1.1                          A bill for an act 
  1.2             relating to human services; adding an exclusion to 
  1.3             elderly housing with services establishment; 
  1.4             downsizing the number of IMD beds; modifying the 
  1.5             appeal process for nursing facilities; changing 
  1.6             procedure for permanent placement of a child and 
  1.7             provisions for reimbursement for family foster care; 
  1.8             removing the time limitation on family general 
  1.9             assistance; amending Minnesota Statutes 1996, sections 
  1.10            144D.01, subdivision 4; 245.466, by adding a 
  1.11            subdivision; 256B.059, subdivisions 1, 2, 5, and by 
  1.12            adding a subdivision; 256B.17, subdivision 7; 
  1.13            256B.431, subdivision 18; 256B.50, subdivisions 1, 1b, 
  1.14            1c, and 1f; 256D.01, subdivision 1a; 257.071, 
  1.15            subdivision 2; 260.191, subdivision 3b; 260.192; 
  1.16            260.242, subdivision 2; and 382.18; repealing 
  1.17            Minnesota Statutes 1996, sections 256B.17, 
  1.18            subdivisions 1, 2, 3, 4, 5, 6, and 8; and 256B.50, 
  1.19            subdivisions 1d, 1g, 1h, and 2. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 1996, section 144D.01, 
  1.22  subdivision 4, is amended to read: 
  1.23     Subd. 4.  [ELDERLY HOUSING WITH SERVICES ESTABLISHMENT OR 
  1.24  ESTABLISHMENT.] "Elderly housing with services establishment" or 
  1.25  "establishment" means an establishment providing sleeping 
  1.26  accommodations to one or more adult residents, at least 80 
  1.27  percent of which are 55 years of age or older, and offering or 
  1.28  providing, for a fee, one or more health-related or supportive 
  1.29  service, whether offered or provided directly by the 
  1.30  establishment or by another entity arranged for by the 
  1.31  establishment. 
  1.32     Elderly housing with services establishment does not 
  2.1   include: 
  2.2      (1) a nursing home licensed under chapter 144A; 
  2.3      (2) a hospital, boarding care home, or supervised living 
  2.4   facility licensed under sections 144.50 to 144.56; 
  2.5      (3) a board and lodging establishment licensed under 
  2.6   chapter 157 and Minnesota Rules, parts 9520.0500 to 9520.0670, 
  2.7   9525.0215 to 9525.0355, 9525.0500 to 9525.0660, or 9530.4100 to 
  2.8   9530.4450; 
  2.9      (4) a board and lodging establishment which serves as a 
  2.10  shelter for battered women or other similar purpose; 
  2.11     (5) a family adult foster care home licensed under 
  2.12  Minnesota Rules, parts 9543.0010 to 9543.0150; ~~or~~ 
  2.13     (6) private homes in which the residents are related by 
  2.14  kinship, law, or affinity with the providers of services; or 
  2.15     (7) residential settings for persons with mental 
  2.16  retardation or related conditions in which the services are 
  2.17  licensed under Minnesota Rules, parts 9525.2100 to 9525.2140, or 
  2.18  applicable successor rules or laws. 
  2.19     Sec. 2.  Minnesota Statutes 1996, section 245.466, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 7.  [IMD DOWNSIZING FLEXIBILITY.] If a county 
  2.22  presents a budget-neutral plan for a net reduction in the number 
  2.23  of institution for mental disease (IMD) beds funded under group 
  2.24  residential housing, the commissioner may transfer the net 
  2.25  savings from group residential housing and general assistance 
  2.26  medical care to medical assistance and mental health grants to 
  2.27  provide appropriate services in non-IMD settings. 
  2.28     Sec. 3.  Minnesota Statutes 1996, section 256B.059, is 
  2.29  amended by adding a subdivision to read: 
  2.30     Subdivision 1.  [INSTITUTIONALIZED SPOUSE.] The provisions 
  2.31  of this section apply only when a spouse is institutionalized 
  2.32  for a continuous period beginning on or after October 1, 1989. 
  2.33     Sec. 4.  Minnesota Statutes 1996, section 256B.059, 
  2.34  subdivision 1, is amended to read: 
  2.35     ~~Subdivision 1.~~ Subd. 1a.  [DEFINITIONS.] (a) For purposes 
  2.36  of this section, the terms defined in this subdivision have the 
  3.1   meanings given them. 
  3.2      (b) "Community spouse" means the spouse of an 
  3.3   institutionalized spouse. 
  3.4      (c) "Spousal share" means one-half of the total value of 
  3.5   all assets, to the extent that either the institutionalized 
  3.6   spouse or the community spouse had an ownership interest at the 
  3.7   time of institutionalization. 
  3.8      (d) "Assets otherwise available to the community spouse" 
  3.9   means assets individually or jointly owned by the community 
  3.10  spouse, other than assets excluded by subdivision 5, paragraph 
  3.11  (c). 
