1.1 	A bill for an act
1.2 	relating to human services; making technical changes; modifying commissioner's 
1.3 	duties, county board duties, education programs, safety requirements, licensing 
1.4 	requirements, disqualification provisions, chemical dependency care, agency 
1.5 	appeals and hearings, day treatment services, alternative care funding, clinical 
1.6 	infrastructures, property costs, co-payments and coinsurance, adoption 
1.7 	provisions, children in need of protection;amending Minnesota Statutes 2004, 
1.8 	sections 144.225, subdivision 2b; 245A.04, subdivision 11; 254A.03, subdivision 
1.9 	3; 254A.16, subdivision 2; 254B.02, subdivisions 1, 5; 254B.03, subdivisions 
1.10 	1, 3; 254B.06, subdivision 3; 256.0451, subdivisions 1, 3, 11, 19; 256B.0625, 
1.11 	subdivision 23; 256B.0913, subdivision 1; 256B.0943, subdivisions 9, 11; 
1.12 	256B.431, subdivisions 1, 3f, 17e; 260B.157, subdivision 1; Minnesota Statutes 
1.13 	2005 Supplement, sections 245.4874; 245A.14, subdivision 12; 245A.18, 
1.14 	subdivision 2; 245C.07; 245C.13, subdivision 2; 245C.15, subdivisions 2, 
1.15 	3; 245C.22, subdivision 7; 245C.24, subdivision 3; 256.046, subdivision 1; 
1.16 	256B.0625, subdivision 13c; 256B.0913, subdivision 4; 256B.0943, subdivisions 
1.17 	6, 12; 256L.03, subdivision 5; 259.67, subdivision 4; 260.012; 626.556, 
1.18 	subdivision 2;  Laws 2005, chapter 98, article 3, section 25; repealing Minnesota 
1.19 	Statutes 2004, sections 252.21; 252.22; 252.23; 252.24, subdivisions 1, 2, 3, 
1.20 	4; 252.25; 252.261; 254A.02, subdivisions 7, 9, 12, 14, 15, 16; 254A.085; 
1.21 	254A.086; 254A.12; 254A.14, subdivisions 1, 2, 3; 254A.15; 254A.16, 
1.22 	subdivision 5; 254A.175; 254A.18; Minnesota Statutes 2005 Supplement, 
1.23 	section 252.24, subdivision 5; Minnesota Rules, part 9503.0035, subpart 2.
1.24 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.25 	Section 1. Minnesota Statutes 2004, section 144.225, subdivision 2b, is amended to 
1.26 	read:
1.27 		Subd. 2b.Commissioner of health; duties. Notwithstanding the designation of 
1.28 	certain of this data as confidential under subdivision 2 or private under subdivision 2a, 
1.29 	the commissioner shall give the commissioner of human services access to birth record 
1.30 	data and data contained in recognitions of parentage prepared according to section  257.75
1.31 	necessary to enable the commissioner of human services to identify a child who is subject 
2.1 	to threatened injury, as defined in section  626.556, subdivision 2, paragraph ~~(l)~~ (n), by 
2.2 	a person responsible for the child's care, as defined in section  626.556, subdivision 2, 
2.3 	paragraph ~~(b), clause (1)~~ (e). The commissioner shall be given access to all data included 
2.4 	on official birth records. 

2.5 	Sec. 2. Minnesota Statutes 2005 Supplement, section 245.4874, is amended to read:
2.6 	245.4874 DUTIES OF COUNTY BOARD.
2.7 	(a) The county board must:
2.8 	(1) develop a system of affordable and locally available children's mental health 
2.9 	services according to sections 245.487 to 245.4887;
2.10 	(2) establish a mechanism providing for interagency coordination as specified in 
2.11 	section 245.4875, subdivision 6;
2.12 	(3) consider the assessment of unmet needs in the county as reported by the local 
2.13 	children's mental health advisory council under section 245.4875, subdivision 5, paragraph 
2.14 	(b), clause (3). The county shall provide, upon request of the local children's mental health 
2.15 	advisory council, readily available data to assist in the determination of unmet needs;
2.16 	(4) assure that parents and providers in the county receive information about how to 
2.17 	gain access to services provided according to sections 245.487 to 245.4887;
2.18 	(5) coordinate the delivery of children's mental health services with services 
2.19 	provided by social services, education, corrections, health, and vocational agencies to 
2.20 	improve the availability of mental health services to children and the cost-effectiveness of 
2.21 	their delivery;
2.22 	(6) assure that mental health services delivered according to sections 245.487
2.23 	to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic 
2.24 	assessment and individual treatment plan;
2.25 	(7) provide the community with information about predictors and symptoms of 
2.26 	emotional disturbances and how to access children's mental health services according to 
2.27 	sections 245.4877 and 245.4878;
2.28 	(8) provide for case management services to each child with severe emotional 
2.29 	disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881, 
2.30 	subdivisions 1, 3, and 5;
2.31 	(9) provide for screening of each child under section 245.4885 upon admission 
2.32 	to a residential treatment facility, acute care hospital inpatient treatment, or informal 
2.33 	admission to a regional treatment center;
3.1 	(10) prudently administer grants and purchase-of-service contracts that the county 
3.2 	board determines are necessary to fulfill its responsibilities under sections 245.487 to 
3.3 	245.4887;
3.4 	(11) assure that mental health professionals, mental health practitioners, and case 
3.5 	managers employed by or under contract to the county to provide mental health services 
3.6 	are qualified under section 245.4871;
3.7 	(12) assure that children's mental health services are coordinated with adult mental 
3.8 	health services specified in sections 245.461 to 245.486 so that a continuum of mental 
3.9 	health services is available to serve persons with mental illness, regardless of the person's 
3.10 	age;
3.11 	(13) assure that culturally informed mental health consultants are used as necessary 
3.12 	to assist the county board in assessing and providing appropriate treatment for children of 
3.13 	cultural or racial minority heritage; and
3.14 	(14) consistent with section 245.486, arrange for or provide a children's mental 
3.15 	health screening to a child receiving child protective services or a child in out-of-home 
3.16 	placement, a child for whom parental rights have been terminated, a child found to be 
3.17 	delinquent, and a child found to have committed a juvenile petty offense for the third 
3.18 	or subsequent time, unless a screening or diagnostic assessment has been performed 
3.19 	within the previous 180 days, or the child is currently under the care of a mental health 
3.20 	professional. The court or county agency must notify a parent or guardian whose 
3.21 	parental rights have not been terminated of the potential mental health screening and the 
3.22 	option to prevent the screening by notifying the court or county agency in writing. The 
3.23 	screening shall be conducted with a screening instrument approved by the commissioner 
3.24 	of human services according to criteria that are updated and issued annually to ensure 
3.25 	that approved screening instruments are valid and useful for child welfare and juvenile 
3.26 	justice populations, and shall be conducted by a mental health practitioner as defined in 
3.27 	section 245.4871, subdivision 26, or a probation officer or local social services agency 
3.28 	staff person who is trained in the use of the screening instrument. Training in the use of the 
3.29 	instrument shall include training in the administration of the instrument, the interpretation 
3.30 	of its validity given the child's current circumstances, the state and federal data practices 
3.31 	laws and confidentiality standards, the parental consent requirement, and providing respect 
3.32 	for families and cultural values. If the screen indicates a need for assessment, the child's 
3.33 	family, or if the family lacks mental health insurance, the local social services agency, 
3.34 	in consultation with the child's family, shall have conducted a diagnostic assessment, 
3.35 	including a functional assessment, as defined in section 245.4871. The administration of 
3.36 	the screening shall safeguard the privacy of children receiving the screening and their 
4.1 	families and shall comply with the Minnesota Government Data Practices Act, chapter 
4.2 	13, and the federal Health Insurance Portability and Accountability Act of 1996, Public 
4.3 	Law 104-191. Screening results shall be considered private data and the commissioner 
4.4 	shall not collect individual screening results.
4.5 	(b) When the county board refers clients to providers of children's therapeutic 
4.6 	services and supports under section 256B.0943, the county board must clearly identify 
4.7 	the desired services components not covered under section 256B.0943 and identify the 
4.8 	reimbursement source for those requested services, the method of payment, and the 
4.9 	payment rate to the provider.

4.10 	Sec. 3. Minnesota Statutes 2004, section 245A.04, subdivision 11, is amended to read:
4.11 		Subd. 11.Education program; additional requirement. (a) The education 
4.12 	program offered in a residential or nonresidential program, except for child care, foster 
4.13 	care, or services for adults, must be approved by the commissioner of education before the 
4.14 	commissioner of human services may grant a license to the program.
4.15 	(b) A residential program licensed by the commissioner of human services  under 
4.16 	Minnesota Rules, parts ~~9545.0905 to 9545.1125 or 9545.1400 to 9545.1480,~~ 2960.0010 to 
4.17 	2960.0710,  may serve persons through the age of 19 when:
4.18 	(1) the admission is necessary for a person to complete a secondary school program 
4.19 	or its equivalent, or it is necessary to facilitate a transition period after completing the 
4.20 	secondary school program or its equivalent for up to four months in order for the resident 
4.21 	to obtain other living arrangements;
4.22 	(2) the facility develops policies, procedures, and plans required under section  
4.23 	245A.65; 
4.24 	(3) the facility documents an assessment of the 18- or 19-year-old person's risk 
4.25 	of victimizing children residing in the facility, and develops necessary risk reduction 
4.26 	measures, including sleeping arrangements, to minimize any risk of harm to children; and
4.27 	(4) notwithstanding the license holder's target population age range, whenever 
4.28 	persons age 18 or 19 years old are receiving residential services, the age difference among 
4.29 	residents may not exceed five years.
4.30 	(c) Nothing in this paragraph precludes the license holder from seeking other 
4.31 	variances under subdivision 9.

4.32 	Sec. 4. Minnesota Statutes 2005 Supplement, section 245A.14, subdivision 12, is 
4.33 	amended to read:
5.1 		Subd. 12.First aid training requirements.  (a) ~~Notwithstanding Minnesota Rules,~~ 
5.2 	~~part 9503.0035, subpart 2,~~ When children are present in a family child care home governed 
5.3 	by Minnesota Rules, parts 9502.0315 to 9502.0445, ~~or a child care center governed by~~ 
5.4 	~~Minnesota Rules, parts 9503.0005 to 9503.0170,~~ at least one staff person must be present 
5.5 	in the ~~center or~~ home who has been trained in first aid. The first aid training must have 
5.6 	been provided by an individual approved to provide first aid instruction. First aid training 
5.7 	may be less than eight hours and persons qualified to provide first aid training shall include 
5.8 	individuals approved as first aid instructors.
5.9 	(b) All teachers and assistant teachers in a child care center governed by Minnesota 
5.10 	Rules, parts 9503.0005 to 9503.0170, and at least one staff person during field trips and 
5.11 	when transporting children in care must satisfactorily complete first aid training within 90 
5.12 	days of the start of work, unless the training has been completed within the previous three 
5.13 	years. The first aid training must be repeated at least every three years; documented in the 
5.14 	person's personnel record and indicated on the center's staffing chart; and provided by an 
5.15 	individual approved as a first aid instructor. This training may be less than eight hours.

5.16 	Sec. 5. Minnesota Statutes 2005 Supplement, section 245A.18, subdivision 2, is 
5.17 	amended to read:
5.18 		Subd. 2.Child passenger restraint systems; training requirement. (a) Family and 
5.19 	group family child care, child care centers, child foster care, and other programs licensed 
5.20 	by the Department of Human Services that serve a child or children under nine years of 
5.21 	age must document training that fulfills the requirements in this subdivision. This section 
5.22 	does not apply to emergency relative foster care licenses issued under section 245A.035.
5.23 	(b) Before a license holder, staff person, caregiver, or helper transports a child 
5.24 	or children under age nine in a motor vehicle, the person transporting the child must 
5.25 	satisfactorily complete training on the proper use and installation of child restraint systems 
5.26 	in motor vehicles. Training completed under this section may be used to meet initial 
5.27 	or ongoing training under the following:
5.28 	(1) Minnesota Rules, part 2960.3070, subparts 1 and 2;
5.29 	(2) Minnesota Rules, part 9502.0385, subparts 2 and 3; and
5.30 	(3) Minnesota Rules, part 9503.0035, subparts 1 and 4.
5.31 	(c) Training required under this section must be at least one hour in length, 
5.32 	completed at orientation or initial training, and repeated at least once every five years. At 
5.33 	a minimum, the training must address the proper use of child restraint systems based on 
5.34 	the child's size, weight, and age, and the proper installation of a car seat or booster seat in 
5.35 	the motor vehicle used by the license holder to transport the child or children.
6.1 	(d) Training under paragraph (c) must be provided by individuals who are certified 
6.2 	and approved by the Department of Public Safety, Office of Traffic Safety. License holders 
6.3 	may obtain a list of certified and approved trainers through the Department of Public 
6.4 	Safety Web site or by contacting the agency.
6.5 	(e) Beginning July 1, 2006, the training required under this section must be obtained 
6.6 	prior to licensure. For all providers licensed prior to July 1, 2006, the training required in 
6.7 	this subdivision must be obtained by December 31, 2007.

