1.1                          A bill for an act 
  1.2             relating to health and human services; assistance 
  1.3             programs; program integrity; child support 
  1.4             enforcement; mental health administration; home health 
  1.5             care; group residential housing; health care 
  1.6             administration; long-term care; children's services; 
  1.7             social services programs; mental health services; 
  1.8             long-term care facilities; appropriating money; 
  1.9             amending Minnesota Statutes 1994, sections 16B.08, 
  1.10            subdivision 5; 62A.045; 62A.046; 62A.048; 62A.27; 
  1.11            62J.04, subdivision 1a; 62J.09, subdivision 1a; 
  1.12            62J.152, subdivision 5; 62J.48; 62J.65; 62Q.01, 
  1.13            subdivisions 3 and 4; 62Q.41; 144.0721, by adding a 
  1.14            subdivision; 144.122; 144.226, subdivision 1; 157.03; 
  1.15            171.07, by adding a subdivision; 245.4871, by adding a 
  1.16            subdivision; 245.4875, by adding a subdivision; 
  1.17            245.4882, subdivision 5; 245.4886, by adding 
  1.18            subdivisions; 245A.14, subdivision 7; 246.18, 
  1.19            subdivision 4, and by adding a subdivision; 246.23, 
  1.20            subdivision 2; 246.56, by adding a subdivision; 
  1.21            252.27, subdivision 1a; 252.275, subdivisions 3, 4, 
  1.22            and 8; 252.292, subdivision 4; 252.46, subdivisions 1, 
  1.23            3, 6, and 17; 254B.02, subdivision 1; 254B.05, 
  1.24            subdivisions 1 and 4; 256.014, subdivision 1; 256.015, 
  1.25            subdivisions 2 and 7; 256.025, subdivisions 1 and 2; 
  1.26            256.026; 256.034, subdivision 1; 256.73, subdivisions 
  1.27            2 and 3a; 256.736, subdivisions 3 and 13; 256.74, 
  1.28            subdivision 1, and by adding a subdivision; 256.9365; 
  1.29            256.969, subdivisions 1, 16, and 24; 256.978, 
  1.30            subdivision 1; 256.98, subdivisions 1 and 8; 256.983, 
  1.31            subdivision 4, and by adding a subdivision; 256B.042, 
  1.32            subdivision 2; 256B.056, by adding a subdivision; 
  1.33            256B.059, subdivisions 1, 3, and 5; 256B.0595, 
  1.34            subdivisions 1, 2, 3, and 4; 256B.06, subdivision 4; 
  1.35            256B.0625, subdivision 13, and by adding a 
  1.36            subdivision; 256B.0627, subdivisions 1, 4, and 5; 
  1.37            256B.0628, subdivision 2, and by adding a subdivision; 
  1.38            256B.0641, subdivision 1; 256B.0911, subdivisions 2 
  1.39            and 4; 256B.0913, subdivisions 4, 5, 8, 12, 14, and by 
  1.40            adding a subdivision; 256B.0915, subdivisions 3, 5, 
  1.41            and by adding a subdivision; 256B.092, by adding a 
  1.42            subdivision; 256B.093, subdivisions 1, 2, and 3; 
  1.43            256B.15, subdivisions 1a, 2, and by adding a 
  1.44            subdivision; 256B.431, subdivisions 2j, 15, 22, 24, 
  1.45            and by adding subdivisions; 256B.432, subdivisions 1, 
  1.46            2, 3, 5, and 6; 256B.501, subdivisions 1, 3, 3c, 3g, 
  2.1             and by adding subdivisions; 256B.69, by adding a 
  2.2             subdivision; 256D.03, subdivisions 3b and 4; 256D.05, 
  2.3             subdivision 7; 256D.36, subdivision 1; 256D.385; 
  2.4             256D.405, subdivision 3; 256D.425, subdivision 1, and 
  2.5             by adding a subdivision; 256D.435, subdivisions 1, 3, 
  2.6             4, 5, 6, and by adding a subdivision; 256D.44, 
  2.7             subdivisions 1, 2, 3, 4, 5, and 6; 256D.45, 
  2.8             subdivision 1; 256D.46, subdivisions 1 and 2; 256D.48, 
  2.9             subdivision 1; 256F.09; 256H.01, subdivisions 9 and 
  2.10            12; 256H.02; 256H.03, subdivisions 1, 2a, 4, 6, and by 
  2.11            adding a subdivision; 256H.05, subdivision 6; 256H.08; 
  2.12            256H.11, subdivision 1; 256H.12, subdivision 1, and by 
  2.13            adding a subdivision; 256H.15, subdivision 1; 256H.18; 
  2.14            256H.20, subdivision 3a; 256I.03, subdivision 5, and 
  2.15            by adding a subdivision; 256I.04; 256I.05, 
  2.16            subdivisions 1, 1a, and 5; 256I.06, subdivisions 2 and 
  2.17            6; 257.55, subdivision 1; 257.57, subdivision 2; 
  2.18            257.62, subdivisions 1, 5, and 6; 257.64, subdivision 
  2.19            3; 257.69, subdivisions 1 and 2; 393.07, subdivision 
  2.20            10; 518.171, subdivisions 1, 2a, 3, 4, 5, 7, and 8; 
  2.21            518.575; 518.611, subdivisions 1, 2, 4, and 8a; 
  2.22            518.613, subdivisions 1, 2, and 7; 518.614, 
  2.23            subdivision 1; 518.615, subdivision 3; 518C.310; 
  2.24            524.6-207; 548.15; 550.37, subdivision 14; and 
  2.25            609.375, subdivision 1; Laws 1993, First Special 
  2.26            Session chapter 1, article 8, section 30, subdivision 
  2.27            2; proposing coding for new law in Minnesota Statutes, 
  2.28            chapters 252; 256; 256B; and 518; repealing Minnesota 
  2.29            Statutes 1994, sections 62C.141; 62C.143; 62D.106; 
  2.30            62E.04, subdivisions 9 and 10; 62J.152, subdivision 6; 
  2.31            62P.01; 62P.02; 62P.03; 62P.07; 62P.09; 62P.11; 
  2.32            62P.13; 62P.15; 62P.17; 62P.19; 62P.21; 62P.23; 
  2.33            62P.25; 62P.27; 62P.29; 62P.31; 62P.33; 252.275, 
  2.34            subdivisions 4a and 10; 256.851; 256D.35, subdivisions 
  2.35            14 and 19; 256D.36, subdivision 1a; 256D.37; 256D.425, 
  2.36            subdivision 3; 256D.435, subdivisions 2, 7, 8, 9, and 
  2.37            10; 256D.44, subdivision 7; 256H.03, subdivisions 2 
  2.38            and 5; and 518.561. 
  2.39     
  2.40  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.41                             ARTICLE 1
  2.42                           APPROPRIATIONS 
  2.43     Section 1.  [TOTAL APPROPRIATIONS.] 
  2.44     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.45  appropriated from the general fund, or any other fund named, to 
  2.46  the agencies and for the purposes specified in the following 
  2.47  sections of this article, to be available for the fiscal years 
  2.48  indicated for each purpose.  The figures "1996" and "1997" where 
  2.49  used in this article, mean that the appropriation or 
  2.50  appropriations listed under them are available for the fiscal 
  2.51  year ending June 30, 1996, or June 30, 1997, respectively.  
  2.52                          SUMMARY BY FUND
  2.53  APPROPRIATIONS                                      BIENNIAL
  2.54                            1996          1997           TOTAL
  2.55  General            $2,454,926,000 $2,659,543,000 $5,114,469,000
  3.1   State Government
  3.2   Special Revenue        24,041,000     24,521,000     48,562,000
  3.3   Special Revenue             8,000          8,000         16,000
  3.4   Metropolitan Landfill
  3.5   Contingency Action        193,000        193,000        386,000
  3.6   Trunk Highway           1,513,000      1,513,000      3,026,000
  3.7   Health Care Access    117,521,000    141,570,000    259,091,000
  3.8   Local Government
  3.9   Trust                  50,499,000        -0-         50,499,000
  3.10  TOTAL              $2,648,701,000 $2,827,348,000 $5,476,049,000
  3.11                                             APPROPRIATIONS 
  3.12                                         Available for the Year 
  3.13                                             Ending June 30 
  3.14                                            1996         1997 
  3.15  Sec. 2.  COMMISSIONER OF 
  3.16  HUMAN SERVICES 
  3.17  Subdivision 1.  Appropriations by Fund
  3.18  General Fund                      $2,396,280,000 $2,600,667,000
  3.19  Health Care Access                   110,306,000    135,211,000
  3.20  Local Government
  3.21  Trust                                 50,499,000        -0-    
  3.22  TOTAL                             $2,557,085,000 $2,735,878,000
  3.23  Federal receipts as shown in the 
  3.24  biennial budget document to be used for 
  3.25  financing activities, programs, and 
  3.26  projects under the supervision and 
  3.27  jurisdiction of the commissioner must 
  3.28  be credited to and become a part of the 
  3.29  appropriations provided for in this 
  3.30  section. 
  3.31  Subd. 2.  Finance and Management
  3.32  General
  3.33      24,583,000    26,751,000
  3.34  Health Care Access
  3.35       1,696,000     1,687,000
  3.36  Federal money received in excess of the 
  3.37  estimates shown in the 1996-1997 
  3.38  department of human services budget 
  3.39  document reduces the state 
  3.40  appropriation by the amount of the 
  3.41  excess receipts, unless the governor 
  3.42  directs otherwise, after consulting 
  3.43  with the legislative advisory 
  3.44  commission. 
  3.45  If the amount of federal money 
  3.46  anticipated to be received is less than 
  3.47  the estimates shown in the 1996-1997 
  3.48  proposed biennial budget document for 
  3.49  the department of human services, the 
  3.50  commissioner of finance shall reduce 
  4.1   the amount available from the direct 
  4.2   appropriation by a corresponding 
  4.3   amount.  The reductions must be noted 
  4.4   in the budget document submitted to the 
  4.5   81st legislature, in addition to an 
  4.6   estimate of similar federal money 
  4.7   anticipated for the biennium ending 
  4.8   June 30, 1999.  At the end of fiscal 
  4.9   years 1996 and 1997, the chairs of the 
  4.10  human services division of the house 
  4.11  health and human services committee and 
  4.12  the health care and family services 
  4.13  finance division of the senate 
  4.14  committees on health care and family 
  4.15  services shall receive written 
  4.16  notification explaining these 
  4.17  reductions. 
  4.18  The commissioner of human services, 
  4.19  with the approval of the commissioner 
  4.20  of finance, and after notification of 
  4.21  the chair of the senate health care and 
  4.22  family services finance division and 
  4.23  the chair of the house of 
  4.24  representatives health and human 
  4.25  services finance division, may transfer 
  4.26  unencumbered appropriation balances 
  4.27  among the Aid to Families with 
  4.28  Dependent Children, Aid to Families 
  4.29  with Dependent Children child care, 
  4.30  Minnesota family investment, general 
  4.31  assistance, general assistance medical 
  4.32  care, medical assistance, Minnesota 
  4.33  supplemental aid, group residential 
  4.34  housing and work readiness programs, 
  4.35  and the entitlement portion of the 
  4.36  chemical dependency consolidated 
  4.37  treatment fund, and between fiscal 
  4.38  years of the biennium.  
  4.39  Effective the day following final 
  4.40  enactment, the commissioner may 
  4.41  transfer unencumbered appropriation 
  4.42  balances for fiscal year 1995 among the 
  4.43  Aid to Families with Dependent 
  4.44  Children, Aid to Families with 
  4.45  Dependent Children child care, 
  4.46  Minnesota family investment, general 
  4.47  assistance, general assistance medical 
  4.48  care, medical assistance, Minnesota 
  4.49  supplemental aid, and work readiness 
  4.50  programs, and the entitlement portion 
  4.51  of the chemical dependency consolidated 
  4.52  treatment fund, with the approval of 
  4.53  the commissioner of finance after 
  4.54  notification of the chair of the senate 
  4.55  health care and family services finance 
  4.56  division and the chair of the house of 
  4.57  representatives health and human 
  4.58  services finance division.  
  4.59  Appropriations and federal receipts for 
  4.60  information system projects for MAXIS, 
  4.61  electronic benefit system, social 
  4.62  services information system, child 
  4.63  support enforcement, and the Minnesota 
  4.64  Medicaid information system must be 
  4.65  deposited in the state systems account 
  4.66  authorized in Minnesota Statutes, 
  4.67  section 256.014.  Money appropriated 
  4.68  for computer projects approved by the 
  5.1   information policy office, funded by 
  5.2   the legislature, and approved by the 
  5.3   commissioner of finance may be 
  5.4   transferred from one project to another 
  5.5   and from development to operations as 
  5.6   the commissioner of human services 
  5.7   considers necessary.  Any unexpended 
  5.8   balance in the appropriation for these 
  5.9   projects does not cancel but is 
  5.10  available for ongoing development and 
  5.11  operations. 
  5.12  The commissioner of human services 
  5.13  shall establish a special revenue fund 
  5.14  account to manage shared communication 
  5.15  costs necessary for the operation of 
  5.16  the programs the commissioner 
  5.17  supervises.  The commissioner may 
  5.18  distribute the costs of operating and 
  5.19  maintaining communication systems to 
  5.20  participants in a manner that reflects 
  5.21  actual system usage.  Costs may include 
  5.22  acquisition, licensing, insurance, 
  5.23  maintenance, repair, staff time, and 
  5.24  other direct costs as determined by the 
  5.25  commissioner.  The commissioner of 
  5.26  human services may accept for and on 
  5.27  behalf of the state any gift, bequest, 
  5.28  devise, or personal property of any 
  5.29  kind or money tendered to the state for 
  5.30  any purpose pertaining to the 
  5.31  communication activities of the 
  5.32  department.  Any money collected by the 
  5.33  commissioner for the use of 
  5.34  communication systems must be deposited 
  5.35  in the state communication systems 
  5.36  account and is appropriated to the 
  5.37  commissioner for purposes of this 
  5.38  section. 
  5.39  Before hardware or software valued in 
  5.40  excess of $100,000 can be purchased by 
  5.41  the department of human services, there 
  5.42  must be information policy office 
  5.43  approval that all appropriate policies, 
  5.44  standards, and budget review 
  5.45  requirements and recommendations have 
  5.46  been met. 
  5.47  Subd. 3.  Life Skills 
  5.48  Self-Sufficiency    
  5.49  General
  5.50      66,419,000   125,419,000
  5.51  Local Government Trust 
  5.52      50,499,000       -0-
  5.53  Health Care Access
  5.54          26,000        26,000
  5.55  Money appropriated for local planning 
  5.56  grants as part of developmental 
  5.57  disabilities pilots in fiscal year 1996 
  5.58  does not cancel but is available for 
  5.59  this purpose in fiscal year 1997.  
  5.60  For the purpose of transferring certain 
  6.1   persons from the semi-independent 
  6.2   living services (SILS) program to the 
  6.3   home and community-based waivered 
  6.4   services program for persons with 
  6.5   mental retardation or related 
  6.6   conditions, the amount of funds 
  6.7   transferred between the SILS account or 
  6.8   the state community social services 
  6.9   account and the state medical 
  6.10  assistance account shall be based on 
  6.11  each county's participation in 
  6.12  transferring persons to the waivered 
  6.13  services program.  No person for whom 
  6.14  these funds are transferred shall be 
  6.15  required to obtain a new living 
  6.16  arrangement, notwithstanding Minnesota 
  6.17  Statutes, section 252.28, subdivision 
  6.18  3, paragraph (4), and Minnesota Rules, 
  6.19  parts 9525.1800, subpart 26a, and 
  6.20  9525.1869, subpart 6.  When supported 
  6.21  living services are provided to persons 
  6.22  for whom these funds are transferred, 
  6.23  the commissioner may substitute the 
  6.24  licensing standards of Minnesota Rules, 
  6.25  parts 9525.0500 to 9525.0660, for parts 
  6.26  9525.2000 to 9525.2140, if the services 
  6.27  remain nonresidential as defined in 
  6.28  Minnesota Statutes, section 245A.02, 
  6.29  subdivision 10.  For the purpose of 
  6.30  Minnesota Statutes, chapter 256G, when 
  6.31  a service is provided under these 
  6.32  substituted licensing standards, the 
  6.33  status of residence of the recipient of 
  6.34  that service shall continue to be 
  6.35  considered excluded time.  
  6.36  Contingent upon continuing federal 
  6.37  approval of expanding eligibility for 
  6.38  home and community-based services for 
  6.39  persons with mental retardation or 
  6.40  related conditions, the commissioner 
  6.41  shall reduce the state SILS payments to 
  6.42  each county by the total medical 
  6.43  assistance expenditures for 
  6.44  nonresidential services attributable to 
  6.45  former SILS recipients transferred by 
  6.46  the county to the home and 
  6.47  community-based services program for 
  6.48  persons with mental retardation or 
  6.49  related conditions.  Of the reduced 
  6.50  SILS payments determined above, the 
  6.51  commissioner shall transfer to the 
  6.52  state medical assistance account an 
  6.53  amount equal to the nonfederal share of 
  6.54  the nonresidential services under the 
  6.55  home and community-based services for 
  6.56  persons with mental retardation or 
  6.57  related conditions.  Of the remaining 
  6.58  reduced SILS payments, 80 percent shall 
  6.59  be returned to the SILS grant program 
  6.60  to provide additional SILS services and 
  6.61  20 percent shall be transferred to the 
  6.62  general fund.  
  6.63  Contingent upon requirements of federal 
  6.64  approval and for purposes of maximizing 
  6.65  federal resources available through the 
  6.66  developmental disabilities allocation 
  6.67  of home and community-based waivered 
  6.68  services for persons with mental 
  6.69  retardation or related conditions under 
  7.1   Minnesota Statutes, section 256B.092, 
  7.2   state funds made available to pay for 
  7.3   home and community-based waivered 
  7.4   services for persons with mental 
  7.5   retardation or related conditions which 
  7.6   are not currently included in the 
  7.7   medical assistance account shall be 
  7.8   transferred to the medical assistance 
  7.9   account to the extent that the total 
  7.10  payments for these services are not 
  7.11  reduced as a result of this rider. 
  7.12  Subd. 4.  Children's 
  7.13  Program 
  7.14  General
  7.15      23,354,000    19,654,000
  7.16  Of this appropriation, $75,000 must be 
  7.17  used as a grant to the metropolitan 
  7.18  housing rehabilitation authority to 
  7.19  support the housing and related 
  7.20  counseling component of the moving to 
  7.21  opportunity program.  
  7.22  Plans for the expenditure of funds for 
  7.23  family services collaboratives must be 
  7.24  approved by the children's cabinet 
  7.25  according to criteria in Minnesota 
  7.26  Statutes, section 121.8355.  Unexpended 
  7.27  funds appropriated for family services 
  7.28  collaboratives in fiscal year 1996 do 
  7.29  not cancel but are available for fiscal 
  7.30  year 1997.  
  7.31  Subd. 5.  Economic 
  7.32  Self-Sufficiency 
  7.33  General
  7.34     336,688,000   315,595,000
  7.35  Health Care Access
  7.36       1,256,000     1,256,000
  7.37  Unexpended money for welfare reform 
  7.38  initiatives for fiscal year 1996 does 
  7.39  not cancel but is available for 
  7.40  expenditure for fiscal year 1997.  
  7.41  Notwithstanding the requirements for 
  7.42  state contracts contained in Minnesota 
  7.43  Statutes, chapter 16B, or Laws 1993, 
  7.44  First Special Session chapter 1, 
  7.45  article 1, section 2, subdivision 5, or 
  7.46  any other law to the contrary, the 
  7.47  commissioner, under terms and 
  7.48  conditions approved by the attorney 
  7.49  general, may accept assignment for 
  7.50  Ramsey county of any existing contract, 
  7.51  license agreement, or similar 
  7.52  transactional document related to the 
  7.53  Ramsey county electronic benefit system.
  7.54  The term of any contract, agreement, or 
  7.55  other document assigned to the state, 
  7.56  including the agreement arising from 
  7.57  the Ramsey county electronic benefit 
  7.58  services pilot project, may not extend 
  8.1   beyond June 30, 1997, and the 
  8.2   commissioner must publish a request for 
  8.3   proposals for succeeding electronic 
  8.4   benefits services in the State Register 
  8.5   before January 1, 1996.  
  8.6   Notwithstanding Minnesota Statutes, 
  8.7   section 256.025, $1,701,000 of the 
  8.8   funds appropriated for fiscal year 1996 
  8.9   under Minnesota Statutes, section 
  8.10  256D.051, subdivision 1a, must be used 
  8.11  to reimburse the county share of work 
  8.12  readiness grants for the first six 
  8.13  months of calendar year 1995.  
  8.14  Notwithstanding Minnesota Statutes, 
  8.15  section 256.025, $800,000 of the funds 
  8.16  appropriated for fiscal year 1996 under 
  8.17  Minnesota Statutes, section 256.06, 
  8.18  subdivision 1a, must be used to 
  8.19  reimburse the county share of project 
  8.20  STRIDE case management and work 
  8.21  readiness employment and training 
  8.22  services for the first six months of 
  8.23  calendar year 1995.  
  8.24  Unexpended money for the Minnesota 
  8.25  family investment plan in fiscal year 
  8.26  1996 does not cancel but is available 
  8.27  for fiscal year 1997.  
  8.28  The commissioner shall set the monthly 
  8.29  standard of assistance for general 
  8.30  assistance and food stamp education and 
  8.31  training units consisting of an adult 
  8.32  recipient who is childless and 
  8.33  unmarried or living apart from his or 
  8.34  her parents or a legal guardian at $203.
  8.35  Federal food stamp employment and 
  8.36  training funds received are 
  8.37  appropriated to the commissioner to 
  8.38  reimburse counties for food stamp 
  8.39  education and training expenditures. 
  8.40  Of the appropriation for Aid to 
  8.41  Families with Dependent Children, the 
  8.42  commissioner shall provide 
  8.43  supplementary grants not to exceed 
  8.44  $200,000 a year for Aid to Families 
  8.45  with Dependent Children.  The 
  8.46  commissioner shall include the 
  8.47  following costs in determining the 
  8.48  amount of the supplementary grants:  
  8.49  major home repairs; repair of major 
  8.50  home appliances; utility recaps; 
  8.51  supplementary dietary needs not covered 
  8.52  by medical assistance; and replacements 
  8.53  of furnishings and essential major 
  8.54  appliances. 
  8.55  Any federal money remaining from 
  8.56  receipt of state legalization impact 
  8.57  assistance grants, after reimbursing 
  8.58  the department of education for actual 
  8.59  expenditures, must be deposited in the 
  8.60  Aid to Families with Dependent Children 
  8.61  account. 
  8.62  The commissioner may accept on behalf 
  8.63  of the state any gift or bequest of 
  9.1   money tendered to the state for the 
  9.2   purpose of financing an evaluation of 
  9.3   the Minnesota family investment plan.  
  9.4   Any money so received must be deposited 
  9.5   in the MFIP evaluation account in the 
  9.6   department and is appropriated to the 
  9.7   commissioner for financing of this 
  9.8   evaluation. 
  9.9   Money received will be applied directly 
  9.10  to project costs and shall not cancel 
  9.11  but shall remain available for 
  9.12  expenditure until expansion is complete.
  9.13  Subd. 6.  Health Care 
  9.14  General
  9.15      1,690,897,000    1,853,757,000 
  9.16  Health Care Access
  9.17        107,328,000      132,242,000
  9.18  Appropriations for the senior's agenda 
  9.19  for independent living program may be 
  9.20  transferred among objects of 
  9.21  expenditure as the commissioner of 
  9.22  human services determines necessary to 
  9.23  facilitate the delivery of the program. 
  9.24  At county option prepaid medical 
  9.25  assistance program funds may be 
  9.26  disbursed to them using either a 
  9.27  reimbursement or a block grant 
  9.28  mechanism.  
  9.29  Money appropriated for preadmission 
  9.30  screening and the alternative care 
  9.31  program for fiscal year 1997 may be 
  9.32  used for these purposes in fiscal year 
  9.33  1996. 
  9.34  In the event that a large 
  9.35  community-based facility licensed under 
  9.36  Minnesota Rules, parts 9525.0215 to 
  9.37  9525.0355, for more than 16 beds, but 
  9.38  not certified as an intermediate care 
  9.39  facility for persons with mental 
  9.40  retardation or related conditions, 
  9.41  closes and alternative services for the 
  9.42  residents are necessary, the 
  9.43  commissioner may transfer on a 
  9.44  quarterly basis to the state medical 
  9.45  assistance account from each affected 
  9.46  county's community social service 
  9.47  allocation an amount equal to the state 
  9.48  share of medical assistance 
  9.49  reimbursement for such residential and 
  9.50  day habilitation services funded by the 
  9.51  medical assistance program and provided 
  9.52  to clients for whom the county is 
  9.53  financially responsible. 
  9.54  Any money allocated to the alternative 
  9.55  care program that is not spent for the 
  9.56  purposes indicated does not cancel but 
  9.57  shall be transferred to the medical 
  9.58  assistance account. 
  9.59  Up to $40,000 of the appropriation for 
 10.1   preadmission screening and alternative 
 10.2   care for fiscal year 1995 may be 
 10.3   transferred to the health care 
 10.4   administration account to pay the 
 10.5   state's share of county claims for 
 10.6   conducting nursing home assessments for 
 10.7   persons with mental illness or mental 
 10.8   retardation as required by Public Law 
 10.9   Number 100-203. 
 10.10  For the fiscal year ending June 30, 
 10.11  1995, a newly constructed or newly 
 10.12  established intermediate care facility 
 10.13  for the mentally retarded that is 
 10.14  developed and financed during that 
 10.15  period shall not be subject to the 
 10.16  equity requirements in Minnesota 
 10.17  Statutes, section 256B.501, subdivision 
 10.18  11, paragraph (d), or in Minnesota 
 10.19  Rules, part 9553.0060, subpart 3, item 
 10.20  F, provided that the provider's 
 10.21  interest rate does not exceed the 
 10.22  interest rate available through state 
 10.23  agency tax-exempt financing. 
 10.24  For the fiscal year ending June 30, 
 10.25  1995, if a facility which is in 
 10.26  receivership under Minnesota Statutes, 
 10.27  section 245A.12 or 245A.13, is sold to 
 10.28  an unrelated organization:  (a) 
 10.29  notwithstanding Minnesota Statutes, 
 10.30  section 256B.501, subdivision 11, the 
 10.31  facility shall be considered a new 
 10.32  facility for rate setting purposes; and 
 10.33  (b) the facility's historical basis for 
 10.34  the physical plant, land, and land 
 10.35  improvements for each facility must not 
 10.36  exceed the prior owner's aggregate 
 10.37  historical basis for these same assets 
 10.38  for each facility.  The allocation of 
 10.39  the purchase price between land, land 
 10.40  improvements, and physical plant shall 
 10.41  be based on the real estate appraisal 
 10.42  using the depreciated replacement cost 
 10.43  method. 
 10.44  Upon federal approval of the 
 10.45  MinnesotaCare health care reform waiver 
 10.46  proposal, the commissioner may accept 
 10.47  federal matching funds for the affected 
 10.48  MinnesotaCare grants and related 
 10.49  administrative costs.  
 10.50  Subd. 7.  Community Mental Health
 10.51  and State-Operated Services 
 10.52  General 
 10.53      254,339,000    259,491,000 
 10.54  Of this appropriation, $162,000 in 
 10.55  fiscal year 1996 and $37,000 in fiscal 
 10.56  year 1997 is for grants to counties for 
 10.57  discharge planning related to persons 
 10.58  with mental retardation or related 
 10.59  conditions being relocated from 
 10.60  Faribault regional center to community 
 10.61  services.  
