1.1 	A bill for an act
1.2 	relating to human services; modifying provisions related to fair hearings and 
1.3 	internal audits; creating the Cultural and Ethnic Leadership Communities 
1.4 	Council; removing obsolete language; making technical changes;amending 
1.5 	Minnesota Statutes 2012, sections 245.4661, subdivisions 2, 6; 245.482, 
1.6 	subdivision 5; 256.01, subdivision 2; 256.017, subdivision 1; 256.045, 
1.7 	subdivisions 1, 3, 4; 256.0451, subdivisions 5, 13, 22, 24; 256B.055, subdivision 
1.8 	12; 256B.057, subdivision 3b; 256D.02, subdivision 12a; 256J.30, subdivisions 
1.9 	8, 9; 256J.37, subdivision 3a; 256J.395, subdivision 1; 256J.575, subdivision 3; 
1.10 	256J.626, subdivisions 6, 7, 8; 256J.72, subdivisions 1, 3; proposing coding 
1.11 	for new law in Minnesota Statutes, chapter 256; repealing Minnesota Statutes 
1.12 	2012, sections 245.461, subdivision 3; 245.463, subdivisions 1, 3, 4; 256.01, 
1.13 	subdivisions 2a, 13, 23a; 256B.0185; 256D.02, subdivision 4a; 256J.575, 
1.14 	subdivision 4; 256J.74, subdivision 4; 256L.04, subdivision 9.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	ARTICLE 1
1.17 	FAIR HEARINGS

1.18 	Section 1. Minnesota Statutes 2012, section 256.045, subdivision 1, is amended to read:
1.19 		Subdivision 1.Powers of the state agency. The commissioner of human services 
1.20 	may appoint one or more state human services referees to conduct hearings and 
1.21 	recommend orders in accordance with subdivisions 3, 3a, 3b, 4a, and 5. Human services 
1.22 	referees designated pursuant to this section may administer oaths and shall be under the 
1.23 	control and supervision of the commissioner of human services and shall not be a part 
1.24 	of the Office of Administrative Hearings established pursuant to sections 14.48 to 14.56.
1.25 	 The commissioner shall only appoint as a full-time human services judge an individual 
1.26 	who is licensed to practice law in Minnesota and who is:
1.27 	(1) in active status;
2.1 	(2) an inactive resident;
2.2 	(3) retired;
2.3 	(4) on disabled status; or
2.4 	(5) on retired senior status.

2.5 	EFFECTIVE DATE. This section is effective July 1, 2013.

2.6 	Sec. 2. Minnesota Statutes 2012, section 256.045, subdivision 3, is amended to read:
2.7 		Subd. 3.State agency hearings. (a) State agency hearings are available for the 
2.8 	following:
2.9 	(1) any person applying for, receiving or having received public assistance, medical 
2.10 	care, or a program of social services granted by the state agency or a county agency or 
2.11 	the federal Food Stamp Act whose application for assistance is denied, not acted upon 
2.12 	with reasonable promptness, or whose assistance is suspended, reduced, terminated, or 
2.13 	claimed to have been incorrectly paid;
2.14 	(2) any patient or relative aggrieved by an order of the commissioner under section 
2.15 	252.27;
2.16 	(3) a party aggrieved by a ruling of a prepaid health plan;
2.17 	(4) except as provided under chapter 245C, any individual or facility determined by a 
2.18 	lead investigative agency to have maltreated a vulnerable adult under section 626.557 after 
2.19 	they have exercised their right to administrative reconsideration under section 626.557;
2.20 	(5) any person whose claim for foster care payment according to a placement of the 
2.21 	child resulting from a child protection assessment under section 626.556 is denied or not 
2.22 	acted upon with reasonable promptness, regardless of funding source;
2.23 	(6) any person to whom a right of appeal according to this section is given by other 
2.24 	provision of law;
2.25 	(7) an applicant aggrieved by an adverse decision to an application for a hardship 
2.26 	waiver under section 256B.15;
2.27 	(8) an applicant aggrieved by an adverse decision to an application or redetermination 
2.28 	for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;
2.29 	(9) except as provided under chapter 245A, an individual or facility determined 
2.30 	to have maltreated a minor under section 626.556, after the individual or facility has 
2.31 	exercised the right to administrative reconsideration under section 626.556;
2.32 	(10) except as provided under chapter 245C, an individual disqualified under 
2.33 	sections 245C.14 and 245C.15, following a reconsideration decision issued under section 
2.34 	245C.23, on the basis of serious or recurring maltreatment; a preponderance of the 
2.35 	evidence that the individual has committed an act or acts that meet the definition of any of 
3.1 	the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports 
3.2 	required under section 626.556, subdivision 3, or 626.557, subdivision 3. Hearings 
3.3 	regarding a maltreatment determination under clause (4) or (9) and a disqualification under 
3.4 	this clause in which the basis for a disqualification is serious or recurring maltreatment, 
3.5 	shall be consolidated into a single fair hearing. In such cases, the scope of review by 
3.6 	the human services referee shall include both the maltreatment determination and the 
3.7 	disqualification. The failure to exercise the right to an administrative reconsideration shall 
3.8 	not be a bar to a hearing under this section if federal law provides an individual the right to 
3.9 	a hearing to dispute a finding of maltreatment~~. Individuals and organizations specified in~~ 
3.10 	~~this section may contest the specified action, decision, or final disposition before the state~~ 
3.11 	~~agency by submitting a written request for a hearing to the state agency within 30 days~~ 
3.12 	~~after receiving written notice of the action, decision, or final disposition, or within 90 days~~ 
3.13 	~~of such written notice if the applicant, recipient, patient, or relative shows good cause why~~ 
3.14 	~~the request was not submitted within the 30-day time limit~~; or
3.15 	(11) any person with an outstanding debt resulting from receipt of public assistance, 
3.16 	medical care, or the federal Food Stamp Act who is contesting a setoff claim by the 
3.17 	Department of Human Services or a county agency. The scope of the appeal is the validity 
3.18 	of the claimant agency's intention to request a setoff of a refund under chapter 270A 
3.19 	against the debt.
3.20 	(b) The hearing for an individual or facility under paragraph (a), clause (4), (9), or 
3.21 	(10), is the only administrative appeal to the final agency determination specifically, 
3.22 	including a challenge to the accuracy and completeness of data under section 13.04. 
3.23 	Hearings requested under paragraph (a), clause (4), apply only to incidents of maltreatment 
3.24 	that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing 
3.25 	homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a 
3.26 	contested case proceeding under the provisions of chapter 14. Hearings requested under 
3.27 	paragraph (a), clause (9), apply only to incidents of maltreatment that occur on or after 
3.28 	July 1, 1997. A hearing for an individual or facility under paragraph (a), ~~clause~~ clauses 
3.29 	(4), (9), and (10), is only available when there is no ~~juvenile court or adult criminal~~ district 
3.30 	court action pending. If such action is filed in ~~either~~ district court while an administrative 
3.31 	review is pending~~,~~ that arises out of some or all of the events or circumstances on which 
3.32 	the appeal is based the administrative review must be suspended until the judicial actions 
3.33 	are completed. If the ~~juvenile court action or criminal charge is~~ district court proceedings 
3.34 	are completed, dismissed, or ~~the criminal action~~ overturned, the matter may be considered 
3.35 	in an administrative hearing.
4.1 	(c) For purposes of this section, bargaining unit grievance procedures are not an 
4.2 	administrative appeal.
4.3 	(d) The scope of hearings involving claims to foster care payments under paragraph 
4.4 	(a), clause (5), shall be limited to the issue of whether the county is legally responsible for a 
4.5 	child's placement under court order or voluntary placement agreement and, if so, the correct 
4.6 	amount of foster care payment to be made on the child's behalf and shall not include review 
4.7 	of the propriety of the county's child protection determination or child placement decision.
4.8 	(e) A vendor of medical care as defined in section 256B.02, subdivision 7, or a 
4.9 	vendor under contract with a county agency to provide social services is not a party and 
4.10 	may not request a hearing under this section, except if assisting a recipient as provided in 
4.11 	subdivision 4.
4.12 	(f) An applicant or recipient is not entitled to receive social services beyond the 
4.13 	services prescribed under chapter 256M or other social services the person is eligible 
4.14 	for under state law.
4.15 	(g) The commissioner may summarily affirm the county or state agency's proposed 
4.16 	action without a hearing when the sole issue is an automatic change due to a change in 
4.17 	state or federal law.
4.18 	(h) Unless federal or Minnesota law specifies a different time frame in which to file 
4.19 	an appeal, an individual or organization specified in this section may contest the specified 
4.20 	action, decision, or final disposition before the state agency by submitting a written request 
4.21 	for a hearing to the state agency within 30 days after receiving written notice of the action, 
4.22 	decision, or final disposition, or within 60 days of such written notice if the applicant, 
4.23 	recipient, patient, or relative shows good cause why the request was not submitted within 
4.24 	the 30-day time limit. Good cause exists when the individual has an injury or illness, a 
4.25 	death or serious illness in the individual's immediate family, an emergency, or when 
4.26 	unforeseeable events that reasonably prevent the individual and any person or entity 
4.27 	authorized to act for the individual from filing the appeal within 30 days after receipt of 
4.28 	the notice of action. The individual filing the appeal has the burden of proving good cause 
4.29 	by a preponderance of the evidence. The individual, the individual's representative, and 
4.30 	the individual's advocate are under a continuing duty to notify the department in writing of 
4.31 	any changes in their correct names, current addresses, and telephone numbers listed in 
4.32 	their written request for a hearing within ten days after the change occurs.