  3.12     (e) "Community spouse asset allowance" is the value of 
  3.13  assets that can be transferred under subdivision 3. 
  3.14     (f) "Institutionalized spouse" means a person who is: 
  3.15     (1) in a hospital, nursing facility, or intermediate care 
  3.16  facility for persons with mental retardation, or receiving home 
  3.17  and community-based services under section 256B.0915 or 256B.49, 
  3.18  and is expected to remain in the facility or institution or 
  3.19  receive the home and community-based services for at least 30 
  3.20  consecutive days; and 
  3.21     (2) married to a person who is not in a hospital, nursing 
  3.22  facility, or intermediate care facility for persons with mental 
  3.23  retardation, and is not receiving home and community-based 
  3.24  services under section 256B.0915 or 256B.49. 
  3.25     Sec. 5.  Minnesota Statutes 1996, section 256B.059, 
  3.26  subdivision 2, is amended to read: 
  3.27     Subd. 2.  [ASSESSMENT OF SPOUSAL SHARE.] At the beginning 
  3.28  of ~~a~~ the first continuous period of institutionalization of a 
  3.29  person beginning on or after October 1, 1989, at the request of 
  3.30  either the institutionalized spouse or the community spouse, or 
  3.31  upon application for medical assistance, the total value of 
  3.32  assets in which either the institutionalized spouse or the 
  3.33  community spouse had an interest at the time of the first period 
  3.34  of institutionalization of 30 days or more shall be assessed and 
  3.35  documented and the spousal share shall be assessed and 
  3.36  documented. 
  4.1      Sec. 6.  Minnesota Statutes 1996, section 256B.059, 
  4.2   subdivision 5, is amended to read: 
  4.3      Subd. 5.  [ASSET AVAILABILITY.] (a) At the time of initial 
  4.4   determination of eligibility for medical assistance benefits 
  4.5   following the first continuous period of institutionalization on 
  4.6   or after October 1, 1989, assets considered available to the 
  4.7   institutionalized spouse shall be the total value of all assets 
  4.8   in which either spouse has an ownership interest, reduced by the 
  4.9   following: 
  4.10     (1) prior to July 1, 1994, the greater of:  
  4.11     (i) $14,148; 
  4.12     (ii) the lesser of the spousal share or $70,740; or 
  4.13     (iii) the amount required by court order to be paid to the 
  4.14  community spouse; 
  4.15     (2) for persons whose date of initial determination of 
  4.16  eligibility for medical assistance following their first 
  4.17  continuous period of institutionalization occurs on or after 
  4.18  July 1, 1994, the greater of:  
  4.19     (i) $20,000; 
  4.20     (ii) the lesser of the spousal share or $70,740; or 
  4.21     (iii) the amount required by court order to be paid to the 
  4.22  community spouse.  If the community spouse asset allowance has 
  4.23  been increased under subdivision 4, then the assets considered 
  4.24  available to the institutionalized spouse under this subdivision 
  4.25  shall be further reduced by the value of additional amounts 
  4.26  allowed under subdivision 4. 
  4.27     (b) An institutionalized spouse may be found eligible for 
  4.28  medical assistance even though assets in excess of the allowable 
  4.29  amount are found to be available under paragraph (a) if the 
  4.30  assets are owned jointly or individually by the community 
  4.31  spouse, and the institutionalized spouse cannot use those assets 
  4.32  to pay for the cost of care without the consent of the community 
  4.33  spouse, and if:  (i) the institutionalized spouse assigns to the 
  4.34  commissioner the right to support from the community spouse 
  4.35  under section 256B.14, subdivision 3; (ii) the institutionalized 
  4.36  spouse lacks the ability to execute an assignment due to a 
  5.1   physical or mental impairment; or (iii) the denial of 
  5.2   eligibility would cause an imminent threat to the 
  5.3   institutionalized spouse's health and well-being. 
  5.4      (c) After the month in which the institutionalized spouse 
  5.5   is determined eligible for medical assistance, during the 
  5.6   continuous period of institutionalization, no assets of the 
  5.7   community spouse are considered available to the 
  5.8   institutionalized spouse, unless the institutionalized spouse 
  5.9   has been found eligible under paragraph (b). 
  5.10     (d) Assets determined to be available to the 
  5.11  institutionalized spouse under this section must be used for the 
  5.12  health care or personal needs of the institutionalized spouse. 
  5.13     (e) For purposes of this section, assets do not include 
  5.14  assets excluded under the supplemental security income program. 
