1.1                          A bill for an act 
  1.2             relating to human services; making changes to certain 
  1.3             licensing provisions and continuing care programs; 
  1.4             planning for a pilot program to provide deaf-blind 
  1.5             services; adding certain requirements when reporting 
  1.6             incidents involving a person with mental retardation; 
  1.7             changing provisions for nursing home license 
  1.8             surcharge, case management services, mental health 
  1.9             services, supplemental drug rebate program, personal 
  1.10            care services, preadmission screening, and 
  1.11            miscellaneous provisions; amending Minnesota Statutes 
  1.12            2000, sections 13.41, subdivision 1; 13.46, 
  1.13            subdivision 3; 144.05, by adding a subdivision; 
  1.14            150A.06, by adding a subdivision; 245.462, subdivision 
  1.15            4; 245.4871, subdivision 4; 245.50, subdivisions 1, 2, 
  1.16            5; 245A.02, by adding subdivisions; 245A.035, 
  1.17            subdivision 3; 245A.04, by adding a subdivision; 
  1.18            245B.02, subdivision 10; 245B.05, subdivision 7; 
  1.19            245B.07, subdivision 1; 256.9657, subdivision 1; 
  1.20            256B.0625, by adding a subdivision; 256B.0915, 
  1.21            subdivisions 4, 6, by adding a subdivision; 256B.431, 
  1.22            subdivisions 14, 30; 256B.5012, subdivision 2; 
  1.23            261.063; 626.557, subdivisions 3a, 14; Minnesota 
  1.24            Statutes 2001 Supplement, sections 13.46, subdivisions 
  1.25            1, 4; 144A.071, subdivision 1a; 144A.36, subdivision 
  1.26            1; 149A.90, subdivision 1; 245A.03, subdivision 2; 
  1.27            245A.04, subdivisions 3, 3a, 3b, 3d; 245A.07, 
  1.28            subdivisions 2a, 3; 245A.144; 245A.16, subdivision 1; 
  1.29            256.045, subdivisions 3b, 4; 256B.0625, subdivision 
  1.30            13; 256B.0627, subdivision 10; 256B.0911, subdivisions 
  1.31            4b, 4d; 256B.0913, subdivisions 4, 5, 8, 10, 12, 14; 
  1.32            256B.0915, subdivisions 3, 5; 256B.0924, subdivision 
  1.33            6; 256B.0951, subdivisions 7, 8; 256B.431, 
  1.34            subdivisions 2e, 33; 256B.437, subdivisions 3, 6; 
  1.35            256B.438, subdivision 1; 256B.69, subdivision 5b; 
  1.36            256B.76; 626.556, subdivision 10i; 626.557, 
  1.37            subdivision 9d; proposing coding for new law in 
  1.38            Minnesota Statutes, chapters 245A; 604A; repealing 
  1.39            Minnesota Statutes 2000, section 147B.01, subdivisions 
  1.40            8, 15; Minnesota Statutes 2001 Supplement, section 
  1.41            256B.0621, subdivision 1. 
  1.42  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.43                             ARTICLE 1 
  2.1                              LICENSING 
  2.2      Section 1.  Minnesota Statutes 2000, section 13.41, 
  2.3   subdivision 1, is amended to read: 
  2.4      Subdivision 1.  [DEFINITION.] As used in this section 
  2.5   "licensing agency" means any board, department or agency of this 
  2.6   state which is given the statutory authority to issue 
  2.7   professional or other types of licenses, except the various 
  2.8   agencies primarily administered by the commissioner of human 
  2.9   services.  Data pertaining to persons or agencies licensed or 
  2.10  registered under authority of the commissioner of human services 
  2.11  shall be administered pursuant to section 13.46~~, subdivision 4~~. 
  2.12     Sec. 2.  Minnesota Statutes 2001 Supplement, section 13.46, 
  2.13  subdivision 1, is amended to read: 
  2.14     Subdivision 1.  [DEFINITIONS.] As used in this section: 
  2.15     (a) "Individual" means an individual according to section 
  2.16  13.02, subdivision 8, but does not include a vendor of services. 
  2.17     (b) "Program" includes all programs for which authority is 
  2.18  vested in a component of the welfare system according to statute 
  2.19  or federal law, including, but not limited to, the aid to 
  2.20  families with dependent children program formerly codified in 
  2.21  sections 256.72 to 256.87, Minnesota Family Investment Program, 
  2.22  medical assistance, general assistance, general assistance 
  2.23  medical care, and child support collections.  
  2.24     (c) "Welfare system" includes the department of human 
  2.25  services, local social services agencies, county welfare 
  2.26  agencies, private licensing agencies, the public authority 
  2.27  responsible for child support enforcement, human services 
  2.28  boards, community mental health center boards, state hospitals, 
  2.29  state nursing homes, the ombudsman for mental health and mental 
  2.30  retardation, and persons, agencies, institutions, organizations, 
  2.31  and other entities under contract to any of the above agencies 
  2.32  to the extent specified in the contract. 
  2.33     (d) "Mental health data" means data on individual clients 
  2.34  and patients of community mental health centers, established 
  2.35  under section 245.62, mental health divisions of counties and 
  2.36  other providers under contract to deliver mental health 
  3.1   services, or the ombudsman for mental health and mental 
  3.2   retardation. 
  3.3      (e) "Fugitive felon" means a person who has been convicted 
  3.4   of a felony and who has escaped from confinement or violated the 
  3.5   terms of probation or parole for that offense. 
  3.6      (f) "Private licensing agency" means an agency licensed by 
  3.7   the commissioner of human services under chapter 245A to perform 
  3.8   the duties under section 245A.16. 
  3.9      Sec. 3.  Minnesota Statutes 2000, section 13.46, 
  3.10  subdivision 3, is amended to read: 
  3.11     Subd. 3.  [INVESTIGATIVE DATA.] (a) Data on persons, 
  3.12  including data on vendors of services and data on licensees, 
  3.13  that is collected, maintained, used, or disseminated by the 
  3.14  welfare system in an investigation, authorized by statute and 
  3.15  relating to the enforcement of rules or law, is confidential 
  3.16  data on individuals pursuant to section 13.02, subdivision 3, or 
  3.17  protected nonpublic data not on individuals pursuant to section 
  3.18  13.02, subdivision 13, and shall not be disclosed except: 
  3.19     ~~(a)~~ (1) pursuant to section 13.05; 
  3.20     ~~(b)~~ (2) pursuant to statute or valid court order; 
  3.21     ~~(c)~~ (3) to a party named in a civil or criminal proceeding, 
  3.22  administrative or judicial, for preparation of defense; or 
  3.23     ~~(d)~~ (4) to provide notices required or permitted by statute.
  3.24     The data referred to in this subdivision shall be 
  3.25  classified as public data upon its submission to an 
  3.26  administrative law judge or court in an administrative or 
  3.27  judicial proceeding.  Inactive welfare investigative data shall 
  3.28  be treated as provided in section 13.39, subdivision 3.  
  3.29     (b) Notwithstanding any other provision in law, the 
  3.30  commissioner of human services shall provide all active and 
  3.31  inactive investigative data, including the name of the reporter 
  3.32  of alleged maltreatment under section 626.556 or 626.557, to the 
  3.33  ombudsman for mental health and retardation upon the request of 
  3.34  the ombudsman. 
  3.35     Sec. 4.  Minnesota Statutes 2001 Supplement, section 13.46, 
  3.36  subdivision 4, is amended to read: 
  4.1      Subd. 4.  [LICENSING DATA.] (a) As used in this subdivision:
  4.2      (1) "licensing data" means all data collected, maintained, 
  4.3   used, or disseminated by the welfare system pertaining to 
  4.4   persons licensed or registered or who apply for licensure or 
  4.5   registration or who formerly were licensed or registered under 
  4.6   the authority of the commissioner of human services; 
  4.7      (2) "client" means a person who is receiving services from 
  4.8   a licensee or from an applicant for licensure; and 
  4.9      (3) "personal and personal financial data" means social 
  4.10  security numbers, identity of and letters of reference, 
  4.11  insurance information, reports from the bureau of criminal 
  4.12  apprehension, health examination reports, and social/home 
  4.13  studies. 
  4.14     (b)(1) Except as provided in paragraph (c), the following 
  4.15  data on current and former licensees are public:  name, address, 
  4.16  telephone number of licensees, date of receipt of a completed 
  4.17  application, dates of licensure, licensed capacity, type of 
  4.18  client preferred, variances granted, type of dwelling, name and 
  4.19  relationship of other family members, previous license history, 
  4.20  class of license, and the existence and status of complaints.  
  4.21  When a correction order or fine has been issued, a license is 
  4.22  suspended, immediately suspended, revoked, denied, or made 
  4.23  conditional, or a complaint is resolved, the following data on 
  4.24  current and former licensees are public:  the substance and 
  4.25  investigative findings of the complaint, licensing violation, or 
  4.26  substantiated maltreatment; the record of informal resolution of 
  4.27  a licensing violation; orders of hearing; findings of fact; 
  4.28  conclusions of law; specifications of the final correction 
  4.29  order, fine, suspension, immediate suspension, revocation, 
  4.30  denial, or conditional license contained in the record of 
  4.31  licensing action; and the status of any appeal of these 
  4.32  actions.  When an individual licensee is a substantiated 
  4.33  perpetrator of maltreatment, and the substantiated maltreatment 
  4.34  is a reason for the licensing action, the identity of the 
  4.35  licensee as a perpetrator is public data.  For purposes of this 
  4.36  clause, a person is a substantiated perpetrator if the 
  5.1   maltreatment determination has been upheld under section 
  5.2   626.556, subdivision 10i, 626.557, subdivision 9d, or 256.045, 
  5.3   or an individual or facility has not timely exercised appeal 
  5.4   rights under these sections. 
  5.5      (2) For applicants who withdraw their application prior to 
  5.6   licensure or denial of a license, the following data are 
  5.7   public:  the name of the applicant, the city and county in which 
  5.8   the applicant was seeking licensure, the dates of the 
  5.9   commissioner's receipt of the initial application and completed 
  5.10  application, the type of license sought, and the date of 
  5.11  withdrawal of the application. 
  5.12     (3) For applicants who are denied a license, the following 
  5.13  data are public:  the name of the applicant, the city and county 
  5.14  in which the applicant was seeking licensure, the dates of the 
  5.15  commissioner's receipt of the initial application and completed 
  5.16  application, the type of license sought, the date of denial of 
  5.17  the application, the nature of the basis for the denial, and the 
  5.18  status of any appeal of the denial. 
  5.19     (4) The following data on persons subject to 
  5.20  disqualification under section 245A.04 in connection with a 
  5.21  license to provide family day care for children, child care 
  5.22  center services, foster care for children in the provider's 
  5.23  home, or foster care or day care services for adults in the 
  5.24  provider's home, are public:  the nature of any disqualification 
  5.25  set aside under section 245A.04, subdivision 3b, and the reasons 
  5.26  for setting aside the disqualification; and the reasons for 
  5.27  granting any variance under section 245A.04, subdivision 9. 
  5.28     (5) When maltreatment is substantiated under section 
  5.29  626.556 or 626.557 and the victim and the substantiated 
  5.30  perpetrator are affiliated with a program licensed under chapter 
  5.31  245A, the commissioner of human services, local social services 
  5.32  agency, or county welfare agency may inform the license holder 
  5.33  where the maltreatment occurred of the identity of the 
  5.34  substantiated perpetrator and the victim. 
  5.35     (c) The following are private data on individuals under 
  5.36  section 13.02, subdivision 12, or nonpublic data under section 
  6.1   13.02, subdivision 9:  personal and personal financial data on 
  6.2   family day care program and family foster care program 
  6.3   applicants and licensees and their family members who provide 
  6.4   services under the license. 
  6.5      (d) The following are private data on individuals:  the 
  6.6   identity of persons who have made reports concerning licensees 
  6.7   or applicants that appear in inactive investigative data, and 
  6.8   the records of clients or employees of the licensee or applicant 
  6.9   for licensure whose records are received by the licensing agency 
  6.10  for purposes of review or in anticipation of a contested 
  6.11  matter.  The names of reporters under sections 626.556 and 
  6.12  626.557 may be disclosed only as provided in section 626.556, 
  6.13  subdivision 11, or 626.557, subdivision 12b. 
  6.14     (e) Data classified as private, confidential, nonpublic, or 
  6.15  protected nonpublic under this subdivision become public data if 
  6.16  submitted to a court or administrative law judge as part of a 
  6.17  disciplinary proceeding in which there is a public hearing 
  6.18  concerning a license which has been suspended, immediately 
  6.19  suspended, revoked, or denied. 
  6.20     (f) Data generated in the course of licensing 
  6.21  investigations that relate to an alleged violation of law are 
  6.22  investigative data under subdivision 3. 
  6.23     (g) Data that are not public data collected, maintained, 
  6.24  used, or disseminated under this subdivision that relate to or 
  6.25  are derived from a report as defined in section 626.556, 
  6.26  subdivision 2, or 626.5572, subdivision 18, are subject to the 
  6.27  destruction provisions of sections 626.556, subdivision 11c, and 
  6.28  626.557, subdivision 12b.  
  6.29     (h) Upon request, not public data collected, maintained, 
  6.30  used, or disseminated under this subdivision that relate to or 
  6.31  are derived from a report of substantiated maltreatment as 
  6.32  defined in section 626.556 or 626.557 may be exchanged with the 
  6.33  department of health for purposes of completing background 
  6.34  studies pursuant to section 144.057 and with the department of 
  6.35  corrections for purposes of completing background studies 
  6.36  pursuant to section 241.021. 
  7.1      (i) Data on individuals collected according to licensing 
  7.2   activities under chapter 245A, and data on individuals collected 
  7.3   by the commissioner of human services according to maltreatment 
  7.4   investigations under sections 626.556 and 626.557, may be shared 
  7.5   with the department of human rights, the department of health, 
  7.6   the department of corrections, the ombudsman for mental health 
  7.7   and retardation, and the individual's professional regulatory 
  7.8   board when there is reason to believe that laws or standards 
  7.9   under the jurisdiction of those agencies may have been violated. 
  7.10     (j) In addition to the notice of determinations required 
  7.11  under section 626.556, subdivision 10f, if the commissioner or 
  7.12  the local social services agency has determined that an 
  7.13  individual is a substantiated perpetrator of maltreatment of a 
  7.14  child based on sexual abuse, as defined in section 626.556, 
  7.15  subdivision 2, and the commissioner or local social services 
  7.16  agency knows that the individual is a person responsible for a 
  7.17  child's care in another facility, the commissioner or local 
  7.18  social services agency shall notify the head of that facility of 
  7.19  this determination.  The notification must include an 
  7.20  explanation of the individual's available appeal rights and the 
  7.21  status of any appeal.  If a notice is given under this 
  7.22  paragraph, the government entity making the notification shall 
  7.23  provide a copy of the notice to the individual who is the 
  7.24  subject of the notice. 
  7.25     Sec. 5.  Minnesota Statutes 2000, section 245A.02, is 
  7.26  amended by adding a subdivision to read: 
  7.27     Subd. 2a.  [ADULT DAY CARE.] "Adult day care" means a 
  7.28  program operating less than 24 hours per day that provides 
  7.29  functionally impaired adults with an individualized and 
  7.30  coordinated set of services including health services, social 
  7.31  services, and nutritional services that are directed at 
  7.32  maintaining or improving the participants' capabilities for 
  7.33  self-care.  Adult day care does not include programs where 
  7.34  adults gather or congregate primarily for purposes of 
  7.35  socialization, education, supervision, caregiver respite, 
  7.36  religious expression, exercise, or nutritious meals. 
  8.1      Sec. 6.  Minnesota Statutes 2000, section 245A.02, is 
  8.2   amended by adding a subdivision to read: 
  8.3      Subd. 2b.  [ANNUAL OR ANNUALLY.] "Annual" or "annually" 
  8.4   means prior to or within the same month of the subsequent 
  8.5   calendar year. 
  8.6      Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  8.7   245A.03, subdivision 2, is amended to read: 
  8.8      Subd. 2.  [EXCLUSION FROM LICENSURE.] (a) This chapter does 
  8.9   not apply to: 
  8.10     (1) residential or nonresidential programs that are 
  8.11  provided to a person by an individual who is related unless the 
  8.12  residential program is a child foster care placement made by a 
  8.13  local social services agency or a licensed child-placing agency, 
  8.14  except as provided in subdivision 2a; 
  8.15     (2) nonresidential programs that are provided by an 
  8.16  unrelated individual to persons from a single related family; 
  8.17     (3) residential or nonresidential programs that are 
  8.18  provided to adults who do not abuse chemicals or who do not have 
  8.19  a chemical dependency, a mental illness, mental retardation or a 
  8.20  related condition, a functional impairment, or a physical 
  8.21  handicap; 
  8.22     (4) sheltered workshops or work activity programs that are 
  8.23  certified by the commissioner of economic security; 
  8.24     (5) programs for children enrolled in kindergarten to the 
  8.25  12th grade and prekindergarten special education in a school as 
  8.26  defined in section 120A.22, subdivision 4, and programs serving 
  8.27  children in combined special education and regular 
  8.28  prekindergarten programs that are operated or assisted by the 
  8.29  commissioner of children, families, and learning; 
  8.30     (6) nonresidential programs primarily for children that 
  8.31  provide care or supervision, without charge for ten or fewer 
  8.32  days a year, and for periods of less than three hours a day 
  8.33  while the child's parent or legal guardian is in the same 
  8.34  building as the nonresidential program or present within another 
  8.35  building that is directly contiguous to the building in which 
  8.36  the nonresidential program is located; 
  9.1      (7) nursing homes or hospitals licensed by the commissioner 
  9.2   of health except as specified under section 245A.02; 
  9.3      (8) board and lodge facilities licensed by the commissioner 
  9.4   of health that provide services for five or more persons whose 
  9.5   primary diagnosis is mental illness who have refused an 
  9.6   appropriate residential program offered by a county agency~~.~~  
  9.7   ~~This exclusion expires on July 1, 1990~~; 
  9.8      (9) homes providing programs for persons placed there by a 
  9.9   licensed agency for legal adoption, unless the adoption is not 
  9.10  completed within two years; 
  9.11     (10) programs licensed by the commissioner of corrections; 
  9.12     (11) recreation programs for children or adults that 
  9.13  operate for fewer than 40 calendar days in a calendar year or 
  9.14  programs operated by a park and recreation board of a city of 
  9.15  the first class whose primary purpose is to provide social and 
  9.16  recreational activities to school age children, provided the 
  9.17  program is approved by the park and recreation board; 
  9.18     (12) programs operated by a school as defined in section 
  9.19  120A.22, subdivision 4, whose primary purpose is to provide 
  9.20  child care to school-age children, provided the program is 
  9.21  approved by the district's school board; 
  9.22     (13) Head Start nonresidential programs which operate for 
  9.23  less than 31 days in each calendar year; 
  9.24     (14) noncertified boarding care homes unless they provide 
  9.25  services for five or more persons whose primary diagnosis is 
  9.26  mental illness or mental retardation; 
  9.27     (15) nonresidential programs for nonhandicapped children 
  9.28  provided for a cumulative total of less than 30 days in any 
  9.29  12-month period; 
  9.30     (16) residential programs for persons with mental illness, 
  9.31  that are located in hospitals, until the commissioner adopts 
  9.32  appropriate rules; 
  9.33     (17) the religious instruction of school-age children; 
  9.34  Sabbath or Sunday schools; or the congregate care of children by 
  9.35  a church, congregation, or religious society during the period 
  9.36  used by the church, congregation, or religious society for its 
 10.1   regular worship; 
 10.2      (18) camps licensed by the commissioner of health under 
 10.3   Minnesota Rules, chapter 4630; 
 10.4      (19) mental health outpatient services for adults with 
 10.5   mental illness or children with emotional disturbance; 
 10.6      (20) residential programs serving school-age children whose 
 10.7   sole purpose is cultural or educational exchange, until the 
 10.8   commissioner adopts appropriate rules; 
 10.9      (21) unrelated individuals who provide out-of-home respite 
 10.10  care services to persons with mental retardation or related 
 10.11  conditions from a single related family for no more than 90 days 
 10.12  in a 12-month period and the respite care services are for the 
 10.13  temporary relief of the person's family or legal representative; 
 10.14     (22) respite care services provided as a home and 
 10.15  community-based service to a person with mental retardation or a 
 10.16  related condition, in the person's primary residence; 
 10.17     (23) community support services programs as defined in 
 10.18  section 245.462, subdivision 6, and family community support 
 10.19  services as defined in section 245.4871, subdivision 17; 
 10.20     (24) the placement of a child by a birth parent or legal 
 10.21  guardian in a preadoptive home for purposes of adoption as 
 10.22  authorized by section 259.47; 
 10.23     (25) settings registered under chapter 144D which provide 
 10.24  home care services licensed by the commissioner of health to 
 10.25  fewer than seven adults; or 
 10.26     (26) consumer-directed community support service funded 
 10.27  under the Medicaid waiver for persons with mental retardation 
 10.28  and related conditions when the individual who provided the 
 10.29  service is:  
 10.30     (i) the same individual who is the direct payee of these 
 10.31  specific waiver funds or paid by a fiscal agent, fiscal 
 10.32  intermediary, or employer of record; and 
 10.33     (ii) not otherwise under the control of a residential or 
 10.34  nonresidential program that is required to be licensed under 
 10.35  this chapter when providing the service. 
 10.36     For purposes of clause (6), a building is directly 
 11.1   contiguous to a building in which a nonresidential program is 
 11.2   located if it shares a common wall with the building in which 
 11.3   the nonresidential program is located or is attached to that 
 11.4   building by skyway, tunnel, atrium, or common roof. 
 11.5      (b) Nothing in this chapter shall be construed to require 
 11.6   licensure for any services provided and funded according to an 
 11.7   approved federal waiver plan where licensure is specifically 
 11.8   identified as not being a condition for the services and funding.
 11.9      Sec. 8.  Minnesota Statutes 2000, section 245A.035, 
 11.10  subdivision 3, is amended to read: 
 11.11     Subd. 3.  [REQUIREMENTS FOR EMERGENCY LICENSE.] Before an 
 11.12  emergency license may be issued, the following requirements must 
 11.13  be met: 
 11.14     (1) the county agency must conduct an initial inspection of 
 11.15  the premises where the foster care is to be provided to ensure 
 11.16  the health and safety of any child placed in the home.  The 
 11.17  county agency shall conduct the inspection using a form 
 11.18  developed by the commissioner; 
 11.19     (2) at the time of the inspection or placement, whichever 
 11.20  is earlier, the relative being considered for an emergency 
 11.21  license shall receive an application form for a child foster 
 11.22  care license; ~~and~~ 
 11.23     (3) whenever possible, prior to placing the child in the 
 11.24  relative's home, the relative being considered for an emergency 
 11.25  license shall provide the information required by section 
 11.26  245A.04, subdivision 3, paragraph (b); and 
 11.27     (4) if the county determines, prior to the issuance of an 
 11.28  emergency license, that anyone requiring a background study is 
 11.29  disqualified under section 245A.04, and the disqualification is 
 11.30  one which the commissioner cannot set aside, an emergency 
 11.31  license shall not be issued. 
 11.32     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
 11.33  245A.04, subdivision 3, is amended to read: 
 11.34     Subd. 3.  [BACKGROUND STUDY OF THE APPLICANT; DEFINITIONS.] 
 11.35  (a) Individuals and organizations that are required in statute 
 11.36  to initiate background studies under this section shall comply 
 12.1   with the following requirements: 
 12.2      (1) Applicants for licensure, license holders, and other 
 12.3   entities as provided in this section must submit completed 
 12.4   background study forms to the commissioner before individuals 
 12.5   specified in paragraph (c), clauses (1) to (4), (6), and (7), 
 12.6   begin positions allowing direct contact in any licensed program. 
 12.7      (2) Applicants and license holders under the jurisdiction 
 12.8   of other state agencies who are required in other statutory 
 12.9   sections to initiate background studies under this section must 
 12.10  submit completed background study forms to the commissioner 
 12.11  prior to the background study subject beginning in a position 
 12.12  allowing direct contact in the licensed program, or where 
 12.13  applicable, prior to being employed. 
 12.14     (3) Organizations required to initiate background studies 
 12.15  under section 256B.0627 for individuals described in paragraph 
 12.16  (c), clause (5), must submit a completed background study form 
 12.17  to the commissioner before those individuals begin a position 
 12.18  allowing direct contact with persons served by the 
 12.19  organization.  The commissioner shall recover the cost of these 
 12.20  background studies through a fee of no more than $12 per study 
 12.21  charged to the organization responsible for submitting the 
 12.22  background study form.  The fees collected under this paragraph 
 12.23  are appropriated to the commissioner for the purpose of 
 12.24  conducting background studies.  
 12.25     Upon receipt of the background study forms from the 
 12.26  entities in clauses (1) to (3), the commissioner shall complete 
 12.27  the background study as specified under this section and provide 
 12.28  notices required in subdivision 3a.  Unless otherwise specified, 
 12.29  the subject of a background study may have direct contact with 
 12.30  persons served by a program after the background study form is 
 12.31  mailed or submitted to the commissioner pending notification of 
 12.32  the study results under subdivision 3a.  A county agency may 
 12.33  accept a background study completed by the commissioner under 
 12.34  this section in place of the background study required under 
 12.35  section 245A.16, subdivision 3, in programs with joint licensure 
 12.36  as home and community-based services and adult foster care for 
 13.1   people with developmental disabilities when the license holder 
 13.2   does not reside in the foster care residence and the subject of 
 13.3   the study has been continuously affiliated with the license 
 13.4   holder since the date of the commissioner's study. 
 13.5      (b) The definitions in this paragraph apply only to 
 13.6   subdivisions 3 to 3e. 
 13.7      (1) "Background study" means the review of records 
 13.8   conducted by the commissioner to determine whether a subject is 
 13.9   disqualified from direct contact with persons served by a 
 13.10  program, and where specifically provided in statutes, whether a 
 13.11  subject is disqualified from having access to persons served by 
 13.12  a program. 
 13.13     (2) "Continuous, direct supervision" means an individual is 
 13.14  within sight or hearing of the supervising person to the extent 
 13.15  that supervising person is capable at all times of intervening 
 13.16  to protect the health and safety of the persons served by the 
 13.17  program. 
 13.18     (3) "Contractor" means any person, regardless of employer, 
 13.19  who is providing program services for hire under the control of 
 13.20  the provider. 
 13.21     (4) "Direct contact" means providing face-to-face care, 
 13.22  training, supervision, counseling, consultation, or medication 
 13.23  assistance to persons served by the program. 
 13.24     (5) "Reasonable cause" means information or circumstances 
 13.25  exist which provide the commissioner with articulable suspicion 
 13.26  that further pertinent information may exist concerning a 
 13.27  subject.  The commissioner has reasonable cause when, but not 
 13.28  limited to, the commissioner has received a report from the 
 13.29  subject, the license holder, or a third party indicating that 
 13.30  the subject has a history that would disqualify the person or 
 13.31  that may pose a risk to the health or safety of persons 
 13.32  receiving services. 
 13.33     (6) "Subject of a background study" means an individual on 
 13.34  whom a background study is required or completed. 
 13.35     (c) The applicant, license holder, registrant under section 
 13.36  144A.71, subdivision 1, bureau of criminal apprehension, 
 14.1   commissioner of health, and county agencies, after written 
 14.2   notice to the individual who is the subject of the study, shall 
 14.3   help with the study by giving the commissioner criminal 
 14.4   conviction data and reports about the maltreatment of adults 
 14.5   substantiated under section 626.557 and the maltreatment of 
 14.6   minors in licensed programs substantiated under section 
 14.7   626.556.  If a background study is initiated by an applicant or 
 14.8   license holder and the applicant or license holder receives 
 14.9   information about a possible criminal or maltreatment history of 
 14.10  an individual who is the subject of a background study, the 
 14.11  applicant or license holder must immediately provide the 
 14.12  information to the commissioner.  The individuals to be studied 
 14.13  shall include: 
 14.14     (1) the applicant; 
 14.15     (2) persons age 13 and over living in the household where 
 14.16  the licensed program will be provided; 
 14.17     (3) current employees or contractors of the applicant who 
 14.18  will have direct contact with persons served by the facility, 
 14.19  agency, or program; 
 14.20     (4) volunteers or student volunteers who have direct 
 14.21  contact with persons served by the program to provide program 
 14.22  services, if the contact is not ~~directly supervised by the~~ 
 14.23  ~~individuals~~ under the continuous, direct supervision by an 
 14.24  individual listed in clause (1) or (3); 
 14.25     (5) any person required under section 256B.0627 to have a 
 14.26  background study completed under this section; 
 14.27     (6) persons ages 10 to 12 living in the household where the 
 14.28  licensed services will be provided when the commissioner has 
 14.29  reasonable cause; and 
 14.30     (7) persons who, without providing direct contact services 
 14.31  at a licensed program, may have unsupervised access to children 
 14.32  or vulnerable adults receiving services from the program 
 14.33  licensed to provide family child care for children, foster care 
 14.34  for children in the provider's own home, or foster care or day 
 14.35  care services for adults in the provider's own home when the 
 14.36  commissioner has reasonable cause. 
 15.1      (d) According to paragraph (c), clauses (2) and (6), the 
 15.2   commissioner shall review records from the juvenile courts.  For 
 15.3   persons under paragraph (c), clauses (1), (3), (4), (5), and 
 15.4   (7), who are ages 13 to 17, the commissioner shall review 
 15.5   records from the juvenile courts when the commissioner has 
 15.6   reasonable cause.  The juvenile courts shall help with the study 
 15.7   by giving the commissioner existing juvenile court records on 
 15.8   individuals described in paragraph (c), clauses (2), (6), and 
 15.9   (7), relating to delinquency proceedings held within either the 
 15.10  five years immediately preceding the background study or the 
 15.11  five years immediately preceding the individual's 18th birthday, 
 15.12  whichever time period is longer.  The commissioner shall destroy 
 15.13  juvenile records obtained pursuant to this subdivision when the 
 15.14  subject of the records reaches age 23. 
 15.15     (e) Beginning August 1, 2001, the commissioner shall 
 15.16  conduct all background studies required under this chapter and 
 15.17  initiated by supplemental nursing services agencies registered 
 15.18  under section 144A.71, subdivision 1.  Studies for the agencies 
 15.19  must be initiated annually by each agency.  The commissioner 
 15.20  shall conduct the background studies according to this chapter.  
 15.21  The commissioner shall recover the cost of the background 
 15.22  studies through a fee of no more than $8 per study, charged to 
 15.23  the supplemental nursing services agency.  The fees collected 
 15.24  under this paragraph are appropriated to the commissioner for 
 15.25  the purpose of conducting background studies. 
 15.26     (f) For purposes of this section, a finding that a 
 15.27  delinquency petition is proven in juvenile court shall be 
 15.28  considered a conviction in state district court. 
 15.29     (g) A study of an individual in paragraph (c), clauses (1) 
 15.30  to (7), shall be conducted at least upon application for initial 
 15.31  license for all license types or registration under section 
 15.32  144A.71, subdivision 1, and at reapplication for a license ~~or~~ 
 15.33  ~~registration~~ for family child care, child foster care, and adult 
 15.34  foster care.  The commissioner is not required to conduct a 
 15.35  study of an individual at the time of reapplication for a 
 15.36  license or if the individual has been continuously affiliated 
 16.1   with a foster care provider licensed by the commissioner of 
 16.2   human services and registered under chapter 144D, other than a 
 16.3   family day care or foster care license, if:  (i) a study of the 
 16.4   individual was conducted either at the time of initial licensure 
 16.5   or when the individual became affiliated with the license 
 16.6   holder; (ii) the individual has been continuously affiliated 
 16.7   with the license holder since the last study was conducted; and 
 16.8   (iii) the procedure described in paragraph (j) has been 
 16.9   implemented and was in effect continuously since the last study 
 16.10  was conducted.  For the purposes of this section, a physician 
 16.11  licensed under chapter 147 is considered to be continuously 
 16.12  affiliated upon the license holder's receipt from the 
 16.13  commissioner of health or human services of the physician's 
 16.14  background study results.  For individuals who are required to 
 16.15  have background studies under paragraph (c) and who have been 
 16.16  continuously affiliated with a foster care provider that is 
 16.17  licensed in more than one county, criminal conviction data may 
 16.18  be shared among those counties in which the foster care programs 
 16.19  are licensed.  A county agency's receipt of criminal conviction 
 16.20  data from another county agency shall meet the criminal data 
 16.21  background study requirements of this section. 
 16.22     (h) The commissioner may also conduct studies on 
 16.23  individuals specified in paragraph (c), clauses (3) and (4), 
 16.24  when the studies are initiated by: 
 16.25     (i) personnel pool agencies; 
 16.26     (ii) temporary personnel agencies; 
 16.27     (iii) educational programs that train persons by providing 
 16.28  direct contact services in licensed programs; and 
 16.29     (iv) professional services agencies that are not licensed 
 16.30  and which contract with licensed programs to provide direct 
 16.31  contact services or individuals who provide direct contact 
 16.32  services. 
 16.33     (i) Studies on individuals in paragraph (h), items (i) to 
 16.34  (iv), must be initiated annually by these agencies, programs, 
 16.35  and individuals.  Except as provided in paragraph (a), clause 
 16.36  (3), no applicant, license holder, or individual who is the 
 17.1   subject of the study shall pay any fees required to conduct the 
 17.2   study. 
 17.3      (1) At the option of the licensed facility, rather than 
 17.4   initiating another background study on an individual required to 
 17.5   be studied who has indicated to the licensed facility that a 
 17.6   background study by the commissioner was previously completed, 
 17.7   the facility may make a request to the commissioner for 
 17.8   documentation of the individual's background study status, 
 17.9   provided that: 
 17.10     (i) the facility makes this request using a form provided 
 17.11  by the commissioner; 
 17.12     (ii) in making the request the facility informs the 
 17.13  commissioner that either: 
 17.14     (A) the individual has been continuously affiliated with a 
 17.15  licensed facility since the individual's previous background 
 17.16  study was completed, or since October 1, 1995, whichever is 
 17.17  shorter; or 
 17.18     (B) the individual is affiliated only with a personnel pool 
 17.19  agency, a temporary personnel agency, an educational program 
 17.20  that trains persons by providing direct contact services in 
 17.21  licensed programs, or a professional services agency that is not 
 17.22  licensed and which contracts with licensed programs to provide 
 17.23  direct contact services or individuals who provide direct 
 17.24  contact services; and 
 17.25     (iii) the facility provides notices to the individual as 
 17.26  required in paragraphs (a) to (j), and that the facility is 
 17.27  requesting written notification of the individual's background 
 17.28  study status from the commissioner.  
 17.29     (2) The commissioner shall respond to each request under 
 17.30  paragraph (1) with a written or electronic notice to the 
 17.31  facility and the study subject.  If the commissioner determines 
 17.32  that a background study is necessary, the study shall be 
 17.33  completed without further request from a licensed agency or 
 17.34  notifications to the study subject.  
