must be submitted with the remodeling plans. The fee for this
construction plan review is as follows:

Service Area
Type
Fee

Food
limited food menu
$250

small establishment
$300

medium establishment
$350

large food establishment
$400

additional food service
$150

Transient food service
food cart
$250

seasonal permanent food stand
$250

seasonal temporary food stand
$250

mobile food unit
$250

Alcohol
beer or wine table service
$150

alcohol service from bar
$250

Lodging
less than 25 rooms
$250

25 to less than 100 rooms
$300

100 rooms or more
$450

less than five cabins
$250

five to less than ten cabins
$350

ten cabins or more
$400
    (g) Special event food stands are not required to submit construction or remodeling
plans for review.
(h) Youth camps shall pay an annual single fee for food and lodging as follows:
(1) camps with up to 99 campers, $325;
(2) camps with 100 to 199 campers, $550; and
(3) camps with 200 or more campers, $750.
(i) A youth camp which pays fees under paragraph (d) is not required to pay fees
under paragraph (h).

    Sec. 3. Minnesota Statutes 2009 Supplement, section 327.15, subdivision 3, is
amended to read:
    Subd. 3. Fees, manufactured home parks and recreational camping areas. (a)
The following fees are required for manufactured home parks and recreational camping
areas licensed under this chapter. Recreational camping areas and manufactured home
parks shall pay the highest applicable base fee under paragraph (c) (b). The license fee
for new operators of a manufactured home park or recreational camping area previously
licensed under this chapter for the same calendar year is one-half of the appropriate annual
license fee, plus any penalty that may be required. The license fee for operators opening
on or after October 1 is one-half of the appropriate annual license fee, plus any penalty
that may be required.
(b) All manufactured home parks and recreational camping areas shall pay the
following annual base fee:
(1) a manufactured home park, $150; and
(2) a recreational camping area with:
(i) 24 or less sites, $50;
(ii) 25 to 99 sites, $212; and
(iii) 100 or more sites, $300.
In addition to the base fee, manufactured home parks and recreational camping areas shall
pay $4 for each licensed site. This paragraph does not apply to special event recreational
camping areas or to. Operators of a manufactured home park or a recreational camping
area also licensed under section 157.16 for the same location shall pay only one base fee,
whichever is the highest of the base fees found in this section or section 157.16.
(c) In addition to the fee in paragraph (b), each manufactured home park or
recreational camping area shall pay an additional annual fee for each fee category
specified in this paragraph:
(1) Manufactured home parks and recreational camping areas with public swimming
pools and spas shall pay the appropriate fees specified in section 157.16.
(2) Individual private sewer or water, $60. "Individual private water" means a fee
category with a water supply other than a community public water supply as defined in
Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with a
subsurface sewage treatment system which uses subsurface treatment and disposal.
(d) The following fees must accompany a plan review application for initial
construction of a manufactured home park or recreational camping area:
(1) for initial construction of less than 25 sites, $375;
(2) for initial construction of 25 to 99 sites, $400; and
(3) for initial construction of 100 or more sites, $500.
(e) The following fees must accompany a plan review application when an existing
manufactured home park or recreational camping area is expanded:
(1) for expansion of less than 25 sites, $250;
(2) for expansion of 25 to 99 sites, $300; and
(3) for expansion of 100 or more sites, $450.

    Sec. 4. FOOD SUPPORT FOR CHILDREN WITH SEVERE ALLERGIES.
The commissioner of human services must seek a federal waiver from the federal
Department of Agriculture, Food and Nutrition Service, for the supplemental nutrition
assistance program, to increase the income eligibility requirements to 375 percent of the
federal poverty guidelines, in order to cover nutritional food products required to treat
or manage severe food allergies, including allergies to wheat and gluten, for infants and
children who have been diagnosed with life-threatening severe food allergies.

ARTICLE 22
HEALTH CARE REFORM

    Section 1. [62E.20] RELATIONSHIP TO TEMPORARY FEDERAL HIGH-RISK
POOL.
    Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in
this subdivision have the meanings given.
(b) "Association" means the Minnesota Comprehensive Health Association.
(c) "Federal law" means Title I, subtitle B, section 1101, of the federal Patient
Protection and Affordable Care Act, Public Law 111-148, including any federal
regulations adopted under it.
(d) "Federal qualified high-risk pool" means an arrangement established by the
federal secretary of health and human services that meets the requirements of the federal
law.
    Subd. 2. Timing of this section. This section applies beginning the date the
temporary federal qualified high-risk health pool created under the federal law begins
to provide coverage in this state.
    Subd. 3. Maintenance of effort. The assessments made by the comprehensive
health association on its member insurers must comply with the maintenance of effort
requirement contained in paragraph (b), clause (3), of the federal law, to the extent that the
requirement applies to assessments made by the association.
    Subd. 4. Coordination with state health care programs. The commissioner
of commerce and the Minnesota Comprehensive Health Association shall ensure that
applicants for coverage through the federal qualified high-risk pool, or through the
Minnesota Comprehensive Health Association, are referred to the medical assistance or
MinnesotaCare programs if they are determined to be potentially eligible for coverage
through those programs. The commissioner of human services shall ensure that applicants
for coverage under medical assistance or MinnesotaCare who are determined not to be
eligible for those programs are provided information about coverage through the federal
qualified high-risk pool and the Minnesota Comprehensive Health Association.
    Subd. 5. Federal funding. Minnesota shall coordinate its efforts with the United
States Department of Health and Human Services (HHS) to obtain the federal funds to
implement in Minnesota the federal qualified high-risk pool.

    Sec. 2. [256B.0757] COORDINATED CARE THROUGH A HEALTH HOME.
    Subdivision 1. Provision of coverage. (a) The commissioner shall provide
medical assistance coverage of health home services for eligible individuals with chronic
conditions who select a designated provider, a team of health care professionals, or a
health team as the individual's health home.
(b) The commissioner shall implement this section in compliance with the
requirements of the state option to provide health homes for enrollees with chronic
conditions, as provided under the Patient Protection and Affordable Care Act, Public
Law 111-148, sections 2703 and 3502. Terms used in this section have the meaning
provided in that act.
    Subd. 2. Eligible individual. An individual is eligible for health home services
under this section if the individual is eligible for medical assistance under this chapter
and has at least:
(1) two chronic conditions;
(2) one chronic condition and is at risk of having a second chronic condition; or
(3) one serious and persistent mental health condition.
    Subd. 3. Health home services. (a) Health home services means comprehensive and
timely high-quality services that are provided by a health home. These services include:
(1) comprehensive care management;
(2) care coordination and health promotion;
(3) comprehensive transitional care, including appropriate follow-up, from inpatient
to other settings;
(4) patient and family support, including authorized representatives;
(5) referral to community and social support services, if relevant; and
(6) use of health information technology to link services, as feasible and appropriate.
(b) The commissioner shall maximize the number and type of services
included in this subdivision to the extent permissible under federal law, including
physician, outpatient, mental health treatment, and rehabilitation services necessary for
comprehensive transitional care following hospitalization.
    Subd. 4. Health teams. The commissioner shall establish health teams to support
the patient-centered health home and provide the services described in subdivision 3 to
individuals eligible under subdivision 2. The commissioner shall apply for grants or
contracts as provided under section 3502 of the Patient Protection and Affordable Care
Act to establish health teams and provide capitated payments to primary care providers.
For purposes of this section, "health teams" means community-based, interdisciplinary,
inter-professional teams of health care providers that support primary care practices.
These providers may include medical specialists, nurses, advanced practice registered
nurses, pharmacists, nutritionists, social workers, behavioral and mental health providers,
doctors of chiropractic, licensed complementary and alternative medicine practitioners,
and physician assistants.
    Subd. 5. Payments. The commissioner shall make payments to each health home
and each health team for the provision of health home services to each eligible individual
with chronic conditions that selects the health home as a provider.
    Subd. 6. Coordination. The commissioner, to the extent feasible, shall ensure that
the requirements and payment methods for health homes and health teams developed
under this section are consistent with the requirements and payment methods for health
care homes established under sections 256B.0751 and 256B.0753. The commissioner may
modify requirements and payment methods under sections 256B.0751 and 256B.0753 in
order to be consistent with federal health home requirements and payment methods.
    Subd. 7. State plan amendment. The commissioner shall submit a state plan
amendment to implement this section to the federal Centers for Medicare and Medicaid
Services by January 1, 2011.
EFFECTIVE DATE.This section is effective January 1, 2011, or upon federal
approval, whichever is later.