6.8 	Sec. 6. Minnesota Statutes 2005 Supplement, section 245C.07, is amended to read:
6.9 	245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
6.10 	(a) When a license holder owns multiple facilities ~~that are licensed by the~~
6.11 	~~Department of Human Services~~, only one background study is required for an individual 
6.12 	who provides direct contact services in one or more of the licensed facilities if:
6.13 	(1) the license holder designates one individual with one address and telephone 
6.14 	number as the person to receive sensitive background study information for the multiple 
6.15 	licensed programs that depend on the same background study; and
6.16 	(2) the individual designated to receive the sensitive background study information 
6.17 	is capable of determining, upon request of the department, whether a background study 
6.18 	subject is providing direct contact services in one or more of the license holder's programs 
6.19 	and, if so, at which location or locations.
6.20 	(b) When a background study is being initiated by a licensed facility or a foster care 
6.21 	provider that is also registered under chapter 144D, a study subject affiliated with multiple 
6.22 	licensed facilities may attach to the background study form a cover letter indicating the 
6.23 	additional facilities' names, addresses, and background study identification numbers.
6.24 	When the commissioner receives a notice, the commissioner shall notify each 
6.25 	facility identified by the background study subject of the study results.
6.26 	The background study notice the commissioner sends to the subsequent agencies 
6.27 	shall satisfy those facilities' responsibilities for initiating a background study on that 
6.28 	individual.

6.29 	Sec. 7. Minnesota Statutes 2005 Supplement, section 245C.13, subdivision 2, is 
6.30 	amended to read:
6.31 		Subd. 2.Direct contact pending completion of background study. The subject 
6.32 	of a background study may not perform any activity requiring a background study under 
6.33 	paragraph (b) until the commissioner has issued one of the notices under paragraph (a).
7.1 	(a) Notices from the commissioner required prior to activity under paragraph (b) 
7.2 	include:
7.3 	(1) a notice of the study results under section 245C.17 stating that:
7.4 	(i) the individual is not disqualified; or
7.5 	(ii) more time is needed to complete the study but the individual is not required to be 
7.6 	removed from direct contact or access to people receiving services prior to completion 
7.7 	of the study as provided under section ~~245A.17~~ 245C.17, subdivision 1, ~~paragraph~~
7.8 	paragraphs (b) or (c);
7.9 	(2) a notice that a disqualification has been set aside under section 245C.23; or
7.10 	(3) a notice that a variance has been granted related to the individual under section 
7.11 	245C.30.
7.12 	(b) Activities prohibited prior to receipt of notice under paragraph (a) include:
7.13 	(1) being issued a license;
7.14 	(2) living in the household where the licensed program will be provided;
7.15 	(3) providing direct contact services to persons served by a program unless the 
7.16 	subject is under continuous direct supervision; or
7.17 	(4) having access to persons receiving services if the background study was 
7.18 	completed under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), 
7.19 	clause (2), (5), or (6), unless the subject is under continuous direct supervision.

7.20 	Sec. 8. Minnesota Statutes 2005 Supplement, section 245C.15, subdivision 2, is 
7.21 	amended to read:
7.22 		Subd. 2.15-year disqualification. (a) An individual is disqualified under section 
7.23 	245C.14 if: (1) less than 15 years have passed since the discharge of the sentence imposed, 
7.24 	if any, for the offense; and (2) the individual has committed a felony-level violation 
7.25 	of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 
7.26 	268.182 (false representation; concealment of facts); 393.07, subdivision 10, paragraph 
7.27 	(c) (federal Food Stamp Program fraud); 609.165 (felon ineligible to possess firearm); 
7.28 	609.21 (criminal vehicular homicide and injury); 609.215 (suicide); 609.223 or 609.2231
7.29 	(assault in the third or fourth degree); repeat offenses under 609.224 (assault in the fifth 
7.30 	degree); 609.2325 (criminal abuse of a vulnerable adult); 609.2335 (financial exploitation 
7.31 	of a vulnerable adult); 609.235 (use of drugs to injure or facilitate crime); 609.24 (simple 
7.32 	robbery); 609.255 (false imprisonment); 609.2664 (manslaughter of an unborn child in the 
7.33 	first degree); 609.2665 (manslaughter of an unborn child in the second degree); 609.267
7.34 	(assault of an unborn child in the first degree); 609.2671 (assault of an unborn child in 
7.35 	the second degree); 609.268 (injury or death of an unborn child in the commission of a 
8.1 	crime); 609.27 (coercion); 609.275 (attempt to coerce); ~~repeat offenses under 609.3451~~
8.2 	~~(criminal sexual conduct in the fifth degree);~~609.466 (medical assistance fraud); 609.498, 
8.3 	subdivision 1 or 1b (aggravated first degree or first degree tampering with a witness); 
8.4 	609.52 (theft); 609.521 (possession of shoplifting gear); 609.525 (bringing stolen goods 
8.5 	into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535
8.6 	(issuance of dishonored checks); 609.562 (arson in the second degree); 609.563 (arson 
8.7 	in the third degree); 609.582 (burglary); 609.611 (insurance fraud); 609.625 (aggravated 
8.8 	forgery); 609.63 (forgery); 609.631 (check forgery; offering a forged check); 609.635
8.9 	(obtaining signature by false pretense); 609.66 (dangerous weapons); 609.67 (machine 
8.10 	guns and short-barreled shotguns); 609.687 (adulteration); 609.71 (riot); 609.713
8.11 	(terroristic threats); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card 
8.12 	fraud); repeat offenses under 617.23 (indecent exposure; penalties); repeat offenses under 
8.13 	617.241 (obscene materials and performances; distribution and exhibition prohibited; 
8.14 	penalty); chapter 152 (drugs; controlled substance); or a felony-level conviction involving 
8.15 	alcohol or drug use.
8.16 	(b) An individual is disqualified under section 245C.14 if less than 15 years has 
8.17 	passed since the individual's aiding and abetting, attempt, or conspiracy to commit any 
8.18 	of the offenses listed in paragraph (a), as each of these offenses is defined in Minnesota 
8.19 	Statutes.
8.20 	(c) For foster care and family child care an individual is disqualified under section 
8.21 	245C.14 if less than 15 years has passed since the individual's voluntary termination of 
8.22 	the individual's parental rights under section 260C.301, subdivision 1, paragraph (b), or 
8.23 	260C.301, subdivision 3.
8.24 	(d) An individual is disqualified under section 245C.14 if less than 15 years has 
8.25 	passed since the discharge of the sentence imposed for an offense in any other state or 
8.26 	country, the elements of which are substantially similar to the elements of the offenses 
8.27 	listed in paragraph (a).
8.28 	(e) If the individual studied is convicted of one of the felonies listed in paragraph 
8.29 	(a), but the sentence is a gross misdemeanor or misdemeanor disposition, the individual 
8.30 	is disqualified but the disqualification lookback period for the conviction is the period 
8.31 	applicable to the gross misdemeanor or misdemeanor disposition.
8.32 	(f) When a disqualification is based on a judicial determination other than a 
8.33 	conviction, the disqualification period begins from the date of the court order. When a 
8.34 	disqualification is based on an admission, the disqualification period begins from the date 
8.35 	of an admission in court. When a disqualification is based on a preponderance of evidence 
8.36 	of a disqualifying act, the disqualification date begins from the date of the dismissal, the 
9.1 	date of discharge of the sentence imposed for a conviction for a disqualifying crime of 
9.2 	similar elements, or the date of the incident, whichever occurs last.

9.3 	Sec. 9. Minnesota Statutes 2005 Supplement, section 245C.15, subdivision 3, is 
9.4 	amended to read:
9.5 		Subd. 3.Ten-year disqualification. (a) An individual is disqualified under section 
9.6 	245C.14 if: (1) less than ten years have passed since the discharge of the sentence imposed, 
9.7 	if any, for the offense; and (2) the individual has committed a gross misdemeanor-level 
9.8 	violation of any of the following offenses: sections 256.98 (wrongfully obtaining 
9.9 	assistance); 268.182 (false representation; concealment of facts); 393.07, subdivision 10, 
9.10 	paragraph (c) (federal Food Stamp Program fraud); 609.224 (assault in the fifth degree); 
9.11 	609.224, subdivision 2, paragraph (c) (assault in the fifth degree by a caregiver against a 
9.12 	vulnerable adult); 609.2242 and 609.2243 (domestic assault); 609.23 (mistreatment of 
9.13 	persons confined); 609.231 (mistreatment of residents or patients); 609.2325 (criminal 
9.14 	abuse of a vulnerable adult); 609.233 (criminal neglect of a vulnerable adult); 609.2335
9.15 	(financial exploitation of a vulnerable adult); 609.234 (failure to report maltreatment of a 
9.16 	vulnerable adult); 609.265 (abduction); 609.275 (attempt to coerce); 609.324, subdivision 
9.17 	1a (other prohibited acts; minor engaged in prostitution); 609.33 (disorderly house); 
9.18 	~~609.3451 (criminal sexual conduct in the fifth degree);~~609.377 (malicious punishment of a 
9.19 	child); 609.378 (neglect or endangerment of a child); ~~609.446~~ 609.466 (medical assistance 
9.20 	fraud); 609.52 (theft); 609.525 (bringing stolen goods into Minnesota); 609.527 (identity 
9.21 	theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks); 
9.22 	609.582 (burglary); 609.611 (insurance fraud); 609.631 (check forgery; offering a forged 
9.23 	check); 609.66 (dangerous weapons); 609.71 (riot); 609.72, subdivision 3 (disorderly 
9.24 	conduct against a vulnerable adult); repeat offenses under 609.746 (interference with 
9.25 	privacy); 609.749, subdivision 2 (harassment; stalking); 609.82 (fraud in obtaining 
9.26 	credit); 609.821 (financial transaction card fraud);  repeat offenses under 617.23 (indecent 
9.27 	exposure); 617.241 (obscene materials and performances); 617.243 (indecent literature, 
9.28 	distribution); 617.293 (harmful materials; dissemination and display to minors prohibited); 
9.29 	or violation of an order for protection under section 518B.01, subdivision 14.
9.30 	(b) An individual is disqualified under section 245C.14 if less than ten years has 
9.31 	passed since the individual's aiding and abetting, attempt, or conspiracy to commit any 
9.32 	of the offenses listed in paragraph (a), as each of these offenses is defined in Minnesota 
9.33 	Statutes.
9.34 	(c) An individual is disqualified under section 245C.14 if less than ten years has 
9.35 	passed since the discharge of the sentence imposed for an offense in any other state or 
10.1 	country, the elements of which are substantially similar to the elements of any of the 
10.2 	offenses listed in paragraph (a).
10.3 	(d) If the defendant is convicted of one of the gross misdemeanors listed in 
10.4 	paragraph (a), but the sentence is a misdemeanor disposition, the individual is disqualified 
10.5 	but the disqualification lookback period for the conviction is the period applicable to 
10.6 	misdemeanors.
10.7 	(e) When a disqualification is based on a judicial determination other than a 
10.8 	conviction, the disqualification period begins from the date of the court order. When a 
10.9 	disqualification is based on an admission, the disqualification period begins from the date 
10.10 	of an admission in court. When a disqualification is based on a preponderance of evidence 
10.11 	of a disqualifying act, the disqualification date begins from the date of the dismissal, the 
10.12 	date of discharge of the sentence imposed for a conviction for a disqualifying crime of 
10.13 	similar elements, or the date of the incident, whichever occurs last.

10.14 	Sec. 10. Minnesota Statutes 2005 Supplement, section 245C.22, subdivision 7, is 
10.15 	amended to read:
10.16 		Subd. 7.Classification of certain data. (a) Notwithstanding section 13.46, upon 
10.17 	setting aside a disqualification under this section, the identity of the disqualified individual 
10.18 	who received the set aside and the individual's disqualifying characteristics are public 
10.19 	data if the set aside was:
10.20 	(1) for any disqualifying characteristic under section 245C.15, when the set aside 
10.21 	relates to a child care center or a family child care provider licensed under chapter 245A; or
10.22 	(2) for a disqualifying characteristic under section 245C.15, subdivision 2.
10.23 	(b) Notwithstanding section 13.46, upon granting a variance to a license holder 
10.24 	under section 245C.30, the identity of the disqualified individual who is the subject of 
10.25 	the variance, the individual's disqualifying characteristics under section 245C.15, and the 
10.26 	terms of the variance are public data, when the variance:
10.27 	(1) is issued to a child care center or a family child care provider licensed under 
10.28 	chapter 245A; or
10.29 	(2) relates to an individual with a disqualifying characteristic under section 245C.15, 
10.30 	subdivision 2.
10.31 	(c) The identity of a disqualified individual and the reason for disqualification 
10.32 	remain private data when:
10.33 	(1) a disqualification is not set aside and no variance is granted;
10.34 	(2) the data are not public under paragraph (a) or (b);
11.1 	(3) the disqualification is rescinded because the information relied upon to disqualify 
11.2 	the individual is incorrect; or
11.3 	(4) the disqualification relates to a license to provide relative child foster care. 
11.4 	As used in this clause, "relative" has the meaning given it under section 260C.007, 
11.5 	subdivision 27.
11.6 	(d) Licensed family ~~day~~ child care providers and child care centers must ~~notify~~
11.7 	provide  parents ~~considering enrollment of a child or parents of a child attending the~~ 
11.8 	~~family daycare or child care center if the program employs or has living in the home any~~ 
11.9 	~~individual who is the subject of either a set aside or variance~~ notice as required under 
11.10 	section 245C.301.