 10.62  If the resident population at the 
 10.63  regional treatment centers is projected 
 11.1   to be higher than the estimates upon 
 11.2   which the medical assistance forecast 
 11.3   and budget recommendations for the 
 11.4   1996-1997 biennium were based, the 
 11.5   amount of the medical assistance 
 11.6   appropriation that is attributable to 
 11.7   the cost of services that would have 
 11.8   been provided as an alternative to 
 11.9   regional treatment center services, 
 11.10  including resources for community 
 11.11  placements and waivered services for 
 11.12  persons with mental retardation and 
 11.13  related conditions, is transferred to 
 11.14  the residential facilities 
 11.15  appropriation. 
 11.16  The commissioner may determine the need 
 11.17  for conversion of a state-operated home 
 11.18  and community-based service program to 
 11.19  a state-operated intermediate care 
 11.20  facility for persons with mental 
 11.21  retardation or related conditions if 
 11.22  the conversion will produce a net 
 11.23  savings to the state general fund and 
 11.24  the persons receiving home and 
 11.25  community-based services choose to 
 11.26  receive services in an intermediate 
 11.27  care facility for persons with mental 
 11.28  retardation or related conditions.  
 11.29  After the commissioner has determined 
 11.30  the need to convert the program, the 
 11.31  commissioner of health shall certify 
 11.32  the program as an intermediate care 
 11.33  facility for persons with mental 
 11.34  retardation or related conditions if 
 11.35  the program meets applicable 
 11.36  certification standards.  
 11.37  The commissioner may transfer 
 11.38  unencumbered appropriation balances 
 11.39  between fiscal years for the state 
 11.40  residential facilities repairs and 
 11.41  betterments account and special 
 11.42  equipment.  
 11.43  Wages for project labor may be paid by 
 11.44  the commissioner of human services out 
 11.45  of repairs and betterments money if the 
 11.46  individual is to be engaged in a 
 11.47  construction project or a repair 
 11.48  project of short-term and nonrecurring 
 11.49  nature.  
 11.50  Compensation for project labor shall be 
 11.51  based on the prevailing wage rates, as 
 11.52  defined in Minnesota Statutes, section 
 11.53  177.42, subdivision 6. 
 11.54  Project laborers are excluded from the 
 11.55  provisions of Minnesota Statutes, 
 11.56  sections 43A.22 to 43A.30, and shall 
 11.57  not be eligible for state-paid 
 11.58  insurance and benefits.  
 11.59  When the operations of the regional 
 11.60  treatment center chemical dependency 
 11.61  fund created in Minnesota Statutes, 
 11.62  section 246.18, subdivision 2, are 
 11.63  impeded by projected cash deficiencies 
 11.64  resulting from delays in the receipt of 
 11.65  grants, dedicated income, or other 
 12.1   similar receivables, and when the 
 12.2   deficiencies would be corrected within 
 12.3   the budget period involved, the 
 12.4   commissioner of finance may transfer 
 12.5   general fund cash reserves into this 
 12.6   account, upon the request of the 
 12.7   commissioner of human services, as 
 12.8   necessary to meet cash demands.  The 
 12.9   cash flow transfers must be returned to 
 12.10  the general fund as soon as sufficient 
 12.11  cash balances are available in the 
 12.12  account to which the transfer was 
 12.13  made.  Any interest earned on general 
 12.14  fund cash flow transfers accrues to the 
 12.15  general fund and not the regional 
 12.16  treatment center chemical dependency 
 12.17  fund.  
 12.18  Funds received by the commissioner of 
 12.19  human services from the state lottery 
 12.20  director shall be used for the 
 12.21  compulsive gambling treatment programs 
 12.22  authorized under Minnesota Statutes, 
 12.23  section 245.98, subdivision 2.  
 12.24  Sec. 3.  ELECTRONIC BENEFITS TRANSFER
 12.25  The commissioner, with the advance 
 12.26  approval of the commissioner of 
 12.27  finance, is authorized to issue cash 
 12.28  assistance benefits up to two days 
 12.29  before the first day of each month, 
 12.30  including two days before the start of 
 12.31  each state fiscal year.  Of the money 
 12.32  appropriated for the Aid to Families 
 12.33  with Dependent Children program for 
 12.34  fiscal year 1996, $12,000,000 is 
 12.35  available in fiscal year 1995.  If that 
 12.36  amount is insufficient for the costs 
 12.37  incurred, an additional amount of the 
 12.38  fiscal year 1996 appropriation as 
 12.39  needed may be transferred with the 
 12.40  advance approval of the commissioner of 
 12.41  finance.  
 12.42  Sec. 4.  COMMISSIONER OF HEALTH. 
 12.43  Subdivision 1.  Total 
 12.44  Appropriation                         63,134,000     62,203,000
 12.45                Summary by Fund
 12.46  General              38,522,000    37,922,000
 12.47  State Government 
 12.48  Special Revenue      15,683,000    16,208,000
 12.49  Health Care Access    7,215,000     6,359,000
 12.50  Trunk Highway         1,513,000     1,513,000
 12.51  Metropolitan Landfill 
 12.52  Contingency Action      193,000       193,000
 12.53  Special Revenue           8,000         8,000
 12.54  The appropriation from the metropolitan 
 12.55  landfill contingency action fund is for 
 12.56  monitoring well water supplies and 
 12.57  conducting health assessments in the 
 12.58  metropolitan area.  
 13.1   The appropriation from the trunk 
 13.2   highway fund is for emergency medical 
 13.3   services activities. 
 13.4   Subd. 2.  Health Systems
 13.5   Development                           33,929,000     32,432,000
 13.6                 Summary by Fund
 13.7   General              27,783,000    27,066,000
 13.8   State Government 
 13.9   Special Revenue         429,000       430,000
 13.10  Health Care Access    5,717,000     4,936,000
 13.11  $590,000 is appropriated for the 
 13.12  biennium ending June 30, 1997, for 
 13.13  reengineering the state's vital records 
 13.14  system, including an expansion of the 
 13.15  electronic birth certificate system.  
 13.16  Of this appropriation, $600,000 is for 
 13.17  a women's health initiative.  
 13.18  General fund appropriations for the 
 13.19  women, infants, and children food 
 13.20  supplement program (WIC) are available 
 13.21  for either year of the biennium.  
 13.22  Transfers of appropriations between 
 13.23  fiscal years must be for the purpose of 
 13.24  maximizing federal funds or minimizing 
 13.25  fluctuations in the number of 
 13.26  participants.  
 13.27  The commissioner may sell at market 
 13.28  value all education, training, and 
 13.29  advertising materials relating to 
 13.30  nonsmoking or tobacco use prevention, 
 13.31  nutrition, health promotion, and 
 13.32  education.  Proceeds from the sale are 
 13.33  appropriated to the department of 
 13.34  health for the related program. 
 13.35  Subd. 3.  Health Quality 
 13.36  Assurance                              7,439,000      7,809,000
 13.37                Summary by Fund
 13.38  General               1,295,000     1,295,000
 13.39  State Government 
 13.40  Special Revenue       4,104,000     4,485,000
 13.41  Health Care Access      609,000       598,000
 13.42  Trunk Highway         1,431,000     1,431,000
 13.43  Subd. 4.  Health Protection           16,865,000     16,961,000
 13.44                Summary by Fund
 13.45  General               6,999,000     6,995,000
 13.46  State Government 
 13.47  Special Revenue       9,687,000     9,787,000
 13.48  Metropolitan Landfill
 13.49  Contingency Action      171,000       171,000
 13.50  Special Revenue           8,000         8,000
 14.1   Subd. 5.  Management and 
 14.2   Support Services                       4,901,000      5,001,000
 14.3                 Summary by Fund
 14.4   General               2,445,000     2,566,000
 14.5   State Government 
 14.6   Special Revenue       1,463,000     1,506,000
 14.7   Health Care Access      889,000       825,000
 14.8   Trunk Highway            82,000        82,000
 14.9   Metropolitan Landfill
 14.10  Contingency Action       22,000        22,000
 14.11  Sec. 5.  VETERANS NURSING
 14.12  HOMES BOARD                           18,284,000     19,139,000
 14.13  The veterans homes board shall limit 
 14.14  the total administrative expenditures 
 14.15  for the board and all the homes to no 
 14.16  more than 16 percent of total 
 14.17  expenditures in the fiscal year ending 
 14.18  June 30, 1996, and 16 percent of total 
 14.19  expenditures in fiscal year ending June 
 14.20  30, 1997.  The board may transfer money 
 14.21  between facilities as needed, with the 
 14.22  approval of the commissioner of 
 14.23  finance.  The general fund 
 14.24  appropriation provided in this section 
 14.25  is based upon estimated receipts from 
 14.26  operations in the amount of $15,150 in 
 14.27  1996 and $15,240 in 1997.  
 14.28  These appropriations shall be 
 14.29  transferred to the veterans homes board 
 14.30  account in the special revenue fund for 
 14.31  expenditure along with operating 
 14.32  receipts of the department.  The 
 14.33  department shall submit a plan to the 
 14.34  department of finance at the beginning 
 14.35  of each year indicating the intended 
 14.36  use of receipts for the year, and 
 14.37  submit a year-end report indicating 
 14.38  actual receipt usage. 
 14.39  Sec. 6.  HEALTH-RELATED BOARDS
 14.40  Subdivision 1.  Total     
 14.41  Appropriation                          8,358,000      8,313,000 
 14.42  The appropriations in this section are 
 14.43  from the state government special 
 14.44  revenue fund. 
 14.45  The commissioner of finance shall not 
 14.46  permit the allotment, encumbrance, or 
 14.47  expenditure of money appropriated in 
 14.48  this section in excess of the 
 14.49  anticipated biennial revenues or 
 14.50  accumulated surplus revenues from fees 
 14.51  collected by the boards.  Neither this 
 14.52  provision, nor Minnesota Statutes, 
 14.53  section 214.06, applies to transfers 
 14.54  from the general contingent account, if 
 14.55  the amount transferred does not exceed 
 14.56  the amount of surplus revenue 
 14.57  accumulated by the transferee during 
 14.58  the previous five years.  A newly 
 15.1   created board must establish a fee 
 15.2   structure which fully recovers its 
 15.3   expenditures during a five-year period. 
 15.4   Subd. 2.  Board of Chiropractic 
 15.5   Examiners                                309,000        313,000
 15.6   Subd. 3.  Board of Dentistry             698,000        708,000
 15.7   Subd. 4.  Board of Marriage and 
 15.8   Family Therapy                            95,000         96,000
 15.9   Subd. 5.  Board of Medical  
 15.10  Practice                               3,204,000      3,188,000
 15.11  Subd. 6.  Board of Nursing             1,710,000      1,714,000
 15.12  Subd. 7.  Board of Nursing 
 15.13  Home Administrators                      182,000        186,000
 15.14  Subd. 8.  Board of Optometry              78,000         79,000
 15.15  Subd. 9.  Board of Pharmacy              900,000        894,000
 15.16  Of this appropriation from the state 
 15.17  government special revenue fund, 
 15.18  $300,000 the first year and $200,000 
 15.19  the second year is to provide 
 15.20  administrative services to all 
 15.21  health-related licensing boards.  
 15.22  Subd. 10.  Board of Podiatry              31,000         32,000
 15.23  Subd. 11.  Board of Psychology           393,000        396,000
 15.24  Subd. 12.  Board of Social Work          553,000        492,000
 15.25  Subd. 13.  Board of Veterinary 
 15.26  Medicine                                 142,000        151,000
 15.27  Subd. 14.  Board of Dietetics
 15.28  and Nutrition                             63,000         64,000
 15.29  Sec. 7.  COUNCIL ON DISABILITY           575,000        581,000
 15.30  Sec. 8.  OMBUDSMAN FOR MENTAL 
 15.31  HEALTH AND MENTAL RETARDATION          1,132,000      1,097,000
 15.32  Sec. 9.  OMBUDSPERSON FOR
 15.33  FAMILIES                                 133,000        137,000
 15.34  Sec. 10.  CARRYOVER LIMITATION 
 15.35  None of the appropriations in this act 
 15.36  which are allowed to be carried forward 
 15.37  from fiscal year 1996 to fiscal year 
 15.38  1997 shall become part of the base 
 15.39  level funding for the 1998-1999 
 15.40  biennial budget. 
 15.41  Sec. 11.  TRANSFERS 
 15.42  Subdivision 1.  Transfers of
 15.43  Unencumbered Entitled Grant and Aid
 15.44  Appropriations 
 15.45  The commissioner of human services, 
 15.46  with the approval of the commissioner 
 15.47  of finance, and after notification of 
 15.48  the chair of the senate health care and 
 15.49  family services finance division and 
 16.1   the chair of the house of 
 16.2   representatives health and human 
 16.3   services finance division, may transfer 
 16.4   unencumbered appropriation balances 
 16.5   within fiscal years among the Aid to 
 16.6   Families with Dependent Children, Aid 
 16.7   to Families with Dependent Children 
 16.8   child care, Minnesota family 
 16.9   investment, general assistance, general 
 16.10  assistance medical care, medical 
 16.11  assistance, Minnesota supplemental aid, 
 16.12  group residential housing and work 
 16.13  readiness programs, and the entitlement 
 16.14  portion of the chemical dependency 
 16.15  consolidated treatment fund, and 
 16.16  between fiscal years of the biennium. 
 16.17  Effective the day following final 
 16.18  enactment, the commissioner may 
 16.19  transfer unencumbered appropriation 
 16.20  balances for fiscal year 1995 among the 
 16.21  Aid to Families with Dependent 
 16.22  Children, Aid to Families with 
 16.23  Dependent Children child care, 
 16.24  Minnesota family investment, general 
 16.25  assistance, general assistance medical 
 16.26  care, medical assistance, Minnesota 
 16.27  supplemental aid, and work readiness 
 16.28  programs, and the entitlement portion 
 16.29  of the chemical dependency consolidated 
 16.30  treatment fund, with the approval of 
 16.31  the commissioner of finance after 
 16.32  notification of the chair of the senate 
 16.33  health care and family services finance 
 16.34  division and the chair of the house of 
 16.35  representatives health and human 
 16.36  services finance division. 
 16.37  Subd. 2.  Transfers of Unencumbered
 16.38  Appropriations for Nonentitled Grants
 16.39  and Aids
 16.40  This subdivision does not apply to the 
 16.41  programs specified in subdivision 1. 
 16.42  The commissioners of human services and 
 16.43  health may transfer money between 
 16.44  programs for the object of expenditure 
 16.45  "grants and aid" or may transfer 
 16.46  "grants and aids" money between fiscal 
 16.47  years of a biennium with the written 
 16.48  approval of the commissioner of 
 16.49  finance, and after notification of the 
 16.50  chair of the senate health care and 
 16.51  family services finance division and 
 16.52  the chair of the house of 
 16.53  representatives health and human 
 16.54  services finance division. 
 16.55  Transfers from the first to the second 
 16.56  fiscal year of the biennium shall not 
 16.57  be used to increase base spending for 
 16.58  the following biennium. 
 16.59  Subd. 3.  Approval Required 
 16.60  The commissioners of human services and 
 16.61  health may transfer money between 
 16.62  programs for the object of expenditure 
 16.63  "grants and aid" or may transfer 
 16.64  "grants and aids" money between fiscal 
 17.1   years of a biennium with the written 
 17.2   approval of the commissioner of 
 17.3   finance, and after notification of the 
 17.4   chair of the senate health care and 
 17.5   family services finance division and 
 17.6   the chair of the house of 
 17.7   representatives health and human 
 17.8   services finance division. 
 17.9   Subd. 4.  Medical Assistance and
 17.10  General Assistance Medical Care
 17.11  The commissioner of finance shall 
 17.12  transfer $13,732,000 in fiscal year 
 17.13  1996 and $17,528,000 in fiscal year 
 17.14  1997 to the general fund from the 
 17.15  health care access fund to pay for 
 17.16  medical assistance and general 
 17.17  assistance medical care costs. 
 17.18  Sec. 12.  PROVISIONS 
 17.19  The allowance for food may be adjusted 
 17.20  annually to reflect changes in the 
 17.21  producer price index, as prepared by 
 17.22  the United States Bureau of Labor 
 17.23  Statistics, with the approval of the 
 17.24  commissioner of finance.  Adjustments 
 17.25  for fiscal year 1996 and fiscal year 
 17.26  1997 must be based on the June 1995 and 
 17.27  June 1996 producer price index 
 17.28  respectively, but the adjustment must 
 17.29  be prorated if the wholesale food price 
 17.30  index adjustment would require money in 
 17.31  excess of this appropriation. 
 17.32  Sec. 13.  SUNSET OF UNCODIFIED LANGUAGE 
 17.33  All uncodified language contained in 
 17.34  this article expires on June 30, 1997, 
 17.35  unless a different expiration is 
 17.36  explicit.  All uncodified language 
 17.37  contained in Laws 1992, chapter 513, 
 17.38  article 5, expires on June 30, 1993, 
 17.39  unless a different expiration is 
 17.40  explicit. 
 17.41     Sec. 14.  [EFFECTIVE DATE.] 
 17.42     Section 3 is effective the day following final enactment. 
 17.43                             ARTICLE 2
 17.44                        ASSISTANCE PROGRAMS
 17.45     Section 1.  Minnesota Statutes 1994, section 16B.08, 
 17.46  subdivision 5, is amended to read: 
 17.47     Subd. 5.  [FEDERAL ~~GENERAL SERVICES ADMINISTRATION~~ AGENCY 
 17.48  PRICE SCHEDULES.] Notwithstanding anything in this chapter to 
 17.49  the contrary, the commissioner may, instead of soliciting bids, 
 17.50  contract for purchases with suppliers who have published 
 17.51  schedules of prices effective for sales to ~~the General Services~~ 
 17.52  ~~Administration~~ any federal agency of the United States.  These 
 18.1   contracts may be entered into, regardless of the amount of the 
 18.2   purchase price, if the commissioner considers them advantageous 
 18.3   and if the purchase price of all the commodities purchased under 
 18.4   the contract do not exceed the price specified by the schedule.  
 18.5      Sec. 2.  Minnesota Statutes 1994, section 171.07, is 
 18.6   amended by adding a subdivision to read: 
 18.7      Subd. 10.  [AGREEMENTS WITH OTHER AGENCIES.] The 
 18.8   commissioner of public safety is authorized to enter into 
 18.9   agreements with other agencies to issue cards to clients of 
 18.10  those agencies for use in their programs.  The cards may be 
 18.11  issued to persons who do not qualify for a Minnesota driver's 
 18.12  license or do not provide evidence of name and identity as 
 18.13  required by rule for a Minnesota identification card.  Persons 
 18.14  issued cards under this subdivision will meet the identification 
 18.15  verification requirements of the contracting agency. 
 18.16     The interagency agreement may include provisions for the 
 18.17  payment of the county fee provided in section 171.06, 
 18.18  subdivision 4, and the actual cost to manufacture the card. 
 18.19     Cards issued under this subdivision are not Minnesota 
 18.20  identification cards for the purposes defined in sections 
 18.21  48.512, 201.061, 201.161, 332.50, and 340A.503. 
 18.22     Sec. 3.  Minnesota Statutes 1994, section 256.014, 
 18.23  subdivision 1, is amended to read: 
 18.24     Subdivision 1.  [ESTABLISHMENT OF SYSTEMS.] The 
 18.25  commissioner of human services shall establish and enhance 
 18.26  computer systems necessary for the efficient operation of the 
 18.27  programs the commissioner supervises, including: 
 18.28     (1) management and administration of the food stamp and 
 18.29  income maintenance programs, including the electronic 
 18.30  distribution of benefits; 
 18.31     (2) management and administration of the child support 
 18.32  enforcement program; and 
 18.33     (3) administration of medical assistance and general 
 18.34  assistance medical care. 
 18.35     The commissioner shall distribute the nonfederal share of 
 18.36  the costs of operating and maintaining the systems to the 
 19.1   commissioner and to the counties participating in the system in 
 19.2   a manner that reflects actual system usage, except that the 
 19.3   nonfederal share of the costs of the MAXIS computer system and 
 19.4   child support enforcement systems shall be borne entirely by the 
 19.5   commissioner.  Development costs must not be assessed against 
 19.6   county agencies. 
 19.7      Sec. 4.  Minnesota Statutes 1994, section 256.025, 
 19.8   subdivision 1, is amended to read: 
 19.9      Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
 19.10  section, the following terms have the meanings given them.  
 19.11     (b) "Base amount" means the calendar year 1990 county share 
 19.12  of county agency expenditures for all of the programs specified 
 19.13  in subdivision 2, except for the programs in subdivision 2, 
 19.14  clauses (4), (7), and (13).  The 1990 base amount for 
 19.15  subdivision 2, clause (4), shall be reduced by one-seventh for 
 19.16  each county, and the 1990 base amount for subdivision 2, clause 
 19.17  (7), shall be reduced by seven-tenths for each county, and those 
 19.18  amounts in total shall be the 1990 base amount for group 
 19.19  residential housing in subdivision 2, clause (13).  
 19.20     (c) "County agency expenditure" means the total expenditure 
 19.21  or cost incurred by the county of financial responsibility for 
 19.22  the benefits and services for each of the programs specified in 
 19.23  subdivision 2 up to the amount required by statute or rule, and 
 19.24  excluding county optional costs which are not reimbursable with 
 19.25  state funds.  The term includes the federal, state, and county 
 19.26  share of costs for programs in which there is federal financial 
 19.27  participation.  For programs in which there is no federal 
 19.28  financial participation, the term includes the state and county 
 19.29  share of costs.  The term excludes county administrative costs, 
 19.30  unless otherwise specified.  
 19.31     (d) "Nonfederal share" means the sum of state and county 
 19.32  shares of costs of the programs specified in subdivision 2. 
 19.33     (e) The "county share of county agency expenditures growth 
 19.34  amount" is the amount by which the county share of county agency 
 19.35  expenditures in calendar years 1991 to 2000 has increased over 
 19.36  the base amount. 
 20.1      Sec. 5.  Minnesota Statutes 1994, section 256.025, 
 20.2   subdivision 2, is amended to read: 
 20.3      Subd. 2.  [COVERED PROGRAMS AND SERVICES.] The procedures 
 20.4   in this section govern payment of county agency expenditures for 
 20.5   benefits and services distributed under the following programs: 
 20.6      (1) aid to families with dependent children under sections 
 20.7   256.82, subdivision 1, and 256.935, subdivision 1; 
 20.8      (2) medical assistance under sections 256B.041, subdivision 
 20.9   5, and 256B.19, subdivision 1; 
 20.10     (3) general assistance medical care under section 256D.03, 
 20.11  subdivision 6; 
 20.12     (4) general assistance under section 256D.03, subdivision 
 20.13  2; 
 20.14     (5) work readiness under section 256D.03, subdivision 2, 
 20.15  for assistance cost incurred prior to July 1, 1995; 
 20.16     (6) emergency assistance under section 256.871, subdivision 
 20.17  6; 
 20.18     (7) Minnesota supplemental aid under section 256D.36, 
 20.19  subdivision 1; 
 20.20     (8) preadmission screening and alternative care grants; 
 20.21     (9) work readiness services under section 256D.051 for 
 20.22  employment and training services costs incurred prior to July 1, 
 20.23  1995; 
 20.24     (10) case management services under section 256.736, 
 20.25  subdivision 13, for case management service costs incurred prior 
 20.26  to July 1, 1995; 
 20.27     (11) general assistance claims processing, medical 
 20.28  transportation and related costs; 
 20.29     (12) medical assistance, medical transportation and related 
 20.30  costs; and 
 20.31     (13) group residential housing under section 256I.05, 
 20.32  subdivision 8, transferred from programs in clauses (4) and (7). 
 20.33     Sec. 6.  Minnesota Statutes 1994, section 256.026, is 
 20.34  amended to read: 
 20.35     256.026 [ANNUAL APPROPRIATION.] 
 20.36     (a) There shall be appropriated from the general fund to 
 21.1   the commissioner of human services in fiscal year ~~1994~~ 1996 the 
 21.2   amount of $136,286,768 and in fiscal year 1997 and each fiscal 
 21.3   year thereafter the amount of ~~$142,339,359, which is the sum of~~ 
 21.4   ~~the amount of human services aid determined for all counties in~~ 
 21.5   ~~Minnesota for calendar year 1992 under Minnesota Statutes 1992,~~ 
 21.6   ~~section 273.1398, subdivision 5a, before any adjustments for~~ 
 21.7   ~~calendar year 1991~~ $133,781,768.  
 21.8      (b) In addition to the amount in paragraph (a), there shall 
 21.9   also be annually appropriated from the general fund to the 
 21.10  commissioner of human services in fiscal years 1996, 1997, 1998, 
 21.11  1999, 2000, and 2001 the amount of ~~$5,930,807~~ $5,574,241. 
 21.12     (c) The amounts appropriated under paragraphs (a) and (b) 
 21.13  shall be used with other appropriations to make payments 
 21.14  required under section 256.025 for fiscal year ~~1994~~ 1996 and 
 21.15  thereafter. 
 21.16     Sec. 7.  Minnesota Statutes 1994, section 256.73, 
 21.17  subdivision 3a, is amended to read: 
 21.18     Subd. 3a.  [PERSONS INELIGIBLE.] No assistance shall be 
 21.19  given under sections 256.72 to 256.87:  
 21.20     (1) on behalf of any person who is receiving supplemental 
 21.21  security income under title XVI of the Social Security Act 
 21.22  unless permitted by federal regulations; 
 21.23     (2) for any month in which the assistance unit's gross 
 21.24  income, without application of deductions or disregards, exceeds 
 21.25  185 percent of the standard of need for a family of the same 
 21.26  size and composition; except that the earnings of a dependent 
 21.27  child who is a full-time student may be disregarded for six 
 21.28  months per calendar year and the earnings of a dependent child 
 21.29  that are derived from the jobs training and partnership act 
 21.30  (JTPA) may be disregarded for six months per calendar year.  
 21.31  These two earnings disregards cannot be combined to allow more 
 21.32  than a total of six months per calendar year when the earned 
 21.33  income of a full-time student is derived from participation in a 
 21.34  program under the JTPA.  If a stepparent's income is taken into 
 21.35  account in determining need, the disregards specified in section 
 21.36  256.74, subdivision 1a, shall be applied to determine income 
 22.1   available to the assistance unit before calculating the unit's 
 22.2   gross income for purposes of this paragraph~~;~~.  If a stepparent's 
 22.3   needs are included in the assistance unit as specified in 
 22.4   section 256.74, subdivision 1, the disregards specified in 
 22.5   section 256.74, subdivision 1, shall be applied. 
 22.6      (3) to any assistance unit for any month in which any 
 22.7   caretaker relative with whom the child is living is, on the last 
 22.8   day of that month, participating in a strike; 
 22.9      (4) on behalf of any other individual in the assistance 
 22.10  unit, nor shall the individual's needs be taken into account for 
 22.11  any month in which, on the last day of the month, the individual 
 22.12  is participating in a strike; 
 22.13     (5) on behalf of any individual who is the principal earner 
 22.14  in an assistance unit whose eligibility is based on the 
 22.15  unemployment of a parent when the principal earner, without good 
 22.16  cause, fails or refuses to accept employment, or to register 
 22.17  with a public employment office, unless the principal earner is 
 22.18  exempt from these work requirements. 