4.33 	Sec. 3. Minnesota Statutes 2012, section 256.045, subdivision 4, is amended to read:
4.34 		Subd. 4.Conduct of hearings. (a) All hearings held pursuant to subdivision 3, 3a, 
4.35 	3b, or 4a shall be conducted according to the provisions of the federal Social Security 
5.1 	Act and the regulations implemented in accordance with that act to enable this state to 
5.2 	qualify for federal grants-in-aid, and according to the rules and written policies of the 
5.3 	commissioner of human services. County agencies shall install equipment necessary to 
5.4 	conduct telephone hearings. A state human services referee may schedule a telephone 
5.5 	conference hearing when the distance or time required to travel to the county agency 
5.6 	offices will cause a delay in the issuance of an order, or to promote efficiency, or at the 
5.7 	mutual request of the parties. Hearings may be conducted by telephone conferences unless 
5.8 	the applicant, recipient, former recipient, person, or facility contesting maltreatment 
5.9 	objects. A human services judge may hold in-person hearings by interactive video 
5.10 	technology unless the appellant has a physical or mental condition that substantially and 
5.11 	materially impairs the appellant's ability to take part in a hearing using that technology.
5.12 	 The hearing shall not be held earlier than five days after filing of the required notice with 
5.13 	the county or state agency. The state human services referee shall notify all interested 
5.14 	persons of the time, date, and location of the hearing at least five days before the date of 
5.15 	the hearing. Interested persons may be represented by legal counsel or other representative 
5.16 	of their choice, including a provider of therapy services, at the hearing and may appear 
5.17 	personally, testify and offer evidence, and examine and cross-examine witnesses. The 
5.18 	applicant, recipient, former recipient, person, or facility contesting maltreatment shall have 
5.19 	the opportunity to examine the contents of the case file and all documents and records to 
5.20 	be used by the county or state agency at the hearing at a reasonable time before the date of 
5.21 	the hearing and during the hearing. In hearings under subdivision 3, paragraph (a), clauses 
5.22 	(4), (8), and (9), either party may subpoena the private data relating to the investigation 
5.23 	prepared by the agency under section 626.556 or 626.557 that is not otherwise accessible 
5.24 	under section 13.04, provided the identity of the reporter may not be disclosed.
5.25 	(b) The private data obtained by subpoena in a hearing under subdivision 3, 
5.26 	paragraph (a), clause (4), (8), or (9), must be subject to a protective order which prohibits 
5.27 	its disclosure for any other purpose outside the hearing provided for in this section without 
5.28 	prior order of the district court. Disclosure without court order is punishable by a sentence 
5.29 	of not more than 90 days imprisonment or a fine of not more than $1,000, or both. These 
5.30 	restrictions on the use of private data do not prohibit access to the data under section 13.03, 
5.31 	subdivision 6. Except for appeals under subdivision 3, paragraph (a), clauses (4), (5), (8), 
5.32 	and (9), upon request, the county agency shall provide reimbursement for transportation, 
5.33 	child care, photocopying, medical assessment, witness fee, and other necessary and 
5.34 	reasonable costs incurred by the applicant, recipient, or former recipient in connection with 
5.35 	the appeal. All evidence, except that privileged by law, commonly accepted by reasonable 
5.36 	people in the conduct of their affairs as having probative value with respect to the issues 
6.1 	shall be submitted at the hearing and such hearing shall not be "a contested case" within 
6.2 	the meaning of section 14.02, subdivision 3. The agency must present its evidence prior to 
6.3 	or at the hearing, and may not submit evidence after the hearing except by agreement of 
6.4 	the parties at the hearing, provided the petitioner has the opportunity to respond.
6.5 	(c) In hearings under subdivision 3, paragraph (a), clauses (4), (8), and (9), involving 
6.6 	determinations of maltreatment or disqualification made by more than one county agency, 
6.7 	by a county agency and a state agency, or by more than one state agency, the hearings 
6.8 	may be consolidated into a single fair hearing upon the consent of all parties and the state 
6.9 	human services referee.
6.10 	(d) For hearings under subdivision 3, paragraph (a), clause (4) or (10), involving a 
6.11 	vulnerable adult, the human services referee shall notify the vulnerable adult who is the 
6.12 	subject of the maltreatment determination and, if known, a guardian of the vulnerable adult 
6.13 	appointed under section 524.5-310, or a health care agent designated by the vulnerable 
6.14 	adult in a health care directive that is currently effective under section 145C.06 and whose 
6.15 	authority to make health care decisions is not suspended under section 524.5-310, of the 
6.16 	hearing. The notice must be sent by certified mail and inform the vulnerable adult of the 
6.17 	right to file a signed written statement in the proceedings. A guardian or health care agent 
6.18 	who prepares or files a written statement for the vulnerable adult must indicate in the 
6.19 	statement that the person is the vulnerable adult's guardian or health care agent and sign 
6.20 	the statement in that capacity. The vulnerable adult, the guardian, or the health care agent 
6.21 	may file a written statement with the human services referee hearing the case no later than 
6.22 	five business days before commencement of the hearing. The human services referee shall 
6.23 	include the written statement in the hearing record and consider the statement in deciding 
6.24 	the appeal. This subdivision does not limit, prevent, or excuse the vulnerable adult from 
6.25 	being called as a witness testifying at the hearing or grant the vulnerable adult, the guardian, 
6.26 	or health care agent a right to participate in the proceedings or appeal the human services 
6.27 	referee's decision in the case. The lead investigative agency must consider including the 
6.28 	vulnerable adult victim of maltreatment as a witness in the hearing. If the lead investigative 
6.29 	agency determines that participation in the hearing would endanger the well-being of the 
6.30 	vulnerable adult or not be in the best interests of the vulnerable adult, the lead investigative 
6.31 	agency shall inform the human services referee of the basis for this determination, which 
6.32 	must be included in the final order. If the human services referee is not reasonably able to 
6.33 	determine the address of the vulnerable adult, the guardian, or the health care agent, the 
6.34 	human services referee is not required to send a hearing notice under this subdivision.

6.35 	Sec. 4. Minnesota Statutes 2012, section 256.0451, subdivision 5, is amended to read:
7.1 		Subd. 5.Prehearing conferences. (a) The appeals referee prior to a fair hearing 
7.2 	appeal may hold a prehearing conference to further the interests of justice or efficiency 
7.3 	and must include the person involved in the appeal. A person involved in a fair hearing 
7.4 	appeal or the agency may request a prehearing conference. The prehearing conference 
7.5 	may be conducted by telephone, in person, or in writing. The prehearing conference 
7.6 	may address the following:
7.7 	(1) disputes regarding access to files, evidence, subpoenas, or testimony;
7.8 	(2) the time required for the hearing or any need for expedited procedures or decision;
7.9 	(3) identification or clarification of legal or other issues that may arise at the hearing;
7.10 	(4) identification of and possible agreement to factual issues; and
7.11 	(5) scheduling and any other matter which will aid in the proper and fair functioning 
7.12 	of the hearing.
7.13 	(b) The appeals referee shall make a record or otherwise contemporaneously 
7.14 	summarize the prehearing conference in writing, which shall be sent to both the person 
7.15 	involved in the hearing, the person's attorney or authorized representative, and the agency.
7.16 	 A human services judge may make and issue rulings and orders while the appeal is 
7.17 	pending. During the pendency of the appeal these rulings and orders are not subject to a 
7.18 	request for reconsideration or appeal and are otherwise only subject to review under 
7.19 	subdivision 24 and section 256.045, subdivision 7.

7.20 	Sec. 5. Minnesota Statutes 2012, section 256.0451, subdivision 13, is amended to read:
7.21 		Subd. 13.Failure to appear; good cause. If a person involved in a fair hearing 
7.22 	appeal fails to appear at the hearing, the appeals referee may dismiss the appeal. The 
7.23 	~~person~~ human services judge may reopen the appeal if within ten working days after the 
7.24 	date of the dismissal the person ~~submits~~ files information ~~to~~ in writing with the appeals 
7.25 	referee to show good cause for not appearing. Good cause can be shown when there is:
7.26 	(1) a death or serious illness in the person's family;
7.27 	(2) a personal injury or illness which reasonably prevents the person from attending 
7.28 	the hearing;
7.29 	(3) an emergency, crisis, or unforeseen event which reasonably prevents the person 
7.30 	from attending the hearing;
7.31 	(4) an obligation or responsibility of the person which a reasonable person, in the 
7.32 	conduct of one's affairs, could reasonably determine takes precedence over attending 
7.33 	the hearing;
7.34 	(5) lack of or failure to receive timely notice of the hearing in the preferred language 
7.35 	of the person involved in the hearing; and
8.1 	(6) excusable neglect, excusable inadvertence, excusable mistake, or other good 
8.2 	cause as determined by the appeals referee.

8.3 	Sec. 6. Minnesota Statutes 2012, section 256.0451, subdivision 22, is amended to read:
8.4 		Subd. 22.Decisions. A timely, written decision must be issued in every appeal. 
8.5 	Each decision must contain a clear ruling on the issues presented in the appeal hearing 
8.6 	and should contain a ruling only on questions directly presented by the appeal and the 
8.7 	arguments raised in the appeal.
8.8 	(a) A written decision must be issued within 90 days of the date the person involved 
8.9 	requested the appeal unless a shorter time is required by law. An additional 30 days is 
8.10 	provided in those cases where the commissioner refuses to accept the recommended 
8.11 	decision. In appeals of maltreatment determinations or disqualifications filed pursuant 
8.12 	to section 256.045, subdivision 3, paragraph (a), clause (4), (9), or (10), that also give 
8.13 	rise to possible licensing actions, the 90-day period for issuing final decisions does not 
8.14 	begin until the later of the date that the licensing authority provides notice to the appeals 
8.15 	division that the authority has made the final determination in the matter or the date the 
8.16 	appellant files the last appeal in the consolidated matters.
8.17 	(b) The decision must contain both findings of fact and conclusions of law, clearly 
8.18 	separated and identified. The findings of fact must be based on the entire record. Each 
8.19 	finding of fact made by the appeals referee shall be supported by a preponderance of 
8.20 	the evidence unless a different standard is required under the regulations of a particular 
8.21 	program. The "preponderance of the evidence" means, in light of the record as a whole, 
8.22 	the evidence leads the appeals referee to believe that the finding of fact is more likely to be 
8.23 	true than not true. The legal claims or arguments of a participant do not constitute either a 
8.24 	finding of fact or a conclusion of law, except to the extent the appeals referee adopts an 
8.25 	argument as a finding of fact or conclusion of law.
8.26 	The decision shall contain at least the following:
8.27 	(1) a listing of the date and place of the hearing and the participants at the hearing;
8.28 	(2) a clear and precise statement of the issues, including the dispute under 
8.29 	consideration and the specific points which must be resolved in order to decide the case;
8.30 	(3) a listing of the material, including exhibits, records, reports, placed into evidence 
8.31 	at the hearing, and upon which the hearing decision is based;
8.32 	(4) the findings of fact based upon the entire hearing record. The findings of fact 
8.33 	must be adequate to inform the participants and any interested person in the public of the 
8.34 	basis of the decision. If the evidence is in conflict on an issue which must be resolved, the 
8.35 	findings of fact must state the reasoning used in resolving the conflict;
9.1 	(5) conclusions of law that address the legal authority for the hearing and the ruling, 
9.2 	and which give appropriate attention to the claims of the participants to the hearing;
9.3 	(6) a clear and precise statement of the decision made resolving the dispute under 
9.4 	consideration in the hearing; and
9.5 	(7) written notice of the right to appeal to district court or to request reconsideration, 
9.6 	and of the actions required and the time limits for taking appropriate action to appeal to 
9.7 	district court or to request a reconsideration.
9.8 	(c) The appeals referee shall not independently investigate facts or otherwise rely on 
9.9 	information not presented at the hearing. The appeals referee may not contact other agency 
9.10 	personnel, except as provided in subdivision 18. The appeals referee's recommended 
9.11 	decision must be based exclusively on the testimony and evidence presented at the hearing, 
9.12 	and legal arguments presented, and the appeals referee's research and knowledge of the law.
9.13 	(d) The commissioner will review the recommended decision and accept or refuse to 
9.14 	accept the decision according to section 256.045, subdivision 5.

9.15 	Sec. 7. Minnesota Statutes 2012, section 256.0451, subdivision 24, is amended to read:
9.16 		Subd. 24.Reconsideration. (a) Reconsideration may be requested within ~~30~~ ten 
9.17 	working days of the date of the commissioner's final order. If reconsideration is requested, 
9.18 	the other participants in the appeal shall be informed of the request. The person seeking 
9.19 	reconsideration has the burden to demonstrate why the matter should be reconsidered. 
9.20 	The request for reconsideration may include legal argument and may include proposed 
9.21 	additional evidence supporting the request upon showing that it was not available at the 
9.22 	time of the hearing and could not have been discovered through the exercise of reasonable 
9.23 	diligence prior to that time. The other participants shall be sent a copy of all material 
9.24 	submitted in support of the request for reconsideration and must be given ten days to 
9.25 	respond.
9.26 	~~(a)~~ (b) When the requesting party raises a question as to the appropriateness of the 
9.27 	findings of fact, the commissioner shall review the entire record.
9.28 	~~(b)~~ (c) When the requesting party questions the appropriateness of a conclusion 
9.29 	of law, the commissioner shall consider the recommended decision, the decision under 
9.30 	reconsideration, and the material submitted in connection with the reconsideration. The 
9.31 	commissioner shall review the remaining record as necessary to issue a reconsidered 
9.32 	decision.
9.33 	~~(c)~~ (d) The commissioner shall issue a written decision on reconsideration in a 
9.34 	timely fashion. The decision must clearly inform the parties that this constitutes the final 
10.1 	administrative decision, advise the participants of the right to seek judicial review, and 
10.2 	the deadline for doing so.