 17.35     (3) When a background study is being initiated by a 
 17.36  licensed facility or a foster care provider that is also 
 18.1   registered under chapter 144D, a study subject affiliated with 
 18.2   multiple licensed facilities may attach to the background study 
 18.3   form a cover letter indicating the additional facilities' names, 
 18.4   addresses, and background study identification numbers.  When 
 18.5   the commissioner receives such notices, each facility identified 
 18.6   by the background study subject shall be notified of the study 
 18.7   results.  The background study notice sent to the subsequent 
 18.8   agencies shall satisfy those facilities' responsibilities for 
 18.9   initiating a background study on that individual. 
 18.10     (j) If an individual who is affiliated with a program or 
 18.11  facility regulated by the department of human services or 
 18.12  department of health or who is affiliated with any type of home 
 18.13  care agency or provider of personal care assistance services, is 
 18.14  convicted of a crime constituting a disqualification under 
 18.15  subdivision 3d, the probation officer or corrections agent shall 
 18.16  notify the commissioner of the conviction.  For the purpose of 
 18.17  this paragraph, "conviction" has the meaning given it in section 
 18.18  609.02, subdivision 5.  The commissioner, in consultation with 
 18.19  the commissioner of corrections, shall develop forms and 
 18.20  information necessary to implement this paragraph and shall 
 18.21  provide the forms and information to the commissioner of 
 18.22  corrections for distribution to local probation officers and 
 18.23  corrections agents.  The commissioner shall inform individuals 
 18.24  subject to a background study that criminal convictions for 
 18.25  disqualifying crimes will be reported to the commissioner by the 
 18.26  corrections system.  A probation officer, corrections agent, or 
 18.27  corrections agency is not civilly or criminally liable for 
 18.28  disclosing or failing to disclose the information required by 
 18.29  this paragraph.  Upon receipt of disqualifying information, the 
 18.30  commissioner shall provide the notifications required in 
 18.31  subdivision 3a, as appropriate to agencies on record as having 
 18.32  initiated a background study or making a request for 
 18.33  documentation of the background study status of the individual.  
 18.34  This paragraph does not apply to family day care and child 
 18.35  foster care programs. 
 18.36     (k) The individual who is the subject of the study must 
 19.1   provide the applicant or license holder with sufficient 
 19.2   information to ensure an accurate study including the 
 19.3   individual's first, middle, and last name and all other names by 
 19.4   which the individual has been known; home address, city, county, 
 19.5   and state of residence for the past five years; zip code; sex; 
 19.6   date of birth; and driver's license number or state 
 19.7   identification number.  The applicant or license holder shall 
 19.8   provide this information about an individual in paragraph (c), 
 19.9   clauses (1) to (7), on forms prescribed by the commissioner.  By 
 19.10  January 1, 2000, for background studies conducted by the 
 19.11  department of human services, the commissioner shall implement a 
 19.12  system for the electronic transmission of:  (1) background study 
 19.13  information to the commissioner; and (2) background study 
 19.14  results to the license holder.  The commissioner may request 
 19.15  additional information of the individual, which shall be 
 19.16  optional for the individual to provide, such as the individual's 
 19.17  social security number or race. 
 19.18     (l) For programs directly licensed by the commissioner, a 
 19.19  study must include information related to names of substantiated 
 19.20  perpetrators of maltreatment of vulnerable adults that has been 
 19.21  received by the commissioner as required under section 626.557, 
 19.22  subdivision 9c, paragraph (i), and the commissioner's records 
 19.23  relating to the maltreatment of minors in licensed programs, 
 19.24  information from juvenile courts as required in paragraph (c) 
 19.25  for persons listed in paragraph (c), clauses (2), (6), and (7), 
 19.26  and information from the bureau of criminal apprehension.  For 
 19.27  child foster care, adult foster care, and family day care homes, 
 19.28  the study must include information from the county agency's 
 19.29  record of substantiated maltreatment of adults, and the 
 19.30  maltreatment of minors, information from juvenile courts as 
 19.31  required in paragraph (c) for persons listed in paragraph (c), 
 19.32  clauses (2), (6), and (7), and information from the bureau of 
 19.33  criminal apprehension.  The commissioner may also review arrest 
 19.34  and investigative information from the bureau of criminal 
 19.35  apprehension, the commissioner of health, a county attorney, 
 19.36  county sheriff, county agency, local chief of police, other 
 20.1   states, the courts, or the Federal Bureau of Investigation if 
 20.2   the commissioner has reasonable cause to believe the information 
 20.3   is pertinent to the disqualification of an individual listed in 
 20.4   paragraph (c), clauses (1) to (7).  The commissioner is not 
 20.5   required to conduct more than one review of a subject's records 
 20.6   from the Federal Bureau of Investigation if a review of the 
 20.7   subject's criminal history with the Federal Bureau of 
 20.8   Investigation has already been completed by the commissioner and 
 20.9   there has been no break in the subject's affiliation with the 
 20.10  license holder who initiated the background study. 
 20.11     (m) When the commissioner has reasonable cause to believe 
 20.12  that further pertinent information may exist on the subject, the 
 20.13  subject shall provide a set of classifiable fingerprints 
 20.14  obtained from an authorized law enforcement agency.  For 
 20.15  purposes of requiring fingerprints, the commissioner shall be 
 20.16  considered to have reasonable cause under, but not limited to, 
 20.17  the following circumstances: 
 20.18     (1) information from the bureau of criminal apprehension 
 20.19  indicates that the subject is a multistate offender; 
 20.20     (2) information from the bureau of criminal apprehension 
 20.21  indicates that multistate offender status is undetermined; or 
 20.22     (3) the commissioner has received a report from the subject 
 20.23  or a third party indicating that the subject has a criminal 
 20.24  history in a jurisdiction other than Minnesota. 
 20.25     (n) The failure or refusal of an applicant, license holder, 
 20.26  or registrant under section 144A.71, subdivision 1, to cooperate 
 20.27  with the commissioner is reasonable cause to disqualify a 
 20.28  subject, deny a license application or immediately suspend, 
 20.29  suspend, or revoke a license or registration.  Failure or 
 20.30  refusal of an individual to cooperate with the study is just 
 20.31  cause for denying or terminating employment of the individual if 
 20.32  the individual's failure or refusal to cooperate could cause the 
 20.33  applicant's application to be denied or the license holder's 
 20.34  license to be immediately suspended, suspended, or revoked. 
 20.35     (o) The commissioner shall not consider an application to 
 20.36  be complete until all of the information required to be provided 
 21.1   under this subdivision has been received.  
 21.2      (p) No person in paragraph (c), clauses (1) to (7), who is 
 21.3   disqualified as a result of this section may be retained by the 
 21.4   agency in a position involving direct contact with persons 
 21.5   served by the program ~~or in a position allowing~~ and no person in 
 21.6   paragraph (c), clauses (2), (6), and (7), or as provided 
 21.7   elsewhere in statute who is disqualified as a result of this 
 21.8   section may be allowed access to persons served by the 
 21.9   program ~~as provided for in statutes~~, unless the commissioner has 
 21.10  provided written notice to the agency stating that: 
 21.11     (1) the individual may remain in direct contact during the 
 21.12  period in which the individual may request reconsideration as 
 21.13  provided in subdivision 3a, paragraph (b), clause (2) or (3); 
 21.14     (2) the individual's disqualification has been set aside 
 21.15  for that agency as provided in subdivision 3b, paragraph (b); or 
 21.16     (3) the license holder has been granted a variance for the 
 21.17  disqualified individual under subdivision 3e. 
 21.18     (q) Termination of affiliation with persons in paragraph 
 21.19  (c), clauses (1) to (7), made in good faith reliance on a notice 
 21.20  of disqualification provided by the commissioner shall not 
 21.21  subject the applicant or license holder to civil liability. 
 21.22     (r) The commissioner may establish records to fulfill the 
 21.23  requirements of this section. 
 21.24     (s) The commissioner may not disqualify an individual 
 21.25  subject to a study under this section because that person has, 
 21.26  or has had, a mental illness as defined in section 245.462, 
 21.27  subdivision 20. 
 21.28     (t) An individual subject to disqualification under this 
 21.29  subdivision has the applicable rights in subdivision 3a, 3b, or 
 21.30  3c. 
 21.31     (u) For the purposes of background studies completed by 
 21.32  tribal organizations performing licensing activities otherwise 
 21.33  required of the commissioner under this chapter, after obtaining 
 21.34  consent from the background study subject, tribal licensing 
 21.35  agencies shall have access to criminal history data in the same 
 21.36  manner as county licensing agencies and private licensing 
 22.1   agencies under this chapter. 
 22.2      Sec. 10.  Minnesota Statutes 2001 Supplement, section 
 22.3   245A.04, subdivision 3a, is amended to read: 
 22.4      Subd. 3a.  [NOTIFICATION TO SUBJECT AND LICENSE HOLDER OF 
 22.5   STUDY RESULTS; DETERMINATION OF RISK OF HARM.] (a) Within 15 
 22.6   working days, the commissioner shall notify the applicant, 
 22.7   license holder, or registrant under section 144A.71, subdivision 
 22.8   1, and the individual who is the subject of the study, in 
 22.9   writing or by electronic transmission, of the results of the 
 22.10  study or that more time is needed to complete the study.  When 
 22.11  the study is completed, a notice that the study was undertaken 
 22.12  and completed shall be maintained in the personnel files of the 
 22.13  program.  For studies on individuals pertaining to a license to 
 22.14  provide family day care or group family day care, foster care 
 22.15  for children in the provider's own home, or foster care or day 
 22.16  care services for adults in the provider's own home, the 
 22.17  commissioner is not required to provide a separate notice of the 
 22.18  background study results to the individual who is the subject of 
 22.19  the study unless the study results in a disqualification of the 
 22.20  individual. 
 22.21     The commissioner shall notify the individual studied if the 
 22.22  information in the study indicates the individual is 
 22.23  disqualified from direct contact with persons served by the 
 22.24  program.  The commissioner shall disclose the information 
 22.25  causing disqualification and instructions on how to request a 
 22.26  reconsideration of the disqualification to the individual 
 22.27  studied.  An applicant or license holder who is not the subject 
 22.28  of the study shall be informed that the commissioner has found 
 22.29  information that disqualifies the subject from direct contact 
 22.30  with persons served by the program.  However, only the 
 22.31  individual studied must be informed of the information contained 
 22.32  in the subject's background study unless the basis for the 
 22.33  disqualification is failure to cooperate, substantiated 
 22.34  maltreatment under section 626.556 or 626.557, the Data 
 22.35  Practices Act provides for release of the information, or the 
 22.36  individual studied authorizes the release of the information.  
 23.1   When a disqualification is based on the subject's failure to 
 23.2   cooperate with the background study or substantiated 
 23.3   maltreatment under section 626.556 or 626.557, the agency that 
 23.4   initiated the study shall be informed by the commissioner of the 
 23.5   reason for the disqualification. 
 23.6      (b) Except as provided in subdivision 3d, paragraph (b), if 
 23.7   the commissioner determines that the individual studied has a 
 23.8   disqualifying characteristic, the commissioner shall review the 
 23.9   information immediately available and make a determination as to 
 23.10  the subject's immediate risk of harm to persons served by the 
 23.11  program where the individual studied will have direct contact.  
 23.12  The commissioner shall consider all relevant information 
 23.13  available, including the following factors in determining the 
 23.14  immediate risk of harm:  the recency of the disqualifying 
 23.15  characteristic; the recency of discharge from probation for the 
 23.16  crimes; the number of disqualifying characteristics; the 
 23.17  intrusiveness or violence of the disqualifying characteristic; 
 23.18  the vulnerability of the victim involved in the disqualifying 
 23.19  characteristic; and the similarity of the victim to the persons 
 23.20  served by the program where the individual studied will have 
 23.21  direct contact.  The commissioner may determine that the 
 23.22  evaluation of the information immediately available gives the 
 23.23  commissioner reason to believe one of the following: 
 23.24     (1) The individual poses an imminent risk of harm to 
 23.25  persons served by the program where the individual studied will 
 23.26  have direct contact.  If the commissioner determines that an 
 23.27  individual studied poses an imminent risk of harm to persons 
 23.28  served by the program where the individual studied will have 
 23.29  direct contact, the individual and the license holder must be 
 23.30  sent a notice of disqualification.  The commissioner shall order 
 23.31  the license holder to immediately remove the individual studied 
 23.32  from direct contact.  The notice to the individual studied must 
 23.33  include an explanation of the basis of this determination. 
 23.34     (2) The individual poses a risk of harm requiring 
 23.35  continuous, direct supervision while providing direct contact 
 23.36  services during the period in which the subject may request a 
 24.1   reconsideration.  If the commissioner determines that an 
 24.2   individual studied poses a risk of harm that requires 
 24.3   continuous, direct supervision, the individual and the license 
 24.4   holder must be sent a notice of disqualification.  The 
 24.5   commissioner shall order the license holder to immediately 
 24.6   remove the individual studied from direct contact services or 
 24.7   assure that the individual studied is ~~within sight or hearing~~ 
 24.8   under the continuous, direct supervision of another staff person 
 24.9   when providing direct contact services during the period in 
 24.10  which the individual may request a reconsideration of the 
 24.11  disqualification.  If the individual studied does not submit a 
 24.12  timely request for reconsideration, or the individual submits a 
 24.13  timely request for reconsideration, but the disqualification is 
 24.14  not set aside for that license holder, the license holder will 
 24.15  be notified of the disqualification and ordered to immediately 
 24.16  remove the individual from any position allowing direct contact 
 24.17  with persons receiving services from the license holder. 
 24.18     (3) The individual does not pose an imminent risk of harm 
 24.19  or a risk of harm requiring continuous, direct supervision while 
 24.20  providing direct contact services during the period in which the 
 24.21  subject may request a reconsideration.  If the commissioner 
 24.22  determines that an individual studied does not pose a risk of 
 24.23  harm that requires continuous, direct supervision, only the 
 24.24  individual must be sent a notice of disqualification.  The 
 24.25  license holder must be sent a notice that more time is needed to 
 24.26  complete the individual's background study.  If the individual 
 24.27  studied submits a timely request for reconsideration, and if the 
 24.28  disqualification is set aside for that license holder, the 
 24.29  license holder will receive the same notification received by 
 24.30  license holders in cases where the individual studied has no 
 24.31  disqualifying characteristic.  If the individual studied does 
 24.32  not submit a timely request for reconsideration, or the 
 24.33  individual submits a timely request for reconsideration, but the 
 24.34  disqualification is not set aside for that license holder, the 
 24.35  license holder will be notified of the disqualification and 
 24.36  ordered to immediately remove the individual from any position 
 25.1   allowing direct contact with persons receiving services from the 
 25.2   license holder.  
 25.3      (c) County licensing agencies performing duties under this 
 25.4   subdivision may develop an alternative system for determining 
 25.5   the subject's immediate risk of harm to persons served by the 
 25.6   program, providing the notices under paragraph (b), and 
 25.7   documenting the action taken by the county licensing agency.  
 25.8   Each county licensing agency's implementation of the alternative 
 25.9   system is subject to approval by the commissioner.  
 25.10  Notwithstanding this alternative system, county licensing 
 25.11  agencies shall complete the requirements of paragraph (a). 
 25.12     Sec. 11.  Minnesota Statutes 2001 Supplement, section 
 25.13  245A.04, subdivision 3b, is amended to read: 
 25.14     Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) The 
 25.15  individual who is the subject of the disqualification may 
 25.16  request a reconsideration of the disqualification.  
 25.17     The individual must submit the request for reconsideration 
 25.18  to the commissioner in writing.  A request for reconsideration 
 25.19  for an individual who has been sent a notice of disqualification 
 25.20  under subdivision 3a, paragraph (b), clause (1) or (2), must be 
 25.21  submitted within 30 calendar days of the disqualified 
 25.22  individual's receipt of the notice of disqualification.  Upon 
 25.23  showing that the information in clause (1) or (2) cannot be 
 25.24  obtained within 30 days, the disqualified individual may request 
 25.25  additional time, not to exceed 30 days, to obtain that 
 25.26  information.  A request for reconsideration for an individual 
 25.27  who has been sent a notice of disqualification under subdivision 
 25.28  3a, paragraph (b), clause (3), must be submitted within 15 
 25.29  calendar days of the disqualified individual's receipt of the 
 25.30  notice of disqualification.  An individual who was determined to 
 25.31  have maltreated a child under section 626.556 or a vulnerable 
 25.32  adult under section 626.557, and who was disqualified under this 
 25.33  section on the basis of serious or recurring maltreatment, may 
 25.34  request reconsideration of both the maltreatment and the 
 25.35  disqualification determinations.  The request for 
 25.36  reconsideration of the maltreatment determination and the 
 26.1   disqualification must be submitted within 30 calendar days of 
 26.2   the individual's receipt of the notice of disqualification.  
 26.3   Removal of a disqualified individual from direct contact shall 
 26.4   be ordered if the individual does not request reconsideration 
 26.5   within the prescribed time, and for an individual who submits a 
 26.6   timely request for reconsideration, if the disqualification is 
 26.7   not set aside.  The individual must present information showing 
 26.8   that: 
 26.9      (1) the information the commissioner relied upon in 
 26.10  determining that the underlying conduct giving rise to the 
 26.11  disqualification occurred, and for maltreatment, that the 
 26.12  maltreatment was serious or recurring, is incorrect ~~or~~ 
 26.13  ~~inaccurate.  If the basis of a reconsideration request is that a~~ 
 26.14  ~~maltreatment determination or disposition under section 626.556~~ 
 26.15  ~~or 626.557 is incorrect, and the commissioner has issued a final~~ 
 26.16  ~~order in an appeal of that determination or disposition under~~ 
 26.17  ~~section 256.045 or 245A.08, subdivision 5, the commissioner's~~ 
 26.18  ~~order is conclusive on the issue of maltreatment.  If the~~ 
 26.19  ~~individual did not request reconsideration of the maltreatment~~ 
 26.20  ~~determination, the maltreatment determination is deemed~~ 
 26.21  ~~conclusive~~; or 
 26.22     (2) the subject of the study does not pose a risk of harm 
 26.23  to any person served by the applicant, license holder, or 
 26.24  registrant under section 144A.71, subdivision 1. 
 26.25     (b) The commissioner shall rescind the disqualification if 
 26.26  the commissioner finds that the information relied on to 
 26.27  disqualify the subject is incorrect.  The commissioner may set 
 26.28  aside the disqualification under this section if the 
 26.29  commissioner finds that the individual does not pose a risk of 
 26.30  harm to any person served by the applicant, license holder, or 
 26.31  registrant under section 144A.71, subdivision 1.  In determining 
 26.32  that an individual does not pose a risk of harm, the 
 26.33  commissioner shall consider the nature, severity, and 
 26.34  consequences of the event or events that lead to 
 26.35  disqualification, whether there is more than one disqualifying 
 26.36  event, the age and vulnerability of the victim at the time of 
 27.1   the event, the harm suffered by the victim, the similarity 
 27.2   between the victim and persons served by the program, the time 
 27.3   elapsed without a repeat of the same or similar event, 
 27.4   documentation of successful completion by the individual studied 
 27.5   of training or rehabilitation pertinent to the event, and any 
 27.6   other information relevant to reconsideration.  In reviewing a 
 27.7   disqualification under this section, the commissioner shall give 
 27.8   preeminent weight to the safety of each person to be served by 
 27.9   the license holder, applicant, or registrant under section 
 27.10  144A.71, subdivision 1, over the interests of the license 
 27.11  holder, applicant, or registrant under section 144A.71, 
 27.12  subdivision 1. 
 27.13     (c) Unless the information the commissioner relied on in 
 27.14  disqualifying an individual is incorrect, the commissioner may 
 27.15  not set aside the disqualification of an individual ~~in~~ 
 27.16  ~~connection with a license to provide family day care for~~ 
 27.17  ~~children, foster care for children in the provider's own home,~~ 
 27.18  ~~or foster care or day care services for adults in the provider's~~ 
 27.19  ~~own home~~ if: 
 27.20     (1) less than ten years have passed since the discharge of 
 27.21  the sentence imposed for the offense; and the individual has 
 27.22  been convicted of a violation of any offense listed in sections 
 27.23  ~~609.20 (manslaughter in the first degree), 609.205 (manslaughter~~ 
 27.24  ~~in the second degree), criminal vehicular homicide under 609.21~~ 
 27.25  ~~(criminal vehicular homicide and injury),~~ 609.215 (aiding 
 27.26  suicide or aiding attempted suicide), felony violations under 
 27.27  ~~609.221 to~~ 609.2231 (assault in the ~~first, second, third, or~~ 
 27.28  fourth degree), 609.713 (terroristic threats), ~~609.235 (use of~~ 
 27.29  ~~drugs to injure or to facilitate crime), 609.24 (simple~~ 
 27.30  ~~robbery), 609.245 (aggravated robbery), 609.25 (kidnapping),~~ 
 27.31  ~~609.255 (false imprisonment), 609.561 or 609.562 (arson in the~~ 
 27.32  ~~first or second degree),~~ 609.71 (riot), burglary in the ~~first or~~ 
 27.33  second degree under 609.582 (burglary), 609.66 (dangerous 
 27.34  weapon), 609.665 (spring guns), 609.67 (machine guns and 
 27.35  short-barreled shotguns), ~~609.749 (harassment; stalking),~~ 
 27.36  ~~152.021 or 152.022 (controlled substance crime in the first or~~ 
 28.1   ~~second degree), 152.023, subdivision 1, clause (3) or (4), or~~ 
 28.2   ~~subdivision 2, clause (4) (controlled substance crime in the~~ 
 28.3   ~~third degree), 152.024, subdivision 1, clause (2), (3), or (4)~~ 
 28.4   ~~(controlled substance crime in the fourth degree),~~ 152.024 or 
 28.5   152.025 (controlled substance crime in the fourth or fifth 
 28.6   degree), 609.224, subdivision 2, paragraph (c) (fifth-degree 
 28.7   assault by a caregiver against a vulnerable adult), ~~609.228~~ 
 28.8   ~~(great bodily harm caused by distribution of drugs),~~ 609.23 
 28.9   (mistreatment of persons confined), 609.231 (mistreatment of 
 28.10  residents or patients), 609.2325 (criminal abuse of a vulnerable 
 28.11  adult), 609.233 (criminal neglect of a vulnerable adult), 
 28.12  609.2335 (financial exploitation of a vulnerable adult), 609.234 
 28.13  (failure to report), 609.265 (abduction), ~~609.2664 to 609.2665~~ 
 28.14  ~~(manslaughter of an unborn child in the first or second degree),~~ 
 28.15  ~~609.267 to~~ 609.2672 (assault of an unborn child in the ~~first,~~ 
 28.16  ~~second, or~~ third degree), ~~609.268 (injury or death of an unborn~~ 
 28.17  ~~child in the commission of a crime),~~ 617.293 (disseminating or 
 28.18  displaying harmful material to minors), a felony level 
 28.19  conviction involving alcohol or drug use, a gross misdemeanor 
 28.20  offense under 609.324, subdivision 1 (other prohibited acts), ~~a~~ 
 28.21  ~~gross misdemeanor offense under 609.378 (neglect or endangerment~~ 
 28.22  ~~of a child), a gross misdemeanor offense under 609.377~~ 
 28.23  ~~(malicious punishment of a child),~~ 609.72, subdivision 3 
 28.24  (disorderly conduct against a vulnerable adult); or an attempt 
 28.25  or conspiracy to commit any of these offenses, as each of these 
 28.26  offenses is defined in Minnesota Statutes; or an offense in any 
 28.27  other state, the elements of which are substantially similar to 
 28.28  the elements of any of the foregoing offenses; 
 28.29     (2) regardless of how much time has passed since the 
 28.30  involuntary termination of parental rights under section 
 28.31  260C.301 or the discharge of the sentence imposed for the 
 28.32  offense, the individual was convicted of a violation of any 
 28.33  offense listed in sections 609.185 to 609.195 (murder in the 
 28.34  first, second, or third degree), 609.20 (manslaughter in the 
 28.35  first degree), 609.205 (manslaughter in the second degree), 
 28.36  criminal vehicular homicide under 609.21 (criminal vehicular 
 29.1   homicide and injury), 609.235 (use of drugs to injure or to 
 29.2   facilitate crime), 609.24 (simple robbery), 609.245 (aggravated 
 29.3   robbery), 609.25 (kidnapping), 609.255 (false imprisonment), 
 29.4   609.561 or 609.562 (arson in the first or second degree), 
 29.5   609.749 (harassment; stalking), 609.228 (great bodily harm 
 29.6   caused by distribution of drugs), 609.2664 to 609.2665 
 29.7   (manslaughter of an unborn child in the first or second degree), 
 29.8   609.267 or 609.2671 (assault of an unborn child in the first or 
 29.9   second degree), 609.268 (injury or death of an unborn child in 
 29.10  the commission of a crime), 609.221 to 609.223 (assault in the 
 29.11  first, second, or third degree), 609.582 (burglary in the first 
 29.12  degree), 609.66, subdivision 1e (drive-by shooting), 609.165 
 29.13  (felon ineligible to possess firearm), 609.498, subdivision 1 
 29.14  (tampering with a witness), 609.687 (adulteration), 609.855, 
 29.15  subdivision 5 (shooting in or at a public transit vehicle or 
 29.16  facility), 609.229 (crime committed for benefit of a gang), 
 29.17  609.2661 to 609.2663 (murder of an unborn child in the first, 
 29.18  second, or third degree), ~~a felony offense under~~ 609.377 
 29.19  (malicious punishment of a child), a felony offense under 
 29.20  609.324, subdivision 1 (other prohibited acts), ~~a felony offense~~ 
 29.21  ~~under~~ 609.378 (neglect or endangerment of a child), 609.322 
 29.22  (solicitation, inducement, and promotion of prostitution), 
 29.23  609.342 to 609.345 (criminal sexual conduct in the first, 
 29.24  second, third, or fourth degree), 609.352 (solicitation of 
 29.25  children to engage in sexual conduct), 617.246 (use of minors in 
 29.26  a sexual performance), 617.247 (possession of pictorial 
 29.27  representations of a minor), 609.365 (incest), a felony offense 
 29.28  under sections 609.2242 and 609.2243 (domestic assault), a 
 29.29  felony offense under 624.713 (certain persons not to possess 
 29.30  pistols), 152.021, 152.022, or 152.023 (controlled substance 
 29.31  crime in the first, second, or third degree), a felony offense 
 29.32  of spousal abuse, a felony offense of child abuse or neglect, a 
 29.33  felony offense of a crime against children, or an attempt or 
 29.34  conspiracy to commit any of these offenses as defined in 
 29.35  Minnesota Statutes, or an offense in any other state, the 
 29.36  elements of which are substantially similar to any of the 
 30.1   foregoing offenses; 
 30.2      (3) within the seven years preceding the study, the 
 30.3   individual committed an act that constitutes maltreatment of a 
 30.4   child under section 626.556, subdivision 10e, and that resulted 
 30.5   in substantial bodily harm as defined in section 609.02, 
 30.6   subdivision 7a, or substantial mental or emotional harm as 
 30.7   supported by competent psychological or psychiatric evidence; or 
 30.8      (4) within the seven years preceding the study, the 
 30.9   individual was determined under section 626.557 to be the 
 30.10  perpetrator of a substantiated incident of maltreatment of a 
 30.11  vulnerable adult that resulted in substantial bodily harm as 
 30.12  defined in section 609.02, subdivision 7a, or substantial mental 
 30.13  or emotional harm as supported by competent psychological or 
 30.14  psychiatric evidence. 
 30.15     In the case of any ground for disqualification under 
 30.16  clauses (1) to (4), if the act was committed by an individual 
 30.17  other than the applicant, license holder, or registrant under 
 30.18  section 144A.71, subdivision 1, residing in the applicant's or 
 30.19  license holder's home, or the home of a registrant under section 
 30.20  144A.71, subdivision 1, the applicant, license holder, or 
 30.21  registrant under section 144A.71, subdivision 1, may seek 
 30.22  reconsideration when the individual who committed the act no 
 30.23  longer resides in the home.  
 30.24     The disqualification periods provided under clauses (1), 
 30.25  (3), and (4) are the minimum applicable disqualification 
 30.26  periods.  The commissioner may determine that an individual 
 30.27  should continue to be disqualified from licensure or 
 30.28  registration under section 144A.71, subdivision 1, because the 
 30.29  license holder, applicant, or registrant under section 144A.71, 
 30.30  subdivision 1, poses a risk of harm to a person served by that 
 30.31  individual after the minimum disqualification period has passed. 
 30.32     (d) The commissioner shall respond in writing or by 
 30.33  electronic transmission to all reconsideration requests for 
 30.34  which the basis for the request is that the information relied 
 30.35  upon by the commissioner to disqualify is incorrect or 
 30.36  inaccurate within 30 working days of receipt of a request and 
 31.1   all relevant information.  If the basis for the request is that 
 31.2   the individual does not pose a risk of harm, the commissioner 
 31.3   shall respond to the request within 15 working days after 
 31.4   receiving the request for reconsideration and all relevant 
 31.5   information.  If the request is based on both the correctness or 
 31.6   accuracy of the information relied on to disqualify the 
 31.7   individual and the risk of harm, the commissioner shall respond 
 31.8   to the request within 45 working days after receiving the 
 31.9   request for reconsideration and all relevant information.  If 
 31.10  the disqualification is set aside, the commissioner shall notify 
 31.11  the applicant or license holder in writing or by electronic 
 31.12  transmission of the decision. 
 31.13     (e) Except as provided in subdivision 3c, if a 
 31.14  disqualification for which reconsideration was requested is not 
 31.15  set aside or is not rescinded, an individual who was 
 31.16  disqualified on the basis of a preponderance of evidence that 
 31.17  the individual committed an act or acts that meet the definition 
 31.18  of any of the crimes ~~lists~~ listed in subdivision 3d, paragraph 
 31.19  (a), clauses (1) to (4); or for failure to make required reports 
 31.20  under section 626.556, subdivision 3, or 626.557, subdivision 3, 
 31.21  pursuant to subdivision 3d, paragraph (a), clause (4), may 
 31.22  request a fair hearing under section 256.045.  Except as 
 31.23  provided under subdivision 3c, the ~~commissioner's final order~~ 
 31.24  ~~for an individual under this paragraph is conclusive on the~~ 
 31.25  ~~issue of maltreatment and disqualification, including for~~ 
 31.26  ~~purposes of subsequent studies conducted under subdivision 3,~~ 
 31.27  ~~and~~ fair hearing is the only administrative appeal of the final 
 31.28  agency determination, specifically, including a challenge to the 
 31.29  accuracy and completeness of data under section 13.04.  
 31.30     (f) Except as provided under subdivision 3c, if an 
 31.31  individual was disqualified on the basis of a determination of 
 31.32  maltreatment under section 626.556 or 626.557, which was serious 
 31.33  or recurring, and the individual has requested reconsideration 
 31.34  of the maltreatment determination under section 626.556, 
 31.35  subdivision 10i, or 626.557, subdivision 9d, and also requested 
 31.36  reconsideration of the disqualification under this subdivision, 
 32.1   reconsideration of the maltreatment determination and 
 32.2   reconsideration of the disqualification shall be consolidated 
 32.3   into a single reconsideration.  For maltreatment and 
 32.4   disqualification determinations made by county agencies, the 
 32.5   consolidated reconsideration shall be conducted by the county 
 32.6   agency.  If the county agency has disqualified an individual on 
 32.7   multiple bases, one of which is a county maltreatment 
 32.8   determination for which the individual has a right to request 
 32.9   reconsideration, the county shall conduct the reconsideration of 
 32.10  all disqualifications.  Except as provided under subdivision 3c, 
 32.11  if an individual who was disqualified on the basis of serious or 
 32.12  recurring maltreatment requests a fair hearing on the 
 32.13  maltreatment determination under section 626.556, subdivision 
 32.14  10i, or 626.557, subdivision 9d, and requests a fair hearing on 
 32.15  the disqualification, which has not been set aside or rescinded 
 32.16  under this subdivision, the scope of the fair hearing under 
 32.17  section 256.045 shall include the maltreatment determination and 
 32.18  the disqualification.  Except as provided under subdivision 
 32.19  3c, ~~the commissioner's final order for an individual under this~~ 
 32.20  ~~paragraph is conclusive on the issue of maltreatment and~~ 
 32.21  ~~disqualification, including for purposes of subsequent studies~~ 
 32.22  ~~conducted under subdivision 3, and~~ a fair hearing is the only 
 32.23  administrative appeal of the final agency determination, 
 32.24  specifically, including a challenge to the accuracy and 
 32.25  completeness of data under section 13.04. 