11.11 	Sec. 11. Minnesota Statutes 2005 Supplement, section 245C.24, subdivision 3, is 
11.12 	amended to read:
11.13 		Subd. 3.Ten-year bar to set aside disqualification. (a) The commissioner may not 
11.14 	set aside the disqualification of an individual in connection with a license to provide family 
11.15 	child care for children, foster care for children in the provider's home, or foster care or day 
11.16 	care services for adults in the provider's home if: (1) less than ten years has passed since 
11.17 	the discharge of the sentence imposed, if any, for the offense; or (2) when disqualified 
11.18 	based on a preponderance of evidence determination under section ~~245A.14~~ 245C.14, 
11.19 	subdivision 1, paragraph (a), clause (2), or an admission under section ~~245A.14~~ 245C.14, 
11.20 	subdivision 1, paragraph (a), clause (1), and less than ten years has passed since the 
11.21 	individual committed the act or admitted to committing the act, whichever is later; and (3) 
11.22 	the individual has committed a violation of any of the following offenses: sections 609.165
11.23 	(felon ineligible to possess firearm); criminal vehicular homicide under 609.21 (criminal 
11.24 	vehicular homicide and injury); 609.215 (aiding suicide or aiding attempted suicide); 
11.25 	felony violations under 609.223 or 609.2231 (assault in the third or fourth degree); 609.713
11.26 	(terroristic threats); 609.235 (use of drugs to injure or to facilitate crime); 609.24 (simple 
11.27 	robbery); 609.255 (false imprisonment); 609.562 (arson in the second degree); 609.71
11.28 	(riot); 609.498, subdivision 1 or 1b (aggravated first degree or first degree tampering 
11.29 	with a witness); burglary in the first or second degree under 609.582 (burglary); 609.66
11.30 	(dangerous weapon); 609.665 (spring guns); 609.67 (machine guns and short-barreled 
11.31 	shotguns); 609.749, subdivision 2 (gross misdemeanor harassment; stalking); 152.021 or 
11.32 	152.022 (controlled substance crime in the first or second degree); 152.023, subdivision 
11.33 	1, clause (3) or (4) or subdivision 2, clause (4) (controlled substance crime in the third 
11.34 	degree); 152.024, subdivision 1, clause (2), (3), or (4) (controlled substance crime in 
11.35 	the fourth degree); 609.224, subdivision 2, paragraph (c) (fifth-degree assault by a 
12.1 	caregiver against a vulnerable adult); 609.23 (mistreatment of persons confined); 609.231
12.2 	(mistreatment of residents or patients); 609.2325 (criminal abuse of a vulnerable adult); 
12.3 	609.233 (criminal neglect of a vulnerable adult); 609.2335 (financial exploitation of a 
12.4 	vulnerable adult); 609.234 (failure to report); 609.265 (abduction); 609.2664 to 609.2665
12.5 	(manslaughter of an unborn child in the first or second degree); 609.267 to 609.2672
12.6 	(assault of an unborn child in the first, second, or third degree); 609.268 (injury or death 
12.7 	of an unborn child in the commission of a crime); 617.293 (disseminating or displaying 
12.8 	harmful material to minors); a felony-level conviction involving alcohol or drug use, 
12.9 	a gross misdemeanor offense under 609.324, subdivision 1 (other prohibited acts); a 
12.10 	gross misdemeanor offense under 609.378 (neglect or endangerment of a child); a gross 
12.11 	misdemeanor offense under 609.377 (malicious punishment of a child); or 609.72, 
12.12 	subdivision 3 (disorderly conduct against a vulnerable adult).
12.13 	(b) The commissioner may not set aside the disqualification of an individual if 
12.14 	less than ten years have passed since the individual's aiding and abetting, attempt, or 
12.15 	conspiracy to commit any of the offenses listed in paragraph (a) as each of these offenses 
12.16 	is defined in Minnesota Statutes.
12.17 	(c) The commissioner may not set aside the disqualification of an individual if less 
12.18 	than ten years have passed since the discharge of the sentence imposed for an offense in 
12.19 	any other state or country, the elements of which are substantially similar to the elements 
12.20 	of any of the offenses listed in paragraph (a).

12.21 	Sec. 12. Minnesota Statutes 2004, section 254A.03, subdivision 3, is amended to read:
12.22 		Subd. 3.Rules for chemical dependency care. The commissioner of human 
12.23 	services shall establish by rule criteria to be used in determining the appropriate level 
12.24 	of chemical dependency care~~, whether outpatient, inpatient or short-term treatment~~ 
12.25 	~~programs,~~ for each recipient of public assistance seeking treatment for alcohol or other 
12.26 	drug dependency and abuse problems. ~~The criteria shall address, at least, the family~~ 
12.27 	~~relationship, past treatment history, medical or physical problems, arrest record, and~~ 
12.28 	~~employment situation.~~

12.29 	Sec. 13. Minnesota Statutes 2004, section 254A.16, subdivision 2, is amended to read:
12.30 		Subd. 2.Program and service guidelines. (a) The commissioner shall provide 
12.31 	program and service guidelines and technical assistance to the county boards in carrying 
12.32 	out services authorized under ~~sections~~ section254A.08~~,  254A.12,  254A.14, and their~~ 
12.33 	~~responsibilities under chapter 256E~~. 
13.1 	(b) The commissioner shall recommend to the governor means of improving 
13.2 	the efficiency and effectiveness of comprehensive program services in the state and 
13.3 	maximizing the use of nongovernmental funds for providing comprehensive programs.

13.4 	Sec. 14. Minnesota Statutes 2004, section 254B.02, subdivision 1, is amended to read:
13.5 		Subdivision 1.Chemical dependency treatment allocation. The chemical 
13.6 	dependency funds appropriated for allocation shall be placed in a special revenue account. 
13.7 	The commissioner shall annually transfer funds from the chemical dependency fund to pay 
13.8 	for operation of the drug and alcohol abuse normative evaluation system and to pay for all 
13.9 	costs incurred by adding two positions for licensing of chemical dependency treatment 
13.10 	and rehabilitation programs located in hospitals for which funds are not otherwise 
13.11 	appropriated. ~~For each year of the biennium ending June 30, 1999, the commissioner~~ 
13.12 	~~shall allocate funds to the American Indian chemical dependency tribal account for~~ 
13.13 	~~treatment of American Indians by eligible vendors under section  254B.05, equal to~~ 
13.14 	~~the amount allocated in fiscal year 1997.~~ Six percent of the remaining money must be 
13.15 	reserved for treatment of American Indians by eligible vendors under section 254B.09.
13.16 	The commissioner shall annually divide the money available in the chemical dependency 
13.17 	fund that is not held in reserve by counties from a previous allocation, or allocated to the 
13.18 	American Indian chemical dependency tribal account. Six percent of the remaining money 
13.19 	must be reserved for the nonreservation American Indian chemical dependency allocation 
13.20 	for treatment of American Indians by eligible vendors under section  254B.05, subdivision 
13.21 	1. The remainder of the money must be allocated among the counties according to the 
13.22 	following formula, using state demographer data and other data sources determined by 
13.23 	the commissioner: 
13.24 	(a) For purposes of this formula, American Indians and children under age 14 are 
13.25 	subtracted from the population of each county to determine the restricted population.
13.26 	(b) The amount of chemical dependency fund expenditures for entitled persons for 
13.27 	services not covered by prepaid plans governed by section  256B.69 in the previous year is 
13.28 	divided by the amount of chemical dependency fund expenditures for entitled persons for 
13.29 	all services to determine the proportion of exempt service expenditures for each county. 
13.30 	(c) The prepaid plan months of eligibility is multiplied by the proportion of exempt 
13.31 	service expenditures to determine the adjusted prepaid plan months of eligibility for 
13.32 	each county.
13.33 	(d) The adjusted prepaid plan months of eligibility is added to the number of 
13.34 	restricted population fee for service months of eligibility for the Minnesota family 
14.1 	investment program, general assistance, and medical assistance and divided by the county 
14.2 	restricted population to determine county per capita months of covered service eligibility.
14.3 	(e) The number of adjusted prepaid plan months of eligibility for the state is added 
14.4 	to the number of fee for service months of eligibility for the Minnesota family investment 
14.5 	program, general assistance, and medical assistance for the state restricted population and 
14.6 	divided by the state restricted population to determine state per capita months of covered 
14.7 	service eligibility.
14.8 	(f) The county per capita months of covered service eligibility is divided by the 
14.9 	state per capita months of covered service eligibility to determine the county welfare 
14.10 	caseload factor.
14.11 	(g) The median married couple income for the most recent three-year period 
14.12 	available for the state is divided by the median married couple income for the same period 
14.13 	for each county to determine the income factor for each county.
14.14 	(h) The county restricted population is multiplied by the sum of the county welfare 
14.15 	caseload factor and the county income factor to determine the adjusted population.
14.16 	(i) $15,000 shall be allocated to each county.
14.17 	(j) The remaining funds shall be allocated proportional to the county adjusted 
14.18 	population.

14.19 	Sec. 15. Minnesota Statutes 2004, section 254B.02, subdivision 5, is amended to read:
14.20 		Subd. 5.Administrative adjustment. The commissioner may make payments to 
14.21 	local agencies from money allocated under this section to support administrative activities 
14.22 	under sections  254B.03 and  254B.04. The administrative payment must not exceed 
14.23 	five percent of the first $50,000, four percent of the next $50,000, and three percent of 
14.24 	the remaining payments for services from the allocation. ~~Twenty-five percent of the~~ 
14.25 	~~administrative allowance shall be advanced at the beginning of each quarter, based on~~ 
14.26 	~~the payments for services made in the most recent quarter for which data is available.~~ 
14.27 	~~Adjustment of any overestimate or underestimate based on actual expenditures shall be~~ 
14.28 	~~made by the state agency by adjusting the administrative allowance for any succeeding~~ 
14.29 	~~quarter.~~

14.30 	Sec. 16. Minnesota Statutes 2004, section 254B.03, subdivision 1, is amended to read:
14.31 		Subdivision 1.Local agency duties. (a) Every local agency shall provide chemical 
14.32 	dependency services to persons residing within its jurisdiction who meet criteria 
14.33 	established by the commissioner for placement in a chemical dependency residential or 
14.34 	nonresidential treatment service. Chemical dependency money must be administered 
15.1 	by the local agencies according to law and rules adopted by the commissioner under 
15.2 	sections  14.001 to  14.69. 
15.3 	(b) In order to contain costs, the county board shall, with the approval of the 
15.4 	commissioner of human services, select eligible vendors of chemical dependency services 
15.5 	who can provide economical and appropriate treatment. Unless the local agency is a social 
15.6 	services department directly administered by a county or human services board, the local 
15.7 	agency shall not be an eligible vendor under section  254B.05. The commissioner may 
15.8 	approve proposals from county boards to provide services in an economical manner or to 
15.9 	control utilization, with safeguards to ensure that necessary services are provided. If a 
15.10 	county implements a demonstration or experimental medical services funding plan, the 
15.11 	commissioner shall transfer the money as appropriate. If a county selects a vendor located 
15.12 	in another state, the county shall ensure that the vendor is in compliance with the rules 
15.13 	governing licensure of programs located in the state. 
15.14 	~~(c) The calendar year 2002 rate for vendors may not increase more than three~~ 
15.15 	~~percent above the rate approved in effect on January 1, 2001. The calendar year 2003~~ 
15.16 	~~rate for vendors may not increase more than three percent above the rate in effect on~~ 
15.17 	~~January 1, 2002. The calendar years 2004 and 2005 rates may not exceed the rate in~~ 
15.18 	~~effect on January 1, 2003.~~
15.19 	~~(d)~~ (c) A culturally specific vendor that provides assessments under a variance under 
15.20 	Minnesota Rules, part 9530.6610, shall be allowed to provide assessment services to 
15.21 	persons not covered by the variance.

15.22 	Sec. 17. Minnesota Statutes 2004, section 254B.03, subdivision 3, is amended to read:
15.23 		Subd. 3.Local agencies to pay state for county share. ~~Local agencies shall submit~~ 
15.24 	~~invoices to the state on forms supplied by the commissioner and according to procedures~~ 
15.25 	~~established by the commissioner.~~ Local agencies shall pay the state for the county share 
15.26 	of the ~~invoiced~~ services authorized by the local agency. ~~Payments shall be made at the~~ 
15.27 	~~beginning of each month for services provided in the previous month. The commissioner~~ 
15.28 	~~shall bill the county monthly for services, based on the most recent month for which~~ 
15.29 	~~expenditure information is available. Adjustment of any overestimate or underestimate~~ 
15.30 	~~based on actual expenditures shall be made by the state agency by adjusting the estimate~~ 
15.31 	~~for any succeeding month.~~

15.32 	Sec. 18. Minnesota Statutes 2004, section 254B.06, subdivision 3, is amended to read:
15.33 		Subd. 3.Payment; denial. The commissioner shall pay eligible vendors for 
15.34 	placements made by local agencies under section  254B.03, subdivision 1, and placements 
16.1 	by tribal designated agencies according to section  254B.09. The commissioner may 
16.2 	reduce or deny payment of the state share when services are not provided according to the 
16.3 	placement criteria established by the commissioner. The commissioner may pay for all or 
16.4 	a portion of improper county chemical dependency placements and bill the county for the 
16.5 	entire payment made when the placement did not comply with criteria established by the 
16.6 	commissioner. The commissioner may make payments to vendors and charge the county 
16.7 	100 percent of the payments if documentation of a county approved placement is received 
16.8 	more than 30 working days, exclusive of weekends and holidays, after the date services 
16.9 	began~~; or if the county approved invoice is received by the commissioner more than 120~~ 
16.10 	~~days after the last date of service provided. The commissioner shall not pay vendors until~~ 
16.11 	~~private insurance company claims have been settled~~. 