10.3 	Sec. 8. REVISOR'S INSTRUCTION.
 10.4 	The revisor is instructed to substitute the term "human services judge" for the term 
10.5 	"appeals examiner," "human services referee," "referee," or any similar terms referring 
10.6 	to the human services referees appointed by the commissioner of human services under 
10.7 	Minnesota Statutes, section 256.045, subdivision 1, wherever they appear in Minnesota 
10.8 	Statutes, sections 256.045, 256.0451, 256.046, or elsewhere in Minnesota Statutes.

10.9 	ARTICLE 2
10.10 	CULTURAL AND ETHNIC COMMUNITIES
10.11 	LEADERSHIP COUNCIL

10.12 	Section 1. [256.999] CULTURAL AND ETHNIC COMMUNITIES LEADERSHIP 
10.13 	COUNCIL.
10.14 		Subdivision 1.Establishment; purpose. There is hereby established the Cultural 
10.15 	and Ethnic Communities Leadership Council for the Department of Human Services. The 
10.16 	purpose of the council is to advise the commissioner of human services on reducing 
10.17 	disparities that affect racial and ethnic groups.
10.18 		Subd. 2.Members. (a) The council must consist of no fewer than 15 and no more 
10.19 	than 25 members appointed by the commissioner of human services, in consultation with 
10.20 	county, tribal, cultural, and ethnic communities; diverse program participants; and parent 
10.21 	representatives from these communities. The commissioner shall direct the development 
10.22 	of guidelines defining the membership of the council; setting out definitions; and 
10.23 	developing duties of the commissioner, the council, and council members regarding racial 
10.24 	and ethnic disparities reduction. The guidelines must be developed in consultation with:
10.25 	(1) the chairs of relevant committees; and
10.26 	(2) county, tribal, and cultural communities and program participants from these 
10.27 	communities.
10.28 	(b) Members must be appointed to allow for representation of the following groups:
10.29 	(1) racial and ethnic minority groups;
10.30 	(2) tribal service providers;
10.31 	(3) culturally and linguistically specific advocacy groups and service providers;
10.32 	(4) human services program participants;
10.33 	(5) public and private institutions;
10.34 	(6) parents of human services program participants;
11.1 	(7) members of the faith community;
11.2 	(8) Department of Human Services employees;
11.3 	(9) chairs of relevant legislative committees; and
11.4 	(10) any other group the commissioner deems appropriate to facilitate the goals 
11.5 	and duties of the council.
11.6 	(c) Notwithstanding section 15.059, each member of the council must be appointed to 
11.7 	either a one-year or two-year term. The commissioner shall appoint one member as chair.
11.8 	(d) Notwithstanding section 15.059, members of the council shall receive no 
11.9 	compensation for their services.
11.10 		Subd. 3.Duties of commissioner. (a) The commissioner of human services or the 
11.11 	commissioner's designee shall:
11.12 	(1) maintain the council established in this section;
11.13 	(2) supervise and coordinate policies for persons from racial, ethnic, cultural, 
11.14 	linguistic, and tribal communities who experience disparities in access and outcomes;
11.15 	(3) identify human services rules or statutes affecting persons from racial, ethnic, 
11.16 	cultural, linguistic, and tribal communities that may need to be revised;
11.17 	(4) investigate and implement cost-effective models of service delivery such as 
11.18 	careful adaptation of clinically proven services that constitute one strategy for increasing the 
11.19 	number of culturally relevant services available to currently underserved populations; and
11.20 	(5) based on recommendations of the council, review identified department 
11.21 	policies that maintain racial, ethnic, cultural, linguistic, and tribal disparities, and make 
11.22 	adjustments to ensure those disparities are not perpetuated.
11.23 	(b) The commissioner of human services or the commissioner's designee shall 
11.24 	consult with the council and receive recommendations from the council when meeting the 
11.25 	requirements in this subdivision.
11.26 		Subd. 4.Duties of council. The Cultural and Ethnic Communities Leadership 
11.27 	Council shall:
11.28 	(1) recommend to the commissioner for review identified policies in the Department 
11.29 	of Human Services that maintain racial, ethnic, cultural, linguistic, and tribal disparities;
11.30 	(2) identify issues regarding disparities by engaging diverse populations in human 
11.31 	services programs;
11.32 	(3) engage in mutual learning essential for achieving human services parity and 
11.33 	optimal wellness for service recipients;
11.34 	(4) raise awareness about human services disparities to the legislature and media;
11.35 	(5) provide technical assistance and consultation support to counties, private 
11.36 	nonprofit agencies, and other service providers to build their capacity to provide equitable 
12.1 	human services for persons from racial, ethnic, cultural, linguistic, and tribal communities 
12.2 	who experience disparities in access and outcomes;
12.3 	(6) provide technical assistance to promote statewide development of culturally 
12.4 	and linguistically appropriate, accessible, and cost-effective human services and related 
12.5 	policies;
12.6 	(7) provide training and outreach to facilitate access to culturally and linguistically 
12.7 	appropriate, accessible, and cost-effective human services to prevent disparities;
12.8 	(8) facilitate culturally appropriate and culturally sensitive admissions, continued 
12.9 	services, discharges, and utilization review for human services agencies and institutions;
12.10 	(9) form work groups to help carry out the duties of the council that include, but are 
12.11 	not limited to, persons who provide and receive services and representatives of advocacy 
12.12 	groups, and provide the work groups with clear guidelines, standardized parameters, and 
12.13 	tasks for the work groups to accomplish; and
12.14 	(10) promote information-sharing in the human services community and statewide.
12.15 		Subd. 5.Duties of council members. The members of the council shall:
12.16 	(1) attend and participate in scheduled meetings and be prepared by reviewing 
12.17 	meeting notes;
12.18 	(2) maintain open communication channels with respective constituencies;
12.19 	(3) identify and communicate issues and risks that could impact the timely 
12.20 	completion of tasks;
12.21 	(4) collaborate on disparity reduction efforts;
12.22 	(5) communicate updates of the council's work progress and status on the 
12.23 	Department of Human Services Web site; and
12.24 	(6) participate in any activities the council or chair deem appropriate and necessary 
12.25 	to facilitate the goals and duties of the council. 
12.26 		Subd. 6.Expiration. Notwithstanding section 15.059, the council does not expire 
12.27 	unless directed by the commissioner.

12.28 	ARTICLE 3
12.29 	INTERNAL AUDITS

12.30 	Section 1. Minnesota Statutes 2012, section 256.017, subdivision 1, is amended to read:
12.31 		Subdivision 1.Authority and purpose. The commissioner shall administer a 
12.32 	compliance system for the Minnesota family investment program, the food stamp or food 
12.33 	support program, emergency assistance, general assistance, medical assistance, ~~general~~ 
12.34 	~~assistance medical care,~~ emergency general assistance, Minnesota supplemental assistance, 
12.35 	preadmission screening, alternative care grants, ~~and~~ the child care assistance program, and 
13.1 	all other programs administered by the commissioner or on behalf of the commissioner
13.2 	 under the powers and authorities named in section 256.01, subdivision 2. The purpose of 
13.3 	the compliance system is to permit the commissioner to supervise the administration of 
13.4 	public assistance programs and to enforce timely and accurate distribution of benefits, 
13.5 	completeness of service and efficient and effective program management and operations, 
13.6 	to increase uniformity and consistency in the administration and delivery of public 
13.7 	assistance programs throughout the state, and to reduce the possibility of sanctions and 
13.8 	fiscal disallowances for noncompliance with federal regulations and state statutes. The 
13.9 	commissioner, or the commissioner's representative, may issue administrative subpoenas 
13.10 	as needed in administering the compliance system.
13.11 	The commissioner shall utilize training, technical assistance, and monitoring 
13.12 	activities, as specified in section 256.01, subdivision 2, to encourage county agency 
13.13 	compliance with written policies and procedures.

13.14 	ARTICLE 4
13.15 	TECHNICAL CHANGES

13.16 	Section 1. Minnesota Statutes 2012, section 245.4661, subdivision 2, is amended to read:
13.17 		Subd. 2.Program design and implementation. ~~(a)~~ The pilot projects shall be 
13.18 	established to design, plan, and improve the mental health service delivery system for 
13.19 	adults with serious and persistent mental illness that would:
13.20 	(1) provide an expanded array of services from which clients can choose services 
13.21 	appropriate to their needs;
13.22 	(2) be based on purchasing strategies that improve access and coordinate services 
13.23 	without cost shifting;
13.24 	(3) incorporate existing state facilities and resources into the community mental 
13.25 	health infrastructure through creative partnerships with local vendors; and
13.26 	(4) utilize existing categorical funding streams and reimbursement sources in 
13.27 	combined and creative ways, except appropriations to regional treatment centers and all 
13.28 	funds that are attributable to the operation of state-operated services are excluded unless 
13.29 	appropriated specifically by the legislature for a purpose consistent with this section or 
13.30 	section 246.0136, subdivision 1.
13.31 	~~(b) All projects funded by January 1, 1997, must complete the planning phase and be~~ 
13.32 	~~operational by June 30, 1997; all projects funded by January 1, 1998, must be operational~~ 
13.33 	~~by June 30, 1998.~~

13.34 	Sec. 2. Minnesota Statutes 2012, section 245.4661, subdivision 6, is amended to read:
14.1 		Subd. 6.Duties of commissioner. (a) For purposes of the pilot projects, the 
14.2 	commissioner shall facilitate integration of funds or other resources as needed and 
14.3 	requested by each project. These resources may include:
14.4 	~~(1) residential services funds administered under Minnesota Rules, parts 9535.2000~~ 
14.5 	~~to 9535.3000, in an amount to be determined by mutual agreement between the project's~~ 
14.6 	~~managing entity and the commissioner of human services after an examination of the~~ 
14.7 	~~county's historical utilization of facilities located both within and outside of the county~~ 
14.8 	~~and licensed under Minnesota Rules, parts 9520.0500 to 9520.0690;~~
14.9 	~~(2)~~ (1) community support services funds administered under Minnesota Rules, 
14.10 	parts 9535.1700 to 9535.1760;
14.11 	~~(3)~~ (2) other mental health special project funds;
14.12 	~~(4)~~ (3) medical assistance, general assistance medical care, MinnesotaCare and group 
14.13 	residential housing if requested by the project's managing entity, and if the commissioner 
14.14 	determines this would be consistent with the state's overall health care reform efforts; and
14.15 	~~(5)~~ (4) regional treatment center resources consistent with section 246.0136, 
14.16 	subdivision 1.
14.17 	(b) The commissioner shall consider the following criteria in awarding start-up and 
14.18 	implementation grants for the pilot projects:
14.19 	(1) the ability of the proposed projects to accomplish the objectives described in 
14.20 	subdivision 2;
14.21 	(2) the size of the target population to be served; and
14.22 	(3) geographical distribution.
14.23 	(c) The commissioner shall review overall status of the projects initiatives at least 
14.24 	every two years and recommend any legislative changes needed by January 15 of each 
14.25 	odd-numbered year.
14.26 	(d) The commissioner may waive administrative rule requirements which are 
14.27 	incompatible with the implementation of the pilot project.
14.28 	(e) The commissioner may exempt the participating counties from fiscal sanctions 
14.29 	for noncompliance with requirements in laws and rules which are incompatible with the 
14.30 	implementation of the pilot project.
14.31 	(f) The commissioner may award grants to an entity designated by a county board or 
14.32 	group of county boards to pay for start-up and implementation costs of the pilot project.