 32.26     Sec. 12.  Minnesota Statutes 2001 Supplement, section 
 32.27  245A.04, subdivision 3d, is amended to read: 
 32.28     Subd. 3d.  [DISQUALIFICATION.] (a) Upon receipt of 
 32.29  information showing, or when a background study completed under 
 32.30  subdivision 3 shows any of the following:  a conviction of one 
 32.31  or more crimes listed in clauses (1) to (4); the individual has 
 32.32  admitted to or a preponderance of the evidence indicates the 
 32.33  individual has committed an act or acts that meet the definition 
 32.34  of any of the crimes listed in clauses (1) to (4); or an 
 32.35  investigation results in an administrative determination listed 
 32.36  under clause (4), the individual shall be disqualified from any 
 33.1   position allowing direct contact with persons receiving services 
 33.2   from the license holder, entity identified in subdivision 3, 
 33.3   paragraph (a), or registrant under section 144A.71, subdivision 
 33.4   1, and for individuals studied under section 245A.04, 
 33.5   subdivision 3, paragraph (c), clauses (2), (6), and (7), the 
 33.6   individual shall also be disqualified from access to a person 
 33.7   receiving services from the license holder: 
 33.8      (1) regardless of how much time has passed since the 
 33.9   involuntary termination of parental rights under section 
 33.10  260C.301 or the discharge of the sentence imposed for the 
 33.11  offense, and unless otherwise specified, regardless of the level 
 33.12  of the conviction, the individual was convicted of any of the 
 33.13  following offenses:  sections 609.185 (murder in the first 
 33.14  degree); 609.19 (murder in the second degree); 609.195 (murder 
 33.15  in the third degree); 609.2661 (murder of an unborn child in the 
 33.16  first degree); 609.2662 (murder of an unborn child in the second 
 33.17  degree); 609.2663 (murder of an unborn child in the third 
 33.18  degree); 609.20 (manslaughter in the first degree); 609.205 
 33.19  (manslaughter in the second degree); 609.21 (criminal vehicular 
 33.20  homicide and injury); 609.221 to 609.223 (assault in the first, 
 33.21  second, or third degree); 609.228 (great bodily harm caused by 
 33.22  distribution of drugs); 609.235 (use of drugs to injure or 
 33.23  facilitate crime); 609.24 (simple robbery); 609.245 (aggravated 
 33.24  robbery); 609.25 (kidnapping); 609.255 (false imprisonment); 
 33.25  609.267 (assault of an unborn child in the first degree); 
 33.26  609.2671 (assault of an unborn child in the second degree); 
 33.27  609.268 (injury or death of an unborn child in the commission of 
 33.28  a crime); 609.561 (arson in the first degree); 609.562 (arson in 
 33.29  the second degree); 609.582 (burglary); 609.749 (harassment; 
 33.30  stalking; penalties); 609.165 (felon ineligible to possess 
 33.31  firearm); 609.66, subdivision 1e (drive-by shooting); 609.687 
 33.32  (adulteration); 609.855, subdivision 5 (shooting at or in a 
 33.33  public transit vehicle or facility); felony offense under 
 33.34  624.713 (certain persons not to possess pistols); 609.229 (crime 
 33.35  committed for benefit of a gang); 609.498, subdivision 1 
 33.36  (tampering with a witness); 609.2664 (manslaughter of an unborn 
 34.1   child in the first degree); 609.2665 (manslaughter of an unborn 
 34.2   child in the second degree); 152.021, 152.022, or 152.023 
 34.3   (controlled substance crime in the first, second, or third 
 34.4   degree); 609.322 (solicitation, inducement, and promotion of 
 34.5   prostitution); 609.342 (criminal sexual conduct in the first 
 34.6   degree); 609.343 (criminal sexual conduct in the second degree); 
 34.7   609.344 (criminal sexual conduct in the third degree); 609.345 
 34.8   (criminal sexual conduct in the fourth degree); 609.352 
 34.9   (solicitation of children to engage in sexual conduct); 609.365 
 34.10  (incest); ~~felony offense under~~ 609.377 (malicious punishment of 
 34.11  a child); ~~a felony offense under~~ 609.378 (neglect or 
 34.12  endangerment of a child); a felony offense under 609.324, 
 34.13  subdivision 1 (other prohibited acts); 617.246 (use of minors in 
 34.14  sexual performance prohibited); 617.247 (possession of pictorial 
 34.15  representations of minors); a felony offense under sections 
 34.16  609.2242 and 609.2243 (domestic assault), a felony offense of 
 34.17  spousal abuse, a felony offense of child abuse or neglect, a 
 34.18  felony offense of a crime against children; or attempt or 
 34.19  conspiracy to commit any of these offenses as defined in 
 34.20  Minnesota Statutes, or an offense in any other state or country, 
 34.21  where the elements are substantially similar to any of the 
 34.22  offenses listed in this clause; 
 34.23     (2) if less than 15 years have passed since the discharge 
 34.24  of the sentence imposed for the offense; and the individual has 
 34.25  received a felony conviction for a violation of any of these 
 34.26  offenses:  sections ~~609.20 (manslaughter in the first degree);~~ 
 34.27  ~~609.205 (manslaughter in the second degree); 609.21 (criminal~~ 
 34.28  ~~vehicular homicide and injury);~~ 609.215 (suicide); ~~609.221 to~~ 
 34.29  609.2231 (assault in the ~~first, second, third, or~~ fourth 
 34.30  degree); repeat offenses under 609.224 (assault in the fifth 
 34.31  degree); repeat offenses under 609.3451 (criminal sexual conduct 
 34.32  in the fifth degree); 609.713 (terroristic threats); ~~609.235~~ 
 34.33  ~~(use of drugs to injure or facilitate crime); 609.24 (simple~~ 
 34.34  ~~robbery); 609.245 (aggravated robbery); 609.25 (kidnapping);~~ 
 34.35  ~~609.255 (false imprisonment); 609.561 (arson in the first~~ 
 34.36  ~~degree); 609.562 (arson in the second degree);~~ 609.563 (arson in 
 35.1   the third degree); repeat offenses under 617.23 (indecent 
 35.2   exposure; penalties); repeat offenses under 617.241 (obscene 
 35.3   materials and performances; distribution and exhibition 
 35.4   prohibited; penalty); 609.71 (riot); 609.66 (dangerous weapons); 
 35.5   609.67 (machine guns and short-barreled shotguns); ~~609.749~~ 
 35.6   ~~(harassment; stalking; penalties); 609.228 (great bodily harm~~ 
 35.7   ~~caused by distribution of drugs);~~ 609.2325 (criminal abuse of a 
 35.8   vulnerable adult); ~~609.2664 (manslaughter of an unborn child in~~ 
 35.9   ~~the first degree); 609.2665 (manslaughter of an unborn child in~~ 
 35.10  ~~the second degree); 609.267 (assault of an unborn child in the~~ 
 35.11  ~~first degree); 609.2671 (assault of an unborn child in the~~ 
 35.12  ~~second degree); 609.268 (injury or death of an unborn child in~~ 
 35.13  ~~the commission of a crime);~~ 609.52 (theft); 609.2335 (financial 
 35.14  exploitation of a vulnerable adult); 609.521 (possession of 
 35.15  shoplifting gear); ~~609.582 (burglary);~~ 609.625 (aggravated 
 35.16  forgery); 609.63 (forgery); 609.631 (check forgery; offering a 
 35.17  forged check); 609.635 (obtaining signature by false pretense); 
 35.18  609.27 (coercion); 609.275 (attempt to coerce); 609.687 
 35.19  (adulteration); 260C.301 (grounds for termination of parental 
 35.20  rights); ~~chapter 152 (drugs; controlled substance);~~ 152.024 or 
 35.21  152.025 (controlled substance crime in the fourth or fifth 
 35.22  degree); and a felony level conviction involving alcohol or drug 
 35.23  use.  An attempt or conspiracy to commit any of these offenses, 
 35.24  as each of these offenses is defined in Minnesota Statutes; or 
 35.25  an offense in any other state or country, the elements of which 
 35.26  are substantially similar to the elements of the offenses in 
 35.27  this clause.  If the individual studied is convicted of one of 
 35.28  the felonies listed in this clause, but the sentence is a gross 
 35.29  misdemeanor or misdemeanor disposition, the lookback period for 
 35.30  the conviction is the period applicable to the disposition, that 
 35.31  is the period for gross misdemeanors or misdemeanors; 
 35.32     (3) if less than ten years have passed since the discharge 
 35.33  of the sentence imposed for the offense; and the individual has 
 35.34  received a gross misdemeanor conviction for a violation of any 
 35.35  of the following offenses:  sections 609.224 (assault in the 
 35.36  fifth degree); 609.2242 and 609.2243 (domestic assault); 
 36.1   violation of an order for protection under 518B.01, subdivision 
 36.2   14; 609.3451 (criminal sexual conduct in the fifth degree); 
 36.3   repeat offenses under 609.746 (interference with privacy); 
 36.4   repeat offenses under 617.23 (indecent exposure); 617.241 
 36.5   (obscene materials and performances); 617.243 (indecent 
 36.6   literature, distribution); 617.293 (harmful materials; 
 36.7   dissemination and display to minors prohibited); 609.71 (riot); 
 36.8   609.66 (dangerous weapons); ~~609.749 (harassment; stalking;~~ 
 36.9   ~~penalties);~~ 609.224, subdivision 2, paragraph (c) (assault in 
 36.10  the fifth degree by a caregiver against a vulnerable adult); 
 36.11  609.23 (mistreatment of persons confined); 609.231 (mistreatment 
 36.12  of residents or patients); 609.2325 (criminal abuse of a 
 36.13  vulnerable adult); 609.233 (criminal neglect of a vulnerable 
 36.14  adult); 609.2335 (financial exploitation of a vulnerable adult); 
 36.15  609.234 (failure to report maltreatment of a vulnerable adult); 
 36.16  609.72, subdivision 3 (disorderly conduct against a vulnerable 
 36.17  adult); 609.265 (abduction); ~~609.378 (neglect or endangerment of~~ 
 36.18  ~~a child); 609.377 (malicious punishment of a child);~~ 609.324, 
 36.19  subdivision 1a (other prohibited acts; minor engaged in 
 36.20  prostitution); 609.33 (disorderly house); 609.52 (theft); 
 36.21  ~~609.582 (burglary);~~ 609.631 (check forgery; offering a forged 
 36.22  check); 609.275 (attempt to coerce); or an attempt or conspiracy 
 36.23  to commit any of these offenses, as each of these offenses is 
 36.24  defined in Minnesota Statutes; or an offense in any other state 
 36.25  or country, the elements of which are substantially similar to 
 36.26  the elements of any of the offenses listed in this clause.  If 
 36.27  the defendant is convicted of one of the gross misdemeanors 
 36.28  listed in this clause, but the sentence is a misdemeanor 
 36.29  disposition, the lookback period for the conviction is the 
 36.30  period applicable to misdemeanors; or 
 36.31     (4) if less than seven years have passed since the 
 36.32  discharge of the sentence imposed for the offense; and the 
 36.33  individual has received a misdemeanor conviction for a violation 
 36.34  of any of the following offenses:  sections 609.224 (assault in 
 36.35  the fifth degree); 609.2242 (domestic assault); violation of an 
 36.36  order for protection under 518B.01 (Domestic Abuse Act); 
 37.1   violation of an order for protection under 609.3232 (protective 
 37.2   order authorized; procedures; penalties); 609.746 (interference 
 37.3   with privacy); 609.79 (obscene or harassing phone calls); 
 37.4   609.795 (letter, telegram, or package; opening; harassment); 
 37.5   617.23 (indecent exposure; penalties); 609.2672 (assault of an 
 37.6   unborn child in the third degree); 617.293 (harmful materials; 
 37.7   dissemination and display to minors prohibited); 609.66 
 37.8   (dangerous weapons); 609.665 (spring guns); 609.2335 (financial 
 37.9   exploitation of a vulnerable adult); 609.234 (failure to report 
 37.10  maltreatment of a vulnerable adult); 609.52 (theft); 609.27 
 37.11  (coercion); or an attempt or conspiracy to commit any of these 
 37.12  offenses, as each of these offenses is defined in Minnesota 
 37.13  Statutes; or an offense in any other state or country, the 
 37.14  elements of which are substantially similar to the elements of 
 37.15  any of the offenses listed in this clause; a determination or 
 37.16  disposition of failure to make required reports under section 
 37.17  626.556, subdivision 3, or 626.557, subdivision 3, for incidents 
 37.18  in which:  (i) the final disposition under section 626.556 or 
 37.19  626.557 was substantiated maltreatment, and (ii) the 
 37.20  maltreatment was recurring or serious; or a determination or 
 37.21  disposition of substantiated serious or recurring maltreatment 
 37.22  of a minor under section 626.556 or of a vulnerable adult under 
 37.23  section 626.557 for which there is a preponderance of evidence 
 37.24  that the maltreatment occurred, and that the subject was 
 37.25  responsible for the maltreatment. 
 37.26     For the purposes of this section, "serious maltreatment" 
 37.27  means sexual abuse; maltreatment resulting in death; or 
 37.28  maltreatment resulting in serious injury which reasonably 
 37.29  requires the care of a physician whether or not the care of a 
 37.30  physician was sought; or abuse resulting in serious injury.  For 
 37.31  purposes of this section, "abuse resulting in serious injury" 
 37.32  means:  bruises, bites, skin laceration or tissue damage; 
 37.33  fractures; dislocations; evidence of internal injuries; head 
 37.34  injuries with loss of consciousness; extensive second-degree or 
 37.35  third-degree burns and other burns for which complications are 
 37.36  present; extensive second-degree or third-degree frostbite, and 
 38.1   others for which complications are present; irreversible 
 38.2   mobility or avulsion of teeth; injuries to the eyeball; 
 38.3   ingestion of foreign substances and objects that are harmful; 
 38.4   near drowning; and heat exhaustion or sunstroke.  For purposes 
 38.5   of this section, "care of a physician" is treatment received or 
 38.6   ordered by a physician, but does not include diagnostic testing, 
 38.7   assessment, or observation.  For the purposes of this section, 
 38.8   "recurring maltreatment" means more than one incident of 
 38.9   maltreatment for which there is a preponderance of evidence that 
 38.10  the maltreatment occurred, and that the subject was responsible 
 38.11  for the maltreatment.  For purposes of this section, "access" 
 38.12  means physical access to an individual receiving services or the 
 38.13  individual's personal property without continuous, direct 
 38.14  supervision as defined in section 245A.04, subdivision 3.  
 38.15     (b) Except for background studies related to child foster 
 38.16  care, adult foster care, or family child care licensure, when 
 38.17  the subject of a background study is regulated by a 
 38.18  health-related licensing board as defined in chapter 214, and 
 38.19  the regulated person has been determined to have been 
 38.20  responsible for substantiated maltreatment under section 626.556 
 38.21  or 626.557, instead of the commissioner making a decision 
 38.22  regarding disqualification, the board shall make a determination 
 38.23  whether to impose disciplinary or corrective action under 
 38.24  chapter 214. 
 38.25     (1) The commissioner shall notify the health-related 
 38.26  licensing board: 
 38.27     (i) upon completion of a background study that produces a 
 38.28  record showing that the individual was determined to have been 
 38.29  responsible for substantiated maltreatment; 
 38.30     (ii) upon the commissioner's completion of an investigation 
 38.31  that determined the individual was responsible for substantiated 
 38.32  maltreatment; or 
 38.33     (iii) upon receipt from another agency of a finding of 
 38.34  substantiated maltreatment for which the individual was 
 38.35  responsible. 
 38.36     (2) The commissioner's notice shall indicate whether the 
 39.1   individual would have been disqualified by the commissioner for 
 39.2   the substantiated maltreatment if the individual were not 
 39.3   regulated by the board.  The commissioner shall concurrently 
 39.4   send this notice to the individual. 
 39.5      (3) Notwithstanding the exclusion from this subdivision for 
 39.6   individuals who provide child foster care, adult foster care, or 
 39.7   family child care, when the commissioner or a local agency has 
 39.8   reason to believe that the direct contact services provided by 
 39.9   the individual may fall within the jurisdiction of a 
 39.10  health-related licensing board, a referral shall be made to the 
 39.11  board as provided in this section. 
 39.12     (4) If, upon review of the information provided by the 
 39.13  commissioner, a health-related licensing board informs the 
 39.14  commissioner that the board does not have jurisdiction to take 
 39.15  disciplinary or corrective action, the commissioner shall make 
 39.16  the appropriate disqualification decision regarding the 
 39.17  individual as otherwise provided in this chapter. 
 39.18     (5) The commissioner has the authority to monitor the 
 39.19  facility's compliance with any requirements that the 
 39.20  health-related licensing board places on regulated persons 
 39.21  practicing in a facility either during the period pending a 
 39.22  final decision on a disciplinary or corrective action or as a 
 39.23  result of a disciplinary or corrective action.  The commissioner 
 39.24  has the authority to order the immediate removal of a regulated 
 39.25  person from direct contact or access when a board issues an 
 39.26  order of temporary suspension based on a determination that the 
 39.27  regulated person poses an immediate risk of harm to persons 
 39.28  receiving services in a licensed facility. 
 39.29     (6) A facility that allows a regulated person to provide 
 39.30  direct contact services while not complying with the 
 39.31  requirements imposed by the health-related licensing board is 
 39.32  subject to action by the commissioner as specified under 
 39.33  sections 245A.06 and 245A.07. 
 39.34     (7) The commissioner shall notify a health-related 
 39.35  licensing board immediately upon receipt of knowledge of 
 39.36  noncompliance with requirements placed on a facility or upon a 
 40.1   person regulated by the board. 
 40.2      Sec. 13.  Minnesota Statutes 2000, section 245A.04, is 
 40.3   amended by adding a subdivision to read: 
 40.4      Subd. 3f.  [CONCLUSIVE DETERMINATIONS OR DISPOSITIONS.] 
 40.5   Unless otherwise specified in statute, the following 
 40.6   determinations or dispositions are deemed conclusive: 
 40.7      (1) a maltreatment determination or disposition under 
 40.8   section 626.556 or 626.557, if: 
 40.9      (i) the commissioner has issued a final order in an appeal 
 40.10  of that determination or disposition under section 245A.08, 
 40.11  subdivision 5, or 256.045; 
 40.12     (ii) the individual did not request reconsideration of the 
 40.13  maltreatment determination or disposition under section 626.556 
 40.14  or 626.557; or 
 40.15     (iii) the individual did not request a hearing of the 
 40.16  maltreatment determination or disposition under section 256.045; 
 40.17  and 
 40.18     (2) a determination that the information relied upon to 
 40.19  disqualify an individual under subdivision 3d, was correct based 
 40.20  on serious or recurring maltreatment; or 
 40.21     (3) a preponderance of evidence shows that the individual 
 40.22  committed an act or acts that meet the definition of any of the 
 40.23  crimes listed in subdivision 3d, paragraph (a), clauses (1) to 
 40.24  (4); or the individual's failure to make required reports under 
 40.25  section 626.556, subdivision 3, or 626.557, subdivision 3, if: 
 40.26     (i) the commissioner has issued a final order in an appeal 
 40.27  of that determination under section 245A.08, subdivision 5, or 
 40.28  256.045, or a court has issued a final decision; 
 40.29     (ii) the individual did not request reconsideration of the 
 40.30  disqualification under this subdivision; or 
 40.31     (iii) the individual did not request a hearing on the 
 40.32  disqualification under section 256.045. 
 40.33     Sec. 14.  Minnesota Statutes 2001 Supplement, section 
 40.34  245A.07, subdivision 2a, is amended to read: 
 40.35     Subd. 2a.  [IMMEDIATE SUSPENSION EXPEDITED HEARING.] (a) 
 40.36  Within five working days of receipt of the license holder's 
 41.1   timely appeal, the commissioner shall request assignment of an 
 41.2   administrative law judge.  The request must include a proposed 
 41.3   date, time, and place of a hearing.  A hearing must be conducted 
 41.4   by an administrative law judge within 30 calendar days of the 
 41.5   request for assignment, unless an extension is requested by 
 41.6   either party and granted by the administrative law judge for 
 41.7   good cause.  The commissioner shall issue a notice of hearing by 
 41.8   certified mail at least ten working days before the hearing.  
 41.9   The scope of the hearing shall be limited solely to the issue of 
 41.10  whether the temporary immediate suspension should remain in 
 41.11  effect pending the commissioner's final order under section 
 41.12  245A.08, regarding a licensing sanction issued under subdivision 
 41.13  3 following the immediate suspension.  The burden of proof in 
 41.14  expedited hearings under this subdivision shall be limited to 
 41.15  the commissioner's demonstration that reasonable cause exists to 
 41.16  believe that the license holder's actions or failure to comply 
 41.17  with applicable law or rule poses an imminent risk of harm to 
 41.18  the health, safety, or rights of persons served by the program.  
 41.19     (b) The administrative law judge shall issue findings of 
 41.20  fact, conclusions, and a recommendation within ten working days 
 41.21  from the date of hearing.  The commissioner's final order shall 
 41.22  be issued within ten working days from receipt of the 
 41.23  recommendation of the administrative law judge.  Within 90 
 41.24  calendar days after a final order affirming an immediate 
 41.25  suspension, the commissioner shall make a determination 
 41.26  regarding whether a final licensing sanction shall be issued 
 41.27  under subdivision 3.  The license holder shall continue to be 
 41.28  prohibited from operation of the program during this 90-day 
 41.29  period.  
 41.30     (c) When the final order under paragraph (b) affirms an 
 41.31  immediate suspension, and a final licensing sanction is issued 
 41.32  under subdivision 3, and the license holder appeals that 
 41.33  sanction, the license holder continues to be prohibited from 
 41.34  operation of the program pending a final commissioner's order 
 41.35  under section 245A.08, subdivision 5, regarding the final 
 41.36  licensing sanction. 
 42.1      Sec. 15.  Minnesota Statutes 2001 Supplement, section 
 42.2   245A.07, subdivision 3, is amended to read: 
 42.3      Subd. 3.  [LICENSE SUSPENSION, REVOCATION, OR FINE.] The 
 42.4   commissioner may suspend or revoke a license, or impose a fine 
 42.5   if a license holder fails to comply fully with applicable laws 
 42.6   or rules, or knowingly withholds relevant information from or 
 42.7   gives false or misleading information to the commissioner in 
 42.8   connection with an application for a license, in connection with 
 42.9   the background study status of an individual, or during an 
 42.10  investigation.  A license holder who has had a license 
 42.11  suspended, revoked, or has been ordered to pay a fine must be 
 42.12  given notice of the action by certified mail.  The notice must 
 42.13  be mailed to the address shown on the application or the last 
 42.14  known address of the license holder.  The notice must state the 
 42.15  reasons the license was suspended, revoked, or a fine was 
 42.16  ordered. 
 42.17     (a) If the license was suspended or revoked, the notice 
 42.18  must inform the license holder of the right to a contested case 
 42.19  hearing under chapter 14 and Minnesota Rules, parts 1400.8510 to 
 42.20  1400.8612 and successor rules.  The license holder may appeal an 
 42.21  order suspending or revoking a license.  The appeal of an order 
 42.22  suspending or revoking a license must be made in writing by 
 42.23  certified mail and must be received by the commissioner within 
 42.24  ten calendar days after the license holder receives notice that 
 42.25  the license has been suspended or revoked.  Except as provided 
 42.26  in subdivision 2a, paragraph (c), a timely appeal of an order 
 42.27  suspending or revoking a license shall stay the suspension or 
 42.28  revocation until the commissioner issues a final order.  
 42.29     (b)(1) If the license holder was ordered to pay a fine, the 
 42.30  notice must inform the license holder of the responsibility for 
 42.31  payment of fines and the right to a contested case hearing under 
 42.32  chapter 14 and Minnesota Rules, parts 1400.8510 to 1400.8612 and 
 42.33  successor rules.  The appeal of an order to pay a fine must be 
 42.34  made in writing by certified mail and must be received by the 
 42.35  commissioner within ten calendar days after the license holder 
 42.36  receives notice that the fine has been ordered.  
 43.1      (2) The license holder shall pay the fines assessed on or 
 43.2   before the payment date specified.  If the license holder fails 
 43.3   to fully comply with the order, the commissioner may issue a 
 43.4   second fine or suspend the license until the license holder 
 43.5   complies.  If the license holder receives state funds, the 
 43.6   state, county, or municipal agencies or departments responsible 
 43.7   for administering the funds shall withhold payments and recover 
 43.8   any payments made while the license is suspended for failure to 
 43.9   pay a fine.  A timely appeal shall stay payment of the fine 
 43.10  until the commissioner issues a final order.  
 43.11     (3) A license holder shall promptly notify the commissioner 
 43.12  of human services, in writing, when a violation specified in the 
 43.13  order to forfeit a fine is corrected.  If upon reinspection the 
 43.14  commissioner determines that a violation has not been corrected 
 43.15  as indicated by the order to forfeit a fine, the commissioner 
 43.16  may issue a second fine.  The commissioner shall notify the 
 43.17  license holder by certified mail that a second fine has been 
 43.18  assessed.  The license holder may appeal the second fine as 
 43.19  provided under this subdivision. 
 43.20     (4) Fines shall be assessed as follows:  the license holder 
 43.21  shall forfeit $1,000 for each determination of maltreatment of a 
 43.22  child under section 626.556 or the maltreatment of a vulnerable 
 43.23  adult under section 626.557; the license holder shall forfeit 
 43.24  $200 for each occurrence of a violation of law or rule governing 
 43.25  matters of health, safety, or supervision, including but not 
 43.26  limited to the provision of adequate staff-to-child or adult 
 43.27  ratios, and failure to submit a background study; and the 
 43.28  license holder shall forfeit $100 for each occurrence of a 
 43.29  violation of law or rule other than those subject to a $1,000 or 
 43.30  $200 fine above.  For purposes of this section, "occurrence" 
 43.31  means each violation identified in the commissioner's fine order.
 43.32     (5) When a fine has been assessed, the license holder may 
 43.33  not avoid payment by closing, selling, or otherwise transferring 
 43.34  the licensed program to a third party.  In such an event, the 
 43.35  license holder will be personally liable for payment.  In the 
 43.36  case of a corporation, each controlling individual is personally 
 44.1   and jointly liable for payment.  
 44.2      Sec. 16.  [245A.085] [CONSOLIDATION OF HEARINGS; 
 44.3   RECONSIDERATION.] 
 44.4      Hearings authorized under this chapter and sections 
 44.5   256.045, 626.556, and 626.557, shall be consolidated if feasible 
 44.6   and in accordance with other applicable statutes and rules.  
 44.7   Reconsideration under sections 245A.04, subdivision 3c; 626.556, 
 44.8   subdivision 10i; and 626.557, subdivision 9d, shall also be 
 44.9   consolidated if feasible. 
 44.10     Sec. 17.  Minnesota Statutes 2001 Supplement, section 
 44.11  245A.144, is amended to read: 
 44.12     245A.144 [REDUCTION OF RISK OF SUDDEN INFANT DEATH SYNDROME 
 44.13  IN CHILD CARE PROGRAMS.] 
 44.14     License holders must ensure that before staff persons, 
 44.15  caregivers, and helpers assist in the care of infants, they 
 44.16  receive training on reducing the risk of sudden infant death 
 44.17  syndrome.  The training on reducing the risk of sudden infant 
 44.18  death syndrome may be provided as orientation training under 
 44.19  Minnesota Rules, part 9503.0035, subpart 1, as initial training 
 44.20  under Minnesota Rules, part 9502.0385, subpart 2, as in-service 
 44.21  training under Minnesota Rules, part 9503.0035, subpart 4, or as 
 44.22  ongoing training under Minnesota Rules, part 9502.0385, subpart 
 44.23  3.  Training required under this section must be at least one 
 44.24  hour in length and must be completed at least once every five 
 44.25  years.  At a minimum, the training must address the risk factors 
 44.26  related to sudden infant death syndrome, means of reducing the 
 44.27  risk of sudden infant death syndrome in child care, and license 
 44.28  holder communication with parents regarding reducing the risk of 
 44.29  sudden infant death syndrome.  Training for family and group 
 44.30  family child care providers must be approved by the county 
 44.31  licensing agency according to Minnesota Rules, part 9502.0385. 
 44.32     Sec. 18.  Minnesota Statutes 2001 Supplement, section 
 44.33  245A.16, subdivision 1, is amended to read: 
 44.34     Subdivision 1.  [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 
 44.35  County agencies and private agencies that have been designated 
 44.36  or licensed by the commissioner to perform licensing functions 
 45.1   and activities under section 245A.04, to recommend denial of 
 45.2   applicants under section 245A.05, to issue correction orders, to 
 45.3   issue variances, and recommend a conditional license under 
 45.4   section 245A.06, or to recommend suspending or revoking a 
 45.5   license or issuing a fine under section 245A.07, shall comply 
 45.6   with rules and directives of the commissioner governing those 
 45.7   functions and with this section.  The following variances are 
 45.8   excluded from the delegation of variance authority and may be 
 45.9   issued only by the commissioner: 
 45.10     (1) dual licensure of family child care and child foster 
 45.11  care, dual licensure of child and adult foster care, and adult 
 45.12  foster care and family child care; 
 45.13     (2) adult foster care maximum capacity; 
 45.14     (3) adult foster care minimum age requirement; 
 45.15     (4) child foster care maximum age requirement; 
 45.16     (5) variances regarding disqualified individuals except 
 45.17  that county agencies may issue variances under section 245A.04, 
 45.18  subdivision 3e, regarding disqualified individuals when the 
 45.19  county is responsible for conducting a consolidated 
 45.20  reconsideration according to section 245A.04, subdivision 3b, 
 45.21  paragraph (f), of a county maltreatment determination and a 
 45.22  disqualification based on serious or recurring maltreatment; and 
 45.23     (6) the required presence of a caregiver in the adult 
 45.24  foster care residence during normal sleeping hours. 
 45.25     (b) County agencies must report information about 
 45.26  disqualification reconsiderations under section 245A.04, 
 45.27  subdivision 3b, paragraph (f), and variances granted under 
 45.28  paragraph (a), clause (5), to the commissioner at least monthly 
 45.29  in a format prescribed by the commissioner. 
 45.30     (c) For family day care programs, the commissioner may 
 45.31  authorize licensing reviews every two years after a licensee has 
 45.32  had at least one annual review. 
 45.33     Sec. 19.  Minnesota Statutes 2000, section 245B.02, 
 45.34  subdivision 10, is amended to read: 
 45.35     Subd. 10.  [INCIDENT.] "Incident" means any of the 
 45.36  following: 
 46.1      (1) serious injury as determined by section 245.91, 
 46.2   subdivision 6; ~~accident; reports of a child or vulnerable adult~~ 
 46.3   ~~maltreatment; circumstances that involve a law enforcement~~ 
 46.4   ~~agency; or~~ 
 46.5      (2) a consumer's death; 
 46.6      (3) any medical emergencies, unexpected serious illnesses, 
 46.7   or accidents that require physician treatment or 
 46.8   hospitalization; 
 46.9      (4) a consumer's unauthorized absence; 
 46.10     (5) any fires or other circumstances involving a law 
 46.11  enforcement agency; 
 46.12     (6) physical aggression by a consumer against another 
 46.13  consumer that causes physical pain, injury, or persistent 
 46.14  emotional distress, including, but not limited to, hitting, 
 46.15  slapping, kicking, scratching, pinching, biting, pushing, and 
 46.16  spitting; 
 46.17     (7) any sexual activity between consumers involving force 
 46.18  or coercion as defined under section 609.341, subdivisions 3 and 
 46.19  14; or 
 46.20     (8) a report of child or vulnerable adult maltreatment 
 46.21  under section 626.556 or 626.557. 
 46.22     Sec. 20.  Minnesota Statutes 2000, section 245B.05, 
 46.23  subdivision 7, is amended to read: 
 46.24     Subd. 7.  [REPORTING INCIDENTS ~~AND EMERGENCIES~~.] (a) The 
 46.25  license holder must maintain information about and report ~~the~~ 
 46.26  ~~following~~ incidents under section 245B.02, subdivision 10, 
 46.27  clauses (1) to (7), to the consumer's legal representative, 
 46.28  other licensed caregiver, if any, and case manager within 24 
 46.29  hours of the occurrence, or within 24 hours of receipt of the 
 46.30  information~~:~~ 
 46.31     ~~(1) the death of a consumer;~~ 
 46.32     ~~(2) any medical emergencies, unexpected serious illnesses,~~ 
 46.33  ~~or accidents that require physician treatment or~~ 
 46.34  ~~hospitalization;~~ 
 46.35     ~~(3) a consumer's unauthorized absence; or~~ 
 46.36     ~~(4) any fires and incidents involving a law enforcement~~ 
 47.1   ~~agency~~ unless the incident has been reported by another license 
 47.2   holder.  An incident under section 245B.02, subdivision 10, 
 47.3   clause (8), must be reported as required under paragraph (c) 
 47.4   unless the incident has been reported by another license holder. 
 47.5      (b) When the incident involves more than one consumer, the 
 47.6   license holder must not disclose personally identifiable 
 47.7   information about any other consumer when making the report to 
 47.8   each consumer's legal representative, other licensed caregiver, 
 47.9   if any, and case manager unless the license holder has the 
 47.10  consent of a consumer or a consumer's legal representative. 
 47.11     (c) Within 24 hours of reporting maltreatment as required 
 47.12  under section 626.556 or 626.557, the license holder must inform 
 47.13  the consumer's legal representative and case manager of the 
 47.14  report unless there is reason to believe that the legal 
 47.15  representative or case manager is involved in the suspected 
 47.16  maltreatment.  The information the license holder must disclose 
 47.17  is the nature of the activity or occurrence reported, the agency 
 47.18  that receives the report, and the telephone number of the 
 47.19  department of human services licensing division. 
 47.20     (d) Death or serious injury of the consumer must also be 
 47.21  reported to the department of human services licensing division 
 47.22  and the ombudsman, as required under sections 245.91 and 245.94, 
 47.23  subdivision 2a. 
 47.24     Sec. 21.  Minnesota Statutes 2000, section 245B.07, 
 47.25  subdivision 1, is amended to read: 
 47.26     Subdivision 1.  [CONSUMER DATA FILE.] The license holder 
 47.27  must maintain the following information for each consumer: 
 47.28     (1) identifying information that includes date of birth, 
 47.29  medications, legal representative, history, medical, and other 
 47.30  individual-specific information, and names and telephone numbers 
 47.31  of contacts; 
 47.32     (2) consumer health information, including individual 
 47.33  medication administration and monitoring information; 
 47.34     (3) the consumer's individual service plan.  When a 
 47.35  consumer's case manager does not provide a current individual 
 47.36  service plan, the license holder shall make a written request to 
 48.1   the case manager to provide a copy of the individual service 
 48.2   plan and inform the consumer or the consumer's legal 
 48.3   representative of the right to an individual service plan and 
 48.4   the right to appeal under section 256.045; 
 48.5      (4) copies of assessments, analyses, summaries, and 
 48.6   recommendations; 
 48.7      (5) progress review reports; 
 48.8      (6) ~~incident and emergency reports~~ incidents involving the 
 48.9   consumer; 
 48.10     (7) reports required under section 245B.05, subdivision 7; 
 48.11     (8) discharge summary, when applicable; 
 48.12     ~~(8)~~ (9) record of other license holders serving the 
 48.13  consumer that includes a contact person and telephone numbers, 
 48.14  services being provided, services that require coordination 
 48.15  between two license holders, and name of staff responsible for 
 48.16  coordination; ~~and~~ 
 48.17     ~~(9) incidents involving~~ (10) information about verbal ~~and~~ 
 48.18  ~~physical~~ aggression ~~between consumers~~ directed at the consumer 
 48.19  by another consumer; and 
 48.20     (11) information about self-abuse ~~affecting the consumer~~. 
 48.21     Sec. 22.  Minnesota Statutes 2001 Supplement, section 
 48.22  256.045, subdivision 3b, is amended to read: 
 48.23     Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT AND 
 48.24  DISQUALIFICATION HEARINGS.] (a) The state human services referee 
 48.25  shall determine that maltreatment has occurred if a 
 48.26  preponderance of evidence exists to support the final 
 48.27  disposition under sections 626.556 and 626.557.  For purposes of 
 48.28  hearings regarding disqualification, the state human services 
 48.29  referee shall affirm the proposed disqualification in an appeal 
 48.30  under subdivision 3, paragraph (a), clause (9), if a 
 48.31  preponderance of the evidence shows the individual has:  
 48.32     (1) committed maltreatment under section 626.556 or 
 48.33  626.557, which is serious or recurring; 
 48.34     (2) committed an act or acts meeting the definition of any 
 48.35  of the crimes listed in section 245A.04, subdivision 3d, 
 48.36  paragraph (a), clauses (1) to (4); or 
 49.1      (3) failed to make required reports under section 626.556 
 49.2   or 626.557, for incidents in which~~:~~  
 49.3      ~~(i)~~ the final disposition under section 626.556 or 626.557 
 49.4   was substantiated maltreatment~~; and~~ 
 49.5      ~~(ii) the maltreatment was recurring or serious; or~~ 
 49.6   ~~substantiated serious or recurring maltreatment of a minor under~~ 
 49.7   ~~section 626.556 or of a vulnerable adult under section 626.557~~ 
 49.8   ~~for which there is a preponderance of evidence that the~~ 
 49.9   ~~maltreatment occurred, and that the subject was responsible for~~ 
 49.10  ~~the maltreatment~~ that was serious or recurring.  
 49.11     (b) If the disqualification is affirmed, the state human 
 49.12  services referee shall determine whether the individual poses a 
 49.13  risk of harm in accordance with the requirements of section 
 49.14  245A.04, subdivision 3b. 
 49.15     (c) The state human services referee shall recommend an 
 49.16  order to the commissioner of health, children, families, and 
 49.17  learning, or human services, as applicable, who shall issue a 
 49.18  final order.  The commissioner shall affirm, reverse, or modify 
 49.19  the final disposition.  Any order of the commissioner issued in 
 49.20  accordance with this subdivision is conclusive upon the parties 
 49.21  unless appeal is taken in the manner provided in subdivision 7.  