  5.15     Sec. 7.  Minnesota Statutes 1996, section 256B.17, 
  5.16  subdivision 7, is amended to read: 
  5.17     Subd. 7.  [EXCEPTION FOR ASSET TRANSFERS.] ~~Notwithstanding~~ 
  5.18  ~~the provisions of subdivisions 1 to 6,~~ An institutionalized 
  5.19  spouse, institutionalized before October 1, 1989, for a 
  5.20  continuous period, who applies for medical assistance on or 
  5.21  after July 1, 1983, may transfer liquid assets to a 
  5.22  noninstitutionalized spouse ~~without loss of eligibility~~ if all 
  5.23  of the following conditions apply: 
  5.24     (a) The noninstitutionalized spouse is not applying for or 
  5.25  receiving assistance; 
  5.26     (b) Either (1) the noninstitutionalized spouse has less 
  5.27  than $10,000 in liquid assets, including assets singly owned and 
  5.28  50 percent of assets owned jointly with the institutionalized 
  5.29  spouse; or (2) the noninstitutionalized spouse has less than 50 
  5.30  percent of the total value of nonexempt assets owned by both 
  5.31  parties, jointly or individually; 
  5.32     (c) The amount transferred, together with the 
  5.33  noninstitutionalized spouse's own assets, totals no more than 
  5.34  one-half of the total value of the liquid assets of the parties 
  5.35  or $10,000 in liquid assets, whichever is greater; and 
  5.36     (d) The transfer may be effected only once, at the time of 
  6.1   initial medical assistance application. 
  6.2      Sec. 8.  Minnesota Statutes 1996, section 256B.431, 
  6.3   subdivision 18, is amended to read: 
  6.4      Subd. 18.  [APPRAISALS; UPDATING APPRAISALS, ADDITIONS, AND 
  6.5   REPLACEMENTS.] (a) Notwithstanding Minnesota Rules, part 
  6.6   9549.0060, subparts 1 to 3, the appraised value, routine 
  6.7   updating of the appraised value, and special reappraisals are 
  6.8   subject to this subdivision. 
  6.9      (1) For rate years beginning after June 30, 1993, the 
  6.10  commissioner shall permit a nursing facility to appeal its 
  6.11  appraisal ~~according to the procedures provided in section~~ 
  6.12  ~~256B.50, subdivision 2~~.  Any reappraisals conducted in 
  6.13  connection with that appeal must utilize the comparative-unit 
  6.14  method as described in the Marshall Valuation Service published 
  6.15  by Marshall-Swift in establishing the nursing facility's 
  6.16  depreciated replacement cost. 
  6.17     Nursing facilities electing to appeal their appraised value 
  6.18  shall file written notice of appeal with the commissioner of 
  6.19  human services before December 30, 1992.  The cost of the 
  6.20  reappraisal, if any, shall be considered an allowable cost under 
  6.21  Minnesota Rules, parts 9549.0040, subpart 9, and 9549.0061. 
  6.22     (2) The redetermination of a nursing facility's appraised 
  6.23  value under this paragraph shall have no impact on the rental 
  6.24  payment rate determined under subdivision 13 but shall only be 
  6.25  used for calculating the nursing facility's rental rate under 
  6.26  Minnesota Rules, parts 9549.0010 to 9549.0080, and this section 
  6.27  for rate years beginning after June 30, 1993.  
  6.28     (3) For all rate years after June 30, 1993, the 
  6.29  commissioner shall no longer conduct any appraisals under 
  6.30  Minnesota Rules, part 9549.0060, for the purpose of determining 
  6.31  property-related payment rates. 
  6.32     (b) Notwithstanding Minnesota Rules, part 9549.0060, 
  6.33  subpart 2, for rate years beginning after June 30, 1993, the 
  6.34  commissioner shall routinely update the appraised value of each 
  6.35  nursing facility by adding the cost of capital asset 
  6.36  acquisitions to its allowable appraised value.  
  7.1      The commissioner shall also annually index each nursing 
  7.2   facility's allowable appraised value by the inflation index 
  7.3   referenced in subdivision 3f, paragraph (a), for the purpose of 
  7.4   computing the nursing facility's annual rental rate.  In 
  7.5   annually adjusting the nursing facility's appraised value, the 
  7.6   commissioner must not include the historical cost of capital 
  7.7   assets acquired during the reporting year in the nursing 
  7.8   facility's appraised value. 
  7.9      In addition, the nursing facility's appraised value must be 
  7.10  reduced by the historical cost of capital asset disposals or 
  7.11  applicable credits such as public grants and insurance 
  7.12  proceeds.  Capital asset additions and disposals must be 
  7.13  reported on the nursing facility's annual cost report in the 
  7.14  reporting year of acquisition or disposal.  The incremental 
  7.15  increase in the nursing facility's rental rate resulting from 
  7.16  this annual adjustment as determined under Minnesota Rules, 
  7.17  parts 9549.0010 to 9549.0080, and this section shall be added to 
  7.18  the nursing facility's property-related payment rate for the 
  7.19  rate year following the reporting year.  