14.33 	Sec. 3. Minnesota Statutes 2012, section 245.482, subdivision 5, is amended to read:
14.34 		Subd. 5.Commissioner's consolidated reporting recommendations. The 
14.35 	commissioner's reports of February 15, 1990, required under ~~sections 245.461, subdivision~~ 
15.1 	~~3, and~~ section245.487, subdivision 4, shall include recommended measures to provide 
15.2 	coordinated, interdepartmental efforts to ensure early identification and intervention for 
15.3 	children with, or at risk of developing, emotional disturbance, to improve the efficiency 
15.4 	of the mental health funding mechanisms, and to standardize and consolidate fiscal and 
15.5 	program reporting. The recommended measures must provide that client needs are met 
15.6 	in an effective and accountable manner and that state and county resources are used as 
15.7 	efficiently as possible. The commissioner shall consider the advice of the state advisory 
15.8 	council and the children's subcommittee in developing these recommendations.

15.9 	Sec. 4. Minnesota Statutes 2012, section 256.01, subdivision 2, is amended to read:
15.10 		Subd. 2.Specific powers. Subject to the provisions of section 241.021, subdivision 
15.11 	2, the commissioner of human services shall carry out the specific duties in paragraphs (a) 
15.12 	through (cc):
15.13 	(a) Administer and supervise all forms of public assistance provided for by state law 
15.14 	and other welfare activities or services as are vested in the commissioner. Administration 
15.15 	and supervision of human services activities or services includes, but is not limited to, 
15.16 	assuring timely and accurate distribution of benefits, completeness of service, and quality 
15.17 	program management. In addition to administering and supervising human services 
15.18 	activities vested by law in the department, the commissioner shall have the authority to:
15.19 	(1) require county agency participation in training and technical assistance programs 
15.20 	to promote compliance with statutes, rules, federal laws, regulations, and policies 
15.21 	governing human services;
15.22 	(2) monitor, on an ongoing basis, the performance of county agencies in the 
15.23 	operation and administration of human services, enforce compliance with statutes, rules, 
15.24 	federal laws, regulations, and policies governing welfare services and promote excellence 
15.25 	of administration and program operation;
15.26 	(3) develop a quality control program or other monitoring program to review county 
15.27 	performance and accuracy of benefit determinations;
15.28 	(4) require county agencies to make an adjustment to the public assistance benefits 
15.29 	issued to any individual consistent with federal law and regulation and state law and rule 
15.30 	and to issue or recover benefits as appropriate;
15.31 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
15.32 	administrative reimbursement according to the procedures set forth in section 256.017;
15.33 	(6) make contracts with and grants to public and private agencies and organizations, 
15.34 	both profit and nonprofit, and individuals, using appropriated funds; and
16.1 	(7) enter into contractual agreements with federally recognized Indian tribes with 
16.2 	a reservation in Minnesota to the extent necessary for the tribe to operate a federally 
16.3 	approved family assistance program or any other program under the supervision of the 
16.4 	commissioner. The commissioner shall consult with the affected county or counties in 
16.5 	the contractual agreement negotiations, if the county or counties wish to be included, 
16.6 	in order to avoid the duplication of county and tribal assistance program services. The 
16.7 	commissioner may establish necessary accounts for the purposes of receiving and 
16.8 	disbursing funds as necessary for the operation of the programs.
16.9 	(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, 
16.10 	regulation, and policy necessary to county agency administration of the programs.
16.11 	(c) Administer and supervise all child welfare activities; promote the enforcement of 
16.12 	laws protecting disabled, dependent, neglected and delinquent children, and children born 
16.13 	to mothers who were not married to the children's fathers at the times of the conception 
16.14 	nor at the births of the children; license and supervise child-caring and child-placing 
16.15 	agencies and institutions; supervise the care of children in boarding and foster homes or 
16.16 	in private institutions; and generally perform all functions relating to the field of child 
16.17 	welfare now vested in the State Board of Control.
16.18 	(d) Administer and supervise all noninstitutional service to disabled persons, 
16.19 	including those who are visually impaired, hearing impaired, or physically impaired 
16.20 	or otherwise disabled. The commissioner may provide and contract for the care and 
16.21 	treatment of qualified indigent children in facilities other than those located and available 
16.22 	at state hospitals when it is not feasible to provide the service in state hospitals.
16.23 	(e) Assist and actively cooperate with other departments, agencies and institutions, 
16.24 	local, state, and federal, by performing services in conformity with the purposes of Laws 
16.25 	1939, chapter 431.
16.26 	(f) Act as the agent of and cooperate with the federal government in matters of 
16.27 	mutual concern relative to and in conformity with the provisions of Laws 1939, chapter 
16.28 	431, including the administration of any federal funds granted to the state to aid in the 
16.29 	performance of any functions of the commissioner as specified in Laws 1939, chapter 431, 
16.30 	and including the promulgation of rules making uniformly available medical care benefits 
16.31 	to all recipients of public assistance, at such times as the federal government increases its 
16.32 	participation in assistance expenditures for medical care to recipients of public assistance, 
16.33 	the cost thereof to be borne in the same proportion as are grants of aid to said recipients.
16.34 	(g) Establish and maintain any administrative units reasonably necessary for the 
16.35 	performance of administrative functions common to all divisions of the department.
17.1 	(h) Act as designated guardian of both the estate and the person of all the wards of 
17.2 	the state of Minnesota, whether by operation of law or by an order of court, without any 
17.3 	further act or proceeding whatever, except as to persons committed as developmentally 
17.4 	disabled. For children under the guardianship of the commissioner or a tribe in Minnesota 
17.5 	recognized by the Secretary of the Interior whose interests would be best served by 
17.6 	adoptive placement, the commissioner may contract with a licensed child-placing agency 
17.7 	or a Minnesota tribal social services agency to provide adoption services. A contract 
17.8 	with a licensed child-placing agency must be designed to supplement existing county 
17.9 	efforts and may not replace existing county programs or tribal social services, unless the 
17.10 	replacement is agreed to by the county board and the appropriate exclusive bargaining 
17.11 	representative, tribal governing body, or the commissioner has evidence that child 
17.12 	placements of the county continue to be substantially below that of other counties. Funds 
17.13 	encumbered and obligated under an agreement for a specific child shall remain available 
17.14 	until the terms of the agreement are fulfilled or the agreement is terminated.
17.15 	(i) Act as coordinating referral and informational center on requests for service for 
17.16 	newly arrived immigrants coming to Minnesota.
17.17 	(j) The specific enumeration of powers and duties as hereinabove set forth shall in no 
17.18 	way be construed to be a limitation upon the general transfer of powers herein contained.
17.19 	(k) Establish county, regional, or statewide schedules of maximum fees and charges 
17.20 	which may be paid by county agencies for medical, dental, surgical, hospital, nursing and 
17.21 	nursing home care and medicine and medical supplies under all programs of medical 
17.22 	care provided by the state and for congregate living care under the income maintenance 
17.23 	programs.
17.24 	(l) Have the authority to conduct and administer experimental projects to test methods 
17.25 	and procedures of administering assistance and services to recipients or potential recipients 
17.26 	of public welfare. To carry out such experimental projects, it is further provided that the 
17.27 	commissioner of human services is authorized to waive the enforcement of existing specific 
17.28 	statutory program requirements, rules, and standards in one or more counties. The order 
17.29 	establishing the waiver shall provide alternative methods and procedures of administration, 
17.30 	shall not be in conflict with the basic purposes, coverage, or benefits provided by law, and 
17.31 	in no event shall the duration of a project exceed four years. It is further provided that no 
17.32 	order establishing an experimental project as authorized by the provisions of this section 
17.33 	shall become effective until the following conditions have been met:
17.34 	(1) the secretary of health and human services of the United States has agreed, for 
17.35 	the same project, to waive state plan requirements relative to statewide uniformity; and
18.1 	(2) a comprehensive plan, including estimated project costs, shall be approved by 
18.2 	the Legislative Advisory Commission and filed with the commissioner of administration.
18.3 	(m) According to federal requirements, establish procedures to be followed by 
18.4 	local welfare boards in creating citizen advisory committees, including procedures for 
18.5 	selection of committee members.
18.6 	(n) Allocate federal fiscal disallowances or sanctions which are based on quality 
18.7 	control error rates for the aid to families with dependent children program formerly 
18.8 	codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the 
18.9 	following manner:
18.10 	(1) one-half of the total amount of the disallowance shall be borne by the county 
18.11 	boards responsible for administering the programs. For the medical assistance and the 
18.12 	AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be 
18.13 	shared by each county board in the same proportion as that county's expenditures for the 
18.14 	sanctioned program are to the total of all counties' expenditures for the AFDC program 
18.15 	formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the 
18.16 	food stamp program, sanctions shall be shared by each county board, with 50 percent of 
18.17 	the sanction being distributed to each county in the same proportion as that county's 
18.18 	administrative costs for food stamps are to the total of all food stamp administrative costs 
18.19 	for all counties, and 50 percent of the sanctions being distributed to each county in the 
18.20 	same proportion as that county's value of food stamp benefits issued are to the total of 
18.21 	all benefits issued for all counties. Each county shall pay its share of the disallowance 
18.22 	to the state of Minnesota. When a county fails to pay the amount due hereunder, the 
18.23 	commissioner may deduct the amount from reimbursement otherwise due the county, or 
18.24 	the attorney general, upon the request of the commissioner, may institute civil action 
18.25 	to recover the amount due; and
18.26 	(2) notwithstanding the provisions of clause (1), if the disallowance results from 
18.27 	knowing noncompliance by one or more counties with a specific program instruction, and 
18.28 	that knowing noncompliance is a matter of official county board record, the commissioner 
18.29 	may require payment or recover from the county or counties, in the manner prescribed in 
18.30 	clause (1), an amount equal to the portion of the total disallowance which resulted from the 
18.31 	noncompliance, and may distribute the balance of the disallowance according to clause (1).
18.32 	(o) Develop and implement special projects that maximize reimbursements and 
18.33 	result in the recovery of money to the state. For the purpose of recovering state money, 
18.34 	the commissioner may enter into contracts with third parties. Any recoveries that result 
18.35 	from projects or contracts entered into under this paragraph shall be deposited in the 
18.36 	state treasury and credited to a special account until the balance in the account reaches 
19.1 	$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 
19.2 	transferred and credited to the general fund. All money in the account is appropriated to 
19.3 	the commissioner for the purposes of this paragraph.
19.4 	(p) Have the authority to make direct payments to facilities providing shelter 
19.5 	to women and their children according to section 256D.05, subdivision 3. Upon 
19.6 	the written request of a shelter facility that has been denied payments under section 
19.7 	256D.05, subdivision 3, the commissioner shall review all relevant evidence and make 
19.8 	a determination within 30 days of the request for review regarding issuance of direct 
19.9 	payments to the shelter facility. Failure to act within 30 days shall be considered a 
19.10 	determination not to issue direct payments.
19.11 	(q) Have the authority to establish and enforce the following county reporting 
19.12 	requirements:
19.13 	(1) the commissioner shall establish fiscal and statistical reporting requirements 
19.14 	necessary to account for the expenditure of funds allocated to counties for human 
19.15 	services programs. When establishing financial and statistical reporting requirements, the 
19.16 	commissioner shall evaluate all reports, in consultation with the counties, to determine if 
19.17 	the reports can be simplified or the number of reports can be reduced;
19.18 	(2) the county board shall submit monthly or quarterly reports to the department 
19.19 	as required by the commissioner. Monthly reports are due no later than 15 working days 
19.20 	after the end of the month. Quarterly reports are due no later than 30 calendar days after 
19.21 	the end of the quarter, unless the commissioner determines that the deadline must be 
19.22 	shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines 
19.23 	or risking a loss of federal funding. Only reports that are complete, legible, and in the 
19.24 	required format shall be accepted by the commissioner;
19.25 	(3) if the required reports are not received by the deadlines established in clause (2), 
19.26 	the commissioner may delay payments and withhold funds from the county board until 
19.27 	the next reporting period. When the report is needed to account for the use of federal 
19.28 	funds and the late report results in a reduction in federal funding, the commissioner shall 
19.29 	withhold from the county boards with late reports an amount equal to the reduction in 
19.30 	federal funding until full federal funding is received;
19.31 	(4) a county board that submits reports that are late, illegible, incomplete, or not 
19.32 	in the required format for two out of three consecutive reporting periods is considered 
19.33 	noncompliant. When a county board is found to be noncompliant, the commissioner 
19.34 	shall notify the county board of the reason the county board is considered noncompliant 
19.35 	and request that the county board develop a corrective action plan stating how the 
19.36 	county board plans to correct the problem. The corrective action plan must be submitted 
20.1 	to the commissioner within 45 days after the date the county board received notice 
20.2 	of noncompliance;
20.3 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year 
20.4 	after the date the report was originally due. If the commissioner does not receive a report 
20.5 	by the final deadline, the county board forfeits the funding associated with the report for 
20.6 	that reporting period and the county board must repay any funds associated with the 
20.7 	report received for that reporting period;
20.8 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
20.9 	under clause (3) or (5) if the county demonstrates that the commissioner failed to 
20.10 	provide appropriate forms, guidelines, and technical assistance to enable the county to 
20.11 	comply with the requirements. If the county board disagrees with an action taken by the 
20.12 	commissioner under clause (3) or (5), the county board may appeal the action according 
20.13 	to sections 14.57 to 14.69; and
20.14 	(7) counties subject to withholding of funds under clause (3) or forfeiture or 
20.15 	repayment of funds under clause (5) shall not reduce or withhold benefits or services to 
20.16 	clients to cover costs incurred due to actions taken by the commissioner under clause 
20.17 	(3) or (5).
20.18 	(r) Allocate federal fiscal disallowances or sanctions for audit exceptions when 
20.19 	federal fiscal disallowances or sanctions are based on a statewide random sample in direct 
20.20 	proportion to each county's claim for that period.
20.21 	(s) Be responsible for ensuring the detection, prevention, investigation, and 
20.22 	resolution of fraudulent activities or behavior by applicants, recipients, and other 
20.23 	participants in the human services programs administered by the department.
20.24 	(t) Require county agencies to identify overpayments, establish claims, and utilize 
20.25 	all available and cost-beneficial methodologies to collect and recover these overpayments 
20.26 	in the human services programs administered by the department.
20.27 	~~(u) Have the authority to administer a drug rebate program for drugs purchased~~ 
20.28 	~~pursuant to the prescription drug program established under section 256.955 after the~~ 
20.29 	~~beneficiary's satisfaction of any deductible established in the program. The commissioner~~ 
20.30 	~~shall require a rebate agreement from all manufacturers of covered drugs as defined in~~ 
20.31 	~~section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on~~ 
20.32 	~~or after July 1, 2002, must include rebates for individuals covered under the prescription~~ 
20.33 	~~drug program who are under 65 years of age. For each drug, the amount of the rebate shall~~ 
20.34 	~~be equal to the rebate as defined for purposes of the federal rebate program in United~~ 
20.35 	~~States Code, title 42, section 1396r-8. The manufacturers must provide full payment~~ 
20.36 	~~within 30 days of receipt of the state invoice for the rebate within the terms and conditions~~ 
21.1 	~~used for the federal rebate program established pursuant to section 1927 of title XIX of~~ 
21.2 	~~the Social Security Act. The manufacturers must provide the commissioner with any~~ 
21.3 	~~information necessary to verify the rebate determined per drug. The rebate program shall~~ 
21.4 	~~utilize the terms and conditions used for the federal rebate program established pursuant to~~ 
21.5 	~~section 1927 of title XIX of the Social Security Act.~~
21.6 	~~(v)~~ (u) Have the authority to administer the federal drug rebate program for drugs 
21.7 	purchased under the medical assistance program as allowed by section 1927 of title XIX 
21.8 	of the Social Security Act and according to the terms and conditions of section 1927. 
21.9 	Rebates shall be collected for all drugs that have been dispensed or administered in an 
21.10 	outpatient setting and that are from manufacturers who have signed a rebate agreement 
21.11 	with the United States Department of Health and Human Services.
21.12 	~~(w)~~ (v) Have the authority to administer a supplemental drug rebate program for 
21.13 	drugs purchased under the medical assistance program. The commissioner may enter into 
21.14 	supplemental rebate contracts with pharmaceutical manufacturers and may require prior 
21.15 	authorization for drugs that are from manufacturers that have not signed a supplemental 
21.16 	rebate contract. Prior authorization of drugs shall be subject to the provisions of section 
21.17 	256B.0625, subdivision 13.
21.18 	~~(x)~~ (w) Operate the department's communication systems account established 
21.19 	in Laws 1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to 
21.20 	manage shared communication costs necessary for the operation of the programs the 
21.21 	commissioner supervises. A communications account may also be established for each 
21.22 	regional treatment center which operates communications systems. Each account must be 
21.23 	used to manage shared communication costs necessary for the operations of the programs 
21.24 	the commissioner supervises. The commissioner may distribute the costs of operating and 
21.25 	maintaining communication systems to participants in a manner that reflects actual usage. 
21.26 	Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and 
21.27 	other costs as determined by the commissioner. Nonprofit organizations and state, county, 
21.28 	and local government agencies involved in the operation of programs the commissioner 
21.29 	supervises may participate in the use of the department's communications technology and 
21.30 	share in the cost of operation. The commissioner may accept on behalf of the state any 
21.31 	gift, bequest, devise or personal property of any kind, or money tendered to the state for 
21.32 	any lawful purpose pertaining to the communication activities of the department. Any 
21.33 	money received for this purpose must be deposited in the department's communication 
21.34 	systems accounts. Money collected by the commissioner for the use of communication 
21.35 	systems must be deposited in the state communication systems account and is appropriated 
21.36 	to the commissioner for purposes of this section.
22.1 	~~(y)~~ (x) Receive any federal matching money that is made available through the 
22.2 	medical assistance program for the consumer satisfaction survey. Any federal money 
22.3 	received for the survey is appropriated to the commissioner for this purpose. The 
22.4 	commissioner may expend the federal money received for the consumer satisfaction 
22.5 	survey in either year of the biennium.
22.6 	~~(z)~~ (y) Designate community information and referral call centers and incorporate 
22.7 	cost reimbursement claims from the designated community information and referral 
22.8 	call centers into the federal cost reimbursement claiming processes of the department 
22.9 	according to federal law, rule, and regulations. Existing information and referral centers 
22.10 	provided by Greater Twin Cities United Way or existing call centers for which Greater 
22.11 	Twin Cities United Way has legal authority to represent, shall be included in these 
22.12 	designations upon review by the commissioner and assurance that these services are 
22.13 	accredited and in compliance with national standards. Any reimbursement is appropriated 
22.14 	to the commissioner and all designated information and referral centers shall receive 
22.15 	payments according to normal department schedules established by the commissioner 
22.16 	upon final approval of allocation methodologies from the United States Department of 
22.17 	Health and Human Services Division of Cost Allocation or other appropriate authorities.
22.18 	~~(aa)~~ (z) Develop recommended standards for foster care homes that address the 
22.19 	components of specialized therapeutic services to be provided by foster care homes with 
22.20 	those services.
22.21 	~~(bb)~~ (aa) Authorize the method of payment to or from the department as part of the 
22.22 	human services programs administered by the department. This authorization includes the 
22.23 	receipt or disbursement of funds held by the department in a fiduciary capacity as part of 
22.24 	the human services programs administered by the department.
22.25 	~~(cc) Have the authority to administer a drug rebate program for drugs purchased for~~ 
22.26 	~~persons eligible for general assistance medical care under section 256D.03, subdivision 3.~~ 
22.27 	~~For manufacturers that agree to participate in the general assistance medical care rebate~~ 
22.28 	~~program, the commissioner shall enter into a rebate agreement for covered drugs as~~ 
22.29 	~~defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the~~ 
22.30 	~~rebate shall be equal to the rebate as defined for purposes of the federal rebate program in~~ 
22.31 	~~United States Code, title 42, section 1396r-8. The manufacturers must provide payment~~ 
22.32 	~~within the terms and conditions used for the federal rebate program established under~~ 
22.33 	~~section 1927 of title XIX of the Social Security Act. The rebate program shall utilize~~ 
22.34 	~~the terms and conditions used for the federal rebate program established under section~~ 
22.35 	~~1927 of title XIX of the Social Security Act.~~
23.1 	~~Effective January 1, 2006, drug coverage under general assistance medical care shall~~ 
23.2 	~~be limited to those prescription drugs that:~~
23.3 	~~(1) are covered under the medical assistance program as described in section~~ 
23.4 	~~256B.0625, subdivisions 13 and 13d; and~~
23.5 	~~(2) are provided by manufacturers that have fully executed general assistance~~ 
23.6 	~~medical care rebate agreements with the commissioner and comply with such agreements.~~ 
23.7 	~~Prescription drug coverage under general assistance medical care shall conform to~~ 
23.8 	~~coverage under the medical assistance program according to section 256B.0625,~~ 
23.9 	~~subdivisions 13 to 13g.~~
23.10 	~~The rebate revenues collected under the drug rebate program are deposited in the~~ 
23.11 	~~general fund.~~

