1.1 	A bill for an act
1.2 	relating to vocational rehabilitation; providing for rate increases for providers of 
1.3 	extended employment services; appropriating money;amending Minnesota Statutes 
1.4 	2016, section 268A.15, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2016, section 268A.15, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 8a.Provider rate increases. (a) Effective July 1, 2019, the commissioner shall 
1.9 	provide an annual growth factor adjustment of no less than a three percent increase for 
1.10 	providers of extended employment services for persons with severe disabilities. The 
1.11 	commissioner shall increase reimbursement rates by the percentage of this adjustment.
1.12 	(b) The commissioner of management and budget shall include an annual inflationary 
1.13 	adjustment in reimbursement rates for providers of extended employment services for 
1.14 	persons with severe disabilities as a budget change request in each biennial detailed 
1.15 	expenditure budget submitted to the legislature under section 16A.11.

1.16 	Sec. 2. EXTENDED EMPLOYMENT FOR PERSONS WITH SEVERE 
1.17 	DISABILITIES; APPROPRIATION.
 1.18 	$10,330,000 in fiscal year 2018 and $10,330,000 in fiscal year 2019 from the workforce 
1.19 	development fund and $5,995,000 in fiscal year 2018 and $5,995,000 in fiscal year 2019 
1.20 	from the general fund are appropriated to the commissioner of employment and economic 
1.21 	development for extended employment services for persons with severe disabilities under 
1.22 	Minnesota Statutes, section 268A.15. Of the amounts appropriated from the workforce 
2.1 	development fund, $3,500,000 in fiscal year 2018 and $3,500,000 in fiscal year 2019 are 
2.2 	for rate increases to providers of extended employment services.