    Sec. 3. FEDERAL HEALTH CARE REFORM DEMONSTRATION PROJECTS
AND GRANTS.
(a) The commissioner of human services shall seek to participate in the following
demonstration projects, or apply for the following grants, as described in the federal
Patient Protection and Affordable Care Act, Public Law 111-148:
(1) the demonstration project to evaluate integrated care around a hospitalization,
Public Law 111-148, section 2704;
(2) the Medicaid global payment system demonstration project, Public Law 111-148,
section 2705, including a demonstration project for the specific population of childless
adults under 75 percent of federal poverty guidelines that were to be served by the general
assistance medical care program;
(3) the pediatric accountable care organization demonstration project, Public Law
111-148, section 2706;
(4) the Medicaid emergency psychiatric demonstration project, Public Law 111-148,
section 2707; and
(5) grants to provide incentives for prevention of chronic diseases in Medicaid,
Public Law 111-148, section 4108.
(b) The commissioner of human services shall report to the chairs and ranking
minority members of the house of representatives and senate committees or divisions with
jurisdiction over health care policy and finance on the status of the demonstration project
and grant applications. If the state is accepted as a demonstration project participant, or is
awarded a grant, the commissioner shall notify the chairs and ranking minority members
of those committees or divisions of any legislative changes necessary to implement the
demonstration projects or grants.
(c) The commissioner of health shall apply for federal grants available under the
federal Patient Protection and Affordable Care Act, Public Law 111-148, for purposes
of funding wellness and prevention, and health improvement programs. To the extent
possible under federal law, the commissioner of health must utilize the state health
improvement program, established under Minnesota Statutes, section 145.986, to
implement grant programs related to wellness and prevention, and health improvement,
for which the state receives funding under the federal Patient Protection and Affordable
Care Act, Public Law 111-148.

    Sec. 4. HEALTH CARE REFORM TASK FORCE.
    Subdivision 1. Task force. (a) The governor shall convene a Health Care
Reform Task Force to advise and assist the governor and the legislature regarding state
implementation of federal health care reform legislation. For purposes of this section,
"federal health care reform legislation" means the Patient Protection and Affordable Care
Act, Public Law 111-148, and the health care reform provisions in the Health Care and
Education Reconciliation Act of 2010, Public Law 111-152. The task force shall consist of:
(1) two legislators from the house of representatives appointed by the speaker and
two legislators from the senate appointed by the Subcommittee on Committees of the
Committee on Rules and Administration;
    (2) two representatives appointed by the governor to represent the governor and
state agencies;
    (3) three persons appointed by the governor who have demonstrated leadership in
health care organizations, health plan companies, or health care trade or professional
associations;
    (4) three persons appointed by the governor who have demonstrated leadership in
employer and group purchaser activities related to health system improvement of whom
two must be from a labor organization and one from the business community; and
    (5) five persons appointed by the governor who have demonstrated expertise in the
areas of health care financing, access, and quality.
    The governor is exempt from the requirements of the open appointments process
for purposes of appointing task force members. Members shall be appointed for one-year
terms and may be reappointed.
    (b) The Department of Health, Department of Human Services, and Department of
Commerce shall provide staff support to the task force. The task force may accept outside
resources to help support its efforts.
    (c) Task force members must be appointed by July 1, 2010. The task force must hold
its first meeting by July 15, 2010.
    Subd. 2. Duties. (a) By December 15, 2010, the task force shall develop and
present to the legislature and the governor a preliminary report and recommendations on
state implementation of federal health care reform legislation. The report must include
recommendations for state law and program changes necessary to comply with the federal
health care reform legislation, and also recommendations for implementing provisions of
the federal legislation that are optional for states. In developing recommendations, the task
force shall consider the extent to which an approach maximizes federal funding to the state.
(b) The task force, in consultation with the governor and the legislature, shall also
establish timelines and criteria for future reports on state implementation of the federal
health care reform legislation.

    Sec. 5. AMERICAN HEALTH BENEFIT EXCHANGE; PLANNING
PROVISIONS.
    Subdivision 1. Federal planning grants. The commissioners of commerce, health,
and human services shall jointly or separately apply to the federal secretary of health and
human services for one or more planning grants, including renewal grants, authorized
under section 1311 of the Patient Protection and Affordable Care Act, Public Law
111-148, including any future amendments of that provision, relating to state creation
of American Health Benefit Exchanges.
    Subd. 2. Consideration of early creation and operation of exchange. (a) The
commissioners referenced in subdivision 1 shall analyze the advantages and disadvantages
to the state of planning to have a state health insurance exchange, similar to an American
Health Benefit Exchange referenced in subdivision 1, begin prior to the federal deadline
of January 1, 2014.
(b) The commissioners shall provide a written report to the legislature on the results
of the analysis required under paragraph (a) no later than December 15, 2010. The written
report must comply with Minnesota Statutes, sections 3.195 and 3.197.

ARTICLE 23
HUMAN SERVICES FORECAST ADJUSTMENTS


Section 1. SUMMARY OF APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this article.

2010
2011
Total

General
$
(109,876,000)
$
(28,344,000)
$
(138,220,000)

Health Care Access
$
99,654,000
$
276,500,000
$
376,154,000

Federal TANF
$
(9,830,000)
$
15,133,000
$
5,303,000

Total
$
(20,052,000)
$
263,289,000
$
243,237,000


Sec. 2. DEPARTMENT OF HUMAN SERVICES APPROPRIATION.
    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, 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 appropriations
listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011,
respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011.
"The biennium" is fiscal years 2010 and 2011. Supplemental appropriations and reductions
for the fiscal year ending June 30, 2010, are effective the day following final enactment
unless a different effective date is explicit.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011



Sec. 3. DEPARTMENT OF HUMAN
SERVICES

Subdivision 1.Total Appropriation
$
(20,052,000)
$
263,289,000

Appropriations by Fund

2010
2011

General
(109,876,000)
(28,344,000)

Health Care Access
99,654,000
276,500,000

Federal TANF
(9,830,000)
15,133,000
The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2.Revenue and Pass-through

Appropriations by Fund

Federal TANF
390,000
(251,000)


Subd. 3.Children and Economic Assistance
Grants

Appropriations by Fund

General
4,489,000
(4,140,000)

Federal TANF
(10,220,000)
15,384,000
The amounts that may be spent from this
appropriation are as follows:

(a) MFIP Grants

General
7,916,000
(14,481,000)

Federal TANF
(10,220,000)
15,384,000

(b) MFIP Child Care Assistance Grants
(7,832,000)
2,579,000

(c) General Assistance Grants
875,000
1,339,000

(d) Minnesota Supplemental Aid Grants
2,454,000
3,843,000

(e) Group Residential Housing Grants
1,076,000
2,580,000

Subd. 4.Basic Health Care Grants

Appropriations by Fund

General
(62,770,000)
29,192,000

Health Care Access
99,654,000
276,500,000
The amounts that may be spent from the
appropriation for each purpose are as follows:

(a) MinnesotaCare Grants

Health Care Access
99,654,000
276,500,000


(b) Medical Assistance Basic Health Care -
Families and Children
1,165,000
24,146,000


(c) Medical Assistance Basic Health Care -
Elderly and Disabled
(63,935,000)
5,046,000

Subd. 5.Continuing Care Grants
(51,595,000)
(53,396,000)
The amounts that may be spent from the
appropriation for each purpose are as follows:


(a) Medical Assistance Long-Term Care
Facilities
(3,774,000)
(8,275,000)


(b) Medical Assistance Long-Term Care
Waivers
(27,710,000)
(22,452,000)

(c) Chemical Dependency Entitlement Grants
(20,111,000)
(22,669,000)

    Sec. 4. EFFECTIVE DATE.
This article is effective the day following final enactment.

ARTICLE 24
HUMAN SERVICES CONTINGENT APPROPRIATIONS


Section 1. SUMMARY OF HUMAN SERVICES APPROPRIATIONS.
The amounts shown in this section summarize direct appropriations, by fund, made
in this bill.

2010
2011
Total

General
$
-0-
$
13,383,000
$
13,383,000

Health Care Access
-0-
686,000
686,000

Total
$
-0-
$
14,069,000
$
14,069,000


Sec. 2. HEALTH AND HUMAN SERVICES CONTINGENT APPROPRIATIONS.
The sums shown in the columns marked "Appropriations" are added to the
appropriations in Laws 2009, chapter 79, article 13, as amended by Laws 2009, chapter
173, article 2, to the agency and for the purposes specified in this bill. 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 bill 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.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011



Sec. 3. COMMISSIONER OF HUMAN
SERVICES

Subdivision 1.Total Appropriation
$
-0-
$
14,069,000

Appropriations by Fund

2010
2011

General
-0-
13,383,000

Health Care Access
-0-
686,000
The appropriations for each purpose are
shown in the following subdivisions.

Subd. 2.Basic Health Care Grants

(a) MinnesotaCare Grants
-0-
686,000
This appropriation is from the health care
access fund.


(b) Medical Assistance Basic Health Care
Grants - Families and Children
-0-
6,297,000


(c) Medical Assistance Basic Health Care
Grants - Elderly and Disabled
-0-
3,697,000

Subd. 3.Continuing Care Grants


(a) Medical Assistance - Long-Term Care
Facilities Grants
-0-
2,486,000


(b) Medical Assistance Grants - Long-Term
Care Waivers and Home Care Grants
-0-
547,000

(c) Chemical Dependency Entitlement Grants
-0-
356,000
EFFECTIVE DATE.This section is effective upon enactment of an extension of
the enhanced federal medical assistance percentage (FMAP) under Public Law 111-5,
section 5001, to at least June 30, 2011.

    Sec. 4. Minnesota Statutes 2008, section 256B.0625, subdivision 22, is amended to
read:
    Subd. 22. Hospice care. Medical assistance covers hospice care services under
Public Law 99-272, section 9505, to the extent authorized by rule, except that a recipient
age 21 or under who elects to receive hospice services does not waive coverage for
services that are related to the treatment of the condition for which a diagnosis of terminal
illness has been made.
EFFECTIVE DATE.This section is effective retroactive from March 23, 2010.