16.12 	Sec. 19. Minnesota Statutes 2004, section 256.0451, subdivision 1, is amended to read:
16.13 		Subdivision 1.Scope. The requirements in this section apply to all fair hearings 
16.14 	and appeals under section  256.045, subdivision 3, paragraph (a), clauses (1), (2), (3), 
16.15 	(5), (6), ~~and~~ (7), and (8). Except as provided in subdivisions 3 and 19, the requirements 
16.16 	under this section apply to fair hearings and appeals under section  256.045, subdivision 3, 
16.17 	paragraph (a), clauses (4), ~~(8),~~(9), and ~~(9)~~ (10). 
16.18 	The term "person" is used in this section to mean an individual who, on behalf 
16.19 	of themselves or their household, is appealing or disputing or challenging an action, 
16.20 	a decision, or a failure to act, by an agency in the human services system. When a 
16.21 	person involved in a proceeding under this section is represented by an attorney or by 
16.22 	an authorized representative, the term "person" also refers to the person's attorney or 
16.23 	authorized representative. Any notice sent to the person involved in the hearing must also 
16.24 	be sent to the person's attorney or authorized representative.
16.25 	The term "agency" includes the county human services agency, the state human 
16.26 	services agency, and, where applicable, any entity involved under a contract, subcontract, 
16.27 	grant, or subgrant with the state agency or with a county agency, that provides or operates 
16.28 	programs or services in which appeals are governed by section  256.045. 

16.29 	Sec. 20. Minnesota Statutes 2004, section 256.0451, subdivision 3, is amended to read:
16.30 		Subd. 3.Agency appeal summary. (a) Except in fair hearings and appeals under 
16.31 	section  256.045, subdivision 3, paragraph (a), clauses (4), ~~(8),~~ (9), and ~~(9)~~ (10), the agency 
16.32 	involved in an appeal must prepare a state agency appeal summary for each fair hearing 
16.33 	appeal. The state agency appeal summary shall be mailed or otherwise delivered to the 
16.34 	person who is involved in the appeal at least three working days before the date of the 
17.1 	hearing. The state agency appeal summary must also be mailed or otherwise delivered 
17.2 	to the department's Appeals Office at least three working days before the date of the 
17.3 	fair hearing appeal. 
17.4 	(b) In addition, the appeals referee shall confirm that the state agency appeal 
17.5 	summary is mailed or otherwise delivered to the person involved in the appeal as required 
17.6 	under paragraph (a). The person involved in the fair hearing should be provided, through 
17.7 	the state agency appeal summary or other reasonable methods, appropriate information 
17.8 	about the procedures for the fair hearing and an adequate opportunity to prepare. These 
17.9 	requirements apply equally to the state agency or an entity under contract when involved 
17.10 	in the appeal.
17.11 	(c) The contents of the state agency appeal summary must be adequate to inform the 
17.12 	person involved in the appeal of the evidence on which the agency relies and the legal 
17.13 	basis for the agency's action or determination.

17.14 	Sec. 21. Minnesota Statutes 2004, section 256.0451, subdivision 11, is amended to 
17.15 	read:
17.16 		Subd. 11.Hearing facilities and equipment. The appeals referee shall conduct 
17.17 	the hearing in the county where the person involved resides, unless an alternate location 
17.18 	is mutually agreed upon before the hearing, or unless the person has agreed to a hearing 
17.19 	by telephone. Hearings under section  256.045, subdivision 3, paragraph (a), clauses (4), 
17.20 	~~(8),~~ (9), and ~~(9)~~ (10), must be conducted in the county where the determination was made, 
17.21 	unless an alternate location is mutually agreed upon before the hearing. The hearing room 
17.22 	shall be of sufficient size and layout to adequately accommodate both the number of 
17.23 	individuals participating in the hearing and any identified special needs of any individual 
17.24 	participating in the hearing. The appeals referee shall ensure that all communication and 
17.25 	recording equipment that is necessary to conduct the hearing and to create an adequate 
17.26 	record is present and functioning properly. If any necessary communication or recording 
17.27 	equipment fails or ceases to operate effectively, the appeals referee shall take any steps 
17.28 	necessary, including stopping or adjourning the hearing, until the necessary equipment is 
17.29 	present and functioning properly. All reasonable efforts shall be undertaken to prevent and 
17.30 	avoid any delay in the hearing process caused by defective communication or recording 
17.31 	equipment. 

17.32 	Sec. 22. Minnesota Statutes 2004, section 256.0451, subdivision 19, is amended to 
17.33 	read:
18.1 		Subd. 19.Developing the record. The appeals referee shall accept all evidence, 
18.2 	except evidence privileged by law, that is commonly accepted by reasonable people in 
18.3 	the conduct of their affairs as having probative value on the issues to be addressed at 
18.4 	the hearing. Except in fair hearings and appeals under section  256.045, subdivision 3, 
18.5 	paragraph (a), clauses (4), ~~(8),~~ (9), and ~~(9)~~ (10), in cases involving medical issues such 
18.6 	as a diagnosis, a physician's report, or a review team's decision, the appeals referee 
18.7 	shall consider whether it is necessary to have a medical assessment other than that of 
18.8 	the individual making the original decision. When necessary, the appeals referee shall 
18.9 	require an additional assessment be obtained at agency expense and made part of the 
18.10 	hearing record. The appeals referee shall ensure for all cases that the record is sufficiently 
18.11 	complete to make a fair and accurate decision. 

18.12 	Sec. 23. Minnesota Statutes 2005 Supplement, section 256.046, subdivision 1, is 
18.13 	amended to read:
18.14 		Subdivision 1.Hearing authority. A local agency must initiate an administrative 
18.15 	fraud disqualification hearing for individuals, including child care providers caring for 
18.16 	children receiving child care assistance, accused of wrongfully obtaining assistance or 
18.17 	intentional program violations, in lieu of a criminal action when it has not been pursued, in 
18.18 	the aid to families with dependent children program formerly codified in sections 256.72
18.19 	to 256.87, MFIP, the diversionary work program, child care assistance programs, general 
18.20 	assistance, family general assistance program formerly codified in section 256D.05, 
18.21 	subdivision 1, clause (15), Minnesota supplemental aid, food stamp programs, general 
18.22 	assistance medical care, MinnesotaCare for adults without children, and upon federal 
18.23 	approval, all categories of medical assistance and remaining categories of MinnesotaCare 
18.24 	except for children through age 18. The Department of Human Services, in lieu of a local 
18.25 	agency, may initiate an administrative fraud disqualification hearing when the state agency 
18.26 	is directly responsible for administration of the health care program for which benefits 
18.27 	were wrongfully obtained. The hearing is subject to the requirements of section 256.045
18.28 	and the requirements in Code of Federal Regulations, title 7, section 273.16, for the food 
18.29 	stamp program~~and title 45, section 235.112, as of September 30, 1995, for~~, the cash grant, 
18.30 	medical care programs, and child care assistance under chapter 119B.

18.31 	Sec. 24. Minnesota Statutes 2005 Supplement, section 256B.0625, subdivision 13c, 
18.32 	is amended to read:
18.33 		Subd. 13c.Formulary committee. The commissioner, after receiving 
18.34 	recommendations from professional medical associations and professional pharmacy 
19.1 	associations, and consumer groups shall designate a Formulary Committee to carry 
19.2 	out duties as described in subdivisions 13 to 13g. The Formulary Committee shall be 
19.3 	comprised of four licensed physicians actively engaged in the practice of medicine in 
19.4 	Minnesota one of whom must be actively engaged in the treatment of persons with mental 
19.5 	illness; at least three licensed pharmacists actively engaged in the practice of pharmacy 
19.6 	in Minnesota; and one consumer representative; the remainder to be made up of health 
19.7 	care professionals who are licensed in their field and have recognized knowledge in the 
19.8 	clinically appropriate prescribing, dispensing, and monitoring of covered outpatient drugs. 
19.9 	Members of the Formulary Committee shall not be employed by the Department of 
19.10 	Human Services, but the committee shall be staffed by an employee of the department 
19.11 	who shall serve as an ex officio, nonvoting member of the ~~board~~ committee. The 
19.12 	department's medical director shall also serve as an ex officio, nonvoting member for the 
19.13 	committee. Committee members shall serve three-year terms and may be reappointed 
19.14 	by the commissioner. The Formulary Committee shall meet at least quarterly. The 
19.15 	commissioner may require more frequent Formulary Committee meetings as needed. An 
19.16 	honorarium of $100 per meeting and reimbursement for mileage shall be paid to each 
19.17 	committee member in attendance.

19.18 	Sec. 25. Minnesota Statutes 2004, section 256B.0625, subdivision 23, is amended to 
19.19 	read:
19.20 		Subd. 23.Day treatment services. Medical assistance covers day treatment 
19.21 	services as specified in sections  245.462, subdivision 8, and  245.4871, subdivision 10, that 
19.22 	are provided under contract with the county board. Notwithstanding Minnesota Rules, 
19.23 	part 9505.0323, subpart 15, the commissioner may set authorization thresholds for day 
19.24 	treatment for adults according to section  256B.0625, subdivision 25. Notwithstanding 
19.25 	Minnesota Rules, part 9505.0323, subpart 15, effective July 1, 2004, medical assistance 
19.26 	covers day treatment services for children as specified under section  256B.0943. 

19.27 	Sec. 26. Minnesota Statutes 2004, section 256B.0913, subdivision 1, is amended to 
19.28 	read:
19.29 		Subdivision 1.Purpose and goals. The purpose of the alternative care program is to 
19.30 	provide funding for home ~~and community-based~~ services for elderly persons, in order to 
19.31 	limit nursing facility placements. The program is designed to support elderly persons in 
19.32 	their desire to remain in the community as independently and as long as possible and to 
19.33 	support informal caregivers in their efforts to provide care for elderly people. Further, the 
19.34 	goals of the program are:
20.1 	(1) to contain medical assistance expenditures by funding care in the community; and
20.2 	(2) to maintain the moratorium on new construction of nursing home beds.

20.3 	Sec. 27. Minnesota Statutes 2005 Supplement, section 256B.0913, subdivision 4, 
20.4 	is amended to read:
20.5 		Subd. 4.Eligibility for funding for services for nonmedical assistance recipients.
 20.6 	(a) Funding for services under the alternative care program is available to persons who 
20.7 	meet the following criteria:
20.8 	(1) the person has been determined by a community assessment under section 
20.9 	256B.0911 to be a person who would require the level of care provided in a nursing 
20.10 	facility, but for the provision of services under the alternative care program;
20.11 	(2) the person is age 65 or older;
20.12 	(3) the person would be eligible for medical assistance within 135 days of admission 
20.13 	to a nursing facility;
20.14 	(4) the person is not ineligible for the medical assistance program due to an asset 
20.15 	transfer penalty;
20.16 	(5) the person needs services that are not funded through other state or federal 
20.17 	funding;
20.18 	(6) the monthly cost of the alternative care services funded by the program for 
20.19 	this person does not exceed 75 percent of the monthly limit described under section 
20.20 	256B.0915, subdivision 3a. This monthly limit does not prohibit the alternative care client 
20.21 	from payment for additional services, but in no case may the cost of additional services 
20.22 	purchased under this section exceed the difference between the client's monthly service 
20.23 	limit defined under section 256B.0915, subdivision 3, and the alternative care program 
20.24 	monthly service limit defined in this paragraph. If medical supplies and equipment or 
20.25 	environmental modifications are or will be purchased for an alternative care services 
20.26 	recipient, the costs may be prorated on a monthly basis for up to 12 consecutive months 
20.27 	beginning with the month of purchase. If the monthly cost of a recipient's other alternative 
20.28 	care services exceeds the monthly limit established in this paragraph, the annual cost of the 
20.29 	alternative care services shall be determined. In this event, the annual cost of alternative 
20.30 	care services shall not exceed 12 times the monthly limit described in this paragraph; and
20.31 	(7) the person is making timely payments of the assessed monthly fee.
20.32 	A person is ineligible if payment of the fee is over 60 days past due, unless the person 
20.33 	agrees to:
20.34 	(i) the appointment of a representative payee;
20.35 	(ii) automatic payment from a financial account;
21.1 	(iii) the establishment of greater family involvement in the financial management of 
21.2 	payments; or
21.3 	(iv) another method acceptable to the county to ensure prompt fee payments.
21.4 	The county shall extend the client's eligibility as necessary while making 
21.5 	arrangements to facilitate payment of past-due amounts and future premium payments. 
21.6 	Following disenrollment due to nonpayment of a monthly fee, eligibility shall not be 
21.7 	reinstated for a period of 30 days.
21.8 	(b) Alternative care funding under this subdivision is not available for a person 
21.9 	who is a medical assistance recipient or who would be eligible for medical assistance 
21.10 	without a spenddown or waiver obligation. A person whose initial application for medical 
21.11 	assistance and the elderly waiver program is being processed may be served under the 
21.12 	alternative care program for a period up to 60 days. If the individual is found to be eligible 
21.13 	for medical assistance, medical assistance must be billed for services payable under the 
21.14 	federally approved elderly waiver plan and delivered from the date the individual was 
21.15 	found eligible for the federally approved elderly waiver plan. Notwithstanding this 
21.16 	provision, alternative care funds may not be used to pay for any service the cost of which: 
21.17 	(i) is payable by medical assistance; (ii) is used by a recipient to meet a waiver obligation; 
21.18 	or (iii) is used to pay a medical assistance income spenddown for a person who is eligible 
21.19 	to participate in the federally approved elderly waiver program under the special income 
21.20 	standard provision.
21.21 	(c) Alternative care funding is not available for a person who resides in a licensed 
21.22 	nursing home, certified boarding care home, hospital, or intermediate care facility, except 
21.23 	for case management services which are provided in support of the discharge planning 
21.24 	process for a nursing home resident or certified boarding care home resident to assist with 
21.25 	a relocation process ~~to a community-based setting~~.
21.26 	(d) Alternative care funding is not available for a person whose income is greater 
21.27 	than the maintenance needs allowance under section 256B.0915, subdivision 1d, but 
21.28 	equal to or less than 120 percent of the federal poverty guideline effective July 1 in the 
21.29 	year for which alternative care eligibility is determined, who would be eligible for the 
21.30 	elderly waiver with a waiver obligation.