23.12 	Sec. 5. Minnesota Statutes 2012, section 256B.055, subdivision 12, is amended to read:
23.13 		Subd. 12.Disabled children. (a) A person is eligible for medical assistance if the 
23.14 	person is under age 19 and qualifies as a disabled individual under United States Code, 
23.15 	title 42, section 1382c(a), and would be eligible for medical assistance under the state 
23.16 	plan if residing in a medical institution, and the child requires a level of care provided in 
23.17 	a hospital, nursing facility, or intermediate care facility for persons with developmental 
23.18 	disabilities, for whom home care is appropriate, provided that the cost to medical 
23.19 	assistance under this section is not more than the amount that medical assistance would pay 
23.20 	for if the child resides in an institution. After the child is determined to be eligible under 
23.21 	this section, the commissioner shall review the child's disability under United States Code, 
23.22 	title 42, section 1382c(a) and level of care defined under this section no more often than 
23.23 	annually and may elect, based on the recommendation of health care professionals under 
23.24 	contract with the state medical review team, to extend the review of disability and level of 
23.25 	care up to a maximum of four years. The commissioner's decision on the frequency of 
23.26 	continuing review of disability and level of care is not subject to administrative appeal 
23.27 	under section 256.045. The county agency shall send a notice of disability review to the 
23.28 	enrollee six months prior to the date the recertification of disability is due. Nothing in this 
23.29 	subdivision shall be construed as affecting other redeterminations of medical assistance 
23.30 	eligibility under this chapter and annual cost-effective reviews under this section.
23.31 	(b) For purposes of this subdivision, "hospital" means an institution as defined 
23.32 	in section 144.696, subdivision 3, 144.55, subdivision 3, or Minnesota Rules, part 
23.33 	4640.3600, and licensed pursuant to sections 144.50 to 144.58. For purposes of this 
23.34 	subdivision, a child requires a level of care provided in a hospital if the child is determined 
23.35 	by the commissioner to need an extensive array of health services, including mental health 
24.1 	services, for an undetermined period of time, whose health condition requires frequent 
24.2 	monitoring and treatment by a health care professional or by a person supervised by a 
24.3 	health care professional, who would reside in a hospital or require frequent hospitalization 
24.4 	if these services were not provided, and the daily care needs are more complex than 
24.5 	a nursing facility level of care.
24.6 	A child with serious emotional disturbance requires a level of care provided in a 
24.7 	hospital if the commissioner determines that the individual requires 24-hour supervision 
24.8 	because the person exhibits recurrent or frequent suicidal or homicidal ideation or 
24.9 	behavior, recurrent or frequent psychosomatic disorders or somatopsychic disorders that 
24.10 	may become life threatening, recurrent or frequent severe socially unacceptable behavior 
24.11 	associated with psychiatric disorder, ongoing and chronic psychosis or severe, ongoing 
24.12 	and chronic developmental problems requiring continuous skilled observation, or severe 
24.13 	disabling symptoms for which office-centered outpatient treatment is not adequate, and 
24.14 	which overall severely impact the individual's ability to function.
24.15 	(c) For purposes of this subdivision, "nursing facility" means a facility which 
24.16 	provides nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to 
24.17 	sections 144A.02 to 144A.10, which is appropriate if a person is in active restorative 
24.18 	treatment; is in need of special treatments provided or supervised by a licensed nurse; or 
24.19 	has unpredictable episodes of active disease processes requiring immediate judgment 
24.20 	by a licensed nurse. For purposes of this subdivision, a child requires the level of care 
24.21 	provided in a nursing facility if the child is determined by the commissioner to meet 
24.22 	the requirements of the preadmission screening assessment document under section 
24.23 	256B.0911, adjusted to address age-appropriate standards for children age 18 and under.
24.24 	(d) For purposes of this subdivision, "intermediate care facility for persons with 
24.25 	developmental disabilities" or "ICF/MR" means a program licensed to provide services to 
24.26 	persons with developmental disabilities under section 252.28, and chapter 245A, and a 
24.27 	physical plant licensed as a supervised living facility under chapter 144, which together 
24.28 	are certified by the Minnesota Department of Health as meeting the standards in Code of 
24.29 	Federal Regulations, title 42, part 483, for an intermediate care facility which provides 
24.30 	services for persons with developmental disabilities who require 24-hour supervision 
24.31 	and active treatment for medical, behavioral, or habilitation needs. For purposes of this 
24.32 	subdivision, a child requires a level of care provided in an ICF/MR if the commissioner 
24.33 	finds that the child has a developmental disability in accordance with section 256B.092, is 
24.34 	in need of a 24-hour plan of care and active treatment similar to persons with developmental 
24.35 	disabilities, and there is a reasonable indication that the child will need ICF/MR services.
25.1 	(e) For purposes of this subdivision, a person requires the level of care provided 
25.2 	in a nursing facility if the person requires 24-hour monitoring or supervision and a plan 
25.3 	of mental health treatment because of specific symptoms or functional impairments 
25.4 	associated with a serious mental illness or disorder diagnosis, which meet severity criteria 
25.5 	for mental health established by the commissioner and published in March 1997 as 
25.6 	the Minnesota Mental Health Level of Care for Children and Adolescents with Severe 
25.7 	Emotional Disorders.
25.8 	(f) The determination of the level of care needed by the child shall be made by 
25.9 	the commissioner based on information supplied to the commissioner by the parent or 
25.10 	guardian, the child's physician or physicians, and other professionals as requested by the 
25.11 	commissioner. The commissioner shall establish a screening team to conduct the level of 
25.12 	care determinations according to this subdivision.
25.13 	(g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner 
25.14 	must assess the case to determine whether:
25.15 	(1) the child qualifies as a disabled individual under United States Code, title 42, 
25.16 	section 1382c(a), and would be eligible for medical assistance if residing in a medical 
25.17 	institution; and
25.18 	(2) the cost of medical assistance services for the child, if eligible under this 
25.19 	subdivision, would not be more than the cost to medical assistance if the child resides in a 
25.20 	medical institution to be determined as follows:
25.21 	(i) for a child who requires a level of care provided in an ICF/MR, the cost of 
25.22 	care for the child in an institution shall be determined using the average payment rate 
25.23 	established for the regional treatment centers that are certified as ICF's/MR;
25.24 	(ii) for a child who requires a level of care provided in an inpatient hospital setting 
25.25 	according to paragraph (b), cost-effectiveness shall be determined according to Minnesota 
25.26 	Rules, part 9505.3520, items F and G; and
25.27 	(iii) for a child who requires a level of care provided in a nursing facility according 
25.28 	to paragraph (c) or (e), cost-effectiveness shall be determined according to Minnesota 
25.29 	Rules, part 9505.3040, except that the nursing facility average rate shall be adjusted to 
25.30 	reflect rates which would be paid for children under age 16. The commissioner may 
25.31 	authorize an amount up to the amount medical assistance would pay for a child referred to 
25.32 	the commissioner by the preadmission screening team under section 256B.0911.
25.33 	~~(h) Children eligible for medical assistance services under section 256B.055,~~ 
25.34 	~~subdivision 12, as of June 30, 1995, must be screened according to the criteria in this~~ 
25.35 	~~subdivision prior to January 1, 1996. Children found to be ineligible may not be removed~~ 
25.36 	~~from the program until January 1, 1996.~~