    Sec. 5. Minnesota Statutes 2009 Supplement, section 256B.0911, subdivision 1a,
is amended to read:
    Subd. 1a. Definitions. For purposes of this section, the following definitions apply:
(a) "Long-term care consultation services" means:
(1) assistance in identifying services needed to maintain an individual in the most
inclusive environment;
(2) providing recommendations on cost-effective community services that are
available to the individual;
(3) development of an individual's person-centered community support plan;
(4) providing information regarding eligibility for Minnesota health care programs;
(5) face-to-face long-term care consultation assessments, which may be completed
in a hospital, nursing facility, intermediate care facility for persons with developmental
disabilities (ICF/DDs), regional treatment centers, or the person's current or planned
residence;
(6) federally mandated screening to determine the need for a institutional level of
care under section 256B.0911, subdivision 4, paragraph (a) subdivision 4a;
(7) determination of home and community-based waiver service eligibility including
level of care determination for individuals who need an institutional level of care as
defined under section 144.0724, subdivision 11, or 256B.092, service eligibility including
state plan home care services identified in section 256B.0625, subdivisions 6, 7, and
19, paragraphs (a) and (c), based on assessment and support plan development with
appropriate referrals;
(8) providing recommendations for nursing facility placement when there are no
cost-effective community services available; and
(9) assistance to transition people back to community settings after facility
admission.
(b) "Long-term care options counseling" means the services provided by the linkage
lines as mandated by sections 256.01 and 256.975, subdivision 7, and also includes
telephone assistance and follow up once a long-term care consultation assessment has
been completed.
(c) "Minnesota health care programs" means the medical assistance program under
chapter 256B and the alternative care program under section 256B.0913.
(d) "Lead agencies" means counties or a collaboration of counties, tribes, and health
plans administering long-term care consultation assessment and support planning services.

    Sec. 6. Minnesota Statutes 2008, section 256B.19, subdivision 1c, is amended to read:
    Subd. 1c. Additional portion of nonfederal share. (a) Hennepin County shall
be responsible for a monthly transfer payment of $1,500,000, due before noon on the
15th of each month and the University of Minnesota shall be responsible for a monthly
transfer payment of $500,000 due before noon on the 15th of each month, beginning July
15, 1995. These sums shall be part of the designated governmental unit's portion of the
nonfederal share of medical assistance costs.
(b) Beginning July 1, 2001, Hennepin County's payment under paragraph (a) shall
be $2,066,000 each month.
(c) Beginning July 1, 2001, the commissioner shall increase annual capitation
payments to the metropolitan health plan under section 256B.69 for the prepaid medical
assistance program by approximately $3,400,000, plus any available federal matching
funds, $6,800,000 to recognize higher than average medical education costs.
(d) Effective August 1, 2005, Hennepin County's payment under paragraphs (a)
and (b) shall be reduced to $566,000, and the University of Minnesota's payment under
paragraph (a) shall be reduced to zero. Effective October 1, 2008, to December 31, 2010,
Hennepin County's payment under paragraphs (a) and (b) shall be $434,688. Effective
January 1, 2011, Hennepin County's payment under paragraphs (a) and (b) shall be
$566,000.
(e) Notwithstanding paragraph (d), upon federal enactment of an extension to June
30, 2011, of the enhanced federal medical assistance percentage (FMAP) originally
provided under Public Law 111-5, for the six-month period from January 1, 2011, to June
30, 2011, Hennepin County's payment under paragraphs (a) and (b) shall be $434,688.

    Sec. 7. Minnesota Statutes 2008, section 256L.15, subdivision 1, is amended to read:
    Subdivision 1. Premium determination. (a) Families with children and individuals
shall pay a premium determined according to subdivision 2.
    (b) Pregnant women and children under age two are exempt from the provisions
of section 256L.06, subdivision 3, paragraph (b), clause (3), requiring disenrollment
for failure to pay premiums. For pregnant women, this exemption continues until the
first day of the month following the 60th day postpartum. Women who remain enrolled
during pregnancy or the postpartum period, despite nonpayment of premiums, shall be
disenrolled on the first of the month following the 60th day postpartum for the penalty
period that otherwise applies under section 256L.06, unless they begin paying premiums.
    (c) Members of the military and their families who meet the eligibility criteria
for MinnesotaCare upon eligibility approval made within 24 months following the end
of the member's tour of active duty shall have their premiums paid by the commissioner.
The effective date of coverage for an individual or family who meets the criteria of this
paragraph shall be the first day of the month following the month in which eligibility is
approved. This exemption applies for 12 months. This paragraph expires June 30, 2010.
If the expiration of this provision is in violation of section 5001 of Public Law 111-5, this
provision will expire on the date when it is no longer subject to section 5001 of Public Law
111-5. The commissioner of human services shall notify the revisor of statutes of that date.

    Sec. 8. Laws 2005, First Special Session chapter 4, article 8, section 66, as amended by
Laws 2009, chapter 173, article 3, section 24, the effective date, is amended to read:
EFFECTIVE DATE.Paragraph (a) is effective August 1, 2009, and upon federal
approval and on the date when it is no longer subject to the maintenance of effort
requirements of section 5001 of Public Law 111-5. The commissioner of human services
shall notify the revisor of statutes of that date. Paragraph (e) is effective September 1,
2006.

    Sec. 9. Laws 2009, chapter 79, article 5, section 17, the effective date, is amended to
read:
EFFECTIVE DATE.This section is effective January 1, 2011, or upon federal
approval, whichever is later and on the date when it is no longer subject to the maintenance
of effort requirements of section 5001 of Public Law 111-5. The commissioner of human
services shall notify the revisor of statutes of that date.

    Sec. 10. Laws 2009, chapter 79, article 5, section 18, the effective date, is amended to
read:
EFFECTIVE DATE.This section is effective January 1, 2011 upon federal
approval and on the date when it is no longer subject to the maintenance of effort
requirements of section 5001 of Public Law 111-5. The commissioner of human services
shall notify the revisor of statutes when federal approval is obtained.

    Sec. 11. Laws 2009, chapter 79, article 5, section 22, the effective date, is amended to
read:
EFFECTIVE DATE.This section is effective for periods of ineligibility established
on or after January 1, 2011, unless it is in violation of section 5001 of Public Law 111-5.
If it is in violation of that section, then it shall be effective on the date when it is no longer
subject to maintenance of effort requirements of section 5001 of Public Law 111-5. The
commissioner of human services shall notify the revisor of statutes of that date.

    Sec. 12. Laws 2009, chapter 79, article 8, section 4, the effective date, is amended to
read:
EFFECTIVE DATE.The section is effective January July 1, 2011.

    Sec. 13. Laws 2009, chapter 173, article 1, section 17, the effective date, is amended to
read:
EFFECTIVE DATE.This section is effective for pooled trust accounts established
on or after January 1, 2011, unless it is in violation of section 5001 of Public Law 111-5.
If it is in violation of that section, then it shall be effective on the date when it is no longer
subject to maintenance of effort requirements of section 5001 of Public Law 111-5. The
commissioner of human services shall notify the revisor of statutes of that date.

ARTICLE 25
HEALTH AND HUMAN SERVICES APPROPRIATIONS


Section 1. SUMMARY OF APPROPRIATIONS.
    The amounts shown in this section summarize direct appropriations by fund made
in this article.

2010
2011
Total

General
$
(6,784,000)
$
164,339,000
$
157,555,000


State Government Special
Revenue
113,000
624,000
737,000

Health Care Access
998,000
(19,921,000)
(18,923,000)

Federal TANF
8,000,000
20,000,000
28,000,000

Special Revenue
-0-
93,000
93,000

Total
$
2,327,000
$
165,135,000
$
167,462,000


Sec. 2. HEALTH AND HUMAN SERVICES APPROPRIATIONS.
    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, 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 appropriations
listed under them is available for the fiscal year ending June 30, 2010, or June 30, 2011,
respectively. "The first year" is fiscal year 2010. "The second year" is fiscal year 2011.
"The biennium" is fiscal years 2010 and 2011. Supplemental appropriations and reductions
for the fiscal year ending June 30, 2010, are effective the day following final enactment
unless a different effective date is explicit.