 49.22  ~~Except as provided under section 245A.04, subdivisions 3b,~~ 
 49.23  ~~paragraphs (e) and (f), and 3c,~~ In any licensing appeal under 
 49.24  chapter 245A and sections 144.50 to 144.58 and 144A.02 to 
 49.25  144A.46, the commissioner's determination as to maltreatment is 
 49.26  conclusive as provided under section 245A.04, subdivision 3f. 
 49.27     Sec. 23.  Minnesota Statutes 2001 Supplement, section 
 49.28  256.045, subdivision 4, is amended to read: 
 49.29     Subd. 4.  [CONDUCT OF HEARINGS.] (a) All hearings held 
 49.30  pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 
 49.31  according to the provisions of the federal Social Security Act 
 49.32  and the regulations implemented in accordance with that act to 
 49.33  enable this state to qualify for federal grants-in-aid, and 
 49.34  according to the rules and written policies of the commissioner 
 49.35  of human services.  County agencies shall install equipment 
 49.36  necessary to conduct telephone hearings.  A state human services 
 50.1   referee may schedule a telephone conference hearing when the 
 50.2   distance or time required to travel to the county agency offices 
 50.3   will cause a delay in the issuance of an order, or to promote 
 50.4   efficiency, or at the mutual request of the parties.  Hearings 
 50.5   may be conducted by telephone conferences unless the applicant, 
 50.6   recipient, former recipient, person, or facility contesting 
 50.7   maltreatment objects.  The hearing shall not be held earlier 
 50.8   than five days after filing of the required notice with the 
 50.9   county or state agency.  The state human services referee shall 
 50.10  notify all interested persons of the time, date, and location of 
 50.11  the hearing at least five days before the date of the hearing.  
 50.12  Interested persons may be represented by legal counsel or other 
 50.13  representative of their choice, including a provider of therapy 
 50.14  services, at the hearing and may appear personally, testify and 
 50.15  offer evidence, and examine and cross-examine witnesses.  The 
 50.16  applicant, recipient, former recipient, person, or facility 
 50.17  contesting maltreatment shall have the opportunity to examine 
 50.18  the contents of the case file and all documents and records to 
 50.19  be used by the county or state agency at the hearing at a 
 50.20  reasonable time before the date of the hearing and during the 
 50.21  hearing.  In hearings under subdivision 3, paragraph (a), 
 50.22  clauses (4), (8), and (9), either party may subpoena the private 
 50.23  data relating to the investigation prepared by the agency under 
 50.24  section 626.556 or 626.557 that is not otherwise accessible 
 50.25  under section 13.04, provided the identity of the reporter may 
 50.26  not be disclosed. 
 50.27     (b) The private data obtained by subpoena in a hearing 
 50.28  under subdivision 3, paragraph (a), clause (4), (8), or (9), 
 50.29  must be subject to a protective order which prohibits its 
 50.30  disclosure for any other purpose outside the hearing provided 
 50.31  for in this section without prior order of the district court.  
 50.32  Disclosure without court order is punishable by a sentence of 
 50.33  not more than 90 days imprisonment or a fine of not more than 
 50.34  $700, or both.  These restrictions on the use of private data do 
 50.35  not prohibit access to the data under section 13.03, subdivision 
 50.36  6.  Except for appeals under subdivision 3, paragraph (a), 
 51.1   clauses (4), (5), (8), and (9), upon request, the county agency 
 51.2   shall provide reimbursement for transportation, child care, 
 51.3   photocopying, medical assessment, witness fee, and other 
 51.4   necessary and reasonable costs incurred by the applicant, 
 51.5   recipient, or former recipient in connection with the appeal.  
 51.6   All evidence, except that privileged by law, commonly accepted 
 51.7   by reasonable people in the conduct of their affairs as having 
 51.8   probative value with respect to the issues shall be submitted at 
 51.9   the hearing and such hearing shall not be "a contested case" 
 51.10  within the meaning of section 14.02, subdivision 3.  The agency 
 51.11  must present its evidence prior to or at the hearing, and may 
 51.12  not submit evidence after the hearing except by agreement of the 
 51.13  parties at the hearing, provided the petitioner has the 
 51.14  opportunity to respond. 
 51.15     (c) In hearings under subdivision 3, paragraph (a), clauses 
 51.16  (4), (8), and (9), involving determinations of maltreatment or 
 51.17  disqualification made by more than one county agency, by a 
 51.18  county agency and a state agency, or by more than one state 
 51.19  agency, the hearings may be consolidated into a single fair 
 51.20  hearing upon the consent of all parties and the state human 
 51.21  services referee. 
 51.22     Sec. 24.  Minnesota Statutes 2001 Supplement, section 
 51.23  626.556, subdivision 10i, is amended to read: 
 51.24     Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
 51.25  DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
 51.26  SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
 51.27  provided under paragraph (e), an individual or facility that the 
 51.28  commissioner of human services, a local social service agency, 
 51.29  or the commissioner of children, families, and learning 
 51.30  determines has maltreated a child, an interested person acting 
 51.31  on behalf of the child, regardless of the determination, who 
 51.32  contests the investigating agency's final determination 
 51.33  regarding maltreatment, may request the investigating agency to 
 51.34  reconsider its final determination regarding maltreatment.  The 
 51.35  request for reconsideration must be submitted in writing to the 
 51.36  investigating agency within 15 calendar days after receipt of 
 52.1   notice of the final determination regarding maltreatment or, if 
 52.2   the request is made by an interested person who is not entitled 
 52.3   to notice, within 15 days after receipt of the notice by the 
 52.4   parent or guardian of the child.  Effective January 1, 2002, an 
 52.5   individual who was determined to have maltreated a child under 
 52.6   this section and who was disqualified on the basis of serious or 
 52.7   recurring maltreatment under section 245A.04, subdivision 3d, 
 52.8   may request reconsideration of the maltreatment determination 
 52.9   and the disqualification.  The request for reconsideration of 
 52.10  the maltreatment determination and the disqualification must be 
 52.11  submitted within 30 calendar days of the individual's receipt of 
 52.12  the notice of disqualification under section 245A.04, 
 52.13  subdivision 3a. 
 52.14     (b) Except as provided under paragraphs (e) and (f), if the 
 52.15  investigating agency denies the request or fails to act upon the 
 52.16  request within 15 calendar days after receiving the request for 
 52.17  reconsideration, the person or facility entitled to a fair 
 52.18  hearing under section 256.045 may submit to the commissioner of 
 52.19  human services or the commissioner of children, families, and 
 52.20  learning a written request for a hearing under that section.  
 52.21  Section 256.045 also governs hearings requested to contest a 
 52.22  final determination of the commissioner of children, families, 
 52.23  and learning.  For reports involving maltreatment of a child in 
 52.24  a facility, an interested person acting on behalf of the child 
 52.25  may request a review by the child maltreatment review panel 
 52.26  under section 256.022 if the investigating agency denies the 
 52.27  request or fails to act upon the request or if the interested 
 52.28  person contests a reconsidered determination.  The investigating 
 52.29  agency shall notify persons who request reconsideration of their 
 52.30  rights under this paragraph.  The request must be submitted in 
 52.31  writing to the review panel and a copy sent to the investigating 
 52.32  agency within 30 calendar days of receipt of notice of a denial 
 52.33  of a request for reconsideration or of a reconsidered 
 52.34  determination.  The request must specifically identify the 
 52.35  aspects of the agency determination with which the person is 
 52.36  dissatisfied. 
 53.1      (c) If, as a result of a reconsideration or review, the 
 53.2   investigating agency changes the final determination of 
 53.3   maltreatment, that agency shall notify the parties specified in 
 53.4   subdivisions 10b, 10d, and 10f. 
 53.5      (d) Except as provided under paragraph (f), if an 
 53.6   individual or facility contests the investigating agency's final 
 53.7   determination regarding maltreatment by requesting a fair 
 53.8   hearing under section 256.045, the commissioner of human 
 53.9   services shall assure that the hearing is conducted and a 
 53.10  decision is reached within 90 days of receipt of the request for 
 53.11  a hearing.  The time for action on the decision may be extended 
 53.12  for as many days as the hearing is postponed or the record is 
 53.13  held open for the benefit of either party. 
 53.14     (e) Effective January 1, 2002, if an individual was 
 53.15  disqualified under section 245A.04, subdivision 3d, on the basis 
 53.16  of a determination of maltreatment, which was serious or 
 53.17  recurring, and the individual has requested reconsideration of 
 53.18  the maltreatment determination under paragraph (a) and requested 
 53.19  reconsideration of the disqualification under section 245A.04, 
 53.20  subdivision 3b, reconsideration of the maltreatment 
 53.21  determination and reconsideration of the disqualification shall 
 53.22  be consolidated into a single reconsideration.  If 
 53.23  reconsideration of the maltreatment determination is denied or 
 53.24  the disqualification is not set aside or rescinded under section 
 53.25  245A.04, subdivision 3b, the individual may request a fair 
 53.26  hearing under section 256.045.  If an individual ~~disqualified on~~ 
 53.27  ~~the basis of a determination of maltreatment, which was serious~~ 
 53.28  ~~or recurring~~ requests a fair hearing ~~under paragraph (b)~~ on the 
 53.29  maltreatment determination and the disqualification, the scope 
 53.30  of the fair hearing shall include both the maltreatment 
 53.31  determination and the disqualification. 
 53.32     (f) Effective January 1, 2002, if a maltreatment 
 53.33  determination or a disqualification based on serious or 
 53.34  recurring maltreatment is the basis for a denial of a license 
 53.35  under section 245A.05 or a licensing sanction under section 
 53.36  245A.07, the license holder has the right to a contested case 
 54.1   hearing under chapter 14 and Minnesota Rules, parts 1400.8510 to 
 54.2   1400.8612 and successor rules.  As provided for under section 
 54.3   245A.08, subdivision 2a, the scope of the contested case hearing 
 54.4   shall include the maltreatment determination, disqualification, 
 54.5   and licensing sanction or denial of a license.  In such cases, a 
 54.6   fair hearing regarding the maltreatment determination shall not 
 54.7   be conducted under paragraph (b).  If the disqualified subject 
 54.8   is an individual other than the license holder and upon whom a 
 54.9   background study must be conducted under section 245A.04, 
 54.10  subdivision 3, the hearings of all parties may be consolidated 
 54.11  into a single contested case hearing upon consent of all parties 
 54.12  and the administrative law judge. 
 54.13     (g) For purposes of this subdivision, "interested person 
 54.14  acting on behalf of the child" means a parent or legal guardian; 
 54.15  stepparent; grandparent; guardian ad litem; adult stepbrother, 
 54.16  stepsister, or sibling; or adult aunt or uncle; unless the 
 54.17  person has been determined to be the perpetrator of the 
 54.18  maltreatment. 
 54.19     Sec. 25.  Minnesota Statutes 2000, section 626.557, 
 54.20  subdivision 3a, is amended to read: 
 54.21     Subd. 3a.  [REPORT NOT REQUIRED.] The following events are 
 54.22  not required to be reported under this section:  
 54.23     (a) A circumstance where federal law specifically prohibits 
 54.24  a person from disclosing patient identifying information in 
 54.25  connection with a report of suspected maltreatment, unless the 
 54.26  vulnerable adult, or the vulnerable adult's guardian, 
 54.27  conservator, or legal representative, has consented to 
 54.28  disclosure in a manner which conforms to federal requirements.  
 54.29  Facilities whose patients or residents are covered by such a 
 54.30  federal law shall seek consent to the disclosure of suspected 
 54.31  maltreatment from each patient or resident, or a guardian, 
 54.32  conservator, or legal representative, upon the patient's or 
 54.33  resident's admission to the facility.  Persons who are 
 54.34  prohibited by federal law from reporting an incident of 
 54.35  suspected maltreatment shall immediately seek consent to make a 
 54.36  report.  
 55.1      (b) Verbal or physical aggression occurring between 
 55.2   patients, residents, or clients of a facility, or self-abusive 
 55.3   behavior by these persons does not constitute abuse unless the 
 55.4   behavior causes serious harm.  The operator of the facility or a 
 55.5   designee shall record incidents of aggression and self-abusive 
 55.6   behavior to facilitate review by licensing agencies and county 
 55.7   and local welfare agencies. 
 55.8      (c) Accidents as defined in section 626.5572, subdivision 3.
 55.9      (d) Events occurring in a facility that result from an 
 55.10  individual's ~~single mistake~~ error in the provision of 
 55.11  therapeutic conduct to a vulnerable adult, as ~~defined~~ provided 
 55.12  in section 626.5572, subdivision 17, paragraph (c), clause (4). 
 55.13     (e) Nothing in this section shall be construed to require a 
 55.14  report of financial exploitation, as defined in section 
 55.15  626.5572, subdivision 9, solely on the basis of the transfer of 
 55.16  money or property by gift or as compensation for services 
 55.17  rendered. 
 55.18     Sec. 26.  Minnesota Statutes 2001 Supplement, section 
 55.19  626.557, subdivision 9d, is amended to read: 
 55.20     Subd. 9d.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
 55.21  DISPOSITION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
 55.22  SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
 55.23  provided under paragraph (e), any individual or facility which a 
 55.24  lead agency determines has maltreated a vulnerable adult, or the 
 55.25  vulnerable adult or an interested person acting on behalf of the 
 55.26  vulnerable adult, regardless of the lead agency's determination, 
 55.27  who contests the lead agency's final disposition of an 
 55.28  allegation of maltreatment, may request the lead agency to 
 55.29  reconsider its final disposition.  The request for 
 55.30  reconsideration must be submitted in writing to the lead agency 
 55.31  within 15 calendar days after receipt of notice of final 
 55.32  disposition or, if the request is made by an interested person 
 55.33  who is not entitled to notice, within 15 days after receipt of 
 55.34  the notice by the vulnerable adult or the vulnerable adult's 
 55.35  legal guardian.  An individual who was determined to have 
 55.36  maltreated a vulnerable adult under this section and who was 
 56.1   disqualified on the basis of serious or recurring maltreatment 
 56.2   under section 245A.04, subdivision 3d, may request 
 56.3   reconsideration of the maltreatment determination and the 
 56.4   disqualification.  The request for reconsideration of the 
 56.5   maltreatment determination and the disqualification must be 
 56.6   submitted within 30 calendar days of the individual's receipt of 
 56.7   the notice of disqualification under section 245A.04, 
 56.8   subdivision 3a. 
 56.9      (b) Except as provided under paragraphs (e) and (f), if the 
 56.10  lead agency denies the request or fails to act upon the request 
 56.11  within 15 calendar days after receiving the request for 
 56.12  reconsideration, the person or facility entitled to a fair 
 56.13  hearing under section 256.045, may submit to the commissioner of 
 56.14  human services a written request for a hearing under that 
 56.15  statute.  The vulnerable adult, or an interested person acting 
 56.16  on behalf of the vulnerable adult, may request a review by the 
 56.17  vulnerable adult maltreatment review panel under section 256.021 
 56.18  if the lead agency denies the request or fails to act upon the 
 56.19  request, or if the vulnerable adult or interested person 
 56.20  contests a reconsidered disposition.  The lead agency shall 
 56.21  notify persons who request reconsideration of their rights under 
 56.22  this paragraph.  The request must be submitted in writing to the 
 56.23  review panel and a copy sent to the lead agency within 30 
 56.24  calendar days of receipt of notice of a denial of a request for 
 56.25  reconsideration or of a reconsidered disposition.  The request 
 56.26  must specifically identify the aspects of the agency 
 56.27  determination with which the person is dissatisfied.  
 56.28     (c) If, as a result of a reconsideration or review, the 
 56.29  lead agency changes the final disposition, it shall notify the 
 56.30  parties specified in subdivision 9c, paragraph (d). 
 56.31     (d) For purposes of this subdivision, "interested person 
 56.32  acting on behalf of the vulnerable adult" means a person 
 56.33  designated in writing by the vulnerable adult to act on behalf 
 56.34  of the vulnerable adult, or a legal guardian or conservator or 
 56.35  other legal representative, a proxy or health care agent 
 56.36  appointed under chapter 145B or 145C, or an individual who is 
 57.1   related to the vulnerable adult, as defined in section 245A.02, 
 57.2   subdivision 13. 
 57.3      (e) If an individual was disqualified under section 
 57.4   245A.04, subdivision 3d, on the basis of a determination of 
 57.5   maltreatment, which was serious or recurring, and the individual 
 57.6   has requested reconsideration of the maltreatment determination 
 57.7   under paragraph (a) and reconsideration of the disqualification 
 57.8   under section 245A.04, subdivision 3b, reconsideration of the 
 57.9   maltreatment determination and requested reconsideration of the 
 57.10  disqualification shall be consolidated into a single 
 57.11  reconsideration.  If reconsideration of the maltreatment 
 57.12  determination is denied or if the disqualification is not set 
 57.13  aside or rescinded under section 245A.04, subdivision 3b, the 
 57.14  individual may request a fair hearing under section 256.045.  If 
 57.15  an individual ~~who was disqualified on the basis of serious or~~ 
 57.16  ~~recurring maltreatment~~ requests a fair hearing ~~under paragraph~~ 
 57.17  ~~(b)~~ on the maltreatment determination and the disqualification, 
 57.18  the scope of the fair hearing shall include both the 
 57.19  maltreatment determination and the disqualification. 
 57.20     (f) If a maltreatment determination or a disqualification 
 57.21  based on serious or recurring maltreatment is the basis for a 
 57.22  denial of a license under section 245A.05 or a licensing 
 57.23  sanction under section 245A.07, the license holder has the right 
 57.24  to a contested case hearing under chapter 14 and Minnesota 
 57.25  Rules, parts 1400.8510 to 1400.8612 and successor rules.  As 
 57.26  provided for under section 245A.08, the scope of the contested 
 57.27  case hearing shall include the maltreatment determination, 
 57.28  disqualification, and licensing sanction or denial of a 
 57.29  license.  In such cases, a fair hearing shall not be conducted 
 57.30  under paragraph (b).  If the disqualified subject is an 
 57.31  individual other than the license holder and upon whom a 
 57.32  background study must be conducted under section 245A.04, 
 57.33  subdivision 3, the hearings of all parties may be consolidated 
 57.34  into a single contested case hearing upon consent of all parties 
 57.35  and the administrative law judge. 
 57.36     (g) Until August 1, 2002, an individual or facility that 
 58.1   was determined by the commissioner of human services or the 
 58.2   commissioner of health to be responsible for neglect under 
 58.3   section 626.5572, subdivision 17, after October 1, 1995, and 
 58.4   before August 1, 2001, that believes that the finding of neglect 
 58.5   does not meet an amended definition of neglect may request a 
 58.6   reconsideration of the determination of neglect.  The 
 58.7   commissioner of human services or the commissioner of health 
 58.8   shall mail a notice to the last known address of individuals who 
 58.9   are eligible to seek this reconsideration.  The request for 
 58.10  reconsideration must state how the established findings no 
 58.11  longer meet the elements of the definition of neglect.  The 
 58.12  commissioner shall review the request for reconsideration and 
 58.13  make a determination within 15 calendar days.  The 
 58.14  commissioner's decision on this reconsideration is the final 
 58.15  agency action. 
 58.16     (1) For purposes of compliance with the data destruction 
 58.17  schedule under subdivision 12b, paragraph (d), when a finding of 
 58.18  substantiated maltreatment has been changed as a result of a 
 58.19  reconsideration under this paragraph, the date of the original 
 58.20  finding of a substantiated maltreatment must be used to 
 58.21  calculate the destruction date. 
 58.22     (2) For purposes of any background studies under section 
 58.23  245A.04, when a determination of substantiated maltreatment has 
 58.24  been changed as a result of a reconsideration under this 
 58.25  paragraph, any prior disqualification of the individual under 
 58.26  section 245A.04 that was based on this determination of 
 58.27  maltreatment shall be rescinded, and for future background 
 58.28  studies under section 245A.04 the commissioner must not use the 
 58.29  previous determination of substantiated maltreatment as a basis 
 58.30  for disqualification or as a basis for referring the 
 58.31  individual's maltreatment history to a health-related licensing 
 58.32  board under section 245A.04, subdivision 3d, paragraph (b). 
 58.33     Sec. 27.  Minnesota Statutes 2000, section 626.557, 
 58.34  subdivision 14, is amended to read: 
 58.35     Subd. 14.  [ABUSE PREVENTION PLANS.] (a) Each facility, 
 58.36  except home health agencies and personal care attendant services 
 59.1   providers, shall establish and enforce an ongoing written abuse 
 59.2   prevention plan.  The plan shall contain an assessment of the 
 59.3   physical plant, its environment, and its population identifying 
 59.4   factors which may encourage or permit abuse, and a statement of 
 59.5   specific measures to be taken to minimize the risk of abuse.  
 59.6   The plan shall comply with any rules governing the plan 
 59.7   promulgated by the licensing agency.  
 59.8      (b) Each facility, including a home health care agency and 
 59.9   personal care attendant services providers, shall develop an 
 59.10  individual abuse prevention plan for each vulnerable adult 
 59.11  residing there or receiving services from them.  The plan shall 
 59.12  contain an individualized assessment of the person's 
 59.13  susceptibility to abuse by other individuals, including other 
 59.14  vulnerable adults, and a statement of the specific measures to 
 59.15  be taken to minimize the risk of abuse to that person.  For the 
 59.16  purposes of this clause, the term "abuse" includes self-abuse. 
 59.17     Sec. 28.  [REPEALER.] 
 59.18     Minnesota Statutes 2000, section 147B.01, subdivisions 8 
 59.19  and 15, are repealed. 
 59.20                             ARTICLE 2 
 59.21                      CONTINUING CARE PROGRAMS 
 59.22     Section 1.  Minnesota Statutes 2001 Supplement, section 
 59.23  144A.071, subdivision 1a, is amended to read: 
 59.24     Subd. 1a.  [DEFINITIONS.] For purposes of sections 144A.071 
 59.25  to 144A.073, the following terms have the meanings given them: 
 59.26     (a) "Attached fixtures" has the meaning given in Minnesota 
 59.27  Rules, part 9549.0020, subpart 6. 
 59.28     (b) "Buildings" has the meaning given in Minnesota Rules, 
 59.29  part 9549.0020, subpart 7. 
 59.30     (c) "Capital assets" has the meaning given in section 
 59.31  256B.421, subdivision 16. 
 59.32     (d) "Commenced construction" means that all of the 
 59.33  following conditions were met:  the final working drawings and 
 59.34  specifications were approved by the commissioner of health; the 
 59.35  construction contracts were let; a timely construction schedule 
 59.36  was developed, stipulating dates for beginning, achieving 
 60.1   various stages, and completing construction; and all zoning and 
 60.2   building permits were applied for. 
 60.3      (e) "Completion date" means the date on which a certificate 
 60.4   of occupancy is issued for a construction project, or if a 
 60.5   certificate of occupancy is not required, the date on which the 
 60.6   construction project is available for facility use. 
 60.7      (f) "Construction" means any erection, building, 
 60.8   alteration, reconstruction, modernization, or improvement 
 60.9   necessary to comply with the nursing home licensure rules. 
 60.10     (g) "Construction project" means: 
 60.11     (1) a capital asset addition to, or replacement of a 
 60.12  nursing home or certified boarding care home that results in new 
 60.13  space or the remodeling of or renovations to existing facility 
 60.14  space; 
 60.15     (2) the remodeling or renovation of existing facility space 
 60.16  the use of which is modified as a result of the project 
 60.17  described in clause (1).  This existing space and the project 
 60.18  described in clause (1) must be used for the functions as 
 60.19  designated on the construction plans on completion of the 
 60.20  project described in clause (1) for a period of not less than 24 
 60.21  months; or 
 60.22     (3) capital asset additions or replacements that are 
 60.23  completed within 12 months before or after the completion date 
 60.24  of the project described in clause (1). 
 60.25     (h) "New licensed" or "new certified beds" means: 
 60.26     (1) newly constructed beds in a facility or the 
 60.27  construction of a new facility that would increase the total 
 60.28  number of licensed nursing home beds or certified boarding care 
 60.29  or nursing home beds in the state; or 
 60.30     (2) newly licensed nursing home beds or newly certified 
 60.31  boarding care or nursing home beds that result from remodeling 
 60.32  of the facility that involves relocation of beds but does not 
 60.33  result in an increase in the total number of beds, except when 
 60.34  the project involves the upgrade of boarding care beds to 
 60.35  nursing home beds, as defined in section 144A.073, subdivision 
 60.36  1.  "Remodeling" includes any of the type of conversion, 
 61.1   renovation, replacement, or upgrading projects as defined in 
 61.2   section 144A.073, subdivision 1. 
 61.3      (i) "Project construction costs" means the cost of the 
 61.4   facility capital asset additions, replacements, renovations, or 
 61.5   remodeling projects, construction site preparation costs, and 
 61.6   related soft costs.  Project construction costs include the cost 
 61.7   of any remodeling or renovation of existing facility space which 
 61.8   is modified as a result of the construction project.  Project 
 61.9   construction costs also includes the cost of new technology 
 61.10  implemented as part of the construction project.  Project 
 61.11  construction costs also include the cost of new technology 
 61.12  implemented as part of the construction project and depreciable 
 61.13  equipment directly identified to the project.  Any new 
 61.14  technology and depreciable equipment included in the project 
 61.15  construction costs shall, at the written election of the 
 61.16  facility, be included in the facility's appraised value for 
 61.17  purposes of Minnesota Rules, part 9549.0020, subpart 5, and debt 
 61.18  incurred for its purchase shall be included as allowable debt 
 61.19  for purposes of Minnesota Rules, part 9549.0060, subpart 5, 
 61.20  items A and C.  Any new technology and depreciable equipment 
 61.21  included in the project construction costs that the facility 
 61.22  elects not to include in its appraised value and allowable debts 
 61.23  shall be treated as provided in section 256B.431, subdivision 
 61.24  17, paragraph (b).  Written election under this paragraph must 
 61.25  be included in the facility's request for the rate change 
 61.26  related to the project, and this election may not be changed. 
 61.27     (j) "Technology" means information systems or devices that 
 61.28  make documentation, charting, and staff time more efficient or 
 61.29  encourage and allow for care through alternative settings 
 61.30  including, but not limited to, touch screens, monitors, 
 61.31  hand-helds, swipe cards, motion detectors, pagers, telemedicine, 
 61.32  medication dispensers, and equipment to monitor vital signs and 
 61.33  self-injections, and to observe skin and other conditions. 
 61.34     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
 61.35  144A.36, subdivision 1, is amended to read: 
 61.36     Subdivision 1.  [DEFINITIONS.] "Eligible nursing home" 
 62.1   means any nursing home licensed under sections 144A.01 to 
 62.2   144A.155 ~~and~~ or a boarding care facility, certified by the 
 62.3   appropriate authority under United States Code, title 42, 
 62.4   sections 1396-1396p, to participate as a vendor in the medical 
 62.5   assistance program established under chapter 256B. 
 62.6      Sec. 3.  Minnesota Statutes 2000, section 256.9657, 
 62.7   subdivision 1, is amended to read: 
 62.8      Subdivision 1.  [NURSING HOME LICENSE SURCHARGE.] (a) 
 62.9   Effective July 1, 1993, each non-state-operated nursing home 
 62.10  licensed under chapter 144A shall pay to the commissioner an 
 62.11  annual surcharge according to the schedule in subdivision 4.  
 62.12  The surcharge shall be calculated as $620 per licensed bed.  If 
 62.13  the number of licensed beds is reduced, the surcharge shall be 
 62.14  based on the number of remaining licensed beds the second month 
 62.15  following the receipt of timely notice by the commissioner of 
 62.16  human services that beds have been delicensed.  The nursing home 
 62.17  must notify the commissioner of health in writing when beds are 
 62.18  delicensed.  The commissioner of health must notify the 
 62.19  commissioner of human services within ten working days after 
 62.20  receiving written notification.  If the notification is received 
 62.21  by the commissioner of human services by the 15th of the month, 
 62.22  the invoice for the second following month must be reduced to 
 62.23  recognize the delicensing of beds.  Beds on layaway status 
 62.24  continue to be subject to the surcharge.  The commissioner of 
 62.25  human services must acknowledge a medical care surcharge appeal 
 62.26  within 30 days of receipt of the written appeal from the 
 62.27  provider. 
 62.28     (b) Effective July 1, 1994, the surcharge in paragraph (a) 
 62.29  shall be increased to $625. 
 62.30     (c) Between March 1, 2002, and August 15, 2003, a facility 
 62.31  governed by this subdivision may elect to assume full 
 62.32  participation in the medical assistance program by agreeing to 
 62.33  comply with all of the requirements of the medical assistance 
 62.34  program, including the rate equalization law in section 256B.48, 
 62.35  subdivision 1, paragraph (a), and all other requirements 
 62.36  established in law or rule, and to begin intake of new medical 
 63.1   assistance recipients.  Rates will be determined under Minnesota 
 63.2   Rules, parts 9549.0010 to 9549.0080.  Notwithstanding section 
 63.3   256B.431, subdivision 27, paragraph (i), rate calculations will 
 63.4   be subject to limits as prescribed in rule and law.  Other than 
 63.5   the adjustments in sections 256B.431, subdivisions 30 and 32; 
 63.6   256B.437, subdivision 3, paragraph (b); Minnesota Rules, part 
 63.7   9549.0057, and any other applicable legislation enacted prior to 
 63.8   the finalization of rates, facilities assuming full 
 63.9   participation in medical assistance under this paragraph are not 
 63.10  eligible for any rate adjustments until the July 1 following 
 63.11  their settle-up period. 
 63.12     Sec. 4.  Minnesota Statutes 2000, section 245.462, 
 63.13  subdivision 4, is amended to read: 
 63.14     Subd. 4.  [CASE MANAGEMENT SERVICE PROVIDER.] (a) "Case 
 63.15  management service provider" means a case manager or case 
 63.16  manager associate employed by the county or other entity 
 63.17  authorized by the county board to provide case management 
 63.18  services specified in section 245.4711.  
 63.19     (b) A case manager must: 
 63.20     (1) be skilled in the process of identifying and assessing 
 63.21  a wide range of client needs; 
 63.22     (2) be knowledgeable about local community resources and 
 63.23  how to use those resources for the benefit of the client; 
 63.24     (3) have a bachelor's degree in one of the behavioral 
 63.25  sciences or related fields including, but not limited to, social 
 63.26  work, psychology, or nursing from an accredited college or 
 63.27  university or meet the requirements of paragraph (c); and 
 63.28     (4) meet the supervision and continuing education 
 63.29  requirements described in paragraphs (d), (e), and (f), as 
 63.30  applicable.  
 63.31     (c) Case managers without a bachelor's degree must meet one 
 63.32  of the requirements in clauses (1) to (3):  
 63.33     (1) have three or four years of experience as a case 
 63.34  manager associate as defined in this section; 
 63.35     (2) be a registered nurse without a bachelor's degree and 
 63.36  have a combination of specialized training in psychiatry and 
 64.1   work experience consisting of community interaction and 
 64.2   involvement or community discharge planning in a mental health 
 64.3   setting totaling three years; or 
 64.4      (3) be a person who qualified as a case manager under the 
 64.5   1998 department of human service waiver provision and meet the 
 64.6   continuing education and mentoring requirements in this section. 
 64.7      (d) A case manager with at least 2,000 hours of supervised 
 64.8   experience in the delivery of services to adults with mental 
 64.9   illness must receive regular ongoing supervision and clinical 
 64.10  supervision totaling 38 hours per year of which at least one 
 64.11  hour per month must be clinical supervision regarding individual 
 64.12  service delivery with a case management supervisor.  The 
 64.13  remaining 26 hours of supervision may be provided by a case 
 64.14  manager with two years of experience.  Group supervision may not 
 64.15  constitute more than one-half of the required supervision 
 64.16  hours.  Clinical supervision must be documented in the client 
 64.17  record. 
 64.18     (e) A case manager without 2,000 hours of supervised 
 64.19  experience in the delivery of services to adults with mental 
 64.20  illness must: 
 64.21     (1) receive clinical supervision regarding individual 
 64.22  service delivery from a mental health professional at least one 
 64.23  hour per week until the requirement of 2,000 hours of experience 
 64.24  is met; and 
 64.25     (2) complete 40 hours of training approved by the 
 64.26  commissioner in case management skills and the characteristics 
 64.27  and needs of adults with serious and persistent mental illness.  
 64.28     (f) A case manager who is not licensed, registered, or 
 64.29  certified by a health-related licensing board must receive 30 
 64.30  hours of continuing education and training in mental illness and 
 64.31  mental health services ~~annually~~ every two years. 
 64.32     (g) A case manager associate (CMA) must: 
 64.33     (1) work under the direction of a case manager or case 
 64.34  management supervisor; 
 64.35     (2) be at least 21 years of age; 
 64.36     (3) have at least a high school diploma or its equivalent; 
 65.1   and 
 65.2      (4) meet one of the following criteria: 
 65.3      (i) have an associate of arts degree in one of the 
 65.4   behavioral sciences or human services; 
 65.5      (ii) be a registered nurse without a bachelor's degree; 
 65.6      (iii) within the previous ten years, have three years of 
 65.7   life experience with serious and persistent mental illness as 
 65.8   defined in section 245.462, subdivision 20; or as a child had 
 65.9   severe emotional disturbance as defined in section 245.4871, 
 65.10  subdivision 6; or have three years life experience as a primary 
 65.11  caregiver to an adult with serious and persistent mental illness 
 65.12  within the previous ten years; 
 65.13     (iv) have 6,000 hours work experience as a nondegreed state 
 65.14  hospital technician; or 
 65.15     (v) be a mental health practitioner as defined in section 
 65.16  245.462, subdivision 17, clause (2). 
 65.17     Individuals meeting one of the criteria in items (i) to 
 65.18  (iv), may qualify as a case manager after four years of 
 65.19  supervised work experience as a case manager associate.  
 65.20  Individuals meeting the criteria in item (v), may qualify as a 
 65.21  case manager after three years of supervised experience as a 
 65.22  case manager associate. 
 65.23     (h) A case management associate must meet the following 
 65.24  supervision, mentoring, and continuing education requirements:  
 65.25     (1) have 40 hours of preservice training described under 
 65.26  paragraph (e), clause (2); 
 65.27     (2) receive at least 40 hours of continuing education in 
 65.28  mental illness and mental health services annually; and 
 65.29     (3) receive at least five hours of mentoring per week from 
 65.30  a case management mentor.  
 65.31  A "case management mentor" means a qualified, practicing case 
 65.32  manager or case management supervisor who teaches or advises and 
 65.33  provides intensive training and clinical supervision to one or 
 65.34  more case manager associates.  Mentoring may occur while 
 65.35  providing direct services to consumers in the office or in the 
 65.36  field and may be provided to individuals or groups of case 
 66.1   manager associates.  At least two mentoring hours per week must 
 66.2   be individual and face-to-face. 
 66.3      (i) A case management supervisor must meet the criteria for 
 66.4   mental health professionals, as specified in section 245.462, 
 66.5   subdivision 18. 