26.1 	Sec. 6. Minnesota Statutes 2012, section 256B.057, subdivision 3b, is amended to read:
26.2 		Subd. 3b.Qualifying individuals. Beginning July 1, 1998, contingent upon federal 
26.3 	funding, a person who would otherwise be eligible as a qualified Medicare beneficiary 
26.4 	under subdivision 3, except that the person's income is in excess of the limit, is eligible as 
26.5 	a qualifying individual ~~according to the following criteria:~~.
26.6 	~~(1)~~ If the person's income is greater than 120 percent, but less than 135 percent of 
26.7 	the official federal poverty guidelines for the applicable family size, the person is eligible 
26.8 	for medical assistance reimbursement of Medicare Part B premiums~~; or~~.
26.9 	~~(2) if the person's income is equal to or greater than 135 percent but less than 175~~ 
26.10 	~~percent of the official federal poverty guidelines for the applicable family size, the person~~ 
26.11 	~~is eligible for medical assistance reimbursement of that portion of the Medicare Part B~~ 
26.12 	~~premium attributable to an increase in Part B expenditures which resulted from the shift of~~ 
26.13 	~~home care services from Medicare Part A to Medicare Part B under Public Law 105-33,~~ 
26.14 	~~section 4732, the Balanced Budget Act of 1997.~~
26.15 	The commissioner shall limit enrollment of qualifying individuals under this 
26.16 	subdivision according to the requirements of Public Law 105-33, section 4732.

26.17 	Sec. 7. Minnesota Statutes 2012, section 256D.02, subdivision 12a, is amended to read:
26.18 		Subd. 12a.Resident. (a) For purposes of eligibility for general assistance and 
26.19 	general assistance medical care, a person must be a resident of this state.
26.20 	(b) A "resident" is a person living in the state for at least 30 days with the intention of 
26.21 	making the person's home here and not for any temporary purpose. Time spent in a shelter 
26.22 	for battered women shall count toward satisfying the 30-day residency requirement. All 
26.23 	applicants for these programs are required to demonstrate the requisite intent and can do 
26.24 	so in any of the following ways:
26.25 	(1) by showing that the applicant maintains a residence at a verified address, other 
26.26 	than a place of public accommodation. An applicant may verify a residence address by 
26.27 	presenting a valid state driver's license, a state identification card, a voter registration card, 
26.28 	a rent receipt, a statement by the landlord, apartment manager, or homeowner verifying 
26.29 	that the individual is residing at the address, or other form of verification approved by 
26.30 	the commissioner; or
26.31 	(2) by verifying residence according to Minnesota Rules, part 9500.1219, subpart 
26.32 	3, item C.
26.33 	~~(c) For general assistance medical care, a county agency shall waive the 30-day~~ 
26.34 	~~residency requirement in cases of medical emergencies. For general assistance, a county~~ 
26.35 	~~shall waive the 30-day residency requirement where unusual hardship would result from~~ 
27.1 	~~denial of general assistance. For purposes of this subdivision, "unusual hardship" means~~ 
27.2 	~~the applicant is without shelter or is without available resources for food.~~
27.3 	~~The county agency must report to the commissioner within 30 days on any waiver~~ 
27.4 	~~granted under this section. The county shall not deny an application solely because the~~ 
27.5 	~~applicant does not meet at least one of the criteria in this subdivision, but shall continue to~~ 
27.6 	~~process the application and leave the application pending until the residency requirement~~ 
27.7 	~~is met or until eligibility or ineligibility is established.~~
27.8 	~~(d)~~ (c) For purposes of paragraph (c), the following definitions apply (1) "metropolitan 
27.9 	statistical area" is as defined by the United States Census Bureau; (2) "shelter" includes 
27.10 	any shelter that is located within the metropolitan statistical area containing the county 
27.11 	and for which the applicant is eligible, provided the applicant does not have to travel more 
27.12 	than 20 miles to reach the shelter and has access to transportation to the shelter. Clause (2) 
27.13 	does not apply to counties in the Minneapolis-St. Paul metropolitan statistical area.
27.14 	~~(e)~~ (d) Migrant workers as defined in section 256J.08 and, until March 31, 1998, 
27.15 	their immediate families are exempt from the residency requirements of this section, 
27.16 	provided the migrant worker provides verification that the migrant family worked in this 
27.17 	state within the last 12 months and earned at least $1,000 in gross wages during the time 
27.18 	the migrant worker worked in this state.
27.19 	~~(f)~~ (e) For purposes of eligibility for emergency general assistance, the 30-day 
27.20 	residency requirement under this section shall not be waived.
27.21 	~~(g)~~ (f) If any provision of this subdivision is enjoined from implementation or found 
27.22 	unconstitutional by any court of competent jurisdiction, the remaining provisions shall 
27.23 	remain valid and shall be given full effect.