APPROPRIATIONS

Available for the Year

Ending June 30

2010
2011



Sec. 3. COMMISSIONER OF HUMAN
SERVICES

Subdivision 1.Total Appropriation
$
4,409,000
$
163,461,000

Appropriations by Fund

2010
2011

General
(4,589,000)
163,619,000

Health Care Access
998,000
(20,158,000)

Federal TANF
8,000,000
20,000,000
The appropriation modifications for
each purpose are shown in the following
subdivisions.
TANF Financing and Maintenance of
Effort. The commissioner, with the approval
of the commissioner of management and
budget, and after notification of the chairs
of the relevant senate budget division and
house of representatives finance division,
may adjust the amount of TANF transfers
between the MFIP transition year child care
assistance program and MFIP grant programs
within the fiscal year and within the current
biennium and the biennium ending June 30,
2013, to ensure that state and federal match
and maintenance of effort requirements are
met. These transfers and amounts shall be
reported to the chairs of the senate and house
of representatives Finance Committees, the
senate Health and Human Services Budget
Division, and the house of representatives
Health Care and Human Services Finance
Division and Early Childhood Finance and
Policy Division by December 1 of each
fiscal year. Notwithstanding any contrary
provision in this article, this paragraph
expires June 30, 2013.
SNAP Enhanced Administrative Funding.
The funds available for administration
of the Supplemental Nutrition Assistance
Program under the Department of Defense
Appropriations Act of 2010, Public
Law 111-118, are appropriated to the
commissioner to pay the actual costs
of providing for increased eligibility
determinations, caseload-related costs,
timely application processing, and quality
control. Of these funds, 20 percent shall
be allocated to the commissioner and 80
percent shall be allocated to counties.
The commissioner shall allocate the
county portion based on recent caseload.
Reimbursement shall be based on actual
costs reported by counties through existing
processes. Tribal reimbursement must be
made from the state portion, based on a
caseload factor equivalent to that of a county.
TANF Transfer to Federal Child
Care and Development Fund. Of the
TANF appropriation in fiscal year 2011,
$12,500,000 is to the commissioner for
the purposes of MFIP and transition year
child care under Minnesota Statutes, section
119B.05. The commissioner shall authorize
the transfer of sufficient TANF funds to the
federal child care and development fund to
meet this appropriation and shall ensure that
all transferred funds are expended according
to federal child care and development fund
regulations.
Special Revenue Fund Transfers. (a) The
commissioner shall transfer the following
amounts from special revenue fund balances
to the general fund by June 30 of each
respective fiscal year: $613,000 in fiscal year
2010, and $493,000 in fiscal year 2011. This
provision is effective the day following final
enactment.
(b) The actual transfers made under
paragraph (a) must be separately identified
and reported as part of the quarterly reporting
of transfers to the chairs of the relevant senate
budget division and house of representatives
finance division.

Subd. 2.Agency Management

(a) Financial Operations
-0-
103,000
Base Adjustment. The general fund base is
decreased by $10,000 in fiscal year 2012 and
$10,000 in fiscal year 2013.

(b) Legal and Regulatory Operations
-0-
114,000
Base Adjustment. The general fund base is
decreased by $18,000 in fiscal year 2012 and
$18,000 in fiscal year 2013.

(c) Management Operations
-0-
(114,000)
Base Adjustment. The general fund base is
increased by $18,000 in fiscal year 2012 and
$18,000 in fiscal year 2013.

(d) Information Technology Operations
-0-
(2,500,000)
Base Adjustment. The general fund base is
decreased by $1,666,000 in fiscal year 2012
and $1,666,000 in fiscal year 2013.


Subd. 3.Revenue and Pass-Through Revenue
Expenditures
8,000,000
20,000,000
These appropriations are from the federal
TANF fund.
TANF Funding for the Working Family
Tax Credit. In addition to the amounts
specified in Minnesota Statutes, section
290.0671, subdivision 6, $15,500,000
of TANF funds in fiscal year 2010 are
appropriated to the commissioner to
reimburse the general fund for the cost of
the working family tax credit for eligible
families. With respect to the amounts
appropriated for fiscal year 2010, the
commissioner shall reimburse the general
fund by June 30, 2010. This paragraph is
effective the day following final enactment.
Child Care Development Fund
Unexpended Balance. In addition to
the amount provided in this section, the
commissioner shall carry over and expend
in fiscal year 2011 $7,500,000 of the TANF
funds transferred in fiscal year 2010 that
reflect the child care and development fund
unexpended balance for the basic sliding
fee child care assistance program under
Minnesota Statutes, section 119B.03. The
commissioner shall ensure that all funds are
expended according to the federal child care
and development fund regulations relating to
the TANF transfers.
Base Adjustment. The general fund base is
increased by $7,500,000 in fiscal year 2012
and $7,500,000 in fiscal year 2013.

Subd. 4.Economic Support Grants

(a) MFIP/DWP Grants
-0-
(1,583,000)


(b) Basic Sliding Fee Child Care Assistance
Grants
-0-
(7,500,000)

(c) Children's Services Grants
(900,000)
-0-
Adoption Assistance. Of the appropriation
reduction in fiscal year 2010, $900,000 is
from the adoption assistance program. This
reduction is onetime.

(d) Child and Community Services Grants
-0-
(16,750,000)
Base adjustment. The general fund is
increased by $13,509,000 in fiscal year 2012
and $13,509,000 in fiscal year 2013.

(e) Group Residential Housing Grants
-0-
84,000
Reduction of Supplemental Service Rate.
Effective July 1, 2011, to June 30, 2013,
the commissioner shall decrease the group
residential housing 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 group
residential housing 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).

(f) Children's Mental Health Grants
(200,000)
(200,000)


(g) Other Children's and Economic Assistance
Grants
400,000
213,000
Minnesota Food Assistance Program. Of
the 2011 appropriation, $150,000 is for the
Minnesota Food Assistance Program. This
appropriation is onetime.
Of this appropriation, $400,000 in fiscal
year 2010 and $63,000 in fiscal year 2011
is for food shelf programs under Minnesota
Statutes, section 256E.34. This appropriation
is available until spent.
Base Adjustment. The general fund base is
increased by $753,000 in fiscal year 2012 and
increased by $263,000 in fiscal year 2013.


Subd. 5.Children and Economic Assistance
Management


(a) Children and Economic Assistance
Administration
-0-
-0-
Base Adjustment. The federal TANF fund
base is decreased by $700,000 in fiscal year
2012 and $700,000 in fiscal year 2013.


(b) Children and Economic Assistance
Operations
-0-
195,000
Base Adjustment. The general fund base is
decreased by $12,000 in fiscal year 2012 and
$12,000 in fiscal year 2013.

Subd. 6.Health Care Grants

(a) MinnesotaCare Grants
998,000
(13,376,000)
This appropriation is from the health care
access fund.
Health Care Access Fund Transfer to
General Fund. The commissioner of
management and budget shall transfer
the following amounts in the following
years from the health care access fund to
the general fund: $998,000 in fiscal year
2010; $176,704,000 in fiscal year 2011;
$141,041,000 in fiscal year 2012; and
$286,150,000 in fiscal year 2013. If at any
time the governor issues an executive order
not to participate in early medical assistance
expansion, no funds shall be transferred from
the health care access fund to the general
fund until early medical assistance expansion
takes effect. This paragraph is effective the
day following final enactment.
MinnesotaCare Ratable Reduction.
Effective for services rendered on or
after July 1, 2010, to December 31, 2013,
MinnesotaCare payments to managed care
plans under Minnesota Statutes, section
256L.12, for single adults and households
without children whose income is greater
than 75 percent of federal poverty guidelines
shall be reduced by 15 percent. Effective
for services provided from July 1, 2010, to
June 30, 2011, this reduction shall apply to
all services. Effective for services provided
from July 1, 2011, to December 31, 2013, this
reduction shall apply to all services except
inpatient hospital services. Notwithstanding
any contrary provision of this article, this
paragraph shall expire on December 31,
2013.


(b) Medical Assistance Basic Health Care
Grants - Families and Children
-0-
295,512,000
Critical Access Dental. Of the general
fund appropriation, $731,000 in fiscal year
2011 is to the commissioner for critical
access dental provider reimbursement
payments under Minnesota Statutes, section
256B.76 subdivision 4. This is a onetime
appropriation.
Nonadministrative Rate Reduction. For
services rendered on or after July 1, 2010,
to December 31, 2013, the commissioner
shall reduce contract rates paid to managed
care plans under Minnesota Statutes,
sections 256B.69 and 256L.12, and to
county-based purchasing plans under
Minnesota Statutes, section 256B.692, by
three percent of the contract rate attributable
to nonadministrative services in effect on
June 30, 2010. Notwithstanding any contrary
provision in this article, this rider expires on
December 31, 2013.


(c) Medical Assistance Basic Health Care
Grants - Elderly and Disabled
-0-
(30,265,000)

(d) General Assistance Medical Care Grants
-0-
(75,389,000)

(e) Other Health Care Grants
-0-
(7,000,000)
Cobra Carryforward. Unexpended funds
appropriated in fiscal year 2010 for COBRA
grants under Laws 2009, chapter 79, article
5, section 78, do not cancel and are available
to the commissioner for fiscal year 2011
COBRA grant expenditures. Up to $111,000
of the fiscal year 2011 appropriation for
COBRA grants provided in Laws 2009,
chapter 79, article 13, section 3, subdivision
6, may be used by the commissioner for costs
related to administration of the COBRA
grants.