  7.20     Sec. 9.  Minnesota Statutes 1996, section 256B.50, 
  7.21  subdivision 1, is amended to read: 
  7.22     Subdivision 1.  [SCOPE.] A provider may appeal from a 
  7.23  determination of a payment rate established pursuant to this 
  7.24  chapter and reimbursement rules of the commissioner if the 
  7.25  appeal, if successful, would result in a change to the 
  7.26  provider's payment rate or to the calculation of maximum charges 
  7.27  to therapy vendors as provided by section 256B.433, subdivision 
  7.28  3.  Appeals must be filed in accordance with procedures in this 
  7.29  section.  This section does not apply to a request from a 
  7.30  resident or ~~nursing~~ long-term care facility for reconsideration 
  7.31  of the classification of a resident under section 144.0722 or 
  7.32  144.0723.  
  7.33     Sec. 10.  Minnesota Statutes 1996, section 256B.50, 
  7.34  subdivision 1b, is amended to read: 
  7.35     Subd. 1b.  [FILING AN APPEAL.] To appeal, the provider 
  7.36  shall file with the commissioner a written notice of appeal; the 
  8.1   appeal must be postmarked or received by the commissioner within 
  8.2   60 days of the date the determination of the payment rate was 
  8.3   mailed or personally received by a provider, whichever is 
  8.4   earlier.  The notice of appeal must specify each disputed item; 
  8.5   the reason for the dispute; the total dollar amount in dispute 
  8.6   for each separate disallowance, allocation, or adjustment of 
  8.7   each cost item or part of a cost item; the computation that the 
  8.8   provider believes is correct; the authority in statute or rule 
  8.9   upon which the provider relies for each disputed item; the name 
  8.10  and address of the person or firm with whom contacts may be made 
  8.11  regarding the appeal; and other information required by the 
  8.12  commissioner.  ~~The commissioner shall review an appeal by a~~ 
  8.13  ~~nursing facility, if the appeal was sent by certified mail and~~ 
  8.14  ~~postmarked prior to August 1, 1991, and would have been received~~ 
  8.15  ~~by the commissioner within the 60-day deadline if it had not~~ 
  8.16  ~~been delayed due to an error by the postal service.~~ 
  8.17     Sec. 11.  Minnesota Statutes 1996, section 256B.50, 
  8.18  subdivision 1c, is amended to read: 
  8.19     Subd. 1c.  [CONTESTED CASE PROCEDURES APPEALS REVIEW 
  8.20  PROCESS.] ~~Except as provided in subdivision 2, the appeal~~ (a) 
  8.21  Effective for desk audit appeals for rate years beginning on or 
  8.22  after July 1, 1997, and for field audit appeals filed on or 
  8.23  after that date, the commissioner shall review appeals and issue 
  8.24  a written appeal determination on each appealed item within one 
  8.25  year of the due date of the appeal.  Upon mutual agreement, the 
  8.26  commissioner and the provider may extend the time for issuing a 
  8.27  determination for a specified period.  The commissioner shall 
  8.28  notify the provider by first class mail of the appeal 
  8.29  determination.  The appeal determination takes effect 30 days 
  8.30  following the date of issuance specified in the determination. 
  8.31     (b) In reviewing the appeal, the commissioner may request 
  8.32  additional written or oral information from the provider.  The 
  8.33  provider has the right to present information by telephone or in 
  8.34  person concerning the appeal to the commissioner prior to the 
  8.35  issuance of the appeal determination if a conference is 
  8.36  requested within six months of the date the appeal was received 
  9.1   by the commissioner.  Written requests must be submitted 
  9.2   separately from the appeal letter.  Statements made during the 
  9.3   review process are not admissible in a contested case hearing 
  9.4   absent an express stipulation by the parties to the contested 
  9.5   case. 
  9.6      (c) For an appeal item on which the provider disagrees with 
  9.7   the appeal determination, the provider may file with the 
  9.8   commissioner a written demand for a contested case hearing to 
  9.9   determine the proper resolution of specified appeal items.  The 
  9.10  demand must be postmarked or received by the commissioner within 
  9.11  30 days of the date of issuance specified in the determination.  
  9.12  A contested case demand for an appeal item nullifies the written 
  9.13  appeal determination issued by the commissioner for that appeal 
  9.14  item. 
  9.15     (d) A contested case hearing must be heard by an 
  9.16  administrative law judge according to sections 14.48 to 14.56.  
  9.17  In any proceeding under this section, the appealing party must 
  9.18  demonstrate by a preponderance of the evidence that the 
  9.19  ~~commissioner's~~ determination of a payment rate is incorrect.  
  9.20     (e) Regardless of any rate appeal, the rate established 
  9.21  must be the rate paid and must remain in effect until final 
  9.22  resolution of the appeal or subsequent desk or field audit 
  9.23  adjustment~~, notwithstanding any provision of law or rule to the~~ 
  9.24  ~~contrary~~.  