 22.19     Sec. 8.  Minnesota Statutes 1994, section 256.736, 
 22.20  subdivision 3, is amended to read: 
 22.21     Subd. 3.  [REGISTRATION.] (a) To the extent permissible 
 22.22  under federal law, every caretaker or child is required to 
 22.23  register for employment and training services, as a condition of 
 22.24  receiving AFDC, unless the caretaker or child is: 
 22.25     (1) a child who is under age 16, a child age 16 or 17 who 
 22.26  is attending elementary or secondary school or a secondary level 
 22.27  vocational or technical school full time; 
 22.28     (2) ill, incapacitated, or age 60 or older; 
 22.29     (3) a person for whom participation in an employment and 
 22.30  training service would require a round trip commuting time by 
 22.31  available transportation of more than two hours; 
 22.32     (4) a person whose presence in the home is required because 
 22.33  of illness or incapacity of another member of the household; 
 22.34     (5) a caretaker or other caretaker relative of a child 
 22.35  under the age of three who personally provides full-time care 
 22.36  for the child.  In AFDC-UP cases, only one parent or other 
 23.1   relative may qualify for this exemption; 
 23.2      (6) a caretaker or other caretaker relative personally 
 23.3   providing care for a child under six years of age, except that 
 23.4   when child care is arranged for or provided, the caretaker or 
 23.5   caretaker relative may be required to register and participate 
 23.6   in employment and training services up to a maximum of 20 hours 
 23.7   per week.  In AFDC-UP cases, only one parent or other relative 
 23.8   may qualify for this exemption; 
 23.9      (7) a pregnant woman, if it has been medically verified 
 23.10  that the child is expected to be born within the next six 
 23.11  months; ~~or~~ 
 23.12     (8) employed at least 30 hours per week; or 
 23.13     (9) an individual added to an assistance unit as an 
 23.14  essential person under section 256.74, subdivision 1.  An 
 23.15  essential person who meets the definition of a "caretaker" as 
 23.16  defined in subdivision 1a, paragraph (c), shall be subject to 
 23.17  all the provisions of this section. 
 23.18     (b) To the extent permissible by federal law, applicants 
 23.19  for benefits under the AFDC program are registered for 
 23.20  employment and training services by signing the application 
 23.21  form.  Applicants must be informed that they are registering for 
 23.22  employment and training services by signing the form.  Persons 
 23.23  receiving benefits on or after July 1, 1987, shall register for 
 23.24  employment and training services to the extent permissible by 
 23.25  federal law.  The caretaker has a right to a fair hearing under 
 23.26  section 256.045 with respect to the appropriateness of the 
 23.27  registration. 
 23.28     Sec. 9.  Minnesota Statutes 1994, section 256.736, 
 23.29  subdivision 13, is amended to read: 
 23.30     Subd. 13.  [STATE SHARE.] The state must pay 75 percent of 
 23.31  the nonfederal share of costs incurred by counties under 
 23.32  subdivision 11. 
 23.33     Beginning July 1, 1991, the state will reimburse counties, 
 23.34  up to the limit of state appropriations, according to the 
 23.35  payment schedule in section 256.025, for the county share of 
 23.36  county agency expenditures made under subdivision 11 from 
 24.1   January 1, 1991, ~~on~~ to June 30, 1995.  Payment to counties under 
 24.2   this subdivision is subject to the provisions of section 256.017.
 24.3      Beginning July 1, 1995, the state must pay 100 percent of 
 24.4   the nonfederal share incurred by counties under subdivision 11, 
 24.5   up to the limit of state appropriations.  If the state 
 24.6   appropriation is not sufficient to fund the cost of case 
 24.7   management services for all caretakers identified in subdivision 
 24.8   2a, the commissioner must define a statewide subgroup of 
 24.9   caretakers which includes all caretakers in subdivision 2a, 
 24.10  clause (1), and as many caretakers as possible from subdivision 
 24.11  2a, clauses (2) and (3). 
 24.12     Sec. 10.  Minnesota Statutes 1994, section 256.74, 
 24.13  subdivision 1, is amended to read: 
 24.14     Subdivision 1.  [AMOUNT.] The amount of assistance which 
 24.15  shall be granted to or on behalf of any dependent child 
 24.16  and ~~mother~~ parent or other needy eligible relative caring for 
 24.17  the dependent child shall be determined by the county agency in 
 24.18  accordance with rules promulgated by the commissioner and shall 
 24.19  be sufficient, when added to all other income and support 
 24.20  available to the child, to provide the child with a reasonable 
 24.21  subsistence compatible with decency and health.  To the extent 
 24.22  permissible under federal law, an eligible relative caretaker or 
 24.23  parent shall have the option to include in the assistance unit 
 24.24  the needs, income, and resources of the following needy 
 24.25  individuals who are not otherwise eligible for AFDC because they 
 24.26  do not qualify as a caretaker or as a dependent child: 
 24.27     (1) a parent or relative caretaker's spouse and 
 24.28  stepchildren; or 
 24.29     (2) blood or legally adopted relatives who are under the 
 24.30  age of 18 or under the age of 19 years who are regularly 
 24.31  attending as a full-time student, and are expected to complete 
 24.32  before or during the month of their 19th birthday, a high school 
 24.33  or secondary level course of vocational or technical training 
 24.34  designed to prepare students for gainful employment.  The amount 
 24.35  shall be based on the method of budgeting required in Public Law 
 24.36  Number 97-35, section 2315, United States Code, title 42, 
 25.1   section 602, as amended and federal regulations at Code of 
 25.2   Federal Regulations, title 45, section 233.  Nonrecurring lump 
 25.3   sum income received by an AFDC family must be budgeted in the 
 25.4   normal retrospective cycle.  When the family's income, after 
 25.5   application of the applicable disregards, exceeds the need 
 25.6   standard for the family because of receipt of earned or unearned 
 25.7   lump sum income, the family will be ineligible for the full 
 25.8   number of months derived by dividing the sum of the lump sum 
 25.9   income and other income by the monthly need standard for a 
 25.10  family of that size.  Any income remaining from this calculation 
 25.11  is income in the first month following the period of 
 25.12  ineligibility.  The first month of ineligibility is the payment 
 25.13  month that corresponds with the budget month in which the lump 
 25.14  sum income was received.  For purposes of applying the lump sum 
 25.15  provision, family includes those persons defined in the Code of 
 25.16  Federal Regulations, title 45, section 233.20(a)(3)(ii)(F).  A 
 25.17  period of ineligibility must be shortened when the standard of 
 25.18  need increases and the amount the family would have received 
 25.19  also changes, an amount is documented as stolen, an amount is 
 25.20  unavailable because a member of the family left the household 
 25.21  with that amount and has not returned, an amount is paid by the 
 25.22  family during the period of ineligibility to cover a cost that 
 25.23  would otherwise qualify for emergency assistance, or the family 
 25.24  incurs and pays for medical expenses which would have been 
 25.25  covered by medical assistance if eligibility existed.  In making 
 25.26  its determination the county agency shall disregard the 
 25.27  following from family income:  
 25.28     (1) all the earned income of each dependent child applying 
 25.29  for AFDC if the child is a full-time student and all of the 
 25.30  earned income of each dependent child receiving AFDC who is a 
 25.31  full-time student or is a part-time student who is not a 
 25.32  full-time employee.  A student is one who is attending a school, 
 25.33  college, or university, or a course of vocational or technical 
 25.34  training designed to fit students for gainful employment and 
 25.35  includes a participant in the Job Corps program under the Job 
 25.36  Training Partnership Act (JTPA).  The county agency shall also 
 26.1   disregard all income of each dependent child applying for or 
 26.2   receiving AFDC when the income is derived from a program carried 
 26.3   out under JTPA, except that disregard of earned income may not 
 26.4   exceed six months per calendar year; 
 26.5      (2) all educational ~~grants and loans~~ assistance, except 
 26.6   that graduate student teaching assistantships, fellowships, and 
 26.7   other similar paid work shall be counted as earned income and, 
 26.8   after allowing deductions for any unmet and necessary 
 26.9   educational expenses, scholarships or grants awarded to graduate 
 26.10  students that do not require teaching or research shall be 
 26.11  counted as unearned income; 
 26.12     (3) the first $90 of each individual's earned income.  For 
 26.13  self-employed persons, the expenses directly related to 
 26.14  producing goods and services and without which the goods and 
 26.15  services could not be produced shall be disregarded pursuant to 
 26.16  rules promulgated by the commissioner; 
 26.17     (4) thirty dollars plus one-third of each individual's 
 26.18  earned income for individuals found otherwise eligible to 
 26.19  receive aid or who have received aid in one of the four months 
 26.20  before the month of application.  With respect to any month, the 
 26.21  county welfare agency shall not disregard under this clause any 
 26.22  earned income of any person who has:  (a) reduced earned income 
 26.23  without good cause within 30 days preceding any month in which 
 26.24  an assistance payment is made; (b) refused without good cause to 
 26.25  accept an offer of suitable employment; (c) left employment or 
 26.26  reduced earnings without good cause and applied for assistance 
 26.27  so as to be able later to return to employment with the 
 26.28  advantage of the income disregard; or (d) failed without good 
 26.29  cause to make a timely report of earned income in accordance 
 26.30  with rules promulgated by the commissioner of human services.  
 26.31  Persons who are already employed and who apply for assistance 
 26.32  shall have their needs computed with full account taken of their 
 26.33  earned and other income.  If earned and other income of the 
 26.34  family is less than need, as determined on the basis of public 
 26.35  assistance standards, the county agency shall determine the 
 26.36  amount of the grant by applying the disregard of income 
 27.1   provisions.  The county agency shall not disregard earned income 
 27.2   for persons in a family if the total monthly earned and other 
 27.3   income exceeds their needs, unless for any one of the four 
 27.4   preceding months their needs were met in whole or in part by a 
 27.5   grant payment.  The disregard of $30 and one-third of earned 
 27.6   income in this clause shall be applied to the individual's 
 27.7   income for a period not to exceed four consecutive months.  Any 
 27.8   month in which the individual loses this disregard because of 
 27.9   the provisions of subclauses (a) to (d) shall be considered as 
 27.10  one of the four months.  An additional $30 work incentive must 
 27.11  be available for an eight-month period beginning in the month 
 27.12  following the last month of the combined $30 and one-third work 
 27.13  incentive.  This period must be in effect whether or not the 
 27.14  person has earned income or is eligible for AFDC.  To again 
 27.15  qualify for the earned income disregards under this clause, the 
 27.16  individual must not be a recipient of aid for a period of 12 
 27.17  consecutive months.  When an assistance unit becomes ineligible 
 27.18  for aid due to the fact that these disregards are no longer 
 27.19  applied to income, the assistance unit shall be eligible for 
 27.20  medical assistance benefits for a 12-month period beginning with 
 27.21  the first month of AFDC ineligibility; 
 27.22     (5) an amount equal to the actual expenditures for the care 
 27.23  of each dependent child or incapacitated individual living in 
 27.24  the same home and receiving aid, not to exceed:  (a) $175 for 
 27.25  each individual age two and older, and $200 for each individual 
 27.26  under the age of two.  The dependent care disregard must be 
 27.27  applied after all other disregards under this subdivision have 
 27.28  been applied; 
 27.29     (6) the first $50 per assistance unit of the monthly 
 27.30  support obligation collected by the support and recovery (IV-D) 
 27.31  unit.  The first $50 of periodic support payments collected by 
 27.32  the public authority responsible for child support enforcement 
 27.33  from a person with a legal obligation to pay support for a 
 27.34  member of the assistance unit must be paid to the assistance 
 27.35  unit within 15 days after the end of the month in which the 
 27.36  collection of the periodic support payments occurred and must be 
 28.1   disregarded when determining the amount of assistance.  A review 
 28.2   of a payment decision under this clause must be requested within 
 28.3   30 days after receiving the notice of collection of assigned 
 28.4   support or within 90 days after receiving the notice if good 
 28.5   cause can be shown for not making the request within the 30-day 
 28.6   limit; 
 28.7      (7) that portion of an insurance settlement earmarked and 
 28.8   used to pay medical expenses, funeral and burial costs, or to 
 28.9   repair or replace insured property; and 
 28.10     (8) all earned income tax credit payments received by the 
 28.11  family as a refund of federal income taxes or made as advance 
 28.12  payments by an employer.  
 28.13     All payments made pursuant to a court order for the support 
 28.14  of children not living in the assistance unit's household shall 
 28.15  be disregarded from the income of the person with the legal 
 28.16  obligation to pay support, provided that, if there has been a 
 28.17  change in the financial circumstances of the person with the 
 28.18  legal obligation to pay support since the support order was 
 28.19  entered, the person with the legal obligation to pay support has 
 28.20  petitioned for a modification of the support order. 
 28.21     Sec. 11.  [256.986] [ASSISTANCE TRANSACTION CARD FEE.] 
 28.22     Subdivision 1.  [REPLACEMENT CARD.] The commissioner of 
 28.23  human services may charge a cardholder, as defined in section 
 28.24  256.985, a $2 fee to replace an assistance transaction card.  
 28.25  The fees shall be appropriated to the commissioner and used for 
 28.26  electronic benefit purposes. 
 28.27     Subd. 2.  [TRANSACTION FEE.] Contingent upon the results of 
 28.28  a state study to determine the cost-effectiveness of a 
 28.29  transaction fee, the commissioner may charge a transaction fee 
 28.30  of up to $1 for each automated teller machine transaction in 
 28.31  excess of four per month, up to a cap of $10 in transaction fees 
 28.32  per cardholder, per month.  A transaction fee subsequently set 
 28.33  by the federal government may supersede a fee established under 
 28.34  this subdivision.  The fees shall be appropriated to the 
 28.35  commissioner and used for electronic benefit purposes. 
 28.36     Sec. 12.  Minnesota Statutes 1994, section 256D.05, 
 29.1   subdivision 7, is amended to read: 
 29.2      Subd. 7.  [INELIGIBILITY FOR GENERAL ASSISTANCE.] No person 
 29.3   ~~disqualified from any federally aided assistance program~~ shall 
 29.4   be eligible for general assistance during ~~the~~ a period ~~covered~~ 
 29.5   ~~by the disqualification sanction~~ of disqualification from any 
 29.6   federally aided assistance program; or if the person could be 
 29.7   considered an essential person under section 256.74, subdivision 
 29.8   1.  
 29.9      Sec. 13.  Minnesota Statutes 1994, section 256D.36, 
 29.10  subdivision 1, is amended to read: 
 29.11     Subdivision 1.  [STATE PARTICIPATION.] ~~(a)  [ELIGIBILITY.]~~ 
 29.12  ~~Commencing January 1, 1974, the commissioner shall certify to~~ 
 29.13  ~~each county agency the names of all county residents who were~~ 
 29.14  ~~eligible for and did receive aid during December, 1973, pursuant~~ 
 29.15  ~~to a categorical aid program of old age assistance, aid to the~~ 
 29.16  ~~blind, or aid to the disabled.  The amount of supplemental aid~~ 
 29.17  ~~for each individual eligible under this section shall be~~ 
 29.18  ~~calculated according to the formula in title II, section 212(a)~~ 
 29.19  ~~(3) of Public Law Number 93-66, as amended.~~ 
 29.20     ~~(b)  [DIVISION COSTS.] From and after January 1, 1980,~~ 
 29.21  ~~until January 1, 1981, the state shall pay 70 percent and the~~ 
 29.22  ~~county shall pay 30 percent of the supplemental aid calculated~~ 
 29.23  ~~for each county resident certified under this section who is an~~ 
 29.24  ~~applicant for or recipient of supplemental security income.~~  
 29.25  ~~After December 31, 1980, the state share of aid paid shall be 85~~ 
 29.26  ~~percent and the county share shall be 15 percent.  Benefits~~ 
 29.27  ~~shall be issued to recipients by the state or county and funded~~ 
 29.28  ~~according to section 256.025, subdivision 3, subject to~~ 
 29.29  ~~provisions of section 256.017.~~ 
 29.30     Beginning July 1, 1991, the state will reimburse counties 
 29.31  according to the payment schedule in section 256.025 for the 
 29.32  county share of county agency expenditures for financial 
 29.33  benefits to individuals under this subdivision from January 1, 
 29.34  1991, on.  Payment to counties under this subdivision is subject 
 29.35  to the provisions of section 256.017. 
 29.36     Sec. 14.  Minnesota Statutes 1994, section 256D.385, is 
 30.1   amended to read: 
 30.2      256D.385 [RESIDENCE.] 
 30.3      To be eligible for Minnesota supplemental aid, a person 
 30.4   must be a resident of Minnesota and (1) a citizen of the United 
 30.5   States, (2) an alien lawfully admitted to the United States for 
 30.6   permanent residence, or (3) ~~otherwise permanently residing in~~ 
 30.7   ~~the United States under color of law~~ a qualified alien as 
 30.8   defined by the supplemental security income program.  
 30.9      Sec. 15.  Minnesota Statutes 1994, section 256D.405, 
 30.10  subdivision 3, is amended to read: 
 30.11     Subd. 3.  [REPORTS.] Recipients must report changes in 
 30.12  circumstances that affect eligibility or assistance payment 
 30.13  amounts within ten days of the change.  Recipients ~~with earned~~ 
 30.14  ~~income, and recipients~~ who do not receive SSI because of excess 
 30.15  income must complete a monthly report form if they have earned 
 30.16  income, if they have income ~~allocated~~ provided to them from a 
 30.17  financially responsible relative with whom the recipient 
 30.18  resides, ~~must complete a monthly household report form~~ or if 
 30.19  they have income provided to them by a sponsor.  If the report 
 30.20  form is not received before the end of the month in which it is 
 30.21  due, the county agency must terminate assistance.  The 
 30.22  termination shall be effective on the first day of the month 
 30.23  following the month in which the report was due.  If a complete 
 30.24  report is received within the month the assistance was 
 30.25  terminated, the assistance unit is considered to have continued 
 30.26  its application for assistance, effective the first day of the 
 30.27  month the assistance was terminated. 
 30.28     Sec. 16.  Minnesota Statutes 1994, section 256D.425, 
 30.29  subdivision 1, is amended to read: 
 30.30     Subdivision 1.  [PERSONS ENTITLED TO RECEIVE AID.] ~~A person~~ 
 30.31  ~~who is aged, blind, or 18 years of age or older and disabled,~~ 
 30.32  ~~whose income is less than the standards of assistance in section~~ 
 30.33  ~~256D.44 and whose resources are less than the limits in~~ 
 30.34  ~~subdivision 2 is eligible for and entitled to Minnesota~~ 
 30.35  ~~supplemental aid.  A person found eligible by the Social~~ 
 30.36  ~~Security Administration for supplemental security income under~~ 
 31.1   ~~Title XVI on the basis of age, blindness, or disability meets~~ 
 31.2   ~~these requirements.  A person who would be eligible for the~~ 
 31.3   ~~supplemental security income program except for income that~~ 
 31.4   ~~exceeds the limit of that program but that~~ A person found 
 31.5   eligible by the Social Security Administration to receive 
 31.6   supplemental security benefits under Title XVI on the basis of 
 31.7   age, blindness, or disability (or one who would be eligible for 
 31.8   such benefits except for excess income) is eligible for a 
 31.9   supplemental payment under the Minnesota supplemental aid 
 31.10  program, if the person's net income is less than the standards 
 31.11  in section 256D.44.  Persons who are not receiving SSI benefits 
 31.12  because they have exhausted time limited benefits or because 
 31.13  they failed to meet or comply with SSI program requirements are 
 31.14  not eligible to receive a supplemental payment from the MSA 
 31.15  program.  People who are found ineligible for SSI because of 
 31.16  excess income, but whose income is within the limits of the 
 31.17  Minnesota supplemental aid program, must have blindness or 
 31.18  disability determined by the state medical review team.  
 31.19     Sec. 17.  Minnesota Statutes 1994, section 256D.435, 
 31.20  subdivision 1, is amended to read: 
 31.21     Subdivision 1.  [~~EXCLUSIONS~~ INCOME.] ~~The following is~~ 
 31.22  ~~excluded from income in determining eligibility for Minnesota~~ 
 31.23  ~~supplemental aid:~~  
 31.24     ~~(1) the value of food stamps;~~ 
 31.25     ~~(2) home-produced food used by the household;~~ 
 31.26     ~~(3) Indian claim payments made by the United States~~ 
 31.27  ~~Congress to compensate members of Indian tribes for the taking~~ 
 31.28  ~~of tribal lands by the federal government;~~ 
 31.29     ~~(4) cash payments to displaced persons who face relocation~~ 
 31.30  ~~as a result of the Housing Act of 1965, the Housing and Urban~~ 
 31.31  ~~Development Act of 1965, or the Uniform Relocation Assistance~~ 
 31.32  ~~and Real Property Acquisition Policies Act of 1970;~~ 
 31.33     ~~(5) one-third of child support payments received by an~~ 
 31.34  ~~eligible child from an absent parent;~~ 
 31.35     ~~(6) displaced homemaker payments;~~ 
 31.36     ~~(7) reimbursement received for maintenance costs of~~ 
 32.1   ~~providing foster care to adults or children;~~ 
 32.2      ~~(8) benefits received under Title IV and Title VII of the~~ 
 32.3   ~~Older Americans Act of 1965;~~ 
 32.4      ~~(9) Minnesota renter or homeowner property tax refunds;~~ 
 32.5      ~~(10) infrequent, irregular income that does not total more~~ 
 32.6   ~~than $20 per person in a month;~~ 
 32.7      ~~(11) reimbursement payments received from the VISTA~~ 
 32.8   ~~program;~~ 
 32.9      ~~(12) in-kind income;~~ 
 32.10     ~~(13) payments received for providing volunteer services~~ 
 32.11  ~~under Title I, Title II, and Title III of the Domestic Volunteer~~ 
 32.12  ~~Service Act of 1973;~~ 
 32.13     ~~(14) loans that have to be repaid;~~ 
 32.14     ~~(15) federal low-income heating assistance program~~ 
 32.15  ~~payments;~~ 
 32.16     ~~(16) any other type of funds excluded as income by state~~ 
 32.17  ~~law;~~ 
 32.18     ~~(17) student financial aid, as allowed for the supplemental~~ 
 32.19  ~~security income program; and~~ 
 32.20     ~~(18) other income excluded by the supplemental security~~ 
 32.21  ~~income program.~~  For persons receiving supplemental security 
 32.22  income benefits, the countable income used to determine 
 32.23  eligibility and benefits for Minnesota supplemental aid is the 
 32.24  gross amount of the Federal Benefit Rate (FBR) after allowing 
 32.25  for the general income disregard in subdivision 5.  For persons 
 32.26  who have been denied a supplemental security income benefit due 
 32.27  to excess income, and who have had their blindness or disability 
 32.28  determined through the state medical review team, the countable 
 32.29  income is the gross amount of earned and unearned income, minus 
 32.30  the exclusions and disregards listed in subdivisions 4a, 5, and 
 32.31  6. 
 32.32     Sec. 18.  Minnesota Statutes 1994, section 256D.435, 
 32.33  subdivision 3, is amended to read: 
 32.34     Subd. 3.  [APPLICATION FOR FEDERALLY FUNDED BENEFITS.] 
 32.35  ~~Persons for whom the applicant or recipient has financial~~ 
 32.36  ~~responsibility and who have unmet needs~~ Persons who live with 
 33.1   the applicant or recipient, who have unmet needs and for whom 
 33.2   the applicant or recipient has financial responsibility must 
 33.3   apply for and, if eligible, accept AFDC and other federally 
 33.4   funded benefits.  ~~If the persons are determined potentially~~ 
 33.5   ~~eligible for AFDC by the county agency, the applicant or~~ 
 33.6   ~~recipient may not allocate earned or unearned income to those~~ 
 33.7   ~~persons while an AFDC application is pending, or after the~~ 
 33.8   ~~persons are determined eligible for AFDC.  If the persons are~~ 
 33.9   ~~determined potentially eligible for other federal benefits, the~~ 
 33.10  ~~applicant or recipient may only allocate income to those persons~~ 
 33.11  ~~until they are determined eligible for those other benefits~~ 
 33.12  ~~unless the amount of those benefits is less than the amount in~~ 
 33.13  ~~subdivision 4.~~  
 33.14     Sec. 19.  Minnesota Statutes 1994, section 256D.435, 
 33.15  subdivision 4, is amended to read: 
 33.16     Subd. 4.  [ALLOCATION AND DEEMING OF INCOME.] ~~The rate of~~ 
 33.17  ~~allocation to relatives for whom the applicant or recipient is~~ 
 33.18  ~~financially responsible is one-half the individual supplemental~~ 
 33.19  ~~security income standard of assistance, except as restricted in~~ 
 33.20  ~~subdivision 3.~~  
 33.21     ~~If the applicant or recipient shares a residence with~~ 
 33.22  ~~another person who has financial responsibility for the~~ 
 33.23  ~~applicant or recipient, the income of that person is considered~~ 
 33.24  ~~available to the applicant or recipient after allowing:  (1) the~~ 
 33.25  ~~deductions in subdivisions 7 and 8; and (2) a deduction for the~~ 
 33.26  ~~needs of the financially responsible relative and others in the~~ 
 33.27  ~~household for whom that relative is financially responsible.~~  
 33.28  ~~The rate allowed to meet the needs of each of these people is~~ 
 33.29  ~~one-half the individual supplemental security income~~ 
 33.30  ~~standard.~~  The county agency shall apply the supplemental 
 33.31  security income rules regarding financial responsibility in 
 33.32  determining when and the amount of income to allocate or deem. 
 33.33     Sec. 20.  Minnesota Statutes 1994, section 256D.435, is 
 33.34  amended by adding a subdivision to read: 
 33.35     Subd. 4a.  [EXCLUSIONS.] The income exclusions used to 
 33.36  determine eligibility for Minnesota supplemental aid are those 
 34.1   used to determine benefits for supplemental security income. 
 34.2      Sec. 21.  Minnesota Statutes 1994, section 256D.435, 
 34.3   subdivision 5, is amended to read: 
 34.4      Subd. 5.  [GENERAL INCOME DISREGARD.] The county agency 
 34.5   shall disregard the first $20 of the assistance unit's unearned 
 34.6   or earned income ~~from the assistance unit's gross earned income~~. 
 34.7      Sec. 22.  Minnesota Statutes 1994, section 256D.435, 
 34.8   subdivision 6, is amended to read: 
 34.9      Subd. 6.  [EARNED INCOME DISREGARDS.] ~~From the assistance~~ 
 34.10  ~~unit's gross earned income, the county agency shall disregard~~ 
 34.11  ~~$65 plus one-half of the remaining income.~~  The earned income 
 34.12  disregards used to determine eligibility for Minnesota 
 34.13  supplemental aid are those used to determine benefits for 
 34.14  supplemental security income.  
 34.15     Sec. 23.  Minnesota Statutes 1994, section 256D.44, 
 34.16  subdivision 1, is amended to read: 
 34.17     Subdivision 1.  [USE OF STANDARDS; INCREASES.] The state 
 34.18  standards of assistance for ~~shelter,~~ basic needs, ~~and~~ plus 
 34.19  special need items ~~that~~ establish the total amount of 
 34.20  ~~maintenance~~ need for an applicant for or recipient of Minnesota 
 34.21  supplemental aid~~, are~~ used to determine the assistance unit's 
 34.22  eligibility for Minnesota supplemental aid.  The state standards 
 34.23  of assistance for basic needs must increase by an amount equal 
 34.24  to the dollar value, rounded up to the nearest dollar, of any 
 34.25  cost of living increases in the supplemental security income 
 34.26  program. 