Subd. 7.Health Care Management

(a) Health Care Administration
-0-
391,000
Fiscal Note Report. Of this appropriation,
$50,000 in fiscal year 2011 is for a transfer to
the commissioner of Minnesota Management
and Budget for the completion of the human
services fiscal note report in article 5.
PACE Implementation Funding. For fiscal
year 2011, $145,000 is appropriated from
the general fund to the commissioner of
human services to complete the actuarial and
administrative work necessary to begin the
operation of PACE under Minnesota Statutes,
section 256B.69, subdivision 23, paragraph
(e). Base level funding for this activity shall
be $130,000 in fiscal year 2012 and $0 in
fiscal year 2013.
Minnesota Senior Health Options
Reimbursement. Effective July 1, 2011,
federal administrative reimbursement
resulting from the Minnesota senior
health options project is appropriated
to the commissioner for this activity.
Notwithstanding any contrary provision, this
provision expires June 30, 2013.
Utilization Review. Effective July 1,
2011, federal administrative reimbursement
resulting from prior authorization and
inpatient admission certification by a
professional review organization shall be
dedicated to, and is appropriated to, the
commissioner for these activities. A portion
of these funds must be used for activities
to decrease unnecessary pharmaceutical
costs in medical assistance. Notwithstanding
any contrary provision of this article, this
paragraph expires June 30, 2013.
Certified Public Expenditures. (1) The
entities named in Minnesota Statutes, section
256B.199, paragraph (b), clause (1), shall
comply with the requirements of that statute
by promptly reporting on a quarterly basis
certified public expenditures that may qualify
for federal matching funds. Reporting under
this paragraph shall be voluntary from July 1,
2010, to December 31, 2010. Upon federal
enactment of an extension to June 30, 2011,
of the enhanced federal medical assistance
percentage (FMAP) originally provided
under Public Law 111-5, reporting under
this paragraph shall also be voluntary from
January 1, 2011, to June 30, 2011.
(2) To the extent that certified public
expenditures reported in compliance
with paragraph (1) earn federal matching
payments that exceed $8,079,000 in fiscal
year 2012 and $18,316,000 in fiscal year
2013, the excess amount shall be deposited
in the health care access fund. For each fiscal
year after fiscal year 2013, the commissioner
shall forecast in November the amount
of federal payments anticipated to match
certified public expenditures reported in
compliance with paragraph (a). Any federal
match earned in a fiscal year in excess of
the amount forecasted in November shall be
deposited to the health care access fund.
(3) Notwithstanding any contrary provision
of this article, this rider shall not expire.
Poverty Guidelines. Notwithstanding
Minnesota Statutes, sections 256B.56,
subdivision 1c; 256D.03, subdivision 3;
or 256L.04, subdivision 7b, the poverty
guidelines for medical assistance, general
assistance medical care, and MinnesotaCare
from July 1, 2010, through June 30, 2011,
shall not be lower than the poverty guidelines
issued by the Secretary of Health and Human
Services on January 23, 2009. This section
shall have no effect on the revision of poverty
guidelines for the Minnesota health care
programs that would be in effect starting on
July 1, 2011. This paragraph is effective the
day following final enactment.
Base Adjustment. The general fund base is
decreased by $222,000 in fiscal year 2012
and $352,000 in fiscal year 2013.

(b) Health Care Operations

Appropriations by Fund

General
-0-
186,000

Health Care Access
-0-
218,000
The general fund appropriation is a onetime
appropriation in fiscal year 2011.
Base Adjustment. The health care access
fund base for health care operations is
decreased by $812,000 in fiscal year 2012
and $944,000 in fiscal year 2013.

Subd. 8.Continuing Care Grants

(a) Aging and Adult Services Grants
-0-
(1,113,000)
Base Adjustment. The general fund
base for aging and adult services grants is
increased by $974,000 in fiscal year 2012
and $1,113,000 in fiscal year 2013.
Community Service Development
Reduction. The appropriation in Laws
2009, chapter 79, article 13, section 3,
subdivision 8, paragraph (a), for community
service development grants, as amended by
Laws 2009, chapter 173, article 2, section
1, subdivision 8, paragraph (a), is reduced
by $154,000 in fiscal year 2011. The
appropriation base is reduced by $139,000
for fiscal year 2012 and $0 for fiscal year
2013. Notwithstanding any law or rule to
the contrary, this provision expires June 30,
2012.


(b) Medical Assistance Long-Term Care
Facilities Grants
-0-
1,614,000
ICF/MR Occupancy Rate Adjustment
Suspension. Effective for fiscal years 2012
and 2013, approval of new applications for
occupancy rate adjustments for unoccupied
short-term beds under Minnesota Statutes,
section 256B.5013, subdivision 7, is
suspended.
Kandiyohi County; ICF/MR Payment
Rate. $36,000 is appropriated from the
general fund in fiscal year 2011 and $4,000
in fiscal year 2012 to increase payment rates
for an ICF/MR licensed for six beds and
located in Kandiyohi County to serve persons
with high behavioral needs. The payment
rate increase shall be effective for services
provided from July 1, 2010, through June 30,
2011. These appropriations are onetime.


(c) Medical Assistance Long-Term Care
Waivers and Home Care Grants
-0-
(4,035,000)
Manage Growth in Traumatic Brain
Injury and Community Alternatives for
Disabled Individuals Waivers. During
the fiscal year beginning 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 traumatic brain injury waiver to six
allocations per month and the community
alternatives for disabled individuals waiver
to 60 allocations per month. The 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 the Developmental
Disability (DD) Waiver. The commissioner
shall manage the growth in the developmental
disability waiver by limiting the allocations
included in the November 2010 forecast to
six additional diversion allocations each
month for the calendar year that begins on
January 1, 2011. Additional allocations must
be made available for transfers authorized
by the commissioner from the personal care
assistance program of individuals having a
home care rating of CS, MT, or HL. This
provision is effective through December 31,
2011.

(d) Adult Mental Health Grants
(3,500,000)
(300,000)
Compulsive Gambling Special Revenue
Account. $149,000 for fiscal year 2010
and $27,000 for fiscal year 2011 from
the compulsive gambling special revenue
account established under Minnesota
Statutes, section 245.982, shall be transferred
and deposited into the general fund by
June 30 of each respective fiscal year. This
paragraph is effective the day following final
enactment.
Compulsive Gambling Lottery Prize
Fund. The lottery prize fund appropriation
for compulsive gambling is reduced by
$80,000 in fiscal year 2010 and $79,000 in
fiscal year 2011. This is a onetime reduction.
Culturally Specific Treatment. The
appropriation for culturally specific treatment
is reduced by $300,000 in fiscal year 2011.
This is a onetime reduction.
(1) Of the fiscal year 2010 general fund
appropriation for grants to counties for
housing with support services for adults
with serious and persistent mental illness,
$3,300,000 is canceled and returned to the
general fund.
(2) Of the fiscal year 2010 general
fund appropriation for additional crisis
intervention team training for law
enforcement, $200,000 is canceled and
returned to the general fund.
Base Adjustment. The general fund base
is increased by $300,000 in fiscal year 2012
and $300,000 in fiscal year 2013.

(e) Chemical Dependency Entitlement Grants
-0-
(2,433,000)


(f) Chemical Dependency Nonentitlement
Grants
(389,000)
-0-
Base adjustment. The general fund base is
reduced by $393,000 in fiscal year 2012 and
fiscal year 2013.
Chemical Health. Of the fiscal year 2010
general fund appropriation to Mother's First
and the Native American Program, $389,000
is canceled and returned to the general fund.

(g) Other Continuing Care Grants
-0-
350,000
This is a onetime appropriation in fiscal year
2011.
MnDHO Transition. Of the general fund
appropriation for fiscal year 2011, $250,000
is to the commissioner to be made available
to county agencies to assist in the transition
of the approximately 1,290 current MnDHO
members to the fee-for-service Medicaid
program or another managed care option by
January 1, 2011.
County agencies shall work with the
commissioner, health plans, and MnDHO
members and their legal representatives to
develop and implement transition plans that
include:
(1) identification of service needs of MnDHO
members based on the current assessment or
through the completion of a new assessment;
(2) identification of services currently
provided to MnDHO members and which
of those services will continue to be
reimbursable through fee-for-service
or another managed care option under
the Medicaid state plan or a home and
community-based waiver program;
(3) identification of service providers who do
not have a contract with the county or who
are currently reimbursed at a different rate
than the county contracted rate; and
(4) development of an individual service
plan that is within allowable waiver funding
limits.
Region 10 Quality Assurance Commission.
$100,000 is appropriated from the general
fund in fiscal year 2011 to the commissioner
of human services for the purposes
of the Region 10 Quality Assurance
Commission under Minnesota Statutes,
section 256B.0951. This appropriation is
onetime.

Subd. 9.Continuing Care Management
-0-
296,000
PACE Implementation Funding. For fiscal
year 2011, $111,000 is appropriated from
the general fund to the commissioner of
human services to complete the actuarial
and administrative work necessary to begin
the operation of PACE under Minnesota
Statutes, section 256B.69, subdivision 23,
paragraph (e). Base level funding for this
activity shall be $101,000 in fiscal year 2012
and $0 in fiscal year 2013. For fiscal year
2013 and beyond, the commissioner must
work with stakeholders to develop financing
mechanisms to complete the actuarial
and administrative costs of PACE. The
commissioner shall inform the chairs and
ranking minority members of the legislative
committee with jurisdiction over health care
funding by January 15, 2011, on progress to
develop financing mechanisms.
Base Adjustment. The general fund base for
continuing care management is increased by
$7,000 in fiscal year 2012 and decreased by
$94,000 in fiscal year 2013.

Subd. 10.State-Operated Services
Obsolete Laundry Depreciation Account.
$669,000, or the balance, whichever is
greater, must be transferred from the
state-operated services laundry depreciation
account in the special revenue fund and
deposited into the general fund by June 30,
2010. This paragraph is effective the day
following final enactment.
Operating Budget Reductions. No
operating budget reductions enacted in Laws
2010, chapter 200, or in this act shall be
allocated to state-operated services.
Prohibition on Transferring Funds. The
commissioner shall not transfer mental
health grants to state-operated services
without specific legislative approval.
Notwithstanding any contrary provision in
this article, this paragraph shall not expire.