 66.6      (j) An immigrant who does not have the qualifications 
 66.7   specified in this subdivision may provide case management 
 66.8   services to adult immigrants with serious and persistent mental 
 66.9   illness who are members of the same ethnic group as the case 
 66.10  manager if the person:  
 66.11     (1) is currently enrolled in and is actively pursuing 
 66.12  credits toward the completion of a bachelor's degree in one of 
 66.13  the behavioral sciences or a related field including, but not 
 66.14  limited to, social work, psychology, or nursing from an 
 66.15  accredited college or university; 
 66.16     (2) completes 40 hours of training as specified in this 
 66.17  subdivision; and 
 66.18     (3) receives clinical supervision at least once a week 
 66.19  until the requirements of this subdivision are met. 
 66.20     Sec. 5.  Minnesota Statutes 2000, section 245.4871, 
 66.21  subdivision 4, is amended to read: 
 66.22     Subd. 4.  [CASE MANAGEMENT SERVICE PROVIDER.] (a) "Case 
 66.23  management service provider" means a case manager or case 
 66.24  manager associate employed by the county or other entity 
 66.25  authorized by the county board to provide case management 
 66.26  services specified in subdivision 3 for the child with severe 
 66.27  emotional disturbance and the child's family.  
 66.28     (b) A case manager must: 
 66.29     (1) have experience and training in working with children; 
 66.30     (2) have at least a bachelor's degree in one of the 
 66.31  behavioral sciences or a related field including, but not 
 66.32  limited to, social work, psychology, or nursing from an 
 66.33  accredited college or university or meet the requirements of 
 66.34  paragraph (d); 
 66.35     (3) have experience and training in identifying and 
 66.36  assessing a wide range of children's needs; 
 67.1      (4) be knowledgeable about local community resources and 
 67.2   how to use those resources for the benefit of children and their 
 67.3   families; and 
 67.4      (5) meet the supervision and continuing education 
 67.5   requirements of paragraphs (e), (f), and (g), as applicable. 
 67.6      (c) A case manager may be a member of any professional 
 67.7   discipline that is part of the local system of care for children 
 67.8   established by the county board. 
 67.9      (d) A case manager without a bachelor's degree must meet 
 67.10  one of the requirements in clauses (1) to (3):  
 67.11     (1) have three or four years of experience as a case 
 67.12  manager associate; 
 67.13     (2) be a registered nurse without a bachelor's degree who 
 67.14  has a combination of specialized training in psychiatry and work 
 67.15  experience consisting of community interaction and involvement 
 67.16  or community discharge planning in a mental health setting 
 67.17  totaling three years; or 
 67.18     (3) be a person who qualified as a case manager under the 
 67.19  1998 department of human services waiver provision and meets the 
 67.20  continuing education, supervision, and mentoring requirements in 
 67.21  this section. 
 67.22     (e) A case manager with at least 2,000 hours of supervised 
 67.23  experience in the delivery of mental health services to children 
 67.24  must receive regular ongoing supervision and clinical 
 67.25  supervision totaling 38 hours per year, of which at least one 
 67.26  hour per month must be clinical supervision regarding individual 
 67.27  service delivery with a case management supervisor.  The other 
 67.28  26 hours of supervision may be provided by a case manager with 
 67.29  two years of experience.  Group supervision may not constitute 
 67.30  more than one-half of the required supervision hours. 
 67.31     (f) A case manager without 2,000 hours of supervised 
 67.32  experience in the delivery of mental health services to children 
 67.33  with emotional disturbance must: 
 67.34     (1) begin 40 hours of training approved by the commissioner 
 67.35  of human services in case management skills and in the 
 67.36  characteristics and needs of children with severe emotional 
 68.1   disturbance before beginning to provide case management 
 68.2   services; and 
 68.3      (2) receive clinical supervision regarding individual 
 68.4   service delivery from a mental health professional at least one 
 68.5   hour each week until the requirement of 2,000 hours of 
 68.6   experience is met. 
 68.7      (g) A case manager who is not licensed, registered, or 
 68.8   certified by a health-related licensing board must receive 30 
 68.9   hours of continuing education and training in severe emotional 
 68.10  disturbance and mental health services ~~annually~~ every two years. 
 68.11     (h) Clinical supervision must be documented in the child's 
 68.12  record.  When the case manager is not a mental health 
 68.13  professional, the county board must provide or contract for 
 68.14  needed clinical supervision. 
 68.15     (i) The county board must ensure that the case manager has 
 68.16  the freedom to access and coordinate the services within the 
 68.17  local system of care that are needed by the child. 
 68.18     (j) A case manager associate (CMA) must: 
 68.19     (1) work under the direction of a case manager or case 
 68.20  management supervisor; 
 68.21     (2) be at least 21 years of age; 
 68.22     (3) have at least a high school diploma or its equivalent; 
 68.23  and 
 68.24     (4) meet one of the following criteria: 
 68.25     (i) have an associate of arts degree in one of the 
 68.26  behavioral sciences or human services; 
 68.27     (ii) be a registered nurse without a bachelor's degree; 
 68.28     (iii) have three years of life experience as a primary 
 68.29  caregiver to a child with serious emotional disturbance as 
 68.30  defined in section 245.4871, subdivision 6, within the previous 
 68.31  ten years; 
 68.32     (iv) have 6,000 hours work experience as a nondegreed state 
 68.33  hospital technician; or 
 68.34     (v) be a mental health practitioner as defined in 
 68.35  subdivision 26, clause (2). 
 68.36     Individuals meeting one of the criteria in items (i) to 
 69.1   (iv) may qualify as a case manager after four years of 
 69.2   supervised work experience as a case manager associate.  
 69.3   Individuals meeting the criteria in item (v) may qualify as a 
 69.4   case manager after three years of supervised experience as a 
 69.5   case manager associate. 
 69.6      (k) Case manager associates must meet the following 
 69.7   supervision, mentoring, and continuing education requirements; 
 69.8      (1) have 40 hours of preservice training described under 
 69.9   paragraph (f), clause (1); 
 69.10     (2) receive at least 40 hours of continuing education in 
 69.11  severe emotional disturbance and mental health service annually; 
 69.12  and 
 69.13     (3) receive at least five hours of mentoring per week from 
 69.14  a case management mentor.  A "case management mentor" means a 
 69.15  qualified, practicing case manager or case management supervisor 
 69.16  who teaches or advises and provides intensive training and 
 69.17  clinical supervision to one or more case manager associates.  
 69.18  Mentoring may occur while providing direct services to consumers 
 69.19  in the office or in the field and may be provided to individuals 
 69.20  or groups of case manager associates.  At least two mentoring 
 69.21  hours per week must be individual and face-to-face. 
 69.22     (l) A case management supervisor must meet the criteria for 
 69.23  a mental health professional as specified in section 245.4871, 
 69.24  subdivision 27. 
 69.25     (m) An immigrant who does not have the qualifications 
 69.26  specified in this subdivision may provide case management 
 69.27  services to child immigrants with severe emotional disturbance 
 69.28  of the same ethnic group as the immigrant if the person:  
 69.29     (1) is currently enrolled in and is actively pursuing 
 69.30  credits toward the completion of a bachelor's degree in one of 
 69.31  the behavioral sciences or related fields at an accredited 
 69.32  college or university; 
 69.33     (2) completes 40 hours of training as specified in this 
 69.34  subdivision; and 
 69.35     (3) receives clinical supervision at least once a week 
 69.36  until the requirements of obtaining a bachelor's degree and 
 70.1   2,000 hours of supervised experience are met. 
 70.2      Sec. 6.  Minnesota Statutes 2000, section 245.50, 
 70.3   subdivision 1, is amended to read: 
 70.4      Subdivision 1.  [DEFINITIONS.] For purposes of this 
 70.5   section, the following terms have the meanings given them. 
 70.6      (a) "Bordering state" means Iowa, North Dakota, South 
 70.7   Dakota, or Wisconsin. 
 70.8      (b) "Receiving agency ~~or facility~~" means a public or 
 70.9   private hospital, mental health center, or other person or 
 70.10  organization ~~authorized by a state to provide~~ which provides 
 70.11  mental health services under this section to individuals from a 
 70.12  state other than the state in which the agency is located. 
 70.13     (c) "Receiving state" means the state in which a receiving 
 70.14  agency is located. 
 70.15     (d) "Sending agency" means a state or county agency which 
 70.16  sends an individual to a bordering state for treatment under 
 70.17  this section. 
 70.18     (e) "Sending state" means the state in which the sending 
 70.19  agency is located. 
 70.20     Sec. 7.  Minnesota Statutes 2000, section 245.50, 
 70.21  subdivision 2, is amended to read: 
 70.22     Subd. 2.  [PURPOSE AND AUTHORITY.] (a) The purpose of this 
 70.23  section is to enable appropriate treatment to be provided to 
 70.24  individuals, across state lines from the individual's state of 
 70.25  residence, in qualified facilities that are closer to the homes 
 70.26  of individuals than are facilities available in the individual's 
 70.27  home state. 
 70.28     (b) Unless prohibited by another law and subject to the 
 70.29  exceptions listed in subdivision 3, a county board or the 
 70.30  commissioner of human services may contract with an agency or 
 70.31  facility in a bordering state for mental health services for 
 70.32  residents of Minnesota, and a Minnesota mental health agency or 
 70.33  facility may contract to provide services to residents of 
 70.34  bordering states.  Except as provided in subdivision 5, a person 
 70.35  who receives services in another state under this section is 
 70.36  subject to the laws of the state in which services are 
 71.1   provided.  A person who will receive services in another state 
 71.2   under this section must be informed of the consequences of 
 71.3   receiving services in another state, including the implications 
 71.4   of the differences in state laws, to the extent the individual 
 71.5   will be subject to the laws of the receiving state. 
 71.6      Sec. 8.  Minnesota Statutes 2000, section 245.50, 
 71.7   subdivision 5, is amended to read: 
 71.8      Subd. 5.  [SPECIAL CONTRACTS; ~~WISCONSIN~~ BORDERING 
 71.9   STATES.] ~~The commissioner of the Minnesota department of human~~ 
 71.10  ~~services must enter into negotiations with appropriate personnel~~ 
 71.11  ~~at the Wisconsin department of health and social services and~~ 
 71.12  ~~must develop an agreement that conforms to the requirements of~~ 
 71.13  ~~subdivision 4, to enable the placement in Minnesota of patients~~ 
 71.14  ~~who are on emergency holds or who have been involuntarily~~ 
 71.15  ~~committed as mentally ill or chemically dependent in Wisconsin~~ 
 71.16  ~~and to enable the temporary placement in Wisconsin of patients~~ 
 71.17  ~~who are on emergency holds in Minnesota under section 253B.05,~~ 
 71.18  ~~provided that the Minnesota courts retain jurisdiction over~~ 
 71.19  ~~Minnesota patients, and the state of Wisconsin affords to~~ 
 71.20  ~~Minnesota patients the rights under Minnesota law.  Persons~~ 
 71.21  ~~committed by the Wisconsin courts and placed in Minnesota~~ 
 71.22  ~~facilities shall continue to be in the legal custody of~~ 
 71.23  ~~Wisconsin and Wisconsin's laws governing length of commitment,~~ 
 71.24  ~~reexaminations, and extension of commitment shall continue to~~ 
 71.25  ~~apply to these residents.  In all other respects, Wisconsin~~ 
 71.26  ~~residents placed in Minnesota facilities are subject to~~ 
 71.27  ~~Minnesota laws.  The agreement must specify that responsibility~~ 
 71.28  ~~for payment for the cost of care of Wisconsin residents shall~~ 
 71.29  ~~remain with the state of Wisconsin and the cost of care of~~ 
 71.30  ~~Minnesota residents shall remain with the state of Minnesota.~~  
 71.31  ~~The commissioner shall be assisted by attorneys from the~~ 
 71.32  ~~Minnesota attorney general's office in negotiating and~~ 
 71.33  ~~finalizing this agreement.  The agreement shall be completed so~~ 
 71.34  ~~as to permit placement of Wisconsin residents in Minnesota~~ 
 71.35  ~~facilities and Minnesota residents in Wisconsin facilities~~ 
 71.36  ~~beginning July 1, 1994.~~ (a) An individual who is detained, 
 72.1   committed, or placed on an involuntary basis under chapter 253B 
 72.2   may be confined or treated in a bordering state pursuant to a 
 72.3   contract under this section.  An individual who is detained, 
 72.4   committed, or placed on an involuntary basis under the civil law 
 72.5   of a bordering state may be confined or treated in Minnesota 
 72.6   pursuant to a contract under this section.  A peace or health 
 72.7   officer who is acting under the authority of the sending state 
 72.8   may transport an individual to a receiving agency that provides 
 72.9   services pursuant to a contract under this section, and may 
 72.10  transport the individual back to the sending state under the 
 72.11  laws of the sending state.  Court orders valid under the law of 
 72.12  the sending state are granted recognition and reciprocity in the 
 72.13  receiving state for individuals covered by a contract under this 
 72.14  section to the extent that the court orders relate to 
 72.15  confinement for treatment or care of mental illness.  Such 
 72.16  treatment or care may address other conditions that may be 
 72.17  co-occurring with the mental illness.  These court orders are 
 72.18  not subject to legal challenge in the courts of the receiving 
 72.19  state.  Individuals who are detained, committed, or placed under 
 72.20  the law of a sending state and who are transferred to a 
 72.21  receiving state under this section continue to be in the legal 
 72.22  custody of the authority responsible for them under the law of 
 72.23  the sending state.  Except in emergencies, those individuals may 
 72.24  not be transferred, removed, or furloughed from a receiving 
 72.25  agency without the specific approval of the authority 
 72.26  responsible for them under the law of the sending state. 
 72.27     (b) While in the receiving state pursuant to a contract 
 72.28  under this section, an individual shall be subject to the 
 72.29  sending state's laws and rules relating to length of 
 72.30  confinement, reexaminations, and extensions of confinement.  No 
 72.31  individual may be sent to another state pursuant to a contract 
 72.32  under this section until the receiving state has enacted a law 
 72.33  recognizing the validity and applicability of this section. 
 72.34     (c) If an individual receiving services pursuant to a 
 72.35  contract under this section leaves the receiving agency without 
 72.36  permission and the individual is subject to involuntary 
 73.1   confinement under the law of the sending state, the receiving 
 73.2   agency shall use all reasonable means to return the individual 
 73.3   to the receiving agency.  The receiving agency shall immediately 
 73.4   report the absence to the sending agency.  The receiving state 
 73.5   has the primary responsibility for, and the authority to direct, 
 73.6   the return of these individuals within its borders and is liable 
 73.7   for the cost of the action to the extent that it would be liable 
 73.8   for costs of its own resident. 
 73.9      (d) Responsibility for payment for the cost of care remains 
 73.10  with the sending agency. 
 73.11     (e) This subdivision also applies to county contracts under 
 73.12  subdivision 2 which include emergency care and treatment 
 73.13  provided to a county resident in a bordering state. 
 73.14     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
 73.15  256B.0625, subdivision 13, is amended to read: 
 73.16     Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
 73.17  except for fertility drugs when specifically used to enhance 
 73.18  fertility, if prescribed by a licensed practitioner and 
 73.19  dispensed by a licensed pharmacist, by a physician enrolled in 
 73.20  the medical assistance program as a dispensing physician, or by 
 73.21  a physician or a nurse practitioner employed by or under 
 73.22  contract with a community health board as defined in section 
 73.23  145A.02, subdivision 5, for the purposes of communicable disease 
 73.24  control.  The commissioner, after receiving recommendations from 
 73.25  professional medical associations and professional pharmacist 
 73.26  associations, shall designate a formulary committee to advise 
 73.27  the commissioner on the names of drugs for which payment is 
 73.28  made, recommend a system for reimbursing providers on a set fee 
 73.29  or charge basis rather than the present system, and develop 
 73.30  methods encouraging use of generic drugs when they are less 
 73.31  expensive and equally effective as trademark drugs.  The 
 73.32  formulary committee shall consist of nine members, four of whom 
 73.33  shall be physicians who are not employed by the department of 
 73.34  human services, and a majority of whose practice is for persons 
 73.35  paying privately or through health insurance, three of whom 
 73.36  shall be pharmacists who are not employed by the department of 
 74.1   human services, and a majority of whose practice is for persons 
 74.2   paying privately or through health insurance, a consumer 
 74.3   representative, and a nursing home representative.  Committee 
 74.4   members shall serve three-year terms and shall serve without 
 74.5   compensation.  Members may be reappointed once.  
 74.6      (b) The commissioner shall establish a drug formulary.  Its 
 74.7   establishment and publication shall not be subject to the 
 74.8   requirements of the Administrative Procedure Act, but the 
 74.9   formulary committee shall review and comment on the formulary 
 74.10  contents.  The formulary committee shall review and recommend 
 74.11  drugs which require prior authorization.  The formulary 
 74.12  committee may recommend drugs for prior authorization directly 
 74.13  to the commissioner, as long as opportunity for public input is 
 74.14  provided.  Prior authorization may be requested by the 
 74.15  commissioner based on medical and clinical criteria before 
 74.16  certain drugs are eligible for payment.  Before a drug may be 
 74.17  considered for prior authorization at the request of the 
 74.18  commissioner:  
 74.19     (1) the drug formulary committee must develop criteria to 
 74.20  be used for identifying drugs; the development of these criteria 
 74.21  is not subject to the requirements of chapter 14, but the 
 74.22  formulary committee shall provide opportunity for public input 
 74.23  in developing criteria; 
 74.24     (2) the drug formulary committee must hold a public forum 
 74.25  and receive public comment for an additional 15 days; and 
 74.26     (3) the commissioner must provide information to the 
 74.27  formulary committee on the impact that placing the drug on prior 
 74.28  authorization will have on the quality of patient care and 
 74.29  information regarding whether the drug is subject to clinical 
 74.30  abuse or misuse.  Prior authorization may be required by the 
 74.31  commissioner before certain formulary drugs are eligible for 
 74.32  payment.  The formulary shall not include:  
 74.33     (i) drugs or products for which there is no federal 
 74.34  funding; 
 74.35     (ii) over-the-counter drugs, except for antacids, 
 74.36  acetaminophen, family planning products, aspirin, insulin, 
 75.1   products for the treatment of lice, vitamins for adults with 
 75.2   documented vitamin deficiencies, vitamins for children under the 
 75.3   age of seven and pregnant or nursing women, and any other 
 75.4   over-the-counter drug identified by the commissioner, in 
 75.5   consultation with the drug formulary committee, as necessary, 
 75.6   appropriate, and cost-effective for the treatment of certain 
 75.7   specified chronic diseases, conditions or disorders, and this 
 75.8   determination shall not be subject to the requirements of 
 75.9   chapter 14; 
 75.10     (iii) anorectics, except that medically necessary 
 75.11  anorectics shall be covered for a recipient previously diagnosed 
 75.12  as having pickwickian syndrome and currently diagnosed as having 
 75.13  diabetes and being morbidly obese; 
 75.14     (iv) drugs for which medical value has not been 
 75.15  established; and 
 75.16     (v) drugs from manufacturers who have not signed a rebate 
 75.17  agreement with the Department of Health and Human Services 
 75.18  pursuant to section 1927 of title XIX of the Social Security Act.
 75.19     The commissioner shall publish conditions for prohibiting 
 75.20  payment for specific drugs after considering the formulary 
 75.21  committee's recommendations.  An honorarium of $100 per meeting 
 75.22  and reimbursement for mileage shall be paid to each committee 
 75.23  member in attendance.  
 75.24     (c) The basis for determining the amount of payment shall 
 75.25  be the lower of the actual acquisition costs of the drugs plus a 
 75.26  fixed dispensing fee; the maximum allowable cost set by the 
 75.27  federal government or by the commissioner plus the fixed 
 75.28  dispensing fee; or the usual and customary price charged to the 
 75.29  public.  The pharmacy dispensing fee shall be $3.65, except that 
 75.30  the dispensing fee for intravenous solutions which must be 
 75.31  compounded by the pharmacist shall be $8 per bag, $14 per bag 
 75.32  for cancer chemotherapy products, and $30 per bag for total 
 75.33  parenteral nutritional products dispensed in one liter 
 75.34  quantities, or $44 per bag for total parenteral nutritional 
 75.35  products dispensed in quantities greater than one liter.  Actual 
 75.36  acquisition cost includes quantity and other special discounts 
 76.1   except time and cash discounts.  The actual acquisition cost of 
 76.2   a drug shall be estimated by the commissioner, at average 
 76.3   wholesale price minus nine percent, except that where a drug has 
 76.4   had its wholesale price reduced as a result of the actions of 
 76.5   the National Association of Medicaid Fraud Control Units, the 
 76.6   estimated actual acquisition cost shall be the reduced average 
 76.7   wholesale price, without the nine percent deduction.  The 
 76.8   maximum allowable cost of a multisource drug may be set by the 
 76.9   commissioner and it shall be comparable to, but no higher than, 
 76.10  the maximum amount paid by other third-party payors in this 
 76.11  state who have maximum allowable cost programs.  The 
 76.12  commissioner shall set maximum allowable costs for multisource 
 76.13  drugs that are not on the federal upper limit list as described 
 76.14  in United States Code, title 42, chapter 7, section 1396r-8(e), 
 76.15  the Social Security Act, and Code of Federal Regulations, title 
 76.16  42, part 447, section 447.332.  Establishment of the amount of 
 76.17  payment for drugs shall not be subject to the requirements of 
 76.18  the Administrative Procedure Act.  An additional dispensing fee 
 76.19  of $.30 may be added to the dispensing fee paid to pharmacists 
 76.20  for legend drug prescriptions dispensed to residents of 
 76.21  long-term care facilities when a unit dose blister card system, 
 76.22  approved by the department, is used.  Under this type of 
 76.23  dispensing system, the pharmacist must dispense a 30-day supply 
 76.24  of drug.  The National Drug Code (NDC) from the drug container 
 76.25  used to fill the blister card must be identified on the claim to 
 76.26  the department.  The unit dose blister card containing the drug 
 76.27  must meet the packaging standards set forth in Minnesota Rules, 
 76.28  part 6800.2700, that govern the return of unused drugs to the 
 76.29  pharmacy for reuse.  The pharmacy provider will be required to 
 76.30  credit the department for the actual acquisition cost of all 
 76.31  unused drugs that are eligible for reuse.  Over-the-counter 
 76.32  medications must be dispensed in the manufacturer's unopened 
 76.33  package.  The commissioner may permit the drug clozapine to be 
 76.34  dispensed in a quantity that is less than a 30-day supply.  
 76.35  Whenever a generically equivalent product is available, payment 
 76.36  shall be on the basis of the actual acquisition cost of the 
 77.1   generic drug, unless the prescriber specifically indicates 
 77.2   "dispense as written - brand necessary" on the prescription as 
 77.3   required by section 151.21, subdivision 2. 
 77.4      (d) For purposes of this subdivision, "multisource drugs" 
 77.5   means covered outpatient drugs, excluding innovator multisource 
 77.6   drugs for which there are two or more drug products, which: 
 77.7      (1) are related as therapeutically equivalent under the 
 77.8   Food and Drug Administration's most recent publication of 
 77.9   "Approved Drug Products with Therapeutic Equivalence 
 77.10  Evaluations"; 
 77.11     (2) are pharmaceutically equivalent and bioequivalent as 
 77.12  determined by the Food and Drug Administration; and 
 77.13     (3) are sold or marketed in Minnesota. 
 77.14  "Innovator multisource drug" means a multisource drug that was 
 77.15  originally marketed under an original new drug application 
 77.16  approved by the Food and Drug Administration. 
 77.17     (e) The basis for determining the amount of payment for 
 77.18  drugs administered in an outpatient setting shall be the lower 
 77.19  of the usual and customary cost submitted by the provider; the 
 77.20  average wholesale price minus five percent; or the maximum 
 77.21  allowable cost set by the federal government under United States 
 77.22  Code, title 42, chapter 7, section 1396r-8(e), and Code of 
 77.23  Federal Regulations, title 42, section 447.332, or by the 
 77.24  commissioner under paragraph (c). 
 77.25     (f) Prior authorization shall not be required or utilized 
 77.26  for any antipsychotic drug prescribed for the treatment of 
 77.27  mental illness where there is no generically equivalent drug 
 77.28  available unless the commissioner determines that prior 
 77.29  authorization is necessary for patient safety.  This paragraph 
 77.30  applies to any supplemental drug rebate program established or 
 77.31  administered by the commissioner. 
 77.32     Sec. 10.  Minnesota Statutes 2000, section 256B.0625, is 
 77.33  amended by adding a subdivision to read: 
 77.34     Subd. 44.  [TARGETED CASE MANAGEMENT SERVICES.] Medical 
 77.35  assistance covers case management services for vulnerable adults 
 77.36  and adults with developmental disabilities, as provided under 
 78.1   section 256B.0924. 
 78.2      Sec. 11.  Minnesota Statutes 2001 Supplement, section 
 78.3   256B.0627, subdivision 10, is amended to read: 
 78.4      Subd. 10.  [FISCAL INTERMEDIARY OPTION AVAILABLE FOR 
 78.5   PERSONAL CARE ASSISTANT SERVICES.] (a) The commissioner may 
 78.6   allow a recipient of personal care assistant services to use a 
 78.7   fiscal intermediary to assist the recipient in paying and 
 78.8   accounting for medically necessary covered personal care 
 78.9   assistant services authorized in subdivision 4 and within the 
 78.10  payment parameters of subdivision 5.  Unless otherwise provided 
 78.11  in this subdivision, all other statutory and regulatory 
 78.12  provisions relating to personal care assistant services apply to 
 78.13  a recipient using the fiscal intermediary option. 
 78.14     (b) The recipient or responsible party shall: 
 78.15     (1) recruit, hire, and terminate a qualified professional, 
 78.16  if a qualified professional is requested by the recipient or 
 78.17  responsible party; 
 78.18     (2) verify and document the credentials of the qualified 
 78.19  professional, if a qualified professional is requested by the 
 78.20  recipient or responsible party; 
 78.21     (3) develop a service plan based on physician orders and 
 78.22  public health nurse assessment with the assistance of a 
 78.23  qualified professional, if a qualified professional is requested 
 78.24  by the recipient or responsible party, that addresses the health 
 78.25  and safety of the recipient; 
 78.26     (4) recruit, hire, and terminate the personal care 
 78.27  assistant; 
 78.28     (5) orient and train the personal care assistant with 
 78.29  assistance as needed from the qualified professional; 
 78.30     (6) supervise and evaluate the personal care assistant with 
 78.31  assistance as needed from the recipient's physician or the 
 78.32  qualified professional; 
 78.33     (7) monitor and verify in writing and report to the fiscal 
 78.34  intermediary the number of hours worked by the personal care 
 78.35  assistant and the qualified professional; and 
 78.36     (8) enter into a written agreement, as specified in 
 79.1   paragraph (f). 
 79.2      (c) The duties of the fiscal intermediary shall be to: 
 79.3      (1) bill the medical assistance program for personal care 
 79.4   assistant and qualified professional services; 
 79.5      (2) request and secure background checks on personal care 
 79.6   assistants and qualified professionals according to section 
 79.7   245A.04; 
 79.8      (3) pay the personal care assistant and qualified 
 79.9   professional based on actual hours of services provided; 
 79.10     (4) withhold and pay all applicable federal and state 
 79.11  taxes; 
 79.12     (5) verify and keep records of hours worked by the personal 
 79.13  care assistant and qualified professional; 
 79.14     (6) make the arrangements and pay unemployment insurance, 
 79.15  taxes, workers' compensation, liability insurance, and other 
 79.16  benefits, if any; 
 79.17     (7) enroll in the medical assistance program as a fiscal 
 79.18  intermediary; and 
 79.19     (8) enter into a written agreement as specified in 
 79.20  paragraph (f) before services are provided. 
 79.21     (d) The fiscal intermediary: 
 79.22     (1) may not be related to the recipient, qualified 
 79.23  professional, or the personal care assistant; 
 79.24     (2) must ensure arm's length transactions with the 
 79.25  recipient and personal care assistant; and 
 79.26     (3) shall be considered a joint employer of the personal 
 79.27  care assistant and qualified professional to the extent 
 79.28  specified in this section. 
 79.29     The fiscal intermediary or owners of the entity that 
 79.30  provides fiscal intermediary services under this subdivision 
 79.31  must pass a criminal background check as required in section 
 79.32  256B.0627, subdivision 1, paragraph (e). 
 79.33     (e) If the recipient or responsible party requests a 
 79.34  qualified professional, the qualified professional providing 
 79.35  assistance to the recipient shall meet the qualifications 
 79.36  specified in section 256B.0625, subdivision 19c.  The qualified 
 80.1   professional shall assist the recipient in developing and 
 80.2   revising a plan to meet the recipient's needs, as assessed by 
 80.3   the public health nurse.  In performing this function, the 
 80.4   qualified professional must visit the recipient in the 
 80.5   recipient's home at least once annually.  The qualified 
 80.6   professional must report any suspected abuse, neglect, or 
 80.7   financial exploitation of the recipient to the appropriate 
 80.8   authorities.  
 80.9      (f) The fiscal intermediary, recipient or responsible 
 80.10  party, personal care assistant, and qualified professional shall 
 80.11  enter into a written agreement before services are started.  The 
 80.12  agreement shall include: 
 80.13     (1) the duties of the recipient, qualified professional, 
 80.14  personal care assistant, and fiscal agent based on paragraphs 
 80.15  (a) to (e); 
 80.16     (2) the salary and benefits for the personal care assistant 
 80.17  and the qualified professional; 
 80.18     (3) the administrative fee of the fiscal intermediary and 
 80.19  services paid for with that fee, including background check 
 80.20  fees; 
 80.21     (4) procedures to respond to billing or payment complaints; 
 80.22  and 
 80.23     (5) procedures for hiring and terminating the personal care 
 80.24  assistant and the qualified professional. 
 80.25     (g) The rates paid for personal care assistant 
 80.26  services, shared care services, qualified professional services, 
 80.27  and fiscal intermediary services under this subdivision shall be 
 80.28  the same rates paid for personal care assistant services and 
 80.29  qualified professional services under subdivision 2 
 80.30  respectively.  Except for the administrative fee of the fiscal 
 80.31  intermediary specified in paragraph (f), the remainder of the 
 80.32  rates paid to the fiscal intermediary must be used to pay for 
 80.33  the salary and benefits for the personal care assistant or the 
 80.34  qualified professional. 
 80.35     (h) As part of the assessment defined in subdivision 1, the 
 80.36  following conditions must be met to use or continue use of a 
 81.1   fiscal intermediary: 
 81.2      (1) the recipient must be able to direct the recipient's 
 81.3   own care, or the responsible party for the recipient must be 
 81.4   readily available to direct the care of the personal care 
 81.5   assistant; 
 81.6      (2) the recipient or responsible party must be 
 81.7   knowledgeable of the health care needs of the recipient and be 
 81.8   able to effectively communicate those needs; 
 81.9      (3) a face-to-face assessment must be conducted by the 
 81.10  local county public health nurse at least annually, or when 
 81.11  there is a significant change in the recipient's condition or 
 81.12  change in the need for personal care assistant services; 
 81.13     (4) ~~the recipient cannot select the shared services option~~ 
 81.14  ~~as specified in subdivision 8~~ recipients who choose to use the 
 81.15  shared care option as specified in subdivision 8 must utilize 
 81.16  the same fiscal intermediary; and 
 81.17     (5) parties must be in compliance with the written 
 81.18  agreement specified in paragraph (f). 
 81.19     (i) The commissioner shall deny, revoke, or suspend the 
 81.20  authorization to use the fiscal intermediary option if: 
 81.21     (1) it has been determined by the qualified professional or 
 81.22  local county public health nurse that the use of this option 
 81.23  jeopardizes the recipient's health and safety; 
 81.24     (2) the parties have failed to comply with the written 
 81.25  agreement specified in paragraph (f); or 
 81.26     (3) the use of the option has led to abusive or fraudulent 
 81.27  billing for personal care assistant services.  
 81.28     The recipient or responsible party may appeal the 
 81.29  commissioner's action according to section 256.045.  The denial, 
 81.30  revocation, or suspension to use the fiscal intermediary option 
 81.31  shall not affect the recipient's authorized level of personal 
 81.32  care assistant services as determined in subdivision 5. 
 81.33     Sec. 12.  Minnesota Statutes 2001 Supplement, section 
 81.34  256B.0911, subdivision 4b, is amended to read: 
 81.35     Subd. 4b.  [EXEMPTIONS AND EMERGENCY ADMISSIONS.] (a) 
 81.36  Exemptions from the federal screening requirements outlined in 
 82.1   subdivision 4a, paragraphs (b) and (c), are limited to: 
 82.2      (1) a person who, having entered an acute care facility 
 82.3   from a certified nursing facility, is returning to a certified 
 82.4   nursing facility; ~~and~~ 
 82.5      (2) a person transferring from one certified nursing 
 82.6   facility in Minnesota to another certified nursing facility in 
 82.7   Minnesota; and 
 82.8      (3) a person, 21 years of age or older, who satisfies the 
 82.9   following criteria, as specified in Code of Federal Regulations, 
 82.10  title 42, section 483.106(b)(2): 
 82.11     (i) the person is admitted to a nursing facility directly 
 82.12  from a hospital after receiving acute inpatient care at the 
 82.13  hospital; 
 82.14     (ii) the person requires nursing facility services for the 
 82.15  same condition for which care was provided in the hospital; and 
 82.16     (iii) the attending physician has certified before the 
 82.17  nursing facility admission that the person is likely to receive 
 82.18  less than 30 days of nursing facility services. 
 82.19     (b) Persons who are exempt from preadmission screening for 
 82.20  purposes of level of care determination include: 
 82.21     (1) persons described in paragraph (a); 
 82.22     (2) an individual who has a contractual right to have 
 82.23  nursing facility care paid for indefinitely by the veterans' 
 82.24  administration; 
 82.25     (3) an individual enrolled in a demonstration project under 
 82.26  section 256B.69, subdivision 8, at the time of application to a 
 82.27  nursing facility; 
 82.28     (4) an individual currently being served under the 
 82.29  alternative care program or under a home and community-based 
 82.30  services waiver authorized under section 1915(c) of the federal 
 82.31  Social Security Act; and 
 82.32     (5) individuals admitted to a certified nursing facility 
 82.33  for a short-term stay, which is expected to be 14 days or less 
 82.34  in duration based upon a physician's certification, and who have 
 82.35  been assessed and approved for nursing facility admission within 
 82.36  the previous six months.  This exemption applies only if the 
 83.1   consultation team member determines at the time of the initial 
 83.2   assessment of the six-month period that it is appropriate to use 
 83.3   the nursing facility for short-term stays and that there is an 
 83.4   adequate plan of care for return to the home or community-based 
 83.5   setting.  If a stay exceeds 14 days, the individual must be 
 83.6   referred no later than the first county working day following 
 83.7   the 14th resident day for a screening, which must be completed 
 83.8   within five working days of the referral.  The payment 
 83.9   limitations in subdivision 7 apply to an individual found at 
 83.10  screening to not meet the level of care criteria for admission 
 83.11  to a certified nursing facility. 
 83.12     (c) Persons admitted to a Medicaid-certified nursing 
 83.13  facility from the community on an emergency basis as described 
 83.14  in paragraph (d) or from an acute care facility on a nonworking 
 83.15  day must be screened the first working day after admission. 