21.31 	Sec. 28. Minnesota Statutes 2005 Supplement, section 256B.0943, subdivision 6, 
21.32 	is amended to read:
21.33 		Subd. 6.Provider entity clinical infrastructure requirements. (a) To be 
21.34 	an eligible provider entity under this section, a provider entity must have a clinical 
21.35 	infrastructure that utilizes diagnostic assessment, an individualized treatment plan, 
22.1 	service delivery, and individual treatment plan review that are culturally competent, 
22.2 	child-centered, and family-driven to achieve maximum benefit for the client. The provider 
22.3 	entity must review and update the clinical policies and procedures every three years and 
22.4 	must distribute the policies and procedures to staff initially and upon each subsequent 
22.5 	update.
22.6 	(b) The clinical infrastructure written policies and procedures must include policies 
22.7 	and procedures for:
22.8 	(1) providing or obtaining a client's diagnostic assessment that identifies acute and 
22.9 	chronic clinical disorders, co-occurring medical conditions, sources of psychological and 
22.10 	environmental problems, and a functional assessment. The functional assessment must 
22.11 	clearly summarize the client's individual strengths and needs;
22.12 	(2) developing an individual treatment plan that is:
22.13 	(i) based on the information in the client's diagnostic assessment;
22.14 	(ii) developed no later than the end of the first psychotherapy session after the 
22.15 	completion of the client's diagnostic assessment by the mental health professional who 
22.16 	provides the client's psychotherapy;
22.17 	(iii) developed through a child-centered, family-driven planning process that 
22.18 	identifies service needs and individualized, planned, and culturally appropriate 
22.19 	interventions that contain specific treatment goals and objectives for the client and the 
22.20 	client's family or foster family;
22.21 	(iv) reviewed at least once every 90 days and revised, if necessary; and
22.22 	(v) signed by the client or, if appropriate, by the client's parent or other person 
22.23 	authorized by statute to consent to mental health services for the client;
22.24 	(3) developing an individual behavior plan that documents services to be provided 
22.25 	by the mental health behavioral aide. The individual behavior plan must include:
22.26 	(i) detailed instructions on the service to be provided;
22.27 	(ii) time allocated to each service;
22.28 	(iii) methods of documenting the child's behavior;
22.29 	(iv) methods of monitoring the child's progress in reaching objectives; and
22.30 	(v) goals to increase or decrease targeted behavior as identified in the individual 
22.31 	treatment plan;
22.32 	(4) clinical supervision of the mental health practitioner and mental health 
22.33 	behavioral aide. A mental health professional must document the clinical supervision 
22.34 	the professional provides by cosigning individual treatment plans and making entries in 
22.35 	the client's record on supervisory activities. Clinical supervision does not include the 
22.36 	authority to make or terminate court-ordered placements of the child. A clinical supervisor 
23.1 	must be available for urgent consultation as required by the individual client's needs or 
23.2 	the situation. Clinical supervision may occur individually or in a small group to discuss 
23.3 	treatment and review progress toward goals. The focus of clinical supervision must be the 
23.4 	client's treatment needs and progress and the mental health practitioner's or behavioral 
23.5 	aide's ability to provide services;
23.6 	(4a) CTSS certified provider entities providing day treatment programs must meet 
23.7 	the conditions in items (i) to (iii):
23.8 	(i) the ~~provider~~ supervisor must be present and available on the premises more 
23.9 	than 50 percent of the time in a five-working-day period during which the supervisee is 
23.10 	providing a mental health service;
23.11 	(ii) the diagnosis and the client's individual treatment plan or a change in the 
23.12 	diagnosis or individual treatment plan must be made by or reviewed, approved, and signed 
23.13 	by the ~~provider~~ supervisor; and
23.14 	(iii) every 30 days, the supervisor must review and sign the record of the client's 
23.15 	care for all activities in the preceding 30-day period;
23.16 	(4b) for all other services provided under CTSS, clinical supervision standards 
23.17 	provided in items (i) to (iii) must be used:
23.18 	(i) medical assistance shall reimburse a mental health practitioner who maintains a 
23.19 	consulting relationship with a mental health professional who accepts full professional 
23.20 	responsibility and is present on site for at least one observation during the first 12 hours 
23.21 	in which the mental health practitioner provides the individual, family, or group skills 
23.22 	training to the child or the child's family;
23.23 	(ii) thereafter, the mental health professional is required to be present on site for 
23.24 	observation as clinically appropriate when the mental health practitioner is providing 
23.25 	individual, family, or group skills training to the child or the child's family; and
23.26 	(iii) the observation must be a minimum of one clinical unit. The on-site presence of 
23.27 	the mental health professional must be documented in the child's record and signed by the 
23.28 	mental health professional who accepts full professional responsibility;
23.29 	(5) providing direction to a mental health behavioral aide. For entities that employ 
23.30 	mental health behavioral aides, the clinical supervisor must be employed by the provider 
23.31 	entity or other certified children's therapeutic supports and services provider entity to 
23.32 	ensure necessary and appropriate oversight for the client's treatment and continuity of 
23.33 	care. The mental health professional or mental health practitioner giving direction must 
23.34 	begin with the goals on the individualized treatment plan, and instruct the mental health 
23.35 	behavioral aide on how to construct therapeutic activities and interventions that will lead 
23.36 	to goal attainment. The professional or practitioner giving direction must also instruct 
24.1 	the mental health behavioral aide about the client's diagnosis, functional status, and other 
24.2 	characteristics that are likely to affect service delivery. Direction must also include 
24.3 	determining that the mental health behavioral aide has the skills to interact with the client 
24.4 	and the client's family in ways that convey personal and cultural respect and that the aide 
24.5 	actively solicits information relevant to treatment from the family. The aide must be 
24.6 	able to clearly explain the activities the aide is doing with the client and the activities' 
24.7 	relationship to treatment goals. Direction is more didactic than is supervision and requires 
24.8 	the professional or practitioner providing it to continuously evaluate the mental health 
24.9 	behavioral aide's ability to carry out the activities of the individualized treatment plan 
24.10 	and the individualized behavior plan. When providing direction, the professional or 
24.11 	practitioner must:
24.12 	(i) review progress notes prepared by the mental health behavioral aide for accuracy 
24.13 	and consistency with diagnostic assessment, treatment plan, and behavior goals and the 
24.14 	professional or practitioner must approve and sign the progress notes;
24.15 	(ii) identify changes in treatment strategies, revise the individual behavior plan, 
24.16 	and communicate treatment instructions and methodologies as appropriate to ensure 
24.17 	that treatment is implemented correctly;
24.18 	(iii) demonstrate family-friendly behaviors that support healthy collaboration among 
24.19 	the child, the child's family, and providers as treatment is planned and implemented;
24.20 	(iv) ensure that the mental health behavioral aide is able to effectively communicate 
24.21 	with the child, the child's family, and the provider; and
24.22 	(v) record the results of any evaluation and corrective actions taken to modify the 
24.23 	work of the mental health behavioral aide;
24.24 	(6) providing service delivery that implements the individual treatment plan and 
24.25 	meets the requirements under subdivision 9; and
24.26 	(7) individual treatment plan review. The review must determine the extent to which 
24.27 	the services have met the goals and objectives in the previous treatment plan. The review 
24.28 	must assess the client's progress and ensure that services and treatment goals continue to 
24.29 	be necessary and appropriate to the client and the client's family or foster family. Revision 
24.30 	of the individual treatment plan does not require a new diagnostic assessment unless the 
24.31 	client's mental health status has changed markedly. The updated treatment plan must be 
24.32 	signed by the client, if appropriate, and by the client's parent or other person authorized by 
24.33 	statute to give consent to the mental health services for the child.

24.34 	Sec. 29. Minnesota Statutes 2004, section 256B.0943, subdivision 9, is amended to 
24.35 	read:
25.1 		Subd. 9.Service delivery criteria. (a) In delivering services under this section, a 
25.2 	certified provider entity must ensure that:
25.3 	(1) each individual provider's caseload size permits the provider to deliver services 
25.4 	to both clients with severe, complex needs and clients with less intensive needs. The 
25.5 	provider's caseload size should reasonably enable the provider to play an active role in 
25.6 	service planning, monitoring, and delivering services to meet the client's and client's 
25.7 	family's needs, as specified in each client's individual treatment plan;
25.8 	(2) site-based programs, including day treatment and preschool programs, provide 
25.9 	staffing and facilities to ensure the client's health, safety, and protection of rights, and that 
25.10 	the programs are able to implement each client's individual treatment plan;
25.11 	(3) a day treatment program is provided to a group of clients by a multidisciplinary 
25.12 	team under the clinical supervision of a mental health professional. The day treatment 
25.13 	program must be provided in and by: (i) an outpatient hospital accredited by the Joint 
25.14 	Commission on Accreditation of Health Organizations and licensed under sections  144.50
25.15 	to  144.55; 
25.16 	(ii) a community mental health center under section  245.62; and 
25.17 	(iii) an entity that is under contract with the county board to operate a program that 
25.18 	meets the requirements of sections  245.4712, subdivision 2, and  245.4884, subdivision 2, 
25.19 	and Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment program must 
25.20 	stabilize the client's mental health status while developing and improving the client's 
25.21 	independent living and socialization skills. The goal of the day treatment program must be 
25.22 	to reduce or relieve the effects of mental illness and provide training to enable the client 
25.23 	to live in the community. The program must be available at least one day a week for 
25.24 	a ~~minimum~~ three-hour time block. The three-hour time block must include at least one 
25.25 	hour, but no more than two hours, of individual or group psychotherapy. The remainder 
25.26 	of the three-hour time block may include recreation therapy, socialization therapy, or 
25.27 	independent living skills therapy, but only if the therapies are included in the client's 
25.28 	individual treatment plan. Day treatment programs are not part of inpatient or residential 
25.29 	treatment services; and 
25.30 	(4) a preschool program is a structured treatment program offered to a child who 
25.31 	is at least 33 months old, but who has not yet reached the first day of kindergarten, by a 
25.32 	preschool multidisciplinary team in a day program licensed under Minnesota Rules, parts 
25.33 	9503.0005 to 9503.0175. The program must be available at least one day a week for a 
25.34 	minimum two-hour time block. The structured treatment program may include individual 
25.35 	or group psychotherapy and recreation therapy, socialization therapy, or independent 
25.36 	living skills therapy, if included in the client's individual treatment plan.
26.1 	(b) A provider entity must deliver the service components of children's therapeutic 
26.2 	services and supports in compliance with the following requirements:
26.3 	(1) individual, family, and group psychotherapy must be delivered as specified in 
26.4 	Minnesota Rules, part 9505.0323;
26.5 	(2) individual, family, or group skills training must be provided by a mental health 
26.6 	professional or a mental health practitioner who has a consulting relationship with a 
26.7 	mental health professional who accepts full professional responsibility for the training;
26.8 	(3) crisis assistance must be time-limited and designed to resolve or stabilize crisis 
26.9 	through arrangements for direct intervention and support services to the child and the 
26.10 	child's family. Crisis assistance must utilize resources designed to address abrupt or 
26.11 	substantial changes in the functioning of the child or the child's family as evidenced by 
26.12 	a sudden change in behavior with negative consequences for well being, a loss of usual 
26.13 	coping mechanisms, or the presentation of danger to self or others;
26.14 	(4) medically necessary services that are provided by a mental health behavioral 
26.15 	aide must be designed to improve the functioning of the child and support the family in 
26.16 	activities of daily and community living. A mental health behavioral aide must document 
26.17 	the delivery of services in written progress notes. The mental health behavioral aide 
26.18 	must implement goals in the treatment plan for the child's emotional disturbance that 
26.19 	allow the child to acquire developmentally and therapeutically appropriate daily living 
26.20 	skills, social skills, and leisure and recreational skills through targeted activities. These 
26.21 	activities may include:
26.22 	(i) assisting a child as needed with skills development in dressing, eating, and 
26.23 	toileting;
26.24 	(ii) assisting, monitoring, and guiding the child to complete tasks, including 
26.25 	facilitating the child's participation in medical appointments;
26.26 	(iii) observing the child and intervening to redirect the child's inappropriate behavior;
26.27 	(iv) assisting the child in using age-appropriate self-management skills as related 
26.28 	to the child's emotional disorder or mental illness, including problem solving, decision 
26.29 	making, communication, conflict resolution, anger management, social skills, and 
26.30 	recreational skills;
26.31 	(v) implementing deescalation techniques as recommended by the mental health 
26.32 	professional;
26.33 	(vi) implementing any other mental health service that the mental health professional 
26.34 	has approved as being within the scope of the behavioral aide's duties; or
27.1 	(vii) assisting the parents to develop and use parenting skills that help the child 
27.2 	achieve the goals outlined in the child's individual treatment plan or individual behavioral 
27.3 	plan. Parenting skills must be directed exclusively to the child's treatment; and
27.4 	(5) direction of a mental health behavioral aide must include the following:
27.5 	(i) a total of one hour of on-site observation by a mental health professional during 
27.6 	the first 12 hours of service provided to a child;
27.7 	(ii) ongoing on-site observation by a mental health professional or mental health 
27.8 	practitioner for at least a total of one hour during every 40 hours of service provided 
27.9 	to a child; and
27.10 	(iii) immediate accessibility of the mental health professional or mental health 
27.11 	practitioner to the mental health behavioral aide during service provision.