(a) Adult Mental Health Services
-0-
6,888,000
Base Adjustment. The general fund base is
decreased by $12,286,000 in fiscal year 2012
and $12,394,000 in fiscal year 2013.
Appropriation Requirements. (a)
The general fund appropriation to the
commissioner includes funding for the
following:
(1) to a community collaborative to begin
providing crisis center services in the
Mankato area that are comparable to
the crisis services provided prior to the
closure of the Mankato Crisis Center. The
commissioner shall recruit former employees
of the Mankato Crisis Center who were
recently laid off to staff the new crisis
services. The commissioner shall obtain
legislative approval prior to discontinuing
this funding;
(2) to maintain the building in Eveleth
that currently houses community transition
services and to establish a psychiatric
intensive therapeutic foster home as an
enterprise activity. The commissioner shall
request a waiver amendment to allow CADI
funding for psychiatric intensive therapeutic
foster care services provided in the same
location and building as the community
transition services. If the federal government
does not approve the waiver amendment, the
commissioner shall continue to pay the lease
for the building out of the state-operated
services budget until the commissioner of
administration subleases the space or until
the lease expires, and shall establish the
psychiatric intensive therapeutic foster home
at a different site. The commissioner shall
make diligent efforts to sublease the space;
(3) to convert the community behavioral
health hospitals in Wadena and Willmar to
facilities that provide more suitable services
based on the needs of the community,
which may include, but are not limited to,
psychiatric extensive recovery treatment
services. The commissioner may also
establish other community-based services in
the Willmar and Wadena areas that deliver
the appropriate level of care in response to
the express needs of the communities. The
services established under this provision
must be staffed by state employees.
(4) to continue the operation of the dental
clinics in Brainerd, Cambridge, Faribault,
Fergus Falls, and Willmar at the same level of
care and staffing that was in effect on March
1, 2010. The commissioner shall not proceed
with the planned closure of the dental
clinics, and shall not discontinue services or
downsize any of the state-operated dental
clinics without specific legislative approval.
The commissioner shall continue to bill
for services provided to obtain medical
assistance critical access dental payments
and cost-based payment rates as provided
in Minnesota Statutes, section 256B.76,
subdivision 2, and shall bill for services
provided three months retroactively from
the date of this act. This appropriation is
onetime;
(5) to convert the Minnesota
Neurorehabilitation Hospital in Brainerd
to a neurocognitive psychiatric extensive
recovery treatment service; and
(6) to convert the Minnesota extended
treatment options (METO) program to
the following community-based services
provided by state employees: (i) psychiatric
extensive recovery treatment services;
(ii) intensive transitional foster homes
as enterprise activities; and (iii) other
community-based support services. The
provisions under Minnesota Statutes, section
252.025, subdivision 7, are applicable to
the METO services established under this
clause. Notwithstanding Minnesota Statutes,
section 246.18, subdivision 8, any revenue
lost to the general fund by the conversion
of METO to new services must be replaced
by revenue from the new services to offset
the lost revenue to the general fund until
June 30, 2013. Any revenue generated in
excess of this amount shall be deposited into
the special revenue fund under Minnesota
Statutes, section 246.18, subdivision 8.
(b) The commissioner shall not move beds
from the Anoka-Metro Regional Treatment
Center to the psychiatric nursing facility
at St. Peter without specific legislative
approval.
(c) The commissioner shall implement
changes, including the following, to save a
minimum of $6,006,000 beginning in fiscal
year 2011, and report to the legislature the
specific initiatives implemented and the
savings allocated to each one, including:
(1) maximizing budget savings through
strategic employee staffing; and
(2) identifying and implementing cost
reductions in cooperation with state-operated
services employees.
Base level funding is reduced by $6,006,000
effective fiscal year 2011.
(d) The commissioner shall seek certification
or approval from the federal government for
the new services under paragraph (a) that are
eligible for federal financial participation
and deposit the revenue associated with
these new services in the account established
under Minnesota Statutes, section 246.18,
subdivision 8, unless otherwise specified.
(e) Notwithstanding any contrary provision
in this article, this rider shall not expire.

(b) Minnesota Sex Offender Services
-0-
(145,000)
Sex Offender Services. Base level funding
for Minnesota sex offender services is
reduced by $418,000 in fiscal year 2012 and
$419,000 in fiscal year 2013 for the 50-bed
sex offender treatment program within the
Moose Lake correctional facility in which
Department of Human Services staff from
Minnesota sex offender services provide
clinical treatment to incarcerated offenders.
This reduction shall become part of the base
for the Department of Human Services.
Interagency Agreements. The
commissioner of human services may
enter into interagency agreements with the
commissioner of corrections to continue sex
offender treatment and chemical dependency
treatment on a cost-sharing basis, in which
each department pays 50 percent of the costs
of these services.
Base Adjustment. The general fund base
is increased by $418,000 in fiscal year 2012
and $419,000 in fiscal year 2013.


Sec. 4. COMMISSIONER OF HEALTH

Subdivision 1.Total Appropriation
$
(2,392,000)
$
1,310,000

Appropriations by Fund

2010
2011

General
(2,392,000)
1,064,000


State Government
Special Revenue
-0-
9,000

Health Care Access
-0-
237,000

Subd. 2.Community and Family Health
(221,000)
(47,000)
Base Level Adjustment. The general fund
base is decreased by $1,388,000 in fiscal
years 2012 and 2013.

Subd. 3.Policy, Quality, and Compliance

Appropriations by Fund

2010
2011

General
(1,797,000)
497,000


State Government
Special Revenue
-0-
9,000

Health Care Access
-0-
237,000
Health Care Reform. Funds appropriated
in Laws 2008, chapter 358, article 5, section
4, subdivision 3, for health reform activities
to implement Laws 2008, chapter 358,
article 4, are available until expended.
Notwithstanding any contrary provision in
this article, this provision shall not expire.
Health Care Reform Task Force. $198,000
from the general fund is for expenses related
to the Health Care Reform Task Force
established under article 7. This is a onetime
appropriation.
Rural Hospital Capital Improvement
Grants. Of the general fund reductions in
fiscal year 2010, $1,755,000 is for the rural
hospital capital improvement grant program.
Section 125 Plans. The remaining balance
from the Laws 2008, chapter 358, article 5,
section 4, subdivision 3, appropriation for
Section 125 Plan Employer Incentives is
canceled.
Birth Centers. Of the appropriation in fiscal
year 2011 from the state government special
revenue fund, $9,000 is to the commissioner
to license birth centers. Base level funding
for this activity shall be $7,000 in fiscal year
2012 and $7,000 in fiscal year 2013.
Comprehensive Advanced Life Support
Program. Of the general fund appropriation,
$377,000 in fiscal year 2011 is to the
commissioner for the comprehensive
advanced life support educational program.
For fiscal year 2012, base level funding for
this program shall be $377,000.
Advisory Group on Administrative
Expenses. Of the health care access fund
appropriation for fiscal year 2011, $39,000 is
to the commissioner for the advisory group
established under Minnesota Statutes, section
62D.31. This is a onetime appropriation.
Base Level Adjustment. The general fund
base is decreased by $253,000 in fiscal year
2012 and $253,000 in fiscal year 2013. The
state government special revenue fund base
is decreased by $2,000 in fiscal year 2012
and $2,000 in fiscal year 2013.
Office of Unlicensed Health Care Practice.
Of the general fund appropriation, $74,000
in fiscal year 2011 is for the Office of
Unlicensed Complementary and Alternative
Health Care Practice. This is a onetime
appropriation.

Subd. 4.Health Protection
(374,000)
714,000
Lead Base Grant Program. Of the general
fund reduction, $25,000 in fiscal year 2010
and fiscal year 2011 is for the elimination
of state funding for the temporary lead-safe
housing base grant program.
Birth Defects Information System. Of the
general fund appropriation for fiscal year
2011, $919,000 is for the Minnesota Birth
Defects Information System established
under Minnesota Statutes, section 144.2215.
Base Adjustment. The general fund base
is increased by $440,000 in fiscal year 2012
and $984,000 in fiscal year 2013.

Subd. 5.Administrative Support Services
-0-
(100,000)
The general fund base is decreased by
$22,000 in fiscal year 2012 and $22,000 in
fiscal year 2013.



Sec. 5. DEPARTMENT OF VETERANS
AFFAIRS
$
(50,000)
$
-0-
Cancellation of Prior Appropriation.
By June 30, 2010, the commissioner of
management and budget shall cancel the
$50,000 appropriation for fiscal year 2008 to
the board in Laws 2007, chapter 147, article
19, section 5, in the paragraph titled "Pay for
Performance."


Sec. 6. HEALTH-RELATED BOARDS

Subdivision 1.Total Appropriation
$
113,000
$
615,000
The appropriations in this section are from
the state government special revenue fund.
In fiscal year 2010, $591,000 shall be
transferred from the state government special
revenue fund to the general fund. In fiscal
year 2011, $3,052,000 shall be transferred
from the state government special revenue
fund to the general fund. These transfers
are in addition to those made in Laws 2009,
chapter 79, article 13, section 5, as amended
by Laws 2009, chapter 173, article 2, section
3.
The transfers in this section are onetime in
the fiscal year 2010-2011 biennium.
The appropriations for each purpose are
shown in the following subdivisions.