27.24 	Sec. 8. Minnesota Statutes 2012, section 256J.30, subdivision 8, is amended to read:
27.25 		Subd. 8.Late MFIP household report forms. (a) Paragraphs (b) to (e) apply to the 
27.26 	reporting requirements in subdivision 7.
27.27 	(b) When the county agency receives an incomplete MFIP household report form, 
27.28 	the county agency must immediately return the incomplete form and clearly state what the 
27.29 	caregiver must do for the form to be complete.
27.30 	(c) The automated eligibility system must send a notice of proposed termination 
27.31 	of assistance to the assistance unit if a complete MFIP household report form is not 
27.32 	received by a county agency. The automated notice must be mailed to the caregiver by 
27.33 	approximately the 16th of the month. When a caregiver submits an incomplete form on 
27.34 	or after the date a notice of proposed termination has been sent, the termination is valid 
27.35 	unless the caregiver submits a complete form before the end of the month.
28.1 	(d) An assistance unit required to submit an MFIP household report form is considered 
28.2 	to have continued its application for assistance if a complete MFIP household report 
28.3 	form is received within a calendar month after the month in which the form was due and 
28.4 	assistance shall be paid for the period beginning with the first day of that calendar month.
28.5 	(e) A county agency must allow good cause exemptions from the reporting 
28.6 	requirements under ~~subdivisions~~ subdivision 5 ~~and 6~~ when any of the following factors 
28.7 	cause a caregiver to fail to provide the county agency with a completed MFIP household 
28.8 	report form before the end of the month in which the form is due:
28.9 	(1) an employer delays completion of employment verification;
28.10 	(2) a county agency does not help a caregiver complete the MFIP household report 
28.11 	form when the caregiver asks for help;
28.12 	(3) a caregiver does not receive an MFIP household report form due to mistake on 
28.13 	the part of the department or the county agency or due to a reported change in address;
28.14 	(4) a caregiver is ill, or physically or mentally incapacitated; or
28.15 	(5) some other circumstance occurs that a caregiver could not avoid with reasonable 
28.16 	care which prevents the caregiver from providing a completed MFIP household report 
28.17 	form before the end of the month in which the form is due.

28.18 	Sec. 9. Minnesota Statutes 2012, section 256J.30, subdivision 9, is amended to read:
28.19 		Subd. 9.Changes that must be reported. A caregiver must report the changes or 
28.20 	anticipated changes specified in clauses (1) to (16) within ten days of the date they occur, 
28.21 	at the time of the periodic recertification of eligibility under section 256J.32, subdivision 
28.22 	6, or within eight calendar days of a reporting period as in subdivision 5 ~~or 6~~, whichever 
28.23 	occurs first. A caregiver must report other changes at the time of the periodic recertification 
28.24 	of eligibility under section 256J.32, subdivision 6, or at the end of a reporting period under 
28.25 	subdivision 5 ~~or 6~~, as applicable. A caregiver must make these reports in writing to the 
28.26 	county agency. When a county agency could have reduced or terminated assistance for 
28.27 	one or more payment months if a delay in reporting a change specified under clauses (1) 
28.28 	to (15) had not occurred, the county agency must determine whether a timely notice 
28.29 	under section 256J.31, subdivision 4, could have been issued on the day that the change 
28.30 	occurred. When a timely notice could have been issued, each month's overpayment 
28.31 	subsequent to that notice must be considered a client error overpayment under section 
28.32 	256J.38. Calculation of overpayments for late reporting under clause (16) is specified in 
28.33 	section 256J.09, subdivision 9. Changes in circumstances which must be reported within 
28.34 	ten days must also be reported on the MFIP household report form for the reporting period 
28.35 	in which those changes occurred. Within ten days, a caregiver must report:
29.1 	(1) a change in initial employment;
29.2 	(2) a change in initial receipt of unearned income;
29.3 	(3) a recurring change in unearned income;
29.4 	(4) a nonrecurring change of unearned income that exceeds $30;
29.5 	(5) the receipt of a lump sum;
29.6 	(6) an increase in assets that may cause the assistance unit to exceed asset limits;
29.7 	(7) a change in the physical or mental status of an incapacitated member of the 
29.8 	assistance unit if the physical or mental status is the basis for reducing the hourly 
29.9 	participation requirements under section 256J.55, subdivision 1, or the type of activities 
29.10 	included in an employment plan under section 256J.521, subdivision 2;
29.11 	(8) a change in employment status;
29.12 	(9) information affecting an exception under section 256J.24, subdivision 9;
29.13 	(10) the marriage or divorce of an assistance unit member;
29.14 	(11) the death of a parent, minor child, or financially responsible person;
29.15 	(12) a change in address or living quarters of the assistance unit;
29.16 	(13) the sale, purchase, or other transfer of property;
29.17 	(14) a change in school attendance of a caregiver under age 20 or an employed child;
29.18 	(15) filing a lawsuit, a workers' compensation claim, or a monetary claim against a 
29.19 	third party; and
29.20 	(16) a change in household composition, including births, returns to and departures 
29.21 	from the home of assistance unit members and financially responsible persons, or a change 
29.22 	in the custody of a minor child.

29.23 	Sec. 10. Minnesota Statutes 2012, section 256J.37, subdivision 3a, is amended to read:
29.24 		Subd. 3a.Rental subsidies; unearned income. (a) Effective July 1, 2003, the 
29.25 	county agency shall count $50 of the value of public and assisted rental subsidies provided 
29.26 	through the Department of Housing and Urban Development (HUD) as unearned income 
29.27 	to the cash portion of the MFIP grant. The full amount of the subsidy must be counted as 
29.28 	unearned income when the subsidy is less than $50. The income from this subsidy shall 
29.29 	be budgeted according to section 256J.34.
29.30 	(b) The provisions of this subdivision shall not apply to an MFIP assistance unit 
29.31 	which includes a participant who is:
29.32 	(1) age 60 or older;
29.33 	(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 
29.34 	certified by a qualified professional when the illness, injury, or incapacity is expected 
30.1 	to continue for more than 30 days and severely limits the person's ability to obtain or 
30.2 	maintain suitable employment; or
30.3 	(3) a caregiver whose presence in the home is required due to the illness or 
30.4 	incapacity of another member in the assistance unit, a relative in the household, or a foster 
30.5 	child in the household when the illness or incapacity and the need for the participant's 
30.6 	presence in the home has been certified by a qualified professional and is expected to 
30.7 	continue for more than 30 days.
30.8 	(c) The provisions of this subdivision shall not apply to an MFIP assistance unit 
30.9 	where the parental caregiver is an SSI recipient.
30.10 	~~(d) Prior to implementing this provision, the commissioner must identify the MFIP~~ 
30.11 	~~participants subject to this provision and provide written notice to these participants at~~ 
30.12 	~~least 30 days before the first grant reduction. The notice must inform the participant of the~~ 
30.13 	~~basis for the potential grant reduction, the exceptions to the provision, if any, and inform~~ 
30.14 	~~the participant of the steps necessary to claim an exception. A person who is found not to~~ 
30.15 	~~meet one of the exceptions to the provision must be notified and informed of the right to a~~ 
30.16 	~~fair hearing under section 256J.40. The notice must also inform the participant that the~~ 
30.17 	~~participant may be eligible for a rent reduction resulting from a reduction in the MFIP~~ 
30.18 	~~grant and encourage the participant to contact the local housing authority.~~

30.19 	Sec. 11. Minnesota Statutes 2012, section 256J.395, subdivision 1, is amended to read:
30.20 		Subdivision 1.Vendor payment. (a) Effective July 1, 1997, when a county is 
30.21 	required to provide assistance to a participant in vendor form for shelter costs and utilities 
30.22 	under this chapter~~,~~ or chapter ~~256,~~ 256D, ~~or 256K,~~ the cost of utilities for a given family 
30.23 	may be assumed to be:
30.24 	(1) the average of the actual monthly cost of utilities for that family for the prior 
30.25 	12 months at the family's current residence, if applicable;
30.26 	(2) the monthly plan amount, if any, set by the local utilities for that family at the 
30.27 	family's current residence; or
30.28 	(3) the estimated monthly utility costs for the dwelling in which the family currently 
30.29 	resides.
30.30 	(b) For purposes of this section, "utility" means any of the following: municipal 
30.31 	water and sewer service; electric, gas, or heating fuel service; or wood, if that is the 
30.32 	heating source.
30.33 	(c) In any instance where a vendor payment for rent is directed to a landlord not 
30.34 	legally entitled to the payment, the county social services agency shall immediately 
31.1 	institute proceedings to collect the amount of the vendored rent payment, which shall be 
31.2 	considered a debt under section 270A.03, subdivision 5.

31.3 	Sec. 12. Minnesota Statutes 2012, section 256J.575, subdivision 3, is amended to read:
31.4 		Subd. 3.Eligibility. (a) The following MFIP participants are eligible for the 
31.5 	services under this section:
31.6 	(1) a participant who meets the requirements for or has been granted a hardship 
31.7 	extension under section 256J.425, subdivision 2 or 3, except that it is not necessary for 
31.8 	the participant to have reached or be approaching 60 months of eligibility for this section 
31.9 	to apply;
31.10 	(2) a participant who is applying for Supplemental Security Income or Social 
31.11 	Security disability insurance;
31.12 	(3) a participant who is a noncitizen who has been in the United States for 12 or 
31.13 	fewer months; and
31.14 	(4) a participant who is age 60 or older.
31.15 	~~(b) Families must meet all other eligibility requirements for MFIP established in~~ 
31.16 	~~this chapter. Families are eligible for financial assistance to the same extent as if they~~ 
31.17 	~~were participating in MFIP.~~
31.18 	~~(c)~~ (b) A participant under paragraph (a), clause (3), must be provided with English 
31.19 	as a second language opportunities and skills training for up to 12 months. After 12 
31.20 	months, the case manager and participant must determine whether the participant should 
31.21 	continue with English as a second language classes or skills training, or both, and continue 
31.22 	to receive family stabilization services.
31.23 	~~(d)~~ (c) If a county agency or employment services provider has information that 
31.24 	an MFIP participant may meet the eligibility criteria set forth in this subdivision, the 
31.25 	county agency or employment services provider must assist the participant in obtaining 
31.26 	the documentation necessary to determine eligibility.