 34.27     Sec. 24.  Minnesota Statutes 1994, section 256D.44, 
 34.28  subdivision 2, is amended to read: 
 34.29     Subd. 2.  [STANDARD OF ASSISTANCE FOR ~~SHELTER~~ PERSONS 
 34.30  ELIGIBLE FOR MEDICAL ASSISTANCE WAIVERS OR AT RISK OF 
 34.31  INSTITUTIONALIZATION.] ~~The state standard of assistance for~~ 
 34.32  ~~shelter provides for the recipient's shelter costs.  The monthly~~ 
 34.33  ~~state standard of assistance for shelter must be determined~~ 
 34.34  ~~according to paragraphs (a) to (f).~~ 
 34.35     ~~(a) If an applicant or recipient does not reside with~~ 
 34.36  ~~another person or persons, the state standard of assistance is~~ 
 35.1   ~~the actual cost for shelter items or $124, whichever is less.~~  
 35.2      ~~(b) If an applicant married couple or recipient married~~ 
 35.3   ~~couple, who live together, does not reside with others, the~~ 
 35.4   ~~state standard of assistance is the actual cost for shelter~~ 
 35.5   ~~items or $186, whichever is less.~~  
 35.6      ~~(c) If an applicant or recipient resides with another~~ 
 35.7   ~~person or persons, the state standard of assistance is the~~ 
 35.8   ~~actual cost for shelter items or $93, whichever is less.~~ 
 35.9      ~~(d) If an applicant married couple or recipient married~~ 
 35.10  ~~couple, who live together, resides with others, the state~~ 
 35.11  ~~standard of assistance is the actual cost for shelter items or~~ 
 35.12  ~~$124, whichever is less.~~ 
 35.13     ~~(e) Actual shelter costs for applicants or recipients, who~~ 
 35.14  ~~reside with others, are determined by dividing the total monthly~~ 
 35.15  ~~shelter costs by the number of persons who share the residence.~~ 
 35.16     ~~(f) Married couples, living together and receiving MSA on~~ 
 35.17  ~~January 1, 1994, and whose eligibility has not been terminated~~ 
 35.18  ~~for a full calendar month, are exempt from the standards in~~ 
 35.19  ~~paragraphs (b) and (d).~~  The state standard for a person who is 
 35.20  eligible for a medical assistance waiver or a person who has 
 35.21  been determined by the local agency to require placement in a 
 35.22  group residential housing facility is the standard in 
 35.23  subdivision 3, paragraph (a) or (b). 
 35.24     Sec. 25.  Minnesota Statutes 1994, section 256D.44, 
 35.25  subdivision 3, is amended to read: 
 35.26     Subd. 3.  [STANDARD OF ASSISTANCE FOR BASIC NEEDS.] ~~The~~ 
 35.27  ~~state standard of assistance for basic needs provides for the~~ 
 35.28  ~~applicant's or recipient's maintenance needs, other than actual~~ 
 35.29  ~~shelter costs.~~  Except as provided in subdivision 4, the monthly 
 35.30  state standard of assistance for basic needs is as follows:  
 35.31     (a) If an applicant or recipient does not reside with 
 35.32  another person or persons, the state standard of assistance is 
 35.33  ~~$371~~ $519.  
 35.34     (b) If an applicant married couple or recipient married 
 35.35  couple who live together, does not reside with others, the state 
 35.36  standard of assistance is ~~$557~~ $778. 
 36.1      (c) If an applicant or recipient resides with another 
 36.2   person or persons, the state standard of assistance is ~~$286~~ $395.
 36.3      (d) If an applicant married couple or recipient married 
 36.4   couple who live together, resides with others, the state 
 36.5   standard of assistance is ~~$371~~ $519. 
 36.6      (e) For married couples, living together and receiving MSA 
 36.7   ~~on~~ prior to January 1, 1994, and whose eligibility has not been 
 36.8   terminated a full calendar month, ~~are exempt from the standards~~ 
 36.9   ~~in paragraphs (b) and (d)~~ the state standard of need is $793. 
 36.10     (f) The state standard of assistance for married couples 
 36.11  who do not live with others and are receiving MSA prior to 
 36.12  January 1, 1994, and whose eligibility has not been terminated a 
 36.13  full calendar month, is $682. 
 36.14     (g) The state standard of assistance for an individual who 
 36.15  is a resident of a nursing home, a regional treatment center or 
 36.16  a group residential housing facility is the personal needs 
 36.17  allowance for medical assistance recipients under section 
 36.18  256B.35. 
 36.19     Sec. 26.  Minnesota Statutes 1994, section 256D.44, 
 36.20  subdivision 4, is amended to read: 
 36.21     Subd. 4.  [TEMPORARY ABSENCE DUE TO ILLNESS.] For the 
 36.22  purposes of this subdivision, "home" means a residence owned or 
 36.23  rented by a recipient or the recipient's spouse.  Home does not 
 36.24  include a ~~negotiated rate~~ group residential housing facility.  
 36.25  Assistance payments for recipients who are temporarily absent 
 36.26  from their home due to hospitalization for illness must continue 
 36.27  at the same level of payment during their absence if the 
 36.28  following criteria are met:  
 36.29     (1) a physician certifies that the absence is not expected 
 36.30  to continue for more than three months; 
 36.31     (2) a physician certifies that the recipient will be able 
 36.32  to return to independent living; and 
 36.33     (3) the recipient has expenses associated with maintaining 
 36.34  a residence in the community.  
 36.35     Sec. 27.  Minnesota Statutes 1994, section 256D.44, 
 36.36  subdivision 5, is amended to read: 
 37.1      Subd. 5.  [SPECIAL NEEDS.] ~~Notwithstanding~~ In addition to 
 37.2   the state standards established in subdivisions 1 to 4, payments 
 37.3   are allowed for the following special needs of recipients of 
 37.4   Minnesota supplemental aid who are not residents of a nursing 
 37.5   home, a regional treatment center, or a group residential 
 37.6   housing facility:  
 37.7      (a) The county agency shall pay a monthly allowance for 
 37.8   medically prescribed diets payable under the AFDC program if the 
 37.9   cost of those additional dietary needs cannot be met through 
 37.10  some other maintenance benefit.  
 37.11     (b) Payment for nonrecurring special needs must be allowed 
 37.12  for necessary home repairs or necessary repairs or replacement 
 37.13  of household furniture and appliances using the payment standard 
 37.14  of the AFDC program for these expenses, as long as other funding 
 37.15  sources are not available.  
 37.16     (c) A fee for guardian or conservator service is allowed at 
 37.17  a reasonable rate negotiated by the county or approved by the 
 37.18  court.  This rate shall not exceed five percent of the 
 37.19  assistance unit's gross monthly income up to a maximum of $100 
 37.20  per month.  If the guardian or conservator is a member of the 
 37.21  county agency staff, no fee is allowed. 
 37.22     (d) The county agency shall continue to pay a monthly 
 37.23  allowance of $68 for restaurant meals for a person who was 
 37.24  receiving a restaurant meal allowance on June 1, 1990, and who 
 37.25  eats two or more meals in a restaurant daily.  The allowance 
 37.26  must continue until the person has not received Minnesota 
 37.27  supplemental aid for one full calendar month or until the 
 37.28  person's living arrangement changes and the person no longer 
 37.29  meets the criteria for the restaurant meal allowance, whichever 
 37.30  occurs first. 
 37.31     (e) A fee of ten percent of the recipient's gross income or 
 37.32  $25, whichever is less, is allowed for representative payee 
 37.33  services provided by an agency that meet the requirements under 
 37.34  SSI regulations to charge a fee for representative payee 
 37.35  services.  This special need is available to all recipients of 
 37.36  Minnesota supplemental aid regardless of their living 
 38.1   arrangement. 
 38.2      Sec. 28.  Minnesota Statutes 1994, section 256D.44, 
 38.3   subdivision 6, is amended to read: 
 38.4      Subd. 6.  [COUNTY AGENCY STANDARDS OF ASSISTANCE.] The 
 38.5   county agency may establish standards of assistance for ~~shelter,~~ 
 38.6   basic needs, special needs, and clothing and personal needs~~, and~~ 
 38.7   ~~negotiated rates~~ that exceed the corresponding state standards 
 38.8   of assistance.  State aid is not available for costs above state 
 38.9   standards.  
 38.10     Sec. 29.  Minnesota Statutes 1994, section 256D.45, 
 38.11  subdivision 1, is amended to read: 
 38.12     Subdivision 1.  [PROSPECTIVE BUDGETING.] ~~A calendar month~~ 
 38.13  ~~is~~ The payment period and budgeting cycle for Minnesota 
 38.14  supplemental aid~~.  The monthly payment to a recipient must be~~ 
 38.15  ~~determined prospectively~~ are those of the supplemental security 
 38.16  income program. 
 38.17     Sec. 30.  Minnesota Statutes 1994, section 256D.46, 
 38.18  subdivision 1, is amended to read: 
 38.19     Subdivision 1.  [ELIGIBILITY.] Emergency Minnesota 
 38.20  supplemental aid must be granted if the recipient is without 
 38.21  adequate resources to resolve an emergency that, if unresolved, 
 38.22  will threaten the health or safety of the recipient.  For the 
 38.23  purposes of this section, the term "recipient" includes persons 
 38.24  for whom a group residential housing benefit is being paid under 
 38.25  sections 256I.01 to 256I.06. 
 38.26     Sec. 31.  Minnesota Statutes 1994, section 256D.46, 
 38.27  subdivision 2, is amended to read: 
 38.28     Subd. 2.  [INCOME AND RESOURCE TEST.] All income and 
 38.29  resources available to the recipient during the month in which 
 38.30  the need for emergency Minnesota supplemental aid arises must be 
 38.31  considered in determining the recipient's ability to meet the 
 38.32  emergency need.  Property that can be liquidated in time to 
 38.33  resolve the emergency and income (excluding Minnesota 
 38.34  supplemental aid issued for current month's need) that is 
 38.35  normally disregarded or excluded under the Minnesota 
 38.36  supplemental aid program must be considered available to meet 
 39.1   the emergency need.  
 39.2      Sec. 32.  Minnesota Statutes 1994, section 256D.48, 
 39.3   subdivision 1, is amended to read: 
 39.4      Subdivision 1.  [NEED FOR PROTECTIVE PAYEE.] The county 
 39.5   agency shall determine whether a recipient needs a protective 
 39.6   payee when a physical or mental condition renders the recipient 
 39.7   unable to manage funds and when payments to the recipient would 
 39.8   be contrary to the recipient's welfare.  Protective payments 
 39.9   must be issued when there is evidence of:  (1) repeated 
 39.10  inability to plan the use of income to meet necessary 
 39.11  expenditures; (2) repeated observation that the recipient is not 
 39.12  properly fed or clothed; (3) repeated failure to meet 
 39.13  obligations for rent, utilities, food, and other essentials; (4) 
 39.14  evictions or a repeated incurrence of debts; ~~or~~ (5) lost or 
 39.15  stolen checks; or (6) use of emergency Minnesota supplemental 
 39.16  aid more than twice in a calendar year.  The determination of 
 39.17  representative payment by the Social Security Administration for 
 39.18  the recipient is sufficient reason for protective payment of 
 39.19  Minnesota supplemental aid payments.  
 39.20     Sec. 33.  [REPEALER.] 
 39.21     Minnesota Statutes 1994, sections 256.851; 256D.35, 
 39.22  subdivisions 14 and 19; 256D.36, subdivision 1a; 256D.37; 
 39.23  256D.425, subdivision 3; 256D.435, subdivisions 2, 7, 8, 9, and 
 39.24  10; and 256D.44, subdivision 7, are repealed. 
 39.25                             ARTICLE 3 
 39.26                         PROGRAM INTEGRITY 
 39.27     Section 1.  Minnesota Statutes 1994, section 256.034, 
 39.28  subdivision 1, is amended to read: 
 39.29     Subdivision 1.  [CONSOLIDATION OF TYPES OF ASSISTANCE.] 
 39.30  Under the Minnesota family investment plan, assistance 
 39.31  previously provided to families through the AFDC, food stamp, 
 39.32  and general assistance programs must be combined into a single 
 39.33  cash assistance program.  As authorized by Congress, families 
 39.34  receiving assistance through the Minnesota family investment 
 39.35  plan are automatically eligible for and entitled to medical 
 39.36  assistance under chapter 256B.  Federal, state, and local funds 
 40.1   that would otherwise be allocated for assistance to families 
 40.2   under the AFDC, food stamp, and general assistance programs must 
 40.3   be transferred to the Minnesota family investment plan.  The 
 40.4   provisions of the Minnesota family investment plan prevail over 
 40.5   any provisions of sections 245.771, 256.72 to 256.87, 256D.01 to 
 40.6   256D.21, or 393.07, subdivisions 10 and 10a, and any rules 
 40.7   implementing those sections with which they are irreconcilable.  
 40.8   The food stamp, general assistance, and work readiness programs 
 40.9   for single persons and couples who are not responsible for the 
 40.10  care of children are not replaced by the Minnesota family 
 40.11  investment plan.  Unless stated otherwise in statutes or rules 
 40.12  governing the Minnesota family investment plan, participants in 
 40.13  the Minnesota family investment plan shall be considered to be 
 40.14  recipients of aid under aid to families with dependent children, 
 40.15  family general assistance, and food stamps for the purposes of 
 40.16  statutes and rules affecting such recipients or allocations of 
 40.17  funding based on the assistance status of the recipients, and to 
 40.18  specifically be subject to the provisions of section 256.98.  
 40.19     Sec. 2.  Minnesota Statutes 1994, section 256.73, 
 40.20  subdivision 2, is amended to read: 
 40.21     Subd. 2.  [ALLOWANCE BARRED BY OWNERSHIP OF PROPERTY.] 
 40.22  Ownership by an assistance unit of property as follows is a bar 
 40.23  to any allowance under sections 256.72 to 256.87: 
 40.24     (1) The value of real property other than the homestead, 
 40.25  which when combined with other assets exceeds the limits of 
 40.26  paragraph (2), unless the assistance unit is making a good faith 
 40.27  effort to sell the nonexcludable real property.  The time period 
 40.28  for disposal must not exceed nine consecutive months.  The 
 40.29  assistance unit must sign an agreement to dispose of the 
 40.30  property and to ~~repay assistance received during the nine months~~ 
 40.31  ~~that would not have been paid had the property been sold at the~~ 
 40.32  ~~beginning of such period, but not to exceed the amount of the~~ 
 40.33  ~~net sale proceeds.  The family has five working days from the~~ 
 40.34  ~~date it realizes cash from the sale of the property to repay the~~ 
 40.35  ~~overpayment.  If the property is not sold within the required~~ 
 40.36  ~~time or the assistance unit becomes ineligible for any reason~~ 
 41.1   ~~during the nine-month period, the amount payable under the~~ 
 41.2   ~~agreement will not be determined and recovery will not begin~~ 
 41.3   ~~until the property is in fact sold.~~ execute a lien covering that 
 41.4   property with the amount of assistance expended over the 
 41.5   nine-month period covered by the agreement.  The amount payable 
 41.6   should be calculated and entered onto the lien form, which shall 
 41.7   be filed for record with the recorder in the county where the 
 41.8   real property is situated.  The lien takes priority from the 
 41.9   time of its attaching over all other liens subsequently acquired 
 41.10  and subsequent conveyances.  The lien shall be enforced in the 
 41.11  manner provided by law for the enforcement of mechanics liens 
 41.12  upon real property and at such time as the property is in fact 
 41.13  sold.  If the property is intentionally sold at less than fair 
 41.14  market value or if a good faith effort to sell the property is 
 41.15  not being made, the overpayment amount shall be computed using 
 41.16  the fair market value determined at the beginning of the 
 41.17  nine-month period.  For the purposes of this section, 
 41.18  "homestead" means the home that is owned by, and is the usual 
 41.19  residence of, the child, relative, or other member of the 
 41.20  assistance unit together with the surrounding property which is 
 41.21  not separated from the home by intervening property owned by 
 41.22  others.  "Usual residence" includes the home from which the 
 41.23  child, relative, or other members of the assistance unit is 
 41.24  temporarily absent due to an employability development plan 
 41.25  approved by the local human service agency, which includes 
 41.26  education, training, or job search within the state but outside 
 41.27  of the immediate geographic area.  Public rights-of-way, such as 
 41.28  roads which run through the surrounding property and separate it 
 41.29  from the home, will not affect the exemption of the property; or 
 41.30     (2) Personal property of an equity value in excess of 
 41.31  $1,000 for the entire assistance unit, exclusive of personal 
 41.32  property used as the home, one motor vehicle of an equity value 
 41.33  not exceeding $1,500 or the entire equity value of a motor 
 41.34  vehicle determined to be necessary for the operation of a 
 41.35  self-employment business, one burial plot for each member of the 
 41.36  assistance unit, one prepaid burial contract with an equity 
 42.1   value of no more than $1,000 for each member of the assistance 
 42.2   unit, clothing and necessary household furniture and equipment 
 42.3   and other basic maintenance items essential for daily living, in 
 42.4   accordance with rules promulgated by and standards established 
 42.5   by the commissioner of human services. 
 42.6      Sec. 3.  Minnesota Statutes 1994, section 256.98, 
 42.7   subdivision 1, is amended to read: 
 42.8      Subdivision 1.  [WRONGFULLY OBTAINING ASSISTANCE.] A person 
 42.9   who obtains, or attempts to obtain, or aids or abets any person 
 42.10  to obtain by means of a willfully false statement or 
 42.11  representation, by intentional concealment of a material fact, 
 42.12  or by impersonation or other fraudulent device, assistance to 
 42.13  which the person is not entitled or assistance greater than that 
 42.14  to which the person is entitled, or who knowingly aids or abets 
 42.15  in buying or in any way disposing of the property of a recipient 
 42.16  or applicant of assistance without the consent of the county 
 42.17  agency with intent to defeat the purposes of sections 
 42.18  256.12, 256.031 to 256.0361, 256.72 to 256.871, and chapter 
 42.19  256B, or all of these sections is guilty of theft and shall be 
 42.20  sentenced pursuant to section 609.52, subdivision 3, clauses 
 42.21  (2), (3)(a) and (c), (4), and (5). 
 42.22     Sec. 4.  Minnesota Statutes 1994, section 256.98, 
 42.23  subdivision 8, is amended to read: 
 42.24     Subd. 8.  [DISQUALIFICATION FROM PROGRAM.] Any person found 
 42.25  to be guilty of wrongfully obtaining assistance by a federal or 
 42.26  state court or by an administrative hearing determination, or 
 42.27  waiver of such a hearing, through a disqualification consent 
 42.28  agreement, or as part of any approved diversion plan under 
 42.29  section 401.065 in ~~either~~ the aid to families with dependent 
 42.30  children program ~~or~~, the food stamp program, the Minnesota 
 42.31  family investment plan, the general assistance or family general 
 42.32  assistance program, or the Minnesota supplemental aid program 
 42.33  shall be disqualified from that program.  The needs of that 
 42.34  individual shall not be taken into consideration in determining 
 42.35  the grant level for that assistance unit:  
 42.36     (1) for six months after the first offense; 
 43.1      (2) for 12 months after the second offense; and 
 43.2      (3) permanently after the third or subsequent offense.  
 43.3      ~~Any~~ The period ~~for which sanctions are imposed is~~ 
 43.4   ~~effective,~~ of program disqualification shall begin on the date 
 43.5   stipulated on the advance notice of disqualification without 
 43.6   possibility of postponement for administrative stay~~,~~ or hearing 
 43.7   and shall continue through completion unless and until the 
 43.8   findings upon which the sanctions were imposed are reversed by a 
 43.9   court of competent jurisdiction.  The period for which sanctions 
 43.10  are imposed is not subject to review.  The sanctions provided 
 43.11  under this subdivision are in addition to, and not in 
 43.12  substitution for, any other sanctions that may be provided for 
 43.13  by law for the offense involved.  Notwithstanding clauses (1) to 
 43.14  (3), the disqualification period shall not begin until the 
 43.15  disqualified individual establishes being otherwise eligible for 
 43.16  the program which is the subject of the disqualification.  
 43.17     Sec. 5.  Minnesota Statutes 1994, section 256.983, 
 43.18  subdivision 4, is amended to read: 
 43.19     Subd. 4.  [FUNDING.] (a) Every involved county agency shall 
 43.20  either have in place or obtain an approved contract which meets 
 43.21  all federal requirements necessary to obtain enhanced federal 
 43.22  funding for its welfare fraud control and fraud prevention 
 43.23  investigation programs.  County agency reimbursement shall be 
 43.24  made through the settlement provisions applicable to the aid to 
 43.25  families with dependent children and food stamp programs.  
 43.26     (b) Should a county agency fail to comply with the fraud 
 43.27  prevention investigation guidelines or fail to meet cost 
 43.28  effectiveness standards developed by the commissioner for three 
 43.29  months during any grant year, the commissioner shall deny 
 43.30  reimbursement after allowing an opportunity to establish 
 43.31  compliance.  This result is contingent on the commissioner's 
 43.32  providing written notice, including an offer of technical 
 43.33  assistance, within 30 days of the end of the third or subsequent 
 43.34  month of noncompliance.  The county agency shall be required to 
 43.35  submit a corrective action plan to the commissioner within 30 
 43.36  days of receipt of a notice of noncompliance.  Failure to submit 
 44.1   a corrective action plan, or continued deviation from standards 
 44.2   of more than ten percent after submission of a corrective action 
 44.3   plan, shall result in denial of funding for each subsequent 
 44.4   month during the grant year or billing the county agency for 
 44.5   fraud prevention investigation (FPI) service provided by the 
 44.6   commissioner.  The denial of funding shall apply to the general 
 44.7   settlement received by the county agency on a quarterly basis 
 44.8   and shall not reduce the grant amount applicable to the FPI 
 44.9   project.  
 44.10     Sec. 6.  Minnesota Statutes 1994, section 256.983, is 
 44.11  amended by adding a subdivision to read: 
 44.12     Subd. 5.  [FPI PROGRAM EXPANSION; PILOT PROJECT.] (a) 
 44.13  Within the limits of available appropriations and to the extent 
 44.14  either required or authorized by applicable federal regulations, 
 44.15  the commissioner of human services shall fund a two-year pilot 
 44.16  project to test the effectiveness of expanding the Fraud 
 44.17  Prevention Investigation (FPI) Program to all remaining counties 
 44.18  regardless of county AFDC case load size.  Investigative staff 
 44.19  shall be required to provide FPI services to financial 
 44.20  assistance staff in all counties within FPI districts 
 44.21  established by the commissioner.  
 44.22     (b) FPI district services providers shall be selected based 
 44.23  on responses to requests for proposals issued by the 
 44.24  commissioner.  If proposals are not submitted or do not meet 
 44.25  standards set forth in the request for proposal, the 
 44.26  commissioner may provide or contract for FPI district service 
 44.27  providers.  Nothing in this initiative shall preclude existing 
 44.28  counties currently operating an FPI program from submitting 
 44.29  proposals to become district service providers.  
 44.30     (c) County agency financial assistance staff assigned to 
 44.31  each FPI district shall comply with FPI program operational 
 44.32  guidelines as set forth by the commissioner in section 256.986, 
 44.33  subdivisions 1 to 4.  
 44.34     (d) Optionally, qualifying counties may apply for funding 
 44.35  under section 256.986 to operate an FPI program pursuant to 
 44.36  section 256.983. 
 45.1      Sec. 7.  [256.986] [PROGRAM INTEGRITY REINVESTMENT 
 45.2   PROJECT.] 
 45.3      Subdivision 1.  [PROGRAM ESTABLISHED.] Within the limits of 
 45.4   available state and federal appropriations, and to the extent 
 45.5   required or authorized by applicable federal regulations, the 
 45.6   commissioner of human services shall make funding available to 
 45.7   county agencies for the establishment of program integrity 
 45.8   reinvestment initiatives.  The project shall initially be 
 45.9   limited to those county agencies participating in federally 
 45.10  funded optional fraud control programs as of January 1, 1995.  
 45.11     Subd. 2.  [COUNTY PROPOSALS.] Each included county shall 
 45.12  develop and submit annual funding, staffing, and operating grant 
 45.13  proposals to the commissioner no later than April 30 of each 
 45.14  year.  For the first operating year only, the proposal shall be 
 45.15  submitted no later than October 30.  Each proposal shall 
 45.16  include, but is not limited to:  (1) the staffing and funding of 
 45.17  the fraud investigation and prosecution operations; (2) job 
 45.18  descriptions for agency fraud control staff; (3) contracts 
 45.19  covering outside investigative agencies; (4) operational methods 
 45.20  to integrate the use of fraud prevention investigation 
 45.21  techniques; and (5) administrative disqualification hearings and 
 45.22  diversions into the existing county fraud control and 
 45.23  prosecution procedures.  
 45.24     Subd. 3.  [DEPARTMENT RESPONSIBILITIES.] The commissioner 
 45.25  shall provide written instructions outlining the contents of the 
 45.26  proposals to be submitted under this section.  Instructions 
 45.27  shall be made available 30 days prior to the date by which 
 45.28  proposals under subdivision 2 must be submitted.  The 
 45.29  commissioner shall establish training programs which shall be 
 45.30  attended by fraud control staff of all involved counties.  The 
 45.31  commissioner shall also develop the necessary operational 
 45.32  guidelines, forms, and reporting mechanisms which shall be used 
 45.33  by the involved counties.  
 45.34     Subd. 4.  [STANDARDS.] The commissioner shall establish 
 45.35  standards governing the performance levels of involved county 
 45.36  investigative units based on grant agreements negotiated with 
 46.1   the involved county agencies.  The standards shall take into 
 46.2   consideration and may include investigative caseloads, grant 
 46.3   savings levels, the comparison of fraud prevention and 
 46.4   prosecution directed investigations, utilization levels of 
 46.5   administrative disqualification hearings, the timely reporting 
 46.6   and implementation of disqualifications, and the timeliness of 
 46.7   prosecutorial required reports.  
 46.8      Subd. 5.  [FUNDING.] (a) Grant funds are intended to help 
 46.9   offset the reduction in federal financial participation to 50 
 46.10  percent and may be apportioned to the participating counties 
 46.11  whenever feasible, and within the commissioner's discretion, to 
 46.12  achieve this goal.  State funding shall be made available upon 
 46.13  approval of the grant proposal.  Failure or delay in obtaining 
 46.14  that approval shall not, however, eliminate the obligation to 
 46.15  maintain fraud control efforts at the January 1, 1995, level.  
 46.16  Additional counties may be added to the project to the extent 
 46.17  that funds are subsequently made available.  Every involved 
 46.18  county must meet all federal requirements necessary to obtain 
 46.19  federal funding for its welfare fraud control and prevention 
 46.20  programs.  County agency reimbursement shall be made through the 
 46.21  settlement provisions applicable to the AFDC and food stamp 
 46.22  programs.  
 46.23     (b) Should a county agency fail to comply with the 
 46.24  standards set, or fail to meet cost effectiveness standards 
 46.25  developed by the commissioner for three months during any grant 
 46.26  year, the commissioner shall deny reimbursement after allowing 
 46.27  an opportunity to establish compliance.  
 46.28     (c) Any denial of reimbursement under paragraph (b) is 
 46.29  contingent on the commissioner's providing written notice, 
 46.30  including an offer of technical assistance, within 30 days of 
 46.31  the end of the third or subsequent months of noncompliance.  The 
 46.32  county agency shall be required to submit a corrective action 
 46.33  plan to the commissioner within 30 days of receipt of a notice 
 46.34  of noncompliance.  Failure to submit a corrective action plan or 
 46.35  continued deviation from standards of more than ten percent 
 46.36  after submission of corrective action plan, will result in 
 47.1   denial of funding for each such month during the grant year, or 
 47.2   billing the county agency for program integrity reinvestment 
 47.3   project services provided by the commissioner.  The denial of 
 47.4   funding shall apply to the general settlement received by the 
 47.5   county agency on a quarterly basis and shall not reduce the 
 47.6   grant amount applicable to the program integrity reinvestment 
 47.7   project. 