Subd. 2.Board of Marriage and Family
Therapy
47,000
22,000
Operating Costs and Rulemaking. Of
this appropriation, $22,000 in fiscal year
2010 and $22,000 in fiscal year 2011 are
for operating costs. This is an ongoing
appropriation. Of this appropriation, $25,000
in fiscal year 2010 is for rulemaking. This is
a onetime appropriation.


Subd. 3.Board of Nursing Home
Administrators
51,000
61,000

Subd. 4.Board of Pharmacy
-0-
517,000
Prescription Electronic Reporting. Of
the state government special revenue fund
appropriation, $517,000 in fiscal year 2011
is to the board to operate the prescription
electronic reporting system in Minnesota
Statutes, section 152.126. Base level funding
for this activity in fiscal year 2012 shall be
$356,000.

Subd. 5.Board of Podiatry
15,000
15,000
Purpose. This appropriation is to pay health
insurance coverage costs and to cover the
cost of expert witnesses in disciplinary cases.



Sec. 7. EMERGENCY MEDICAL SERVICES
BOARD
$
247,000
$
(382,000)


Sec. 8. UNIVERSITY OF MINNESOTA
$
-0-
$
93,000
This appropriation is from the special
revenue fund for the couples on the brink
program.


Sec. 9. DEPARTMENT OF CORRECTIONS
$
-0-
$
-0-
Sex Offender Services. From the general
fund appropriations to the commissioner of
corrections, the commissioner shall transfer
$418,000 in fiscal year 2012 and $419,000
in fiscal year 2013 to the commissioner of
human services to provide clinical treatment
to incarcerated offenders. This transfer shall
become part of the base for the Department
of Corrections.


Sec. 10. DEPARTMENT OF COMMERCE
$
-0-
$
38,000
Health Plan Filings. Of this appropriation:
(1) $19,000 is for the review and approval
of new health plan filings due to Minnesota
Statutes, section 62Q.545. This is a onetime
appropriation in fiscal year 2011; and
(2) $19,000 is for regulation of Minnesota
Statutes, section 62A.3075. This is a onetime
appropriation.



Sec. 11. CASH FLOW BALANCE TO
GENERAL FUND
$84,000,000 of the unobligated balance in
the case flow account created by Minnesota
Statutes, section 16A.152, subdivision 1,
must be canceled by the commissioner of
management and budget to the general fund
by June 30, 2011.

    Sec. 12. Minnesota Statutes 2008, section 214.40, subdivision 7, is amended to read:
    Subd. 7. Medical professional liability insurance. (a) Within the limit of funds
appropriated for this program, the administrative services unit must purchase medical
professional liability insurance, if available, for a health care provider who is registered in
accordance with subdivision 4 and who is not otherwise covered by a medical professional
liability insurance policy or self-insured plan either personally or through another facility
or employer. The administrative services unit is authorized to prorate payments or
otherwise limit the number of participants in the program if the costs of the insurance for
eligible providers exceed the funds appropriated for the program.
(b) Coverage purchased under this subdivision must be limited to the provision of
health care services performed by the provider for which the provider does not receive
direct monetary compensation.
EFFECTIVE DATE.This section is effective the day following final enactment.

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

Subdivision 1.Total Appropriation
$
5,225,451,000
$
6,002,864,000

Appropriations by Fund

2010
2011

General
4,375,689,000
5,209,765,000


State Government
Special Revenue
565,000
565,000

Health Care Access
450,662,000
527,411,000

Federal TANF
286,770,000
263,458,000

Lottery Prize
1,665,000
1,665,000

Federal Fund
110,000,000
0
Receipts for Systems Projects.
Appropriations and federal receipts for
information systems projects for MAXIS,
PRISM, MMIS, and SSIS must be deposited
in the state system account authorized in
Minnesota Statutes, section 256.014. Money
appropriated for computer projects approved
by the Minnesota Office of Enterprise
Technology, funded by the legislature, and
approved by the commissioner of finance,
may be transferred from one project to
another and from development to operations
as the commissioner of human services
considers necessary, except that any transfers
to one project that exceed $1,000,000 or
multiple transfers to one project that exceed
$1,000,000 in total require the express
approval of the legislature. The preceding
requirement for legislative approval does not
apply to transfers made to establish a project's
initial operating budget each year; instead,
the requirements of section 11, subdivision
2, of this article apply to those transfers. Any
unexpended balance in the appropriation
for these projects does not cancel but is
available for ongoing development and
operations. Any computer project with a
total cost exceeding $1,000,000, including,
but not limited to, a replacement for the
proposed HealthMatch system, shall not be
commenced without the express approval of
the legislature.
HealthMatch Systems Project. In fiscal
year 2010, $3,054,000 shall be transferred
from the HealthMatch account in the state
systems account in the special revenue fund
to the general fund.
Nonfederal Share Transfers. The
nonfederal share of activities for which
federal administrative reimbursement is
appropriated to the commissioner may be
transferred to the special revenue fund.
TANF Maintenance of Effort.
(a) In order to meet the basic maintenance
of effort (MOE) requirements of the TANF
block grant specified under Code of Federal
Regulations, title 45, section 263.1, the
commissioner may only report nonfederal
money expended for allowable activities
listed in the following clauses as TANF/MOE
expenditures:
(1) MFIP cash, diversionary work program,
and food assistance benefits under Minnesota
Statutes, chapter 256J;
(2) the child care assistance programs
under Minnesota Statutes, sections 119B.03
and 119B.05, and county child care
administrative costs under Minnesota
Statutes, section 119B.15;
(3) state and county MFIP administrative
costs under Minnesota Statutes, chapters
256J and 256K;
(4) state, county, and tribal MFIP
employment services under Minnesota
Statutes, chapters 256J and 256K;
(5) expenditures made on behalf of
noncitizen MFIP recipients who qualify
for the medical assistance without federal
financial participation program under
Minnesota Statutes, section 256B.06,
subdivision 4
, paragraphs (d), (e), and (j);
and
(6) qualifying working family credit
expenditures under Minnesota Statutes,
section 290.0671.; and
(7) qualifying Minnesota education credit
expenditures under Minnesota Statutes,
section 290.0674.
(b) The commissioner shall ensure that
sufficient qualified nonfederal expenditures
are made each year to meet the state's
TANF/MOE requirements. For the activities
listed in paragraph (a), clauses (2) to
(6), the commissioner may only report
expenditures that are excluded from the
definition of assistance under Code of
Federal Regulations, title 45, section 260.31.
(c) For fiscal years beginning with state
fiscal year 2003, the commissioner shall
ensure that the maintenance of effort used
by the commissioner of finance for the
February and November forecasts required
under Minnesota Statutes, section 16A.103,
contains expenditures under paragraph (a),
clause (1), equal to at least 16 percent of
the total required under Code of Federal
Regulations, title 45, section 263.1.
(d) For the federal fiscal years beginning on
or after October 1, 2007, the commissioner
may not claim an amount of TANF/MOE in
excess of the 75 percent standard in Code
of Federal Regulations, title 45, section
263.1(a)(2), except:
(1) to the extent necessary to meet the 80
percent standard under Code of Federal
Regulations, title 45, section 263.1(a)(1),
if it is determined by the commissioner
that the state will not meet the TANF work
participation target rate for the current year;
(2) to provide any additional amounts
under Code of Federal Regulations, title 45,
section 264.5, that relate to replacement of
TANF funds due to the operation of TANF
penalties; and
(3) to provide any additional amounts that
may contribute to avoiding or reducing
TANF work participation penalties through
the operation of the excess MOE provisions
of Code of Federal Regulations, title 45,
section 261.43 (a)(2).
For the purposes of clauses (1) to (3),
the commissioner may supplement the
MOE claim with working family credit
expenditures to the extent such expenditures
or other qualified expenditures are otherwise
available after considering the expenditures
allowed in this section.
(e) Minnesota Statutes, section 256.011,
subdivision 3
, which requires that federal
grants or aids secured or obtained under that
subdivision be used to reduce any direct
appropriations provided by law, do not apply
if the grants or aids are federal TANF funds.
(f) Notwithstanding any contrary provision
in this article, this provision expires June 30,
2013.
Working Family Credit Expenditures as
TANF/MOE. The commissioner may claim
as TANF/MOE up to $6,707,000 per year of
working family credit expenditures for fiscal
year 2010 through fiscal year 2011.
Working Family Credit Expenditures
to be Claimed for TANF/MOE. The
commissioner may count the following
amounts of working family credit expenditure
as TANF/MOE:
(1) fiscal year 2010, $50,973,000
$50,897,000;
(2) fiscal year 2011, $53,793,000
$54,243,000;
(3) fiscal year 2012, $23,516,000
$23,345,000; and
(4) fiscal year 2013, $16,808,000
$16,585,000.
Notwithstanding any contrary provision in
this article, this rider expires June 30, 2013.
Food Stamps Employment and Training.
(a) The commissioner shall apply for and
claim the maximum allowable federal
matching funds under United States Code,
title 7, section 2025, paragraph (h), for
state expenditures made on behalf of family
stabilization services participants voluntarily
engaged in food stamp employment and
training activities, where appropriate.
(b) Notwithstanding Minnesota Statutes,
sections 256D.051, subdivisions 1a, 6b,
and 6c, and 256J.626, federal food stamps
employment and training funds received
as reimbursement of MFIP consolidated
fund grant expenditures for diversionary
work program participants and child
care assistance program expenditures for
two-parent families must be deposited in the
general fund. The amount of funds must be
limited to $3,350,000 in fiscal year 2010
and $4,440,000 in fiscal years 2011 through
2013, contingent on approval by the federal
Food and Nutrition Service.
(c) Consistent with the receipt of these federal
funds, the commissioner may adjust the
level of working family credit expenditures
claimed as TANF maintenance of effort.
Notwithstanding any contrary provision in
this article, this rider expires June 30, 2013.
ARRA Food Support Administration.
The funds available for food support
administration under the American Recovery
and Reinvestment Act (ARRA) of 2009
are appropriated to the commissioner
to pay actual costs of implementing the
food support benefit increases, increased
eligibility determinations, and outreach. Of
these funds, 20 percent shall be allocated
to the commissioner and 80 percent shall
be allocated to counties. The commissioner
shall allocate the county portion based on
caseload. Reimbursement shall be based on
actual costs reported by counties through
existing processes. Tribal reimbursement
must be made from the state portion based
on a caseload factor equivalent to that of a
county.
ARRA Food Support Benefit Increases.
The funds provided for food support benefit
increases under the Supplemental Nutrition
Assistance Program provisions of the
American Recovery and Reinvestment Act
(ARRA) of 2009 must be used for benefit
increases beginning July 1, 2009.
Emergency Fund for the TANF Program.
TANF Emergency Contingency funds
available under the American Recovery
and Reinvestment Act of 2009 (Public Law
111-5) are appropriated to the commissioner.
The commissioner must request TANF
Emergency Contingency funds from the
Secretary of the Department of Health
and Human Services to the extent the
commissioner meets or expects to meet the
requirements of section 403(c) of the Social
Security Act. The commissioner must seek
to maximize such grants. The funds received
must be used as appropriated. Each county
must maintain the county's current level of
emergency assistance funding under the
MFIP consolidated fund and use the funds
under this paragraph to supplement existing
emergency assistance funding levels.