31.27 	Sec. 13. Minnesota Statutes 2012, section 256J.626, subdivision 6, is amended to read:
31.28 		Subd. 6.Base allocation to counties and tribes; definitions. (a) For purposes of 
31.29 	this section, the following terms have the meanings given.
31.30 	(1) "2002 historic spending base" means the commissioner's determination of 
31.31 	the sum of the reimbursement related to fiscal year 2002 of county or tribal agency 
31.32 	expenditures for the base programs listed in clause (6), items (i) through (iv), and earnings 
31.33 	related to calendar year 2002 in the base program listed in clause (6), item (v), and the 
32.1 	amount of spending in fiscal year 2002 in the base program listed in clause (6), item (vi), 
32.2 	issued to or on behalf of persons residing in the county or tribal service delivery area.
32.3 	(2) "Adjusted caseload factor" means a factor weighted:
32.4 	(i) 47 percent on the MFIP cases in each county at four points in time in the most 
32.5 	recent 12-month period for which data is available multiplied by the county's caseload 
32.6 	difficulty factor; and
32.7 	(ii) 53 percent on the count of adults on MFIP in each county and tribe at four points 
32.8 	in time in the most recent 12-month period for which data is available multiplied by the 
32.9 	county or tribe's caseload difficulty factor.
32.10 	(3) "Caseload difficulty factor" means a factor determined by the commissioner for 
32.11 	each county and tribe based upon the self-support index described in section 256J.751, 
32.12 	subdivision 2, clause (6).
32.13 	(4) "Initial allocation" means the amount potentially available to each county or tribe 
32.14 	based on the formula in paragraphs (b) through (d).
32.15 	(5) "Final allocation" means the amount available to each county or tribe based on 
32.16 	the formula in paragraphs (b) through (d), after adjustment by subdivision 7.
32.17 	(6) "Base programs" means the:
32.18 	(i) MFIP employment and training services under Minnesota Statutes 2002, section 
32.19 	256J.62, subdivision 1, in effect June 30, 2002;
32.20 	(ii) bilingual employment and training services to refugees under Minnesota Statutes 
32.21 	2002, section 256J.62, subdivision 6, in effect June 30, 2002;
32.22 	(iii) work literacy language programs under Minnesota Statutes 2002, section 
32.23 	256J.62, subdivision 7, in effect June 30, 2002;
32.24 	(iv) supported work program authorized in Laws 2001, First Special Session chapter 
32.25 	9, article 17, section 2, in effect June 30, 2002;
32.26 	(v) administrative aid program under section 256J.76 in effect December 31, 2002; 
32.27 	and
32.28 	(vi) emergency assistance program under Minnesota Statutes 2002, section 256J.48, 
32.29 	in effect June 30, 2002.
32.30 	(b) The commissioner shall~~:~~
32.31 	~~(1) beginning July 1, 2003, determine the initial allocation of funds available under~~ 
32.32 	~~this section according to clause (2);~~
32.33 	~~(2) allocate all of the funds available for the period beginning July 1, 2003, and~~ 
32.34 	~~ending December 31, 2004, to each county or tribe in proportion to the county's or tribe's~~ 
32.35 	~~share of the statewide 2002 historic spending base;~~
33.1 	~~(3) determine for calendar year 2005 the initial allocation of funds to be made~~ 
33.2 	~~available under this section in proportion to the county or tribe's initial allocation for the~~ 
33.3 	~~period of July 1, 2003, to December 31, 2004;~~
33.4 	~~(4) determine for calendar year 2006 the initial allocation of funds to be made~~ 
33.5 	~~available under this section based 90 percent on the proportion of the county or tribe's~~ 
33.6 	~~share of the statewide 2002 historic spending base and ten percent on the proportion of~~ 
33.7 	~~the county or tribe's share of the adjusted caseload factor;~~
33.8 	~~(5) determine for calendar year 2007 the initial allocation of funds to be made~~ 
33.9 	~~available under this section based 70 percent on the proportion of the county or tribe's~~ 
33.10 	~~share of the statewide 2002 historic spending base and 30 percent on the proportion of the~~ 
33.11 	~~county or tribe's share of the adjusted caseload factor; and~~
33.12 	~~(6)~~ determine for calendar year 2008 and subsequent years the initial allocation of 
33.13 	funds to be made available under this section based 50 percent on the proportion of the 
33.14 	county or tribe's share of the statewide 2002 historic spending base and 50 percent on the 
33.15 	proportion of the county or tribe's share of the adjusted caseload factor.
33.16 	(c) With the commencement of a new or expanded tribal TANF program or an 
33.17 	agreement under section 256.01, subdivision 2, paragraph (g), in which some or all of 
33.18 	the responsibilities of particular counties under this section are transferred to a tribe, 
33.19 	the commissioner shall:
33.20 	(1) in the case where all responsibilities under this section are transferred to a tribal 
33.21 	program, determine the percentage of the county's current caseload that is transferring to a 
33.22 	tribal program and adjust the affected county's allocation accordingly; and
33.23 	(2) in the case where a portion of the responsibilities under this section are 
33.24 	transferred to a tribal program, the commissioner shall consult with the affected county or 
33.25 	counties to determine an appropriate adjustment to the allocation.
33.26 	(d) Effective January 1, 2005, counties and tribes will have their final allocations 
33.27 	adjusted based on the performance provisions of subdivision 7.

33.28 	Sec. 14. Minnesota Statutes 2012, section 256J.626, subdivision 7, is amended to read:
33.29 		Subd. 7.Performance base funds. (a) For the purpose of this section, the following 
33.30 	terms have the meanings given.
33.31 	(1) "Caseload Reduction Credit" (CRC) means the measure of how much Minnesota 
33.32 	TANF and separate state program caseload has fallen relative to federal fiscal year 2005 
33.33 	based on caseload data from October 1 to September 30.
33.34 	(2) "TANF participation rate target" means a 50 percent participation rate reduced by 
33.35 	the CRC for the previous year.
34.1 	(b) ~~For calendar year 2010 and yearly thereafter,~~ Each county and tribe will be 
34.2 	allocated 95 percent of their initial calendar year allocation. Counties and tribes will be 
34.3 	allocated additional funds based on performance as follows:
34.4 	(1) a county or tribe that achieves the TANF participation rate target or a five 
34.5 	percentage point improvement over the previous year's TANF participation rate under 
34.6 	section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive months for 
34.7 	the most recent year for which the measurements are available, will receive an additional 
34.8 	allocation equal to 2.5 percent of its initial allocation;
34.9 	(2) a county or tribe that performs within or above its range of expected performance 
34.10 	on the annualized three-year self-support index under section 256J.751, subdivision 2, 
34.11 	clause (6), will receive an additional allocation equal to 2.5 percent of its initial allocation; 
34.12 	and
34.13 	(3) a county or tribe that does not achieve the TANF participation rate target or 
34.14 	a five percentage point improvement over the previous year's TANF participation rate 
34.15 	under section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive 
34.16 	months for the most recent year for which the measurements are available, will not 
34.17 	receive an additional 2.5 percent of its initial allocation until after negotiating a multiyear 
34.18 	improvement plan with the commissioner; or
34.19 	(4) a county or tribe that does not perform within or above its range of expected 
34.20 	performance on the annualized three-year self-support index under section 256J.751, 
34.21 	subdivision 2, clause (6), will not receive an additional allocation equal to 2.5 percent 
34.22 	of its initial allocation until after negotiating a multiyear improvement plan with the 
34.23 	commissioner.
34.24 	(c) For calendar year 2009 and yearly thereafter, performance-based funds for a 
34.25 	federally approved tribal TANF program in which the state and tribe have in place a contract 
34.26 	under section 256.01, addressing consolidated funding, will be allocated as follows:
34.27 	(1) a tribe that achieves the participation rate approved in its federal TANF plan 
34.28 	using the average of 12 consecutive months for the most recent year for which the 
34.29 	measurements are available, will receive an additional allocation equal to 2.5 percent of 
34.30 	its initial allocation; and
34.31 	(2) a tribe that performs within or above its range of expected performance on the 
34.32 	annualized three-year self-support index under section 256J.751, subdivision 2, clause (6), 
34.33 	will receive an additional allocation equal to 2.5 percent of its initial allocation; or
34.34 	(3) a tribe that does not achieve the participation rate approved in its federal TANF 
34.35 	plan using the average of 12 consecutive months for the most recent year for which the 
34.36 	measurements are available, will not receive an additional allocation equal to 2.5 percent 
35.1 	of its initial allocation until after negotiating a multiyear improvement plan with the 
35.2 	commissioner; or
35.3 	(4) a tribe that does not perform within or above its range of expected performance 
35.4 	on the annualized three-year self-support index under section 256J.751, subdivision 
35.5 	2, clause (6), will not receive an additional allocation equal to 2.5 percent until after 
35.6 	negotiating a multiyear improvement plan with the commissioner.
35.7 	(d) Funds remaining unallocated after the performance-based allocations in paragraph 
35.8 	(b) are available to the commissioner for innovation projects under subdivision 5.
35.9 	 (1) If available funds are insufficient to meet county and tribal allocations under 
35.10 	paragraph (b), the commissioner may make available for allocation funds that are 
35.11 	unobligated and available from the innovation projects through the end of the current 
35.12 	biennium.
35.13 	(2) If after the application of clause (1) funds remain insufficient to meet county and 
35.14 	tribal allocations under paragraph (b), the commissioner must proportionally reduce the 
35.15 	allocation of each county and tribe with respect to their maximum allocation available 
35.16 	under paragraph (b).

35.17 	Sec. 15. Minnesota Statutes 2012, section 256J.626, subdivision 8, is amended to read:
35.18 		Subd. 8.Reporting requirement and reimbursement. (a) The commissioner shall 
35.19 	specify requirements for reporting according to section 256.01, subdivision 2, clause (17). 
35.20 	Each county or tribe shall be reimbursed for eligible expenditures up to the limit of its 
35.21 	allocation and subject to availability of funds.
35.22 	(b) Reimbursements for county administrative-related expenditures determined 
35.23 	through the income maintenance random moment time study shall be reimbursed at a 
35.24 	rate of 50 percent of eligible expenditures.
35.25 	(c) The commissioner of human services shall review county and tribal agency 
35.26 	expenditures of the MFIP consolidated fund as appropriate and may reallocate 
35.27 	unencumbered or unexpended money appropriated under this section to those county and 
35.28 	tribal agencies that can demonstrate a need for additional money ~~as follows:~~.
35.29 	~~(1) to the extent that particular county or tribal allocations are reduced from the~~ 
35.30 	~~previous year's amount due to the phase-in under subdivision 6, paragraph (b), clauses (4)~~ 
35.31 	~~to (6), those tribes or counties would have first priority for reallocated funds; and~~
35.32 	~~(2) to the extent that unexpended funds are insufficient to cover demonstrated need,~~ 
35.33 	~~funds will be prorated to those counties and tribes in relation to demonstrated need.~~

35.34 	Sec. 16. Minnesota Statutes 2012, section 256J.72, subdivision 1, is amended to read:
36.1 		Subdivision 1.Nondisplacement protection. For job assignments under jobs 
36.2 	programs established under this chapter or chapter 256~~,~~ or 256D, ~~or 256K,~~ the county 
36.3 	agency must provide written notification to and obtain the written concurrence of the 
36.4 	appropriate exclusive bargaining representatives with respect to job duties covered under 
36.5 	collective bargaining agreements and ensure that no work assignment under this chapter 
36.6 	or chapter 256~~,~~ or 256D~~, or 256K~~ results in:
36.7 	(1) termination, layoff, or reduction of the work hours of an employee for the 
36.8 	purpose of hiring an individual under this section;
36.9 	(2) the hiring of an individual if any other person is on layoff, including seasonal 
36.10 	layoff, from the same or a substantially equivalent job;
36.11 	(3) any infringement of the promotional opportunities of any currently employed 
36.12 	individual;
36.13 	(4) the impairment of existing contract for services of collective bargaining 
36.14 	agreements; or
36.15 	(5) a participant filling an established unfilled position vacancy, except for on-the-job 
36.16 	training.
36.17 	The written notification must be provided to the appropriate exclusive bargaining 
36.18 	representatives at least 14 days in advance of placing recipients in temporary public 
36.19 	service employment. The notice must include the number of individuals involved, their 
36.20 	work locations and anticipated hours of work, a summary of the tasks to be performed, 
36.21 	and a description of how the individuals will be trained and supervised.

36.22 	Sec. 17. Minnesota Statutes 2012, section 256J.72, subdivision 3, is amended to read:
36.23 		Subd. 3.Status of participant. A participant may not work in a temporary public 
36.24 	service or community service job for a public employer for more than 67 working days or 
36.25 	536 hours, whichever is greater, as part of a work program established under this chapter, 
36.26 	~~or~~ chapter 256, or chapter 256D~~, or 256K~~. A participant who exceeds the time limits in 
36.27 	this subdivision is a public employee, as that term is used in chapter 179A. Upon the 
36.28 	written request of the exclusive bargaining representative, a county or public service 
36.29 	employer shall make available to the affected exclusive bargaining representative a report 
36.30 	of hours worked by participants in temporary public service or community service jobs.

36.31 	Sec. 18.  REPEALER.
 36.32 	Minnesota Statutes 2012, sections 245.461, subdivision 3; 245.463, subdivisions 
36.33 	1, 3, and 4; 256.01, subdivisions 2a, 13, and 23a; 256B.0185; 256D.02, subdivision 4a; 
36.34 	256J.575, subdivision 4; 256J.74, subdivision 4; and 256L.04, subdivision 9, are repealed.