 47.8      Sec. 8.  Minnesota Statutes 1994, section 393.07, 
 47.9   subdivision 10, is amended to read: 
 47.10     Subd. 10.  [FEDERAL FOOD STAMP PROGRAM.] (a) The local 
 47.11  social services agency shall establish and administer the food 
 47.12  stamp program pursuant to rules of the commissioner of human 
 47.13  services, the supervision of the commissioner as specified in 
 47.14  section 256.01, and all federal laws and regulations.  The 
 47.15  commissioner of human services shall monitor food stamp program 
 47.16  delivery on an ongoing basis to ensure that each county complies 
 47.17  with federal laws and regulations.  Program requirements to be 
 47.18  monitored include, but are not limited to, number of 
 47.19  applications, number of approvals, number of cases pending, 
 47.20  length of time required to process each application and deliver 
 47.21  benefits, number of applicants eligible for expedited issuance, 
 47.22  length of time required to process and deliver expedited 
 47.23  issuance, number of terminations and reasons for terminations, 
 47.24  client profiles by age, household composition and income level 
 47.25  and sources, and the use of phone certification and home 
 47.26  visits.  The commissioner shall determine the county-by-county 
 47.27  and statewide participation rate.  
 47.28     (b) On July 1 of each year, the commissioner of human 
 47.29  services shall determine a statewide and county-by-county food 
 47.30  stamp program participation rate.  The commissioner may 
 47.31  designate a different agency to administer the food stamp 
 47.32  program in a county if the agency administering the program 
 47.33  fails to increase the food stamp program participation rate 
 47.34  among families or eligible individuals, or comply with all 
 47.35  federal laws and regulations governing the food stamp program.  
 47.36  The commissioner shall review agency performance annually to 
 48.1   determine compliance with this paragraph. 
 48.2      (c) A person who commits any of the following acts has 
 48.3   violated section 256.98 or 609.821, or both, and is subject to 
 48.4   both the criminal and civil penalties provided under those 
 48.5   sections: 
 48.6      (1) obtains or attempts to obtain, or aids or abets any 
 48.7   person to obtain by means of a willfully false statement or 
 48.8   representation, or intentional concealment of a material fact, 
 48.9   food stamps to which the person is not entitled or in an amount 
 48.10  greater than that to which that person is entitled; or 
 48.11     (2) presents or causes to be presented, coupons for payment 
 48.12  or redemption knowing them to have been received, transferred or 
 48.13  used in a manner contrary to existing state or federal law; 
 48.14     (3) willfully uses, possesses, or transfers food stamp 
 48.15  coupons or authorization to purchase cards in any manner 
 48.16  contrary to existing state or federal law, rules, or 
 48.17  regulations; or 
 48.18     (4) buys or sells food stamp coupons, authorization to 
 48.19  purchase cards or other assistance transaction devices for cash 
 48.20  or consideration other than eligible food. 
 48.21     (d) A peace officer or welfare fraud investigator may 
 48.22  confiscate food stamps, authorization to purchase cards, or 
 48.23  other assistance transaction devices found in the possession of 
 48.24  any person who is neither a recipient of the food stamp program 
 48.25  nor otherwise authorized to possess and use such materials.  
 48.26  Confiscated property shall be disposed of as the commissioner 
 48.27  may direct and consistent with state and federal food stamp 
 48.28  law.  The confiscated property must be retained for a period of 
 48.29  not less than 30 days to allow any affected person to appeal the 
 48.30  confiscation under section 256.045. 
 48.31     (e) Food stamp claims which are due in whole or in part to 
 48.32  client error shall be established by the county agency for a 
 48.33  period of six years from the date of any resultant overpayment.  
 48.34     (f) With regard to the federal tax revenue offset program 
 48.35  only, recovery incentives authorized by the federal food and 
 48.36  nutrition service shall be retained at the rate of 50 percent by 
 49.1   the state agency and 50 percent by the certifying county agency. 
 49.2      Sec. 9.  Minnesota Statutes 1994, section 524.6-207, is 
 49.3   amended to read: 
 49.4      524.6-207 [RIGHTS OF CREDITORS.] 
 49.5      No multiple-party account will be effective against an 
 49.6   estate of a deceased party to transfer to a survivor sums needed 
 49.7   to pay debts, taxes, and expenses of administration, including 
 49.8   statutory allowances to the surviving spouse, minor children and 
 49.9   dependent children, if other assets of the estate are 
 49.10  insufficient, to the extent the deceased party is the source of 
 49.11  the funds or beneficial owner.  A surviving party or P.O.D. 
 49.12  payee who receives payment from a multiple-party account after 
 49.13  the death of a deceased party shall be liable to account to the 
 49.14  deceased party's personal representative or a county agency with 
 49.15  a claim authorized by section 256B.15 for amounts the decedent 
 49.16  owned beneficially immediately before death to the extent 
 49.17  necessary to discharge any such claims and charges remaining 
 49.18  unpaid after the application of the assets of the decedent's 
 49.19  estate.  No proceeding to assert this liability shall be 
 49.20  commenced unless the personal representative or a county agency 
 49.21  with a claim authorized by section 256B.15 has received a 
 49.22  written demand by a surviving spouse, a creditor or one acting 
 49.23  for a minor dependent child of the decedent, and no proceeding 
 49.24  shall be commenced later than two years following the death of 
 49.25  the decedent.  Sums recovered by the personal representative or 
 49.26  a county agency with a claim authorized by section 256B.15 shall 
 49.27  be administered as part of the decedent's estate.  This section 
 49.28  shall not affect the right of a financial institution to make 
 49.29  payment on multiple-party accounts according to the terms 
 49.30  thereof, or make it liable to the estate of a deceased party 
 49.31  unless, before payment, the institution has been served with 
 49.32  process in a proceeding by the personal representative or a 
 49.33  county agency with a claim authorized by section 256B.15.  
 49.34     Sec. 10.  Minnesota Statutes 1994, section 550.37, 
 49.35  subdivision 14, is amended to read: 
 49.36     Subd. 14.  [PUBLIC ASSISTANCE.] All relief based on need, 
 50.1   and the earnings or salary of a person who is a recipient of 
 50.2   relief based on need, shall be exempt from all claims of 
 50.3   creditors including any contractual setoff or security interest 
 50.4   asserted by a financial institution.  For the purposes of this 
 50.5   chapter, relief based on need includes AFDC, general assistance 
 50.6   medical care, supplemental security income, medical assistance, 
 50.7   Minnesota supplemental assistance, and general assistance.  The 
 50.8   salary or earnings of any debtor who is or has been ~~a~~ an 
 50.9   eligible recipient of relief based on need, or an inmate of a 
 50.10  correctional institution shall, upon the debtor's return to 
 50.11  private employment or farming after having been ~~a~~ an eligible 
 50.12  recipient of relief based on need, or an inmate of a 
 50.13  correctional institution, be exempt from attachment, 
 50.14  garnishment, or levy of execution for a period of six months 
 50.15  after the debtor's return to employment or farming and after all 
 50.16  public assistance for which eligibility existed has been 
 50.17  terminated.  The exemption provisions contained in this 
 50.18  subdivision also apply for 60 days after deposit in any 
 50.19  financial institution, whether in a single or joint account.  In 
 50.20  tracing the funds, the first-in first-out method of accounting 
 50.21  shall be used.  The burden of establishing that funds are exempt 
 50.22  rests upon the debtor.  Agencies distributing relief and the 
 50.23  correctional institutions shall, at the request of creditors, 
 50.24  inform them whether or not any debtor has been ~~a~~ an eligible 
 50.25  recipient of relief based on need, or an inmate of a 
 50.26  correctional institution, within the preceding six months. 
 50.27     Sec. 11.  [EFFECTIVE DATE.] 
 50.28     Sections 1 to 10 (256.034, subdivision 1; 256.73, 
 50.29  subdivision 2; 256.98, subdivisions 1 and 8; 256.983, 
 50.30  subdivisions 4 and 5; 256.986; 393.07, subdivision 10; 
 50.31  524.6-207; 550.37, subdivision 14) are effective July 1, 1995. 
 50.32                             ARTICLE 4 
 50.33                           CHILD SUPPORT 
 50.34     Section 1.  Minnesota Statutes 1994, section 256.978, 
 50.35  subdivision 1, is amended to read: 
 50.36     Subdivision 1.  [REQUEST FOR INFORMATION.] The commissioner 
 51.1   of human services, in order to locate a person to establish 
 51.2   paternity, child support, or to enforce a child support 
 51.3   obligation in arrears, may request information reasonably 
 51.4   necessary to the inquiry from the records of all departments, 
 51.5   boards, bureaus, or other agencies of this state, which shall, 
 51.6   notwithstanding the provisions of section 268.12, subdivision 
 51.7   12, or any other law to the contrary, provide the information 
 51.8   necessary for this purpose.  Employers, utility companies, 
 51.9   insurance companies, financial institutions, and labor 
 51.10  associations doing business in this state shall provide 
 51.11  information as provided under subdivision 2 upon written request 
 51.12  by an agency responsible for child support enforcement regarding 
 51.13  individuals owing or allegedly owing a duty to support within 30 
 51.14  days of the receipt of the written request made by the public 
 51.15  authority.  Information requested and used or transmitted by the 
 51.16  commissioner pursuant to the authority conferred by this section 
 51.17  may be made available only to public officials and agencies of 
 51.18  this state and its political subdivisions and other states of 
 51.19  the union and their political subdivisions who are seeking to 
 51.20  enforce the support liability of parents or to locate parents.  
 51.21  The commissioner may not release the information to an agency or 
 51.22  political subdivision of another state unless the agency or 
 51.23  political subdivision is directed to maintain the data 
 51.24  consistent with its classification in this state.  Information 
 51.25  obtained under this section may not be released except to the 
 51.26  extent necessary for the administration of the child support 
 51.27  enforcement program or when otherwise authorized by law.  
 51.28     Sec. 2.  Minnesota Statutes 1994, section 518.171, 
 51.29  subdivision 2a, is amended to read: 
 51.30     Subd. 2a.  [EMPLOYER AND OBLIGOR ~~NOTICE~~ RESPONSIBILITY.] ~~If~~ 
 51.31  ~~an individual is hired for employment, the employer shall~~ 
 51.32  ~~request that the individual disclose whether the individual has~~ 
 51.33  ~~court-ordered medical support obligations that are required by~~ 
 51.34  ~~law to be withheld from income and the terms of the court order,~~ 
 51.35  ~~if any.  The employer shall request that the individual disclose~~ 
 51.36  ~~whether the individual has been ordered by a court to provide~~ 
 52.1   ~~health and dental dependent insurance coverage.  The~~ An 
 52.2   individual shall disclose ~~this information~~ at the time of 
 52.3   hiring~~.  If an individual discloses that~~ if medical support is 
 52.4   required to be withheld~~, the~~.  If an employee discloses that 
 52.5   medical support is required to be withheld, an employer shall 
 52.6   begin withholding according to the terms of the order and 
 52.7   pursuant to section 518.611, subdivision 8.  If an individual 
 52.8   discloses an obligation to obtain health and dental dependent 
 52.9   insurance coverage and coverage is available through the 
 52.10  employer, the employer shall make all application processes 
 52.11  known to the individual upon hiring and enroll the employee and 
 52.12  dependent in the plan pursuant to subdivision 3. 
 52.13     Sec. 3.  [518.5512] [EMPLOYEE REGISTRY; DEFINITIONS.] 
 52.14     Subdivision 1.  [SCOPE.] For the purposes of an employee 
 52.15  registry established under sections 518.5512 to 518.5514, the 
 52.16  following terms have the meanings given. 
 52.17     Subd. 2.  [COMMISSIONER.] "Commissioner" means the 
 52.18  commissioner of human services. 
 52.19     Subd. 3.  [COMPENSATION.] "Compensation" means payment owed 
 52.20  by the payor of funds for labor or services rendered by an 
 52.21  employee or contractor. 
 52.22     Subd. 4.  [CONTRACTOR.] "Contractor" means a person who is 
 52.23  hired for compensation by a Minnesota business and is not 
 52.24  defined as an employee.  An independent contractor is a person 
 52.25  who contracts with another to provide a service, and is not 
 52.26  controlled by the other, nor subject to the other's right to 
 52.27  control the person's conduct in the performance of the 
 52.28  undertaking. 
 52.29     Subd. 5.  [DATE OF HIRE.] "Date of hire" means the earlier 
 52.30  of: 
 52.31     (1) the first day for which the employee or contractor is 
 52.32  owed compensation by the payor of funds; or 
 52.33     (2) the first day that an employee or contractor reports to 
 52.34  work or performs labor or services for the payor of funds. 
 52.35     Subd. 6.  [DATE OF REHIRE.] "Date of rehire" means the 
 52.36  earlier of: 
 53.1      (1) the first day for which the employee or contractor is 
 53.2   owed compensation by the payor of funds following an unpaid 
 53.3   absence of a minimum of six consecutive weeks; or 
 53.4      (2) the first day that an employee or contractor reports to 
 53.5   work or performs labor or services for the payor of funds 
 53.6   following an unpaid absence of a minimum of six consecutive 
 53.7   weeks. 
 53.8      Subd. 7.  [EMPLOYEE.] "Employee" means a person who is 
 53.9   employed by a Minnesota employer. 
 53.10     Subd. 8.  [EMPLOYER.] "Employer" means an employing entity 
 53.11  that employs an employee for compensation and withholds taxes 
 53.12  from the employee's compensation. 
 53.13     Subd. 9.  [PAYOR OF FUNDS.] "Payor of funds" for the 
 53.14  purposes of this section, means an employer, or a person or an 
 53.15  entity who engages a contractor for compensation. 
 53.16     Sec. 4.  [518.5513] [REPORTING REQUIREMENTS.] 
 53.17     Subdivision 1.  [EMPLOYER REPORTING REQUIREMENTS.] The 
 53.18  commissioner shall establish and maintain a centralized employee 
 53.19  registry for the purpose of receiving and maintaining 
 53.20  information from employers on newly hired or rehired employees. 
 53.21     (a) An employer who hires or rehires an employee shall 
 53.22  report all of the following to the employee registry within 14 
 53.23  calendar days of the hiring or rehiring of an employee: 
 53.24     (1) the employer's name, address, and federal 
 53.25  identification number; 
 53.26     (2) the employee's name, address, social security number, 
 53.27  and date of birth; and 
 53.28     (3) whether the payroll of the employer is prepared at the 
 53.29  address of the employer or at a separate location, and the 
 53.30  address of the separate location, if applicable. 
 53.31     (b) Employers shall report to the commissioner by: 
 53.32     (1) submitting a copy of the employee's W-4 form by mail or 
 53.33  telefax; 
 53.34     (2) electronic media in a format approved by the 
 53.35  commissioner in advance of submission; or 
 53.36     (3) by any other means authorized by the department. 
 54.1      (c) Information reported under this section shall be 
 54.2   maintained as provided in section 518.5514. 
 54.3      (d) An employer who fails to report as required under this 
 54.4   section is subject to penalties as provided in subdivision 3. 
 54.5      Subd. 2.  [PAYOR OF FUNDS REPORTING REQUIREMENTS.] (a) The 
 54.6   commissioner shall establish a centralized employee registry for 
 54.7   the purpose of receiving and maintaining information from payors 
 54.8   of funds on newly hired or rehired contractors. 
 54.9      (b) A payor of funds who engages a contractor shall report 
 54.10  all of the following to the registry within 14 days of hiring or 
 54.11  rehiring the contractor: 
 54.12     (1) the name, address, and federal identification number of 
 54.13  the payor of funds; and 
 54.14     (2) the contractor's name, address, social security number, 
 54.15  and if known, the contractor's date of birth. 
 54.16     (c) A payor of funds shall report the information required 
 54.17  under paragraph (b), by any written or electronic means 
 54.18  authorized by the commissioner. 
 54.19     (d) Information reported under this section shall be 
 54.20  maintained as provided in section 518.5514. 
 54.21     (e) A payor of funds who fails to report is subject to 
 54.22  penalties as provided in subdivision 3. 
 54.23     Subd. 3.  [PENALTIES.] An employer or payor of funds who 
 54.24  fails to report as required under this section shall be given a 
 54.25  written warning from the commissioner for the first violation.  
 54.26  A second violation shall be subject to a civil penalty of up to 
 54.27  $50.  Further violations shall be subject to a civil penalty of 
 54.28  up to $500.  All violations within a single month shall be 
 54.29  considered a single violation for purposes of assessing a 
 54.30  penalty.  Penalties may be imposed and collected by the 
 54.31  department. 
 54.32     Sec. 5.  [518.5514] [USAGE OF EMPLOYEE REGISTRY.] 
 54.33     (a) The records of the employee registry are confidential 
 54.34  records under chapter 13 and may be accessed by county, state, 
 54.35  or federal agencies as provided in this section.  When a county, 
 54.36  state, or federal agency accesses information in the registry, 
 55.1   the agency may use the information to update its own records.  
 55.2   Access to and use of the information contained in the registry 
 55.3   shall be limited to the following: 
 55.4      (1) the county, state, or federal public authority 
 55.5   responsible for the administration of the child support 
 55.6   enforcement program for use related to locating, establishing, 
 55.7   and enforcing child and medical support obligations and other 
 55.8   services; 
 55.9      (2) state agencies which utilize information from payors of 
 55.10  funds for determination of eligibility or calculation of 
 55.11  payments for benefit or entitlement payments; and 
 55.12     (3) state agencies which utilize payors of funds 
 55.13  information for recoupment of debts to the state. 
 55.14     (b) The registry shall maintain the information received 
 55.15  from payors of funds for a period up to six months. 
 55.16     Sec. 6.  [518.5515] [COMMISSIONER'S DUTY.] 
 55.17     The commissioner is authorized to contract for services to 
 55.18  carry out the purposes of sections 518.5512 to 518.5514. 
 55.19     The commissioner may collect fees from county, state, or 
 55.20  federal agencies for the purposes of section 518.5514. 
 55.21     Sec. 7.  Minnesota Statutes 1994, section 518.575, is 
 55.22  amended to read: 
 55.23     518.575 [PUBLICATION OF NAMES OF DELINQUENT CHILD SUPPORT 
 55.24  OBLIGORS.] 
 55.25     ~~Every three months~~ At least once each year, the ~~department~~ 
 55.26  commissioner of human services shall publish ~~in the newspaper of~~ 
 55.27  ~~widest circulation in each county~~ a list of the names and last 
 55.28  known addresses of each person who (1) is a child support 
 55.29  obligor, (2) ~~resides in the county, (3)~~ is at least $3,000 in 
 55.30  arrears, and ~~(4)~~ (3) has not made a child support payment~~, or~~ 
 55.31  ~~has made only partial child support payments that total less~~ 
 55.32  ~~than 25 percent of the amount of child support owed, for the~~ 
 55.33  ~~last 12 months including~~ in the preceding six months, excluding 
 55.34  any payments made through the interception of federal or state 
 55.35  taxes.  ~~The rate charged for publication shall be the~~ 
 55.36  ~~newspaper's lowest classified display rate, including all~~ 
 56.1   ~~available discounts.~~  The commissioner of human services shall 
 56.2   determine the manner of publication.  An obligor's name may not 
 56.3   be published if the obligor claims in writing, and 
 56.4   the ~~department~~ commissioner of human services determines, there 
 56.5   is good cause for the nonpayment of child support.  Good cause 
 56.6   includes the following:  (i) there is a mistake in the obligor's 
 56.7   identity or the amount of the obligor's arrears; (ii) the 
 56.8   obligor receives public assistance under sections 256.031 to 
 56.9   256.0361 and 256.72 to 256.87; or (iii) the obligor has filed 
 56.10  bankruptcy, arrears are reserved by the court, or there is a 
 56.11  pending legal action concerning the unpaid child support.  The 
 56.12  list must be based on the best information available to the 
 56.13  state at the time of publication. 
 56.14     Before publishing the name of the obligor, the department 
 56.15  of human services shall send a notice to the obligor's last 
 56.16  known address which states the department's intention to publish 
 56.17  the obligor's name and the amount of child support the obligor 
 56.18  owes.  The notice must also provide an opportunity to have the 
 56.19  obligor's name removed from the list by paying the arrearage or 
 56.20  by entering into an agreement to pay the arrearage, and the 
 56.21  final date when the payment or agreement can be accepted. 
 56.22     The department of human services shall insert with the 
 56.23  notices sent to the obligee, a notice stating the intent to 
 56.24  publish the obligor's name, and the criteria used to determine 
 56.25  the publication of the obligor's name. 
 56.26     Sec. 8.  Minnesota Statutes 1994, section 518.611, 
 56.27  subdivision 1, is amended to read: 
 56.28     Subdivision 1.  [ORDER.] Whenever an obligation for support 
 56.29  of a dependent child or maintenance of a spouse, or both, is 
 56.30  determined and ordered by a court of this state, the amount of 
 56.31  child support or maintenance as determined by court order must 
 56.32  be withheld from the income, regardless of source, of the person 
 56.33  obligated to pay the support or maintenance, and paid through 
 56.34  the public authority.  The court shall provide a copy of any 
 56.35  order where withholding is ordered to the public authority 
 56.36  responsible for support collections.  Every order for 
 57.1   maintenance or support must include: 
 57.2      (1) the obligor's social security number and date of birth 
 57.3   and the name and address of the obligor's employer or other 
 57.4   payor of funds; and 
 57.5      (2) provisions for the obligor to keep the public authority 
 57.6   informed of the name and address of the obligor's current 
 57.7   employer or payor of funds, and whether the obligor has access 
 57.8   to employment-related health insurance coverage and, if so, the 
 57.9   health insurance policy information. 
 57.10     Sec. 9.  Minnesota Statutes 1994, section 518.611, 
 57.11  subdivision 2, is amended to read: 
 57.12     Subd. 2.  [CONDITIONS OF INCOME WITHHOLDING.] (a) 
 57.13  Withholding shall result when:  
 57.14     (1) the obligor requests it in writing to the public 
 57.15  authority; 
 57.16     (2) the custodial parent requests it by making a motion to 
 57.17  the court; or 
 57.18     (3) the obligor fails to make the maintenance or support 
 57.19  payments, and the following conditions are met:  
 57.20     (i) the obligor is at least 30 days in arrears; 
 57.21     (ii) the obligee or the public authority serves written 
 57.22  notice of income withholding, showing arrearage, on the obligor 
 57.23  at least 15 days before service of the notice of income 
 57.24  withholding and a copy of the court's order on the payor of 
 57.25  funds; 
 57.26     (iii) within the 15-day period, the obligor fails to move 
 57.27  the court to deny withholding on the grounds that an arrearage 
 57.28  of at least 30 days does not exist as of the date of the notice 
 57.29  of income withholding, or on other grounds limited to mistakes 
 57.30  of fact, and, ex parte, to stay service on the payor of funds 
 57.31  until the motion to deny withholding is heard; 
 57.32     (iv) the obligee or the public authority ~~serves a copy of~~ 
 57.33  ~~the notice of income withholding, a copy of the court's order or~~ 
 57.34  ~~notice of order,~~ sends the payor of funds a notice of the 
 57.35  withholding requirements and the provisions of this section ~~on~~ 
 57.36  ~~the payor of funds~~; and 
 58.1      (v) the obligee serves on the public authority a copy of 
 58.2   the notice of income withholding, a copy of the court's order, 
 58.3   an application, and the fee to use the public authority's 
 58.4   collection services.  
 58.5   For those persons not applying for the public authority's IV-D 
 58.6   services, a monthly service fee of $15 must be charged to the 
 58.7   obligor in addition to the amount of child support ordered by 
 58.8   the court and withheld through automatic income withholding, or 
 58.9   for persons applying for the public authority's IV-D services, 
 58.10  the service fee under section 518.551, subdivision 7, applies.  
 58.11  The county agency shall explain to affected persons the services 
 58.12  available and encourage the applicant to apply for IV-D services.
 58.13     (b) ~~To pay the arrearage specified in the notice of income~~ 
 58.14  ~~withholding,~~ The employer or payor of funds shall withhold from 
 58.15  the obligor's income an additional amount equal to 20 percent of 
 58.16  the monthly child support or maintenance obligation until the 
 58.17  arrearage is paid. 
 58.18     (c) The obligor may move the court, under section 518.64, 
 58.19  to modify the order respecting the amount of maintenance or 
 58.20  support. 
 58.21     (d) Every order for support or maintenance shall provide 
 58.22  for a conspicuous notice of the provisions of this subdivision 
 58.23  that complies with section 518.68, subdivision 2.  An order 
 58.24  without this notice remains subject to this subdivision. 
 58.25     (e) Absent a court order to the contrary, if an arrearage 
 58.26  exists at the time an order for ongoing support or maintenance 
 58.27  would otherwise terminate, income withholding shall continue in 
 58.28  effect in an amount equal to the former support or maintenance 
 58.29  obligation plus an additional amount equal to 20 percent of the 
 58.30  monthly child support obligation, until all arrears have been 
 58.31  paid in full. 
 58.32     Sec. 10.  Minnesota Statutes 1994, section 518.611, 
 58.33  subdivision 8a, is amended to read: 
 58.34     Subd. 8a.  [LUMP SUM PAYMENTS.] ~~(a) Upon the~~ Before 
 58.35  transmittal ~~of the last reimbursement payment~~ to the ~~employee,~~ 
 58.36  ~~where~~ obligor of a lump sum payment including, but not limited 
 59.1   to, severance pay, accumulated sick pay ~~or~~, vacation pay ~~is paid~~ 
 59.2   ~~upon termination of employment, and where the employee is in~~ 
 59.3   ~~arrears in making court ordered child support payments, the~~ 
 59.4   ~~employer shall withhold an amount which is the lesser of (1) the~~ 
 59.5   ~~amount in arrears or (2) that portion of the arrearages which is~~ 
 59.6   ~~the product of the obligor's monthly court ordered support~~ 
 59.7   ~~amount multiplied by the number of months of net income that the~~ 
 59.8   ~~lump sum payment represents.~~  
 59.9      ~~(b)~~ bonuses, commissions, or other pay or benefits, an 
 59.10  employer, trustee, or other payor of funds who has been served 
 59.11  with a notice of income withholding under subdivision 2 or 
 59.12  section 518.613 must:  
 59.13     (1) notify the public authority of any lump sum payment of 
 59.14  $500 or more that is to be paid to the obligor; 
 59.15     (2) hold the lump sum payment for 30 days after the date on 
 59.16  which the lump sum payment would otherwise have been paid to the 
 59.17  obligor, notwithstanding sections 181.08, 181.101, 181.11, 
 59.18  181.13, and 181.145; and 
 59.19     (3) upon order of the court, pay any specified amount of 
 59.20  the lump sum payment to the public authority for future support~~.~~ 
 59.21  or reimbursement of support judgment, judgments, or arrearages; 
 59.22  or 
 59.23     (4) upon service by United States mail of a sworn affidavit 
 59.24  from the public authority or a court order stating: 
 59.25     (i) that a judgment entered pursuant to section 548.091, 
 59.26  subdivision 1a, exists against the obligor, or that other 
 59.27  support arrearages exist; 
 59.28     (ii) that a portion of the judgment, judgments, or 
 59.29  arrearages remains unpaid; and 
 59.30     (iii) the current balance of the judgment, judgments, or 
 59.31  arrearages, the payor of funds shall pay to the public authority 
 59.32  the lesser of the amount of the lump sum payment or the total 
 59.33  amount of judgments plus arrearages as stated in affidavit or 
 59.34  court order subject to the limits imposed under the consumer 
 59.35  credit protection act. 
 59.36     Sec. 11.  Minnesota Statutes 1994, section 518.613, 
 60.1   subdivision 1, is amended to read: 
 60.2      Subdivision 1.  [GENERAL.] Notwithstanding any provision of 
 60.3   section 518.611, subdivision 2 or 3, to the contrary, whenever 
 60.4   an obligation for child support or maintenance, enforced by the 
 60.5   public authority, is initially determined and ordered or 
 60.6   modified by the court ~~in a county in which this section applies~~, 
 60.7   the amount of child support or maintenance ordered by the court 
 60.8   and any fees assessed by the public authority responsible for 
 60.9   child support enforcement must be withheld from the income and 
 60.10  forwarded to the public authority, regardless of the source of 
 60.11  income, of the person obligated to pay the support. 