27.12 	Sec. 30. Minnesota Statutes 2004, section 256B.0943, subdivision 11, is amended to 
27.13 	read:
27.14 		Subd. 11.Documentation and billing. (a) A provider entity must document the 
27.15 	services it provides under this section. The provider entity must ensure that the entity's 
27.16 	documentation standards meet the requirements of federal and state laws. Services billed 
27.17 	under this section that are not documented according to this subdivision shall be subject to 
27.18 	monetary recovery by the commissioner. The provider entity may not bill for anything 
27.19 	other than direct service time.
27.20 	(b) An individual mental health provider must promptly document the following 
27.21 	in a client's record after providing services to the client:
27.22 	(1) each occurrence of the client's mental health service, including the date, type, 
27.23 	length, and scope of the service;
27.24 	(2) the name of the person who gave the service;
27.25 	(3) contact made with other persons interested in the client, including representatives 
27.26 	of the courts, corrections systems, or schools. The provider must document the name 
27.27 	and date of each contact;
27.28 	(4) any contact made with the client's other mental health providers, case manager, 
27.29 	family members, primary caregiver, legal representative, or the reason the provider did 
27.30 	not contact the client's family members, primary caregiver, or legal representative, if 
27.31 	applicable; and
27.32 	(5) required clinical supervision, as appropriate.

27.33 	Sec. 31. Minnesota Statutes 2005 Supplement, section 256B.0943, subdivision 12, 
27.34 	is amended to read:
28.1 		Subd. 12.Excluded services. The following services are not eligible for medical 
28.2 	assistance payment as children's therapeutic services and supports:
28.3 	(1) service components of children's therapeutic services and supports 
28.4 	simultaneously provided by more than one provider entity unless prior authorization is 
28.5 	obtained;
28.6 	(2) children's therapeutic services and supports provided in violation of medical 
28.7 	assistance policy in Minnesota Rules, part 9505.0220;
28.8 	(3) mental health behavioral aide services provided by a personal care assistant who 
28.9 	is not qualified as a mental health behavioral aide and employed by a certified children's 
28.10 	therapeutic services and supports provider entity;
28.11 	(4) service components of CTSS that are the responsibility of a residential or 
28.12 	program license holder, including foster care providers under the terms of a service 
28.13 	agreement or administrative rules governing licensure; and
28.14 	(5) adjunctive activities that may be offered by a provider entity but are not 
28.15 	otherwise covered by medical assistance, including:
28.16 	(i) a service that is primarily recreation oriented or that is provided in a setting that 
28.17 	is not medically supervised. This includes sports activities, exercise groups, activities 
28.18 	such as craft hours, leisure time, social hours, meal or snack time, trips to community 
28.19 	activities, and tours;
28.20 	(ii) a social or educational service that does not have or cannot reasonably be 
28.21 	expected to have a therapeutic outcome related to the client's emotional disturbance;
28.22 	(iii) consultation with other providers or service agency staff about the care or 
28.23 	progress of a client;
28.24 	(iv) prevention or education programs provided to the community; and
28.25 	(v) treatment for clients with primary diagnoses of alcohol or other drug abuse~~.~~;
28.26 	(6) activities that are not direct service time.

28.27 	Sec. 32. Minnesota Statutes 2004, section 256B.431, subdivision 1, is amended to read:
28.28 		Subdivision 1.In general. The commissioner shall determine prospective 
28.29 	payment rates for resident care costs. For rates established on or after July 1, 1985, the 
28.30 	commissioner shall develop procedures for determining operating cost payment rates that 
28.31 	take into account the mix of resident needs, geographic location, and other factors as 
28.32 	determined by the commissioner. The commissioner shall consider whether the fact that a 
28.33 	facility is attached to a hospital or has an average length of stay of 180 days or less should 
28.34 	be taken into account in determining rates. The commissioner shall consider the use of the 
28.35 	standard metropolitan statistical areas when developing groups by geographic location. 
29.1 	The commissioner shall provide notice to each nursing facility on or before ~~May 1~~ August 
29.2 	15 of the rates effective for the following rate year except that if legislation is pending on
29.3 	~~May 1~~ August 15 that may affect rates for nursing facilities, the commissioner shall set the 
29.4 	rates after the legislation is enacted and provide notice to each facility as soon as possible.
29.5 	Compensation for top management personnel shall continue to be categorized as a 
29.6 	general and administrative cost and is subject to any limits imposed on that cost category.

29.7 	Sec. 33. Minnesota Statutes 2004, section 256B.431, subdivision 3f, is amended to 
29.8 	read:
29.9 		Subd. 3f.Property costs after July 1, 1988. (a) Investment per bed limit. For the 
29.10 	rate year beginning July 1, 1988, the replacement-cost-new per bed limit must be $32,571 
29.11 	per licensed bed in multiple bedrooms and $48,857 per licensed bed in a single bedroom. 
29.12 	For the rate year beginning July 1, 1989, the replacement-cost-new per bed limit for a 
29.13 	single bedroom must be $49,907 adjusted according to Minnesota Rules, part 9549.0060, 
29.14 	subpart 4, item A, subitem (1). Beginning January 1, 1990, the replacement-cost-new per 
29.15 	bed limits must be adjusted annually as specified in Minnesota Rules, part 9549.0060, 
29.16 	subpart 4, item A, subitem (1). Beginning January 1, 1991, the replacement-cost-new per 
29.17 	bed limits will be adjusted annually as specified in Minnesota Rules, part 9549.0060, 
29.18 	subpart 4, item A, subitem (1), except that the index utilized will be the Bureau of ~~the~~ 
29.19 	~~Census: Composite fixed-weighted price index as published in the C30 Report, Value~~ 
29.20 	~~of New Construction Put in Place~~ Economic Analysis: Price Indexes for Private Fixed 
29.21 	Investments in Structures; Special Care. 
29.22 	(b)  Rental factor. For the rate year beginning July 1, 1988, the commissioner shall 
29.23 	increase the rental factor as established in Minnesota Rules, part 9549.0060, subpart 8, 
29.24 	item A, by 6.2 percent rounded to the nearest 100th percent for the purpose of reimbursing 
29.25 	nursing facilities for soft costs and entrepreneurial profits not included in the cost valuation 
29.26 	services used by the state's contracted appraisers. For rate years beginning on or after July 
29.27 	1, 1989, the rental factor is the amount determined under this paragraph for the rate year 
29.28 	beginning July 1, 1988. 
29.29 	(c)  Occupancy factor. For rate years beginning on or after July 1, 1988, in order 
29.30 	to determine property-related payment rates under Minnesota Rules, part 9549.0060, 
29.31 	for all nursing facilities except those whose average length of stay in a skilled level of 
29.32 	care within a nursing facility is 180 days or less, the commissioner shall use 95 percent 
29.33 	of capacity days. For a nursing facility whose average length of stay in a skilled level of 
29.34 	care within a nursing facility is 180 days or less, the commissioner shall use the greater of 
30.1 	resident days or 80 percent of capacity days but in no event shall the divisor exceed 95 
30.2 	percent of capacity days. 
30.3 	(d)  Equipment allowance. For rate years beginning on July 1, 1988, and July 1, 
30.4 	1989, the commissioner shall add ten cents per resident per day to each nursing facility's 
30.5 	property-related payment rate. The ten-cent property-related payment rate increase is not 
30.6 	cumulative from rate year to rate year. For the rate year beginning July 1, 1990, the 
30.7 	commissioner shall increase each nursing facility's equipment allowance as established 
30.8 	in Minnesota Rules, part 9549.0060, subpart 10, by ten cents per resident per day. For 
30.9 	rate years beginning on or after July 1, 1991, the adjusted equipment allowance must be 
30.10 	adjusted annually for inflation as in Minnesota Rules, part 9549.0060, subpart 10, item E. 
30.11 	For the rate period beginning October 1, 1992, the equipment allowance for each nursing 
30.12 	facility shall be increased by 28 percent. For rate years beginning after June 30, 1993, the 
30.13 	allowance must be adjusted annually for inflation. 
30.14 	(e)  Post chapter 199 related-organization debts and interest expense. For rate 
30.15 	years beginning on or after July 1, 1990, Minnesota Rules, part 9549.0060, subpart 5, item 
30.16 	E, shall not apply to outstanding related organization debt incurred prior to May 23, 1983, 
30.17 	provided that the debt was an allowable debt under Minnesota Rules, parts 9510.0010 
30.18 	to 9510.0480, the debt is subject to repayment through annual principal payments, and 
30.19 	the nursing facility demonstrates to the commissioner's satisfaction that the interest rate 
30.20 	on the debt was less than market interest rates for similar arm's-length transactions at 
30.21 	the time the debt was incurred. If the debt was incurred due to a sale between family 
30.22 	members, the nursing facility must also demonstrate that the seller no longer participates 
30.23 	in the management or operation of the nursing facility. Debts meeting the conditions of 
30.24 	this paragraph are subject to all other provisions of Minnesota Rules, parts 9549.0010 
30.25 	to 9549.0080. 
30.26 	(f)  Building capital allowance for nursing facilities with operating leases. For 
30.27 	rate years beginning on or after July 1, 1990, a nursing facility with operating lease costs 
30.28 	incurred for the nursing facility's buildings shall receive its building capital allowance 
30.29 	computed in accordance with Minnesota Rules, part 9549.0060, subpart 8. If an operating 
30.30 	lease provides that the lessee's rent is adjusted to recognize improvements made by the 
30.31 	lessor and related debt, the costs for capital improvements and related debt shall be allowed 
30.32 	in the computation of the lessee's building capital allowance, provided that reimbursement 
30.33 	for these costs under an operating lease shall not exceed the rate otherwise paid. 

30.34 	Sec. 34. Minnesota Statutes 2004, section 256B.431, subdivision 17e, is amended to 
30.35 	read:
31.1 		Subd. 17e.Replacement-costs-new per bed limit effective July 1, 2001.
 31.2 	Notwithstanding Minnesota Rules, part 9549.0060, subpart 11, item C, subitem (2), 
31.3 	for a total replacement, as defined in ~~paragraph (f)~~ subdivision 17d, authorized under 
31.4 	section    144A.071 or    144A.073 after July 1, 1999, or any building project that is a 
31.5 	relocation, renovation, upgrading, or conversion completed on or after July 1, 2001, the 
31.6 	replacement-costs-new per bed limit shall be $74,280 per licensed bed in multiple-bed 
31.7 	rooms, $92,850 per licensed bed in semiprivate rooms with a fixed partition separating 
31.8 	the resident beds, and $111,420 per licensed bed in single rooms. Minnesota Rules, part 
31.9 	9549.0060, subpart 11, item C, subitem (2), does not apply. These amounts must be 
31.10 	adjusted annually as specified in subdivision 3f, paragraph (a), beginning January 1, 2000. 

31.11 	Sec. 35. Minnesota Statutes 2005 Supplement, section 256L.03, subdivision 5, is 
31.12 	amended to read:
31.13 		Subd. 5.Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
31.14 	and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
31.15 	coinsurance requirements for all enrollees:
31.16 	(1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
31.17 	subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
31.18 	$3,000 per family;
31.19 	(2) $3 per prescription for adult enrollees;
31.20 	(3) $25 for eyeglasses for adult enrollees;
31.21 	(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
31.22 	episode of service which is required because of a recipient's symptoms, diagnosis, or 
31.23 	established illness, and which is delivered in an ambulatory setting by a physician or 
31.24 	physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
31.25 	audiologist, optician, or optometrist;
31.26 	(5) $6 for nonemergency visits to a hospital-based emergency room; and
31.27 	(6) 50 percent of the fee-for-service rate for adult dental care services other than 
31.28 	preventive care services for persons eligible under section 256L.04, subdivisions 1 to 7, 
31.29 	with income equal to or less than 175 percent of the federal poverty guidelines.
31.30 	(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
31.31 	children under the age of 21 in households with family income equal to or less than 175 
31.32 	percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
31.33 	parents and relative caretakers of children under the age of 21 in households with family 
31.34 	income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
31.35 	admissions occurring on or after January 1, 2001.
32.1 	(c) Paragraph (a), clauses (1) to ~~(4)~~ (6), do not apply to pregnant women and children 
32.2 	under the age of 21.
32.3 	(d) Adult enrollees with family gross income that exceeds 175 percent of the 
32.4 	federal poverty guidelines and who are not pregnant shall be financially responsible for 
32.5 	the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient 
32.6 	hospital benefit limit.
32.7 	(e) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
32.8 	or changes from one prepaid health plan to another during a calendar year, any charges 
32.9 	submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
32.10 	expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
32.11 	prior to enrollment, or prior to the change in health plans, shall be disregarded.