 83.16     (d) Emergency admission to a nursing facility prior to 
 83.17  screening is permitted when all of the following conditions are 
 83.18  met: 
 83.19     (1) a person is admitted from the community to a certified 
 83.20  nursing or certified boarding care facility during county 
 83.21  nonworking hours; 
 83.22     (2) a physician has determined that delaying admission 
 83.23  until preadmission screening is completed would adversely affect 
 83.24  the person's health and safety; 
 83.25     (3) there is a recent precipitating event that precludes 
 83.26  the client from living safely in the community, such as 
 83.27  sustaining an injury, sudden onset of acute illness, or a 
 83.28  caregiver's inability to continue to provide care; 
 83.29     (4) the attending physician has authorized the emergency 
 83.30  placement and has documented the reason that the emergency 
 83.31  placement is recommended; and 
 83.32     (5) the county is contacted on the first working day 
 83.33  following the emergency admission. 
 83.34  Transfer of a patient from an acute care hospital to a nursing 
 83.35  facility is not considered an emergency except for a person who 
 83.36  has received hospital services in the following situations: 
 84.1   hospital admission for observation, care in an emergency room 
 84.2   without hospital admission, or following hospital 24-hour bed 
 84.3   care. 
 84.4      (e) A nursing facility must provide a written notice to 
 84.5   persons who satisfy the criteria in paragraph (a), clause (3), 
 84.6   regarding the person's right to request and receive long-term 
 84.7   care consultation services as defined in subdivision 1a.  The 
 84.8   notice must be provided prior to the person's discharge from the 
 84.9   facility and in a format specified by the commissioner. 
 84.10     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 84.11  following final enactment.  
 84.12     Sec. 13.  Minnesota Statutes 2001 Supplement, section 
 84.13  256B.0911, subdivision 4d, is amended to read: 
 84.14     Subd. 4d.  [PREADMISSION SCREENING OF INDIVIDUALS UNDER 65 
 84.15  YEARS OF AGE.] (a) It is the policy of the state of Minnesota to 
 84.16  ensure that individuals with disabilities or chronic illness are 
 84.17  served in the most integrated setting appropriate to their needs 
 84.18  and have the necessary information to make informed choices 
 84.19  about home and community-based service options. 
 84.20     (b) Individuals under 65 years of age who are admitted to a 
 84.21  nursing facility from a hospital must be screened prior to 
 84.22  admission as outlined in subdivisions 4a through 4c. 
 84.23     (c) Individuals under 65 years of age who are admitted to 
 84.24  nursing facilities with only a telephone screening must receive 
 84.25  a face-to-face assessment from the long-term care consultation 
 84.26  team member of the county in which the facility is located or 
 84.27  from the recipient's county case manager within 20 working days 
 84.28  of admission. 
 84.29     (d) Individuals under 65 years of age who are admitted to a 
 84.30  nursing facility without preadmission screening according to the 
 84.31  exemption described in subdivision 4b, paragraph (a), clause 
 84.32  (3), and who remain in the facility longer than 30 days must 
 84.33  receive a face-to-face assessment within 40 days of admission.  
 84.34     (e) At the face-to-face assessment, the long-term care 
 84.35  consultation team member or county case manager must perform the 
 84.36  activities required under subdivision 3b. 
 85.1      ~~(e)~~ (f) For individuals under 21 years of age, a screening 
 85.2   interview which recommends nursing facility admission must be 
 85.3   face-to-face and approved by the commissioner before the 
 85.4   individual is admitted to the nursing facility. 
 85.5      ~~(f)~~ (g) In the event that an individual under 65 years of 
 85.6   age is admitted to a nursing facility on an emergency basis, the 
 85.7   county must be notified of the admission on the next working 
 85.8   day, and a face-to-face assessment as described in paragraph (c) 
 85.9   must be conducted within 20 working days of admission. 
 85.10     ~~(g)~~ (h) At the face-to-face assessment, the long-term care 
 85.11  consultation team member or the case manager must present 
 85.12  information about home and community-based options so the 
 85.13  individual can make informed choices.  If the individual chooses 
 85.14  home and community-based services, the long-term care 
 85.15  consultation team member or case manager must complete a written 
 85.16  relocation plan within 20 working days of the visit.  The plan 
 85.17  shall describe the services needed to move out of the facility 
 85.18  and a time line for the move which is designed to ensure a 
 85.19  smooth transition to the individual's home and community. 
 85.20     ~~(h)~~ (i) An individual under 65 years of age residing in a 
 85.21  nursing facility shall receive a face-to-face assessment at 
 85.22  least every 12 months to review the person's service choices and 
 85.23  available alternatives unless the individual indicates, in 
 85.24  writing, that annual visits are not desired.  In this case, the 
 85.25  individual must receive a face-to-face assessment at least once 
 85.26  every 36 months for the same purposes. 
 85.27     ~~(i)~~ (j) Notwithstanding the provisions of subdivision 6, 
 85.28  the commissioner may pay county agencies directly for 
 85.29  face-to-face assessments for individuals under 65 years of age 
 85.30  who are being considered for placement or residing in a nursing 
 85.31  facility. 
 85.32     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 85.33  following final enactment. 
 85.34     Sec. 14.  Minnesota Statutes 2001 Supplement, section 
 85.35  256B.0913, subdivision 4, is amended to read: 
 85.36     Subd. 4.  [ELIGIBILITY FOR FUNDING FOR SERVICES FOR 
 86.1   NONMEDICAL ASSISTANCE RECIPIENTS.] (a) Funding for services 
 86.2   under the alternative care program is available to persons who 
 86.3   meet the following criteria: 
 86.4      (1) the person has been determined by a community 
 86.5   assessment under section 256B.0911 to be a person who would 
 86.6   require the level of care provided in a nursing facility, but 
 86.7   for the provision of services under the alternative care 
 86.8   program; 
 86.9      (2) the person is age 65 or older; 
 86.10     (3) the person would be eligible for medical assistance 
 86.11  within 180 days of admission to a nursing facility; 
 86.12     (4) the person is not ineligible for the medical assistance 
 86.13  program due to an asset transfer penalty; 
 86.14     (5) the person needs services that are not funded through 
 86.15  other state or federal funding; and 
 86.16     (6) the monthly cost of the alternative care services 
 86.17  funded by the program for this person does not exceed 75 percent 
 86.18  of the statewide weighted average monthly nursing facility rate 
 86.19  of the case mix resident class to which the individual 
 86.20  alternative care client would be assigned under Minnesota Rules, 
 86.21  parts 9549.0050 to 9549.0059, less the recipient's maintenance 
 86.22  needs allowance as described in section 256B.0915, subdivision 
 86.23  1d, paragraph (a), until the first day of the state fiscal year 
 86.24  in which the resident assessment system, under section 256B.437, 
 86.25  for nursing home rate determination is implemented.  Effective 
 86.26  on the first day of the state fiscal year in which a resident 
 86.27  assessment system, under section 256B.437, for nursing home rate 
 86.28  determination is implemented and the first day of each 
 86.29  subsequent state fiscal year, the monthly cost of alternative 
 86.30  care services for this person shall not exceed the alternative 
 86.31  care monthly cap for the case mix resident class to which the 
 86.32  alternative care client would be assigned under Minnesota Rules, 
 86.33  parts 9549.0050 to 9549.0059, which was in effect on the last 
 86.34  day of the previous state fiscal year, and adjusted by the 
 86.35  greater of any legislatively adopted home and community-based 
 86.36  services cost-of-living percentage increase or any legislatively 
 87.1   adopted statewide percent rate increase for nursing facilities.  
 87.2   This monthly limit does not prohibit the alternative care client 
 87.3   from payment for additional services, but in no case may the 
 87.4   cost of additional services purchased under this section exceed 
 87.5   the difference between the client's monthly service limit 
 87.6   defined under section 256B.0915, subdivision 3, and the 
 87.7   alternative care program monthly service limit defined in this 
 87.8   paragraph.  If medical supplies and equipment or environmental 
 87.9   modifications are or will be purchased for an alternative care 
 87.10  services recipient, the costs may be prorated on a monthly basis 
 87.11  for up to 12 consecutive months beginning with the month of 
 87.12  purchase.  If the monthly cost of a recipient's other 
 87.13  alternative care services exceeds the monthly limit established 
 87.14  in this paragraph, the annual cost of the alternative care 
 87.15  services shall be determined.  In this event, the annual cost of 
 87.16  alternative care services shall not exceed 12 times the monthly 
 87.17  limit described in this paragraph. 
 87.18     (b) Alternative care funding under this subdivision is not 
 87.19  available for a person who is a medical assistance recipient or 
 87.20  who would be eligible for medical assistance without a spenddown 
 87.21  or waiver obligation.  A person whose initial application for 
 87.22  medical assistance is being processed may be served under the 
 87.23  alternative care program for a period up to 60 days.  If the 
 87.24  individual is found to be eligible for medical assistance, 
 87.25  medical assistance must be billed for services payable under the 
 87.26  federally approved elderly waiver plan and delivered from the 
 87.27  date the individual was found eligible for the federally 
 87.28  approved elderly waiver plan.  Notwithstanding this provision, 
 87.29  upon federal approval, alternative care funds may not be used to 
 87.30  pay for any service the cost of which is payable by medical 
 87.31  assistance or which is used by a recipient to meet a medical 
 87.32  assistance income spenddown or waiver obligation.  
 87.33     (c) Alternative care funding is not available for a person 
 87.34  who resides in a licensed nursing home, certified boarding care 
 87.35  home, hospital, or intermediate care facility, except for case 
 87.36  management services which are provided in support of the 
 88.1   discharge planning process to a nursing home resident or 
 88.2   certified boarding care home resident ~~who is ineligible for case~~ 
 88.3   ~~management funded by medical assistance~~. 
 88.4      Sec. 15.  Minnesota Statutes 2001 Supplement, section 
 88.5   256B.0913, subdivision 5, is amended to read: 
 88.6      Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
 88.7   Alternative care funding may be used for payment of costs of: 
 88.8      (1) adult foster care; 
 88.9      (2) adult day care; 
 88.10     (3) home health aide; 
 88.11     (4) homemaker services; 
 88.12     (5) personal care; 
 88.13     (6) case management; 
 88.14     (7) respite care; 
 88.15     (8) assisted living; 
 88.16     (9) residential care services; 
 88.17     (10) care-related supplies and equipment; 
 88.18     (11) meals delivered to the home; 
 88.19     (12) transportation; 
 88.20     (13) ~~skilled~~ nursing services; 
 88.21     (14) chore services; 
 88.22     (15) companion services; 
 88.23     (16) nutrition services; 
 88.24     (17) training for direct informal caregivers; 
 88.25     (18) ~~telemedicine~~ telehome care devices to monitor 
 88.26  recipients in their own homes as an alternative to hospital 
 88.27  care, nursing home care, or home visits; 
 88.28     (19) other services which includes discretionary funds and 
 88.29  direct cash payments to clients, following approval by the 
 88.30  commissioner, subject to the provisions of paragraph (j).  Total 
 88.31  annual payments for "other services" for all clients within a 
 88.32  county may not exceed ~~either ten~~ 25 percent of that county's 
 88.33  annual alternative care program base allocation ~~or $5,000,~~ 
 88.34  ~~whichever is greater.  In no case shall this amount exceed the~~ 
 88.35  ~~county's total annual alternative care program base allocation~~; 
 88.36  and 
 89.1      (20) environmental modifications. 
 89.2      (b) The county agency must ensure that the funds are not 
 89.3   used to supplant services available through other public 
 89.4   assistance or services programs. 
 89.5      (c) Unless specified in statute, the ~~service~~ services, 
 89.6   service definitions, and standards for alternative care services 
 89.7   shall be the same as the ~~service~~ services, service definitions, 
 89.8   and standards specified in the federally approved elderly waiver 
 89.9   plan.  Except for the county agencies' approval of direct cash 
 89.10  payments to clients as described in paragraph (j) or for a 
 89.11  provider of supplies and equipment when the monthly cost of the 
 89.12  supplies and equipment is less than $250, persons or agencies 
 89.13  must be employed by or under a contract with the county agency 
 89.14  or the public health nursing agency of the local board of health 
 89.15  in order to receive funding under the alternative care program.  
 89.16  Supplies and equipment may be purchased from a vendor not 
 89.17  certified to participate in the Medicaid program if the cost for 
 89.18  the item is less than that of a Medicaid vendor.  
 89.19     (d) The adult foster care rate shall be considered a 
 89.20  difficulty of care payment and shall not include room and 
 89.21  board.  The adult foster care rate shall be negotiated between 
 89.22  the county agency and the foster care provider.  The alternative 
 89.23  care payment for the foster care service in combination with the 
 89.24  payment for other alternative care services, including case 
 89.25  management, must not exceed the limit specified in subdivision 
 89.26  4, paragraph (a), clause (6). 
 89.27     (e) Personal care services must meet the service standards 
 89.28  defined in the federally approved elderly waiver plan, except 
 89.29  that a county agency may contract with a client's relative who 
 89.30  meets the relative hardship waiver requirement as defined in 
 89.31  section 256B.0627, subdivision 4, paragraph (b), clause (10), to 
 89.32  provide personal care services if the county agency ensures 
 89.33  supervision of this service by a ~~registered nurse or mental~~ 
 89.34  ~~health practitioner~~ qualified professional as defined in section 
 89.35  256B.0625, subdivision 19c.  
 89.36     (f) For purposes of this section, residential care services 
 90.1   are services which are provided to individuals living in 
 90.2   residential care homes.  Residential care homes are currently 
 90.3   licensed as board and lodging establishments and are registered 
 90.4   with the department of health as providing special services 
 90.5   under section 157.17 and are not subject to registration under 
 90.6   chapter 144D.  Residential care services are defined as 
 90.7   "supportive services" and "health-related services."  
 90.8   "Supportive services" means the provision of up to 24-hour 
 90.9   supervision and oversight.  Supportive services includes:  (1) 
 90.10  transportation, when provided by the residential care home only; 
 90.11  (2) socialization, when socialization is part of the plan of 
 90.12  care, has specific goals and outcomes established, and is not 
 90.13  diversional or recreational in nature; (3) assisting clients in 
 90.14  setting up meetings and appointments; (4) assisting clients in 
 90.15  setting up medical and social services; (5) providing assistance 
 90.16  with personal laundry, such as carrying the client's laundry to 
 90.17  the laundry room.  Assistance with personal laundry does not 
 90.18  include any laundry, such as bed linen, that is included in the 
 90.19  room and board rate.  "Health-related services" are limited to 
 90.20  minimal assistance with dressing, grooming, and bathing and 
 90.21  providing reminders to residents to take medications that are 
 90.22  self-administered or providing storage for medications, if 
 90.23  requested.  Individuals receiving residential care services 
 90.24  cannot receive homemaking services funded under this section.  
 90.25     (g) For the purposes of this section, "assisted living" 
 90.26  refers to supportive services provided by a single vendor to 
 90.27  clients who reside in the same apartment building of three or 
 90.28  more units which are not subject to registration under chapter 
 90.29  144D and are licensed by the department of health as a class A 
 90.30  home care provider or a class E home care provider.  Assisted 
 90.31  living services are defined as up to 24-hour supervision, and 
 90.32  oversight, supportive services as defined in clause (1), 
 90.33  individualized home care aide tasks as defined in clause (2), 
 90.34  and individualized home management tasks as defined in clause 
 90.35  (3) provided to residents of a residential center living in 
 90.36  their units or apartments with a full kitchen and bathroom.  A 
 91.1   full kitchen includes a stove, oven, refrigerator, food 
 91.2   preparation counter space, and a kitchen utensil storage 
 91.3   compartment.  Assisted living services must be provided by the 
 91.4   management of the residential center or by providers under 
 91.5   contract with the management or with the county. 
 91.6      (1) Supportive services include:  
 91.7      (i) socialization, when socialization is part of the plan 
 91.8   of care, has specific goals and outcomes established, and is not 
 91.9   diversional or recreational in nature; 
 91.10     (ii) assisting clients in setting up meetings and 
 91.11  appointments; and 
 91.12     (iii) providing transportation, when provided by the 
 91.13  residential center only.  
 91.14     (2) Home care aide tasks means:  
 91.15     (i) preparing modified diets, such as diabetic or low 
 91.16  sodium diets; 
 91.17     (ii) reminding residents to take regularly scheduled 
 91.18  medications or to perform exercises; 
 91.19     (iii) household chores in the presence of technically 
 91.20  sophisticated medical equipment or episodes of acute illness or 
 91.21  infectious disease; 
 91.22     (iv) household chores when the resident's care requires the 
 91.23  prevention of exposure to infectious disease or containment of 
 91.24  infectious disease; and 
 91.25     (v) assisting with dressing, oral hygiene, hair care, 
 91.26  grooming, and bathing, if the resident is ambulatory, and if the 
 91.27  resident has no serious acute illness or infectious disease.  
 91.28  Oral hygiene means care of teeth, gums, and oral prosthetic 
 91.29  devices.  
 91.30     (3) Home management tasks means:  
 91.31     (i) housekeeping; 
 91.32     (ii) laundry; 
 91.33     (iii) preparation of regular snacks and meals; and 
 91.34     (iv) shopping.  
 91.35     Individuals receiving assisted living services shall not 
 91.36  receive both assisted living services and homemaking services.  
 92.1   Individualized means services are chosen and designed 
 92.2   specifically for each resident's needs, rather than provided or 
 92.3   offered to all residents regardless of their illnesses, 
 92.4   disabilities, or physical conditions.  Assisted living services 
 92.5   as defined in this section shall not be authorized in boarding 
 92.6   and lodging establishments licensed according to sections 
 92.7   157.011 and 157.15 to 157.22. 
 92.8      (h) For establishments registered under chapter 144D, 
 92.9   assisted living services under this section means either the 
 92.10  services described in paragraph (g) and delivered by a class E 
 92.11  home care provider licensed by the department of health or the 
 92.12  services described under section 144A.4605 and delivered by an 
 92.13  assisted living home care provider or a class A home care 
 92.14  provider licensed by the commissioner of health. 
 92.15     (i) Payment for assisted living services and residential 
 92.16  care services shall be a monthly rate negotiated and authorized 
 92.17  by the county agency based on an individualized service plan for 
 92.18  each resident and may not cover direct rent or food costs.  
 92.19     (1) The individualized monthly negotiated payment for 
 92.20  assisted living services as described in paragraph (g) or (h), 
 92.21  and residential care services as described in paragraph (f), 
 92.22  shall not exceed the nonfederal share in effect on July 1 of the 
 92.23  state fiscal year for which the rate limit is being calculated 
 92.24  of the greater of either the statewide or any of the geographic 
 92.25  groups' weighted average monthly nursing facility payment rate 
 92.26  of the case mix resident class to which the alternative care 
 92.27  eligible client would be assigned under Minnesota Rules, parts 
 92.28  9549.0050 to 9549.0059, less the maintenance needs allowance as 
 92.29  described in section 256B.0915, subdivision 1d, paragraph (a), 
 92.30  until the first day of the state fiscal year in which a resident 
 92.31  assessment system, under section 256B.437, of nursing home rate 
 92.32  determination is implemented.  Effective on the first day of the 
 92.33  state fiscal year in which a resident assessment system, under 
 92.34  section 256B.437, of nursing home rate determination is 
 92.35  implemented and the first day of each subsequent state fiscal 
 92.36  year, the individualized monthly negotiated payment for the 
 93.1   services described in this clause shall not exceed the limit 
 93.2   described in this clause which was in effect on the last day of 
 93.3   the previous state fiscal year and which has been adjusted by 
 93.4   the greater of any legislatively adopted home and 
 93.5   community-based services cost-of-living percentage increase or 
 93.6   any legislatively adopted statewide percent rate increase for 
 93.7   nursing facilities. 
 93.8      (2) The individualized monthly negotiated payment for 
 93.9   assisted living services described under section 144A.4605 and 
 93.10  delivered by a provider licensed by the department of health as 
 93.11  a class A home care provider or an assisted living home care 
 93.12  provider and provided in a building that is registered as a 
 93.13  housing with services establishment under chapter 144D and that 
 93.14  provides 24-hour supervision in combination with the payment for 
 93.15  other alternative care services, including case management, must 
 93.16  not exceed the limit specified in subdivision 4, paragraph (a), 
 93.17  clause (6). 
 93.18     (j) A county agency may make payment from their alternative 
 93.19  care program allocation for "other services" which include use 
 93.20  of "discretionary funds" for services that are not otherwise 
 93.21  defined in this section and direct cash payments to the client 
 93.22  for the purpose of purchasing the services.  The following 
 93.23  provisions apply to payments under this paragraph: 
 93.24     (1) a cash payment to a client under this provision cannot 
 93.25  exceed ~~80 percent of~~ the monthly payment limit for that client 
 93.26  as specified in subdivision 4, paragraph (a), clause (6); 
 93.27     (2) a county may not approve any cash payment for a client 
 93.28  who meets either of the following: 
 93.29     (i) has been assessed as having a dependency in 
 93.30  orientation, unless the client has an authorized 
 93.31  representative.  An "authorized representative" means an 
 93.32  individual who is at least 18 years of age and is designated by 
 93.33  the person or the person's legal representative to act on the 
 93.34  person's behalf.  This individual may be a family member, 
 93.35  guardian, representative payee, or other individual designated 
 93.36  by the person or the person's legal representative, if any, to 
 94.1   assist in purchasing and arranging for supports; or 
 94.2      (ii) is concurrently receiving adult foster care, 
 94.3   residential care, or assisted living services; 
 94.4      (3) cash payments to a person or a person's family will be 
 94.5   provided through a monthly payment and be in the form of cash, 
 94.6   voucher, or direct county payment to a vendor.  Fees or premiums 
 94.7   assessed to the person for eligibility for health and human 
 94.8   services are not reimbursable through this service option.  
 94.9   Services and goods purchased through cash payments must be 
 94.10  identified in the person's individualized care plan and must 
 94.11  meet all of the following criteria: 
 94.12     (i) they must be over and above the normal cost of caring 
 94.13  for the person if the person did not have functional 
 94.14  limitations; 
 94.15     (ii) they must be directly attributable to the person's 
 94.16  functional limitations; 
 94.17     (iii) they must have the potential to be effective at 
 94.18  meeting the goals of the program; 
 94.19     (iv) they must be consistent with the needs identified in 
 94.20  the individualized service plan.  The service plan shall specify 
 94.21  the needs of the person and family, the form and amount of 
 94.22  payment, the items and services to be reimbursed, and the 
 94.23  arrangements for management of the individual grant; and 
 94.24     (v) the person, the person's family, or the legal 
 94.25  representative shall be provided sufficient information to 
 94.26  ensure an informed choice of alternatives.  The local agency 
 94.27  shall document this information in the person's care plan, 
 94.28  including the type and level of expenditures to be reimbursed; 
 94.29     (4) the state of Minnesota, county, lead agency under 
 94.30  contract, or tribal government under contract to administer the 
 94.31  alternative care program shall not be liable for damages, 
 94.32  injuries, or liabilities sustained through the purchase of 
 94.33  direct supports or goods by the person, the person's family, or 
 94.34  the authorized representative with funds received through the 
 94.35  cash payments under this section.  Liabilities include, but are 
 94.36  not limited to, workers' compensation, the Federal Insurance 
 95.1   Contributions Act (FICA), or the Federal Unemployment Tax Act 
 95.2   (FUTA); 
 95.3      (5) persons receiving grants under this section shall have 
 95.4   the following responsibilities: 
 95.5      (i) spend the grant money in a manner consistent with their 
 95.6   individualized service plan with the local agency; 
 95.7      (ii) notify the local agency of any necessary changes in 
 95.8   the grant expenditures; 
 95.9      (iii) arrange and pay for supports; and 
 95.10     (iv) inform the local agency of areas where they have 
 95.11  experienced difficulty securing or maintaining supports; and 
 95.12     (6) the county shall report client outcomes, services, and 
 95.13  costs under this paragraph in a manner prescribed by the 
 95.14  commissioner. 
 95.15     ~~(k) Upon implementation of direct cash payments to clients~~ 
 95.16  ~~under this section, any person determined eligible for the~~ 
 95.17  ~~alternative care program who chooses a cash payment approved by~~ 
 95.18  ~~the county agency shall receive the cash payment under this~~ 
 95.19  ~~section and not under section 256.476 unless the person was~~ 
 95.20  ~~receiving a consumer support grant under section 256.476 before~~ 
 95.21  ~~implementation of direct cash payments under this section.~~ 
 95.22     Sec. 16.  Minnesota Statutes 2001 Supplement, section 
 95.23  256B.0913, subdivision 8, is amended to read: 
 95.24     Subd. 8.  [REQUIREMENTS FOR INDIVIDUAL CARE PLAN.] (a) The 
 95.25  case manager shall implement the plan of care for each 
 95.26  alternative care client and ensure that a client's service needs 
 95.27  and eligibility are reassessed at least every 12 months.  The 
 95.28  plan shall include any services prescribed by the individual's 
 95.29  attending physician as necessary to allow the individual to 
 95.30  remain in a community setting.  In developing the individual's 
 95.31  care plan, the case manager should include the use of volunteers 
 95.32  from families and neighbors, religious organizations, social 
 95.33  clubs, and civic and service organizations to support the formal 
 95.34  home care services.  The county shall be held harmless for 
 95.35  damages or injuries sustained through the use of volunteers 
 95.36  under this subdivision including workers' compensation 
 96.1   liability.  The lead agency shall provide documentation in each 
 96.2   individual's plan of care and, if requested, to the commissioner 
 96.3   that the most cost-effective alternatives available have been 
 96.4   offered to the individual and that the individual was free to 
 96.5   choose among available qualified providers, both public and 
 96.6   private.  The case manager must give the individual a ten-day 
 96.7   written notice of any ~~decrease in or~~ denial, termination, or 
 96.8   reduction of alternative care services. 
 96.9      (b) If the county administering alternative care services 
 96.10  is different than the county of financial responsibility, the 
 96.11  care plan may be implemented without the approval of the county 
 96.12  of financial responsibility. 
 96.13     Sec. 17.  Minnesota Statutes 2001 Supplement, section 
 96.14  256B.0913, subdivision 10, is amended to read: 
 96.15     Subd. 10.  [ALLOCATION FORMULA.] (a) The alternative care 
 96.16  appropriation for fiscal years 1992 and beyond shall cover only 
 96.17  alternative care eligible clients.  ~~Prior to~~ By July 1 of each 
 96.18  year, the commissioner shall allocate to county agencies the 
 96.19  state funds available for alternative care for persons eligible 
 96.20  under subdivision 2. 
 96.21     (b) The adjusted base for each county is the county's 
 96.22  current fiscal year base allocation plus any targeted funds 
 96.23  approved during the current fiscal year.  Calculations for 
 96.24  paragraphs (c) and (d) are to be made as follows:  for each 
 96.25  county, the determination of alternative care program 
 96.26  expenditures shall be based on payments for services rendered 
 96.27  from April 1 through March 31 in the base year, to the extent 
 96.28  that claims have been submitted and paid by June 1 of that year. 
 96.29     (c) If the alternative care program expenditures as defined 
 96.30  in paragraph (b) are 95 percent or more of the county's adjusted 
 96.31  base allocation, the allocation for the next fiscal year is 100 
 96.32  percent of the adjusted base, plus inflation to the extent that 
 96.33  inflation is included in the state budget. 
 96.34     (d) If the alternative care program expenditures as defined 
 96.35  in paragraph (b) are less than 95 percent of the county's 
 96.36  adjusted base allocation, the allocation for the next fiscal 
 97.1   year is the adjusted base allocation less the amount of unspent 
 97.2   funds below the 95 percent level. 
 97.3      (e) If the annual legislative appropriation for the 
 97.4   alternative care program is inadequate to fund the combined 
 97.5   county allocations for a biennium, the commissioner shall 
 97.6   distribute to each county the entire annual appropriation as 
 97.7   that county's percentage of the computed base as calculated in 
 97.8   paragraphs (c) and (d). 
 97.9      Sec. 18.  Minnesota Statutes 2001 Supplement, section 
 97.10  256B.0913, subdivision 12, is amended to read: 
 97.11     Subd. 12.  [CLIENT PREMIUMS.] (a) A premium is required for 
 97.12  all alternative care eligible clients to help pay for the cost 
 97.13  of participating in the program.  The amount of the premium for 
 97.14  the alternative care client shall be determined as follows: 
 97.15     (1) when the alternative care client's income less 
 97.16  recurring and predictable medical expenses is greater than the 
 97.17  recipient's maintenance needs allowance as defined in section 
 97.18  256B.0915, subdivision 1d, paragraph (a), but less than 150 
 97.19  percent of the federal poverty guideline effective on July 1 of 
 97.20  the state fiscal year in which the premium is being computed, 
 97.21  and total assets are less than $10,000, the fee is zero; 
 97.22     (2) when the alternative care client's income less 
 97.23  recurring and predictable medical expenses is greater than 150 
 97.24  percent of the federal poverty guideline effective on July 1 of 
 97.25  the state fiscal year in which the premium is being computed, 
 97.26  and total assets are less than $10,000, the fee is 25 percent of 
 97.27  the cost of alternative care services or the difference between 
 97.28  150 percent of the federal poverty guideline effective on July 1 
 97.29  of the state fiscal year in which the premium is being computed 
 97.30  and the client's income less recurring and predictable medical 
 97.31  expenses, whichever is less; and 
 97.32     (3) when the alternative care client's total assets are 
 97.33  greater than $10,000, the fee is 25 percent of the cost of 
 97.34  alternative care services.  
 97.35     For married persons, total assets are defined as the total 
 97.36  marital assets less the estimated community spouse asset 
 98.1   allowance, under section 256B.059, if applicable.  For married 
 98.2   persons, total income is defined as the client's income less the 
 98.3   monthly spousal allotment, under section 256B.058. 
 98.4      All alternative care services except case management shall 
 98.5   be included in the estimated costs for the purpose of 
 98.6   determining 25 percent of the costs. 
 98.7      ~~The monthly premium shall be calculated based on the cost~~ 
 98.8   ~~of the first full month of alternative care services and shall~~ 
 98.9   ~~continue unaltered until the next reassessment is completed or~~ 
 98.10  ~~at the end of 12 months, whichever comes first.~~  Premiums are 
 98.11  due and payable each month alternative care services are 
 98.12  received unless the actual cost of the services is less than the 
 98.13  premium. 
 98.14     (b) The fee shall be waived by the commissioner when: 
 98.15     (1) a person who is residing in a nursing facility is 
 98.16  receiving case management only; 
 98.17     (2) a person is applying for medical assistance; 
 98.18     (3) a married couple is requesting an asset assessment 
 98.19  under the spousal impoverishment provisions; 
 98.20     (4) a person is found eligible for alternative care, but is 
 98.21  not yet receiving alternative care services; or 
 98.22     (5) a person's fee under paragraph (a) is less than $25. 
 98.23     (c) The county agency must record in the state's receivable 
 98.24  system the client's assessed premium amount or the reason the 
 98.25  premium has been waived.  The commissioner will bill and collect 
 98.26  the premium from the client.  Money collected must be deposited 
 98.27  in the general fund and is appropriated to the commissioner for 
 98.28  the alternative care program.  The client must supply the county 
 98.29  with the client's social security number at the time of 
 98.30  application.  The county shall supply the commissioner with the 
 98.31  client's social security number and other information the 
 98.32  commissioner requires to collect the premium from the client.  
 98.33  The commissioner shall collect unpaid premiums using the Revenue 
 98.34  Recapture Act in chapter 270A and other methods available to the 
 98.35  commissioner.  The commissioner may require counties to inform 
 98.36  clients of the collection procedures that may be used by the 
 99.1   state if a premium is not paid.  This paragraph does not apply 
 99.2   to alternative care pilot projects authorized in Laws 1993, 
 99.3   First Special Session chapter 1, article 5, section 133, if a 
 99.4   county operating under the pilot project reports the following 
 99.5   dollar amounts to the commissioner quarterly: 
 99.6      (1) total premiums billed to clients; 
 99.7      (2) total collections of premiums billed; and 
 99.8      (3) balance of premiums owed by clients. 
 99.9   If a county does not adhere to these reporting requirements, the 
 99.10  commissioner may terminate the billing, collecting, and 
 99.11  remitting portions of the pilot project and require the county 
 99.12  involved to operate under the procedures set forth in this 
 99.13  paragraph. 
 99.14     ~~(d) The commissioner shall begin to adopt emergency or~~ 
 99.15  ~~permanent rules governing client premiums within 30 days after~~ 
 99.16  ~~July 1, 1991, including criteria for determining when services~~ 
 99.17  ~~to a client must be terminated due to failure to pay a premium.~~  
 99.18     Sec. 19.  Minnesota Statutes 2001 Supplement, section 
 99.19  256B.0913, subdivision 14, is amended to read: 
 99.20     Subd. 14.  [PROVIDER REQUIREMENTS, PAYMENT, AND RATE 
 99.21  ADJUSTMENTS.] (a) Unless otherwise specified in statute, 
 99.22  providers must be enrolled in the state's Minnesota health care 
 99.23  program and abide by the requirements for provider participation 
 99.24  according to Minnesota Rules, part 9505.0195. 
 99.25     (b) Payment for provided alternative care services as 
 99.26  approved by the client's case manager shall ~~be~~ occur through the 
 99.27  invoice processing procedures of the department's Medicaid 
 99.28  Management Information System (MMIS).  To receive payment, the 
 99.29  county or vendor must submit invoices within 12 months following 
 99.30  the date of service.  The county agency and its vendors under 
 99.31  contract shall not be reimbursed for services which exceed the 
 99.32  county allocation. 
 99.33     ~~(b)~~ (c) The county shall negotiate individual rates with 
 99.34  vendors and may authorize service payment for actual costs up to 
 99.35  the county's current approved rate.  Notwithstanding any other 
 99.36  rule or statutory provision to the contrary, the commissioner 
100.1   shall not be authorized to increase rates by an annual inflation 
100.2   factor, unless so authorized by the legislature.  To improve 
100.3   access to community services and eliminate payment disparities 
100.4   between the alternative care program and the elderly waiver 
100.5   program, the commissioner shall establish statewide maximum 
100.6   service rate limits and eliminate county-specific service rate 
100.7   limits. 
100.8      (1) Effective July 1, 2001, for service rate limits, except 
100.9   those in subdivision 5, paragraphs (d) and (i), the rate limit 
100.10  for each service shall be the greater of the alternative care 
100.11  statewide maximum rate or the elderly waiver statewide maximum 
100.12  rate. 
100.13     (2) Counties may negotiate individual service rates with 
100.14  vendors for actual costs up to the statewide maximum service 
100.15  rate limit. 
100.16     Sec. 20.  Minnesota Statutes 2001 Supplement, section 
100.17  256B.0915, subdivision 3, is amended to read: 
100.18     Subd. 3.  [LIMITS OF CASES, RATES, PAYMENTS, AND 
100.19  FORECASTING.] (a) The number of medical assistance waiver 
100.20  recipients that a county may serve must be allocated according 
100.21  to the number of medical assistance waiver cases open on July 1 
100.22  of each fiscal year.  Additional recipients may be served with 
100.23  the approval of the commissioner. 