  9.25     (f) To challenge the validity of rules established by the 
  9.26  commissioner pursuant to this section and sections 256B.41, 
  9.27  256B.421, 256B.431, 256B.47, 256B.48, 256B.501, and 256B.502, a 
  9.28  provider shall comply with section 14.44. 
  9.29     (g) The commissioner has discretion to issue to the 
  9.30  provider a proposed resolution for specified appeal items.  The 
  9.31  proposed resolution is final upon written acceptance by the 
  9.32  provider within 30 days of the date the proposed resolution was 
  9.33  mailed to or personally received by the provider, whichever is 
  9.34  earlier.  
  9.35     (h) The commissioner may use the procedures described in 
  9.36  this subdivision to resolve appeals filed prior to July 1, 1997. 
 10.1      Sec. 12.  Minnesota Statutes 1996, section 256B.50, 
 10.2   subdivision 1f, is amended to read: 
 10.3      Subd. 1f.  [LEGAL AND RELATED EXPENSES.] Legal and related 
 10.4   expenses for unresolved challenges to decisions by governmental 
 10.5   agencies shall be separately identified and explained on the 
 10.6   provider's cost report for each year in which the expenses are 
 10.7   incurred.  When the challenge is resolved in favor of the 
 10.8   governmental agency, the provider shall notify the department of 
 10.9   the extent to which its challenge was unsuccessful or the cost 
 10.10  report filed for the reporting year in which the challenge was 
 10.11  resolved.  In addition, the provider shall inform the department 
 10.12  of the years in which it claimed legal and related expenses and 
 10.13  the amount of the expenses claimed in each year relating to the 
 10.14  unsuccessful challenge.  The department shall reduce the 
 10.15  provider's medical assistance rate in the ~~subsequent~~ rate year 
 10.16  subsequent to the resolution of the challenge by the total 
 10.17  amount claimed by the provider for legal and related expenses 
 10.18  incurred in an unsuccessful challenge to a decision by a 
 10.19  governmental agency. 
 10.20     Sec. 13.  Minnesota Statutes 1996, section 256D.01, 
 10.21  subdivision 1a, is amended to read: 
 10.22     Subd. 1a.  [STANDARDS.] (a) A principal objective in 
 10.23  providing general assistance is to provide for persons 
 10.24  ineligible for federal programs who are unable to provide for 
 10.25  themselves.  The minimum standard of assistance determines the 
 10.26  total amount of the general assistance grant without separate 
 10.27  standards for shelter, utilities, or other needs. 
 10.28     (b) The commissioner shall set the standard of assistance 
 10.29  for an assistance unit consisting of an adult recipient who is 
 10.30  childless and unmarried or living apart from children and spouse 
 10.31  and who does not live with a parent or parents or a legal 
 10.32  custodian.  When the other standards specified in this 
 10.33  subdivision increase, this standard must also be increased by 
 10.34  the same percentage. 
 10.35     (c) For an assistance unit consisting of a single adult who 
 10.36  lives with a parent or parents, the general assistance standard 
 11.1   of assistance is the amount that the aid to families with 
 11.2   dependent children standard of assistance would increase if the 
 11.3   recipient were added as an additional minor child to an 
 11.4   assistance unit consisting of the recipient's parent and all of 
 11.5   that parent's family members, except that the standard may not 
 11.6   exceed the standard for a general assistance recipient living 
 11.7   alone.  Benefits received by a responsible relative of the 
 11.8   assistance unit under the supplemental security income program, 
 11.9   a workers' compensation program, the Minnesota supplemental aid 
 11.10  program, or any other program based on the responsible 
 11.11  relative's disability, and any benefits received by a 
 11.12  responsible relative of the assistance unit under the social 
 11.13  security retirement program, may not be counted in the 
 11.14  determination of eligibility or benefit level for the assistance 
 11.15  unit.  Except as provided below, the assistance unit is 
 11.16  ineligible for general assistance if the available resources or 
 11.17  the countable income of the assistance unit and the parent or 
 11.18  parents with whom the assistance unit lives are such that a 
 11.19  family consisting of the assistance unit's parent or parents, 
 11.20  the parent or parents' other family members and the assistance 
 11.21  unit as the only or additional minor child would be financially 
 11.22  ineligible for general assistance.  For the purposes of 
 11.23  calculating the countable income of the assistance unit's parent 
 11.24  or parents, the calculation methods, income deductions, 
 11.25  exclusions, and disregards used when calculating the countable 
 11.26  income for a single adult or childless couple must be used. 
 11.27     (d) For an assistance unit consisting of a childless 
 11.28  couple, the standards of assistance are the same as the first 
 11.29  and second adult standards of the aid to families with dependent 
 11.30  children program.  If one member of the couple is not included 
 11.31  in the general assistance grant, the standard of assistance for 
 11.32  the other is the second adult standard of the aid to families 
 11.33  with dependent children program. 