32.12 	Sec. 36. Minnesota Statutes 2005 Supplement, section 259.67, subdivision 4, is 
32.13 	amended to read:
32.14 		Subd. 4.Eligibility conditions. (a) The placing agency shall use the AFDC 
32.15 	requirements as specified in federal law as of July 16, 1996, when determining the child's 
32.16 	eligibility for adoption assistance under title IV-E of the Social Security Act. If the child 
32.17 	does not qualify, the placing agency shall certify a child as eligible for state funded 
32.18 	adoption assistance only if the following criteria are met:
32.19 	(1) Due to the child's characteristics or circumstances it would be difficult to provide 
32.20 	the child an adoptive home without adoption assistance.
32.21 	(2)(i) A placement agency has made reasonable efforts to place the child for adoption 
32.22 	without adoption assistance, but has been unsuccessful; or
32.23 	(ii) the child's licensed foster parents desire to adopt the child and it is determined 
32.24 	by the placing agency that the adoption is in the best interest of the child.
32.25 	(3)(i) The child has been a ward of the commissioner, a Minnesota-licensed 
32.26 	child-placing agency, or a tribal social service agency of Minnesota recognized by the 
32.27 	Secretary of the Interior~~.~~; or
32.28 	 (ii) the child is adopted according to tribal law without a termination of parental 
32.29 	rights or relinquishment, provided that the tribe has documented the valid reason why the 
32.30 	child cannot or should not be returned to the home of the child's parent.The placing 
32.31 	agency shall not certify a child who remains under the jurisdiction of the sending 
32.32 	agency pursuant to section 260.851, article 5, for state-funded adoption assistance when 
32.33 	Minnesota is the receiving state.
32.34 	(b) For purposes of this subdivision, the characteristics or circumstances that may 
32.35 	be considered in determining whether a child is a child with special needs under United 
33.1 	States Code, title 42, chapter 7, subchapter IV, part E, or meets the requirements of 
33.2 	paragraph (a), clause (1), are the following:
33.3 	(1) The child is a member of a sibling group to be placed as one unit in which at 
33.4 	least one sibling is older than 15 months of age or is described in clause (2) or (3).
33.5 	(2) The child has documented physical, mental, emotional, or behavioral disabilities.
33.6 	(3) The child has a high risk of developing physical, mental, emotional, or behavioral 
33.7 	disabilities.
33.8 	~~(4) The child is adopted according to tribal law without a termination of parental~~ 
33.9 	~~rights or relinquishment, provided that the tribe has documented the valid reason why the~~ 
33.10 	~~child cannot or should not be returned to the home of the child's parent.~~
33.11 	(c) When a child's eligibility for adoption assistance is based upon the high risk of 
33.12 	developing physical, mental, emotional, or behavioral disabilities, payments shall not be 
33.13 	made under the adoption assistance agreement unless and until the potential disability 
33.14 	manifests itself as documented by an appropriate health care professional.

33.15 	Sec. 37. Minnesota Statutes 2005 Supplement, section 260.012, is amended to read:
33.16 	260.012 DUTY TO ENSURE PLACEMENT PREVENTION AND FAMILY 
33.17 	REUNIFICATION; REASONABLE EFFORTS.
33.18 	(a) Once a child alleged to be in need of protection or services is under the court's 
33.19 	jurisdiction, the court shall ensure that reasonable efforts, including culturally appropriate 
33.20 	services, by the social services agency are made to prevent placement or to eliminate the 
33.21 	need for removal and to reunite the child with the child's family at the earliest possible 
33.22 	time, and ~~when a child cannot be reunified with the parent or guardian from whom the~~
33.23 	~~child was removed,~~ the court must ensure that the responsible social services agency 
33.24 	makes reasonable efforts to finalize an alternative permanent plan for the child as provided 
33.25 	in paragraph ~~(e)~~(e). In determining reasonable efforts to be made with respect to a child 
33.26 	and in making those reasonable efforts, the child's best interests, health, and safety must 
33.27 	be of paramount concern. Reasonable efforts to prevent placement and for rehabilitation 
33.28 	and reunification are always required except upon a determination by the court that a 
33.29 	petition has been filed stating a prima facie case that:
33.30 	(1) the parent has subjected a child to egregious harm as defined in section 
33.31 	260C.007, subdivision 14;
33.32 	(2) the parental rights of the parent to another child have been terminated 
33.33 	involuntarily;
33.34 	(3) the child is an abandoned infant under section 260C.301, subdivision 2, 
33.35 	paragraph (a), clause (2);
34.1 	(4) the parent's custodial rights to another child have been involuntarily transferred 
34.2 	to a relative under section 260C.201, subdivision 11, paragraph (e), clause (1), or a similar 
34.3 	law of another jurisdiction; or
34.4 	(5) the provision of services or further services for the purpose of reunification is 
34.5 	futile and therefore unreasonable under the circumstances.
34.6 	(b) When the court makes one of the prima facie determinations under paragraph (a), 
34.7 	either permanency pleadings under section 260C.201, subdivision 11, or a termination 
34.8 	of parental rights petition under sections 260C.141 and 260C.301 must be filed. A 
34.9 	permanency hearing under section 260C.201, subdivision 11, must be held within 30 
34.10 	days of this determination.
34.11 	(c) In the case of an Indian child, in proceedings under sections 260B.178 or 
34.12 	260C.178, 260C.201, and 260C.301 the juvenile court must make findings and conclusions 
34.13 	consistent with the Indian Child Welfare Act of 1978, United States Code, title 25, section 
34.14 	1901 et seq., as to the provision of active efforts. In cases governed by the Indian Child 
34.15 	Welfare Act of 1978, United States Code, title 25, section 1901, the responsible social 
34.16 	services agency must provide active efforts as required under United States Code, title 
34.17 	25, section 1911(d).
34.18 	(d) "Reasonable efforts to prevent placement" means:
34.19 	(1) the agency has made reasonable efforts to prevent the placement of the child in 
34.20 	foster care; or
34.21 	(2) given the particular circumstances of the child and family at the time of the 
34.22 	child's removal, there are no services or efforts available which could allow the child to 
34.23 	safely remain in the home.
34.24 	(e) "Reasonable efforts to finalize a permanent plan for the child" means due 
34.25 	diligence by the responsible social services agency to:
34.26 	(1) reunify the child with the parent or guardian from whom the child was removed;
34.27 	(2) assess a noncustodial parent's ability to provide day-to-day care for the child 
34.28 	and, where appropriate, provide services necessary to enable the noncustodial parent to 
34.29 	safely provide the care, as required by section 260C.212, subdivision 4;
34.30 	(3) conduct a relative search as required under section 260C.212, subdivision 5; and
34.31 	(4) when the child cannot return to the parent or guardian from whom the child was 
34.32 	removed, to plan for and finalize a safe and legally permanent alternative home for the 
34.33 	child, preferably through adoption or transfer of permanent legal and physical custody of 
34.34 	the child.
34.35 	(f) Reasonable efforts are made upon the exercise of due diligence by the responsible 
34.36 	social services agency to use culturally appropriate and available services to meet the 
35.1 	needs of the child and the child's family. Services may include those provided by the 
35.2 	responsible social services agency and other culturally appropriate services available in 
35.3 	the community. At each stage of the proceedings where the court is required to review 
35.4 	the appropriateness of the responsible social services agency's reasonable efforts as 
35.5 	described in paragraphs (a), (d), and (e), the social services agency has the burden of 
35.6 	demonstrating that:
35.7 	(1) it has made reasonable efforts to prevent placement of the child in foster care;
35.8 	(2) it has made reasonable efforts to eliminate the need for removal of the child from 
35.9 	the child's home and to reunify the child with the child's family at the earliest possible 
35.10 	time;
35.11 	(3) it has made reasonable efforts to finalize an alternative permanent home for the 
35.12 	child; or
35.13 	(4) reasonable efforts to prevent placement and to reunify the child with the parent 
35.14 	or guardian are not required. The agency may meet this burden by stating facts in a sworn 
35.15 	petition filed under section 260C.141, by filing an affidavit summarizing the agency's 
35.16 	reasonable efforts or facts the agency believes demonstrate there is no need for reasonable 
35.17 	efforts to reunify the parent and child, or through testimony or a certified report required 
35.18 	under juvenile court rules.
35.19 	(g) Once the court determines that reasonable efforts for reunification are not 
35.20 	required because the court has made one of the prima facie determinations under paragraph 
35.21 	(a), the court may only require reasonable efforts for reunification after a hearing according 
35.22 	to section 260C.163, where the court finds there is not clear and convincing evidence of 
35.23 	the facts upon which the court based its prima facie determination. In this case when there 
35.24 	is clear and convincing evidence that the child is in need of protection or services, the 
35.25 	court may find the child in need of protection or services and order any of the dispositions 
35.26 	available under section 260C.201, subdivision 1. Reunification of a surviving child with a 
35.27 	parent is not required if the parent has been convicted of:
35.28 	(1) a violation of, or an attempt or conspiracy to commit a violation of, sections 
35.29 	609.185 to 609.20; 609.222, subdivision 2; or 609.223 in regard to another child of the 
35.30 	parent;
35.31 	(2) a violation of section 609.222, subdivision 2; or 609.223, in regard to the 
35.32 	surviving child; or
35.33 	(3) a violation of, or an attempt or conspiracy to commit a violation of, United States 
35.34 	Code, title 18, section 1111(a) or 1112(a), in regard to another child of the parent.
35.35 	(h) The juvenile court, in proceedings under sections 260B.178 or 260C.178, 
35.36 	260C.201, and 260C.301 shall make findings and conclusions as to the provision of 
36.1 	reasonable efforts. When determining whether reasonable efforts have been made, the 
36.2 	court shall consider whether services to the child and family were:
36.3 	(1) relevant to the safety and protection of the child;
36.4 	(2) adequate to meet the needs of the child and family;
36.5 	(3) culturally appropriate;
36.6 	(4) available and accessible;
36.7 	(5) consistent and timely; and
36.8 	(6) realistic under the circumstances.
36.9 	In the alternative, the court may determine that provision of services or further 
36.10 	services for the purpose of rehabilitation is futile and therefore unreasonable under the 
36.11 	circumstances or that reasonable efforts are not required as provided in paragraph (a).
36.12 	(i) This section does not prevent out-of-home placement for treatment of a child with 
36.13 	a mental disability when the child's diagnostic assessment or individual treatment plan 
36.14 	indicates that appropriate and necessary treatment cannot be effectively provided outside 
36.15 	of a residential or inpatient treatment program.
36.16 	(j) If continuation of reasonable efforts to prevent placement or reunify the child 
36.17 	with the parent or guardian from whom the child was removed is determined by the court 
36.18 	to be inconsistent with the permanent plan for the child or upon the court making one of 
36.19 	the prima facie determinations under paragraph (a), reasonable efforts must be made to 
36.20 	place the child in a timely manner in a safe and permanent home and to complete whatever 
36.21 	steps are necessary to legally finalize the permanent placement of the child.
36.22 	(k) Reasonable efforts to place a child for adoption or in another permanent 
36.23 	placement may be made concurrently with reasonable efforts to prevent placement or to 
36.24 	reunify the child with the parent or guardian from whom the child was removed. When 
36.25 	the responsible social services agency decides to concurrently make reasonable efforts for 
36.26 	both reunification and permanent placement away from the parent under paragraph (a), the 
36.27 	agency shall disclose its decision and both plans for concurrent reasonable efforts to all 
36.28 	parties and the court. When the agency discloses its decision to proceed on both plans for 
36.29 	reunification and permanent placement away from the parent, the court's review of the 
36.30 	agency's reasonable efforts shall include the agency's efforts under both plans.