100.24     (b) The monthly limit for the cost of waivered services to 
100.25  an individual elderly waiver client shall be the weighted 
100.26  average monthly nursing facility rate of the case mix resident 
100.27  class to which the elderly waiver client would be assigned under 
100.28  Minnesota Rules, parts 9549.0050 to 9549.0059, less the 
100.29  recipient's maintenance needs allowance as described in 
100.30  subdivision 1d, paragraph (a), until the first day of the state 
100.31  fiscal year in which the resident assessment system as described 
100.32  in section 256B.437 for nursing home rate determination is 
100.33  implemented.  Effective on the first day of the state fiscal 
100.34  year in which the resident assessment system as described in 
100.35  section 256B.437 for nursing home rate determination is 
100.36  implemented and the first day of each subsequent state fiscal 
101.1   year, the monthly limit for the cost of waivered services to an 
101.2   individual elderly waiver client shall be the rate of the case 
101.3   mix resident class to which the waiver client would be assigned 
101.4   under Minnesota Rules, parts 9549.0050 to 9549.0059, in effect 
101.5   on the last day of the previous state fiscal year, adjusted by 
101.6   the greater of any legislatively adopted home and 
101.7   community-based services cost-of-living percentage increase or 
101.8   any legislatively adopted statewide percent rate increase for 
101.9   nursing facilities. 
101.10     (c) If extended medical supplies and equipment or 
101.11  environmental modifications are or will be purchased for an 
101.12  elderly waiver client, the costs may be prorated for up to 12 
101.13  consecutive months beginning with the month of purchase.  If the 
101.14  monthly cost of a recipient's waivered services exceeds the 
101.15  monthly limit established in paragraph (b), the annual cost of 
101.16  all waivered services shall be determined.  In this event, the 
101.17  annual cost of all waivered services shall not exceed 12 times 
101.18  the monthly limit of waivered services as described in paragraph 
101.19  (b).  
101.20     (d) For a person who is a nursing facility resident at the 
101.21  time of requesting a determination of eligibility for elderly 
101.22  waivered services, a monthly conversion limit for the cost of 
101.23  elderly waivered services may be requested.  The monthly 
101.24  conversion limit for the cost of elderly waiver services shall 
101.25  be the resident class assigned under Minnesota Rules, parts 
101.26  9549.0050 to 9549.0059, for that resident in the nursing 
101.27  facility where the resident currently resides until July 1 of 
101.28  the state fiscal year in which the resident assessment system as 
101.29  described in section 256B.437 for nursing home rate 
101.30  determination is implemented.  Effective on July 1 of the state 
101.31  fiscal year in which the resident assessment system as described 
101.32  in section 256B.437 for nursing home rate determination is 
101.33  implemented, the monthly conversion limit for the cost of 
101.34  elderly waiver services shall be the per diem nursing facility 
101.35  rate as determined by the resident assessment system as 
101.36  described in section 256B.437 for that resident in the nursing 
102.1   facility where the resident currently resides multiplied by 365 
102.2   and divided by 12, less the recipient's maintenance needs 
102.3   allowance as described in subdivision 1d.  The initially 
102.4   approved conversion rate may be adjusted by the greater of any 
102.5   subsequent legislatively adopted home and community-based 
102.6   services cost-of-living percentage increase or any subsequent 
102.7   legislatively adopted statewide percentage rate increase for 
102.8   nursing facilities.  The limit under this clause only applies to 
102.9   persons discharged from a nursing facility after a minimum 
102.10  30-day stay and found eligible for waivered services on or after 
102.11  July 1, 1997.  The following costs must be included in 
102.12  determining the total monthly costs for the waiver client: 
102.13     (1) cost of all waivered services, including extended 
102.14  medical supplies and equipment and environmental modifications; 
102.15  and 
102.16     (2) cost of skilled nursing, home health aide, and personal 
102.17  care services reimbursable by medical assistance.  
102.18     (e) Medical assistance funding for skilled nursing 
102.19  services, private duty nursing, home health aide, and personal 
102.20  care services for waiver recipients must be approved by the case 
102.21  manager and included in the individual care plan. 
102.22     (f) A county is not required to contract with a provider of 
102.23  supplies and equipment if the monthly cost of the supplies and 
102.24  equipment is less than $250.  
102.25     (g) The adult foster care rate shall be considered a 
102.26  difficulty of care payment and shall not include room and 
102.27  board.  The adult foster care service rate shall be negotiated 
102.28  between the county agency and the foster care provider.  The 
102.29  elderly waiver payment for the foster care service in 
102.30  combination with the payment for all other elderly waiver 
102.31  services, including case management, must not exceed the limit 
102.32  specified in paragraph (b). 
102.33     (h) Payment for assisted living service shall be a monthly 
102.34  rate negotiated and authorized by the county agency based on an 
102.35  individualized service plan for each resident and may not cover 
102.36  direct rent or food costs. 
103.1      (1) The individualized monthly negotiated payment for 
103.2   assisted living services as described in section 256B.0913, 
103.3   subdivision 5, paragraph (g) or (h), and residential care 
103.4   services as described in section 256B.0913, subdivision 5, 
103.5   paragraph (f), shall not exceed the nonfederal share, in effect 
103.6   on July 1 of the state fiscal year for which the rate limit is 
103.7   being calculated, of the greater of either the statewide or any 
103.8   of the geographic groups' weighted average monthly nursing 
103.9   facility rate of the case mix resident class to which the 
103.10  elderly waiver eligible client would be assigned under Minnesota 
103.11  Rules, parts 9549.0050 to 9549.0059, less the maintenance needs 
103.12  allowance as described in subdivision 1d, paragraph (a), until 
103.13  the July 1 of the state fiscal year in which the resident 
103.14  assessment system as described in section 256B.437 for nursing 
103.15  home rate determination is implemented.  Effective on July 1 of 
103.16  the state fiscal year in which the resident assessment system as 
103.17  described in section 256B.437 for nursing home rate 
103.18  determination is implemented and July 1 of each subsequent state 
103.19  fiscal year, the individualized monthly negotiated payment for 
103.20  the services described in this clause shall not exceed the limit 
103.21  described in this clause which was in effect on June 30 of the 
103.22  previous state fiscal year and which has been adjusted by the 
103.23  greater of any legislatively adopted home and community-based 
103.24  services cost-of-living percentage increase or any legislatively 
103.25  adopted statewide percent rate increase for nursing facilities. 
103.26     (2) The individualized monthly negotiated payment for 
103.27  assisted living services described in section 144A.4605 and 
103.28  delivered by a provider licensed by the department of health as 
103.29  a class A home care provider or an assisted living home care 
103.30  provider and provided in a building that is registered as a 
103.31  housing with services establishment under chapter 144D and that 
103.32  provides 24-hour supervision in combination with the payment for 
103.33  other elderly waiver services, including case management, must 
103.34  not exceed the limit specified in paragraph (b). 
103.35     (i) The county shall negotiate individual service rates 
103.36  with vendors and may authorize payment for actual costs up to 
104.1   the county's current approved rate.  Persons or agencies must be 
104.2   employed by or under a contract with the county agency or the 
104.3   public health nursing agency of the local board of health in 
104.4   order to receive funding under the elderly waiver program, 
104.5   except as a provider of supplies and equipment when the monthly 
104.6   cost of the supplies and equipment is less than $250.  
104.7      (j) Reimbursement for the medical assistance recipients 
104.8   under the approved waiver shall be made from the medical 
104.9   assistance account through the invoice processing procedures of 
104.10  the department's Medicaid Management Information System (MMIS), 
104.11  only with the approval of the client's case manager.  The budget 
104.12  for the state share of the Medicaid expenditures shall be 
104.13  forecasted with the medical assistance budget, and shall be 
104.14  consistent with the approved waiver.  
104.15     (k) To improve access to community services and eliminate 
104.16  payment disparities between the alternative care program and the 
104.17  elderly waiver, the commissioner shall establish statewide 
104.18  maximum service rate limits and eliminate county-specific 
104.19  service rate limits. 
104.20     (1) Effective July 1, 2001, for service rate limits, except 
104.21  those described or defined in paragraphs (g) and (h), the rate 
104.22  limit for each service shall be the greater of the alternative 
104.23  care statewide maximum rate or the elderly waiver statewide 
104.24  maximum rate. 
104.25     (2) Counties may negotiate individual service rates with 
104.26  vendors for actual costs up to the statewide maximum service 
104.27  rate limit. 
104.28     (l) Beginning July 1, 1991, the state shall reimburse 
104.29  counties according to the payment schedule in section 256.025 
104.30  for the county share of costs incurred under this subdivision on 
104.31  or after January 1, 1991, for individuals who are receiving 
104.32  medical assistance. 
104.33     Sec. 21.  Minnesota Statutes 2000, section 256B.0915, 
104.34  subdivision 4, is amended to read: 
104.35     Subd. 4.  [TERMINATION NOTICE.] The case manager must give 
104.36  the individual a ten-day written notice of any ~~decrease in~~ 
105.1   denial, reduction, or termination of waivered services. 
105.2      Sec. 22.  Minnesota Statutes 2001 Supplement, section 
105.3   256B.0915, subdivision 5, is amended to read: 
105.4      Subd. 5.  [ASSESSMENTS AND REASSESSMENTS FOR WAIVER 
105.5   CLIENTS.] Each client shall receive an initial assessment of 
105.6   strengths, informal supports, and need for services in 
105.7   accordance with section 256B.0911, subdivisions 3, 3a, and 3b.  
105.8   A reassessment of a client served under the elderly waiver must 
105.9   be conducted at least every 12 months and at other times when 
105.10  the case manager determines that there has been significant 
105.11  change in the client's functioning.  This may include instances 
105.12  where the client is discharged from the hospital.  
105.13     Sec. 23.  Minnesota Statutes 2000, section 256B.0915, 
105.14  subdivision 6, is amended to read: 
105.15     Subd. 6.  [IMPLEMENTATION OF CARE PLAN.] Each elderly 
105.16  waiver client shall be provided a copy of a written care plan 
105.17  that meets the requirements outlined in section 256B.0913, 
105.18  subdivision 8.  If the county administering waivered services is 
105.19  different than the county of financial responsibility, the care 
105.20  plan may be implemented without the approval of the county of 
105.21  financial responsibility. 
105.22     Sec. 24.  Minnesota Statutes 2000, section 256B.0915, is 
105.23  amended by adding a subdivision to read: 
105.24     Subd. 8.  [SERVICES AND SUPPORTS.] (a) Services and 
105.25  supports shall meet the requirements set out in United States 
105.26  Code, title 42, section 1396n. 
105.27     (b) Services and supports shall promote consumer choice and 
105.28  be arranged and provided consistent with individualized, written 
105.29  care plans. 
105.30     (c) The state of Minnesota, county, or tribal government 
105.31  under contract to administer the elderly waiver shall not be 
105.32  liable for damages, injuries, or liabilities sustained through 
105.33  the purchase of direct supports or goods by the person, the 
105.34  person's family, or the authorized representatives with funds 
105.35  received through consumer directed community support services 
105.36  under the federally approved waiver plan.  Liabilities include, 
106.1   but are not limited to, workers' compensation liability, the 
106.2   Federal Insurance Contributions Act (FICA), or the Federal 
106.3   Unemployment Tax Act (FUTA). 
106.4      Sec. 25.  Minnesota Statutes 2001 Supplement, section 
106.5   256B.0924, subdivision 6, is amended to read: 
106.6      Subd. 6.  [PAYMENT FOR TARGETED CASE MANAGEMENT.] (a) 
106.7   Medical assistance and MinnesotaCare payment for targeted case 
106.8   management shall be made on a monthly basis.  In order to 
106.9   receive payment for an eligible adult, the provider must 
106.10  document at least one contact per month and not more than two 
106.11  consecutive months without a face-to-face contact with the adult 
106.12  or the adult's legal representative, family, primary caregiver, 
106.13  or other relevant persons identified as necessary to the 
106.14  development or implementation of the goals of the personal 
106.15  service plan. 
106.16     (b) Payment for targeted case management provided by county 
106.17  staff under this subdivision shall be based on the monthly rate 
106.18  methodology under section 256B.094, subdivision 6, paragraph 
106.19  (b), calculated as one combined average rate together with adult 
106.20  mental health case management under section 256B.0625, 
106.21  subdivision 20, except for calendar year 2002.  In calendar year 
106.22  2002, the rate for case management under this section shall be 
106.23  the same as the rate for adult mental health case management in 
106.24  effect as of December 31, 2001.  Billing and payment must 
106.25  identify the recipient's primary population group to allow 
106.26  tracking of revenues. 
106.27     (c) Payment for targeted case management provided by 
106.28  county-contracted vendors shall be based on a monthly rate 
106.29  negotiated by the host county.  The negotiated rate must not 
106.30  exceed the rate charged by the vendor for the same service to 
106.31  other payers.  If the service is provided by a team of 
106.32  contracted vendors, the county may negotiate a team rate with a 
106.33  vendor who is a member of the team.  The team shall determine 
106.34  how to distribute the rate among its members.  No reimbursement 
106.35  received by contracted vendors shall be returned to the county, 
106.36  except to reimburse the county for advance funding provided by 
107.1   the county to the vendor. 
107.2      (d) If the service is provided by a team that includes 
107.3   contracted vendors and county staff, the costs for county staff 
107.4   participation on the team shall be included in the rate for 
107.5   county-provided services.  In this case, the contracted vendor 
107.6   and the county may each receive separate payment for services 
107.7   provided by each entity in the same month.  In order to prevent 
107.8   duplication of services, the county must document, in the 
107.9   recipient's file, the need for team targeted case management and 
107.10  a description of the different roles of the team members. 
107.11     (e) Notwithstanding section 256B.19, subdivision 1, the 
107.12  nonfederal share of costs for targeted case management shall be 
107.13  provided by the recipient's county of responsibility, as defined 
107.14  in sections 256G.01 to 256G.12, from sources other than federal 
107.15  funds or funds used to match other federal funds. 
107.16     (f) The commissioner may suspend, reduce, or terminate 
107.17  reimbursement to a provider that does not meet the reporting or 
107.18  other requirements of this section.  The county of 
107.19  responsibility, as defined in sections 256G.01 to 256G.12, is 
107.20  responsible for any federal disallowances.  The county may share 
107.21  this responsibility with its contracted vendors. 
107.22     (g) The commissioner shall set aside five percent of the 
107.23  federal funds received under this section for use in reimbursing 
107.24  the state for costs of developing and implementing this section. 
107.25     (h) Notwithstanding section 256.025, subdivision 2, 
107.26  payments to counties for targeted case management expenditures 
107.27  under this section shall only be made from federal earnings from 
107.28  services provided under this section.  Payments to contracted 
107.29  vendors shall include both the federal earnings and the county 
107.30  share. 
107.31     (i) Notwithstanding section 256B.041, county payments for 
107.32  the cost of case management services provided by county staff 
107.33  shall not be made to the state treasurer.  For the purposes of 
107.34  targeted case management services provided by county staff under 
107.35  this section, the centralized disbursement of payments to 
107.36  counties under section 256B.041 consists only of federal 
108.1   earnings from services provided under this section. 
108.2      (j) If the recipient is a resident of a nursing facility, 
108.3   intermediate care facility, or hospital, and the recipient's 
108.4   institutional care is paid by medical assistance, payment for 
108.5   targeted case management services under this subdivision is 
108.6   limited to the last 180 days of the recipient's residency in 
108.7   that facility and may not exceed more than six months in a 
108.8   calendar year. 
108.9      (k) Payment for targeted case management services under 
108.10  this subdivision shall not duplicate payments made under other 
108.11  program authorities for the same purpose. 
108.12     (l) Any growth in targeted case management services and 
108.13  cost increases under this section shall be the responsibility of 
108.14  the counties. 
108.15     Sec. 26.  Minnesota Statutes 2001 Supplement, section 
108.16  256B.0951, subdivision 7, is amended to read: 
108.17     Subd. 7.  [WAIVER OF RULES.] If a federal waiver is 
108.18  approved under subdivision 8, the commissioner of health may 
108.19  exempt residents of intermediate care facilities for persons 
108.20  with mental retardation (ICFs/MR) who participate in the 
108.21  ~~three-year~~ alternative quality assurance ~~pilot~~ project 
108.22  established in section 256B.095 from the requirements of 
108.23  Minnesota Rules, chapter 4665~~, upon approval by the federal~~ 
108.24  ~~government of a waiver of federal certification requirements for~~ 
108.25  ~~ICFs/MR~~.  
108.26     Sec. 27.  Minnesota Statutes 2001 Supplement, section 
108.27  256B.0951, subdivision 8, is amended to read: 
108.28     Subd. 8.  [FEDERAL WAIVER.] The commissioner of human 
108.29  services shall seek ~~federal authority to waive provisions of~~ 
108.30  ~~intermediate care facilities for persons with mental retardation~~ 
108.31  ~~(ICFs/MR) regulations to enable the demonstration and evaluation~~ 
108.32  ~~of the alternative quality assurance system for ICFs/MR under~~ 
108.33  ~~the project.  The commissioner of human services shall apply for~~ 
108.34  ~~any necessary waivers as soon as practicable.~~ a federal waiver 
108.35  to allow intermediate care facilities for persons with mental 
108.36  retardation (ICFs/MR) in Region 10 of Minnesota to participate 
109.1   in the alternative licensing system.  If it is necessary for 
109.2   purposes of participation in this alternative licensing system 
109.3   for a facility to be decertified as an ICF/MR facility according 
109.4   to the terms of the federal waiver, when the facility seeks 
109.5   recertification under the provisions of ICF/MR regulations at 
109.6   the end of the demonstration project, it will not be considered 
109.7   a new ICF/MR as defined under section 252.291 provided the 
109.8   licensed capacity of the facility did not increase during its 
109.9   participation in the alternative licensing system.  The 
109.10  provisions of sections 252.82, 252.292, and 256B.5011 to 
109.11  256B.5015 will remain applicable for counties in Region 10 of 
109.12  Minnesota and the ICFs/MR located within those counties 
109.13  notwithstanding a county's participation in the alternative 
109.14  licensing system. 
109.15     Sec. 28.  Minnesota Statutes 2001 Supplement, section 
109.16  256B.431, subdivision 2e, is amended to read: 
109.17     Subd. 2e.  [CONTRACTS FOR SERVICES FOR VENTILATOR-DEPENDENT 
109.18  PERSONS.] The commissioner may ~~contract~~ negotiate with a nursing 
109.19  facility eligible to receive medical assistance payments to 
109.20  provide services to a ventilator-dependent person identified by 
109.21  the commissioner according to criteria developed by the 
109.22  commissioner, including:  
109.23     (1) nursing facility care has been recommended for the 
109.24  person by a preadmission screening team; 
109.25     (2) the person has been hospitalized and no longer requires 
109.26  inpatient acute care hospital services; and 
109.27     (3) the commissioner has determined that necessary services 
109.28  for the person cannot be provided under existing nursing 
109.29  facility rates.  
109.30     ~~The commissioner may issue a request for proposals to~~ 
109.31  ~~provide services to a ventilator-dependent person to nursing~~ 
109.32  ~~facilities eligible to receive medical assistance payments and~~ 
109.33  ~~shall select nursing facilities from among respondents according~~ 
109.34  ~~to criteria developed by the commissioner, including:~~  
109.35     ~~(1) the cost-effectiveness and appropriateness of services;~~ 
109.36     ~~(2) the nursing facility's compliance with federal and~~ 
110.1   ~~state licensing and certification standards; and~~ 
110.2      ~~(3) the proximity of the nursing facility to a~~ 
110.3   ~~ventilator-dependent person identified by the commissioner who~~ 
110.4   ~~requires nursing facility placement.~~  
110.5      The commissioner may negotiate an adjustment to the 
110.6   operating cost payment rate for a nursing facility ~~selected by~~ 
110.7   ~~the commissioner from among respondents to the request for~~ 
110.8   ~~proposals~~ with a resident who is ventilator-dependent, for that 
110.9   resident.  The negotiated adjustment must reflect only the 
110.10  actual additional cost of meeting the specialized care needs of 
110.11  a ventilator-dependent person identified by the commissioner for 
110.12  whom necessary services cannot be provided under existing 
110.13  nursing facility rates and which are not otherwise covered under 
110.14  Minnesota Rules, parts 9549.0010 to 9549.0080 or 9505.0170 to 
110.15  9505.0475.  For persons who are initially admitted to a nursing 
110.16  facility before July 1, 2001, and have their payment rate under 
110.17  this subdivision negotiated after July 1, 2001, the negotiated 
110.18  payment rate must not exceed 200 percent of the highest multiple 
110.19  bedroom payment rate for the facility, as initially established 
110.20  by the commissioner for the rate year for case mix 
110.21  classification K; or, upon implementation of the RUGs-based case 
110.22  mix system, 200 percent of the highest RUGs rate.  For persons 
110.23  initially admitted to a nursing facility on or after July 1, 
110.24  2001, the negotiated payment rate must not exceed 300 percent of 
110.25  the facility's multiple bedroom payment rate for case mix 
110.26  classification K; or, upon implementation of the RUGs-based case 
110.27  mix system, 300 percent of the highest RUGs rate.  The 
110.28  negotiated adjustment shall not affect the payment rate charged 
110.29  to private paying residents under the provisions of section 
110.30  256B.48, subdivision 1.  
110.31     Sec. 29.  Minnesota Statutes 2000, section 256B.431, 
110.32  subdivision 14, is amended to read: 
110.33     Subd. 14.  [LIMITATIONS ON SALES OF NURSING FACILITIES.] 
110.34  (a) For rate periods beginning on October 1, 1992, and for rate 
110.35  years beginning after June 30, 1993, a nursing facility's 
110.36  property-related payment rate as established under subdivision 
111.1   13 shall be adjusted by either paragraph (b) or (c) for the sale 
111.2   of the nursing facility, including sales occurring after June 
111.3   30, 1992, as provided in this subdivision. 
111.4      (b) If the nursing facility's property-related payment rate 
111.5   under subdivision 13 prior to sale is greater than the nursing 
111.6   facility's rental rate under Minnesota Rules, parts 9549.0010 to 
111.7   9549.0080, and this section prior to sale, the nursing 
111.8   facility's property-related payment rate after sale shall be the 
111.9   greater of its property-related payment rate under subdivision 
111.10  13 prior to sale or its rental rate under Minnesota Rules, parts 
111.11  9549.0010 to 9549.0080, and this section calculated after sale. 
111.12     (c) If the nursing facility's property-related payment rate 
111.13  under subdivision 13 prior to sale is equal to or less than the 
111.14  nursing facility's rental rate under Minnesota Rules, parts 
111.15  9549.0010 to 9549.0080, and this section prior to sale, the 
111.16  nursing facility's property-related payment rate after sale 
111.17  shall be the nursing facility's property-related payment rate 
111.18  under subdivision 13 plus the difference between its rental rate 
111.19  calculated under Minnesota Rules, parts 9549.0010 to 9549.0080, 
111.20  and this section prior to sale and its rental rate calculated 
111.21  under Minnesota Rules, parts 9549.0010 to 9549.0080, and this 
111.22  section calculated after sale. 
111.23     (d) For purposes of this subdivision, "sale" means the 
111.24  purchase of a nursing facility's capital assets with cash or 
111.25  debt.  The term sale does not include a stock purchase of a 
111.26  nursing facility or any of the following transactions:  
111.27     (1) a sale and leaseback to the same licensee that does not 
111.28  constitute a change in facility license; 
111.29     (2) a transfer of an interest to a trust; 
111.30     (3) gifts or other transfers for no consideration; 
111.31     (4) a merger of two or more related organizations; 
111.32     (5) a change in the legal form of doing business, other 
111.33  than a publicly held organization that becomes privately held or 
111.34  vice versa; 
111.35     (6) the addition of a new partner, owner, or shareholder 
111.36  who owns less than 20 percent of the nursing facility or the 
112.1   issuance of stock; and 
112.2      (7) a sale, merger, reorganization, or any other transfer 
112.3   of interest between related organizations other than those 
112.4   permitted in this section.  
112.5      (e) For purposes of this subdivision, "sale" includes the 
112.6   sale or transfer of a nursing facility to a close relative as 
112.7   defined in Minnesota Rules, part 9549.0020, subpart 38, item C, 
112.8   upon the death of an owner, due to serious illness or 
112.9   disability, as defined under the Social Security Act, under 
112.10  United States Code, title 42, section 423(d)(1)(A), or upon 
112.11  retirement of an owner from the business of owning or operating 
112.12  a nursing home at 62 years of age or older.  For sales to a 
112.13  close relative allowed under this paragraph, otherwise 
112.14  nonallowable debt resulting from seller financing of all or a 
112.15  portion of the debt resulting from the sale shall be allowed and 
112.16  shall not be subject to Minnesota Rules, part 9549.0060, subpart 
112.17  5, item E, provided that in addition to existing requirements 
112.18  for allowance of debt and interest, the debt is subject to 
112.19  repayment through annual principal payments and the interest 
112.20  rate on the related organization debt does not exceed three 
112.21  percentage points above the posted yield for standard 
112.22  conventional fixed rate mortgages of the Federal Home Loan 
112.23  Mortgage Corporation for delivery in 60 days in effect on the 
112.24  day of sale.  If at any time, the seller forgives the related 
112.25  organization debt allowed under this paragraph for other than 
112.26  equal amount of payment on that debt, then the buyer shall pay 
112.27  to the state the total revenue received by the nursing facility 
112.28  after the sale attributable to the amount of allowable debt 
112.29  which has been forgiven.  Any assignment, sale, or transfer of 
112.30  the debt instrument entered into by the close relatives, either 
112.31  directly or indirectly, which grants to the close relative buyer 
112.32  the right to receive all or a portion of the payments under the 
112.33  debt instrument shall, effective on the date of the transfer, 
112.34  result in the prospective reduction in the corresponding portion 
112.35  of the allowable debt and interest expense.  Upon the death of 
112.36  the close relative seller, any remaining balance of the close 
113.1   relative debt must be refinanced and such refinancing shall be 
113.2   subject to the provisions of Minnesota Rules, part 9549.0060, 
113.3   subpart 7, item G.  This paragraph shall not apply to sales 
113.4   occurring on or after June 30, 1997.  
113.5      (f) For purposes of this subdivision, "effective date of 
113.6   sale" means the later of either the date on which legal title to 
113.7   the capital assets is transferred or the date on which closing 
113.8   for the sale occurred.  
113.9      (g) The effective day for the property-related payment rate 
113.10  determined under this subdivision shall be the first day of the 
113.11  month following the month in which the effective date of sale 
113.12  occurs or October 1, 1992, whichever is later, provided that the 
113.13  notice requirements under section 256B.47, subdivision 2, have 
113.14  been met. 
113.15     (h) Notwithstanding Minnesota Rules, part 9549.0060, 
113.16  subparts 5, item A, subitems (3) and (4), and 7, items E and F, 
113.17  the commissioner shall limit the total allowable debt and 
113.18  related interest for sales occurring after June 30, 1992, to the 
113.19  sum of clauses (1) to (3):  
113.20     (1) the historical cost of capital assets, as of the 
113.21  nursing facility's most recent previous effective date of sale 
113.22  or, if there has been no previous sale, the nursing facility's 
113.23  initial historical cost of constructing capital assets; 
113.24     (2) the average annual capital asset additions after 
113.25  deduction for capital asset deletions, not including 
113.26  depreciations; and 
113.27     (3) one-half of the allowed inflation on the nursing 
113.28  facility's capital assets.  The commissioner shall compute the 
113.29  allowed inflation as described in paragraph ~~(h)~~ (i). 
113.30     (i) For purposes of computing the amount of allowed 
113.31  inflation, the commissioner must apply the following principles: 
113.32     (1) the lesser of the Consumer Price Index for all urban 
113.33  consumers or the Dodge Construction Systems Costs for Nursing 
113.34  Homes for any time periods during which both are available must 
113.35  be used.  If the Dodge Construction Systems Costs for Nursing 
113.36  Homes becomes unavailable, the commissioner shall substitute the 
114.1   index in subdivision 3f, or such other index as the secretary of 
114.2   the health care financing administration may designate; 
114.3      (2) the amount of allowed inflation to be applied to the 
114.4   capital assets in paragraph (g), clauses (1) and (2), must be 
114.5   computed separately; 
114.6      (3) the amount of allowed inflation must be determined on 
114.7   an annual basis, prorated on a monthly basis for partial years 
114.8   and if the initial month of use is not determinable for a 
114.9   capital asset, then one-half of that calendar year shall be used 
114.10  for purposes of prorating; 
114.11     (4) the amount of allowed inflation to be applied to the 
114.12  capital assets in paragraph (g), clauses (1) and (2), must not 
114.13  exceed 300 percent of the total capital assets in any one of 
114.14  those clauses; and 
114.15     (5) the allowed inflation must be computed starting with 
114.16  the month following the nursing facility's most recent previous 
114.17  effective date of sale or, if there has been no previous sale, 
114.18  the month following the date of the nursing facility's initial 
114.19  occupancy, and ending with the month preceding the effective 
114.20  date of sale. 
114.21     (j) If the historical cost of a capital asset is not 
114.22  readily available for the date of the nursing facility's most 
114.23  recent previous sale or if there has been no previous sale for 
114.24  the date of the nursing facility's initial occupancy, then the 
114.25  commissioner shall limit the total allowable debt and related 
114.26  interest after sale to the extent recognized by the Medicare 
114.27  intermediary after the sale.  For a nursing facility that has no 
114.28  historical capital asset cost data available and does not have 
114.29  allowable debt and interest calculated by the Medicare 
114.30  intermediary, the commissioner shall use the historical cost of 
114.31  capital asset data from the point in time for which capital 
114.32  asset data is recorded in the nursing facility's audited 
114.33  financial statements. 
114.34     (k) The limitations in this subdivision apply only to debt 
114.35  resulting from a sale of a nursing facility occurring after June 
114.36  30, 1992, including debt assumed by the purchaser of the nursing 
115.1   facility. 
115.2      Sec. 30.  Minnesota Statutes 2000, section 256B.431, 
115.3   subdivision 30, is amended to read: 
115.4      Subd. 30.  [BED LAYAWAY AND DELICENSURE.] (a) For rate 
115.5   years beginning on or after July 1, 2000, a nursing facility 
115.6   reimbursed under this section which has placed beds on layaway 
115.7   shall, for purposes of application of the downsizing incentive 
115.8   in subdivision 3a, paragraph ~~(d)~~ (c), and calculation of the 
115.9   rental per diem, have those beds given the same effect as if the 
115.10  beds had been delicensed so long as the beds remain on layaway.  
115.11  At the time of a layaway, a facility may change its single bed 
115.12  election for use in calculating capacity days under Minnesota 
115.13  Rules, part 9549.0060, subpart 11.  The property payment rate 
115.14  increase shall be effective the first day of the month following 
115.15  the month in which the layaway of the beds becomes effective 
115.16  under section 144A.071, subdivision 4b. 
115.17     (b) For rate years beginning on or after July 1, 2000, 
115.18  notwithstanding any provision to the contrary under section 
115.19  256B.434, a nursing facility reimbursed under that section which 
115.20  has placed beds on layaway shall, for so long as the beds remain 
115.21  on layaway, be allowed to: 
115.22     (1) aggregate the applicable investment per bed limits 
115.23  based on the number of beds licensed immediately prior to 
115.24  entering the alternative payment system; 
115.25     (2) retain or change the facility's single bed election for 
115.26  use in calculating capacity days under Minnesota Rules, part 
115.27  9549.0060, subpart 11; and 
115.28     (3) establish capacity days based on the number of beds 
115.29  immediately prior to the layaway and the number of beds after 
115.30  the layaway. 
115.31  The commissioner shall increase the facility's property payment 
115.32  rate by the incremental increase in the rental per diem 
115.33  resulting from the recalculation of the facility's rental per 
115.34  diem applying only the changes resulting from the layaway of 
115.35  beds and clauses (1), (2), and (3).  If a facility reimbursed 
115.36  under section 256B.434 completes a moratorium exception project 
116.1   after its base year, the base year property rate shall be the 
116.2   moratorium project property rate.  The base year rate shall be 
116.3   inflated by the factors in section 256B.434, subdivision 4, 
116.4   paragraph (c).  The property payment rate increase shall be 
116.5   effective the first day of the month following the month in 
116.6   which the layaway of the beds becomes effective. 
116.7      (c) If a nursing facility removes a bed from layaway status 
116.8   in accordance with section 144A.071, subdivision 4b, the 
116.9   commissioner shall establish capacity days based on the number 
116.10  of licensed and certified beds in the facility not on layaway 
116.11  and shall reduce the nursing facility's property payment rate in 
116.12  accordance with paragraph (b). 
116.13     (d) For the rate years beginning on or after July 1, 2000, 
116.14  notwithstanding any provision to the contrary under section 
116.15  256B.434, a nursing facility reimbursed under that section, 
116.16  which has delicensed beds after July 1, 2000, by giving notice 
116.17  of the delicensure to the commissioner of health according to 
116.18  the notice requirements in section 144A.071, subdivision 4b, 
116.19  shall be allowed to: 
116.20     (1) aggregate the applicable investment per bed limits 
116.21  based on the number of beds licensed immediately prior to 
116.22  entering the alternative payment system; 
116.23     (2) retain or change the facility's single bed election for 
116.24  use in calculating capacity days under Minnesota Rules, part 
116.25  9549.0060, subpart 11; and 
116.26     (3) establish capacity days based on the number of beds 
116.27  immediately prior to the delicensure and the number of beds 
116.28  after the delicensure. 
116.29  The commissioner shall increase the facility's property payment 
116.30  rate by the incremental increase in the rental per diem 
116.31  resulting from the recalculation of the facility's rental per 
116.32  diem applying only the changes resulting from the delicensure of 
116.33  beds and clauses (1), (2), and (3).  If a facility reimbursed 
116.34  under section 256B.434 completes a moratorium exception project 
116.35  after its base year, the base year property rate shall be the 
116.36  moratorium project property rate.  The base year rate shall be 
117.1   inflated by the factors in section 256B.434, subdivision 4, 
117.2   paragraph (c).  The property payment rate increase shall be 
117.3   effective the first day of the month following the month in 
117.4   which the delicensure of the beds becomes effective. 
117.5      (e) For nursing facilities reimbursed under this section or 
117.6   section 256B.434, any beds placed on layaway shall not be 
117.7   included in calculating facility occupancy as it pertains to 
117.8   leave days defined in Minnesota Rules, part 9505.0415. 
117.9      (f) For nursing facilities reimbursed under this section or 
117.10  section 256B.434, the rental rate calculated after placing beds 
117.11  on layaway may not be less than the rental rate prior to placing 
117.12  beds on layaway. 
117.13     (g) A nursing facility receiving a rate adjustment as a 
117.14  result of this section shall comply with section 256B.47, 
117.15  subdivision 2. 
117.16     (h) A facility that does not utilize the space made 
117.17  available as a result of bed layaway or delicensure under this 
117.18  subdivision to reduce the number of beds per room or provide 
117.19  more common space for nursing facility uses or perform other 
117.20  activities related to the operation of the nursing facility 
117.21  shall have its property rate increase calculated under this 
117.22  subdivision reduced by the ratio of the square footage made 
117.23  available that is not used for these purposes to the total 
117.24  square footage made available as a result of bed layaway or 
117.25  delicensure. 