 60.12     Sec. 12.  Minnesota Statutes 1994, section 518.613, 
 60.13  subdivision 2, is amended to read: 
 60.14     Subd. 2.  [ORDER; COLLECTION SERVICES.] Every order for 
 60.15  child support must include the obligor's social security number 
 60.16  and date of birth and the name and address of the obligor's 
 60.17  employer or other payor of funds.  In addition, every order must 
 60.18  contain provisions requiring the obligor to keep the public 
 60.19  authority informed of the name and address of the obligor's 
 60.20  current employer, or other payor of funds and whether the 
 60.21  obligor has access to employment-related health insurance 
 60.22  coverage and, if so, the health insurance policy information.  
 60.23  Upon entry of the order for support or maintenance, the court 
 60.24  shall ~~mail a copy of the court's automatic income withholding~~ 
 60.25  ~~order and the provisions of section 518.611 and this section to~~ 
 60.26  ~~the obligor's employer or other payor of funds and~~ provide a 
 60.27  copy of the withholding order to the public authority 
 60.28  responsible for child support enforcement.  An obligee who is 
 60.29  not a recipient of public assistance must decide to either apply 
 60.30  for the IV-D collection services of the public authority or 
 60.31  obtain income withholding only services when an order for 
 60.32  support is entered unless the requirements of this section have 
 60.33  been waived under subdivision 7.  The supreme court shall 
 60.34  develop a standard automatic income withholding form to be used 
 60.35  by all Minnesota courts.  This form shall be made a part of any 
 60.36  order for support or decree by reference.  
 61.1      Sec. 13.  Minnesota Statutes 1994, section 518.614, 
 61.2   subdivision 1, is amended to read: 
 61.3      Subdivision 1.  [STAY OF SERVICE.] If the court finds there 
 61.4   is no arrearage in child support or maintenance as of the date 
 61.5   of the court hearing, the court shall stay service of the order 
 61.6   under section 518.613, subdivision 2, ~~in a county in which that~~ 
 61.7   ~~section applies~~ if the obligor establishes a savings account for 
 61.8   a sum equal to two months of the monthly child support or 
 61.9   maintenance obligation and provides proof of the establishment 
 61.10  to the court and the public authority on or before the day of 
 61.11  the court hearing determining the obligation.  This sum must be 
 61.12  held in a financial institution in an interest-bearing account 
 61.13  with only the public authority authorized as drawer of funds.  
 61.14  Proof of the establishment must include the financial 
 61.15  institution name and address, account number, and the amount of 
 61.16  deposit. 
 61.17     Sec. 14.  [518.5851] [CHILD SUPPORT PAYMENT CENTER; 
 61.18  DEFINITIONS.] 
 61.19     Subdivision 1.  [SCOPE.] For the purposes of a child 
 61.20  support center established under sections 518.5851 to 518.5853, 
 61.21  the following terms have the meanings given. 
 61.22     Subd. 2.  [LOCAL CHILD SUPPORT AGENCY.] "Local child 
 61.23  support agency" means the entity, at the county level, 
 61.24  responsible for providing child support enforcement services. 
 61.25     Subd. 3.  [PAYMENT.] "Payment" means the payment of child 
 61.26  support, medical support, maintenance, and related payments 
 61.27  required by order of a tribunal, voluntary support, or statutory 
 61.28  fees. 
 61.29     Subd. 4.  [TRIBUNAL.] "Tribunal" has the meaning given in 
 61.30  section 518C.101. 
 61.31     Sec. 15.  [518.5852] [CENTRAL COLLECTIONS UNIT.] 
 61.32     The commissioner of human services is directed to create 
 61.33  and maintain a central collections unit for the purpose of 
 61.34  receiving, processing, and disbursing payments, and for 
 61.35  maintaining a record of payments, in all cases in which: 
 61.36     (1) the state or county is a party; 
 62.1      (2) the state or county provides child support enforcement 
 62.2   services to a party; or 
 62.3      (3) payment is collected through income withholding. 
 62.4      The commissioner of human services is authorized to 
 62.5   contract for services to carry out these provisions. 
 62.6      Sec. 16.  [518.5853] [MANDATORY PAYMENT OF OBLIGATIONS TO 
 62.7   CENTRAL COLLECTIONS UNIT.] 
 62.8      Subdivision 1.  [LOCATION OF PAYMENT.] All payments shall 
 62.9   be made to the central collections unit in section 518.5852. 
 62.10     Subd. 2.  [AGENCY DESIGNATION OF LOCATION.] Each local 
 62.11  child support agency shall provide a location within the agency 
 62.12  to receive payments.  A local agency receiving a payment shall 
 62.13  transmit the funds to the central collections unit within one 
 62.14  working day of receipt of the payment. 
 62.15     Subd. 3.  [INCENTIVES.] Notwithstanding any rule to the 
 62.16  contrary, incentives shall be paid to the county providing 
 62.17  services and maintaining the case to which the payment is 
 62.18  applied.  Incentive payments awarded for the collection of child 
 62.19  support shall be based solely upon payments processed by the 
 62.20  central collections unit in section 518.5852.  
 62.21     Subd. 4.  [ELECTRONIC TRANSFER OF FUNDS.] The central 
 62.22  collections unit may engage in the electronic transfer of funds 
 62.23  for the receipt and disbursement of funds. 
 62.24     Subd. 5.  [REQUIRED CONTENT OF ORDER.] A tribunal issuing 
 62.25  an order that establishes or modifies a payment shall issue an 
 62.26  income withholding order in conformity with section 518.613, 
 62.27  subdivision 2.  The automatic income withholding order shall 
 62.28  include the name of the obligor, the obligor's social security 
 62.29  number, the obligor's date of birth, and the name and address of 
 62.30  the obligor's employer.  Both the street mailing address and the 
 62.31  electronic mail address for the central collections unit shall 
 62.32  be included in each automatic income withholding order issued by 
 62.33  a tribunal. 
 62.34     Subd. 6.  [TRANSMITTAL OF ORDER TO THE LOCAL AGENCY BY THE 
 62.35  TRIBUNAL.] The tribunal shall transmit a copy of the order 
 62.36  establishing or modifying the payment, and a copy of the 
 63.1   automatic income withholding order, to the local child support 
 63.2   agency within two working days of the approval of the order by 
 63.3   the judge or administrative law judge, or other person or entity 
 63.4   authorized to sign the automatic withholding order. 
 63.5      Subd. 7.  [TRANSMITTAL OF FUNDS FROM THE OBLIGOR OR PAYOR 
 63.6   OF FUNDS TO THE CENTRAL COLLECTIONS UNIT.] The obligor or other 
 63.7   payor of funds shall identify the obligor on the check or 
 63.8   remittance by name, payor number, and social security number, 
 63.9   and shall comply with section 518.611, subdivision 4. 
 63.10     Subd. 8.  [SANCTION FOR CHECKS DRAWN ON INSUFFICIENT 
 63.11  FUNDS.] A notice shall be directed to any person or entity 
 63.12  submitting a check drawn on insufficient funds stating that 
 63.13  future payment must be paid by cash or certified funds.  The 
 63.14  central collections unit and the local child support agency are 
 63.15  authorized to refuse a check from a person or entity that has 
 63.16  been given notice that payments must be in cash or certified 
 63.17  funds. 
 63.18     Subd. 9.  [ADMISSIBILITY OF PAYMENT RECORDS.] A copy of the 
 63.19  record of payments maintained by the central collections unit in 
 63.20  section 518.5852 shall be admissible evidence in all tribunals 
 63.21  as proof of payments made through the central collections unit 
 63.22  without the need of testimony to prove authenticity. 
 63.23     Subd. 10.  [TRANSITION PROVISIONS.] (a) The commissioner of 
 63.24  human services shall develop a plan for the implementation of 
 63.25  the central collections unit.  The plan shall require that 
 63.26  payments be redirected to the central collections unit.  
 63.27  Payments may be redirected in groups according to county of 
 63.28  origin, county of payment, method of payment, type of case, or 
 63.29  any other distinguishing factor designated by the commissioner. 
 63.30     (b) Notice that payments must be made to the central 
 63.31  collections unit shall be provided to the obligor, and to the 
 63.32  payor of funds within 30 days prior to the redirection of 
 63.33  payments to the central collections unit.  After the notice has 
 63.34  been provided to the obligor or payor of funds, mailed payments 
 63.35  received by a local child support agency shall be forwarded to 
 63.36  the central collections unit.  A notice shall be sent to the 
 64.1   obligor or payor of funds stating that payment application may 
 64.2   be delayed and provide directions to submit future payment to 
 64.3   the central collections unit. 
 64.4      Sec. 17.  Minnesota Statutes 1994, section 518C.310, is 
 64.5   amended to read: 
 64.6      518C.310 [DUTIES OF STATE INFORMATION AGENCY.] 
 64.7      (a) The unit within the department of human services that 
 64.8   receives and disseminates incoming interstate actions under 
 64.9   title IV-D of the Social Security Act from section 518C.02, 
 64.10  subdivision 1a, is the state information agency under this 
 64.11  chapter. 
 64.12     (b) The state information agency shall: 
 64.13     (1) compile and maintain a current list, including 
 64.14  addresses, of the tribunals in this state which have 
 64.15  jurisdiction under this chapter and any support enforcement 
 64.16  agencies in this state and transmit a copy to the state 
 64.17  information agency of every other state; 
 64.18     (2) maintain a register of tribunals and support 
 64.19  enforcement agencies received from other states; 
 64.20     (3) forward to the appropriate tribunal in the place in 
 64.21  this state in which the individual obligee or the obligor 
 64.22  resides, or in which the obligor's property is believed to be 
 64.23  located, all documents concerning a proceeding under this 
 64.24  chapter received from an initiating tribunal or the state 
 64.25  information agency of the initiating state; and 
 64.26     (4) obtain information concerning the location of the 
 64.27  obligor and the obligor's property within this state not exempt 
 64.28  from execution, by such means as postal verification and federal 
 64.29  or state locator services, examination of telephone directories, 
 64.30  requests for the obligor's address from employers, and 
 64.31  examination of governmental records, including, to the extent 
 64.32  not prohibited by other law, those relating to real property, 
 64.33  vital statistics, law enforcement, taxation, motor vehicles, 
 64.34  driver's licenses, and social security. 
 64.35     (5) determine which foreign jurisdictions and Indian tribes 
 64.36  have substantially similar procedures for issuance and 
 65.1   enforcement of support orders.  The state information agency 
 65.2   will compile and maintain a list, including addresses, of all 
 65.3   such foreign jurisdictions and Indian tribes.  The state 
 65.4   information agency will make this list available to all state 
 65.5   tribunals and all support enforcement agencies. 
 65.6      Sec. 18.  Minnesota Statutes 1994, section 548.15, is 
 65.7   amended to read: 
 65.8      548.15 [DISCHARGE OF RECORD.] 
 65.9      Upon the satisfaction of a judgment~~, whether wholly or in~~ 
 65.10  ~~part, or as~~ relating to all or any of several defendants, the 
 65.11  court administrator shall enter the satisfaction in the judgment 
 65.12  roll, and note it, with its date, on the docket.  If the 
 65.13  docketing is upon a transcript from another county, the entry on 
 65.14  the docket is sufficient.  A judgment is satisfied when there is 
 65.15  filed with the court administrator: 
 65.16     (1) an execution satisfied, to the extent stated in the 
 65.17  sheriff's return on it; 
 65.18     (2) a certificate of satisfaction signed and acknowledged 
 65.19  by the judgment creditor; 
 65.20     (3) a like certificate signed and acknowledged by the 
 65.21  attorney of the creditor, unless that attorney's authority as 
 65.22  attorney has previously been revoked and an entry of the 
 65.23  revocation made upon the register; the authority of an attorney 
 65.24  to satisfy a judgment ceases at the end of six years from its 
 65.25  entry; 
 65.26     (4) an order of the court, made on motion, requiring the 
 65.27  execution of a certificate of satisfaction, or directing 
 65.28  satisfaction to be entered without it; 
 65.29     (5) where a judgment is docketed on transcript, a copy of 
 65.30  either of the foregoing documents, certified by the court 
 65.31  administrator in which the judgment was originally entered and 
 65.32  in which the originals were filed. 
 65.33     A satisfaction made in the name of a partnership is valid 
 65.34  if executed by a member of it while the partnership continues.  
 65.35  The judgment creditor, or the creditor's attorney while the 
 65.36  attorney's authority continues, may also satisfy a judgment of 
 66.1   record by a brief entry on the register, signed by the creditor 
 66.2   or the creditor's attorney and dated and witnessed by the court 
 66.3   administrator, who shall note the satisfaction on the margin of 
 66.4   the docket.  When a judgment is fully satisfied ~~otherwise~~ other 
 66.5   than by return of execution, the judgment creditor or the 
 66.6   creditor's attorney shall file a certificate of it with the 
 66.7   court administrator within ten days after the full satisfaction 
 66.8   or within 30 days of payment in full by check or other 
 66.9   noncertified funds. 
 66.10     Sec. 19.  Minnesota Statutes 1994, section 609.375, 
 66.11  subdivision 1, is amended to read: 
 66.12     Subdivision 1.  Whoever is legally obligated to provide 
 66.13  care and support to a spouse ~~who is in necessitous~~ 
 66.14  ~~circumstances,~~ or child, whether or not its custody has been 
 66.15  granted to another, and knowingly omits and fails without lawful 
 66.16  excuse to do so is guilty of a misdemeanor, and upon conviction 
 66.17  may be sentenced to imprisonment for not more than 90 days or to 
 66.18  payment of a fine of not more than $700, or both. 
 66.19     Sec. 20.  [REPEALER.] 
 66.20     Minnesota Statutes 1994, section 518.561, is repealed 
 66.21  effective January 1, 1997. 
 66.22     Sec. 21.  [EFFECTIVE DATE.] 
 66.23     Sections 1, 7 to 13, and 18 (256.978, subdivision 1; 
 66.24  518.575; 518.611, subdivision 1; 518.611, subdivision 2; 
 66.25  518.611, subdivision 8a; 518.613, subdivision 1; 518.613, 
 66.26  subdivision 2; 518.614, subdivision 1; and 548.15) are effective 
 66.27  July 1, 1995. 
 66.28     Sections 2 to 6 (518.171, subdivision 2a; 518.5512; 
 66.29  518.5513; 518.5514; and 518.5515), and 14 to 16 (518.5851; 
 66.30  518.5852; and 518.5853) are effective January 1, 1997. 
 66.31                             ARTICLE 5 
 66.32                    MENTAL HEALTH ADMINISTRATION
 66.33     Section 1.  Minnesota Statutes 1994, section 246.18, 
 66.34  subdivision 4, is amended to read: 
 66.35     Subd. 4.  [COLLECTIONS DEPOSITED IN THE GENERAL FUND.] 
 66.36  Except as provided in subdivisions 2 ~~and~~, 5, and 6, all receipts 
 67.1   from collection efforts for the regional treatment centers, 
 67.2   state nursing homes, and other state facilities as defined in 
 67.3   section 246.50, subdivision 3, must be deposited in the general 
 67.4   fund.  The commissioner shall ensure that the departmental 
 67.5   financial reporting systems and internal accounting procedures 
 67.6   comply with federal standards for reimbursement for program and 
 67.7   administrative expenditures and fulfill the purpose of this 
 67.8   paragraph. 
 67.9      Sec. 2.  Minnesota Statutes 1994, section 246.18, is 
 67.10  amended by adding a subdivision to read: 
 67.11     Subd. 6.  [COLLECTIONS DEDICATED.] Except for 
 67.12  state-operated programs and services funded through a direct 
 67.13  appropriation from the legislature, money received within the 
 67.14  regional treatment center system for the following 
 67.15  state-operated services is dedicated to the commissioner for the 
 67.16  provision of those services: 
 67.17     (1) community-based residential and day training and 
 67.18  habilitation services for mentally retarded persons; 
 67.19     (2) community health clinic services; 
 67.20     (3) accredited hospital outpatient department services; 
 67.21     (4) certified rehabilitation agency and rehabilitation 
 67.22  hospital services; or 
 67.23     (5) community-based transitional support services for 
 67.24  adults with serious and persistent mental illness. 
 67.25     These funds are reappropriated to the commissioner to 
 67.26  operate the services authorized, and any unexpended balances do 
 67.27  not cancel but are available until spent. 
 67.28     Sec. 3.  Minnesota Statutes 1994, section 246.23, 
 67.29  subdivision 2, is amended to read: 
 67.30     Subd. 2.  [CHEMICAL DEPENDENCY TREATMENT.] The commissioner 
 67.31  shall maintain a regionally based, state-administered system of 
 67.32  chemical dependency programs.  Counties may refer individuals 
 67.33  who are eligible for services under chapter 254B to the chemical 
 67.34  dependency units in the regional treatment centers.  A 15 
 67.35  percent county share of the per diem cost of treatment is 
 67.36  required for individuals served within the treatment capacity 
 68.1   funded by direct legislative appropriation.  By July 1, 1991, 
 68.2   the commissioner shall establish criteria for admission to the 
 68.3   chemical dependency units that will maximize federal and private 
 68.4   funding sources, fully utilize the regional treatment center 
 68.5   capacity, and make state-funded treatment capacity available to 
 68.6   counties on an equitable basis.  The admission criteria may be 
 68.7   adopted without rulemaking.  Existing rules governing placements 
 68.8   under chapters 254A and 254B do not apply to admissions to the 
 68.9   capacity funded by direct appropriation.  Private and 
 68.10  third-party collections and payments are appropriated to the 
 68.11  commissioner for the operation of the chemical dependency 
 68.12  units.  In addition to the chemical dependency treatment 
 68.13  capacity funded by direct legislative appropriation, the 
 68.14  regional treatment centers may provide treatment to additional 
 68.15  individuals whose treatment is paid for out of the chemical 
 68.16  dependency consolidated treatment fund under chapter 254B, in 
 68.17  which case placement rules adopted under chapter 254B 
 68.18  apply, those who are ineligible but committed for treatment 
 68.19  under chapter 253B as provided in section 254B.05, subdivision 
 68.20  4, or through other nonstate payment sources.  
 68.21     Sec. 4.  Minnesota Statutes 1994, section 246.56, is 
 68.22  amended by adding a subdivision to read: 
 68.23     Subd. 3.  The commissioner of human services need not 
 68.24  include indirect costs as defined in section 16A.127 in work 
 68.25  activity contracts for patients of the regional treatment 
 68.26  centers, and need not reimburse the general fund for indirect 
 68.27  costs related to work activity programs. 
 68.28     Sec. 5.  Minnesota Statutes 1994, section 254B.05, 
 68.29  subdivision 4, is amended to read: 
 68.30     Subd. 4.  [REGIONAL TREATMENT CENTERS.] Regional treatment 
 68.31  center chemical dependency treatment units are eligible 
 68.32  vendors.  The commissioner may expand the capacity of chemical 
 68.33  dependency treatment units beyond the capacity funded by direct 
 68.34  legislative appropriation to serve individuals who are referred 
 68.35  for treatment by counties and whose treatment will be paid for 
 68.36  with a county's allocation under section 254B.02 or other 
 69.1   funding sources.  Notwithstanding the provisions of sections 
 69.2   254B.03 to 254B.041, payment for any person committed by a 
 69.3   county to a regional treatment center under chapter 253B for 
 69.4   chemical dependency treatment and determined to be ineligible 
 69.5   under the chemical dependency consolidated treatment fund, shall 
 69.6   become the responsibility of the county. 
 69.7                              ARTICLE 6 
 69.8             HOME HEALTH CARE; GROUP RESIDENTIAL HOUSING 
 69.9      Section 1.  Minnesota Statutes 1994, section 256B.0627, 
 69.10  subdivision 1, is amended to read: 
 69.11     Subdivision 1.  [DEFINITION.] (a) "Home care services" 
 69.12  means a health service, determined by the commissioner as 
 69.13  medically necessary, that is ordered by a physician and 
 69.14  documented in a care plan that is reviewed by the physician at 
 69.15  least once every 60 days for the provision of home health 
 69.16  services, or private duty nursing, or at least once every 365 
 69.17  days for personal care.  Home care services are provided to the 
 69.18  recipient at the recipient's residence that is a place other 
 69.19  than a hospital or long-term care facility or as specified in 
 69.20  section 256B.0625.  
 69.21     (b) "Medically necessary" has the meaning given in 
 69.22  Minnesota Rules, parts 9505.0170 to 9505.0475.  
 69.23     (c) "Care plan" means a written description of the services 
 69.24  needed which is developed by the ~~supervisory nurse~~ county public 
 69.25  health nurse together with the recipient or responsible party 
 69.26  and includes a detailed description of the covered home care 
 69.27  services, ~~who is providing the services,~~ frequency and duration 
 69.28  of services, and expected outcomes and goals.  The ~~provider must~~ 
 69.29  ~~give the recipient or responsible party~~ recipient or the 
 69.30  responsible party and the recipient's choice of provider must be 
 69.31  given a copy of the completed care plan within 30 calendar days 
 69.32  of ~~beginning~~ the assessment of need for home care services.  
 69.33     (d) "Responsible party" means an individual residing with a 
 69.34  recipient of personal care services who is capable of providing 
 69.35  the supportive care necessary to assist the recipient to live in 
 69.36  the community, is at least 18 years old, and is not ~~a~~ the 
 70.1   recipient's personal care assistant.  Responsible parties who 
 70.2   are parents of minors or guardians of minors or incapacitated 
 70.3   persons may delegate the responsibility to another adult during 
 70.4   a temporary absence of at least 24 hours but not more than six 
 70.5   months.  The person delegated as a responsible party must be 
 70.6   able to meet the definition of responsible party, except that 
 70.7   the delegated responsible party is required to reside with the 
 70.8   recipient only while serving as the responsible party.  Foster 
 70.9   care license holders may be designated the responsible party for 
 70.10  residents of the foster care home if case management is provided 
 70.11  as required in section 256B.0625, subdivision 19a.  For persons 
 70.12  who~~, as of April 1, 1992,~~ are sharing personal care services in 
 70.13  order to obtain ~~the availability of~~ 24-hour coverage, an 
 70.14  employee of the personal care provider organization may be 
 70.15  designated as the responsible party if case management is 
 70.16  provided as required in section 256B.0625, subdivision 19a. 
 70.17     (e) "Personal care assistant" means a person who:  (1) is 
 70.18  18 years old; (2) is able to read, write, and speak English, as 
 70.19  well as speak the language of the recipient; (3) has completed 
 70.20  the training requirements as specified in Minnesota Rules, part 
 70.21  9505.0335, subpart 3, items A to D; (4) has the ability to, and 
 70.22  provides covered personal care services according to the 
 70.23  recipient's care plan; and (5) is not a consumer of personal 
 70.24  care services. 
 70.25     (f) "Personal care provider organization" means an 
 70.26  organization enrolled to provide personal care services that 
 70.27  complies with the following:  (1) owners who have a five percent 
 70.28  interest or more are subject to a criminal history check as 
 70.29  provided in section 245A.04 at the time of application; and (2) 
 70.30  maintains a surety bond and liability insurance throughout the 
 70.31  duration of enrollment and provides proof of the bond and 
 70.32  insurance.  The insurer must notify the department of human 
 70.33  services of the cancellation or lapse of policy. 
 70.34     Sec. 2.  Minnesota Statutes 1994, section 256B.0627, 
 70.35  subdivision 4, is amended to read: 
 70.36     Subd. 4.  [PERSONAL CARE SERVICES.] (a) The personal care 
 71.1   services that are eligible for payment are the following:  
 71.2      (1) bowel and bladder care; 
 71.3      (2) skin care to maintain the health of the skin; 
 71.4      (3) delegated therapy tasks specific to maintaining a 
 71.5   recipient's optimal level of functioning, including range of 
 71.6   motion and muscle strengthening exercises; 
 71.7      (4) respiratory assistance; 
 71.8      (5) transfers and ambulation; 
 71.9      (6) bathing, grooming, and hairwashing necessary for 
 71.10  personal hygiene; 
 71.11     (7) turning and positioning; 
 71.12     (8) assistance with furnishing medication that is normally 
 71.13  self-administered; 
 71.14     (9) application and maintenance of prosthetics and 
 71.15  orthotics; 
 71.16     (10) cleaning medical equipment; 
 71.17     (11) dressing or undressing; 
 71.18     (12) assistance with food, nutrition, and diet activities; 
 71.19     (13) accompanying a recipient to obtain medical diagnosis 
 71.20  or treatment; 
 71.21     (14) assisting, monitoring, or prompting the recipient to 
 71.22  complete the services in clauses (1) to (13); 
 71.23     (15) redirection, monitoring, and observation that are 
 71.24  medically necessary and an integral part of completing the 
 71.25  personal cares described in clauses (1) to (14); 
 71.26     (16) redirection and intervention for behavior, including 
 71.27  observation and monitoring; 
 71.28     (17) interventions for seizure disorders including 
 71.29  monitoring and observation if the recipient has had a seizure 
 71.30  that requires intervention within the past three months; and 
 71.31     (18) incidental household services that are an integral 
 71.32  part of a personal care service described in clauses (1) to (17).
 71.33     For purposes of this subdivision, monitoring and 
 71.34  observation means watching for outward visible signs that are 
 71.35  likely to occur and for which there is a covered personal care 
 71.36  service or an appropriate personal care intervention.  
 72.1      (b) The personal care services that are not eligible for 
 72.2   payment are the following:  
 72.3      (1) personal care services that are not in the care plan 
 72.4   ~~developed by the supervising registered nurse in consultation~~ 
 72.5   ~~with the personal care assistants and the recipient or the~~ 
 72.6   ~~responsible party directing the care of the recipient~~; 
 72.7      (2) services that are not supervised by the registered 
 72.8   nurse; 
 72.9      (3) services provided by the recipient's spouse, legal 
 72.10  guardian, or parent of a minor child; 
 72.11     (4) services provided by a foster care provider of a 
 72.12  recipient who cannot direct their own care, unless monitored by 
 72.13  a county or state case manager under section 256B.0625, 
 72.14  subdivision 19a; 
 72.15     (5) services provided by the residential or program license 
 72.16  holder in a residence for more than four persons; 
 72.17     (6) services that are the responsibility of a residential 
 72.18  or program license holder under the terms of a service agreement 
 72.19  and administrative rules; 
 72.20     (7) sterile procedures; 
 72.21     (8) injections of fluids into veins, muscles, or skin; 
 72.22     (9) services provided by parents of adult recipients, adult 
 72.23  children, or siblings, unless these relatives meet one of the 
 72.24  following hardship criteria and the commissioner waives this 
 72.25  requirement: 
 72.26     (i) the relative resigns from a part-time or full-time job 
 72.27  to provide personal care for the recipient; 
 72.28     (ii) the relative goes from a full-time to a part-time job 
 72.29  with less compensation to provide personal care for the 
 72.30  recipient; 
 72.31     (iii) the relative takes a leave of absence without pay to 
 72.32  provide personal care for the recipient; 
 72.33     (iv) the relative incurs substantial expenses by providing 
 72.34  personal care for the recipient; or 
 72.35     (v) because of labor conditions, the relative is needed in 
 72.36  order to provide an adequate number of qualified personal care 
 73.1   assistants to meet the medical needs of the recipient; 
 73.2      (10) homemaker services that are not an integral part of a 
 73.3   personal care services; and 
 73.4      (11) home maintenance, or chore services, social services, 
 73.5   recreational services, educational services, and services not 
 73.6   prescribed by the physician. 
 73.7      Sec. 3.  Minnesota Statutes 1994, section 256B.0627, 
 73.8   subdivision 5, is amended to read: 
 73.9      Subd. 5.  [LIMITATION ON PAYMENTS.] Medical assistance 
 73.10  payments for home care services shall be limited according to 
 73.11  this subdivision.  