36.31 	Sec. 38. Minnesota Statutes 2004, section 260B.157, subdivision 1, is amended to read:
36.32 		Subdivision 1.Investigation. Upon request of the court the local social services 
36.33 	agency or probation officer shall investigate the personal and family history and 
36.34 	environment of any minor coming within the jurisdiction of the court under section  
36.35 	260B.101 and shall report its findings to the court. The court may order any minor coming 
37.1 	within its jurisdiction to be examined by a duly qualified physician, psychiatrist, or 
37.2 	psychologist appointed by the court. 
37.3 	The court shall ~~have~~ order a chemical use assessment conducted when a child is 
37.4 	(1) found to be delinquent for violating a provision of chapter 152, or for committing a 
37.5 	felony-level violation of a provision of chapter 609 if the probation officer determines 
37.6 	that alcohol or drug use was a contributing factor in the commission of the offense, or 
37.7 	(2) alleged to be delinquent for violating a provision of chapter 152, if the child is being 
37.8 	held in custody under a detention order. The assessor's qualifications and the assessment 
37.9 	criteria shall comply with Minnesota Rules, parts 9530.6600 to 9530.6655. If funds under 
37.10 	chapter 254B are to be used to pay for the recommended treatment, the assessment and 
37.11 	placement must comply with all provisions of Minnesota Rules, parts 9530.6600 to 
37.12 	9530.6655 and 9530.7000 to 9530.7030. The commissioner of human services shall 
37.13 	reimburse the court for the cost of the chemical use assessment, up to a maximum of $100.
37.14 	The court shall ~~have~~ order a children's mental health screening conducted when 
37.15 	a child is found to be delinquent. The screening shall be conducted with a screening 
37.16 	instrument approved by the commissioner of human services and shall be conducted by a 
37.17 	mental health practitioner as defined in section  245.4871, subdivision 26, or a probation 
37.18 	officer who is trained in the use of the screening instrument. If the screening indicates 
37.19 	a need for assessment, the local social services agency, in consultation with the child's 
37.20 	family, shall have a diagnostic assessment conducted, including a functional assessment, 
37.21 	as defined in section  245.4871. 
37.22 	With the consent of the commissioner of corrections and agreement of the county to 
37.23 	pay the costs thereof, the court may, by order, place a minor coming within its jurisdiction 
37.24 	in an institution maintained by the commissioner for the detention, diagnosis, custody and 
37.25 	treatment of persons adjudicated to be delinquent, in order that the condition of the minor 
37.26 	be given due consideration in the disposition of the case. Any funds received under the 
37.27 	provisions of this subdivision shall not cancel until the end of the fiscal year immediately 
37.28 	following the fiscal year in which the funds were received. The funds are available for 
37.29 	use by the commissioner of corrections during that period and are hereby appropriated 
37.30 	annually to the commissioner of corrections as reimbursement of the costs of providing 
37.31 	these services to the juvenile courts.

37.32 	Sec. 39. Minnesota Statutes 2005 Supplement, section 626.556, subdivision 2, is 
37.33 	amended to read:
37.34 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
37.35 	given them unless the specific content indicates otherwise:
38.1 	(a) "Family assessment" means a comprehensive assessment of child safety, risk 
38.2 	of subsequent child maltreatment, and family strengths and needs that is applied to a 
38.3 	child maltreatment report that does not allege substantial child endangerment. Family 
38.4 	assessment does not include a determination as to whether child maltreatment occurred 
38.5 	but does determine the need for services to address the safety of family members and the 
38.6 	risk of subsequent maltreatment.
38.7 	(b) "Investigation" means fact gathering related to the current safety of a child 
38.8 	and the risk of subsequent maltreatment that determines whether child maltreatment 
38.9 	occurred and whether child protective services are needed. An investigation must be used 
38.10 	when reports involve substantial child endangerment, and for reports of maltreatment in 
38.11 	facilities required to be licensed under chapter 245A or 245B; under sections 144.50 to 
38.12 	144.58 and 241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and 
38.13 	13, and 124D.10; or in a nonlicensed personal care provider association as defined in 
38.14 	sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.
38.15 	(c) "Substantial child endangerment" means a person responsible for a child's care, 
38.16 	and in the case of sexual abuse also includes a person who has a significant relationship to 
38.17 	the child as defined in section 609.341, or a person in a position of authority as defined in 
38.18 	section 609.341, who by act or omission commits or attempts to commit an act against a 
38.19 	child under their care that constitutes any of the following:
38.20 	(1) egregious harm as defined in section 260C.007, subdivision 14;
38.21 	(2) sexual abuse as defined in paragraph (d);
38.22 	(3) abandonment under section 260C.301, subdivision 2;
38.23 	(4) neglect as defined in paragraph (f), clause (2), that substantially endangers the 
38.24 	child's physical or mental health, including a growth delay, which may be referred to as 
38.25 	failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
38.26 	(5) murder in the first, second, or third degree under section 609.185, 609.19, or 
38.27 	609.195;
38.28 	(6) manslaughter in the first or second degree under section 609.20 or 609.205;
38.29 	(7) assault in the first, second, or third degree under section 609.221, 609.222, or 
38.30 	609.223;
38.31 	(8) solicitation, inducement, and promotion of prostitution under section 609.322;
38.32 	(9) criminal sexual conduct under sections 609.342 to 609.3451;
38.33 	(10) solicitation of children to engage in sexual conduct under section 609.352;
38.34 	(11) malicious punishment or neglect or endangerment of a child under section 
38.35 	609.377 or 609.378;
38.36 	(12) use of a minor in sexual performance under section 617.246; or
39.1 	(13) parental behavior, status, or condition which mandates that the county attorney 
39.2 	file a termination of parental rights petition under section 260C.301, subdivision 3, 
39.3 	paragraph (a).
39.4 	(d) "Sexual abuse" means the subjection of a child by a person responsible for the 
39.5 	child's care, by a person who has a significant relationship to the child, as defined in 
39.6 	section 609.341, or by a person in a position of authority, as defined in section 609.341, 
39.7 	subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual 
39.8 	conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 
39.9 	609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct 
39.10 	in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual 
39.11 	abuse also includes any act which involves a minor which constitutes a violation of 
39.12 	prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes 
39.13 	threatened sexual abuse.
39.14 	(e) "Person responsible for the child's care" means (1) an individual functioning 
39.15 	within the family unit and having responsibilities for the care of the child such as a 
39.16 	parent, guardian, or other person having similar care responsibilities, or (2) an individual 
39.17 	functioning outside the family unit and having responsibilities for the care of the child 
39.18 	such as a teacher, school administrator, other school employees or agents, or other lawful 
39.19 	custodian of a child having either full-time or short-term care responsibilities including, 
39.20 	but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, 
39.21 	and coaching.
39.22 	(f) "Neglect" means:
39.23 	(1) failure by a person responsible for a child's care to supply a child with necessary 
39.24 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
39.25 	mental health when reasonably able to do so;
39.26 	(2) failure to protect a child from conditions or actions that seriously endanger the 
39.27 	child's physical or mental health when reasonably able to do so, including a growth delay, 
39.28 	which may be referred to as a failure to thrive, that has been diagnosed by a physician and 
39.29 	is due to parental neglect;
39.30 	(3) failure to provide for necessary supervision or child care arrangements 
39.31 	appropriate for a child after considering factors as the child's age, mental ability, physical 
39.32 	condition, length of absence, or environment, when the child is unable to care for the 
39.33 	child's own basic needs or safety, or the basic needs or safety of another child in their care;
39.34 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
39.35 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
39.36 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
40.1 	(5) nothing in this section shall be construed to mean that a child is neglected solely 
40.2 	because the child's parent, guardian, or other person responsible for the child's care in 
40.3 	good faith selects and depends upon spiritual means or prayer for treatment or care of 
40.4 	disease or remedial care of the child in lieu of medical care; except that a parent, guardian, 
40.5 	or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report 
40.6 	if a lack of medical care may cause serious danger to the child's health. This section does 
40.7 	not impose upon persons, not otherwise legally responsible for providing a child with 
40.8 	necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
40.9 	(6) prenatal exposure to a controlled substance, as defined in section 253B.02, 
40.10 	subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal 
40.11 	symptoms in the child at birth, results of a toxicology test performed on the mother at 
40.12 	delivery or the child at birth, or medical effects or developmental delays during the child's 
40.13 	first year of life that medically indicate prenatal exposure to a controlled substance;
40.14 	(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
40.15 	(8) chronic and severe use of alcohol or a controlled substance by a parent or 
40.16 	person responsible for the care of the child that adversely affects the child's basic needs 
40.17 	and safety; or
40.18 	(9) emotional harm from a pattern of behavior which contributes to impaired 
40.19 	emotional functioning of the child which may be demonstrated by a substantial and 
40.20 	observable effect in the child's behavior, emotional response, or cognition that is not 
40.21 	within the normal range for the child's age and stage of development, with due regard to 
40.22 	the child's culture.
40.23 	(g) "Physical abuse" means any physical injury, mental injury, or threatened injury, 
40.24 	inflicted by a person responsible for the child's care on a child other than by accidental 
40.25 	means, or any physical or mental injury that cannot reasonably be explained by the child's 
40.26 	history of injuries, or any aversive or deprivation procedures, or regulated interventions, 
40.27 	that have not been authorized under section 121A.67 or 245.825. Abuse does not include 
40.28 	reasonable and moderate physical discipline of a child administered by a parent or legal 
40.29 	guardian which does not result in an injury. Abuse does not include the use of reasonable 
40.30 	force by a teacher, principal, or school employee as allowed by section 121A.582. Actions 
40.31 	which are not reasonable and moderate include, but are not limited to, any of the following 
40.32 	that are done in anger or without regard to the safety of the child:
40.33 	(1) throwing, kicking, burning, biting, or cutting a child;
40.34 	(2) striking a child with a closed fist;
40.35 	(3) shaking a child under age three;
41.1 	(4) striking or other actions which result in any nonaccidental injury to a child 
41.2 	under 18 months of age;
41.3 	(5) unreasonable interference with a child's breathing;
41.4 	(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
41.5 	(7) striking a child under age one on the face or head;
41.6 	(8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled 
41.7 	substances which were not prescribed for the child by a practitioner, in order to control 
41.8 	or punish the child; or other substances that substantially affect the child's behavior, 
41.9 	motor coordination, or judgment or that results in sickness or internal injury, or subjects 
41.10 	the child to medical procedures that would be unnecessary if the child were not exposed 
41.11 	to the substances;
41.12 	(9) unreasonable physical confinement or restraint not permitted under section 
41.13 	609.379, including but not limited to tying, caging, or chaining; or
41.14 	(10) in a school facility or school zone, an act by a person responsible for the child's 
41.15 	care that is a violation under section 121A.58.
41.16 	(h) "Report" means any report received by the local welfare agency, police 
41.17 	department, county sheriff, or agency responsible for assessing or investigating 
41.18 	maltreatment pursuant to this section.
41.19 	(i) "Facility" means a licensed or unlicensed day care facility, residential facility, 
41.20 	agency, hospital, sanitarium, or other facility or institution required to be licensed under 
41.21 	sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or chapter 245B; or a school 
41.22 	as defined in sections 120A.05, subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 
41.23 	personal care provider organization as defined in sections 256B.04, subdivision 16, and 
41.24 	256B.0625, subdivision 19a.
41.25 	(j) "Operator" means an operator or agency as defined in section 245A.02.
41.26 	(k) "Commissioner" means the commissioner of human services.
41.27 	(l) "Practice of social services," for the purposes of subdivision 3, includes but is 
41.28 	not limited to employee assistance counseling and the provision of guardian ad litem and 
41.29 	parenting time expeditor services.
41.30 	(m) "Mental injury" means an injury to the psychological capacity or emotional 
41.31 	stability of a child as evidenced by an observable or substantial impairment in the child's 
41.32 	ability to function within a normal range of performance and behavior with due regard to 
41.33 	the child's culture.
41.34 	(n) "Threatened injury" means a statement, overt act, condition, or status that 
41.35 	represents a substantial risk of physical or sexual abuse or mental injury. Threatened 
42.1 	injury includes, but is not limited to, exposing a child to a person responsible for the 
42.2 	child's care, as defined in paragraph (e), clause (1), who has:
42.3 	(1) subjected a child to, or failed to protect a child from, an overt act or condition 
42.4 	that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a 
42.5 	similar law of another jurisdiction;
42.6 	(2) been found to be palpably unfit under section 260C.301, paragraph (b), clause 
42.7 	(4), or a similar law of another jurisdiction;
42.8 	(3) committed an act that has resulted in an involuntary termination of parental rights 
42.9 	under section 260C.301, or a similar law of another jurisdiction; or
42.10 	(4) committed an act that has resulted in the involuntary transfer of permanent legal 
42.11 	and physical custody of a child to a relative under section 260C.201, subdivision 11, 
42.12 	paragraph (d), clause (1), or a similar law of another jurisdiction.
42.13 	(o) Persons who conduct assessments or investigations under this section shall take 
42.14 	into account accepted child-rearing practices of the culture in which a child participates 
42.15 	and accepted teacher discipline practices, which are not injurious to the child's health, 
42.16 	welfare, and safety.

42.17 	Sec. 40. Laws 2005, chapter 98, article 3, section 25, is amended to read:
42.18 	Sec. 25.  REPEALER.
42.19 	
42.20 	Minnesota Statutes 2004, sections 245.713, ~~subdivisions 2  and~~ subdivision  4; 
42.21 	245.716; and 626.5551, subdivision 4, are repealed.  

42.22 	EFFECTIVE DATE. This section is effective retroactively from August 1, 2005.

42.23 	Sec. 41. REVISOR'S INSTRUCTION.
 42.24 	The revisor of statutes shall correct internal cross-references to sections that are 
42.25 	affected by sections 40 and 42, the repealer sections in this bill. The revisor may make 
42.26 	changes necessary to correct the punctuation, grammar, or structure of the remaining text 
42.27 	and preserve its meaning.

42.28 	Sec. 42.  REPEALER.
 42.29 	(a) Minnesota Statutes 2004, sections 252.21; 252.22; 252.23; 252.24, subdivisions 
42.30 	1, 2, 3, and 4; 252.25; 252.261; 254A.02, subdivisions 7, 9, 12, 14, 15, and 16; 254A.085; 
42.31 	254A.086; 254A.12; 254A.14, subdivisions 1, 2, and 3; 254A.15; 254A.16, subdivision 
42.32 	5; 254A.175; and 254A.18, are repealed.
43.1 	(b) Minnesota Statutes 2005 Supplement, section 252.24, subdivision 5, and 
43.2 	 Minnesota Rules, part 9503.0035, subpart 2, are repealed.