    Sec. 14. Laws 2009, chapter 79, article 13, section 3, subdivision 3, as amended by
Laws 2009, chapter 173, article 2, section 1, subdivision 3, is amended to read:


Subd. 3.Revenue and Pass-Through Revenue
Expenditures
68,337,000
70,505,000
This appropriation is from the federal TANF
fund.
TANF Transfer to Federal Child Care
and Development Fund. The following
TANF fund amounts are appropriated to the
commissioner for the purposes of MFIP and
transition year child care under Minnesota
Statutes, section 119B.05:
(1) fiscal year 2010, $6,531,000 $862,000;
(2) fiscal year 2011, $10,241,000 $978,000;
(3) fiscal year 2012, $10,826,000 $0; and
(4) fiscal year 2013, $4,046,000 $0.
The commissioner shall authorize the
transfer of sufficient TANF funds to the
federal child care and development fund to
meet this appropriation and shall ensure that
all transferred funds are expended according
to federal child care and development fund
regulations.

    Sec. 15. Laws 2009, chapter 79, article 13, section 3, subdivision 4, as amended by
Laws 2009, chapter 173, article 2, section 1, subdivision 4, is amended to read:


Subd. 4.Children and Economic Assistance
Grants
The amounts that may be spent from this
appropriation for each purpose are as follows:

(a) MFIP/DWP Grants

Appropriations by Fund

General
63,205,000
89,033,000

Federal TANF
100,818,000
84,538,000

(b) Support Services Grants

Appropriations by Fund

General
8,715,000
12,498,000

Federal TANF
116,557,000
107,457,000
MFIP Consolidated Fund. The MFIP
consolidated fund TANF appropriation is
reduced by $1,854,000 in fiscal year 2010
and fiscal year 2011.
Notwithstanding Minnesota Statutes, section
256J.626, subdivision 8, paragraph (b), the
commissioner shall reduce proportionately
the reimbursement to counties for
administrative expenses.
Subsidized Employment Funding Through
ARRA. The commissioner is authorized to
apply for TANF emergency fund grants for
subsidized employment activities. Growth
in expenditures for subsidized employment
within the supported work program and the
MFIP consolidated fund over the amount
expended in the calendar quarters in the
TANF emergency fund base year shall be
used to leverage the TANF emergency fund
grants for subsidized employment and to
fund supported work. The commissioner
shall develop procedures to maximize
reimbursement of these expenditures over the
TANF emergency fund base year quarters,
and may contract directly with employers
and providers to maximize these TANF
emergency fund grants, including provisions
of TANF summer youth program wage
subsidies for MFIP youth and caregivers.
MFIP youth are individuals up to age 25 who
are part of an eligible household as defined
under rules governing TANF maintenance
of effort with incomes less than 200 percent
of federal poverty guidelines. Expenditures
may only be used for subsidized wages and
benefits and eligible training and supervision
expenditures. The commissioner shall
contract with the Minnesota Department of
Employment and Economic Development
for the summer youth program. The
commissioner shall develop procedures
to maximize reimbursement of these
expenditures over the TANF emergency fund
year quarters. No more than $6,000,000 shall
be reimbursed. This provision is effective
upon enactment.
Supported Work. Of the TANF
appropriation, $4,700,000 in fiscal year 2010
and $4,700,000 in fiscal year 2011 are to the
commissioner for supported work for MFIP
recipients and is available until expended.
Supported work includes paid transitional
work experience and a continuum of
employment assistance, including outreach
and recruitment, program orientation
and intake, testing and assessment, job
development and marketing, preworksite
training, supported worksite experience,
job coaching, and postplacement follow-up,
in addition to extensive case management
and referral services. This is a onetime
appropriation.
Base Adjustment. The general fund base
is reduced by $3,783,000 in each of fiscal
years 2012 and 2013. The TANF fund base
is increased by $5,004,000 in each of fiscal
years 2012 and 2013.
Integrated Services Program Funding.
The TANF appropriation for integrated
services program funding is $1,250,000 in
fiscal year 2010 and $0 in fiscal year 2011
and the base for fiscal years 2012 and 2013
is $0.
TANF Emergency Fund; Nonrecurrent
Short-Term Benefits. (a) TANF emergency
contingency fund grants received due to
increases in expenditures for nonrecurrent
short-term benefits must be used to offset the
increase in these expenditures for counties
under the MFIP consolidated fund, under
Minnesota Statutes, section 256J.626,
and the diversionary work program. The
commissioner shall develop procedures
to maximize reimbursement of these
expenditures over the TANF emergency fund
base year quarters. Growth in expenditures
for the diversionary work program over the
amount expended in the calendar quarters in
the TANF emergency fund base year shall be
used to leverage these funds.
(b) To the extent that the commissioner
can claim eligible tax credit growth as
nonrecurrent short-term benefits, the
commissioner shall use those funds to
leverage the increased expenditures in
paragraph (a).
(c) TANF emergency funds for nonrecurrent
short-term benefits received in excess of the
amounts necessary for paragraphs (a) and (b)
shall be used to reimburse the general fund
for the costs of eligible tax credits in fiscal
year 2011. The amount of such funds shall
not exceed $15,500,000 in fiscal year 2010.
(d) This rider is effective the day following
final enactment.
TANF Summer Food Programs -
TANF Emergency Fund Non-Recurrent
Short-Term Benefits. In addition to the
TANF emergency fund (TEF) non-recurrent
short-term benefits provided in this
subdivision, the commissioner may
supplement funds available under Minnesota
Statutes, section 256E.34 to provide for
summer food programs to the extent such
funds are available and eligible to leverage
TANF emergency funds non-recurrent
benefits. The commissioner may contract
directly with providers or third-party funders
to maximize these TANF emergency fund
grants. Up to $800,000 of TEF non-recurrent
short-term benefit earnings may be used in
this program. This paragraph is effective the
day following final enactment.

(c) MFIP Child Care Assistance Grants
61,171,000
65,214,000
Acceleration of ARRA Child Care and
Development Fund Expenditure. The
commissioner must liquidate all child care
and development money available under
the American Recovery and Reinvestment
Act (ARRA) of 2009, Public Law 111-5,
by September 30, 2010. In order to expend
those funds by September 30, 2010, the
commissioner may redesignate and expend
the ARRA child care and development funds
appropriated in fiscal year 2011 for purposes
under this section for related purposes that
will allow liquidation by September 30,
2010. Child care and development funds
otherwise available to the commissioner
for those related purposes shall be used to
fund the purposes from which the ARRA
child care and development funds had been
redesignated.
School Readiness Service Agreements.
$400,000 in fiscal year 2010 and $400,000
in fiscal year 2011 are from the federal
TANF fund to the commissioner of human
services consistent with federal regulations
for the purpose of school readiness service
agreements under Minnesota Statutes,
section 119B.231. This is a onetime
appropriation. Any unexpended balance the
first year is available in the second year.