117.26     Sec. 31.  Minnesota Statutes 2001 Supplement, section 
117.27  256B.431, subdivision 33, is amended to read: 
117.28     Subd. 33.  [STAGED REDUCTION IN RATE DISPARITIES.] (a) For 
117.29  the rate years beginning July 1, 2001, and July 1, 2002, the 
117.30  commissioner shall adjust the operating payment rates for 
117.31  low-rate nursing facilities reimbursed under this section or 
117.32  section 256B.434.  
117.33     (b) For the rate year beginning July 1, 2001, for each case 
117.34  mix level, if the amount computed under subdivision ~~32~~ 31 is 
117.35  less than the amount in clause (1), the commissioner shall make 
117.36  available the lesser of the amount in clause (1) or an increase 
118.1   of ten percent over the rate in effect on June 30, 2001, as an 
118.2   adjustment to the operating payment rate.  For the rate year 
118.3   beginning July 1, 2002, for each case mix level, if the amount 
118.4   computed under subdivision ~~32~~ 31 is less than the amount in 
118.5   clause (2), the commissioner shall make available the lesser of 
118.6   the amount in clause (2) or an increase of ten percent over the 
118.7   rate in effect on June 30, 2002, as an adjustment to the 
118.8   operating payment rate.  For purposes of this subdivision, 
118.9   nursing facilities shall be considered to be metro if they are 
118.10  located in Anoka, Carver, Dakota, Hennepin, Olmsted, Ramsey, 
118.11  Scott, or Washington counties; or in the cities of Moorhead or 
118.12  Breckenridge; or in St. Louis county, north of Toivola and south 
118.13  of Cook; or in Itasca county, east of a north south line two 
118.14  miles west of Grand Rapids:  
118.15     (1) Operating Payment Rate Target Level for July 1, 2001: 
118.16      Case Mix Classification        Metro       Nonmetro
118.17                A                    $ 76.00     $ 68.13
118.18                B                    $ 83.40     $ 74.46
118.19                C                    $ 91.67     $ 81.63
118.20                D                    $ 99.51     $ 88.04
118.21                E                    $107.46     $ 94.87
118.22                F                    $107.96     $ 95.29
118.23                G                    $114.67     $100.98
118.24                H                    $126.99     $111.31
118.25                I                    $131.42     $115.06
118.26                J                    $138.34     $120.85
118.27                K                    $152.26     $133.10
118.28     (2) Operating Payment Rate Target Level for July 1, 2002: 
118.29      Case Mix Classification        Metro       Nonmetro
118.30                A                    $ 78.28     $ 70.51
118.31                B                    $ 85.91     $ 77.16
118.32                C                    $ 94.42     $ 84.62
118.33                D                    $102.50     $ 91.42
118.34                E                    $110.68     $ 98.40
118.35                F                    $111.20     $ 98.84
118.36                G                    $118.11     $104.77
119.1                 H                    $130.80     $115.64
119.2                 I                    $135.38     $119.50
119.3                 J                    $142.49     $125.38
119.4                 K                    $156.85     $137.77
119.5      Sec. 32.  Minnesota Statutes 2001 Supplement, section 
119.6   256B.437, subdivision 3, is amended to read: 
119.7      Subd. 3.  [APPLICATIONS FOR PLANNED CLOSURE OF NURSING 
119.8   FACILITIES.] (a) By August 15, 2001, the commissioner of human 
119.9   services shall implement and announce a program for closure or 
119.10  partial closure of nursing facilities.  Names and identifying 
119.11  information provided in response to the announcement shall 
119.12  remain private unless approved, according to the timelines 
119.13  established in the plan.  The announcement must specify: 
119.14     (1) the criteria in subdivision 4 that will be used by the 
119.15  commissioner to approve or reject applications; 
119.16     (2) ~~a requirement for the submission of a letter of intent~~ 
119.17  ~~before the submission of an application;~~ 
119.18     ~~(3)~~ the information that must accompany an application; and 
119.19     ~~(4)~~ (3) that applications may combine planned closure rate 
119.20  adjustments with moratorium exception funding, in which case a 
119.21  single application may serve both purposes. 
119.22  Between August 1, 2001, and June 30, 2003, the commissioner may 
119.23  approve planned closures of up to 5,140 nursing facility beds, 
119.24  less the number of ~~licensed~~ beds delicensed in facilities ~~that~~ 
119.25  ~~close~~ during the same time period without approved closure plans 
119.26  or that have notified the commissioner of health of their intent 
119.27  to close without an approved closure plan. 
119.28     (b) A facility or facilities reimbursed under section 
119.29  256B.431 or 256B.434 with a closure plan approved by the 
119.30  commissioner under subdivision 5 may assign a planned closure 
119.31  rate adjustment to another facility or facilities that are not 
119.32  closing or in the case of a partial closure, to the facility 
119.33  undertaking the partial closure.  A facility may also elect to 
119.34  have a planned closure rate adjustment shared equally by the 
119.35  five nursing facilities with the lowest total operating payment 
119.36  rates in the state development region designated under section 
120.1   462.385, in which the facility that is closing is located.  The 
120.2   planned closure rate adjustment must be calculated under 
120.3   subdivision 6.  Facilities that ~~close~~ delicense beds without a 
120.4   closure plan, or whose closure plan is not approved by the 
120.5   commissioner, are not eligible to assign a planned closure rate 
120.6   adjustment under subdivision 6~~.~~, unless they are delicensing 
120.7   five or fewer beds, or less than six percent of their total 
120.8   licensed bed capacity, whichever is greater.  Facilities 
120.9   delicensing, in any three-month period, five or fewer beds or 
120.10  less than six percent of their total licensed bed capacity, 
120.11  whichever is greater, without an approved closure plan are 
120.12  eligible to assign the amount calculated under subdivision 6 to 
120.13  themselves, if the facilities are located in a county that is in 
120.14  the top three quartiles when ranked on nursing facility beds per 
120.15  thousand individuals age 65 and older.  When facilities are 
120.16  delicensing more than five beds, or six percent or more of their 
120.17  total licensed bed capacity, whichever is greater, and if they 
120.18  do not have an approved closure plan or are not eligible for the 
120.19  adjustment under subdivision 6, the commissioner shall calculate 
120.20  the amount the facility or facilities would have been eligible 
120.21  to assign under subdivision 6, and shall use this amount to 
120.22  provide equal rate adjustments to the five nursing facilities 
120.23  with the lowest total operating payment rates in the state 
120.24  development region designated under section 462.385, in which 
120.25  the facility or facilities that ~~closed is~~ delicense beds are 
120.26  located. 
120.27     (c) To be considered for approval, an application must 
120.28  include: 
120.29     (1) a description of the proposed closure plan, which must 
120.30  include identification of the facility or facilities to receive 
120.31  a planned closure rate adjustment ~~and the amount and timing of a~~ 
120.32  ~~planned closure rate adjustment proposed for each facility~~; 
120.33     (2) the proposed timetable for any proposed closure, 
120.34  including the proposed dates for announcement to residents, 
120.35  commencement of closure, and completion of closure; 
120.36     (3) if available, the proposed relocation plan for current 
121.1   residents of any facility designated for closure.  ~~The proposed~~ 
121.2   If a relocation plan is not available, the application must 
121.3   include a statement agreeing to develop a relocation plan ~~must~~ 
121.4   ~~be~~ designed to comply with ~~all applicable state and federal~~ 
121.5   ~~statutes and regulations, including, but not limited to,~~ section 
121.6   144A.161; 
121.7      (4) a description of the relationship between the nursing 
121.8   facility that is proposed for closure and the nursing facility 
121.9   or facilities proposed to receive the planned closure rate 
121.10  adjustment.  If these facilities are not under common ownership, 
121.11  copies of any contracts, purchase agreements, or other documents 
121.12  establishing a relationship or proposed relationship must be 
121.13  provided; 
121.14     (5) documentation, in a format approved by the 
121.15  commissioner, that all the nursing facilities receiving a 
121.16  planned closure rate adjustment under the plan have accepted 
121.17  joint and several liability for recovery of overpayments under 
121.18  section 256B.0641, subdivision 2, for the facilities designated 
121.19  for closure under the plan; and 
121.20     (6) an explanation of how the application coordinates with 
121.21  planning efforts under subdivision 2.  If the planning group 
121.22  does not support a level of nursing facility closures that the 
121.23  commissioner considers to be reasonable, the commissioner may 
121.24  approve a planned closure proposal without its support. 
121.25     (d) The application must address the criteria listed in 
121.26  subdivision 4. 
121.27     Sec. 33.  Minnesota Statutes 2001 Supplement, section 
121.28  256B.437, subdivision 6, is amended to read: 
121.29     Subd. 6.  [PLANNED CLOSURE RATE ADJUSTMENT.] (a) The 
121.30  commissioner of human services shall calculate the amount of the 
121.31  planned closure rate adjustment available under subdivision 3, 
121.32  paragraph (b), for up to 5,140 beds according to clauses (1) to 
121.33  (4): 
121.34     (1) the amount available is the net reduction of nursing 
121.35  facility beds multiplied by $2,080; 
121.36     (2) the total number of beds in the nursing facility or 
122.1   facilities receiving the planned closure rate adjustment must be 
122.2   identified; 
122.3      (3) capacity days are determined by multiplying the number 
122.4   determined under clause (2) by 365; and 
122.5      (4) the planned closure rate adjustment is the amount 
122.6   available in clause (1), divided by capacity days determined 
122.7   under clause (3). 
122.8      (b) A planned closure rate adjustment under this section is 
122.9   effective on the first day of the month following completion of 
122.10  closure of the facility designated for closure in the 
122.11  application and becomes part of the nursing facility's total 
122.12  operating payment rate. 
122.13     (c) Applicants may use the planned closure rate adjustment 
122.14  to allow for a property payment for a new nursing facility or an 
122.15  addition to an existing nursing facility or as an operating 
122.16  payment rate adjustment.  Applications approved under this 
122.17  subdivision are exempt from other requirements for moratorium 
122.18  exceptions under section 144A.073, subdivisions 2 and 3. 
122.19     (d) Upon the request of a closing facility, the 
122.20  commissioner must allow the facility a closure rate adjustment 
122.21  as provided under section 144A.161, subdivision 10. 
122.22     (e) If the per bed dollar amount specified in paragraph 
122.23  (a), clause (1) is increased, the commissioner shall recalculate 
122.24  planned closure rate adjustments for facilities that delicense 
122.25  beds under this section on or after July 1, 2001, to reflect the 
122.26  increase in the per bed dollar amount.  The recalculated planned 
122.27  closure rate adjustment shall be effective from the date the per 
122.28  bed dollar amount is increased. 
122.29     (f) A facility that has received a planned closure rate 
122.30  adjustment may reassign it to another facility that is under the 
122.31  same ownership at any time within three years of its effective 
122.32  date.  The amount of the adjustment shall be computed according 
122.33  to paragraph (a). 
122.34     Sec. 34.  Minnesota Statutes 2001 Supplement, section 
122.35  256B.438, subdivision 1, is amended to read: 
122.36     Subdivision 1.  [SCOPE.] This section establishes the 
123.1   method and criteria used to determine resident reimbursement 
123.2   classifications based upon the assessments of residents of 
123.3   nursing homes and boarding care homes whose payment rates are 
123.4   established under section 256B.431, 256B.434, or 256B.435.  
123.5   Resident reimbursement classifications shall be established 
123.6   according to the 34 group, resource utilization groups, version 
123.7   III or RUG-III model as described in section 144.0724.  
123.8   Reimbursement classifications established under this section 
123.9   shall be implemented after June 30, 2002, but no later than 
123.10  January 1, 2003.  Reimbursement classifications established 
123.11  under this section shall be implemented no earlier than six 
123.12  weeks after the commissioner mails notices of payment rates to 
123.13  the facilities. 
123.14     Sec. 35.  Minnesota Statutes 2000, section 256B.5012, 
123.15  subdivision 2, is amended to read: 
123.16     Subd. 2.  [OPERATING PAYMENT RATE.] (a) The operating 
123.17  payment rate equals the facility's total payment rate in effect 
123.18  on September 30, 2000, minus the property rate.  The operating 
123.19  payment rate includes the special operating rate and the 
123.20  efficiency incentive in effect as of September 30, 2000.  Within 
123.21  the limits of appropriations specifically for this purpose, the 
123.22  operating payment shall be increased for each rate year by the 
123.23  annual percentage change in the Employment Cost Index for 
123.24  Private Industry Workers - Total Compensation, as forecasted by 
123.25  the commissioner of finance's economic consultant, in the second 
123.26  quarter of the calendar year preceding the start of each rate 
123.27  year.  In the case of the initial rate year beginning October 1, 
123.28  2000, and continuing through December 31, 2001, the percentage 
123.29  change shall be based on the percentage change in the Employment 
123.30  Cost Index for Private Industry Workers - Total Compensation for 
123.31  the 15-month period beginning October 1, 2000, as forecast by 
123.32  Data Resources, Inc., in the first quarter of 2000. 
123.33     (b) Effective October 1, 2000, the operating payment rate 
123.34  shall be adjusted to reflect an occupancy rate equal to 100 
123.35  percent of the facility's capacity days as of September 30, 2000.
123.36     (c) Effective July 1, 2001, the operating payment rate 
124.1   shall be adjusted for the increases in the department of health 
124.2   licensing fees that were authorized in Laws 2001, First Special 
124.3   Session chapter 9, article 1, section 30. 
124.4      Sec. 36.  Minnesota Statutes 2001 Supplement, section 
124.5   256B.76, is amended to read: 
124.6      256B.76 [PHYSICIAN AND DENTAL REIMBURSEMENT.] 
124.7      (a) Effective for services rendered on or after October 1, 
124.8   1992, the commissioner shall make payments for physician 
124.9   services as follows: 
124.10     (1) payment for level one Health Care Finance 
124.11  Administration's common procedural coding system (HCPCS) codes 
124.12  titled "office and other outpatient services," "preventive 
124.13  medicine new and established patient," "delivery, antepartum, 
124.14  and postpartum care," "critical care," cesarean delivery and 
124.15  pharmacologic management provided to psychiatric patients, and 
124.16  HCPCS level three codes for enhanced services for prenatal high 
124.17  risk, shall be paid at the lower of (i) submitted charges, or 
124.18  (ii) 25 percent above the rate in effect on June 30, 1992.  If 
124.19  the rate on any procedure code within these categories is 
124.20  different than the rate that would have been paid under the 
124.21  methodology in section 256B.74, subdivision 2, then the larger 
124.22  rate shall be paid; 
124.23     (2) payments for all other services shall be paid at the 
124.24  lower of (i) submitted charges, or (ii) 15.4 percent above the 
124.25  rate in effect on June 30, 1992; 
124.26     (3) all physician rates shall be converted from the 50th 
124.27  percentile of 1982 to the 50th percentile of 1989, less the 
124.28  percent in aggregate necessary to equal the above increases 
124.29  except that payment rates for home health agency services shall 
124.30  be the rates in effect on September 30, 1992; 
124.31     (4) effective for services rendered on or after January 1, 
124.32  2000, payment rates for physician and professional services 
124.33  shall be increased by three percent over the rates in effect on 
124.34  December 31, 1999, except for home health agency and family 
124.35  planning agency services; and 
124.36     (5) the increases in clause (4) shall be implemented 
125.1   January 1, 2000, for managed care. 
125.2      (b) Effective for services rendered on or after October 1, 
125.3   1992, the commissioner shall make payments for dental services 
125.4   as follows: 
125.5      (1) dental services shall be paid at the lower of (i) 
125.6   submitted charges, or (ii) 25 percent above the rate in effect 
125.7   on June 30, 1992; 
125.8      (2) dental rates shall be converted from the 50th 
125.9   percentile of 1982 to the 50th percentile of 1989, less the 
125.10  percent in aggregate necessary to equal the above increases; 
125.11     (3) effective for services rendered on or after January 1, 
125.12  2000, payment rates for dental services shall be increased by 
125.13  three percent over the rates in effect on December 31, 1999; 
125.14     (4) the commissioner shall award grants to community 
125.15  clinics or other nonprofit community organizations, political 
125.16  subdivisions, professional associations, or other organizations 
125.17  that demonstrate the ability to provide dental services 
125.18  effectively to public program recipients.  Grants may be used to 
125.19  fund the costs related to coordinating access for recipients, 
125.20  developing and implementing patient care criteria, upgrading or 
125.21  establishing new facilities, acquiring furnishings or equipment, 
125.22  recruiting new providers, or other development costs that will 
125.23  improve access to dental care in a region.  In awarding grants, 
125.24  the commissioner shall give priority to applicants that plan to 
125.25  serve areas of the state in which the number of dental providers 
125.26  is not currently sufficient to meet the needs of recipients of 
125.27  public programs or uninsured individuals.  The commissioner 
125.28  shall consider the following in awarding the grants: 
125.29     (i) potential to successfully increase access to an 
125.30  underserved population; 
125.31     (ii) the ability to raise matching funds; 
125.32     (iii) the long-term viability of the project to improve 
125.33  access beyond the period of initial funding; 
125.34     (iv) the efficiency in the use of the funding; and 
125.35     (v) the experience of the proposers in providing services 
125.36  to the target population. 
126.1      The commissioner shall monitor the grants and may terminate 
126.2   a grant if the grantee does not increase dental access for 
126.3   public program recipients.  The commissioner shall consider 
126.4   grants for the following: 
126.5      (i) implementation of new programs or continued expansion 
126.6   of current access programs that have demonstrated success in 
126.7   providing dental services in underserved areas; 
126.8      (ii) a pilot program for utilizing hygienists outside of a 
126.9   traditional dental office to provide dental hygiene services; 
126.10  and 
126.11     (iii) a program that organizes a network of volunteer 
126.12  dentists, establishes a system to refer eligible individuals to 
126.13  volunteer dentists, and through that network provides donated 
126.14  dental care services to public program recipients or uninsured 
126.15  individuals; 
126.16     (5) beginning October 1, 1999, the payment for tooth 
126.17  sealants and fluoride treatments shall be the lower of (i) 
126.18  submitted charge, or (ii) 80 percent of median 1997 charges; 
126.19     (6) the increases listed in clauses (3) and (5) shall be 
126.20  implemented January 1, 2000, for managed care; and 
126.21     (7) effective for services provided on or after January 1, 
126.22  2002, payment for diagnostic examinations and dental x-rays 
126.23  provided to children under age 21 shall be the lower of (i) the 
126.24  submitted charge, or (ii) 85 percent of median 1999 charges.  
126.25     (c) Effective for dental services rendered on or after 
126.26  January 1, 2002, the commissioner may, within the limits of 
126.27  available appropriation, increase reimbursements to dentists and 
126.28  dental clinics deemed by the commissioner to be critical access 
126.29  dental providers.  Reimbursement to a critical access dental 
126.30  provider may be increased by not more than 50 percent above the 
126.31  reimbursement rate that would otherwise be paid to the 
126.32  provider.  Payments to health plan companies shall be adjusted 
126.33  to reflect increased reimbursements to critical access dental 
126.34  providers as approved by the commissioner.  In determining which 
126.35  dentists and dental clinics shall be deemed critical access 
126.36  dental providers, the commissioner shall review: 
127.1      (1) the utilization rate in the service area in which the 
127.2   dentist or dental clinic operates for dental services to 
127.3   patients covered by medical assistance, general assistance 
127.4   medical care, or MinnesotaCare as their primary source of 
127.5   coverage; 
127.6      (2) the level of services provided by the dentist or dental 
127.7   clinic to patients covered by medical assistance, general 
127.8   assistance medical care, or MinnesotaCare as their primary 
127.9   source of coverage; and 
127.10     (3) whether the level of services provided by the dentist 
127.11  or dental clinic is critical to maintaining adequate levels of 
127.12  patient access within the service area. 
127.13  In the absence of a critical access dental provider in a service 
127.14  area, the commissioner may designate a dentist or dental clinic 
127.15  as a critical access dental provider if the dentist or dental 
127.16  clinic is willing to provide care to patients covered by medical 
127.17  assistance, general assistance medical care, or MinnesotaCare at 
127.18  a level which significantly increases access to dental care in 
127.19  the service area. 
127.20     (d) Effective July 1, 2001, the medical assistance rates 
127.21  for outpatient mental health services provided by an entity that 
127.22  operates: 
127.23     (1) a Medicare-certified comprehensive outpatient 
127.24  rehabilitation facility; and 
127.25     (2) a facility that was certified prior to January 1, 1993, 
127.26  with at least 33 percent of the clients receiving rehabilitation 
127.27  services in the most recent calendar year are medical assistance 
127.28  recipients, will be increased by 38 percent, when those services 
127.29  are provided within the comprehensive outpatient rehabilitation 
127.30  facility and provided to residents of nursing facilities owned 
127.31  by the entity. 
127.32     (e) An entity that operates both a Medicare certified 
127.33  comprehensive outpatient rehabilitation facility and a facility 
127.34  which was certified prior to January 1, 1993, that is licensed 
127.35  under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
127.36  whom at least 33 percent of the clients receiving rehabilitation 
128.1   services in the most recent calendar year are medical assistance 
128.2   recipients, shall be reimbursed by the commissioner for 
128.3   rehabilitation services at rates that are 38 percent greater 
128.4   than the maximum reimbursement rate allowed under paragraph (a), 
128.5   clause (2), when those services are (1) provided within the 
128.6   comprehensive outpatient rehabilitation facility and (2) 
128.7   provided to residents of nursing facilities owned by the entity. 
128.8      Sec. 37.  [PILOT PROGRAM FOR DEAF-BLIND SERVICES.] 
128.9      (a) The commissioners of human services; children, 
128.10  families, and learning; and state services for the blind shall 
128.11  meet with deaf-blind citizens, parents of deaf-blind children, 
128.12  and the Minnesota commission serving deaf and hard-of-hearing 
128.13  individuals to determine which agency can most efficiently and 
128.14  effectively develop and administer a pilot program for 
128.15  consumer-directed services to provide needed services to 
128.16  deaf-blind adults, children, and their families. 
128.17     (b) The planning for this pilot program must proceed using 
128.18  current appropriations.  The agency that develops the pilot 
128.19  program described in paragraph (a) shall provide a report to the 
128.20  senate and house of representatives policy and fiscal committees 
128.21  having jurisdiction over human services issues by January 1, 
128.22  2003, that addresses future funding for the program.  The report 
128.23  shall include the program proposal, recommendations, and a 
128.24  fiscal note. 
128.25     Sec. 38.  [SERVICES FOR DEAF-BLIND PERSONS.] 
128.26     (a) Effective for fiscal years beginning on or after July 
128.27  1, 2003, the commissioner of human services shall combine the 
128.28  existing $1,000,000 biennial base level funding for deaf-blind 
128.29  services into a single grant program.  Within the limits of the 
128.30  appropriation for this purpose, each biennium at least $350,000 
128.31  shall be awarded for services to deaf-blind children and their 
128.32  families and at least $250,000 shall be awarded for services to 
128.33  deaf-blind adults. 
128.34     (b) The commissioner may make grants to organizations for: 
128.35     (1) services provided by the organizations; or 
128.36     (2) consumer-directed services. 
129.1      (c) Any entity that is able to satisfy the grant criteria 
129.2   is eligible to receive a grant under paragraph (a). 
129.3      (d) Deaf-blind service providers are not required to, but 
129.4   may, provide intervenor services as part of the service package 
129.5   provided with grant funds under this section. 
129.6      Sec. 39.  [FEASIBILITY ASSESSMENT OF MEDICAL ASSISTANCE 
129.7   EXPANSION TO COVER DEAF-BLIND SERVICES.] 
129.8      The commissioner of human services shall study and report 
129.9   to the legislature by January 15, 2003, with a feasibility 
129.10  assessment of the costs and policy implications, including the 
129.11  necessity of federal waivers, to expand benefits covered under 
129.12  medical assistance and under medical assistance waiver programs 
129.13  to include the following services for deaf-blind persons: 
129.14     (1) sign language interpreters; 
129.15     (2) intervenors; 
129.16     (3) support service persons; 
129.17     (4) orientation and mobility services; and 
129.18     (5) rehabilitation teaching services. 
129.19  Any costs related to this study shall be paid out of base-level 
129.20  funding to the commissioner for deaf-blind services. 
129.21     Sec. 40.  [CASE MANAGEMENT STUDY.] 
129.22     The commissioner of human services shall study case 
129.23  management services for persons with disabilities, in 
129.24  consultation with consumers, consumer advocates, and local 
129.25  social service agencies.  The commissioner shall report to the 
129.26  chairs and ranking minority members of the house and senate 
129.27  committees having jurisdiction over health and human services 
129.28  policy and funding, by January 15, 2003, on strategies that: 
129.29     (1) streamline administration; 
129.30     (2) improve case management service availability across the 
129.31  state; 
129.32     (3) enhance consumer access to needed services and 
129.33  supports; 
129.34     (4) improve accountability and the use of performance 
129.35  measures; 
129.36     (5) provide for consumer choice of vendor; and 
130.1      (6) improve the financing of case management services. 
130.2      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
130.3   following final enactment. 
130.4      Sec. 41.  [REPEALER; TARGETED CASE MANAGEMENT.] 
130.5      Minnesota Statutes 2001 Supplement, section 256B.0621, 
130.6   subdivision 1, is repealed. 
130.7                              ARTICLE 3 
130.8                            MISCELLANEOUS 
130.9      Section 1.  Minnesota Statutes 2000, section 144.05, is 
130.10  amended by adding a subdivision to read: 
130.11     Subd. 4.  [IDENTIFICATION OF DECEASED INDIVIDUALS.] Upon 
130.12  receiving notice under section 149A.90, subdivision 1, of the 
130.13  death of an individual who cannot be identified, the 
130.14  commissioner must post on the department's Web site information 
130.15  regarding the individual for purposes of obtaining information 
130.16  that may aid in identifying the individual and for purposes of 
130.17  notifying relatives who may be seeking the individual.  The 
130.18  information must remain on the Web site continuously until the 
130.19  person's identity is determined. 
130.20     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
130.21  149A.90, subdivision 1, is amended to read: 
130.22     Subdivision 1.  [DEATH RECORD.] (a) Except as provided in 
130.23  this section, a death record must be completed and filed for 
130.24  every known death by the mortician, funeral director, or other 
130.25  person lawfully in charge of the disposition of the body. 
130.26     (b) If the body is that of an individual whose identity is 
130.27  unknown, the person in charge of the disposition of the body 
130.28  must notify the commissioner for purposes of compliance with 
130.29  section 144.05, subdivision 4. 
130.30     Sec. 3.  Minnesota Statutes 2000, section 150A.06, is 
130.31  amended by adding a subdivision to read: 
130.32     Subd. 2c.  [GUEST LICENSE OR REGISTRATION.] (a) The board 
130.33  shall grant a guest license to practice as a dentist or dental 
130.34  hygienist or a guest registration to practice as a dental 
130.35  assistant if the following conditions are met: 
130.36     (1) the dentist, dental hygienist, or dental assistant is 
131.1   currently licensed or registered in good standing in North 
131.2   Dakota, South Dakota, Iowa, or Wisconsin; 
131.3      (2) the dentist, dental hygienist, or dental assistant is 
131.4   currently engaged in the practice of that person's respective 
131.5   profession in North Dakota, South Dakota, Iowa, or Wisconsin; 
131.6      (3) the dentist, dental hygienist, or dental assistant is 
131.7   seeking to practice in a public health setting in Minnesota that 
131.8   (i) is approved by the board; (ii) was established by a 
131.9   nonprofit organization that is tax exempt under chapter 
131.10  501(c)(3) of the Internal Revenue Code of 1986; and (iii) 
131.11  provides dental care to patients who have difficulty accessing 
131.12  dental care; 
131.13     (4) the dentist, dental hygienist, or dental assistant 
131.14  agrees to treat indigent patients who meet the eligibility 
131.15  criteria established by the clinic; and 
131.16     (5) the dentist, dental hygienist, or dental assistant has 
131.17  applied to the board for a guest license or registration, 
131.18  providing evidence of being currently licensed or registered in 
131.19  good standing in North Dakota, South Dakota, Iowa, or Wisconsin, 
131.20  and has paid a nonrefundable license fee to the board of $50. 
131.21     (b) A dentist, dental hygienist, or dental assistant 
131.22  practicing under a guest license or registration may only 
131.23  practice at a single, specific location in Minnesota.  A guest 
131.24  license or registration must be renewed annually with the board 
131.25  and an annual renewal fee of $50 must be paid to the board.  If 
131.26  the clinic in Minnesota at which a dentist, dental hygienist, or 
131.27  dental assistant seeks to practice permanently ceases operation, 
131.28  the guest license or registration issued under this subdivision 
131.29  is automatically revoked. 
131.30     (c) A dentist, dental hygienist, or dental assistant 
131.31  practicing under a guest license or registration under this 
131.32  subdivision shall have the same obligations as a dentist, dental 
131.33  hygienist, or dental assistant who is licensed in Minnesota and 
131.34  shall be subject to the laws and rules of Minnesota and the 
131.35  regulatory authority of the board.  If the board suspends or 
131.36  revokes the guest license or registration of, or otherwise 
132.1   disciplines, a dentist, dental hygienist, or dental assistant 
132.2   practicing under this subdivision, the board shall promptly 
132.3   report such disciplinary action to the dentist's, dental 
132.4   hygienist's, or dental assistant's regulatory board in the 
132.5   border state. 
132.6      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
132.7   following final enactment. 
132.8      Sec. 4.  Minnesota Statutes 2001 Supplement, section 
132.9   256B.69, subdivision 5b, is amended to read: 
132.10     Subd. 5b.  [PROSPECTIVE REIMBURSEMENT RATES.] (a) For 
132.11  prepaid medical assistance and general assistance medical care 
132.12  program contract rates set by the commissioner under subdivision 
132.13  5 and effective on or after January 1, 1998, capitation rates 
132.14  for nonmetropolitan counties shall on a weighted average be no 
132.15  less than 88 percent of the capitation rates for metropolitan 
132.16  counties, excluding Hennepin county.  The commissioner shall 
132.17  make a pro rata adjustment in capitation rates paid to counties 
132.18  other than nonmetropolitan counties in order to make this 
132.19  provision budget neutral.  The commissioner, in consultation 
132.20  with a health care actuary, shall evaluate the regional rate 
132.21  relationships based on actual health plan costs for Minnesota 
132.22  health care programs.  The commissioner may establish, based on 
132.23  the actuary's recommendation, new rate regions that recognize 
132.24  metropolitan areas outside of the seven-county metropolitan area.
132.25     (b) For prepaid medical assistance program contract rates 
132.26  set by the commissioner under subdivision 5 and effective on or 
132.27  after January 1, 2001, capitation rates for nonmetropolitan 
132.28  counties shall, on a weighted average, be no less than 89 
132.29  percent of the capitation rates for metropolitan counties, 
132.30  excluding Hennepin county. 
132.31     (c) This subdivision shall not affect the nongeographically 
132.32  based risk adjusted rates established under section 62Q.03, 
132.33  subdivision 5a. 
132.34     Sec. 5.  Minnesota Statutes 2000, section 261.063, is 
132.35  amended to read: 
132.36     261.063 [TAX LEVY FOR SOCIAL SERVICES; BOARD DUTY; 
133.1   PENALTY.] 
133.2      (a) The board of county commissioners of each county shall 
133.3   annually levy taxes and fix a rate sufficient to produce the 
133.4   full amount required for poor relief, general assistance, 
133.5   Minnesota family investment program, county share of county and 
133.6   state supplemental aid to supplemental security income 
133.7   applicants or recipients, and any other social security measures 
133.8   wherein there is now or may hereafter be county participation, 
133.9   sufficient to produce the full amount necessary for each such 
133.10  item, including administrative expenses, for the ensuing year, 
133.11  within the time fixed by law in addition to all other tax levies 
133.12  and tax rates, however fixed or determined, and any commissioner 
133.13  who shall fail to comply herewith shall be guilty of a gross 
133.14  misdemeanor and shall be immediately removed from office by the 
133.15  governor.  For the purposes of this paragraph, "poor relief" 
133.16  means county services provided under sections 261.035, 261.04, 
133.17  and 261.21 to 261.231. 
133.18     (b) Nothing within the provisions of this section shall be 
133.19  construed as requiring a county agency to provide income support 
133.20  or cash assistance to needy persons when they are no longer 
133.21  eligible for assistance under general assistance, the Minnesota 
133.22  family investment program, or Minnesota supplemental aid. 
133.23     Sec. 6.  [604A.33] [REFERENCE CHECKS BY CERTAIN HEALTH CARE 
133.24  PROVIDERS AND FACILITIES.] 
133.25     Subdivision 1.  [APPLICATION.] This section applies to 
133.26  residential treatment programs for children or group homes for 
133.27  children licensed under chapter 245A, residential services and 
133.28  programs for juveniles licensed under section 241.021, providers 
133.29  licensed pursuant to sections 144A.01 to 144A.33 or sections 
133.30  144A.43 to 144A.48, providers of day training and habilitation 
133.31  services under sections 252.40 to 252.46, board and lodging 
133.32  facilities licensed under chapter 157, intermediate care 
133.33  facilities for persons with mental retardation or related 
133.34  conditions, and other facilities licensed to provide residential 
133.35  services to persons with developmental disabilities. 
133.36     Subd. 2.  [CAUSES OF ACTION.] No action may be brought 
134.1   against a provider or facility listed in subdivision 1 or a 
134.2   designated employee or agent of such a provider or facility who 
134.3   discloses information regarding a former or current employee to 
134.4   a prospective employer as provided under this section.  This 
134.5   subdivision does not preclude a charge or action under chapter 
134.6   363, or an action arising from a disclosure that the plaintiff 
134.7   proves, by a preponderance of the evidence, was made 
134.8   fraudulently or with deliberate disregard as to its truth or 
134.9   falsity.  This subdivision does not preclude an action against a 
134.10  prospective employer for disclosing information received under 
134.11  this section.  
134.12     Subd. 3.  [REFERENCE CHECKS.] (a) Upon written request, a 
134.13  provider or facility listed in subdivision 1 or a designated 
134.14  employee or agent of such a provider or facility may disclose 
134.15  the following information about a current or former employee to 
134.16  a prospective employer: 
134.17     (1) dates of employment; 
134.18     (2) compensation and wage history; 
134.19     (3) job description and duties; 
134.20     (4) training and education provided by the employer; and 
134.21     (5) all acts of violence, theft, harassment, or illegal 
134.22  conduct documented in the personnel record which resulted in 
134.23  disciplinary action or resignation, and the employee's written 
134.24  response, if necessary, contained in the personnel record. 
134.25     (b) With the written authorization of the current or former 
134.26  employee, a provider or facility listed in subdivision 1 or a 
134.27  designated employee or agent of such a provider or facility may 
134.28  also disclose the following information in writing to a 
134.29  prospective employer: 
134.30     (1) written employee evaluations conducted prior to the 
134.31  employee's separation from the employer and the employee's 
134.32  written response, if any, contained in the employee's personnel 
134.33  record; 
134.34     (2) disciplinary warnings and actions in the five years 
134.35  before the date of the authorization and the employee's written 
134.36  response, if any, contained in the employee's personnel record; 
135.1   and 
135.2      (3) reasons for separation from employment. 
135.3      (c) The provider, facility, designated employee, or agent 
135.4   must provide a written copy of a disclosure made under this 
135.5   subdivision and information on to whom the disclosure was made 
135.6   to the current or former employee upon request. 
135.7      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2002, 
135.8   and applies to causes of action arising on or after that date.