 11.34     (e) For an assistance unit consisting of all members of a 
 11.35  family, the standards of assistance are the same as the 
 11.36  standards of assistance that apply to a family under the aid to 
 12.1   families with dependent children program if that family had the 
 12.2   same number of parents and children as the assistance unit under 
 12.3   general assistance and if all members of that family were 
 12.4   eligible for the aid to families with dependent children 
 12.5   program.  If one or more members of the family are not included 
 12.6   in the assistance unit for general assistance, the standards of 
 12.7   assistance for the remaining members are the same as the 
 12.8   standards of assistance that apply to an assistance unit 
 12.9   composed of the entire family, less the standards of assistance 
 12.10  for a family of the same number of parents and children as those 
 12.11  members of the family who are not in the assistance unit for 
 12.12  general assistance.  In no case shall the standard for family 
 12.13  members who are in the assistance unit for general assistance, 
 12.14  when combined with the standard for family members who are not 
 12.15  in the general assistance unit, total more than the standard for 
 12.16  the entire family if all members were in an AFDC assistance 
 12.17  unit.  A child may not be excluded from the assistance unit 
 12.18  unless income intended for its benefit is received from a 
 12.19  federally aided categorical assistance program or supplemental 
 12.20  security income.  The income of a child who is excluded from the 
 12.21  assistance unit may not be counted in the determination of 
 12.22  eligibility or benefit level for the assistance unit. 
 12.23     (f) An assistance unit consisting of one or more members of 
 12.24  a family must have its grant determined using the policies and 
 12.25  procedures of the aid to families with dependent children 
 12.26  program, except that, ~~until June 30, 1995,~~ in cases where a 
 12.27  county agency has developed or approved a case plan that 
 12.28  includes reunification with the children, foster care 
 12.29  maintenance payments made under state or local law for a child 
 12.30  who is temporarily absent from the assistance unit must not be 
 12.31  considered income to the child and the payments must not be 
 12.32  counted in the determination of the eligibility or benefit level 
 12.33  of the assistance unit.  Otherwise, the standard of assistance 
 12.34  must be determined according to paragraph (e); the first $50 of 
 12.35  total child support received by an assistance unit in a month 
 12.36  must be excluded and the balance counted as unearned income. 
 13.1      Sec. 14.  Minnesota Statutes 1996, section 257.071, 
 13.2   subdivision 2, is amended to read: 
 13.3      Subd. 2.  [SIX-MONTH REVIEW OF PLACEMENTS.] There shall be 
 13.4   an administrative review of the case plan of each child placed 
 13.5   in a residential facility no later than 180 days after the 
 13.6   initial placement of the child in a residential facility and at 
 13.7   least every six months thereafter if the child is not returned 
 13.8   to the home of the parent or parents within that time.  The case 
 13.9   plan must be monitored and updated at each administrative 
 13.10  review.  As an alternative to the administrative review, the 
 13.11  social service agency responsible for the placement may bring a 
 13.12  petition as provided in section 260.131, subdivision 1a, to the 
 13.13  court for review of the foster care to determine if placement is 
 13.14  in the best interests of the child.  This petition must be 
 13.15  brought to the court within the applicable six months and is not 
 13.16  in lieu of the requirements contained in subdivision 3 or 4.  A 
 13.17  court review conducted pursuant to section 260.191, subdivision 
 13.18  3b, shall satisfy the requirement for an administrative review 
 13.19  so long as the other requirements of this section are met. 
 13.20     Sec. 15.  Minnesota Statutes 1996, section 260.191, 
 13.21  subdivision 3b, is amended to read: 
 13.22     Subd. 3b.  [REVIEW OF COURT ORDERED PLACEMENTS; PERMANENT 
 13.23  PLACEMENT DETERMINATION.] (a) If the court places a child in a 
 13.24  residential facility, as defined in section 257.071, subdivision 
 13.25  1, the court shall conduct a hearing to determine the permanent 
 13.26  status of the child not later than 12 months after the child was 
 13.27  placed out of the home of the parent.  Not later than ten days 
 13.28  prior to this hearing, the responsible social service agency 
 13.29  shall file pleadings to establish the basis for the permanent 
 13.30  placement determination.  Notice of the hearing and copies of 
 13.31  the pleadings must be provided pursuant to section 260.141.  If 
 13.32  a termination of parental rights petition is filed before the 
 13.33  date required for the permanency planning determination, no 
 13.34  hearing need be conducted under this section.  The court shall 
 13.35  determine whether the child is to be returned home or, if not, 
 13.36  what permanent placement is consistent with the child's best 
 14.1   interests.  The "best interests of the child" means all relevant 
 14.2   factors to be considered and evaluated. 