 73.12     (a) ~~[EXEMPTION FROM PAYMENT LIMITATIONS.] The level, or the~~ 
 73.13  ~~number of hours or visits of a specific service, of home care~~ 
 73.14  ~~services to a recipient that began before and is continued~~ 
 73.15  ~~without increase on or after December 1987, shall be exempt from~~ 
 73.16  ~~the payment limitations of this section, as long as the services~~ 
 73.17  ~~are medically necessary.~~  
 73.18     ~~(b)~~ [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 
 73.19  recipient may receive the following amounts of home care 
 73.20  services during a calendar year: 
 73.21     (1) a total of 40 home health aide visits or skilled nurse 
 73.22  visits under section 256B.0625, subdivision 6a; and 
 73.23     (2) ~~up to two assessments by a supervising registered nurse~~ 
 73.24  assessments done by the county public health nurse to determine 
 73.25  a recipient's need for personal care services, develop a care 
 73.26  plan, and obtain prior authorization.  ~~Additional visits may be~~ 
 73.27  ~~authorized by the commissioner if there are circumstances that~~ 
 73.28  ~~necessitate a change in provider.~~ 
 73.29     ~~(c)~~ (b) [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 
 73.30  services above the limits in paragraph (b) must receive the 
 73.31  commissioner's prior authorization, except when: 
 73.32     (1) the home care services were required to treat an 
 73.33  emergency medical condition that if not immediately treated 
 73.34  could cause a recipient serious physical or mental disability, 
 73.35  continuation of severe pain, or death.  The provider must 
 73.36  request retroactive authorization no later than five working 
 74.1   days after giving the initial service.  The provider must be 
 74.2   able to substantiate the emergency by documentation such as 
 74.3   reports, notes, and admission or discharge histories; 
 74.4      (2) the home care services were provided on or after the 
 74.5   date on which the recipient's eligibility began, but before the 
 74.6   date on which the recipient was notified that the case was 
 74.7   opened.  Authorization will be considered if the request is 
 74.8   submitted by the provider within 20 working days of the date the 
 74.9   recipient was notified that the case was opened; 
 74.10     (3) a third-party payor for home care services has denied 
 74.11  or adjusted a payment.  Authorization requests must be submitted 
 74.12  by the provider within 20 working days of the notice of denial 
 74.13  or adjustment.  A copy of the notice must be included with the 
 74.14  request; or 
 74.15     (4) the commissioner has determined that a county or state 
 74.16  human services agency has made an error. 
 74.17     ~~(d)~~ (c) [RETROACTIVE AUTHORIZATION.] A request for 
 74.18  retroactive authorization under paragraph (c) will be evaluated 
 74.19  according to the same criteria applied to prior authorization 
 74.20  requests.  Implementation of this provision shall begin no later 
 74.21  than October 1, 1991, except that recipients who are currently 
 74.22  receiving medically necessary services above the limits 
 74.23  established under this subdivision may have a reasonable amount 
 74.24  of time to arrange for waivered services under section 256B.49 
 74.25  or to establish an alternative living arrangement.  All current 
 74.26  recipients shall be phased down to the limits established under 
 74.27  paragraph (b) on or before April 1, 1992. 
 74.28     ~~(e)~~ (d) [ASSESSMENT AND CARE PLAN.] The ~~home care provider~~ 
 74.29  county public health nurse shall conduct initially, and at least 
 74.30  annually thereafter, a face-to-face assessment of the recipient 
 74.31  and complete a care plan using forms specified by the 
 74.32  commissioner.  ~~For the recipient to receive, or continue to~~ 
 74.33  ~~receive, home care services, the provider must submit evidence~~ 
 74.34  ~~necessary for the commissioner to determine the medical~~ 
 74.35  ~~necessity of the home care services.~~  The ~~provider~~ county public 
 74.36  health nurse shall submit to the commissioner the assessment, 
 75.1   the care plan, and other information necessary to determine 
 75.2   medical necessity such as diagnostic or testing information, 
 75.3   social or medical histories, and hospital or facility discharge 
 75.4   summaries.  If the recipient has a diagnosis of mental 
 75.5   retardation or related condition (MR/RC) or mental health 
 75.6   illness, the county public health nurse must conduct the 
 75.7   assessment with the county case manager who shall assist in 
 75.8   determining the need for personal care services and make the 
 75.9   recipient or the recipient's responsible party aware of other 
 75.10  appropriate community services available as well.  The amount 
 75.11  and type of service authorized based upon the assessment and 
 75.12  care plan will follow the recipient if the recipient chooses to 
 75.13  change providers.  If the recipient's medical need changes, the 
 75.14  recipient's provider may assess the need for a change in service 
 75.15  authorization and request the change from the county public 
 75.16  health nurse.  The public health nurse shall determine whether 
 75.17  to request the increase in services based upon the provider 
 75.18  assessment, or conduct a home visit to assess the need and 
 75.19  determine whether the change is appropriate.  To continue to 
 75.20  receive home care services when the recipient displays no 
 75.21  significant change, the ~~supervising nurse~~ county public health 
 75.22  nurse has the option to review with the commissioner, or the 
 75.23  commissioner's designee, the care plan on record and receive 
 75.24  authorization for up to an additional 12 months. 
 75.25     ~~(f)~~ (e) [PRIOR AUTHORIZATION.] The commissioner, or the 
 75.26  commissioner's designee, shall review the assessment, the care 
 75.27  plan, and any additional information that is submitted.  The 
 75.28  commissioner shall, within 30 days after receiving a complete 
 75.29  request, assessment, and care plan, authorize home care services 
 75.30  as follows:  
 75.31     (1)  [HOME HEALTH SERVICES.] All home health services 
 75.32  provided by a nurse or a home health aide that exceed the limits 
 75.33  established in paragraph (b) must be prior authorized by the 
 75.34  commissioner or the commissioner's designee.  Prior 
 75.35  authorization must be based on medical necessity and 
 75.36  cost-effectiveness when compared with other care options.  When 
 76.1   home health services are used in combination with personal care 
 76.2   and private duty nursing, the cost of all home care services 
 76.3   shall be considered for cost-effectiveness.  The commissioner 
 76.4   shall limit nurse and home health aide visits to no more than 
 76.5   one visit each per day. 
 76.6      (2)  [PERSONAL CARE SERVICES.] (i) All personal care 
 76.7   services must be prior authorized by the commissioner or the 
 76.8   commissioner's designee except for the ~~limits on~~ 
 76.9   ~~supervision~~ assessments established in paragraph (b).  The 
 76.10  amount of personal care services authorized must be based on the 
 76.11  recipient's home care rating.  A child may not be found to be 
 76.12  dependent in an activity of daily living if because of the 
 76.13  child's age an adult would either perform the activity for the 
 76.14  child or assist the child with the activity and the amount of 
 76.15  assistance needed is similar to the assistance appropriate for a 
 76.16  typical child of the same age.  Based on medical necessity, the 
 76.17  commissioner may authorize: 
 76.18     (A) up to ~~two~~ one and one-half times the average number of 
 76.19  direct care hours provided in nursing facilities for the 
 76.20  recipient's comparable case mix level; or 
 76.21     (B) up to ~~three~~ two and one-fourth times the average number 
 76.22  of direct care hours provided in nursing facilities for 
 76.23  recipients who have complex medical needs or are dependent in at 
 76.24  least seven activities of daily living and need physical 
 76.25  assistance with eating or have a neurological diagnosis but in 
 76.26  no case shall the dollar amount authorized exceed the statewide 
 76.27  weighted average nursing facility payment rate for fiscal year 
 76.28  1994; or 
 76.29     (C) up to 60 percent of the average reimbursement rate, as 
 76.30  of July 1, 1991, plus any inflation adjustment provided, for 
 76.31  care provided in a regional treatment center for recipients who 
 76.32  have Level I behavior; or 
 76.33     (D) up to the amount the commissioner would pay, as of July 
 76.34  1, 1991, plus any inflation adjustment provided for home care 
 76.35  services, for care provided in a regional treatment center for 
 76.36  recipients referred to the commissioner by a regional treatment 
 77.1   center preadmission evaluation team.  For purposes of this 
 77.2   clause, home care services means all services provided in the 
 77.3   home or community that would be included in the payment to a 
 77.4   regional treatment center; or 
 77.5      (E) up to the amount medical assistance would reimburse for 
 77.6   facility care for recipients referred to the commissioner by a 
 77.7   preadmission screening team established under section 256B.0911 
 77.8   or 256B.092; and 
 77.9      (F) a reasonable amount of time for the necessary provision 
 77.10  of nursing supervision of personal care services.  
 77.11     (ii) The number of direct care hours shall be determined 
 77.12  according to the annual cost report submitted to the department 
 77.13  by nursing facilities.  The average number of direct care hours, 
 77.14  as established by May 1, 1992, shall be calculated and 
 77.15  incorporated into the home care limits on July 1, 1992.  These 
 77.16  limits shall be calculated to the nearest quarter hour. 
 77.17     (iii) The home care rating shall be determined by the 
 77.18  commissioner or the commissioner's designee based on information 
 77.19  submitted to the commissioner by the ~~personal care provider~~ 
 77.20  county public health nurse on forms specified by the 
 77.21  commissioner.  The home care rating shall be a combination of 
 77.22  current assessment tools developed under sections 256B.0911 and 
 77.23  256B.501 with an addition for seizure activity that will assess 
 77.24  the frequency and severity of seizure activity and with 
 77.25  adjustments, additions, and clarifications that are necessary to 
 77.26  reflect the needs and conditions of children and nonelderly 
 77.27  adults who need home care.  The commissioner shall establish 
 77.28  these forms and protocols under this section and shall use the 
 77.29  advisory group established in section 256B.04, subdivision 16, 
 77.30  for consultation in establishing the forms and protocols by 
 77.31  October 1, 1991. 
 77.32     (iv) A recipient shall qualify as having complex medical 
 77.33  needs if the care required is difficult to perform and because 
 77.34  of recipient's medical condition requires more time than 
 77.35  community-based standards allow or requires more skill than 
 77.36  would ordinarily be required and the recipient needs or has one 
 78.1   or more of the following: 
 78.2      (A) daily tube feedings; 
 78.3      (B) daily parenteral therapy; 
 78.4      (C) wound or decubiti care; 
 78.5      (D) postural drainage, percussion, nebulizer treatments, 
 78.6   suctioning, tracheotomy care, oxygen, mechanical ventilation; 
 78.7      (E) catheterization; 
 78.8      (F) ostomy care; 
 78.9      (G) quadriplegia; or 
 78.10     (H) other comparable medical conditions or treatments the 
 78.11  commissioner determines would otherwise require institutional 
 78.12  care. 
 78.13     (v) A recipient shall qualify as having Level I behavior if 
 78.14  there is reasonable supporting evidence that the recipient 
 78.15  exhibits, or that without supervision, observation, or 
 78.16  redirection would exhibit, one or more of the following 
 78.17  behaviors that cause, or have the potential to cause: 
 78.18     (A) injury to his or her own body; 
 78.19     (B) physical injury to other people; or 
 78.20     (C) destruction of property. 
 78.21     (vi) Time authorized for personal care relating to Level I 
 78.22  behavior in subclause (v), items (A) to (C), shall be based on 
 78.23  the predictability, frequency, and amount of intervention 
 78.24  required. 
 78.25     (vii) A recipient shall qualify as having Level II behavior 
 78.26  if the recipient exhibits on a daily basis one or more of the 
 78.27  following behaviors that interfere with the completion of 
 78.28  personal care services under subdivision 4, paragraph (a): 
 78.29     (A) unusual or repetitive habits; 
 78.30     (B) withdrawn behavior; or 
 78.31     (C) offensive behavior. 
 78.32     (viii) A recipient with a home care rating of Level II 
 78.33  behavior in subclause (vii), items (A) to (C), shall be rated as 
 78.34  comparable to a recipient with complex medical needs under 
 78.35  subclause (iv).  If a recipient has both complex medical needs 
 78.36  and Level II behavior, the home care rating shall be the next 
 79.1   complex category up to the maximum rating under subclause (i), 
 79.2   item (B). 
 79.3      (3)  [PRIVATE DUTY NURSING SERVICES.] All private duty 
 79.4   nursing services shall be prior authorized by the commissioner 
 79.5   or the commissioner's designee.  Prior authorization for private 
 79.6   duty nursing services shall be based on medical necessity and 
 79.7   cost-effectiveness when compared with alternative care options.  
 79.8   The commissioner may authorize medically necessary private duty 
 79.9   nursing services in quarter-hour units when: 
 79.10     (i) the recipient requires more individual and continuous 
 79.11  care than can be provided during a nurse visit; or 
 79.12     (ii) the cares are outside of the scope of services that 
 79.13  can be provided by a home health aide or personal care assistant.
 79.14     The commissioner may authorize: 
 79.15     (A) up to two times the average amount of direct care hours 
 79.16  provided in nursing facilities statewide for case mix 
 79.17  classification "K" as established by the annual cost report 
 79.18  submitted to the department by nursing facilities in May 1992; 
 79.19     (B) private duty nursing in combination with other home 
 79.20  care services up to the total cost allowed under clause (2); 
 79.21     (C) up to 16 hours per day if the recipient requires more 
 79.22  nursing than the maximum number of direct care hours as 
 79.23  established in item (A) and the recipient meets the hospital 
 79.24  admission criteria established under Minnesota Rules, parts 
 79.25  9505.0500 to 9505.0540.  
 79.26     The commissioner may authorize up to 16 hours per day of 
 79.27  medically necessary private duty nursing services or up to 24 
 79.28  hours per day of medically necessary private duty nursing 
 79.29  services until such time as the commissioner is able to make a 
 79.30  determination of eligibility for recipients who are 
 79.31  cooperatively applying for home care services under the 
 79.32  community alternative care program developed under section 
 79.33  256B.49, or until it is determined by the appropriate regulatory 
 79.34  agency that a health benefit plan is or is not required to pay 
 79.35  for appropriate medically necessary health care services.  
 79.36  Recipients or their representatives must cooperatively assist 
 80.1   the commissioner in obtaining this determination.  Recipients 
 80.2   who are eligible for the community alternative care program may 
 80.3   not receive more hours of nursing under this section than would 
 80.4   otherwise be authorized under section 256B.49. 
 80.5      (4)  [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 
 80.6   ventilator-dependent, the monthly medical assistance 
 80.7   authorization for home care services shall not exceed what the 
 80.8   commissioner would pay for care at the highest cost hospital 
 80.9   designated as a long-term hospital under the Medicare program.  
 80.10  For purposes of this clause, home care services means all 
 80.11  services provided in the home that would be included in the 
 80.12  payment for care at the long-term hospital.  
 80.13  "Ventilator-dependent" means an individual who receives 
 80.14  mechanical ventilation for life support at least six hours per 
 80.15  day and is expected to be or has been dependent for at least 30 
 80.16  consecutive days.  
 80.17     ~~(g)~~ (f) [PRIOR AUTHORIZATION; TIME LIMITS.] The 
 80.18  commissioner or the commissioner's designee shall determine the 
 80.19  time period for which a prior authorization shall be effective. 
 80.20  If the recipient continues to require home care services beyond 
 80.21  the duration of the prior authorization, the home care provider 
 80.22  must request a new prior authorization through the process 
 80.23  described above.  Under no circumstances, other than the 
 80.24  exceptions in subdivision 5, paragraph (c), shall a prior 
 80.25  authorization be valid prior to the date the commissioner 
 80.26  receives the request or for more than 12 months.  A recipient 
 80.27  who appeals a reduction in previously authorized home care 
 80.28  services may continue previously authorized services, other than 
 80.29  temporary services under paragraph (i), pending an appeal under 
 80.30  section 256.045.  The commissioner must provide a detailed 
 80.31  explanation of why the authorized services are reduced in amount 
 80.32  from those requested by the home care provider.  
 80.33     ~~(h)~~ (g) [APPROVAL OF HOME CARE SERVICES.] The commissioner 
 80.34  or the commissioner's designee shall determine the medical 
 80.35  necessity of home care services, the level of caregiver 
 80.36  according to subdivision 2, and the institutional comparison 
 81.1   according to this subdivision, the cost-effectiveness of 
 81.2   services, and the amount, scope, and duration of home care 
 81.3   services reimbursable by medical assistance, based on the 
 81.4   assessment, the care plan, the recipient's age, the cost of 
 81.5   services, the recipient's medical condition, and diagnosis or 
 81.6   disability.  The commissioner may publish additional criteria 
 81.7   for determining medical necessity according to section 256B.04. 
 81.8      ~~(i)~~ (h) [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 
 81.9   ~~Providers~~ The county public health nurse may request a temporary 
 81.10  authorization for home care services by telephone.  The 
 81.11  commissioner may approve a temporary level of home care services 
 81.12  based on the assessment and care plan information ~~provided by an~~ 
 81.13  ~~appropriately licensed nurse~~.  Authorization for a temporary 
 81.14  level of home care services is limited to the time specified by 
 81.15  the commissioner, but shall not exceed 45 days.  The level of 
 81.16  services authorized under this provision shall have no bearing 
 81.17  on a future prior authorization. 
 81.18     ~~(j)~~ (i) [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE 
 81.19  SETTING.] Home care services provided in an adult or child 
 81.20  foster care setting must receive prior authorization by the 
 81.21  department according to the limits established in paragraph (b). 
 81.22     The commissioner may not authorize: 
 81.23     (1) home care services that are the responsibility of the 
 81.24  foster care provider under the terms of the foster care 
 81.25  placement agreement and administrative rules; 
 81.26     (2) personal care services when the foster care license 
 81.27  holder is also the personal care provider or personal care 
 81.28  assistant unless the recipient can direct the recipient's own 
 81.29  care, or case management is provided as required in section 
 81.30  256B.0625, subdivision 19a; 
 81.31     (3) personal care services when the responsible party is an 
 81.32  employee of, or under contract with, or has any direct or 
 81.33  indirect financial relationship with the personal care provider 
 81.34  or personal care assistant, unless case management is provided 
 81.35  as required in section 256B.0625, subdivision 19a; 
 81.36     (4) home care services when the number of foster care 
 82.1   residents is greater than four ~~unless the county responsible for~~ 
 82.2   ~~the recipient's foster placement made the placement prior to~~ 
 82.3   ~~April 1, 1992, requests that home care services be provided, and~~ 
 82.4   ~~case management is provided as required in section 256B.0625,~~ 
 82.5   ~~subdivision 19a~~; or 
 82.6      (5) home care services when combined with foster care 
 82.7   payments, other than room and board payments plus the cost of 
 82.8   home and community-based waivered services unless the costs of 
 82.9   home care services and waivered services are combined and 
 82.10  managed under the waiver program, that exceed the total amount 
 82.11  that public funds would pay for the recipient's care in a 
 82.12  medical institution. 
 82.13     Sec. 4.  Minnesota Statutes 1994, section 256B.0628, 
 82.14  subdivision 2, is amended to read: 
 82.15     Subd. 2.  [DUTIES.] (a) The commissioner may contract with 
 82.16  or employ qualified registered nurses and necessary support 
 82.17  staff, or contract with qualified agencies, to provide home care 
 82.18  prior authorization and review services for medical assistance 
 82.19  recipients who are receiving home care services. 
 82.20     (b) Reimbursement for the prior authorization function 
 82.21  shall be made through the medical assistance administrative 
 82.22  authority.  The state shall pay the nonfederal share.  The 
 82.23  functions will be to: 
 82.24     (1) assess the recipient's individual need for services 
 82.25  required to be cared for safely in the community; 
 82.26     (2) ensure that a care plan that meets the recipient's 
 82.27  needs is developed by the appropriate agency or individual; 
 82.28     (3) ensure cost-effectiveness of medical assistance home 
 82.29  care services; 
 82.30     (4) recommend the approval or denial of the use of medical 
 82.31  assistance funds to pay for home care services ~~when home care~~ 
 82.32  ~~services exceed thresholds established by the commissioner under~~ 
 82.33  ~~Minnesota Rules, parts 9505.0170 to 9505.0475~~; 
 82.34     (5) reassess the recipient's need for and level of home 
 82.35  care services at a frequency determined by the commissioner; and 
 82.36     (6) conduct on-site assessments when determined necessary 
 83.1   by the commissioner and recommend changes to care plans that 
 83.2   will provide more efficient and appropriate home care. 
 83.3      (c) In addition, the commissioner or the commissioner's 
 83.4   designee may: 
 83.5      (1) review care plans and reimbursement data for 
 83.6   utilization of services that exceed community-based standards 
 83.7   for home care, inappropriate home care services, medical 
 83.8   necessity, home care services that do not meet quality of care 
 83.9   standards, or unauthorized services and make appropriate 
 83.10  referrals within the department or to other appropriate entities 
 83.11  based on the findings; 
 83.12     (2) assist the recipient in obtaining services necessary to 
 83.13  allow the recipient to remain safely in or return to the 
 83.14  community; 
 83.15     (3) coordinate home care services with other medical 
 83.16  assistance services under section 256B.0625; 
 83.17     (4) assist the recipient with problems related to the 
 83.18  provision of home care services; and 
 83.19     (5) assure the quality of home care services. 
 83.20     (d) For the purposes of this section, "home care services"  
 83.21  means medical assistance services defined under section 
 83.22  256B.0625, subdivisions 6a, 7, and 19a. 
 83.23     Sec. 5.  Minnesota Statutes 1994, section 256B.0911, 
 83.24  subdivision 2, is amended to read: 
 83.25     Subd. 2.  [PERSONS REQUIRED TO BE SCREENED; EXEMPTIONS.] 
 83.26  All applicants to Medicaid certified nursing facilities must be 
 83.27  screened prior to admission, regardless of income, assets, or 
 83.28  funding sources, except the following: 
 83.29     (1) patients who, having entered acute care facilities from 
 83.30  certified nursing facilities, are returning to a certified 
 83.31  nursing facility; 
 83.32     (2) residents transferred from other certified nursing 
 83.33  facilities located within the state of Minnesota; 
 83.34     (3) individuals who have a contractual right to have their 
 83.35  nursing facility care paid for indefinitely by the veteran's 
 83.36  administration; ~~or~~ 
 84.1      (4) individuals who are enrolled in the Ebenezer/Group 
 84.2   Health social health maintenance organization project at the 
 84.3   time of application to a nursing home; or 
 84.4      (5) individuals previously screened and currently being 
 84.5   served under the alternative care or waiver programs. 
 84.6      Regardless of the exemptions in clauses (2) to (4), persons 
 84.7   who have a diagnosis or possible diagnosis of mental illness, 
 84.8   mental retardation, or a related condition must be screened 
 84.9   before admission unless the admission prior to screening is 
 84.10  authorized by the local mental health authority or the local 
 84.11  developmental disabilities case manager, or unless authorized by 
 84.12  the county agency according to Public Law Number 101-508. 
 84.13     Before admission to a Medicaid certified nursing home or 
 84.14  boarding care home, all persons must be screened and approved 
 84.15  for admission through an assessment process.  The nursing 
 84.16  facility is authorized to conduct case mix assessments which are 
 84.17  not conducted by the county public health nurse under Minnesota 
 84.18  Rules, part 9549.0059.  The designated county agency is 
 84.19  responsible for distributing the quality assurance and review 
 84.20  form for all new applicants to nursing homes. 
 84.21     Other persons who are not applicants to nursing facilities 
 84.22  must be screened if a request is made for a screening. 
 84.23     Sec. 6.  Minnesota Statutes 1994, section 256B.0913, 
 84.24  subdivision 4, is amended to read: 
 84.25     Subd. 4.  [ELIGIBILITY FOR FUNDING FOR SERVICES FOR 
 84.26  NONMEDICAL ASSISTANCE RECIPIENTS.] (a) Funding for services 
 84.27  under the alternative care program is available to persons who 
 84.28  meet the following criteria: 
 84.29     (1) the person has been screened by the county screening 
 84.30  team or, if previously screened and served under the alternative 
 84.31  care program, assessed by the local county social worker or 
 84.32  public health nurse; 
 84.33     (2) the person is age 65 or older; 
 84.34     (3) the person would be financially eligible for medical 
 84.35  assistance within 180 days of admission to a nursing facility; 
 84.36     (4) the person meets the asset transfer requirements of the 
 85.1   medical assistance program; 
 85.2      (5) the screening team would recommend nursing facility 
 85.3   admission or continued stay for the person if alternative care 
 85.4   services were not available; 
 85.5      (6) the person needs services that are not available at 
 85.6   that time in the county through other county, state, or federal 
 85.7   funding sources; ~~and~~ 
 85.8      (7) the monthly cost of the alternative care services 
 85.9   funded by the program for this person does not exceed 75 percent 
 85.10  of the statewide average monthly medical assistance payment for 
 85.11  nursing facility care at the individual's case mix 
 85.12  classification to which the individual would be assigned under 
 85.13  Minnesota Rules, parts 9549.0050 to 9549.0059; and 
 85.14     (8) if the monthly cost of the alternative care recipient's 
 85.15  services including supplies and equipment exceeds the limits in 
 85.16  clause (7), the annual cost of alternative care services shall 
 85.17  be determined but shall not exceed 12 times the monthly limit 
 85.18  calculated under clause (7). 
 85.19     (b) Individuals who meet the criteria in paragraph (a) and 
 85.20  who have been approved for alternative care funding are called 
 85.21  180-day eligible clients. 
 85.22     (c) The statewide average payment for nursing facility care 
 85.23  is the statewide average monthly nursing facility rate in effect 
 85.24  on July 1 of the fiscal year in which the cost is incurred, less 
 85.25  the statewide average monthly income of nursing facility 
 85.26  residents who are age 65 or older and who are medical assistance 
 85.27  recipients in the month of March of the previous fiscal year.  
 85.28  This monthly limit does not prohibit the 180-day eligible client 
 85.29  from paying for additional services needed or desired.  
 85.30     (d) In determining the total costs of alternative care 
 85.31  services for one month, the costs of all services funded by the 
 85.32  alternative care program, including supplies and equipment, must 
 85.33  be included. 
 85.34     (e) Alternative care funding under this subdivision is not 
 85.35  available for a person who is a medical assistance recipient or 
 85.36  who would be eligible for medical assistance without a spenddown 
 86.1   if the person applied, unless authorized by the commissioner.  A 
 86.2   person whose application for medical assistance is being 
 86.3   processed may be served under the alternative care program for a 
 86.4   period up to 60 days.  If the individual is found to be eligible 
 86.5   for medical assistance, the county must bill medical assistance 
 86.6   from the date the individual was found eligible for the medical 
 86.7   assistance services provided that are reimbursable under the 
 86.8   elderly waiver program.  
 86.9      (f) Alternative care funding is not available for a person 
 86.10  who resides in a licensed nursing home or boarding care home, 
 86.11  except for case management services which are being provided in 
 86.12  support of the discharge planning process.  
 86.13     Sec. 7.  Minnesota Statutes 1994, section 256B.0913, 
 86.14  subdivision 5, is amended to read: 
 86.15     Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
 86.16  Alternative care funding may be used for payment of costs of: 
 86.17     (1) adult foster care; 
 86.18     (2) adult day care; 
 86.19     (3) home health aide; 
 86.20     (4) homemaker services; 
 86.21     (5) personal care; 
 86.22     (6) case management; 
 86.23     (7) respite care; 
 86.24     (8) assisted living; 
 86.25     (9) residential care services; 
 86.26     (10) care-related supplies and equipment; 
 86.27     (11) meals delivered to the home; 
 86.28     (12) transportation; 
 86.29     (13) skilled nursing; 
 86.30     (14) chore services; 
 86.31     (15) companion services; 
 86.32     (16) nutrition services; and 
 86.33     (17) training for direct informal caregivers. 