 14.3      If the child is not returned to the home, the dispositions 
 14.4   available for permanent placement determination are: 
 14.5      (1) permanent legal and physical custody to a relative 
 14.6   pursuant to the standards and procedures applicable under 
 14.7   chapter 257 or 518.  The social service agency may petition on 
 14.8   behalf of the proposed custodian; 
 14.9      (2) termination of parental rights and adoption; the social 
 14.10  service agency shall file a petition for termination of parental 
 14.11  rights under section 260.231 and all the requirements of 
 14.12  sections 260.221 to 260.245 remain applicable; or 
 14.13     (3) long-term foster care; transfer of legal custody and 
 14.14  adoption are preferred permanency options for a child who cannot 
 14.15  return home.  The court may order a child into long-term foster 
 14.16  care only if it finds that neither an award of legal and 
 14.17  physical custody to a relative, nor termination of parental 
 14.18  rights nor adoption is in the child's best interests.  Further, 
 14.19  the court may only order long-term foster care for the child 
 14.20  under this section if it finds the following: 
 14.21     (i) the child has reached age 12 and reasonable efforts by 
 14.22  the responsible social service agency have failed to locate an 
 14.23  adoptive family for the child; or 
 14.24     (ii) the child is a sibling of a child described in clause 
 14.25  (i) and the siblings have a significant positive relationship 
 14.26  and are ordered into the same long-term foster care home. 
 14.27     (b) The court may extend the time period for determination 
 14.28  of permanent placement to 18 months after the child was placed 
 14.29  in a residential facility if: 
 14.30     (1) there is a substantial probability that the child will 
 14.31  be returned home within the next six months; 
 14.32     (2) the agency has not made reasonable, or, in the case of 
 14.33  an Indian child, active efforts, to correct the conditions that 
 14.34  form the basis of the out-of-home placement; or 
 14.35     (3) extraordinary circumstances exist precluding a 
 14.36  permanent placement determination, in which case the court shall 
 15.1   make written findings documenting the extraordinary 
 15.2   circumstances and order one subsequent review after six months 
 15.3   to determine permanent placement.  A court finding that 
 15.4   extraordinary circumstances exist precluding a permanent 
 15.5   placement determination must be supported by detailed factual 
 15.6   findings regarding those circumstances. 
 15.7      (c) In ordering a permanent placement of a child, the court 
 15.8   must be governed by the best interests of the child, including a 
 15.9   review of the relationship between the child and relatives and 
 15.10  the child and other important persons with whom the child has 
 15.11  resided or had significant contact. 
 15.12     (d) Once a permanent placement determination has been made 
 15.13  and permanent placement has been established, further court 
 15.14  reviews and dispositional hearings are only necessary if 
 15.15  otherwise required by federal law, an adoption has not yet been 
 15.16  finalized, or there is a disruption of the permanent or 
 15.17  long-term placement.  ~~If required, reviews must take place no~~ 
 15.18  ~~less frequently than every six months.~~ 
 15.19     (e) An order under this subdivision must include the 
 15.20  following detailed findings: 
 15.21     (1) how the child's best interests are served by the order; 
 15.22     (2) the nature and extent of the responsible social service 
 15.23  agency's reasonable efforts, or, in the case of an Indian child, 
 15.24  active efforts, to reunify the child with the parent or parents; 
 15.25     (3) the parent's or parents' efforts and ability to use 
 15.26  services to correct the conditions which led to the out-of-home 
 15.27  placement; 
 15.28     (4) whether the conditions which led to the out-of-home 
 15.29  placement have been corrected so that the child can return home; 
 15.30  and 
 15.31     (5) if the child cannot be returned home, whether there is 
 15.32  a substantial probability of the child being able to return home 
 15.33  in the next six months.  
 15.34     (f) An order for permanent legal and physical custody of a 
 15.35  child may be modified under sections 518.18 and 518.185.  The 
 15.36  social service agency is a party to the proceeding and must 
 16.1   receive notice.  An order for long-term foster care is 
 16.2   reviewable upon motion and a showing by the parent of a 
 16.3   substantial change in the parent's circumstances such that the 
 16.4   parent could provide appropriate care for the child and that 
 16.5   removal of the child from the child's permanent placement and 
 16.6   the return to the parent's care would be in the best interest of 
 16.7   the child. 
 16.8      Sec. 16.  Minnesota Statutes 1996, section 260.192, is 
 16.9   amended to read: 
 16.10     260.192 [DISPOSITIONS; VOLUNTARY FOSTER CARE PLACEMENTS.] 
 16.11     Upon a petition for review of the foster care status of a 
 16.12  child, the court may:  
 16.13     (a) In the case of a petition required to be filed under 
 16.14  section 257.071, subdivision 3, find that the child's needs are 
 16.15  being met, that the child's placement in foster care is in the 
 16.16  best interests of the child, and that the child will be returned 
 16.17  home in the next six months, in which case the court shall 
 16.18  approve the voluntary arrangement and continue the matter for 
 16.19  six months to assure the child returns to the parent's home.  