 86.34     (b) The county agency must ensure that the funds are used 
 86.35  only to supplement and not supplant services available through 
 86.36  other public assistance or services programs. 
 87.1      (c) Unless specified in statute, the service standards for 
 87.2   alternative care services shall be the same as the service 
 87.3   standards defined in the elderly waiver.  Persons or agencies 
 87.4   must be employed by or under a contract with the county agency 
 87.5   or the public health nursing agency of the local board of health 
 87.6   in order to receive funding under the alternative care program. 
 87.7      (d) The adult foster care rate shall be considered a 
 87.8   difficulty of care payment and shall not include room and 
 87.9   board.  The adult foster care daily rate shall be negotiated 
 87.10  between the county agency and the foster care provider.  The 
 87.11  rate established under this section shall not exceed 75 percent 
 87.12  of the state average monthly nursing home payment for the case 
 87.13  mix classification to which the individual receiving foster care 
 87.14  is assigned, and it must allow for other alternative care 
 87.15  services to be authorized by the case manager. 
 87.16     (e) Personal care services may be provided by a personal 
 87.17  care provider organization.  A county agency may contract with a 
 87.18  relative of the client to provide personal care services, but 
 87.19  must ensure nursing supervision.  Covered personal care services 
 87.20  defined in section 256B.0627, subdivision 4, must meet 
 87.21  applicable standards in Minnesota Rules, part 9505.0335. 
 87.22     (f) Costs for supplies and equipment that exceed $150 per 
 87.23  item per month must have prior approval from the commissioner.  
 87.24  A county may use alternative care funds to purchase supplies and 
 87.25  equipment from a non-Medicaid certified vendor if the cost for 
 87.26  the items is less than that of a Medicaid vendor.  A county is 
 87.27  not required to contract with a provider of supplies and 
 87.28  equipment if the monthly cost of the supplies or equipment is 
 87.29  less than $250.  
 87.30     (g) For purposes of this section, residential care services 
 87.31  are services which are provided to individuals living in 
 87.32  residential care homes.  Residential care homes are currently 
 87.33  licensed as board and lodging establishments and are registered 
 87.34  with the department of health as providing special services.  
 87.35  Residential care services are defined as "supportive services" 
 87.36  and "health-related services."  "Supportive services" means the 
 88.1   provision of up to 24-hour supervision and oversight.  
 88.2   Supportive services includes:  (1) transportation, when provided 
 88.3   by the residential care center only; (2) socialization, when 
 88.4   socialization is part of the plan of care, has specific goals 
 88.5   and outcomes established, and is not diversional or recreational 
 88.6   in nature; (3) assisting clients in setting up meetings and 
 88.7   appointments; (4) assisting clients in setting up medical and 
 88.8   social services; (5) providing assistance with personal laundry, 
 88.9   such as carrying the client's laundry to the laundry room.  
 88.10  Assistance with personal laundry does not include any laundry, 
 88.11  such as bed linen, that is included in the room and board rate.  
 88.12  Health-related services are limited to minimal assistance with 
 88.13  dressing, grooming, and bathing and providing reminders to 
 88.14  residents to take medications that are self-administered or 
 88.15  providing storage for medications, if requested.  Individuals 
 88.16  receiving residential care services cannot receive both personal 
 88.17  care services and residential care services.  
 88.18     (h) For the purposes of this section, "assisted living" 
 88.19  refers to supportive services provided by a single vendor to 
 88.20  clients who reside in the same apartment building of three or 
 88.21  more units.  Assisted living services are defined as up to 
 88.22  24-hour supervision, and oversight, supportive services as 
 88.23  defined in clause (1), individualized home care aide tasks as 
 88.24  defined in clause (2), and individualized home management tasks 
 88.25  as defined in clause (3) provided to residents of a residential 
 88.26  center living in their units or apartments with a full kitchen 
 88.27  and bathroom.  A full kitchen includes a stove, oven, 
 88.28  refrigerator, food preparation counter space, and a kitchen 
 88.29  utensil storage compartment.  Assisted living services must be 
 88.30  provided by the management of the residential center or by 
 88.31  providers under contract with the management or with the county. 
 88.32     (1) Supportive services include:  
 88.33     (i) socialization, when socialization is part of the plan 
 88.34  of care, has specific goals and outcomes established, and is not 
 88.35  diversional or recreational in nature; 
 88.36     (ii) assisting clients in setting up meetings and 
 89.1   appointments; and 
 89.2      (iii) providing transportation, when provided by the 
 89.3   residential center only.  
 89.4      Individuals receiving assisted living services will not 
 89.5   receive both assisted living services and homemaking or personal 
 89.6   care services.  Individualized means services are chosen and 
 89.7   designed specifically for each resident's needs, rather than 
 89.8   provided or offered to all residents regardless of their 
 89.9   illnesses, disabilities, or physical conditions.  
 89.10     (2) Home care aide tasks means:  
 89.11     (i) preparing modified diets, such as diabetic or low 
 89.12  sodium diets; 
 89.13     (ii) reminding residents to take regularly scheduled 
 89.14  medications or to perform exercises; 
 89.15     (iii) household chores in the presence of technically 
 89.16  sophisticated medical equipment or episodes of acute illness or 
 89.17  infectious disease; 
 89.18     (iv) household chores when the resident's care requires the 
 89.19  prevention of exposure to infectious disease or containment of 
 89.20  infectious disease; and 
 89.21     (v) assisting with dressing, oral hygiene, hair care, 
 89.22  grooming, and bathing, if the resident is ambulatory, and if the 
 89.23  resident has no serious acute illness or infectious disease.  
 89.24  Oral hygiene means care of teeth, gums, and oral prosthetic 
 89.25  devices.  
 89.26     (3) Home management tasks means:  
 89.27     (i) housekeeping; 
 89.28     (ii) laundry; 
 89.29     (iii) preparation of regular snacks and meals; and 
 89.30     (iv) shopping.  
 89.31     ~~A person's eligibility to reside in the building must not~~ 
 89.32  ~~be contingent on the person's acceptance or use of the assisted~~ 
 89.33  ~~living services.~~  Assisted living services as defined in this 
 89.34  section shall not be authorized in boarding and lodging 
 89.35  establishments licensed according to sections 157.01 to 157.031. 
 89.36     Reimbursement for assisted living services and residential 
 90.1   care services shall be made by the lead agency to the vendor as 
 90.2   a monthly rate negotiated with the county agency.  The rate 
 90.3   shall not exceed the nonfederal share of the greater of either 
 90.4   the statewide or any of the geographic groups' weighted average 
 90.5   monthly medical assistance nursing facility payment rate of the 
 90.6   case mix resident class to which the 180-day eligible client 
 90.7   would be assigned under Minnesota Rules, parts 9549.0050 to 
 90.8   9549.0059, except for alternative care assisted living projects 
 90.9   established under Laws 1988, chapter 689, article 2, section 
 90.10  256, whose rates may not exceed 65 percent of either the 
 90.11  statewide or any of the geographic groups' weighted average 
 90.12  monthly medical assistance nursing facility payment rate of the 
 90.13  case mix resident class to which the 180-day eligible client 
 90.14  would be assigned under Minnesota Rules, parts 9549.0050 to 
 90.15  9549.0059.  The rate may not cover rent and direct food costs. 
 90.16     (i) For purposes of this section, companion services are 
 90.17  defined as nonmedical care, supervision and oversight, provided 
 90.18  to a functionally impaired adult.  Companions may assist the 
 90.19  individual with such tasks as meal preparation, laundry and 
 90.20  shopping, but do not perform these activities as discrete 
 90.21  services.  The provision of companion services does not entail 
 90.22  hands-on medical care.  Providers may also perform light 
 90.23  housekeeping tasks which are incidental to the care and 
 90.24  supervision of the recipient.  This service must be approved by 
 90.25  the case manager as part of the care plan.  Companion services 
 90.26  must be provided by individuals or nonprofit organizations who 
 90.27  are under contract with the local agency to provide the 
 90.28  service.  Any person related to the waiver recipient by blood, 
 90.29  marriage or adoption cannot be reimbursed under this service.  
 90.30  Persons providing companion services will be monitored by the 
 90.31  case manager. 
 90.32     (j) For purposes of this section, training for direct 
 90.33  informal caregivers is defined as a classroom or home course of 
 90.34  instruction which may include:  transfer and lifting skills, 
 90.35  nutrition, personal and physical cares, home safety in a home 
 90.36  environment, stress reduction and management, behavioral 
 91.1   management, long-term care decision making, care coordination 
 91.2   and family dynamics.  The training is provided to an informal 
 91.3   unpaid caregiver of a 180-day eligible client which enables the 
 91.4   caregiver to deliver care in a home setting with high levels of 
 91.5   quality.  The training must be approved by the case manager as 
 91.6   part of the individual care plan.  Individuals, agencies, and 
 91.7   educational facilities which provide caregiver training and 
 91.8   education will be monitored by the case manager. 
 91.9      Sec. 8.  Minnesota Statutes 1994, section 256B.0913, 
 91.10  subdivision 8, is amended to read: 
 91.11     Subd. 8.  [REQUIREMENTS FOR INDIVIDUAL CARE PLAN.] (a) The 
 91.12  case manager shall implement the plan of care for each 180-day 
 91.13  eligible client and ensure that a client's service needs and 
 91.14  eligibility are reassessed at least every ~~six~~ 12 months.  The 
 91.15  plan shall include any services prescribed by the individual's 
 91.16  attending physician as necessary to allow the individual to 
 91.17  remain in a community setting.  In developing the individual's 
 91.18  care plan, the case manager should include the use of volunteers 
 91.19  from families and neighbors, religious organizations, social 
 91.20  clubs, and civic and service organizations to support the formal 
 91.21  home care services.  The county shall be held harmless for 
 91.22  damages or injuries sustained through the use of volunteers 
 91.23  under this subdivision including workers' compensation 
 91.24  liability.  The lead agency shall provide documentation to the 
 91.25  commissioner verifying that the individual's alternative care is 
 91.26  not available at that time through any other public assistance 
 91.27  or service program.  The lead agency shall provide documentation 
 91.28  in each individual's plan of care and to the commissioner that 
 91.29  the most cost-effective alternatives available have been offered 
 91.30  to the individual and that the individual was free to choose 
 91.31  among available qualified providers, both public and private. 
 91.32  The case manager must give the individual a ten-day written 
 91.33  notice of any decrease in or termination of alternative care 
 91.34  services. 
 91.35     (b) If the county of service is different from the county 
 91.36  of financial responsibility for an alternative care client, the 
 92.1   county of service must notify the county of financial 
 92.2   responsibility verbally or in writing that the client is 
 92.3   eligible to receive alternative care services.  If the county of 
 92.4   financial responsibility requests additional information 
 92.5   regarding the client's eligibility for services, the county of 
 92.6   service must provide the requested information.  
 92.7      Sec. 9.  Minnesota Statutes 1994, section 256B.0913, 
 92.8   subdivision 12, is amended to read: 
 92.9      Subd. 12.  [CLIENT PREMIUMS.] (a) A premium is required for 
 92.10  all 180-day eligible clients to help pay for the cost of 
 92.11  participating in the program.  The amount of the premium for the 
 92.12  alternative care client shall be determined as follows: 
 92.13     (1) when the alternative care client's income less 
 92.14  recurring and predictable medical expenses is greater than the 
 92.15  medical assistance income standard but less than 150 percent of 
 92.16  the federal poverty guideline, and total assets are less than 
 92.17  $6,000, the fee is zero; 
 92.18     (2) when the alternative care client's income less 
 92.19  recurring and predictable medical expenses is greater than 150 
 92.20  percent of the federal poverty guideline and total assets are 
 92.21  less than $6,000, the fee is 25 percent of the cost of 
 92.22  alternative care services or the difference between 150 percent 
 92.23  of the federal poverty guideline and the client's income less 
 92.24  recurring and predictable medical expenses, whichever is less; 
 92.25  and 
 92.26     (3) when the alternative care client's total assets are 
 92.27  greater than $6,000, the fee is 25 percent of the cost of 
 92.28  alternative care services.  
 92.29     For married persons, total assets are defined as the total 
 92.30  marital assets less the estimated community spouse asset 
 92.31  allowance, under section 256B.059, if applicable.  For married 
 92.32  persons, total income is defined as the client's income less the 
 92.33  monthly spousal allotment, under section 256B.058. 
 92.34     All alternative care services except case management shall 
 92.35  be included in the estimated costs for the purpose of 
 92.36  determining 25 percent of the costs. 
 93.1      The monthly premium shall be calculated ~~and be payable in~~ 
 93.2   ~~the~~ based on the cost of the first full month ~~in which the~~ of 
 93.3   alternative care services ~~begin~~ and shall continue unaltered ~~for~~ 
 93.4   ~~six months until the semiannual reassessment unless the actual~~ 
 93.5   ~~cost of services falls below the fee~~ until the next reassessment 
 93.6   is completed or at the end of 12 months, whichever comes first.  
 93.7   Premiums are due and payable each month alternative care 
 93.8   services are received unless the actual cost of the services is 
 93.9   less than the premium. 
 93.10     (b) The fee shall be waived by the commissioner when: 
 93.11     (1) a person who is residing in a nursing facility is 
 93.12  receiving case management only; 
 93.13     (2) a person is applying for medical assistance; 
 93.14     (3) a married couple is requesting an asset assessment 
 93.15  under the spousal impoverishment provisions; 
 93.16     (4) a person is a medical assistance recipient, but has 
 93.17  been approved for alternative care-funded assisted living 
 93.18  services; 
 93.19     (5) a person is found eligible for alternative care, but is 
 93.20  not yet receiving alternative care services; or 
 93.21     (6) ~~a person is an adult foster care resident for whom~~ 
 93.22  ~~alternative care funds are being used to meet a portion of the~~ 
 93.23  ~~person's medical assistance spenddown, as authorized in~~ 
 93.24  ~~subdivision 4; and~~ 
 93.25     ~~(7)~~ a person's fee under paragraph (a) is less than $25. 
 93.26     (c) The county agency must collect the premium from the 
 93.27  client and forward the amounts collected to the commissioner in 
 93.28  the manner and at the times prescribed by the commissioner.  
 93.29  Money collected must be deposited in the general fund and is 
 93.30  appropriated to the commissioner for the alternative care 
 93.31  program.  The client must supply the county with the client's 
 93.32  social security number at the time of application.  If a client 
 93.33  fails or refuses to pay the premium due, the county shall supply 
 93.34  the commissioner with the client's social security number and 
 93.35  other information the commissioner requires to collect the 
 93.36  premium from the client.  The commissioner shall collect unpaid 
 94.1   premiums using the revenue recapture act in chapter 270A and 
 94.2   other methods available to the commissioner.  The commissioner 
 94.3   may require counties to inform clients of the collection 
 94.4   procedures that may be used by the state if a premium is not 
 94.5   paid.  
 94.6      (d) The commissioner shall begin to adopt emergency or 
 94.7   permanent rules governing client premiums within 30 days after 
 94.8   July 1, 1991, including criteria for determining when services 
 94.9   to a client must be terminated due to failure to pay a premium.  
 94.10     Sec. 10.  Minnesota Statutes 1994, section 256B.0913, 
 94.11  subdivision 14, is amended to read: 
 94.12     Subd. 14.  [REIMBURSEMENT AND RATE ADJUSTMENTS.] (a) 
 94.13  Reimbursement for expenditures for the alternative care services 
 94.14  shall be through the invoice processing procedures of the 
 94.15  department's Medicaid Management Information System (MMIS), only 
 94.16  with the approval of the client's case manager.  To receive 
 94.17  reimbursement, the county or vendor must submit invoices within 
 94.18  ~~120 days~~ 12 months following the ~~month~~ date of service.  The 
 94.19  county agency and its vendors under contract shall not be 
 94.20  reimbursed for services which exceed the county allocation. 
 94.21     (b) If a county collects less than 50 percent of the client 
 94.22  premiums due under subdivision 12, the commissioner may withhold 
 94.23  up to three percent of the county's final alternative care 
 94.24  program allocation determined under subdivisions 10 and 11. 
 94.25     (c) Beginning July 1, 1991, the state will reimburse 
 94.26  counties, up to the limits of state appropriations, according to 
 94.27  the payment schedule in section 256.025 for the county share of 
 94.28  costs incurred under this subdivision on or after January 1, 
 94.29  1991, for individuals who would be eligible for medical 
 94.30  assistance within 180 days of admission to a nursing home. 
 94.31     (d) For fiscal years beginning on or after July 1, 1993, 
 94.32  the commissioner of human services shall not provide automatic 
 94.33  annual inflation adjustments for alternative care services.  The 
 94.34  commissioner of finance shall include as a budget change request 
 94.35  in each biennial detailed expenditure budget submitted to the 
 94.36  legislature under section 16A.11 annual adjustments in 
 95.1   reimbursement rates for alternative care services based on the 
 95.2   forecasted percentage change in the Home Health Agency Market 
 95.3   Basket of Operating Costs, for the fiscal year beginning July 1, 
 95.4   compared to the previous fiscal year, unless otherwise adjusted 
 95.5   by statute.  The Home Health Agency Market Basket of Operating 
 95.6   Costs is published by Data Resources, Inc.  The forecast to be 
 95.7   used is the one published for the calendar quarter beginning 
 95.8   January 1, six months prior to the beginning of the fiscal year 
 95.9   for which rates are set. 
 95.10     (e) The county shall negotiate individual rates with 
 95.11  vendors and may be reimbursed for actual costs up to the greater 
 95.12  of the county's current approved rate or 60 percent of the 
 95.13  maximum rate in fiscal year 1994 and 65 percent of the maximum 
 95.14  rate in fiscal year 1995 for each alternative care service.  
 95.15  Notwithstanding any other rule or statutory provision to the 
 95.16  contrary, the commissioner shall not be authorized to increase 
 95.17  rates by an annual inflation factor, unless so authorized by the 
 95.18  legislature. 
 95.19     (f) On July 1, 1993, the commissioner shall increase the 
 95.20  maximum rate for home delivered meals to $4.50 per meal. 
 95.21     Sec. 11.  Minnesota Statutes 1994, section 256B.0915, 
 95.22  subdivision 3, is amended to read: 
 95.23     Subd. 3.  [LIMITS OF CASES, RATES, REIMBURSEMENT, AND 
 95.24  FORECASTING.] (a) The number of medical assistance waiver 
 95.25  recipients that a county may serve must be allocated according 
 95.26  to the number of medical assistance waiver cases open on July 1 
 95.27  of each fiscal year.  Additional recipients may be served with 
 95.28  the approval of the commissioner. 
 95.29     (b) The monthly limit for the cost of waivered services to 
 95.30  an individual waiver client shall be the statewide average 
 95.31  payment rate of the case mix resident class to which the waiver 
 95.32  client would be assigned under medical assistance case mix 
 95.33  reimbursement system.  The statewide average payment rate is 
 95.34  calculated by determining the statewide average monthly nursing 
 95.35  home rate effective July 1 of the fiscal year in which the cost 
 95.36  is incurred, less the statewide average monthly income of 
 96.1   nursing home residents who are age 65 or older, and who are 
 96.2   medical assistance recipients in the month of March of the 
 96.3   previous state fiscal year.  The monthly cost of elderly or 
 96.4   disabled waivered services for a person who is a nursing 
 96.5   facility resident at the time of requesting a determination of 
 96.6   eligibility for elderly or disabled waivered services shall not 
 96.7   exceed the monthly payment for the resident class assigned under 
 96.8   Minnesota Rules, parts 9549.0050 to 9549.0059 for that resident 
 96.9   in the nursing facility where the resident currently resides.  
 96.10  The following costs must be included in determining the total 
 96.11  monthly costs for the waiver client: 
 96.12     (1) cost of all waivered services, including extended 
 96.13  medical supplies and equipment; and 
 96.14     (2) cost of skilled nursing, home health aide, and personal 
 96.15  care services reimbursable by medical assistance.  
 96.16     (c) If the monthly cost of the elderly or disabled 
 96.17  recipient's waivered services including supplies and equipment 
 96.18  exceeds the limits in paragraph (b), the annual cost of waivered 
 96.19  services shall be determined.  In this event, the annual cost of 
 96.20  waivered services to the recipient shall not exceed 12 times the 
 96.21  monthly limit calculated under paragraph (b).  
 96.22     (d) Medical assistance funding for skilled nursing 
 96.23  services, home health aide, and personal care services for 
 96.24  waiver recipients must be approved by the case manager and 
 96.25  included in the individual care plan. 
 96.26     ~~(d)~~ (e) Expenditures for extended medical supplies and 
 96.27  equipment that cost over $150 per month for both the elderly 
 96.28  waiver and the disabled waiver must have the commissioner's 
 96.29  prior approval.  A county is not required to contract with a 
 96.30  provider of supplies and equipment if the monthly cost of the 
 96.31  supplies or equipment is less than $250.  
 96.32     ~~(e)~~ (f) For the fiscal year beginning on July 1, 1993, and 
 96.33  for subsequent fiscal years, the commissioner of human services 
 96.34  shall not provide automatic annual inflation adjustments for 
 96.35  home and community-based waivered services.  The commissioner of 
 96.36  finance shall include as a budget change request in each 
 97.1   biennial detailed expenditure budget submitted to the 
 97.2   legislature under section 16A.11 annual adjustments in 
 97.3   reimbursement rates for home and community-based waivered 
 97.4   services, based on the forecasted percentage change in the Home 
 97.5   Health Agency Market Basket of Operating Costs, for the fiscal 
 97.6   year beginning July 1, compared to the previous fiscal year, 
 97.7   unless otherwise adjusted by statute.  The Home Health Agency 
 97.8   Market Basket of Operating Costs is published by Data Resources, 
 97.9   Inc.  The forecast to be used is the one published for the 
 97.10  calendar quarter beginning January 1, six months prior to the 
 97.11  beginning of the fiscal year for which rates are set.  The adult 
 97.12  foster care rate shall be considered a difficulty of care 
 97.13  payment and shall not include room and board. 
 97.14     ~~(f)~~ (g) The adult foster care daily rate for the elderly 
 97.15  and disabled waivers shall be negotiated between the county 
 97.16  agency and the foster care provider.  The rate established under 
 97.17  this section shall not exceed the state average monthly nursing 
 97.18  home payment for the case mix classification to which the 
 97.19  individual receiving foster care is assigned, and it must allow 
 97.20  for other waiver and medical assistance home care services to be 
 97.21  authorized by the case manager. 
 97.22     ~~(g)~~ (h) The assisted living and residential care service 
 97.23  rates for elderly and ~~disabled~~ community alternatives for 
 97.24  disabled individuals (CADI) waivers shall be made to the vendor 
 97.25  as a monthly rate negotiated with the county agency.  The rate 
 97.26  shall not exceed the nonfederal share of the greater of either 
 97.27  the statewide or any of the geographic groups' weighted average 
 97.28  monthly medical assistance nursing facility payment rate of the 
 97.29  case mix resident class to which the elderly or disabled client 
 97.30  would be assigned under Minnesota Rules, parts 9549.0050 to 
 97.31  9549.0059, except for alternative care assisted living projects 
 97.32  established under Laws 1988, chapter 689, article 2, section 
 97.33  256, whose rates may not exceed 65 percent of the greater of 
 97.34  either the statewide or any of the geographic groups' weighted 
 97.35  average monthly medical assistance nursing facility payment rate 
 97.36  for the case mix resident class to which the elderly or disabled 
 98.1   client would be assigned under Minnesota Rules, parts 9549.0050 
 98.2   to 9549.0059.  The rate may not cover direct rent or food costs. 
 98.3      ~~(h)~~ (i) The county shall negotiate individual rates with 
 98.4   vendors and may be reimbursed for actual costs up to the greater 
 98.5   of the county's current approved rate or 60 percent of the 
 98.6   maximum rate in fiscal year 1994 and 65 percent of the maximum 
 98.7   rate in fiscal year 1995 for each service within each program. 
 98.8      ~~(i)~~ (j) On July 1, 1993, the commissioner shall increase 
 98.9   the maximum rate for home-delivered meals to $4.50 per meal. 
 98.10     ~~(j)~~ (k) Reimbursement for the medical assistance recipients 
 98.11  under the approved waiver shall be made from the medical 
 98.12  assistance account through the invoice processing procedures of 
 98.13  the department's Medicaid Management Information System (MMIS), 
 98.14  only with the approval of the client's case manager.  The budget 
 98.15  for the state share of the Medicaid expenditures shall be 
 98.16  forecasted with the medical assistance budget, and shall be 
 98.17  consistent with the approved waiver.  
 98.18     ~~(k)~~ (l) Beginning July 1, 1991, the state shall reimburse 
 98.19  counties according to the payment schedule in section 256.025 
 98.20  for the county share of costs incurred under this subdivision on 
 98.21  or after January 1, 1991, for individuals who are receiving 
 98.22  medical assistance. 
 98.23     Sec. 12.  Minnesota Statutes 1994, section 256B.0915, 
 98.24  subdivision 5, is amended to read: 
 98.25     Subd. 5.  [REASSESSMENTS FOR WAIVER CLIENTS.] A 
 98.26  reassessment of a client served under the elderly or disabled 
 98.27  waiver must be conducted at least every ~~six~~ 12 months and at 
 98.28  other times when the case manager determines that there has been 
 98.29  significant change in the client's functioning.  This may 
 98.30  include instances where the client is discharged from the 
 98.31  hospital.  
 98.32     Sec. 13.  Minnesota Statutes 1994, section 256B.0915, is 
 98.33  amended by adding a subdivision to read: 
 98.34     Subd. 6.  [NOTIFICATION.] If the county of service is 
 98.35  different from the county of financial responsibility for an 
 98.36  elderly or disabled waiver client, the county of service must 
 99.1   notify the county of financial responsibility verbally or in 
 99.2   writing that the client is eligible to receive elderly or 
 99.3   disabled waiver services.  If the county of financial 
 99.4   responsibility requests additional information regarding the 
 99.5   client's eligibility for services, the county of service must 
 99.6   provide the requested information. 
 99.7      Sec. 14.  Minnesota Statutes 1994, section 256B.093, 
 99.8   subdivision 1, is amended to read: 
 99.9      Subdivision 1.  [STATE TRAUMATIC BRAIN INJURY PROGRAM.] The 
 99.10  commissioner of human services shall: 
 99.11     (1) ~~establish and~~ maintain statewide traumatic brain injury 
 99.12  program; 
 99.13     (2) designate a full-time position to supervise and 
 99.14  coordinate services and policies for persons with traumatic 
 99.15  brain injuries; 
 99.16     (3) contract with qualified agencies or employ staff to 
 99.17  provide statewide administrative case management and 
 99.18  consultation; 
 99.19     (4) ~~establish~~ maintain an advisory committee to provide 
 99.20  recommendations in a report to the commissioner regarding 
 99.21  program and service needs of persons with traumatic brain 
 99.22  injuries.  The advisory committee shall consist of no less than 
 99.23  ten members and no more than 30 members.  The commissioner shall 
 99.24  appoint all advisory committee members to one- or two-year terms 
 99.25  and appoint one member as chair; ~~and~~ 
 99.26     (5) ~~investigate the need for the development of rules or~~ 
 99.27  ~~statutes for:~~  
 99.28     ~~(i)~~ develop rules for traumatic brain injury home and 
 99.29  community-based services waiver; and 
 99.30     ~~(ii) traumatic brain injury services not covered by any~~ 
 99.31  ~~other statute or rule~~ (6) investigate present and potential 
 99.32  models of service coordination which can be delivered at the 
 99.33  local level.  
 99.34     Sec. 15.  Minnesota Statutes 1994, section 256B.093, 
 99.35  subdivision 2, is amended to read: 
 99.36     Subd. 2.  [ELIGIBILITY.] Persons eligible for traumatic