 16.20     (b) In the case of a petition required to be filed under 
 16.21  section 257.071, subdivision 4, find that the child's needs are 
 16.22  being met and that the child's placement in foster care is in 
 16.23  the best interests of the child, in which case the court shall 
 16.24  approve the voluntary arrangement.  The court shall order the 
 16.25  social service agency responsible for the placement to bring a 
 16.26  petition under section 260.131, subdivision 1 or 1a, as 
 16.27  appropriate, within ~~two years~~ 12 months. 
 16.28     (c) Find that the child's needs are not being met, in which 
 16.29  case the court shall order the social service agency or the 
 16.30  parents to take whatever action is necessary and feasible to 
 16.31  meet the child's needs, including, when appropriate, the 
 16.32  provision by the social service agency of services to the 
 16.33  parents which would enable the child to live at home, and order 
 16.34  a disposition under section 260.191. 
 16.35     (d) Find that the child has been abandoned by parents 
 16.36  financially or emotionally, or that the developmentally disabled 
 17.1   child does not require out-of-home care because of the 
 17.2   handicapping condition, in which case the court shall order the 
 17.3   social service agency to file an appropriate petition pursuant 
 17.4   to sections 260.131, subdivision 1, or 260.231. 
 17.5      Nothing in this section shall be construed to prohibit 
 17.6   bringing a petition pursuant to section 260.131, subdivision 1 
 17.7   or 2, sooner than required by court order pursuant to this 
 17.8   section. 
 17.9      Sec. 17.  Minnesota Statutes 1996, section 260.242, 
 17.10  subdivision 2, is amended to read: 
 17.11     Subd. 2.  [GUARDIAN'S RESPONSIBILITIES.] (a) A guardian 
 17.12  appointed under the provisions of this section has legal custody 
 17.13  of a ward unless the court which appoints the guardian gives 
 17.14  legal custody to some other person.  If the court awards custody 
 17.15  to a person other than the guardian, the guardian nonetheless 
 17.16  has the right and responsibility of reasonable visitation, 
 17.17  except as limited by court order.  
 17.18     (b) The guardian may make major decisions affecting the 
 17.19  person of the ward, including but not limited to giving consent 
 17.20  (when consent is legally required) to the marriage, enlistment 
 17.21  in the armed forces, medical, surgical, or psychiatric 
 17.22  treatment, or adoption of the ward.  When, pursuant to this 
 17.23  section, the commissioner of human services is appointed 
 17.24  guardian, the commissioner may delegate to the local social 
 17.25  services agency of the county in which, after the appointment, 
 17.26  the ward resides, the authority to act for the commissioner in 
 17.27  decisions affecting the person of the ward, including but not 
 17.28  limited to giving consent to the marriage, enlistment in the 
 17.29  armed forces, medical, surgical, or psychiatric treatment of the 
 17.30  ward. 
 17.31     (c) A guardianship created under the provisions of this 
 17.32  section shall not of itself include the guardianship of the 
 17.33  estate of the ward.  
 17.34     (d) If the ward is in foster care, the court shall, upon 
 17.35  its own motion or that of the guardian, conduct a dispositional 
 17.36  hearing within 18 months of the child's initial foster care 
 18.1   placement and once every ~~two years~~ 12 months thereafter to 
 18.2   determine the future status of the ward including, but not 
 18.3   limited to, whether the child should be continued in foster care 
 18.4   for a specified period, should be placed for adoption, or 
 18.5   should, because of the child's special needs or circumstances, 
 18.6   be continued in foster care on a ~~permanent or~~ long-term basis.  
 18.7   ~~When the court has determined that the special needs of the ward~~ 
 18.8   ~~are met through a permanent or long-term foster care placement,~~ 
 18.9   ~~no subsequent dispositional hearings are required.~~  
 18.10     Sec. 18.  Minnesota Statutes 1996, section 382.18, is 
 18.11  amended to read: 
 18.12     382.18 [OFFICIALS NOT TO BE INTERESTED IN CONTRACTS.] 
 18.13     No county official, or deputy or clerk or employee of such 
 18.14  official; and no commissioner for tax-forfeited lands or 
 18.15  commissioner's assistants, shall be directly or indirectly 
 18.16  interested in any contract, work, labor, or business to which 
 18.17  the county is a party or in which it is or may be interested or 
 18.18  in the furnishing of any article to, or the purchase or sale of 
 18.19  any property, real or personal, by, the county, or of which the 
 18.20  consideration, price, or expense is payable from the county 
 18.21  treasury.  Nothing in this section shall prevent a person from 
 18.22  receiving reimbursement from a county for providing licensed or 
 18.23  tribally approved family foster care.  Any violation of the 
 18.24  provisions of this section shall be a gross misdemeanor.  
 18.25     Sec. 19.  [REPEALER.] 
 18.26     Minnesota Statutes 1996, sections 256B.17, subdivisions 1, 
 18.27  2, 3, 4, 5, 6, and 8; and 256B.50, subdivisions 1d, 1g, 1h, and 
 18.28  2, are repealed.